Greiffenberger : Press release, August 24, 2015

Press Release by the Greiffenberger AG (WKN 589 730 / ISIN DE0005897300)

Greiffenberger Group - significant growth of 4.9 % in second quarter 2015 following challenging first quarter

• First half-year 2015: turnover just short of previous year at € 74.4 m, EBITDA slightly up at € 4.3 m; EBIT on
par with previous year at € 0.7 m
• Two of three business units close first half of the year with appreciable growth in turnover
• Growth in turnover, EBITDA and EBIT expected for full-year 2015

Marktredwitz and Augsburg, August 24, 2015 - In the first half of 2015 the Greiffenberger Group generated revenues of € 74.4 m. The company has therefore successfully made up almost entirely for the first quarter's decline in turnover, with a significant recovery underway and turnover up 4.9 % in the second quarter. Although the company had ended the first quarter just over 8 % down on the previous year, by the end of June it was just 1.7 % down. The company has built greater flexibility into the structure of costs, capacities and quantities, which is reflected in a stable earnings performance. This is because targeted improvements to working capital have additionally resulted in inventories being appreciably reduced. Primarily for this reason the total operating performance in the first half of 2015 was € 4.8 m down on the previous year; however, cost improvement measures allowed for an EBIT of € 0.7 m, which is on par with the previous year, and an EBITDA of € 4.3 m (+7.0 %). Earnings per share improved to € -0.11 (previous year: € -0.16).

In light of these developments the Greiffenberger Group is quantifying its expectations for full-year 2015. For turnover, EBITDA and EBIT the company is expecting growth compared to 2014. Turnover is being forecast at between € 153 m and € 158 m, compared to € 152.2 m in 2014. The EBITDA should be improved to between
€ 10 m and € 11.5 m from the previous € 9.4 m, and the EBIT is planned at between € 3 m and € 4.5 m,
following € 2.4 m in 2014.

"The general direction is correct, as the figures for the second quarter indicate", says Stefan Greiffenberger, CEO of Greiffenberger AG. "We are seeing a return to growth, as indicated in particular by the 8 % increase in incoming orders in the second quarter, and by a good overall performance in order levels with a strong recovery underway, increasing from -5.4 % in the first three months to what is now +0.8 %, added up for the first six months."

The strongest momentum came from exports, particularly from other European countries. The export ratio at 69 % was up three percentage points at the end of the first half-year. However, despite its recent good performance the Greiffenberger Group is also experiencing a challenge from a global economy that is growing somewhat slower than many experts expected and from subdued development in markets such as China.

Performance in the business units - Drive Technology

Drive Technology (ABM) was the only business unit that has not yet exceeded the previous year's figures. Although total turnover of € 44.9 m for the first half-year was 5.2 % down on the previous year there are nevertheless signs of a recovery underway over the course of the year, since at the end of the first quarter the business unit had been close to 10 % down on the previous year. Demand in foreign markets contributed particularly to this pick-up. The demand in target markets such as renewable energies and in product areas related to mechanical engineering in general has not fully gained momentum yet, especially at home. ABM closed the first half of 2015 in negative territory still, with an EBIT of € -0.7 m, in particular due to low capacity utilization. Based on the increasingly positive development in turnover and continued successful implementation of measures to improve costs and flexibility, earnings in the second half of the year are expected to be higher than in the first six months of 2015, meaning that the EBIT in full-year 2015 will move into positive territory at ABM as well.

Metal Band Saw Blades & Precision Strip Steel

The Metal Band Saw Blades & Precision Strip Steel (Eberle) business unit increased turnover in the first half-year to € 23.4 m, up 4.2% on the previous year therefore. Growth resulted from domestic and international demand, with both product areas contributing, with the pace of growth being slightly higher in Precision Strip Steel than in Metal Saw Blades. Earnings also have seen a positive development. The EBIT increased from € 1.2 m to € 1.7 m. Normal seasonal influences and current market circumstances mean the second half-year of 2015, as in the previous year, could make a somewhat more moderate contribution to earnings.

Pipeline Renovation Technology

The Pipeline Renovation Technology (BKP) business unit generated a 4.6 % increase in turnover to € 6.2 m. BKP closed the first half of 2015 with a balanced EBIT. The improvement over the same period of the previous year, in which BKP posted a loss of € 0.5 m, is due mostly to the product mix also being improved by pipe liners with larger diameters, and to a higher turnover basis as well. A significant improvement is expected in the result for the coming six months at BKP compared to the first half-year of 2015, based on the second half-year at BKP in which sales are normally around 50% higher than the first six months.

The Greiffenberger-Group in the 1st half-year 2015

* Based on an average number of shares of 5,000,733 and 5,323,300 outstanding in the first six months of 2014 and 2015, respectively

On the Greiffenberger AG:

Registered in Marktredwitz, Greiffenberger AG is a family-led industrial holding with 1,083 employees. With an export ratio of 69 % it operates successfully worldwide in technologically demanding niche areas of three growth markets:

• Drive Technology: efficient drive technology for companies that develop market-leading solutions, particularly
industrial applications, e-mobility and renewable energies.
• Metal Band Saw Blades & Precision Strip Steel: the finest quality for demanding industrial applications
• Pipeline Renovation Technology: state-of-the-art trenchless technology and pipe surface protection technology

The company's strategic focus is on continuing to develop sector expertise and advancing environmental technology in areas that include pipeline renovation technology, biomass heating and wind power. Organic growth will be generated by increasingly internationalizing sales and procurement, and complemented optionally by acquisitions of companies. The company has been listed since 1986 (WKN 589730, ISIN DE0005897300, ticker symbol GRF).

Contact information: