Ad-hoc | 19 April 2005 08:17

JENOPTIK AG with successful year 2004.

Ad hoc announcement §15 WpHG Financial Statements 2004 JENOPTIK AG with successful year 2004. Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— Jenoptik Group with successful year 2004. Setting a new way ahead for the future of the technology group. Sales increased in 2004 to 2.5bn euros, operating EBIT, at 81m euros, exceeded expectations. Net debt reduced by more than 130m euros. Excellent order situation maintained in 2005. Planned IPO of Facility Engineering for the electronics industry in Singapore. The technology group JENOPTIK AG, Jena, can look back over a record year 2004. Group sales rose by 31.3 percent to 2.52bn euros (prev. year 1.92bn euros). Foreign sales accounted for around 41 percent of this figure. The EBITDA reached 128.8m euros (prev. year 50.9m euros), the Jenoptik Group EBIT totaled 81.1m euros (prev. year 9.0m euros). A number of factors contributed towards the leap in earnings: the increase in sales, strong growth in earnings at Clean Systems, particularly in the electronics area, plus internal growth at Photonics as well as a positive contribution towards earnings by the two new companies Wahl optoparts and Lechmotoren, acquired by Jenoptik at the end of 2003, as well as cost savings. Earnings before tax in 2004, at 37.4m euros, were 80.7m euros higher in absolute terms than in the previous year (prev. year -43.3m euros). There was a corresponding increase in the taxes on group income and earnings which rose to a total of 11.2m euros (prev. year 5.0m euros). During the course of the changeover to the international reporting standard for consolidated accounts, IFRS, for the first time the Jenoptik Group posted deferred and thus non-cash taxes in the sum of 7.2m euros (prev. year -2.4m euros). Earnings after tax accordingly reached 19.0m euros (prev. year -45.9m euros). In 2004 Jenoptik succeeded in even slightly exceeding the record order intake achieved in the previous year – despite the major order of 380m euros awarded by AMD to M+W Zander in 2003. The Group order intake reached 2.37bn euros (prev. year 2.21bn euros). The Group order backlog as at the end of 2004 was 1.87bn euros (prev. year 2.29bn euros). The reason for the reduction in the order backlog is the high level of sales recorded in 2004 plus the deconsolidation of the Technical Facility Systems unit at the year end, with an order backlog in excess of 200m euros. As announced, in the fiscal year just past Jenoptik succeeded in sharply reducing its net debt by 133.6m euros – to 238.8m euros (prev. year 372.5m euros). In addition to a positive cash flow surplus of around 40m euros the cancellation of general leasing agreements for real estate as well as the sale of the SC300 stake taken by M+W Zander in 2000 as part of a project with Infineon, also contributed towards this debt reduction. The shareholders’ equity ratio, at 23.7 percent, was again markedly above the 20 percent mark (prev. year 20.5 percent). The shareholders’ equity of 369.0m euros (prev. year 359.8m euros) was strengthened by the net profit and by the capital increase through contributions in kind. In autumn 2004 Jenoptik paid the second installment of the purchase price for Wahl optoparts in shares. In order to further strengthen the financial base of the Jenoptik Group, Executive Board and Supervisory Board will propose to the Annual General Meeting on June 7, 2005 in Weimar that no dividend be paid for the year 2004. The Jenoptik Group plans to use the funds to further reduce the Group’s debt and expand the Photonics business division. Jenoptik had already announced in 2003 that it would be concentrating on the expansion of the Photonics business division – both by creating strong, long- term partnerships as well as by investing in the latest machinery and systems as well as through acquisitions which complement the technologies and improve the market access. Together with the strong organic growth this strategy has been successful as impressively demonstrated by the Photonics figures for 2004. Sales rose by 27.3 percent to almost 360m euros, with earnings reaching a new record level at 34.5m euros. Following a comprehensive realignment in 2004, the M+W Zander Group is clearly orienting itself towards its core areas of expertise involving all aspects of complex high-tech production facilities, simultaneously realizing potential cost savings. In 2004 the M+W Zander Group posted a 32 percent increase in sales to 2.15bn euros and a record operating result of 46.0m euros. In addition, the realignment created the conditions required to make the company more accessible to additional shareholders. As part of the comprehensive realignment of the M+W Zander Group M+W Zander Holdung AG acquired from EADS the remaining 30.9 percent in M+W Zander D.I.B. Facility Management GmbH in April 2005. The purchase price of about 30m euros was mainly financed with current available funds. M+W Zander now owns 100 percent in its Facility Management subsidiary. Due to different business drivers and management focus, the prime objective being pursued by the Executive Board is to establish an independent business platform focused on increasing sales and improving cost competitiveness to be achieved progressively over the medium term. The planned listing of M+W Zander Singapore is part of this process which also requires a separate independent governance platform. This will mean that the companies within the Photonics business division will represent Jenoptik’s core business. At its meeting yesterday the Supervisory Board of the Jenoptik Group agreed to the strategy of concentrating on the Photonics business division. In fiscal year 2005 Jenoptik aims to repeat the same high level of sales and earnings posted in 2004. The Jenoptik Group intends 2005 to repeat the success it achieved in the 2004 record year. The aim is to post a similar level of sales as in the previous year at between 1.9 and 2.1bn euros. The deconsolidation of M+W Zander Gebäudetechnik carried out at the end of 2004 will mean the loss of around 450m euros in sales volume as against 2004. In terms of operating earnings Jenoptik aims to repeat the same high earnings level of 2004 and to post an operating EBIT of between 60 and 70m euros. This would give an anticipated EBITDA of 100 to 110m euros, corresponding to an EBITDA margin at the same level as in 2004. The provisional calculations for the 1st quarter 2005 fully reaffirm these forecasts. Sales in the 1st quarter, at around 400m euros (taking into account the Technical Facility Systems sales of about 86m euros included in the previous year’s figure), will clearly exceed the level in the previous year (2003 under IFRS around 400m euros) on a comparable basis. The operating result (EBIT) will be between 8 and 10m euros; earnings before tax will be in the black. Figures in million euros 2004 2003 Group sales 2,523.0 1,922.0 Group operating result (EBIT) 81.1 9.0 Group earnings before tax 37.4 -43.3 Group earnings after tax 19.0 -45.9 Order intake – Group 2,368.0 2,205.0 Order backlog – Group 1,866.6 2,290.4 Employees as at 31.12. (incl. trainees) 9,267 10,486 Contact: IR, Cornelia Todt, Phone/Fax +49(0)3641-652290/2484; http://www.jenoptik.com Jenoptik AG Carl-Zeiss-Straße 1 07739 Jena Deutschland ISIN: DE0006229107 (TecDAX) WKN: 622910 Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart End of ad hoc announcement (c)DGAP 19.04.2005 190817 Apr 05