INDUS Holding AG

Earnings Release • Jan 31, 2007

News Details

Ad-hoc | 31 January 2007 08:30

INDUS publishes preliminary figures for 2006 financial year

INDUS Holding AG / Preliminary Results

Ad hoc announcement according to § 15 WpHG transmitted by DGAP - a company
of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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INDUS publishes preliminary figures for 2006 financial year
- Positive sales and operating earnings performance
- Reassessment of financial assets
- Dividend policy to be maintained

Bergisch Gladbach, January 31, 2007 - INDUS Holding AG (ISIN DE0006200108)
expects to post a positive operating performance for 2006 once again. Sales
and EBITDA will exceed the figures reported for the previous year.

In addition to the 2006 results, the Board of Management and Supervisory
Board of INDUS have also held extensive discussions concerning the
company’s strategy and its implications for the valuation of the company’s
financial assets. Particularly in view of the weak perform-ance in the
automotive industry segment, the management bodies of INDUS have decided to
reassess the financial assets. This is expected to result in extraordinary
write-downs of finan-cial assets amounting to more than Euro 80 million at
the holding company (AG). This step will enable INDUS to account for
current risks, as well as for valuation risks relating to the coming years.
The charge resulting from the write-downs is to be partly offset by
withdrawals from revenue reserves to enable the company to maintain its
consistent dividend policy.

In terms of its strategy, INDUS will maintain its broad diversification of
investments in order to offset risks between the various industries and
segments in its operating business. The capi-tal is employed with the
objective of achieving long-term earnings stability for the overall
portfolio.

INDUS has increased its investment in the construction industry in recent
years, while in-vestment in traditional automotive suppliers has reduced on
account of the increasing pressure on margins. This cautious assessment is
fully confirmed by current market developments. No sustainable improvement
in the earnings situation of this segment is currently to be expected.

This capital management strategy nevertheless means that the values of the
companies in the various segments have shown different developments.
Account also has to be taken of these developments, and especially of
future expectations, in the form of adjustments to balance sheet
disclosures. The reduction in the amounts stated in the 2006 balance sheet
is offset by a considerable increase in company values resulting from the
improved earnings power of other segments. In contrast to previous years,
however, the German Commercial Code (HGB) no longer allows this to be
factored into the adjustments to the balance sheet figures.

Based on initial calculations, the consolidated sales of INDUS for the 2006
financial year rose by over 10 % from Euro 735 million to more than Euro
820 million. The Group’s EBITDA also surpassed the previous year’s figure
of Euro 121.9 million. The extraordinary write-downs on goodwill at the
Group will be considerably lower than those at the holding com-pany (AG).
This lower level of amortization is principally due to the conservative
valuation of goodwill in previous years upon the consolidation in
accordance with IFRS. Consolidated net income is therefore expected to
exceed Euro 20 million (previous year: Euro 26.9 million).

Following the implementation of these measures, INDUS still has a high
equity ratio of more than 50 % at the holding company (AG) and liquidity of
Euro 87 million at the Group as of 12.31.2006. This means that INDUS
continues to report healthy balance sheet ratios and has a very comfortable
financial cushion, enabling it to successfully maintain its existing
corporate strategy.

Given that the liquidity and operating earnings performance are not
affected by the adjust-ments to the balance sheet, the Board of Management
and Supervisory Board intend to maintain their consistent, earnings-based
dividend policy. For the 2007 financial year, INDUS expects to achieve
sales growth and a further improvement in its earnings
performance.

DGAP 31.01.2007

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

End of News DGAP News-Service

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