INDUS Holding AG

Earnings Release • Apr 15, 2014

News Details

Corporate | 15 April 2014 10:00

INDUS continues to grow in 2014

INDUS Holding AG / Key word(s): Final Results

15.04.2014 / 10:00

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INDUS continues to grow in 2014

– **Recent acquisition in medical engineering sector;

further acquisitions planned as the year progresses**

– Good outlook for operating activities

Bergisch Gladbach, 15 April 2014 – The INDUS Group achieved strong growth in the fiscal year 2013. At today’s annual press conference in Düsseldorf, Jürgen Abromeit, CEO of INDUS Holding AG, looked back at the past fiscal year: “The last year was a year of new beginnings for our company. At the end of 2012, we launched the COMPASS 2020 strategy programme and prepared the new course. In 2013, we reached the first milestones and acquired six new companies.” Two of these companies come from the defined target sectors – logistics and energy technology – while four are strategic complements to existing investments.

Momentum to pick up as the year progresses

In spite of some profit-reducing effects, INDUS’ operating margin reached the prior year level of 9.6%. The business performance of most subsidiaries was stable, although the German economy was relatively weak. The only exceptions were smaller companies in the metal processing and engineering segments, which failed to reach the budgeted targets. By contrast, companies in the vehicle engineering segment performed appreciably better than expected.

The Group’s sales revenues and earnings increased by approx. 8% in 2013; at over EUR 114 million, the operating result reached the highest level in the history of the company (previous year: EUR 106.0 million). About 60% (or EUR 53.7 million) of the EUR 90 million increase in sales revenues is attributable to acquisitions, while approx. 40% (or EUR 36.2 million) is due to organic revenue growth. Earnings after taxes amounted to EUR 64.0 million (previous year: EUR 52.5 million).In view of the greatly improved result, the Board of Management and the Supervisory Board will propose raising the dividend by EUR 0.10 to EUR 1.10 to the Annual General Meeting on 11 June.

INDUS holds 40 small and medium-sized companies operating in five segments. Based on the EBIT margin, the results in the Construction/Infrastructure and Medical Engineering/Life Science segments reached a very good level and clearly exceeded the Group-wide target of 10% at 13.6% and 16.9%, respectively. The margin in the Vehicle Engineering segment was improved considerably on the previous year and climbed from 5.0% in 2012 to 7.7%. This shows that the measures announced in 2012 were effective. At 9.6% and 8.6%, respectively, the EBIT margins in the Engineering and Metal Processing segments reached a good level.

Equity capital increased, net debt reduced

The balance sheet relations of the INDUS Group again improved significantly in 2013. Net debt declined to EUR 307.6 million, while equity capital increased by over EUR 100 million to a record level of EUR 515.3 million. The equity ratio thus climbed to over 43% (previous year: 39%). Cash flow from operating activity also rose sharply in 2013, doubling from EUR 45.9 million to EUR 97.5 million. Liquid funds of EUR 115.9 million (previous year: EUR 98.7 million) will support the planned fixed asset investments of approx. EUR 50 million in the existing portfolio and the planned medium-term growth. At the end of 2013, INDUS increased its capital by about EUR 60 million. The new shares were fully placed at a price of approx. EUR 27. INDUS considers this to be a proof of confidence by the capital market and a confirmation of the strategic objectives of the COMPASS 2020 programme.

Recent acquisition in the medical engineering / life science sector

Following the acquisitions in the defined target sectors of logistics and energy technology, INDUS is also placing a focus on medical engineering in 2014. In mid-April, the company acquired Rolko, a specialist for rehabilitation equipment (see separate press release dated 10 April).

Outlook on 2014

Many economic experts project a stronger recovery for 2014. Judging from the expectations of the INDUS subsidiaries and the first months of the current year, this projection is also true for the INDUS Group. INDUS projects Group sales revenues in excess of EUR 1.2 billion and an operating result of a good EUR 118 million (excluding acquisitions) for 2014.

INDUS plans to acquire two companies as well as two smaller entities as strategic complements for its subsidiaries in 2014. At the operating level, the company will predominantly tap identified potential for development. “Our strategy provides for the selective development of our portfolio. This means that we are constantly monitoring the performance of each individual investment and make adjustments where necessary. In 2012 and 2013, we primarily did this in the Vehicle Engineering segment. In 2014, we will place a stronger focus on activities in the Metal Processing and Engineering segments,” said Jürgen Abromeit.

The full annual report of INDUS Holding AG can be downloaded from www.indus.de .

Contact:

Regina Wolter

Corporate Communications & Investor Relations

Phone +49 2204 4000 70

E-Mail wolter@indus.de

End of Corporate News

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Language:	English
Company:	INDUS Holding AG
	Kölner Straße 32
	51429 Bergisch Gladbach
	Germany
Phone:	+49 (0)2204 40 00-0
Fax:	+49 (0)2204 40 00-20
E-mail:	indus@indus.de
Internet:	www.indus.de
ISIN:	DE0006200108
WKN:	620010
Listed:	Regulierter Markt in Düsseldorf, Frankfurt (Prime Standard); Freiverkehr in Berlin, Hamburg, München, Stuttgart

End of News	DGAP News-Service

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