Ad-hoc | 16 November 1998 07:56

Ad hoc-Service: SW Umwelttechnik Report 1-9/1998

—————————————————————— Ad hoc-Service: SW Umwelttechnik Report 1-9/1998 Ad hoc-Mitteilung übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— SW Umwelttechnik – Report 1-9/1998 SW Umwelttechnik continues its growth-strategy; After acquisition of OMS Hungaria Kft sales increased by 43% Klagenfurt, 16.11.1998 In the first three quarters SW Umwelttechnik continues its growth- strategy presented during the IPO in November 1997. The following group data, including the 100% takeover of Biogest Abwassertechnik GmbH/Vienna in spring 1998 as well as the acquisition of 51% of the shares of OMS Hungaria Kft., acquired retroactively as of 1.1.1998, shows the figures 1-9/98 compared with last years figures: ATS million 1-9/97 1-9/98 Change Sales 248.0 354.8 +43% EBIT 21.1 24.0 +14% Financial results 0.3 21.0 more than 100% Results from 21.9 37.8 +73% ordinary activities before tax Net Profit 17.6 31.9 +81% before minority interests Employees 425 475 +12% Sales and revenues 1-9/1998 Including OMS Hungaria Kft., SW Umwelttechnik group’s sales amounted to ATS 355 million, that is an increase of 43% within the first three quarters of 1998. As a consequence of the acquisition of OMS Hungaria Kft., sales increased and it was further possible to expand significantly the group’s core business area, i.e. the Environment Technology. As of 9/98 already 71% of the group’s sales account for this business area. As expected, the declining market situation in the Austrian building industry resulted in a drop in sales of Natural Building Materials. Accordingly, the turnover’s share of Natural Building Materials fell to 10%. With a 19% share, Other Products hardly changed. As a consequence of the company’s expansion strategy towards Central Europe’s growing markets the share of turnover achieved in Hungary rose to 49%, in Austria 48% and 3% in the other European countries. The operating results increased to ATS 24 million, that is +14% in comparison to the same period last year. As expected, the difficult market situation in the field of Natural Building Materials as well as delayed orders in the field of Environment Technology in Hungary (local elections were held in November) resulted in a reduced operating result (EBIT) margin. Furthermore it has to be taken into account that the realised acquisitions do not yet reach the groups’s EBIT margin. It was possible to raise the results from ordinary business activities by 73% from ATS 22 million to ATS 38 million. This is a consequence of the increase in the financial result to ATS 21 million, mainly due to the partly sale of a non-core business unit (ATS 13 million), an increased net interest (ATS 2 million) as well as increased results from investments (ATS 6 million). Outlook It is expected that group sales can be increased significantly, from ATS 350 million in 1997 to more than ATS 500 million in 1998. Even after the acquisition of OMS Hungaria Kft., the equity ratio will be over 60%, which allows to continue the consequent realisation of the group’s acquisition strategy in 1999. Also the enlarged management with Mr. Christian Riel as Head of Finance/Investor Relations corresponds with the expansion plans of the SW Umwelttechnik group. One of the next steps will be the implementation of a Stock Option Plan for the group’s management as well as for the managers of the group companies. In the following years it is planned to intensively use the synergy effects from the latest acquisitions in Austria and especially increase them in the growing market of environmental technology in Central Europe, where SW Umwelttechnik invested more than ATS 50 million for production facilities Address any queries to: Heinz Wolschner, member of the board, SW Umwelttechnik Tel +43 (0)463 321 090, Fax +43 (0)463 376 67 Ende der Mitteilung