Homag Group AG — Earnings Release 2007

Nov 15, 2007

News Details

Corporate | 15 November 2007 01:09

HOMAG Group AG on Course for a Record Year

Homag Group AG / Quarter Results/Forecast

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

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•Clear growth across all key performance indicators in Q3 2007
•Significant improvement in profitability in the first nine months
•Targets for 2007 are expected to exceed

Schopfloch, November 15, 2007. The positive trend at HOMAG Group AG has
continued unabated in the third quarter of the current fiscal year and the
Company is on course to complete a record year in 2007. The months from
July to September 2007 have seen an extremely high level of capacity
utilization overall, coupled with particularly high growth in the timber
frame house construction segment and sales of large-scale plants. In the
same period, the sales revenue of the global leader for plant and machinery
for the woodworking industry rose by 12 percent on the comparable
prior-year period, reaching EUR 221 million (prior year: EUR 197 million).

The order intake of the SDAX-listed company increased by 27 percent to EUR
158 million (prior year: EUR 125 million), with an order backlog as of
September 30, 2007 of EUR 321 million – up 50 percent on the prior-year
level of EUR 214 million. According to the spokesman of the management
board, Dr. Joachim Brenk, the HOMAG Group recorded a high level of demand
across all sales markets worldwide: 'We were able to raise our order intake
considerably in all regions, with German and western European markets
showing the greatest momentum.' The global player states that it has not
felt any effects to date from the US real estate and financial crisis on
its operating business, and it does not, at present, 'expect any serious
consequences from the crisis.'

In the third quarter, the HOMAG Group generated a clear increase in
earnings, with key earnings indicators outpacing sales growth. The
Company’s CFO, Andreas Hermann, attributes this to the continued positive
development of business operations and 'the overall improvement in the
ratio of personnel expenses to total operating performance.'
Indeed, EBITDA before IPO expenses and employee participation expenses
increased by 17 percent to EUR 29.6 million between July and September
(prior year: EUR 25.3 million), while EBT before IPO expenses and employee
participation expenses rose 29 percent to EUR 20.9 million (prior year: EUR
16.2 million).

Owing to the above-target growth, the Group’s headcount also increased
further, although the ratio of personnel expenses to total operating
performance fell as mentioned before. Compared to the end of the third
quarter of 2006, the headcount as of September 30, 2007 increased by more
than 400 reaching 5,056 employees (prior year: 4,648 employees) Some 270 of
these new jobs were created at the German production facilities. The HOMAG
Group continues to focus on domestic production facilities as can be seen
from the capital expenditures of about EUR 3 million approved in October
for the extension of the production areas at two German subsidiaries in
response to the good order situation.

First to third quarters of 2007
In the first nine months of 2007, the Group’s sales revenue rose 13 percent
to EUR 607 million (prior year: EUR 537 million). Order intake was up 21
percent to EUR 605 million (prior year: EUR 499 million). Earnings figures
also showed an above-trend development during the same period: EBITDA
before IPO costs and employee participation expenses thus increased by 25
percent to EUR 74.1 (prior year: EUR 59.5 million), while EBT before IPO
expenses and employee participation expenses rose 43 percent to EUR 49.8
million (prior year: EUR 34.8 million). Earnings per share improved from
EUR 0.97 (or from EUR 1.19 on the basis of continuing operations) to EUR
1.38, or to EUR 1.58 adjusted for the non-recurring IPO expenses.

Outlook
The spokesman of the management board, Mr. Brenk, anticipates, 'a strong
result in 2007 for the HOMAG Group, in which all our key performance
indicators will exceed the prior-year level. Indeed, the management board
forecasts a rise in sales revenue of about ten percent and intends to raise
earnings even more than that. We expect to exceed our targets for the
current fiscal year. Dr. Joachim Brenk: 'If the good development of the
fourth quarter of 2007 continues, EBITDA before IPO expenses and employee
participation expenses could reach the EUR 100 million mark (prior year:
EUR 85 million) for the first time in the Company’s history. Based on our
well-filled order books, our capacity utilization will also be excellent in
the first quarter of 2008 and we therefore expect a favorable start to the
coming year.'

Background information
With its 14 production companies worldwide, 21 group-owned sales and
service companies and approximately 60 exclusive sales partners, HOMAG
Group AG’s market position is excellent and its portfolio as a
comprehensive system supplier and technology partner makes it unique.
Backed by a workforce of more than 5,000 employees, the Company sees itself
as the leading global manufacturer for plant and machinery for the
woodworking industry for the production of furniture and construction
elements as well as prefabricated houses. The Group also offers its
customers a wide range of services in related areas for production machines
and equipment. HOMAG Group AG shares have been trading on the Prime
Standard of the Frankfurt Stock Exchange since July 13, 2007 and were
listed on the SDAX of the German Stock Exchange on October 2007.

Disclaimers
This press release contains certain future-oriented statements.
Future-oriented statements are all those statements that do not pertain to
historical facts and events or expressions pertaining to the future such as
'believes', 'estimates', 'assumes', 'forecasts', 'intend', 'may', 'will',
'should' or similar expressions. Such future-oriented statements are
subject to risks and uncertainty since they relate to future events and are
based on current assumptions of the Company, which may not occur in the
future or may not occur in the anticipated form. The Company points out
that such future-oriented statements do not guarantee the future; actual
results including the financial position and the profitability of the HOMAG
Group as well as the development of economic and regulatory framework
conditions may deviate significantly (and prove unfavorable) from what is
expressly or implicitly assumed or described in these statements. Even if
the actual results of the HOMAG Group including the financial position and
profitability as well as the economic and regulatory framework conditions
should coincide with the future-oriented statements in this interim report,
it cannot be guaranteed that the same will hold true in the future.

HOMAG Group AG
Investor Relations
Simone Mueller
Phone: +49 7443 13-2034
simone.mueller@homag-group.com
www.homag-group.com

15.11.2007 Financial News transmitted by DGAP

Language: English
Issuer: Homag Group AG
Homagstr. 3-5
72296 Schopfloch
Deutschland
Phone: +49 (0)7443 / 13 - 0
Fax: +49 (0)7443 / 13 - 2300
E-mail: info@homag-group.de
Internet: www.homag-group.de
ISIN: DE0005297204
WKN: 529720
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart

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