ATB Austria Antriebstechnik AG: Quarterly Result Q3 2013

interim report

Vienna (pta020/25.10.2013/14:20 UTC+2) - Sales revenue stable at TEUR 254,796
- New orders up by 8.1%
- Significant improvement in key earnings figures (EBT +45.9%)
- Equity ratio stable at 33.7%
- Capital expenditure increased once again by + 50.8%

Vienna, 23 October 2013. In the first half of the current year, ATB Austria Antriebstechnik AG, which is listed on the Vienna Stock Exchange, still had to contend with a weak economy and stagnating sales. The third quarter, however, showed a significant improvement in almost all earnings figures compared to the comparative quarter in 2012. Overall, it was therefore possible to once again increase new orders in the first nine months of the current year by 8.1%, and to also improve EBITDA by 9.1%. Capital expenditure of the ATB Group is 50.8% more than in the previous year, which reflects the continuing expansion of the Group and the confidence of the main shareholder.

New orders and order backlog
The ATB Group was able to increase new orders year-on-year by 8.1% to TEUR 269,624 (Jan. - Sept. 2012: TEUR 249,525). At the 30 September 2013 reporting date, the order backlog at TEUR 116,079 was barely below the 2012 amount (TEUR 118,920) by 2.4%. The ATB Group is continuously investing in ongoing improvements to customer service, which has resulted in shorter lead times and thus a lower order backlog at the end of the third quarter while new orders have increased.

Sales revenue and profit
In the first nine months of the current reporting period, the ATB Group generated sales revenue of TEUR 254,796, which equates to a slight reduction of 1.7% (Jan. - Sept. 2012: TEUR 259,281). Although the cumulative sales revenue from January to September is also below the prior-year comparative, a significant upward trend has been noticeable in the last three months, with sales revenue in the months of July to September 2013 always exceeding prior-year comparatives.

Due to the good performance in the last three months, the Group has been able to increase EBITDA in the first nine months of the current financial year by 9.1% compared to the prior-year comparative period. The increase in EBITDA in the third quarter of 2013 compared to the 2012 comparative period amounted to a remarkable 82.6% - a further indication of the Group's upward trend. The improved result over the first three quarters is also attributable to a 1.3% reduction in the material usage ratio, which again is attributable to optimum usage and purchasing conditions, as well as to a shift from material-intensive standard production to project business. A one-off payment by a Chinese partner company for the transfer of technological know-how also contributed to the improved EBITDA. The ATB Group intends to continue increasing sales in China together with the local company and its own sales office ATB Shanghai.

In view of the increased EBITDA and slightly lower depreciation, amortisation and write-downs, EBIT improved in the first nine months of the reporting period by 18.4% to TEUR 16,530. EBIT margin therefore rose to 6.5%. Earnings before taxes (EBT), after an increase of 45.9%, were TEUR 11,617. At TEUR 9,485, the period result after the first nine months of 2013 is 36.3% lower than the result for the 2012 comparative period. This reduction is attributable to the result from discontinued operations in 2012 which amounted to TEUR 8,427, for which there is no equivalent amount in 2013.

Net assets and financial position
Total assets of TEUR 312,035 at the 30 September 2013 reporting date were TEUR 23,155 higher than the comparative amount at the end of the previous year (31 December 2012: TEUR 288,880). The equity ratio remained stable at 33.7% (31 December 2012: 33.7%).

Capital expenditure
The ATB Group once again increased its investment activities in order to safeguard and further improve the Group's positive performance over the long term. Capital expenditure in the period from January to September 2013 totalled TEUR 13,830 and was thus 50.8% above the prior-year comparative (Jan. - Sept. 2012: TEUR 9,171). Total capital expenditure therefore equated to 5.4% of sales revenue.

Employees
At the 30 September 2013 reporting date, the ATB Group had a total of 3,581 employees. This equates to a minimal rise of 0.1% on the prior-year position (3,577 employees as at 30 September 2012).

Outlook for 2013
After a difficult first half of the year, the third quarter has for the first time again delivered results that are consistently satisfactory. The ATB Group was able to significantly increase sales revenue and growth in the months of July to September 2013 and could thus lay the foundation for further positive performance. IMS Research, a leading provider of market analysis for the electrical industry, is projecting high growth rates for the global low-voltage motor market until 2017 despite continued subdued economic forecasts.*

The reason for this are, they say, the energy efficiency requirements which are constantly changing; according to IMS, these will ensure stable demand and organic growth, which will particularly affect the eurozone, which is tightening slowly, and the fast-growing Chinese market - two of the ATB Group's important markets.

The management of ATB is confident that the increase of over 8% in new orders will result in additional sales revenue in the fourth quarter. Especially in the area of project motors, which are characterised by long lead times from order to product delivery, the good order position will continue to bear fruit in the coming quarter. With the measures that have been implemented, such as the ongoing optimisation of production, innovative product development, use of purchasing synergies and global marketing, the ATB Group continues to be in a good position to hold its ground as a key player in the market.

* Source: IMS Research, The World Market for Low Voltage Motors by Mark Meza, June 2013

ATB Austria Antriebstechnik AG - selected key figures

in TEUR	01-09/2013	01-09/2012	% Change
Sales revenue	254,796	259,281	-1.7%
EBITDA	23,244	21,310	9.1%
Operating result (EBIT)	16,530	13,956	18.4%
EBIT margin	6.5%	5.4%	20.5%
Earnings before taxes (EBT)	11,617	7,965	45.9%
Result for the period	9,485	14,884	-36.3%
New orders	269,624	249,525	8.1%
Order backlog (as at 30 September)	116,079	118,920	-2.4%
Capital expenditure	13,830	9,171	50.8%
Employees as at 30 September 2013	3,581	3,577	0.1%

Vienna, 23 October 2013

Note
This disclosure includes statements about possible future events. These statements have been prepared based on information currently available. They reflect the Managing Board's current assessment of future events and should not be taken as guarantees of future performance; they include risks and uncertainties which are difficult to predict. A wide variety of reasons could cause actual results or circumstances to differ fundamentally from the assumptions made in the statements.

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