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Earnings Release • Mar 30, 2007

News Details

Corporate | 30 March 2007 08:15

ARQUES exceeds its own earnings targets for 2006

ARQUES Industries AG / Final Results

Release of a Corporate-announcement, transmitted by DGAP - a company of
EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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ARQUES exceeds its own earnings targets for 2006

• EBITDA jumps 114% to EUR 126.2 million
• Revenues climb 84% to EUR 768.2 million
• Equity ratio rises to 41.3%, net cash position to EUR 42.3 million

Starnberg, March 30, 2007. The Starnberg-based private equity firm ARQUES
Industries AG (ISIN DE0005156004) generated a much higher rate of
profitable growth in 2006. The company’s EBITDA (earnings before interest,
taxes, depreciation and amortization) more than doubled to EUR 126.2
million. Revenues jumped 84% to EUR 768.2 million. At EUR 36.4 million, the
free cash flow was 135% higher than the prior-year figure. The excellent
results were due to the successful operating performance of the
subsidiaries, as well as the new acquisitions effected in 2006 and the
gains registered on the sale of subsidiaries. ARQUES has set itself the
goal of further improving its revenues and earnings in 2007 and beyond.

'2006 was a record year for ARQUES, both in terms of revenues and earnings.
ARQUES proved in 2006 that it has mastered not only the first two phases of
its business model, acquisition and restructuring, but also the third
phase, the successful exit from its investments. We are convinced that
ARQUES will be even more successful in 2007,' said the designated Executive
Board Chairman of ARQUES Industries AG, Dr. Martin Vorderwülbecke.

Earnings per share more than doubled to EUR 4.60

By generating EBITDA of EUR 126.2 million in 2006 (previous year: EUR 58.9
million, +114%), ARQUES exceeded its own goal, announced in December 2006,
of generating EBITDA of EUR 120 million, by a considerable margin. At EUR
100.2 million, the company’s EBIT was also much higher than the
corresponding prior-year figure of EUR 46.1 million (+117%). ARQUES
reported positive tax income, instead of expenses, for 2006 as a result of
the tax-favored treatment of company sale proceeds and the recognition of
deferred tax income from the recognition of deferred tax assets on tax
loss-carry-forwards for restructured companies. The net profit after taxes
came to EUR 110.6 million (2005: EUR 47.8 million, +131%). The earnings per
share more than doubled to EUR 4.60, after EUR 2.19 in 2005 (+110%).

Healthy balance sheet

ARQUES also strengthened its balance sheet, raising the equity ratio from
38.7% to 41.3%. On a net basis, the Group has no financial debt at all,
because its cash holdings of EUR 92.0 million exceeded its financial
liabilities of EUR 49.7 million by EUR 42.3 million. Thus, the company’s
net cash position increased significantly (previous year: EUR 3.5 million).
The company’s financial liabilities have been reduced to 7.5% of its
balance sheet total (previous year: 10.3%).

Dividend to be increased by 150% to EUR 0.51

At the annual general meeting to be held June 21, 2007, the Executive Board
of ARQUES Industries AG will propose raising the dividend by more than 150%
to EUR 0.51 per share. For 2005, the company paid a dividend of EUR 0.205
per share, after adjusting for the 1:10 stock split.

Strong optimism regarding the company’s performance in 2007 and 2008

For 2007, ARQUES has set itself a revenue goal of EUR 1.5 billion and an
EBITDA goal of EUR 180 million. The Executive Board expects to acquire
companies with total annualized revenues of at least EUR 800 million in
2007. For 2008, therefore, the Executive Board anticipates consolidated
revenues of at least EUR 2 billion, with even higher earnings than in 2007.
These expectations are supported by the ongoing tendency of large-scale
corporations to divest themselves of non-core activities.

The preliminary annual report for 2006 is now available for download at
www.arques.de. The auditing firm PricewaterhouseCoopers Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft has issued an unqualified audit opinion on
the annual financial statements, dated March 29, 2007. The annual financial
statements as approved by the Supervisory Board and the final version of
the annual report will be published on April 19, 2007.

About ARQUES
ARQUES Industries AG, Starnberg, (www.arques.de), is a turnaround
specialist who focuses on the acquisition and the active restructuring of
companies in transitional situations, in order to develop these, with its
own team and own resources, to competitive enterprises with a positive
yield. ARQUES revitalises its subsidiaries' potential for creating value
for the benefit of all its stakeholders, taking on the relevant social
responsibility. ARQUES has made a duty of identifying underestimated
companies with reduced survivability but with high appreciation potential,
at the same time mastering complex company structures and transitional
situations. The shares of ARQUES Industries AG are traded in the regulated
market (Prime Standard) of the Frankfurt Stock Exchange under the symbol
'AQU' (ISIN: DE0005156004) and are listed in the SDAX since September 19,
2005.

Contact:
ARQUES Industries AG
Investor Relations & Corporate Communication
Anke Lüdemann, CEFA/CIIA
Email: luedemann@arques.de

Public Relations
Christian Schneider
Email: schneider@arques.de

Tel.: +49 (0) 8151/ 651 0

DGAP 30.03.2007

Language: English
Issuer: ARQUES Industries AG
Münchner Str. 15a
82319 Starnberg Deutschland
Phone: +49 (0)8151 651-0
Fax: +49 (0)8151 651- 500
E-mail: info@arques.de
www: www.arques.de
ISIN: DE0005156004
WKN: 515600
Indices: SDAX
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin-Bremen, Hamburg, Düsseldorf, München, Stuttgart

End of News DGAP News-Service

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