Bertrandt AG — Interim / Quarterly Report 2008

Feb 11, 2008

Fiscal 2007/2008 Interim report as of 31 December 2007

CI-386-01.08-A

Bertrandt AG Birkensee 1, 71139 Ehningen Germany Telephone +49 7034 656-0 Telefax +49 7034 656-4100 www.bertrandt.com info@bertrandt.com

Contents

The quarter at a glance Management report Quarterly report

Financial calendar

• 02
• Contents 03
• 04
• 08
• Notes 12
• 14
• Credits 14

The quarter at a glance

	01.1 0.07 - 31 .12. 07	01.1 0.06 - 31 .12. 06
Reve nues	95.9 65	75.3 09
Ope ratin ofit g pr	10.3 71	5.81 2
Prof it fro rdin ctivi ties m o ary a	10.5 86	5.77 5
ings afte r inc Earn tax ome	7.29 2	3.44 7
h flo Free cas w	13.8 33	8.73 8
ital s pend Cap ing	5.48 0	3.14 8
Equi n 31 Dec emb ty o er	84.9 21	61.6 43
Equi tio o n 31 Dec emb er (% ) ty ra	46	47
ber of em ploy Num t ees a
rand ber Bert t Gr 31 D oup on ecem	5,01 3	3,79 0
Shar emb er (E UR)* ice o n 31 Dec e pr	29.5 0	12.8 8
Shar ice h igh ( EUR )** e pr	29.6 9	13.1 0
Shar ice l ow ( EUR )** e pr	20.5 8	10.8 0

Bertrandt has continued to grow, with consolidated revenues coming to EUR 95.965 million (previous year EUR 75.309 million) in the first quarter of fiscal 2007/2008, equivalent to growth of 27.4 percent.

The gratifying trend in earnings carried over into the period under review. EBIT as at 31 December 2007 came to EUR 10.371 million (previous year EUR 5.812 million), an increase of 78.4 percent. Earnings after income tax stood at EUR 7.292 million (previous year EUR 3.447 million).

On the strength of the good result, positive free cash flow of EUR 13.833 million was generated (previous year EUR 8.738 million). This resulted in an increase in cash and cash equivalents to EUR 27.575 million (previous year EUR 7.252 million). At 46.2 percent (previous year 47.3 percent), the equity ratio was at an above-average high level.

As of 31 December 2007, Bertrandt had 5,013 employees across the entire Group (as of 30 September 2007: 4,708). We are continuing to recruit specially trained engineers as well as qualified junior management staff in the conventional body shell and interior segments as well as in the growth areas of electronics, supporting services, powertrains and testing.

The market for engineering services continues to provide strong potential for successful business in both the automotive and aircraft industries. Alongside the manufacturers and systems suppliers from the automotive and aviation industries, Bertrandt also provides growth sectors outside the mobility industry with specifically targeted customised service concepts.

*Closing price in Xetra trading **In Xetra trading

Financial figures

Bertrandt is one of the leading engineering service providers in all of Europe. At 23 facilities in Europe and the United States, roughly 5,000 employees are at work on developing future model generations in the automobile and aircraft industries. Our range of services covers the entire development process. Its customer base comprises nearly all European manufacturers as well as numerous leading systems suppliers.

With manufacturers making more and more forays into new business segments and vehicle niches, they are increasingly outsourcing complex projects, a trend that is proving to be a key growth driver for Bertrandt. For this reason, it has been steadily broadening its range of services over the past few years. Bertrandt seeks to address its customers' requirements with a range comprising services, solutions for specific areas and the development of modules and derivatives. In addition to conventional engineering areas such as body shell, interior and simulation, the range comprises such specialist areas as electronics, supporting services, powertrains and testing. In the aviation area, Bertrandt concentrates on structural and cabin development, electronics, model construction and process management. Bertrandt provides technical and commercial services all over Germany to companies outside the mobility industry.

The market for development services continued to grow in line with our expectations in the first quarter of fiscal 2007/2008. Bertrandt was able to extend its position, thanks to its strategic orientation, which combines a customer and branch-oriented approach to the market with the establishment of Group-wide divisions. This made it possible to accommodate greater project volumes, thus ensuring optimised capacity utilisation within the operating units.

The effects were reflected in the revenue and earnings growth achieved in the quarter ending 31 December 2007, in which consolidated revenues stood at EUR 95.965 million (previous year EUR 75.309 million). Bertrandt Group's divisions – Digital Engineering, Physical Engineering and Electrical Systems/Electronics – all posted substantial growth.

Bertrandt offers its services in Germany, the United Kingdom, France, Sweden, Spain and the United States. Thanks to the close organisational link-up with our facilities in Germany, our full range of services is available to our international customers. Our foreign business lived up to our expectations, with the foreign subsidiaries making a positive contribution to earnings.

In the first quarter, Bertrandt generated consolidated EBIT of EUR 10.371 million (previous year EUR 5.812 million) and consolidated EBT of EUR 10.586 million (previous year EUR 5.775 million). The improvement in earnings was attributable to increased business volumes and the resultant heavy capacity utilization at the operating units. The Group also owed this success to systematic cost management.

In contrast to the first three months of the previous year, the financial result was positive, coming to EUR 0.215 million (previous year net borrowing costs of EUR 0.037 million).

Management report

Business model and strategy

Business performance

Foreign operations

Results of operations

Balance sheet structure

Financial situation

(previous year EUR 0.34).

Total assets rose by EUR 8.959 million over September 30, 2007, coming to EUR 183.954 million on December 31, 2007. On the assets side, cash and cash equivalents increased by EUR 13.307 million. Based on the favourable earnings situation, shareholders' equity increased in absolute terms, with the equity ratio remaining virtually unchanged at 46.2 percent despite the increase in total assets, meaning that Bertrandt is among the best-funded companies in the automotive sector.

At EUR 19.191 million (previous year EUR 11.775 million), cash flow from operating activities was positive. Capital spending amounted to EUR 5.480 million (previous year EUR 3.148 million) and was financed fully from cash flow. Despite the increased capex volume, free cash flow came to EUR 13.833 million, i.e. above the previous year's figure of EUR 8.738 million, resulting in an increase in cash and cash equivalents to EUR 27.575 million.

Under the staff stock-option programme, the Group held 19,884 treasury shares as of 31 December 2007, which were netted with equity.

12.000 10.000 8.000 6.000 4.000 2.000

16.0 00
12.0 00
8.00 0
4.00 0

The Bertrandt share

Outlook

Employees Bertrandt employed 5,013 people on 31 December 2007 (3,790 in the previous year) across the entire Group. Bertrandt is continuing to recruit in both conventional engineering areas as well as in high-growth segments to make use of opportunities for further growth. Details of vacant positions of interest to experienced engineers and technicians as well as qualified undergraduates are available at www.bertrandt.com. One key determinant for our success is the expertise of our staff, which we foster on a steady basis in the form of technical and business training.

Bertrandt stock outperformed the Prime Automobile Performance Index in the course of the first quarter of fiscal 2007/2008. Whereas this index retreated by 6.4 percent, the price of Bertrandt AG shares gained 25.8 percent in value hitting a high in XETRA trading for the period on 28 December 2007 at EUR 29.69 and a low of EUR 20.58 on 20 November 2007. The stock closed at EUR 29.50 in Xetra trading on 28 December 2007.

Current analyst research on the Company is available in the Investor Relations section

at www.bertrandt.com.

Bertrandt is one of the leading European providers of engineering services for all aspects of mobility. In the international automotive and aviation industry, our range covers the entire product engineering value chain and beyond. Bertrandt will continue to systematically expand its range of services and to tap growth potential. As a strategic partner to the automotive and aviation industries, Bertrandt sees a good chance of business success.

At this stage, it is difficult to estimate what impact the subprime crisis will have on the global economy. Bertrandt assumes that the European automotive industry will continue to perform well. If this is indeed the case and there are no material changes in the contract-awarding practices of carmakers and components suppliers, the Management Board is confident that all divisions will report growth on the top and bottom lines in the coming fiscal year. On this basis, Bertrandt is confident of entering another successful year in tandem with continued plentiful equity resources and a strong financial situation within the Group.

%
135 130 125 120 115 110 105 100 95	rand Bert t AG
90
85
	10/0 7

Quarterly report

Consolidated income statement Consolidated balance sheet

From 01. 10. t o 31 .12.	7/20 200 08	6/20 200 07
Reve nue s	95.9 65	75.3 09
Oth er in ally ed a tern erat ssets gen	0.06 4	0.00 6
l rev Tota enu es	96.0 29	75.3 15
Oth ting inco er o pera me	2.23 7	1.39 1
erial d co able d Raw mat s an nsum s use	-10. 939	-7.8 50
Staff ts cos	-62. 418	-48. 101
Dep recia tion	-1.8 72	-2.3 31
Oth ting er o pera exp ense s	-12. 666	-12. 612
ratin ofit Ope g pr	10.3 71	5.81 2
Shar e of prof it in ciate asso s	0.05 0	0.01 2
Inte and simi lar e rest xpe nses	-0.1 14	-0.1 68
Oth er in d sim ilar i tere st an ncom e	0.27 9	0.11 9
fina inco Net nce me
(pre viou et b win sts) s ye ar n orro g co	0.21 5	-0.0 37
Prof it fro rdin activ ities m o ary	10.5 86	5.77 5
Oth er ta xes	-0.1 17	-0.1 12
Earn ings bef tax ore	10.4 69	5.66 3
Inco me t axes	-3.1 77	-2.2 16
ings afte r inc Earn tax ome	7.29 2	3.44 7
Min ority inte rests	-0.0 01	0
Prof it at trib utab le
he s hare hold f Be ndt AG to t rtra ers o	7.29 1	3.44 7
Prof it ca rried forw ard	9.50 8	3.85 4
sfer tain ed e arni Tran to re ngs	0	0
solid ated dist ribu tabl ofit/ loss Con e pr	16.7 99	7.30 1
Earn ings sha dilu ted/ basi c – ( EUR ) per re –	0.72	0.34

Intangible assets Property, plant and equipment Other financial assets Receivable and other assets Income tax assets Deferred taxes Current assets Inventories

Equity and liabilities

Provisions Borrowings Other liabilities Deferred taxes

Current liabilities

	31.1 2.20 07	30.0 9.20 07
Asse ts
Non rent ets -cur ass	55.5 60	52.4 45
Inta ngib le as sets	12.6 16	12.1 44
Prop plan d eq uipm erty, t an ent	36.8 10	33.8 36
Inve nted for usin g th uity hod stme nts a met ccou e eq	0.33 8	0.28 8
Oth er fi ial a ssets nanc	0.76 0	0.80 9
ivab le an d ot her a Rece ssets	1.64 9	1.56 0
Inco me t ssets ax a	1.22 0	1.20 6
Defe rred taxe s	2.16 7	2.60 2
Cur rent ets ass	128 .394	122 .550
Inve ies ntor	0.41 1	0.37 1
Futu ceiv able s fro uctio nstr ntra cts re re m co n co	17.1 15	23.4 32
Rece ivab les a nd o ther ts asse	83.1 23	84.3 09
Inco me t ssets ax a	0.17 0	0.17 0
Cash and h eq uiva lents cas	27.5 75	14.2 68
Tota l ass ets	183 .954	174 .995
Equ ity a nd l iabi litie s
ital and Cap res erve s	84.9 21	77.5 61
Issue d ca pita l	10.1 43	10.1 43
Shar emi e pr um	26.6 25	26.6 25
Reta ined ning ear s	31.3 51	31.2 83
Min ority inte rests	0.00 3	0.00 2
solid ated dist ribu tabl ofit Con e pr	16.7 99	9.50 8
Non liab ilitie rent -cur s	17.2 42	18.0 03
Prov ision s	5.35 2	5.09 8
owin Borr gs	5.29 5	6.19 9
Oth er lia biliti es	0.70 9	0.73 2
Defe rred taxe s	5.88 6	5.97 4
Cur liab ilitie rent s	81.7 91	79.4 31
ision Tax prov s	10.1 32	8.57 7
Oth rovis ions er p	33.4 20	34.4 26
Borr owin gs	1.84 1	1.62 4
Trad yab les e pa	6.05 5	7.22 2
Oth er lia biliti es	30.3 43	27.5 82
l eq uity and liab ilitie Tota s	183 .954	174 .995

Tax ision prov s
Oth rovis ions er p
owin Borr gs
Trad yab les e pa
Oth er lia biliti es

Consolidated statement of changes in equity

Consolidated segment report

Consolidated cash flow statement

Shares held by members of the management board and the supervisory board

From 01. 10. t o 31 .12.
1. Ea rnin fter inco ax ( inclu ding min orit ies) me t gs a
rited 2. W rent ts own s on non -cur asse
se/d 3. In in p rovis ions crea ecre ase
4. O ther h ex es/in non -cas pens com e
5. P rofit /loss from disp osal of n nt as sets on-c urre
6. In se/d in in ories de r ecei veab les a nd o ther vent , tra crea ecre ase
igne d to inve sting or f inan cing acti vitie ts no t ass asse s
se/d ade bles and oth er lia biliti 7. In in tr ot crea ecre ase paya es n
assig ned to in ing o r fin anci ctivi ties vest ng a
8. C ash flow s fro ting iviti es ( 1.-7 .) act m o pera
9. Pa ecei ved from disp osal of p plan d eq uipm nts r rty, t an ent yme rope
ived from disp osal of f inan cial 10. Paym ents ts rece asse
de fo plan d eq 11. Paym r inv in p uipm ents estm ents rty, t an ent ma rope
12. Paym de fo r inv in in ible ents estm ents tang ts ma asse
13. Paym de fo r inv in f inan cial ents estm ents ts ma asse
14. C ash flow s fro m in ing activ ities (9.- 13.) vest
ived from issu e of capi tal 15. Paym ents rece
de t o sh areh olde d m hare hold 16. Paym inor ity s ents ma rs an ers
17. Paym ived from issu e of deb t ins and rais ing o f loa ents trum ents rece ns
18. Paym de fo r dis char ging dep t ins and ayin g loa ents trum ents ma rep ns
19. C ash flow s fro m fi cing iviti es ( 15.- 18.) act nan
20. Cha in c ash and cash ivale nts ( 8.+1 4.+1 9.) nges equ
Cash and h eq lents he b of p d 21. uiva egin ning erio at t cas
22. Cash and h eq uiva lent the end of p erio d (2 0.+2 1.) s at cas

l Tota		852 ,710	852 ,710
	Mar tin D iepo ld	25	25
	Dan iela Brei	142	142
	Prof lfried Sih . Dr. -Ing . Wi n	0	0
	t Bin nig Hors	0	0
	imili an W ölfle Max	0	0
Sup ervi boa rd sory	Dr. K laus Bley er	0	0
	Ulric h Su bkle w	51,4 49	51,4 49
t bo ard Man age men	Bich ler Diet mar	801 ,094	801 ,094
		Shar es	Shar es
		On 3 1.12 .200 7	On 3 0.09 .200 7

Issue capi	d tal	Shar e ium prem	Reta ined ning ear s		Min ority inte rests	Dist ri buta ble prof it	Tota l
			distr Non i bute d ings earn	Curr ency sla tran tion rese rve	Trea sury shar es
Valu 01. 10.2 007 10.1 e on	43	26.6 25	32.0 99	-0.2 43	-0.5 73	0.00 2	9.50 8	77.5 61
Cap ital i ncre ases								0
Divi den d pa nt yme								0
Earn ings afte r inc tax ome							7.29 2	7.29 2
Oth tive chan er n on-o pera ges						0.00 1	-0.0 01	0
Sale of t hare reas ury s s					0.16 1			0.16 1
Curr diff ency eren ces			0.31 2	-0.4 05				-0.0 93
Valu 31. 12.2 007 10.1 e on	43	26.6 25	32.4 11	-0.6 48	-0.4 12	0.00 3	16.7 99	84.9 21
Valu 01. 10.2 006 10.1 e on	43	26.6 25	18.3 24	-0.1 94	-0.5 73	0.00 2	3.85 4	58.1 81
ital i Cap ncre ases								0
Divi den d pa nt yme								0
Earn ings afte r inc tax ome							3.44 7	3.44 7
Oth tive chan er n on-o pera ges								0
Sale of t hare reas ury s s								0
diff Curr ency eren ces			-0.0 39	0.05 4				0.01 5
Valu 31. 12.2 006 10.1 e on	43	26.6 25	18.2 85	-0.1 40	-0.5 73	0.00 2	7.30 1	61.6 43

200 7/20 08	200 6/20 07
7.29 2	3.44 7
1.87 2	2.33 1
0.80 3	2.85 9
0.21 9	-1.7 69
0.07 4	0.01 0
7.35 9	-1.3 34
1.57 2	6.23 1
19.1 91	11.7 75
0.00 7	0.06 3
0.11 5	0.04 8
-4.5 13	-1.4 98
-0.9 02	-1.4 13
-0.0 65	-0.2 37
-5.3 58	-3.0 37
0.16 1	0
0	0
0.52 1	0
-1.2 08	-5.7 29
-0.5 26	-5.7 29
13.3 07	3.00 9
14.2 68	4.24 3
27.5 75	7.25 2

Segm rting ent repo	Digi tal		Phys ical		Elec trica l Sys s/ tem		Tota l for
by d ivisio n	Engi ing neer		Engi ing neer		Elec ics tron		all d ivisio ns
From 01. 10. t o 31 .12.	7/20 200 08	6/20 200 07	7/20 200 08	6/20 200 07	7/20 200 08	6/20 200 07	7/20 200 08	6/20 200 07
Reve nues	59.6 69	45.9 33	19.2 30	17.0 81	17.0 66	12.2 95	95.9 65	75.3 09
Ope ratin ofit g pr	6.41 9	3.42 2	2.16 2	1.30 9	1.79 0	1.08 1	10.3 71	5.81 2

Provisions for post-employment benefits are recognised according to the projectedunit-credit method while taking account of the future trend in salaries and the corridor rule pursuant to IAS 19,

Goodwill arising from acquisition accounting is capitalised and an annual impairment test carried out pursuant to IFRS 3 and IAS 36,

Internally generated intangible assets are capitalised,

The depreciation periods for property, plant and equipment have been adjusted to match the period during which economic benefits are derived from them,

Derivative financial instruments are recognised at their fair value and hedging relationships described in accordance with IAS 39.

In addition to Bertrandt AG, the consolidated financial statements include all operating subsidiaries under the legal and constructive control of Bertrandt AG. This specifically entails the following German companies: the Bertrandt Ingenieurbüro GmbH companies in Gaimersheim, Hamburg, Neckarsulm, Cologne, Munich, Ginsheim-Gustavsburg, Tappenbeck, Bertrandt Technikum GmbH, Bertrandt Projektgesellschaft mbH in Ehningen, and Bertrandt Services GmbH in Ehningen as well as ZR-Zapadtka + Ritter GmbH & Co. KG and ZR-Zapadtka + Ritter Geschäftsführungs GmbH, which are all consolidated.

Also consolidated were the following foreign companies: Bertrandt France S.A. in Paris/Bièvres, Bertrandt S.A. in Paris/Bièvres, Bertrandt S.A. Sochaux, Bertrandt UK Ltd. in Dunton, Bertrandt Spain S.A. in Barcelona/Esparreguera, Bertrandt Sweden AB in Trollhättan and Bertrandt US Inc., Detroit.

Companies on which Bertrandt exercises material but not dominant influence are accounted for at equity as associated companies in the consolidated financial statements. These are Bertrandt Entwicklungen AG & Co. OHG, Bertrandt Automotive GmbH & Co. KG and, for the first time this year, aucip. automotive cluster investment platform GmbH & Co. KG and aucip. automotive cluster investment platform Beteiligungs GmbH and also EUROAER GmbH for the first time as of this fiscal year.

There were no key events occurring after the end of the period covered by the interim report that are not shown in the financial statements for the interim reporting period from 1 October 2007 to 31 December 2007.

The current declarations pursuant to Section 161 of the German Public Companies Act on the German Corporate Governance Code by the Management Board and the Supervisory Board of Bertrandt AG are accessible on the www.bertrandt.com website.

Companies consolidated

Material events occurring after the end of the interim

reporting period

German Corporate Governance Code

Accounting methods and principles

Recognition and measurement methods

Recognition, measurement and consolidation methods differing from German law

Notes

These interim financial statements of Bertrandt Aktiengesellschaft, Ehningen, (register number HRB 245259, commercial register of the local court of Stuttgart) for the quater ending 31 December 2007 were prepared using the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) as endorsed by the European Union (EU). In addition, allowance was made for the provisions to be observed in accordance with Section 315a (1) of the German Commercial Code. All compulsory standards applicable in the 2007/2008 fiscal year were applied. The interim financial statements were prepared in euros. Unless stated otherwise, all amounts are shown in millions of euros (EUR million).

As a matter of principle, the interim financial statements have been prepared and the comparative figures for the previous year calculated using the same consolidation, recognition and measurement methods as for the consolidated financial statements for 2006/2007. A detailed description of these principles is described in the notes to the consolidated financial statements for the fiscal year 2006/2007, which are also available on the Internet at www.bertrandt.com.

These IFRS consolidated financial statements contain the following recognition and measurement methods that differ from requirements under German legislation:

• Profit from customer orders is recognised in accordance with the percentage-ofcompletion method (International Accounting Standards (IAS) 11),
• Treasury stock is netted with capital and reserves,
• Foreign-currency receivables and liabilities are converted at the rates prevailing on the balance sheet date and the resulting changes in value are charged to the income statement,
• Deferred taxes are recognised using the balance sheet oriented liability method; deferred tax assets arising from unused tax losses are recognised if it is likely that they can be realised,
• Other provisions are not set aside if the likelihood of their being utilised is less than 50 percent,
• Assets and residual liabilities under finance leases are placed on the books in accordance with the classification criteria set out in IAS 17,

Legal Notice

This interim report contains inter alia certain foresighted statements about future developments, which are based on current estimates of management. Such statements are subjected to certain risks and uncertainties. If one of these factors of uncertainty or other imponderables should occur or the underlying accepted statements proved to be incorrect, the actual results could deviate substantially from or implicitly from the expressed results specified in these statements. We have neither the intention nor do we accept the obligation of updating foresighted statements constantly since these proceed exclusively from the circumstances on the day of their publication.

As far as this interim report refers to statements of third parties, in particular analyst estimations, the organisation neither adopts these, nor are these rated or commented thereby in other ways, nor is the claim laid to completeness in this respect.

Published and edited by

Bertrandt AG Birkensee 1, 71139 Ehningen Germany Telephone +49 7034 656-0 Telefax +49 7034 656-4100 www.bertrandt.com info@bertrandt.com

HRB 245259 Amtsgericht Stuttgart

Contact

Alexander Grab Investor Relations Telephone +49 7034 656-4478 Telefax +49 7034 656-4488 alexander.grab@de.bertrandt.com

Anja Schauser Corporate Communications Telephone +49 7034 656-4037 Telefax +49 7034 656-4090 anja.schauser@de.bertrandt.com

Design, layout and production

SAHARA Werbeagentur, Stuttgart www.sahara.de

Text

Bertrandt AG

Lithography and printing

Metzger Druck, Obrigheim

Photos

Andreas Körner, Stuttgart Getty Images

Annual General Meeting

13 February 2008 Sindelfingen

Report on the 2nd quarter

8 May 2008

3rd Capital Market Day

8 May 2008 Ehningen

Report on the 3rd quarter

20 August 2008

Announcement of company figures 2007/2008

4 December 2008

Annual press and analysts' conference

4 December 2008 Stuttgart/Frankfurt

Annual General Meeting

18 February 2009 Sindelfingen

Financial calendar Credits