RATIONAL AG — Earnings Release 2008

Mar 26, 2009

News Details

Ad-hoc | 26 March 2009 10:12

RATIONAL AG: Fiscal 2008 – global credit crunch puts the brakes on growth

RATIONAL AG / Final Results

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RATIONAL AG: Fiscal 2008 - global credit crunch puts the brakes on growth

Sales of 343.0 million euros 2% over previous year
Securing liquidity takes top priority in 2009
1.00 euro dividend proposed

Landsberg, March 26, 2009. In the last months of 2008, the prevailing
economic situation continued to deteriorate. The international financial
crisis coincided with the global economy going through a cyclical slowdown,
thus triggering a serious economic downturn. There is also considerable
uncertainty about how long the slump will last and how severe it will be.

Unlike recessions in the past that remained isolated to specific
geographical areas, the global crisis in 2008 also had a negative impact on
the business development of RATIONAL. After strong growth in sales and
earnings in 2007, the company clearly missed its growth targets in 2008.

After an 8 percent growth in the first quarter and 11 percent in the
second, the company was initially optimistic that this growth would
continue, as planned, for the rest of 2008. However, in the third quarter,
and even more so in the fourth, the first six months' gains were
extensively eroded. Sales revenues of 343.0 million euros were only
marginally above the previous year's figure of 336.6 million euros.

Earnings before interest and taxes (EBIT) fell by 10 percent to 83.1
million euros (previous year: 92.6 million euros). At 61.7 million euros,
group earnings were slightly up on the previous year (61.2 million euros)
and achieved an excellent return on sales of 18 percent.

Strong negative impact of currency fluctuations

Another negative influence in 2008, in addition to the discernable
reluctance to purchase in virtually all markets, was the exchange rate
fluctuation. The decline in the value of the pound sterling, which over the
past fiscal year fell some 25 percent, had a particularly noticeable
effect. Currency-adjusted sales for 2008 amounted to 349.6 million euros,
which corresponds to a growth of 4 percent.

Markets of the future on course for success

RATIONAL notched up clear gains in sales revenues in Asia (+22 percent) and
Latin America (+43 percent) - the markets of the future - and further
expanded its very good market position. The developments in Japan, China,
South Korea and Brazil were particularly positive.

Cash flow from operations up by 16 percent

In 2008, cash flow from operations was again up by 16 percent to 71.0
million euros (previous year: 61.1 million euros). The growth was due not
only to profit trends and the significant reduction in trade accounts
receivable, but also to lower tax payments resulting from the corporate tax
reforms in Germany.

Securing liquidity takes top priority in 2009
1.00 euro dividend proposed

In view of the unforeseeable global economic turbulence and its possible
effects on the real economy, liquidity protection must be given top
priority. The main task now is to protect the independence of the company
from the crisis-ridden financial market, in order to have maximum room for
manoeuvre to actively exploit all future opportunities. For this reason,
the Executive Board and Supervisory Board will be proposing a reduced
dividend of 1.00 euros per share (previous year: 4.50 euros) at the General
Meeting of Shareholders and will otherwise carry forward the remaining
balance sheet profit to the new accounting period.

Heading into 2009 with caution

In 2009, the international economy finds itself in the most serious
recession since the Second World War. No reliable forecasts are possible in
the present circumstances. RATIONAL, therefore has flexible plans for 2009,
with different scenarios in respect of the possible sales figures. At
present, it does not seem likely that a business development at last year's
level will be achievable.

Technology leadership, maximum brand awareness, 64 percent equity ratio and
independence from the financial market, nonetheless, open up good
opportunities for the company in 2009 of emerging from the crisis stronger.

Contact:

RATIONAL Aktiengesellschaft
Dr. Günter Blaschke
Tel. +49 (0)8191 327-364
Fax +49 (0)8191 327-272
e-Mail: g.blaschke@rational-online.com
www.rational-online.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 1,000 people, of which more than 600 are in Germany.
Since the IPO in 2000 RATIONAL was floated in the Prime Standard on the
German stock market and is currently listed in the MDAX.

The company's principal objective is to offer customers maximum benefit.
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.

                                 2008              2007   Change in %

Sales (million of euros) 343.0 336.6 +2
EBIT (million of euros) 83.1 92.6 -10
EBT (million of euros) 83.5 93.5 -11
EPS (in euros) 5.42 5.38 +1

26.03.2009 Financial News transmitted by DGAP

Language: English
Issuer: RATIONAL AG
Iglinger Straße 62
86899 Landsberg a. Lech
Deutschland
Phone: 0049 8191 327 364
Fax: 0049 8191 327 272
E-mail: i.klinckmann@rational-online.de
Internet: www.rational-online.com
ISIN: DE0007010803
WKN: 701080
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Stuttgart

End of News DGAP News-Service

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