RATIONAL AG — Earnings Release 2005

Nov 8, 2005

News Details

Ad-hoc | 8 November 2005 07:50

Rational AG: Earnings may outstrip forecasts

Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— * Sales revenues: + 10 percent * Earnings: + 22 percent Landsberg, November 8, 2005. In the first nine months of 2005 RATIONAL AG rose sales revenues with 10 percent up to 172.1 million euros (previous year: 156.6 million euros). The sales revenues for the 3rd quarter of 2005 are 3 percent up on last year’s figure, at 60.4 million euros (previous year: 58.9 million euros). This is a very special result as last year’s exceptionally high revenues have been even outperformed. Influenced by the successful market launch of the new SelfCooking Center(R) together with the building-up of stocks at independent sales partners, last year’s sales revenues grew by extraordinary 31 percent. SelfCooking Center(R) becomes new global standard Despite the continuingly weak economic situation, sales in Germany were increased disproportional by 14 percent in the first 9 months of 2005. RATIONAL AG is thus continuing to achieve a sustained improvement in its competitive situation in a fiercely contested internal market. The international subsidiaries, though, have likewise been able to push ahead, with a disproportionately high sales growth of 20 percent. Only the partner business in Europe remains at last year’s level, owing to the special circumstances in 2004. Record earnings – EBIT up with 22 percent With an EBIT (earnings before interest and taxes) of 42.9 million euros in the first nine months of 2005, last year’s figure (35.2 million euros) has been significantly exceeded by 22 percent. The EBIT margin rose from 22 percent up to 25 percent. Because of the special effects stemming from situation in sales and earnings during 2004, the EBIT for the 3rd quarter of 2005, at 16.7 million euros, stands just 2 percent higher than the figure for last year (16.5 million euros). At the same time the EBIT margin of 28 percent represents a record level. This reflects the exceptionally high earning power and stability of RATIONAL AG. The world’s first VarioCooking Center(R) Alongside the SelfCooking Center(R), the French subsidiary FRIMA has developed a completely new and revolutionary complementary product, which was successfully launched in selected European test markets during May 2005. While the SelfCooking Center(R) cooks items for which the heat transmission is ideally performed by means of rapidly flowing hot gases, the new VarioCooking Center(R) caters for the remaining output of a professional kitchen, namely dishes that are prepared in liquid or with direct contact heat. These include milk-based recipes, pasta, blancmange or goulash. The SelfCooking Center(R) already replaces some 40 to 50 percent of all traditional cooking appliances. The VarioCooking Center(R) makes the remainder superfluous. This means, a combination of the two units creates a fully- equipped kitchen. Results may outstrip forecasts Business growth both in the first 9 months of 2005 and in the 3rd quarter of 2005 completely met the expectations of the company. On the basis of the sales revenue previously achieved, management is confident to achieve the planned sales growth for the full year of 10 percent, to 244 million euros (last year’s figure: 222 million euros). Given how results have developed to date, the company might even exceed by far the originally expected EBIT growth figure of 12 percent to 60 million euros (last year’s figure: 54 million euros). Rational AG Iglinger Straße 62 86899 Landsberg a. Lech Deutschland ISIN: DE0007010803 (SDAX) WKN: 701080 Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, München und Stuttgart End of ad hoc announcement (c)DGAP 08.11.2005 Issuer’s information/explanatory remarks concerning this ad hoc announcement: Contact: RATIONAL Aktiengesellschaft, Dr. Günter Blaschke Phone: 0049-(0)8191 327-420, Fax: 0049-(0)8191 327-272 e-Mail:g.blaschke@rational-online.de http://www.rational-ag.com Information for editors: RATIONAL is the world market and technology leader for the thermal preparation of food in professional kitchens. The company, founded in 1973, employs more than 800 people, 500 of whom are in Germany. RATIONAL was floated on the German stock market in 2000 and is currently represented in the SDAX. Since the IPO in 2000, the price of RATIONAL shares has nearly quadrupled, making them one of the leading German shares and one of the jewels in the SDAX crown. The company’s principal objective is to offer customers maximum benefit at all times. Internally RATIONAL is committed to the principle of sustainability, expressed in its policies on environmental protection, leadership and social responsibility. Numerous international awards bear witness year on year to the high level of RATIONAL’s work. millions of euros Q3 2005 Q3 2004 9M/05 9M/04 Sales 60.4 58.9 172.1 156.6 EBIT 16.7 16.5 42.9 35.2 Earnings 10.4 10.4 26.5 21.6 EPS (in euros) 0.91 0.92 2.33 1.90 End of message (c)DGAP