Elma Electronic AG : Uncertain market environment impacts revenue

Media release

Interim report at September 30, 2012

Uncertain market environment impacts revenue - Elma expands cooperation.

Wetzikon, October 12, 2012 - The Elma Group recorded a decline in revenue and order income in the financial year 2012 so far. In the first nine months Elma achieved a total revenue of CHF 83.3 million, representing a year-on-year decrease of 7.5%. Adjusted for currency translation effects, revenue was down 11.0%. Order income of CHF 83.3 million declined by
4.2% compared to the previous year. Adjusted for currency translation effects, it fell by 7.8%.
All three regions reported lower sales. Revenue in the Americas region decreased in the first nine months by 4.7% (adjusted for currency translation effects: -11.1%). The Europe region achieved a sales drop of
8.9% (adjusted for currency translation effects: -8.7%). In the Asia region, a decline of 19.6% was reported (adjusted for currency translation effects: -25.0%). Order income also fell in all three regions. The Americas region was down by 2.9% (adjusted for currency translation effects: -4.0%), in Europe order income declined by 7.7% (adjusted for currency translation effects: -7.4%) and in Asia it decreased by
31.5% (adjusted for currency translation effects: -36.1%). The economical environment continues to be affected by reluctant order placements by the customers and significant cuts in national budgets.
Elma Group managed, however, to enter into important partnerships and thus broaden its market position. In the Rotary Switches business a cooperation with the company APEM SAS, a leading worldwide manufacturer of man-machine interfaces located in France, has been completed for the UK market. It sets the course to advance this high-margin business in the European market with significant potential. Furthermore, with ADLINK Technology, a leading provider of embedded computing products headquartered in Taiwan, a strong system integration partner for industrial computers and interface cards was won.
Contact persons:
Elma Electronic AG Hofstrasse 93
8620 Wetzikon
Stephan Bürgin Edwin Wild
CEO Elma Group CFO Elma Group
Tel. [phone] Tel. [phone] [e-mail]
Elma Electronic is a global company that designs and manufactures solutions in electronics packaging. The company provides standard to fully customized components such as modular enclosures, cabinets and backplanes up to complete system integration. Elma also manufactures precision rotary switches. The company offers a fast, flexible response to customer needs and extensive practical knowledge in tailoring solutions to specific applications.
Visit our Website: www.elma.com

Disclaimer

This communication contains statements that constitute "forward-looking statements". In this communication, such forward-looking statements include, without limitation, statements relating to our financial condition, results of operations and business and certain of our strategic plans and objectives. Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors which are beyond Elma's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators and other risk factors detailed in Elma's past and future filings and reports and in past and future filings, press releases, reports and other information posted on Elma Group companies' websites. Readers are cautioned not to put undue reliance on forward-looking statements, which speak only of the date of this communication. Elma disclaims any intention or obligation to update and revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This Media Release is published in German and in English. Should the English translation differ from the German original, the German version is binding.