03/26/2013

HOMAG Group intends to further increase earning power in 2013

Preliminary figures for fiscal 2012 confirmed | Net profit for 2012 increased to EUR 12.7 Million | Forecast 2013: increase in sales revenue, order intake and profit expected

HOMAG Group AG, the world’s leading manufacturer of plant and machinery for the woodworking industry and for cabinet makers, presented its results for the fiscal year 2012 in detail at its press briefing on annual results in Stuttgart. The Company expects increases in sales revenue and earnings in 2013.

In CEO Dr. Markus Flik’s assessment the past fiscal year 2012 was positive: “In 2012, we wanted to strengthen our earning power in particular. We have achieved this objective and exceeded our forecasts. Our measures to increase efficiency, such as the HOMAG Group Action Program and the restructuring of three subsidiaries, are taking effect here.” As Flik further explained, the HOMAG Group intends to expand its market position and further increase its operating performance in 2013.

Fiscal 2012
The HOMAG Group's order intake came to EUR 575.8 million in 2012 (prior year: EUR 574.8 million). The large-scale project for the customer Mekran has to be factored in to the sales revenue of EUR 767.0 million (prior year: EUR 798.7 million). If the sales revenue is adjusted for the sales revenue with Mekran (2011: EUR 49.4 million; 2012: EUR 10.0 million), sales revenue increased slightly by 1 percent in 2012.

In his explanations of the earnings indicators, CFO Hans-Dieter Schumacher emphasized that it was possible to increase all of them in 2012. Operative EBITDA before employee profit participation expenses and before extraordinary expenses stood at EUR 71.0 million (prior year: EUR 70.5 million), such that the operative EBITDA margin increased from 8.8 to 9.3 percent. EBT after employee profit participation expenses and after extraordinary expenses increased substantially to EUR 24.3 million (prior year: EUR 6.4 million). A considerably lower tax expense ratio (2012: 49.9 percent; 2011: 151.7 percent) leads to a significant net profit for the year of EUR 12.7 million (prior year: net loss of EUR 4.7 million). This results in earnings per share of EUR 0.81 (prior year: EUR -0.30).

The HOMAG Group wants to share this positive result with its shareholders. Consequently, the management board and the supervisory board will propose to the annual general meeting on May 28, 2013 the payment of a dividend of EUR 0.25 per share.

Primarily on account of the restructuring measures in the Group, the implementation of which commenced in 2012, the headcount decreased to 5,048 employees as of December 31, 2012 (prior year: 5,141 employees). As announced, capital expenditures (excluding leases) increased further to EUR 37.0 million in 2012 (prior year: EUR 33.8 million). The focal points of investment included the new building for the sales and service branch in Switzerland, the further expansion of the Chinese production plant in Shanghai and the comprehensive automation of the warehouse logistics at the largest subsidiary.

Outlook
For the current fiscal year, the management board expects amongst other things positive impetus from the industry’s leading trade fair LIGNA in Hanover in May 2013. The HOMAG Group wants to exceed the prior year’s order intake in 2013. The aim is also to raise sales revenue further and generate about EUR 800 million. An increase in operative EBITDA before employee profit participation expenses and extraordinary expenses of about EUR 75 million is likewise targeted. The Company anticipates a net profit for the year of about EUR 15 million.

CEO Dr. Flik continues to see the HOMAG Group on a growth course. “The need for investment in modern, powerful machines and production lines will remain uninterrupted in the medium term. Particularly in Asia, the growing trend toward urbanization is fueling demand for products that are made using our machines and production lines. As the global market leader, our aspiration is to benefit from this growth. We will also further optimize our internal processes with the HOMAG Group Action Program among other initiatives, and thereby increase our profitability,” Flik adds. Against this backdrop, the HOMAG Group aims to reach sales revenue of EUR 1 billion and an operative EBITDA margin of about 12 percent by 2017.

Disclaimer
This press release contains certain statements relating to the future. Future-oriented statements are all those statements that do not pertain to historical facts and events or expressions pertaining to the future such as “believes”, “estimates”, “assumes”, “forecasts”, “intend”, “may”, “will”, “should” or similar expressions. Such future-oriented statements are subject to risks and uncertainty since they relate to future events and are based on current assumptions of the Company, which may not occur in the future or may not occur in the anticipated form. The Company points out that such future-oriented statements do not guarantee the future; actual results including the financial position and the profitability of the HOMAG Group as well as the development of economic and regulatory framework conditions may deviate significantly (and prove unfavorable) from what is expressly or implicitly assumed or described in these statements. Even if the actual results of the HOMAG Group including the financial position and profitability as well as the economic and regulatory framework conditions should coincide with the future-oriented statements in this announcement, it cannot be guaranteed that the same will hold true in the future.