EANS-Adhoc: Mühlbauer registers growth in order income and sales in the third quarter - higher manufacturing costs impact on result - Free Cashflow higher year on year despite higher investment expend

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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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quarterly report

08.11.2012

Roding, 08 November 2012. Overall, the Mühlbauer technology group
successfully managed to counter the difficult market environment
resulting from the European financial and debt crisis and the decline
of growth in newly industrializing and developing countries, and to
step up its order income against the corresponding quarter of the
previous year. Sales also climbed in the quarter under review - as
expected - and the company is still assuming it will achieve a
year-on-year increase in sales for the entire year.

Sales. In the past quarter, the technology group achieved sales of
EUR 65,0 million, thus recording a plus of EUR 11.6 million or 21.9%
against the corresponding quarter of the previous year (PY: EUR 53.4
million). This rise is due to increases in all three business areas.
While Cards & TECURITY® recorded a slight upturn by EUR 1.7 million
or 5.2%, from EUR 31.6 million in Q3 2011 to EUR 33.3 million in the
third quarter of this year, Semiconductor Related Products reported a
significant sales increase: In the past quarter the company posted
sales of EUR 24.8 million, which corresponds to a EUR 8.7 million or
a 54.3% rise against the same quarter of the previous year (PY: EUR
16.1 million). The reason for this tremendous increase was first and
foremost the semiconductor backend business, which almost achieved a
seven-fold increase in sales against Q3 2011, thanks in particular to
the constant high demand for smartphones and tablet PCs. At EUR 6.9
million (PY: EUR 5.7 million), Precision Parts & Systems also
achieved a sales rise and grew EUR 1.2 million or 21.0% year-on-year.

Earnings development. Earnings before interest and taxes (EBIT) in
respect of the quarter under review, dropped by EUR 1.7 million
against Q3 2011, to EUR 3.0 million (PY: EUR 4.7 million). This
development is the result of a further rise of cost-of-production
ratio to the current 78.6%, after 63.3% year-on-year. The significant
rise of costs of goods sold is due in particular to higher
investment-related depreciations and value adjustments on inventory
assets. The latter is the result of the sustained bad news in respect
of the global economy and the intensification of competition from
price-aggressive providers, in particular from Asia. Based on the
sales of EUR 65.0 million achieved in the period under review, the
operating result corresponds to an EBIT margin of 4.5% - after 8.9%
year-on-year. During the reporting period, the share of profit
applicable to each share totals EUR 0.21, after EUR 0.23
year-on-year.

Cashflow. Despite a comparatively higher investment expenditure by
EUR 1,9 million, at EUR 6.7 million, the adjusted free cashflow was
EUR 13.0 million higher year-on-year (PY: minus EUR 6.3 million) as a
result of the EUR 11.1 million lower working capital (PY: minus EUR
2.3 million).

Order income and order backlog. In Q3 2012, at EUR 61.1 million, the
consolidated order income of the Mühlbauer Group was EUR 4.7 million
or 8.3% higher year-on-year (PY: EUR 56.4 million). Cause of this
increase was the company's core business area Cards & TECURITY®,
which also compensated for the decline in Semiconductor Related
Products - caused by an investment stop on the semiconductor market
and a hesitant attitude on the RFID market. Despite the economic
insecurity caused by the European debt crisis, Precision Parts &
Systems proved stable and the year-on-year values were in fact
slightly exceeded. On 30 September 2012, at EUR 212.7 million, the
consolidated backlog of the globally active technology group was EUR
1.1 million or 0.5% under last year's value (EUR 213.8 million).

Outlook. The management is increasingly exercising caution and
further raising its risk provisions, due to the continuous bad news
in respect of the global economy and the intensification of
competition from price-aggressive providers, in particular from Asia.
Against this background, the company is expecting to achieve an
operating margin for the entire year that is in the middle
single-digit percentage range and thus at the bottom end of the
bandwidth forecast so far. Even though experts do not believe that
the global economy is likely to improve significantly in the next
financial year, Mühlbauer still considers itself well positioned
medium to long-term, due to its worldwide unique solution
orientation. The company will therefore reinforce its attempts to
benefit strongly from this.

Further inquiry note:
MÜHLBAUER HOLDING AG & CO. KGaA
Corporate Communications
Benedikt Geißler
Josef-Muehlbauer-Platz 1
93426 Roding, Germany
Phone: +49 9461 952 - 1653
Fax: +49 9461 952 - 8520
Investor-relations@muehlbauer.de
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: free trade: Berlin, München, Hamburg, Düsseldorf, Stuttgart,
regulated dealing/prime standard: Frankfurt
language: English