EANS-Adhoc: Von Roll Holding AG / Positive half-year result in a challenging market environment

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6-month report

22.08.2012

- Decline in sales to CHF 268.1 million, a fall of 2.1% at constant
exchange rates - Lower order intake at CHF 276.7 million, down 10% at
constant exchange rates - Positive EBIT of CHF 7.0 million

Au / Wädenswil, 22 August 2012 - In the first half of 2012, Von Roll
Holding AG's operating business remained heavily influenced by the
difficult general economic conditions. The Group posted sales of CHF
268.1 million (previous year: CHF 281.1 million), a slight decline of
2.1% at constant exchange rates. Order intake amounted to CHF 276.7
million (previous year: CHF 316.0 million). At constant exchange
rates, this represents a fall of 10%. Von Roll generated EBIT of CHF
7.0 million as against CHF 9.7 million in the previous year. "Two
main factors influenced our EBIT in the first half of 2012," said
Matthias Oppermann, CEO of Von Roll Holding AG. "Firstly, the
performance of our transformer business had an adverse effect on our
overall result. Secondly, the continued strength of the Swiss franc
and the economic turmoil in Europe had a major impact on our
activities." Net income stood at CHF 1.8 million in the period under
review as against CHF 4.3 million in the same period of the previous
year. The financial result amounted to CHF -1.8 million compared to
CHF -4.0 million in the same period last year. Cash flow from
operating activities, which came to CHF -12.7 million as against CHF
-17.9 million in the same period of the previous year, was still
impeded by the funds tied up in the transformer business. The equity
ratio fell from 63% in 2011 to 59%.

Uneven performance by the business lines In the wake of the euro
crisis, Von Roll's core business suffered a slight decline in the
first half of 2012. The Von Roll Insulation business line posted
sales of CHF 165.5 million as against CHF 173.7 million in the same
period last year, a fall of 2.3% year-on-year at constant exchange
rates. Order intake came to CHF 160.0 million, down 11% on the
previous year at constant exchange rates. Von Roll Insulation
generated EBIT of CHF 10.7 million compared with CHF 12.1 million in
the previous year. The performance of this traditional segment was
particularly affected by customers' reluctance to invest in
large-scale projects such as power plants. The strategic initiative
to extract mica in the growth region of Brazil and thus extend the
value added chain is on track. Mica is a key raw material used in
insulating tapes. The Von Roll Composites business line posted sales
of CHF 72.1 million as against CHF 79.0 million in the same period of
the previous year, representing a fall of 7.3% at constant exchange
rates. Order intake amounted to CHF 74.3 million, 6.4% down on the
previous year at constant exchange rates. Von Roll Composites
achieved EBIT of CHF 3.5 million compared with the previous year's
CHF 4.2 million. Weak demand from Europe had a noticeable impact on
the composites business in the first half of 2012. The Von Roll
Technologies business line, which incorporates the Von Roll
Transformers, Von Roll Water and Von Roll Solar business segments,
reported sales of CHF 30.5 million in the first six months of the
year, up by 13.2% at constant exchange rates. Sales were boosted by
the Von Roll Water business segment in particular, whose performance
has been highly promising thanks to the successful completion of a
number of sizeable projects. In contrast, order intake at Von Roll
Technologies fell by 13.6% at constant exchange rates to CHF 42.4
million. EBIT amounted to CHF -5.0 million compared with CHF -4.5
million in the same period last year. In the main, the result was
weighed down by the transformer business, which was affected by
delays in supplying technically complex large-scale projects as well
as sluggish demand for large high-voltage power transformers.
However, the new branch of the business focusing on special
transformers for the wind power industry is developing well. The Von
Roll Solar segment, part of Von Roll Technologies, discontinued its
activities at the end of the first half-year.

Successful drive to implement strategic initiatives In the first half
of 2012, Von Roll focused on pressing ahead with its strategic
initiatives, concentrating on optimising its global production
network and on expanding its product portfolio. In this context, Von
Roll is currently involved in a number of outsourcing projects in
North America and Asia, allowing the company to assume responsibility
for additional manufacturing steps on behalf of its customers.
Matthias Oppermann added: "With question marks remaining over how the
economy will develop, we would rather not make any forecasts for the
second half of 2012. Over the past few months of this year, we have
done our homework and are working flat out to implement our 'ONE Von
Roll' strategy to enable us to meet our targets for 2015."

A conference call in German with webcast will be held for journalists
and analysts at 9.00 am CET on 22 August when the 2012 half-year
results will be presented. Dial-in number: +41 (0)565 800 007
Confirmation number: 10778480 Simultaneous webcast of the
presentation at: http://view-w.tv/p/805-1042-11537/de

More detailed information can be found in the Semi-Annual Report
2012. This is available in digital form at
http://www.vonroll.ch/en/financial-reports.html.

About Von Roll Holding AG: Von Roll is an international, medium-sized
industrial company specialising in products and services for
electrical insulation, electrical technology and power transmission
and distribution as well as water treatment. Based in Switzerland,
Von Roll has around 3,000 employees and is represented at over 30
production and distribution sites across the world.

end of ad-hoc-announcement ==========================================
====================================== This press release is based on
information currently available. Unforeseeable risks and influences
may lead to discrepancies with statements portrayed here.
Furthermore, rounding differences may lead to discrepancies in the
reported figures. The release is originally prepared in German and
then translated into English. In the event of any discrepancy, the
German version prevails. For more detailed information on the company
and business development, please see the Semi-Annual Report of Von
Roll Holding AG. This is available in digital form at
www.vonroll.com.

Further inquiry note:
Susanne Nelsen
Corporate Communications
T: +41 44 204 3034, F: +41 44 204 3039, E: press@vonroll.com

end of announcement euro adhoc
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issuer: Von Roll Holding AG
Steinacherstrasse 101
CH-8804 Au / Wädenswil
phone: +41 (0)44 204 30 34
FAX: +41 (0)44 204 30 39
mail: press@vonroll.com
WWW: http://www.vonroll.ch
sector: Misc. Industrials
ISIN: CH0003245351
indexes: SPI, Midcap Market Index
stockmarkets: Main Standard: SIX Swiss Exchange
language: English