Ad-hoc | 19 March 2004 18:13

BOV AG publishes its figures for the 2003 fiscal year

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– BOV AG publishes its figures for the 2003 fiscal year Improved earnings and notification of loss in accordance with Art. 92 Para. 1 of German Stock Corporation Law (AktG) through prudent accounting measures BOV AG has moved a lot closer towards operational profitability. In this way, the operational EBITDA earnings improved by 48% from – EUR 6,594 thousand to – EUR 3,412 thousand in 2003 despite a fall in total output of 16% to EUR 19,548 thousand. This was achieved in the main through personnel measures (reduction in personnel expenses by 23% to EUR 12,707 thousand) and cut-backs of 36% in operating expenses from EUR 8,993 to EUR 5,758 thousand. In spite of all the successes achieved on the costs side, earnings were disappointing against a backdrop of the target balanced operating earnings planned for the 2003 financial year. The main reason why the planned targets failed to materialise are shortfalls in sales revenues. When the half-year figures were presented for 2003, BOV AG had already informed its shareholders of this trend. Observing the principles of prudent accounting practice, a number of adjustments were made in the balance sheet (including writing off goodwill to the value of EUR 5,551 thousand and deferred tax assets amounting to EUR 4,000 thousand) comprising a total volume of EUR 11,628 thousand leading to a consolidated net loss of – EUR 14,126. Provisions and reserves for personnel adjustment measures implemented in the first quarter of 2004 and adjustments to work in progress in Switzerland taken to capital at the end of the year, which reduced earnings, also had their adverse effect on results. Taken together, these represent a loss of more than half the share capital in the financial statements for the individual company BOV AG and in the consolidated statements for the Group, which is why we have made the loss notification in accordance with Art. 92 Para. 1 of the German Stock Corporation Law. The Managing Board is drawing up suitable measures and will convene a general meeting of shareholders in the near future to report on the loss situation. With a downward change in cash and cash equivalents of – EUR 5,554 thousand these resources amounted to EUR 5,551 thousand at the end of the fiscal year 2003, with the result that, after deduction of bank loans to the sum of EUR 2,976, the net cash and cash equivalents amounted to EUR 2,575 thousand. Viewing available liquidity including credit lines granted but not made use of and taking into account sureties provided, the resultant value as at the year-end closing date amounted to EUR 2,145 thousand. In 2002, the average number of employees fell to 277 and to 215 in 2003. Despite the reduction in sales revenues, total output per employee increased by 8%. BOV AG is assuming that losses will be sustained in the first half of 2004 and that profitability will be reached on a monthly basis in the third quarter of 2004. In all, the Managing Board expects a distinctly reduced loss measured by EBITDA of up to – EUR 1,000 thousand for the year 2004 with sustained profitability in the years following. ——————————————————————– BOV Aktiengesellschaft Contact person for Investor Relations: Christoph Junge mailto:christoph.junge@bov.de Contact person for PR, press and media: Martin Möllmann mailto:martin.moellmann@bov.de Alfredstrasse 279 D-45133 Essen Tel.: +49.(0)201.4513-3 Fax: +49.(0)201.4513-520 end of ad-hoc-announcement (c)DGAP 19.03.2004 ——————————————————————————– WKN: 549370; ISIN: DE0005493704; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 191813 Mär 04