EANS-News: FACC AG / Solid performance in the first quarter of 2014/15

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quarterly report/First quarter 2014/15

· First-quarter sales revenue up 6.2 percent year-on-year to EUR
119.7 million (EUR 112.8 million) · Earnings according to planning
below previous year's figures due to ramp-up of new projects in Q1 ·
Successful completion of IPO is a company milestone securing
long-term profitable growth · FACC confirms guidance for 2014/15

Ried - FACC AG has made a good start to the fiscal year 2014/15
showing a solid performance: In the first quarter of the fiscal year
2014/15, the FACC Group generated revenue of EUR 119.7 million. This
means an increase of EUR 7.0 million or 6.2% compared to the
year-on-year amount of EUR 112.8 million.

,,FACC has established a strong position under the tier-1 aerospace
suppliers in recent years. Our solid performance in the first quarter
is an additional proof of this," said Walter Stephan, CEO of FACC AG.
,,We must now continue improving our position and maintain our
successful course as part of the systematic implementation of our
strategy 'Vision 2020'. We thereby focus on three key action areas:
firstly, disciplined cost and investment management, secondly, our
profitability targets and thirdly, improved profitability in all
divisions."

Revenue growth was driven by increased product revenue of EUR 15.3
million or 13.5%, while revenue related to development services
dropped by EUR 8.3 million or 7.4% at the same time. Product revenue
picked up largely with respect to the Airbus A321, Airbus A350 XWB,
Boeing 787 and Boeing 737 programs as well as additional product
deliveries for aircraft interiors. The slowdown in revenue from
development services is largely due to the fact that in the
comparative period of the first quarter of 2013/14 the FACC Group
invoiced a significant amount for development services with respect
to a development project in the Aerostructures segment. In the first
quarter of the fiscal year 2014/15, the FACC Group did not invoice a
similarly significant amount. Over the course of the current fiscal
year, the FACC Group currently expects to invoice for development
services in line with the internal planning.

For at the first quarter of the fiscal year 2014/15, earnings before
interest, taxes and fair value measurement of derivative financial
instruments (EBIT) amounted to EUR -5.3 million (Q1 2013/14: EUR 1.2
million), which means a change of EUR -6.4 million. The change in the
earnings position is also materially attributable to the higher
amount invoiced for development services in Q1 2013/ 14. In the first
quarter of the current fiscal year 2014/15 the FACC Group had not
planned to invoice a similar amount and as a result earnings are down
relative to the previous year. In addition, the FACC Group also
started up a number of new projects in the Interiors segment. This
also impacted the results of the first quarter of the fiscal year
2014/15. Given the extensive learning curve factors, new projects
affect production costs in the early phases. The FACC Group currently
expects to submit further invoices for development services in line
with the internal planning. After the first quarter, however, the
production costs of these programs are developing as planned. The
weakening of the EUR/USD exchange rate during the past 12 months
resulted in a weakening of the hedged EUR/USD exchange rate. Although
expected, this also had a negative impact on the earnings position.

In the first quarter of 2014/15, investments were made in accordance
with the investment budget and amounted to EUR 11.4 million (Q1
2013/14: EUR 11.2 million). Capitalized development costs contained
in investments amounted to EUR 6.0 million (Q1 2013/14: EUR 3.2
million), mostly driven by engineering services associated with the
development of the Airbus A350-1000 exerting the greatest influence.
The expansion of production capacity in the Interiors segment has
mostly been completed and is being put into operation as planned.
Measures aimed at raising efficiency - particularly with respect to a
reduction in production costs, such as learning curve effects, the
promotion of synchronized production, and a reduction in the cost of
quality and material costs - are being implemented.

As at 31 May 2014, staff numbers amounted to 3,055 employees,
compared to 2,458 employees per 31 May 2013. At the Austrian sites,
staff numbers increased from 2,590 to 2,681 employees (+91 employees
or 3.51%) between 1 March 2014 and 31 May 2014, with the majority (77
employees) being added in production. The FACC Group estimates that
staff numbers will remain unchanged in the development and
administrative areas over the coming quarters.

Outlook The commercial aerospace business environment continued to
develop positively in the first quarter of 2014/15. From a current
perspective, and on the basis of the orders currently booked for the
remaining quarters of the fiscal year, the FACC Group assumes that
the positive trend of the first quarter will continue. The Group
expects revenues to increase in the high single-digit percentage
range in fiscal year 2014/15 compared to the fiscal year 2013/14. The
operating profit should be slightly above the same level as in the
previous year. The planning is subject to long term delivery
contracts with customers. Therefore the FACC Group is less focused on
the performance achieved during a particular quarterly reporting
period. The projections are based on current estimates as well as the
latest customer forecasts. However, changes in estimates and customer
forecasts may still occur.

The current trend of airlines striving to operate their business more
efficiently is driving the demand from airlines for new and thus more
efficient aircraft. In light of the economic pressure for the use of
efficient aircraft, FACC assumes from a current perspective that the
global growth targets for commercial airplanes will be achieved and
that the demand for new aircraft will remain strong. This development
is further supported by a rise in passenger numbers of more than 4%
worldwide, largely in the Asia/Pacific region, the Middle East and
Africa. The Farnborough Airshow, that closed its doors on Sunday, has
confirmed this trend: The major Western aircraft manufacturers
received firm orders for 919 aircraft.

Ramp-ups of newly developed programs, rising production rates and a
growing share on existing aircraft types will all help the FACC Group
achieve its growth targets. The order backlog of the FACC Group
continues to show positive developments. It is also worth mentioning
that at the time this quarterly report was being written the FACC
Group successfully concluded new orders in regard to the Airbus A320
family. This means that the FACC Group is further strengthening its
leading role as a winglet supplier and preferred partner in the
commercial aerospace industry. The order backlog of these new
contracts is $ 450 million.

The most significant event in the first quarter was the IPO, which
got off to a flying start on 25 June 2014 at the time when this
quarterly report was being prepared. In doing so, the FACC Group
managed to considerably strengthen its equity basis and expand its
shareholder base. This further supports the Group's "FACC Vision
2020" strategy when it comes to strengthening and expanding its
position as a tier-1 supplier of customers such as Airbus, Boeing,
Bombardier, Embraer and all renowned engine manufacturers. ,,The IPO
is a major milestone in the history of FACC that will contribute
towards achieving our growth ambitions," said Walter Stephan. ,,In
the fiscal year 2014/15 alone, we are planning to make substantial
investments in expanding capacities, raising the degree of automation
and developing new programs. Furthermore, this capital increase will
allow us to make targeted acquisitions and participate actively in
the consolidation of the global commercial aerospace industry."

FACC AG - First Quarter (Q1) Results in FY 2014/15

_____________________________________________________________________
_________ |Amounts in millions of | Q1 2014/15 |
Q1 2013/14 |

|Euro_____________________|_________________________|__________________________|
|Overall_Revenue__________|____________________119.7|_____________________112.8|
|Revenue_per_division_____|_________________________|__________________________|
|Aerostructures___________|_____________________60.7|______________________59.0|
|Engines_&_Nacelles_______|_____________________20.2|______________________19.2|
|Interiors________________|_____________________38.9|______________________34.5|
|Earnings before interest,| | |
|taxes and fair value | | |
|measurement of derivative| -5.3| 1.2|
|financial instruments | | |
|(EBIT)___________________|_________________________|__________________________|
|Net profit after taxes | | |
|adjusted for the change | | |
|in the fair values of | -5.6| -1.2|
|derivative financial | | |

|instruments______________|_________________________|________________
__________| |Total employees (end of | 3,055|
2,458| |period)__________________|_________________________|_________
_________________|

|Research and development | | |
|costs | | |
|Capitalized development | 6.0| 3.2|
|costs | 4.3| 9.5|
|Research and development | 8.6 %| 11.3 %|
|costs expensed | | |

|As_percentage_of_revenue_|_________________________|________________
__________|

About FACC FACC AG is one of the world's leading companies in the
design, development and production of advanced fiber reinforced
composite components and systems for the aviation industry. Their
range of products reaches from structural components for the fuselage
and wings to engine components to complete passenger cabins for
commercial aircraft, business jets and helicopters. FACC is a
supplier to all large aircraft manufacturers such as Airbus, Boeing,
Bombardier, Embraer, Sukhoi, and COMAC as well as for engine
manufacturers and sub-suppliers of manufacturers. In the business
year of 2013/14, the FACC Group achieved a turnover of 547.4 million
Euros. The company currently employs 3,000 employees. Further
information can be found under www.facc.com.

Cautionary Statements Some of the information in this press release
may contain projections or other forward-looking statements regarding
future events or the future financial performance of the Company. You
can identify forward looking statements by terms such as "expect,"
"believe," "anticipate," "estimate," "intend," "will," "could," "may"
or "might," or, in each case, the negative of such terms or other
similar expressions. We wish to caution you that these statements are
only predictions and that actual events or results may differ
materially. We do not intend to update these statements to reflect
events and circumstances occurring after the date hereof or to
reflect the occurrence of unanticipated events. Many factors could
cause the actual results to differ materially from those contained in
our projections or forward-looking statements, including, among
others, general economic conditions, our competitive environment,
risks associated with our industry, as well as many other risks
specifically related to the Company and its operations.

Further inquiry note:
Presse:
Andrea Schachinger
Corporate Communication
Tel: 059/616-1194
E-Mail: a.schachinger@facc.com

Investor Relations:
Andreas Schoberleitner
Vice President Finance & IR
Tel: 059/616-1322
E-Mail: a.schoberleitner@facc.com

end of announcement euro adhoc
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company: FACC AG
Fischerstraße 9
A-4910 Ried im Innkreis
phone: +43/59/616-0
FAX: +43/59/616-81000
mail: office@facc.com
WWW: www.facc.com
sector: Industrial Components
ISIN: AT00000FACC2
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language: English