SW Umwelttechnik Stoiser & Wolschner : Announcing our annual result 2013

09.04.14

SW Umwelttechnik: Announcing our annual result 2013

Category: Company results, Press releases

• Group turnover remains at a constant level of € 50.7 m (according to IFRS 5)

• EBIT has been increased to € 2.3 m

• Portfolio reassessment led to a disposal of our project engineering segment

The listed family company SW Umwelttechnik achieved a turnover of € 50.7 m in 2013 (2012: € 50.5 m) and an EBIT of € 2.3 m (2012: € 2.1 m). The development of our turnover resulted from an increase in Hungary and Romania and in contrast a decrease in Austria. The economic development of the project engineering segment was marked by a challenging market environment already in the previous years. For this reason we decided in November 2013 that we would dispose of this business segment in the course of a further portfolio reassessment and it is thus displayed in our balance sheet according to the IFRS 5 regulation "issued business segment".

Turnover (according to IFRS 5) in the fiscal year 2013 amounts to € 50.7 m and is thus at a similar level as in the previous year. We were able to increase our turnover in Hungary by 20 % to € 22.7 m and the turnover share thus increased from 37 % to 45 %. Austria's share of turnover decreased from 33 % in the previous year to 29 % in 2013 whereas Romania's share now amounts to 21 % (2012: 19 %).

When considering turnover according to business segments, industry and trade construction - which is part of the infrastructure segment - decreased in all countries we work in. The decrease of construction in the first half year from an already very low level was especially noticeable in Hungary (residential construction denoted a historical low) - however, this had already improved by the second half year. Competition has increased in Austria due to the declining market. SW Umwelttechnik successfully reacted to this development by adjusting fixed costs and increasing sales activities. A continuous upward trend in the completion of EU subsidised projects could be noted in Romania - we were also able to slightly increase our turnover here.

Earnings

We were able to improve our EBIT compared to the previous year and it now amounts to € 2.3 m (2012: € 2.1 m) - despite the fully indicated restructuring costs of SW Umwelttechnik Österreich GmbH. Our EBITDA was kept at the same level as in 2012 (€ 5.9 m) and still amounts to € 5.9 m - same as our EBITDA margin of 12 %. FX rates have significantly worsened our financial result, which results in a loss on ordinary activities of € -0.5 m. The net income in the amount of EUR -1.8 million (2012: € 0.1 m) is influenced by the result of the discontinued operations of € -1.2 m (2012: € -0.6 m).

Financial statement

Our balance sheet total only slightly decreased to € 100.0 m (2012: € 100.9 m). This was mainly affected by the item "investment property". This will, however, no longer affect our balance sheet from 2014 onwards after the sale of the OMS group was carried out on April 2nd 2014.

Fixed assets have decreased in the balance sheet depiction, according to IFRS 5, due to the investment property area and now amount to € 62.0 m (2012: € 65.9 m).

Equity capital decreased due to the above mentioned circumstance and now amounts to € 4.4 m (2012: € 7.3 m) and subsequently the equity ratio also decreased from 7.3 % in 2012 to 4.4 % in 2013. Without considering non-cash affecting book values from re-evaluation effects of tangible assets (at the price of 31st December 2007), our equity capital would amount to € 15.1 m and our equity ratio to 13.7 %.

Financial liabilities were also significantly reduced to € 70.5 m (2012: € 75.8 m).

Investments

Our on-going investments can be kept at a very low level due to the implemented capacities from investments made in the past into new plants in Romania and Hungary. Normal investments of € 1.7 m were made in 2013, which include maintenance as well as capacity and productivity improvements and product innovations. In addition, we invested € 0.4 m in the "issued business segment". These low maintenance investments reflect the longevity of our plants.

Employees

In 2013 we employed an average of 381 employees (2012: 406 employees) - excluding employees from the issued business segment.

Outlook

Our expectations for the development of the market remain highly varied in our core markets.

In Austria, we expect to be able to keep our turnover at a similar level as in 2013 despite the continued highly competitive market environment - mainly due to our product innovations and increased market presence, but also because we are able to import from our more cost-effective production sites in Hungary.

In Hungary and Romania we foresee an increase in our turnover - the second half year 2013 also showed a noticeable recovery of EU subsidised infrastructure projects in particular. We also expect a slight recovery of all areas in Romania; market research institutes forecast an increase in construction especially for civil engineering projects. This should have a positive effect on our company. The situation in Hungary will continue to improve in the first half year 2014 due to the positive impulses provided by the elections; the second half year will likely bring about a slight slow-down of the market upturn.

SW Umwelttechnik has adapted to the current market situation and aims to increase earnings in 2014.

Fact Box

In € m	2013	2012 [1]
Turnover	50.7	50.5
EBIT	2.3	2.1
EBITDA	5.9	5.9
Financial result	- 2.8	- 1.4
P/LoA	- 0.5	0.7
Annual result (incl.issued business segment)	- 1.8	0.1

Previous year's values were adjusted according to IFRS 5

SW Umwelttechnik, a family company founded in 1910 and listed on the Viennese stock exchange since 1997, stands for sustainable management in Eastern and South-eastern Europe.  With our innovative technology to protect the environment we provide an important contribution to the development of necessary infrastructure in Central and South-eastern Europe.

For further enquiries:

Dr. Bernd Wolschner

Managing Director

Tel:       [phone]

Fax:     [phone]

Michaela Werbitsch (MMag.)

Investor Relations

Tel:       [phone]

Fax:     [phone]

E-Mail: [e-mail]

Website:          www.sw-umwelttechnik.com