Greiffenberger AG : press release, August 22, 2013

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

Greiffenberger AG - Orders up considerably in first half of 2013, rising 13 % to € 87.8 m

• Turnover follows the positive development with slight time lag
• Turnover in the first six months of € 76.9 m and EBIT of € 3.5 m down on previous year
• Earnings per share rise from € 0.22 to € 0.26
• Forecast for 2013: turnover ranging between € 156 m - € 160 m, EBIT between € 5.7 m - € 7.2 m

Marktredwitz and Augsburg, August 22, 2013 - The Greiffenberger Group posted a pleasing increase in incoming business in the period January through June 2013. Incoming orders totaling € 87.8 m were 13 % up on the same period the previous year. This marks a clear turnaround, as 2012 saw incoming orders overall rather subdued and there was a leveling-off in demand during the course of the year. The turnover also reflected this positive performance, though with a slight time lag and somewhat lower. Turnover for the half-year of € 76.9 m was 6 % down on the previous year, yet this figure is already 1 % up on the second half of 2012. Group turnover also increased from quarter to quarter.

After six months, the operative earnings metrics of EBIT at € 3.5 m (previous year: € 4.9 m) and EBITDA at € 6.8 m (previous year: € 8.2 m) were overall still significantly down on the previous year's results due to turnover factors, with the individual business units performing very differently from each other. From the full year's perspective the earning situation at the operative level should become increasingly stable. By contrast, net earnings after the first six months were significantly up. Net income for the period grew by 19 % to € 1.3 m (previous year: € 1.1 m), and the earnings per share rose correspondingly from € 0.22 to € 0.26. The main reason for this positive earnings performance was the significantly improved financial result - in 2012 the Greiffenberger Group had raised the prospect of a significant improvement by renewing the bulk of its external borrowing in advance, and has now delivered on this.

For full-year 2013 the Greiffenberger Group expects turnover in the range of € 156 m - € 160 m following € 158.0 m in 2012. This will mean turnover increasing between 4 and 9 % in the second half of the year compared to the previous year's period. The Greiffenberger Group expects the EBITDA for the full year to be within the range of € 12.5 m - € 14 m. The EBIT is expected to be between € 5.7 m - € 7.2 m following € 8.8 m in fiscal year 2012, on depreciation of around € 6.8 million. The forecast figures for the EBITDA and EBIT include a planned € 1.7 m one-time expenditure for starting up the plant in the Polish city of Lublin. The Greiffenberger Group is expecting the financial result to be up by € 1.5 m - € 1.7 m over the previous year.

Performance in the Group's subsidiary companies - Drive Technology
The Greiffenberger Group generated revenues of € 48.2 m in Drive Technology (ABM), the largest of the three business units with a turnover share of 63 %. This is down slightly by 2 % compared to the previous year's € 49.2 m. However, after an overall weaker second half-year 2012 the turnaround at ABM is already much in evidence. Thus during the first six months of 2013 turnover grew in some of the market segments compared to the same period the previous year, in particular in the areas of renewable energies, medical technology and textile machinery. Incoming orders in the individual product areas were broadly in excess of turnover, leading to expectations of a further momentum in turnover. From the regional point of view China in particular provided a significant impetus for growth in the first six months of 2013.

Metal Band Saw Blades & Precision Strip Steel
Turnover at the Metal Band Saw Blades & Precision Strip Steel business unit (Eberle) was down 6 % in the first half of 2013 to € 22.4 m (previous year: € 23.8 m). Apart from a slight drop in the precision strip steel segment turnover was down mainly at the metal band saw blades segment. Growth of 3 % in turnover was already being achieved again in the first six months of 2013 compared to the second half of 2012 (€ 21.6 m). North America in particular provided a major impetus to growth in the first half of 2013.

Pipeline Renovation Technology
The Pipeline Renovation Technology (BKP) business unit, the Group's smallest unit with a turnover share of 8 %, witnessed a significant drop in turnover in the first half of 2013, down 28 % to € 6.3 m (previous year: € 8.8 m). In its main product of pipeliners for trenchless pipeline renovation BKP is seeing the public sector placing fewer orders, particularly at the moment in Germany, its core market. The comparatively long winter was also a contributing factor this year, serving to dampen demand. Another factor putting the decline into perspective somewhat was the fact that the bar had been raised very high in the previous year's period by an unexpectedly large order for gas pipe sheathing. In the next six months the Greiffenberger Group is expecting turnover at the Pipeline Renovation Technology unit to be significantly in excess of that of the first half of the year.

The Greiffenberger-Group in the 1st half year 2013

On the Greiffenberger AG:

Registered in Marktredwitz, Greiffenberger AG is a family-led industrial holding with around 980 employees. With an export ratio of 60 % 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 5897300, ISIN 0005897300, ticker symbol GRF).

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