EUWAX AG — Earnings Release 2006

Oct 18, 2006

News Details

Ad-hoc | 18 October 2006 19:53

EUWAX group preliminary q3 2006 EPS (IFRS) at 0.72 € (-25 %)

Ad hoc announcement transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Stuttgart, 18.10.2006 EUWAX group preliminary q3 2006 EPS (IFRS) at 0.72 € (-25 %) Group’s net profit (preliminary) for the first nine months 2006 at 17.1 mln. € (+49 %) EUWAX group draws a positive balance after the first nine months of the current business year. The q3 group`s net profit however did not maintain the high level of the previous two quarters. However, the accumulated profit of the first three quarters beat both the total full year profit of 2005 (15.9 mln. €) and the record level of 2004 (17.0 mln. €). Affected by the weak transaction level of the market environment in the summer months, the net profit of the last quarter declined in relation to q2 2006 (-45 %) as well as in relation to the prior year period (-24 %). Earnings per share came in at 0.72 €. Therewith the profit held a solid level despite the difficult stock market surroundings. On accumulated base the group’s net profit climbed by 49 % to 17.1 Mio. €. EBT amounted to 29.0 mln. € (+49 %). The fundament for the accumulated profit growth is located in the operational strength of the brokerage business in the first six months. The record transaction level in q1 and q2 was not sustained in q3. The accumulated trading volume of all trading areas increased by 49 % to 79,7 bln. €. The driving force behind this development was once more the trading in structured products. In this environment the market share expanded in q3 and for the current full year. The global stock exchanges performed in q3 an upward move and reached the highs previously seen in May. However the recovery was accompanied by weak transaction volumes whereas especially retail investors showed reluctance regarding transactions. In addition, the markedly declined volatility made trading in leveraged products less attractive. Investment products moved on a solid demand level and showed more moderate declines in turnover than leveraged products. The start of q4 delivered follow up gains in the markets, which were not translated into sustainable stronger transactions. The volatility indices, which are important for the turnover of the sector, declined further. A possible persistence of the weak transaction market environment in q4 can not be excluded. However the business development should continue to be on a sound level. The earnings in q3 were declining in relation to the prior year at 14.3 mln. € (-3 %). Provision income showed a stronger performance in comparison to the trading income. While the provision income accelerated to 8.5 mln. € (+4 %), the trading income decreased strongly to 4.4 mln. € (-24 %) and reflected the low volatility. As in the previous quarters, the administrative expenditures climbed. A special writedown of 0.5 mln. € on a receivable charged further. The total expenditures accelerated in q3 in relation to 2005 by 17 % to 7.8 mln. € and on accumulated level by 35 % to 24.9 mln. €. Return on equity after tax reached 17 % in q3 fell below the target of 20 % for the first time in 2006. In accumulated numbers for the current full year 2006 the EUWAX group showed a high profitability of 29 %. Preliminary key figures (IFRS): Q3 Change Q1-Q3 Q1-Q3 Change 2006 to 2005 2006 to prev- prev- ious ious year year Earnings per EUR 0.72 -25 % 2.27 3.34 48 % share Earnings kEUR 14,347 -3 % 37,840 53,906 42 % Expenditures kEUR 7,754 17 % 18,441 24,908 35 % (without tax) EBT kEUR 6,593 -19 % 19,399 28,998 49 % Tax kEUR 2,916 -13 % 8,251 12,124 47 % Share of minority kEUR -49 34 % -330 -242 27 % shareholders at the group’s profit Group`s net kEUR 3,727 -24 % 11,478 17,115 49 % profit Cash Flow kEUR 3,833 -18 % 11,499 18,057 57 % Shareholders` kEUR 83,327 22 % 68,430 83,327 22 % Equity Return on Equity % 17 -38 % 23 29 26 % after tax Thomas Krotz (CFO) Phone: +49 711 222989-360 Mail: thomas.krotz@euwax-ag.de (c)DGAP 18.10.2006 ————————————————————————— Language: English Issuer: EUWAX AG Börsenstr. 4 70174 Stuttgart Deutschland Phone: +49 (0)711 222 989 200 Fax: +49 (0)711 222 989 222 E-mail: post@euwax-ag.de WWW: www.euwax.com ISIN: DE0005660104 WKN: 566010 Indices: Listed: Amtlicher Markt in München, Stuttgart; Freiverkehr in Berlin-Bremen, Hamburg, Düsseldorf; Open Market in Frankfurt End of News DGAP News-Service —————————————————————————