Ad-hoc | 23 August 2000 07:42

Ad hoc-Service: SW Umwelttechnik Interim Resu

Ad-hoc Mitteilung übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— Press release, 23 August 2000 SW Umwelttechnik: Interim Results 2000 Turnover up by 94%, EBIT by 100% Central and East European wastewater specialists SW Umwelttechnik put in a highly successful showing in the first half of 2000 in terms of turnover and earnings growth. Turnover almost doubled from the like period of 1999. Revenue advanced by 94%, from EUR 15.8 million (mn) to EUR 30.6 mn. Some 53% of turnover was generated in Hungary, 44% in Austria and 3% in other EU member states. The group’s environmental products sector accounted for 39% of turnover, its environmental engineering sector for 35% and its building products sector for 26%. The high growth rates reflect both consolidation of the two recent acquisitions, Strong and Stadlbauer Umwelttechnik – which together accounted for 56% of the increase – and organic growth (38%). Earnings before interest and tax (EBIT) registered a year-on- year gain of over 100%, from EUR 0.22 mn to EUR 0.44 mn. Earnings were influenced by heavy expenditure on capital investment and restructuring, particularly at the newly acquired subsidiaries. However, the impact of these non- recurrent factors was more than outweighed by major environmental engineering projects in Hungary, which are now running ahead of budget, and by the success of the group’s infrastructural products. Owing to the increased cost of finance the profit on ordinary activities (POA) rose by only 20%, from EUR 0.32 mn to EUR 0.38 mn. EUR ‘000 H1 H1 H1 Change 1998* 1999* 2000* 1999/2000 Turnover 9,704 15,820 30,614 94% Total output 10,854 16,529 31,208 89% EBITDA 790 1,103 1,982 79% EBIT 64 218 437 100% POA 1,262 316 379 20% Payroll (average) 418 493 860 74% * Figures for the consolidated group as at quarterly balance sheet date Capital expenditure The major investment programme initiated in 1998 proceeded in the first half of 2000. Of the total investment budget of approx. EUR 4.5 mn for the year as a whole, more than two- thirds has already been spent. Capital expenditure is mainly being channelled to the parent company’s factories, and to the two acquisitions, Strong and Stadlbauer Umwelttechnik. The focus is on expanding capacity in Hungary and on rationalization in Austria. Outlook Management expects the surge in growth to continue for the rest of the year. Turnover is forecast to rise by at least 40% over the year as a whole, to top the EUR 60 mn mark, and a marked improvement in earnings is also anticipated. These predictions are supported by the following developments. Order backlog is EUR 25.9 mn, and major new orders are expected in Hungary in the next few months. In Hungary the increase in the proportion of households connected to sewerage systems from 45 to 65% required by law, and stricter standards for wastewater treatment plants will create a huge market for the group’s products. At present, only about 33% of treated wastewater is biologically purified. In Austria planned public expenditure cuts will generate increased demand for decentralized wastewater treatment plants in coming years. Those qualifying for building grants are likely to grab the opportunity to obtain the maximum subsidy by applying early. The first reference plants using AQUAmax – the company’s retrofitting kit for converting wastewater treatment facilities to fully biological operation – outperformed the legal limit values by a wide margin. Marketing of this product has already begun in Austria, and market research is being carried out in the Czech Republic, Hungary and Poland with a view to launching it there. Contracts Heinz Wolschner, Member of the Management Board of SW Umwelttechnik Tel: + 43 463 32 109-0; fax: + 43 463 37667 Christian Riel, Finance/Investor Relations Tel: +43 664 433 71 05; fax: + 43 1 368 86 86 E-mail: christian.riel@sw-umwelttechnik.at Website: www.sw-umwelttechnik.at Ende der Mitteilung