EANS-Adhoc: Third quarter 2011: Huge investments in research and development impact earnings - Mühlbauer remains optimistic

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quarterly report

03.11.2011

Roding, 3 November 2011 - The globally active Mühlbauer technology
group continued to fill its order books in Q3 2011. At the same time,
the solution provider pushed ahead its market position and invested
more in research and development than ever before to gear up for the
markets that are becoming noticeably rougher. Even though the
company´s earning power was unable to benefit equally as in the same
period of the previous year, the company remains optimistic and is
still expecting to achieve total sales of approx. EUR 200 million.

At EUR 53.3 million, the sales achieved by the solution provider
during the reporting period was virtually at the level of the
previous year (PY: EUR 54.5 million), while gross profit dropped
11.1%, from EUR 22.0 million to EUR 19.6 million - also as a result
of higher personnel costs due to project-related recruitment. Based
on sales, the gross profit margin therefore declined by 3.7% points,
dropping from 40.4% to 36.7%. The EUR 3.0 million rise in selling
expenses against Q3 2010 and the EUR 1.4 million personnel-related
rise in research and development expenses also impacted operating
income negatively. Based on the sales achieved during the quarter,
this results in an EBIT margin of 8.9% (PY: 20.9%). The statement of
income for the period under review reports net earnings of EUR 3.5
million, EUR 5.7 million less than for the same period of the
previous year (PY: EUR 9.2 million). During the reporting period,
earnings per share totals EUR 0.23, after EUR 0.63 year-on-year.

With a slight decline in sales and cost of sales to EUR 144.9 million
(PY: EUR 147.5 million) in the nine-month comparison, gross profit
was only slightly lower year-on-year, at EUR 57.5 million (PY: EUR
58.3 million). This corresponds to a gross profit margin of 39.8%,
after 39.6% year-on-year. Cost increases pertaining to selling and
administrative expenses as well as in the research and development
area ultimately resulted in the fact that the EBIT of EUR 16.8
million, achieved in the first nine months of 2011, lagged the
previous year´s result of EUR 27.6 million significantly - by EUR
10.8 million. This corresponds to an EBIT margin of 11.6%, after
18.7% year-on-year. If the income for the comparative period is
adjusted for special effects from legal disputes that have since been
finalized, this results in a downturn of EBIT by EUR 8.5 million. The
net earnings achieved in the nine-month period total EUR 12.8
million, after EUR 21.8 million in the first nine months of the
previous year. Earnings per share amount to EUR 0.87 (PY: EUR 1.50).

In the first nine months of the current financial year, cashflow from
operating activities was EUR +26.1 million, which is EUR 10.7 million
below the previous year´s level (PY: EUR +36.8 million). Adjusted for
cashflows from transactions with short-term marketable securities and
taking into consideration the outflows from ongoing investments of
EUR 20.2 million (PY: EUR 18.1 million), this results in a free
cashflow of minus EUR 6.3 million - after EUR 24.6 million
year-on-year.

The consolidated order income of the worldwide system partner for ID
solutions totaled EUR 56.4 million in Q3 2011 and was thus 10.2%
lower year-on-year (EUR 62.8 million). The reason for this decline
was primarily the decrease in demand for semiconductor back-end
products in the second half of 2011, after the strong growth
experienced in the previous year. Based on the first nine months of
2011, order income amounted to EUR 199.1 million, which corresponds
to a decline of 15.6% against the order value of EUR 235.9 million
achieved in the first nine months of 2010.

The business model of the Mühlbauer Group is based on a solid
groundwork that has evolved for a period of thirty years. The high
innovative strength and early positioning of the company in promising
emerging markets involving the intelligent identification of people
or flows of goods have turned Mühlbauer into a globally leading
partner of numerous governments and prestigious industrial companies.
Following the reinforcement of its investments of up to EUR 30
million in the year under review and the distinct intensification of
its research and development activities, the company considers itself
very well positioned for further growth in the 2012 financial year,
despite the clouding of the overall economic outlook.

Contact and additional information: 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.

Further inquiry note:
Investor Relations
+49(0)9461-952-1653
investor-relations@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