Homag Group AG — Earnings Release 2007

Aug 15, 2007

News Details

Corporate | 15 August 2007 07:49

HOMAG Group AG’s good order situation continues

Homag Group AG / Interim Report/Half Year Results

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.

---

• Strong development in incoming orders persists in second quarter of 2007
• Further improvement in key earnings indicators during first half of year
• Some 190 new jobs since the beginning of the year

Schopfloch, August 15, 2007. After an above-average first quarter 2007, the
positive business development of HOMAG Group AG continued from April to
June – albeit as expected at a slower pace. For the second quarter of 2007,
the revenue of the leading global supplier for plant and machinery for the
woodworking industry amounted to EUR 193 million. Thus, despite the
labor-intensive preparation for Ligna+, the industry’s largest trade fair
in the world, held in Hanover in May, revenues exceeded the already
successful prior-year period (prior year: EUR 184 million). The company’s
exports amounted to around 81%; its shares have been listed on the stock
exchange since July 13, 2007.

The strong development of incoming orders continued, 'exceeding
expectations', according to the CEO Dr. Joachim Brenk. Order intake rose by
40% to EUR 213 million in the second quarter of 2007 (prior year: EUR 152
million). The order backlog rose accordingly by 33%, reaching EUR 334
million as of June 30, 2007 (prior year: EUR 252 million). A comparison
with the order backlog as of December 31, 2006 even reveals an increase of
approximately 75%.

The key earnings indicators for the second quarter 'fully met'
expectations, says Andreas Herrmann, CFO. 'When comparing to the prior-year
period, expenses for Ligna+ of approximately EUR 5 million must be taken
into account, as the trade fair only takes place every two years, as well
as expenses of about EUR 1 million attributable to our going public,' Mr.
Hermann explained. EBITDA before IPO costs and employee participation
expenses thus came to EUR 17.2 million in the second quarter of 2007 (prior
year: EUR 21.8 million), while EBT before IPO costs and employee
participation expenses came to EUR 9.7 million (prior year: EUR 13.8
million).

Taking into account the trade fair costs, each of the key earnings
indicators exceeded in a year-on-year comparison.

The Group had some 4,890 employees as of June 30, 2007, compared to 4,701
at year-end 2006 and 4,542 as of June 30, 2006. This means that since the
beginning of the year, about 190 new jobs were created – while the ratio of
personnel expenses to sales dropped.

H1 2007
In the first six months of 2007, all key indicators of the HOMAG Group were
on the rise, increasing profitability significantly. Revenue increased by
14% to EUR 386 million (prior year: EUR 340 million) and incoming orders
increased by 20% to EUR 447 million (prior year: EUR 374 million). The
Group’s EBITDA before IPO costs and employee participation expenses
improved in the first half of 2007 by 30% to EUR 44.6 million (prior year:
EUR 34.2 million) while EBT before IPO costs and employee participation
expenses climbed almost 56% to EUR 29.0 million (prior year: EUR 18.6
million). Earnings per share (before minority interests and IPO costs)
increased well above-trend to EUR 0.99 between January and June 2007 (prior
year: EUR 0.59).

Outlook
After a successful first half of the year, HOMAG Group AG intends to
continue growing in the second half of 2007. Although Joachim Brenk expects
revenue growth to decelerate compared to the first six months of the year,
he remains optimistic: 'In light of our large order backlog at mid-year, we
are confident that we will be able to achieve a rise in revenue for the
full fiscal year 2007 exceeding the industry growth forecast of 5% to 6%
which will allow us to expand our leadership position on the global
market.' The management board also anticipates another increase in key
earnings indicators across the board (before IPO costs).

Background information
HOMAG Group AG’s market position is excellent and its portfolio as a
comprehensive system supplier and technology partner makes it unique. The
Group employs around 4,890 employees in 21 group-owned sales and service
companies; worldwide it has approximately 60 exclusive sales partners. It
is 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. It offers its customers various
services in related areas for production machines and equipment.

Disclaimer
This interim report contains certain future-oriented statements.
Future-oriented statements include all statements which do not relate to
historical facts and events and contain futureoriented expressions such as
'believe', 'estimate', 'assume', 'expect', 'forecast', 'intend', 'could' or
'should' or expressions of a similar kind. Such future-oriented statements
are subject to risks and uncertainties since they relate to future events
and are based on the company’s current assumptions, which may not in the
future take place or be fulfilled as expected. The company points out that
such future-oriented statements provide no guarantee for the future and
that actual events including the financial position and profitability of
the HOMAG Group and developments in the economic and regulatory
fundamentals may vary substantially (particularly on the down side) from
those explicitly or implicitly assumed or described in these statements.
Even if the actual results for the HOMAG Group, including its financial
position and profitability and the economic and regulatory fundamentals,
should be in accordance with such future-oriented statements in this
interim report, no guarantee can be given that this will continue to be the
case in the future.
DGAP 15.08.2007

---

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:
Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in
Berlin, Düsseldorf, Hamburg, München, Stuttgart

End of News DGAP News-Service

---