Burkhalter : 2018 half-year results as expected

2018 half-year results as expected

As forecast on publication of the 2017 results, the Burkhalter Group closed the first half of 2018 with reduced sales and earnings. The situation on the market has not changed since the last figures were published, with the building industry facing both full capacity utilisation and pressure on prices. Since experience has shown that earnings are stronger in the second half of a year than the first, we believe that our target EBIT margin of some 6% can be achieved.

Zurich, 17 September 2018

The interim balance sheet as at 30 June 2018 confirms the management's forecasts: the operating result

(EBIT) fell by 33.4% to CHF 12.3 million (previous year CHF 18.5 million), while Group profit stands at

CHF 9.6 million (previous year CHF 14.8 million or -35.4%). Sales dropped to CHF 239.2 million, down 3.4% on the previous year (CHF 247.6 million). Earnings per share decreased by 35.2% to CHF 1.60 (previous year CHF 2.47).

These results are not solely attributable to the absence of income from Alpiq Burkhalter Technik AG but also, and particularly, to the price war raging in the building industry. Although there is a lack of skilled workers, the sector is plagued by a fear of insufficiently high capacity utilisation. This anxiety is entirely unfounded as the building industry is booming; nevertheless, it is still squeezing prices. We are responding to this contradictory situation by concentrating on high-quality orders, including some with very fast turnarounds. In this market environment, our target EBIT margin of some 6% is well above the industry average and must be regarded as solid.

Growth through further acquisitions

The Burkhalter Group has continuously expanded its network in Switzerland since its IPO in June 2008. We did not make any acquisitions in the first half of 2018. With effect from 2 July 2018, we purchased Fliri & Conrad Electro SA in Santa Maria in Val Müstair. The company mainly provides traditional electrical engineering services and has been running a successful operation in Val Müstair since 1990. A decisive factor in purchasing the company was its proximity to Electra Buin SA in Scuol, giving customers in Lower Engadine and

Val Müstair a choice between two locations.

As of 30 June 2018, the Burkhalter Group comprised 44 independent electrical engineering companies in 93 locations in Switzerland. It will remain part of the Burkhalter Group's strategy in future to grow through

selectively acquiring other electrical engineering companies. However, as acquisitions are only made selectively and at fair prices, it is difficult to say in advance when the next acquisition will take place.

Outlook

As a result of the sustained price pressure in the industry and without any income from Alpiq Burkhalter

Technik AG, the Burkhalter Group's management currently anticipates that, although earnings per share will

decline in the 2018 financial year compared with the 2017 financial year, the EBIT margin target of around 6% can still be met.

Key figures

In CHF million

Operating result (EBIT) 18.5

Group profit 14.8

Group sales 247.6

CHF

Earnings per share 2.47

30.06.2017

30.06.2018	in %
12.3	-33.4
9.6	-35.4
239.2	-3.4
1.60	-35.2

The 2018 interim report can be downloaded from the Burkhalter website athttp://www.burkhalter.ch/en/investor-relations/reports

Telephone conference: Monday, 17 September 2018, from 09h15

The Burkhalter Group will discuss its 2018 consolidated interim financial statements during a telephone conference today.

Please call in five minutes before the start of the conference (at 09h15) on [phone] (Europe)

[phone] (UK) [phone] (USA)

The moderator for the telephone conference will connect you with the Chairman of the Board of Directors, Mr Gaudenz F. Domenig, the CEO and the delegate of the Board of Directors, Mr Marco Syfrig and the CFO, Mr. Zeno Böhm.

Further information: Burkhalter Holding Ltd

Elisabeth Dorigatti, Head of Communications and Investor Relations Phone: [phone]

E-mail:[e-mail]

The Burkhalter Group is the leading provider of electrical engineering services to the construction sector and currently has 44 operating companies at 93 locations in Switzerland. On 31 December 2017 it posted an operating result (EBIT) of CHF 37.9 million, Group profit of CHF 30.1 million and sales of CHF 514.7 million, and employed 3,011 people (FTEs, of which 680 apprentices). The Group is headquartered in Zurich.

Burkhalter Holding Ltd is listed on the SIX Swiss Exchange (ticker symbol BRKN, security number 21225580,

ISIN CH0212255803).

The Burkhalter Group's range of services commences at the site where power is required. We concentrate on providing electrical engineering services in and on buildings (including infrastructure facilities) and offer a full range of services that confirm the Swiss reputation for quality and precision: installations, switchboards, services, telematics, automation and security. In other words: 360° Swiss electrotechnics.

Information about the Burkhalter Group:www.burkhalter.ch