VERBIO Vereinigte BioEnergie AG

Earnings Release • Aug 14, 2007

News Details

Ad-hoc | 14 August 2007 08:34

VERBIO Vereinigte BioEnergie AG:Performance in the first half of 2007 unsatisfying

VERBIO Vereinigte BioEnergie AG / Half Year Results

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Zörbig/Leipzig, 14 August 2007
In the first half of 2007, VERBIO generated consolidated revenues of EUR
203.8 million. The operating result before special items was EUR 5.1
million, corresponding to an EBIT margin of 2.5%; the operating result
after special items amounted to EUR 1.1 million (EBIT margin: 0.5%).

Earnings before tax are reported as EUR 0.7 million. The high consolidated
tax expense of EUR 4.1 million in the first half of 2007 was due to the
varying national tax rates of VERBIO’s subsidiaries. This resulted in a tax
increase effect of EUR 4.1 million. Earnings after tax amounted to EUR -3.3
million and earnings per share to EUR -0.05.

During the first six months of the current business year, the Group’s
plants were operating at 77.2% capacity utilization. 174,239 tonnes of
biodiesel and 76,308 tonnes (equivalent to 96,592 m3) of bioethanol were
produced.

Consoldated Key Figures
in EUR million 01.01. - 30.06.2007 01.07. - 31.12.2006*
Sales 203.8 240.8
EBIT before special items 5.1 25.3
EBIT margin before special items 2.5% 10.5%
Special items -4.0 -9.0
EBIT 1.1 16.3
EBIT margin 0.5% 6.8%
Financial result -0.4 -2.0
Earnings before tax 0.7 14.3
Earnings after tax -3.3 7.3
*IFRS consolidated financial statements of the 2nd abbreviated year 2006

Segment development
Total sales in the Group’s Biodiesel business in the first half of 2007
amounted to EUR 133.1 million with a segment result before special items of
EUR 6.2 million, corresponding to an EBIT margin of 4.7%. After special
items, the segment result amounted to EUR 3.8 million (EBIT margin: 2.9%).

The Bioethanol segment reached total sales of EUR 57.5 million and the
segment result before special items was EUR -4.3 million (EBIT margin
-7.5%) in the first half of 2007. Adjusted for special items, the segment
EBIT totalled EUR -5.9 million (EBIT margin: -10.3%).

Sales in the Energy segment reached EUR 12.3 million with a segment result
of EUR 3.0 million (EBIT margin: 24.4%).

Segment Key Figures
in EUR million 01.01. - 30.06.2007 01.07. - 31.12.20061)
Biodiesel
Sales 133.1 147.5
EBIT before special items 6.2 16.7
EBIT margin before special items 4.7% 11.3%
Special items -2.4 -2.6
EBIT 3.8 14.1
EBIT margin 2.9% 9.6%

Bioethanol
Sales 57.5 82.2
EBIT before special items -4.3 6.6
EBIT margin before special items -7.5% 8.0%
Special items -1.6 -6.4
EBIT -5.9 0.2
EBIT margin -10.3% 0.2%

Energy
Sales 12.3 10.6
EBIT 3.0 2.6
EBIT margin 24.4% 24.5%
*)IFRS consolidated financial statements of the 2nd abbreviated year 2006

Outlook
For the fiscal year 2007, the Management Board expects no improvement in
the negative economic and fiscal framework conditions for the sector.

For 2008 the Management Board of VERBIO continues to expect an improvement
in the biofuel sector and remains confident that the long-term growth
prospects in the European biofuel market are intact.

The interim report as of 30 June 2007 will be available on our website
www.verbio.de at noon.

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Information and Explaination of the Issuer to this News:

VERBIO: Performance in the first half of 2007 unsatisfying – cooperation’s
to develop German biofuel market

Zörbig/Leipzig, 14 August 2007
In the first half of year 2007, VERBIO generated consolidated revenues of
EUR 203.8 million. The operating result before special items was EUR 5.1
million, corresponding to an EBIT margin of 2.5%; the operating result
after special items amounted to EUR 1.1 million (EBIT margin: 0.5%).

Earnings before tax are reported as EUR 0.7 million. The high consolidated
tax expense of EUR 4.1 million in the first half of 2007 was due to the
varying national tax rates of VERBIO’s subsidiaries. This resulted in a tax
increase effect of EUR 4.1 million. Earnings after tax amounted to EUR -3.3
million and earnings per share to EUR -0.05.

During the first six months of the current business year, the Group’s
plants were operating at 77.2% capacity utilization. 174,239 tonnes of
biodiesel and 76,308 tonnes (equivalent to 96,592 m3) of bioethanol were
produced.

Consoldated Key Figures
in EUR million 01.01. - 30.06.2007 01.07. - 31.12.2006*
Sales 203.8 240.8
EBIT before special items 5.1 25.3
EBIT margin before special items 2.5% 10.5%
Special items -4.0 -9.0
EBIT 1.1 16.3
EBIT margin 0.5% 6.8%
Financial result -0.4 -2.0
Earnings before tax 0.7 14.3
Earnings after tax -3.3 7.3
*IFRS consolidated financial statements of the 2nd abbreviated year 2006

Segment development
The slight rise in sales in the 2nd quarter of 2007 and increased mineral
oil prices brought some relief to the difficult economic environment in the
Group’s Biodiesel business. Despite increased competition and higher
rapeseed oil prices in the 2nd quarter, the Group was able to post a better
result than in the 1st quarter of 2007.

In total, sales in the first half of 2007 amounted to EUR 133.1 million
with a segment result before special items of EUR 6.2 million,
corresponding to an EBIT margin of 4.7%. After special items, the segment
result amounted to EUR 3.8 million (EBIT margin: 2.9%).

General price level and demand continue to be very unsatisfactory in the
Bioethanol segment. Plant utilisation is correspondingly low and amounted
to around 57% in the 1st half of 2007. Despite a slight increase in
revenues, earnings were below the 1st quarter of 2007.

In the first half of 2007, total sales reached EUR 57.5 million and the
segment result before special items was EUR -4.3 million (EBIT margin
-7.5%). Adjusted for special items, the segment EBIT totalled EUR -5.9
million (EBIT margin: -10.3%).

Sales in the Energy segment reached EUR 12.3 million with a segment result
of EUR 3.0 million (EBIT margin: 24.4%).

Segment Key Figures
in EUR million 01.01. - 30.06.2007 01.07. - 31.12.20061)
Biodiesel
Sales 133.1 147.5
EBIT before special items 6.2 16.7
EBIT margin before special items 4.7% 11.3%
Special items -2.4 -2.6
EBIT 3.8 14.1
EBIT margin 2.9% 9.6%

Bioethanol
Sales 57.5 82.2
EBIT before special items -4.3 6.6
EBIT margin before special items -7.5% 8.0%
Special items -1.6 -6.4
EBIT -5.9 0.2
EBIT margin -10.3% 0.2%

Energy
Sales 12.3 10.6
EBIT 3.0 2.6
EBIT margin 24.4% 24.5%

Other
Sales 0.9 0.5
EBIT 0.2 -0.6
EBIT-margin k.A k.A
*)IFRS consolidated financial statements of the 2nd abbreviated year 2006

Outlook
For the fiscal year 2007, the Management Board expects no improvement in
the negative economic and fiscal framework conditions for the sector.
Although there are signals from politicians that the current regulations
may be revised in favour of a more flexible taxation for biodiesel, or that
the fulfilment of future blending quotas may be brought forward, it is
uncertain to what extent and when such changes may occur.

The biodiesel business therefore continues to be burdened by current tax
legislation and overcapacities in the German market. There are also no
signs that rapeseed oil prices might decrease.

The general price level and demand for bioethanol are still weak. Moreover,
the current high grain prices are placing a heavy burden on the
profitability of ethanol production.

As a first reaction to the current market difficulties, the adverse
legislation situation and the extremely high price rises for grain, VERBIO
will drive down production at its bioethanol plant in Schwedt/Oder as of
September 2007.

Despite these unfavourable conditions, the Management Board of VERBIO
continues to expect an improvement in the biofuel sector in 2008 and
remains confident that the long-term growth prospects in the European
biofuel market are intact.

In order to actively develop the German biofuel market, VERBIO has signed
cooperation agreements with medium-sized mineral oil companies and petrol
station operators to jointly offer products containing up to 10% biodiesel
or bioethanol. In 2007, VERBIO will also provide around EUR 1 million to
support the creation of a nationwide network of E85 petrol stations in
Germany.

The interim report as of 30 June 2007 will be available on our website
www.verbio.de at noon.

Contact
VERBIO Vereinigte BioEnergie AG
Alexandra Mühr
Humboldtstraße 18
D-04105 Leipzig
Phone: +49 (0) 341 30 85 30 85
Fax: +49 (0) 341 30 85 30 99
E-mail: ir@verbio.de
www.verbio.de

Information on VERBIO Vereinigte BioEnergie AG
The VERBIO Group is one of the leading producers and suppliers of biofuels
and also the only industrial-scale producer of biodiesel and bioethanol in
Europe. Nominal capacity currently amounts to around 400,000 tons of
biodiesel and 300,000 tons of bioethanol per year. The company has
developed its own processes and innovative technologies for the production
of biodiesel and bioethanol. It supplies its products directly to European
mineral oil corporations, mineral oil traders, independent fuel stations
and haulage companies. VERBIO AG also markets high-quality pharmaglycerin
for the consumer goods and cosmetic industries (glycerin is a by-product of
biodiesel production). Within the Group, VERBIO AG acts as the management
holding company. The Group’s operating business is run by its subsidiaries:
MUW Mitteldeutsche UmesterungsWerke, NUW Nordbrandenburger
UmesterungsWerke, MBE Mitteldeutsche BioEnergie, NBE Nordbrandenburger
BioEnergie and SBE Swiss BioEnergy.

Important Note
This Press Release contains forward-looking statements, which are based on
assumptions and estimates of the company management of VERBIO Vereinigte
BioEnergie AG. Even though the company management believes that these
assumptions and estimates are correct, the actual future development and
actual future results can deviate substantially from these assumptions and
estimates due to many factors. For example, these factors can include
alteration of the economic situation, legal and regulatory constraints in
Germany and the EU, and changes in the industry. VERBIO assumes no
liability and provides no warranty that future developments and actual
future results will agree with the assumptions and estimates expressed in
this Press Release.

VERBIO Vereinigte BioEnergie AG
Alexandra Mühr
Humboldtstraße 18
D-04105 Leipzig
Phone: +49 (0) 341 30 85 30 85
Fax: +49 (0) 341 30 85 30 99
E-mail: ir@verbio.de
www.verbio.de
DGAP 14.08.2007

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Language: English
Issuer: VERBIO Vereinigte BioEnergie AG
Humboldtstraße 18
04105 Leipzig
Deutschland
Phone: +49 (0)341 30 85 30 90
Fax: +49 (0)341 30 85 30 99
E-mail: pr@verbio.de
Internet: www.verbio.de
ISIN: DE000A0JL9W6
WKN: A0JL9W
Indices:
Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in
Berlin, Stuttgart, Düsseldorf, München

End of News DGAP News-Service

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