EANS-Adhoc: Mühlbauer posts strong order increases in Q2 2011 - Nature of projects and delays result in sales and earnings decline - Attainment of earnings goal ambitious

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ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
adhoc with the aim of a Europe-wide distribution. The issuer is solely
responsible for the content of this announcement.
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6-month report

02.08.2011

Roding, 2 August 2011 - The globally active Mühlbauer technology
group achieved a significant increase of order income in Q2 2011 -
primarily due to the award of further government projects with
overall responsibility during the reporting period. The order income
of EUR 94.5 million achieved in the second quarter of 2011 not only
outperformed the value achieved in the previous year (PY: EUR 59.2
million) by 59.6%; this value also marks the second-highest quarterly
value ever achieved in the solution provider´s 30 year company
history. The orders placed in the first half of 2011 boost the order
book by EUR 142.7 million. In comparison with the order value of EUR
173.1 million, achieved in the first half of 2010, which also
includes an individual high-volume ID order of approx. EUR 64.2
million, this corresponds to a 17.6% decline. In the meantime, the
different character in execution of deliveries and services provided
in respect of government projects in Q2 and delays caused by
customers resulted in the fact that the sales and earnings achieved
in the quarter under review were significantly lower than in the
comparatively high quarter of the previous year.

Thus, at EUR 41.9 million, consolidated sales were 33.9% under the
previous year´s value of EUR 63.4 million. At EUR 2.3 million (PY:
EUR 14.4 million), earnings before interest and taxes (EBIT) were
markedly lower year-on-year, as a result of the lower level of sales,
a 4.4% point higher share of cost of goods sold, as well as a
personnel-related higher research and development expenditure. This
corresponds to an EBIT margin of 5.4%, after 22.7% year-on-year. The
statement of income for the period under review reports net earnings
of EUR 1.9 million, EUR 8.6 million less than in the same period of
the previous year (PY: EUR 10.5 million During the reporting period,
the share of profit applicable to each share totals EUR 0.13, after
EUR 0.73 year-on-year

Based on the first half-year, consolidated sales remained virtually
constant at EUR 91.5 million (PY: EUR 92.9 million), while gross
profit was EUR 1.7 million or 2.5% higher than for the same period of
the previous year. Cost increases pertaining to overheads had the
opposite effect, resulting in the fact that EBIT of EUR 12.1 million,
achieved in 1HY 2011, lagged the previous year´s result of EUR 16.2
million by EUR 4.1 million. This corresponds to an EBIT margin of
13.3%, after 17.5% year-on-year. Net earnings achieved by the
solution provider in 1HY 2011 thus amount to EUR 9.3 million, after
EUR 12.6 for the same period of the previous year. This corresponds
to earnings per share of EUR 0.64, after EUR 0.87 in the previous
year.

In the first six months of the current financial year, cashflow from
operating activities was EUR 15.3 million, which is EUR 3.7 million
below the previous year´s level (PY: EUR 19.0 million). Adjusted for
cashflows from transactions with short-term marketable securities and
taking into consideration the outflows from ongoing investments of
EUR 12.9 million (PY: EUR 10.6 million), this results in a free
cashflow of minus EUR 2.6 million - after plus EUR 14.2 million
year-on-year.

Based on its high order backlog of EUR 207.3 million to the end of
the reporting period, the unchanged positive outlook on the ID market
in its core area Cards & TECURITY® and the upward trends in
Semiconductor Related Products and Precision Parts & Systems, the
technology group is further expecting to raise total sales above and
beyond the level of the previous year. Whether Mühlbauer´s
expectation - which is also linked to the earnings development - will
be fulfilled, is largely dependent on government decisions in respect
of projects currently under discussion, their award to Mühlbauer and
the speed of their implementation. At the current point in time, it
can therefore not be excluded that earnings will be lower than the
comparatively high level achieved during the same period of the
previous year.

Meanwhile, the national and international expansion of the Group is
being pushed ahead in order to support the global market potential
available in the best possible way. The company is expecting to spend
up to EUR 30 million on investments in the current financial year.

Further inquiry note:
Investor Relations, Tel.: +49 (0) 9461-952-1653, Fax: +49 (0) 9461-952-8520,
investor-relations@muehlbauer.de, Mühlbauer Holding AG & Co. KGaA,
Josef-Mühlbauer-Platz 1, 93426 Roding, Germany, www.muehlbauer.de.

end of announcement euro adhoc
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issuer: Mühlbauer Holding AG & Co.KGaA
Josef-Mühlbauer-Platz 1
D-93426 Roding
phone: +49(0)9461-952-1653
FAX: +49(0)9461-952-8520
mail: investor-relations@muehlbauer.de
WWW: http://www.muehlbauer.de
sector: Machine Manufacturing
ISIN: DE0006627201
indexes: CDAX, Prime All Share, Technology All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München
language: English