DGAP-News: technotrans AG / Key word(s): Interim Report/Quarter Results technotrans AG: Figures for Q§ and 9M 2013 (news with additional features) 05.11.2013 / 07:16 --------------------------------------------------------------------- Growth story of technotrans intact despite temporary weakness Revenue grows by 17.6 percent to EUR 77.8 million after nine months / EBIT only EUR 3.0 million / growth strategy to be pursued further / customer projects in new markets are largely running according to schedule Sassenberg, November 5, 2013 Revenue for the technotrans Group in the first nine months of 2013 climbed 17.6 percent to EUR 77.8 million (previous year EUR 66.1 million). This growth was driven first and foremost by the acquisition of KLH Kältetechnik GmbH and its Asian sister companies at the start of 2013. The third quarter of 2013 brought in revenue of EUR 25.3 million, up 4.7 percent on the prior-year quarter (EUR 24.2 million). After the nine months of the 2013 financial year, EBIT amounted to EUR 3.0 million, or 12.0 percent less than at the same point of the previous year (EUR 3.4 million). The EBIT margin at the reporting date fell to just 3.9 percent (previous year 5.2 percent). EBIT for the third quarter reached EUR 0.8 million (previous year EUR 1.7 million), which corresponds to an EBIT margin of 3.0 percent. This decrease was primarily due to the unexpectedly weak business performance. Net income for the nine-month period came to EUR 1.7 million (previous year EUR 2.1 million). Earnings per share, for shares outstanding, are therefore EUR 0.25 after nine months (previous year EUR 0.33). 'The unsatisfactory revenue performance in the Technology segment compared with the original target stemmed mainly from the renewed, unexpectedly sharp downturn in business with customers from the printing industry,' says Henry Brickenkamp, CEO of technotrans AG. 'The activities in other sales markets are making headway, but are not yet in a position to compensate for this volume in the short term.' The number of employees in the group rose from 662 at the end of 2012 to 787 on September 30, 2013. There were 624 (504) employees in Germany and 163 (149) internationally. The increase in the current financial year is attributable to the acquisitions and the above-average number of new apprentices. The segments The first nine months of the financial year saw the Technology segment generate revenue of EUR 48.2 million (previous year EUR 39.0 million). The increase is largely attributable to business expansion following the takeover of KLH. On the other hand print business again declined (especially compared to the drupa year 2012), at a rate which could not be counterbalanced by sales in other areas. This became particularly apparent in the third quarter, when revenue for the segment reached just EUR 14.8 million and was therefore merely on a par with the previous year despite growth in the new markets (previous year EUR 14.7 million; after adjustment for the 'drupa effect' the prior-year quarter would have brought in approximately EUR 13.4 million). The revenue shortfall compared with the original plans for 2013 now amounts to around EUR 7 million; this has prompted the Board of Management to reduce the target for the full year. From the unexpectedly low revenue total, the Technology segment again brought in a slightly higher loss, which amounted to nearly EUR -0.9 million in the third quarter of 2013 (previous year EUR +0.1 million). This brought the aggregate loss for the first nine months of 2013 to EUR -1.8 million (EUR -1.0 million). Over and above the effects of the revenue shortfall, the total reflects investment in accessing new sales markets and, to a lesser extent, one-off measures e.g. for the adjustment of international structures. Revenue for the Services segment at the nine-month mark reached EUR 29.6 million (EUR 27.1 million). The 9.1 percent year-on-year growth is driven in part by the acquisition of KLH. Thus, the rise of 11.1 percent in the third quarter to EUR 10.5 million (EUR 9.5 million) is partly attributable to the implementation of corresponding segment reporting at the new subsidiary since mid-way through the year. The Services segment again made a stable contribution towards earnings in the third quarter. At just over EUR 1.6 million for the quarter, the margin reached 15.5 percent (previous year just under EUR 1.6 million, margin 16.6 percent). One-off expenses such as the closing-down of the subsidiary in Sweden filtered into this item. The nine-month result for the segment is EUR 4.8 million (previous year EUR 4.4 million), representing growth of 7.8 percent. The EBIT margin at the reporting date remains virtually unchanged at 16.2 percent. Financial position The equity ratio at September 30, 2013 was once again 56.3 percent. The group's net liquidity, in other words interest-bearing liabilities less cash and cash equivalents, was EUR 1.5 million; gearing (the ratio of net debt to equity) is consequently negative at -3.6 percent. Based on net income of EUR 1.7 million (previous year EUR 2.1 million) for the nine-month period, the cash flow from operating activities before changes in working capital totalled EUR 5.6 million (previous year EUR 6.5 million). Within working capital, there was a year-on-year change in liabilities due to reporting-date factors, mainly from the scaling-back of liabilities by KLH during the first nine months. Over the same period of the previous year, cash of EUR 0.4 million was released through changes in working capital. After deduction of interest and income tax payments, the net cash from operating activities for the period under review was again comfortably positive at EUR 2.2 million (previous year EUR 6.1 million). The cash sum of EUR 5.6 million used for investing activities comprises the customary maintenance investments as well as the cash outflow for the acquisition of the interest in KLH Kältetechnik GmbH and its Asian sister companies (EUR 3.3 million net), plus a conditional purchase price component for the acquisition of Termotek AG (EUR 0.8 million). At the nine-month mark the free cash flow therefore remained negative at EUR -3.4 million (previous year EUR 5.0 million). Credit facilities agreed at the start of the financial year were used for example to finance the acquisition of the interest, while scheduled repayments amounting to EUR 3.5 million were made in the course of the first half. A payment of EUR 0.8 million was made to the shareholders by way of a dividend for the 2012 financial year. The net cash employed for financing activities therefore came to EUR 2.7 million (previous year EUR -3.6 million) after nine months. Since the balance sheet date of December 31, 2012 cash and cash equivalents have fallen by 4.0 percent to EUR 18.0 million. In conjunction with available credit facilities approved and promised, the current financial position continues to offer ample leeway for financing current business and also for potential acquisitions. Outlook The delay in the recovery coming has been compounded by the unexpectedly sharp downturn in business with customers from the printing industry, resulting in the unsatisfactory business performance in the third quarter of 2013. The revenue shortfall compared with the original plans is in the order that the company is not yet in a position to recoup through its activities in new markets in the short term. The Board of Management has consequently resolved to adjust the targets for the year as a whole. The current position indicates that revenue for the 2013 financial year will reach a total of around EUR 102 million (most recent forecast EUR 105 million). This assumption is based on the expectation that the business performance in the fourth quarter will change only minimally from that of the third quarter. The final total for the year will moreover depend on whether various customer projects can be completed in December as planned, or whether projects will be delayed until the next financial year. Management is rather more optimistic about developments in the next financial year. Initially it is assumed that revenue growth will reach six percent, on the one hand thanks to the more benign investment climate that the economic forecasts currently anticipate and on the other hand because projects beyond the printing industry will bring in an increasing share of revenue. 'However, based on recent experience we consider it advisable to anticipate that either of these effects could take rather longer to materialise, because in this respect too we are normally dependent on the progress of development work at our customers', says Brickenkamp. 'Opportunities arising from growth in our market shares in the printing industry, from trends in the e-mobility sector or from the laser industry are only built into this estimate to the extent that their impact is already foreseeable today.' In order to accelerate growth further, technotrans is stepping up the sales activities in the new markets. 'In an effort to see that the additional customer projects are completed successfully, we continue to invest considerable amounts in resources. The resulting revenue will then bring the cost ratios back down to normal levels', says Dirk Engel, CFO of technotrans AG. The revenue growth and the ongoing optimisation processes should therefore help improve the EBIT margin to 6 to 7 percent next year. 'The technotrans growth story thus remains fully intact and, as matters stand,' says Brickenkamp. 'The attainment of our medium and long-term goals is merely being postponed by a year.' The company will publish firm guidance for the 2014 financial year at the usual time in March. Note: Statements made in this report relating to future developments are based on our cautious estimate of future events. The actual performance of the company may differ substantially from that planned, as it depends on a large number of market-related and economic factors, some of which are beyond the company's control. Download: The full Interim Report can be downloaded from the internet on www.technotrans.com, under Investor Relations - Reports. Dates: Eigenkapitalforum November 11. - 12., 2014 The 2013 Annual Report is scheduled for publication on March 11, 2014. Contact: technotrans AG, Corporate Communications/Investor Relations, Thessa Roderig, phone +49 (0)2583 301-1887, e-mail [email protected] technotrans Group Key figures acc. to IFRS

                                       Cha-    1.1.-    1.1.-     FY     FY
                                       nge   30.9.13  30.9.12   2012   2011
Earnings
                                EUR
Revenue                         '000   17.6%  77,769   66,126  90,662
97,265
                                EUR
Technology                      '000   23.5%  48,189   39,018  53,733
61,673
                                EUR
Services                        '000   9.1%   29,580   27,108  36,929
35,592
                                EUR
Gross profit                    '000   6.1%   24,335   22,941  31,652
30,779
                                EUR
EBITDA 1                        '000   -3.4%   5,465    5,657  8,319  7,980
Earnings before interest and    EUR    -
taxes (EBIT)                    '000   12.0%   3,026    3,439  5,357  4,787
                                EUR    -
Net profit for the period       '000   17.1%   1,736    2,095  3,094  3,019
as % of revenue                 %               2.2%     3.2%   3.4%   3.1%
                                       -
Net result per share (IFRS)     EUR    22.9%    0.25     0.33   0.48   0.47

Balance sheet
                                EUR
Issued capital                  '000   0.0%    6,908    6,908  6,908  6,908
                                EUR
Equity                          '000   8.4%   43,098   39,768  40,865
37,291
Equity ratio                    %              56.3%    57.9%  63.2%  55.5%
Return on equity                %               4.0%     5.4%   7.9%   8.5%
                                EUR
Balance sheet total             '000   11.5%  76,520   68,640  64,705
67,215
                                EUR
Net debt 2                      '000          -1,545     -430  -8,462 4,890
                                EUR
Working capital 3               '000   19.5%  27,400   22,933  27,087
18,527
ROCE 4                          %               5.3%      6.3  10.1%   8.9%

Employees
Employees (average)                    21.3%     768      633    646    659
                                EUR
Personnel expenses              '000   16.3%  27,883   23,966  32,651
33,224
as % of revenue                 %              35.9%    36.2%  36.0%  34.2%
                                EUR
Revenue per employee            '000   -3.1%     101      105    140    148

Cash flow
                                EUR
Cash flow 5                     '000           2,220    6,075  10,979 5,868
                                EUR
Free Cash flow 6                '000          -3,409    5,021  13,172 3,606

Shares
Number of shares at end of                   6,466,5  6,432,7  6,455  6,432
period                                 0.5%       10       75   ,404   ,775
Share price (max)               EUR    65.1%   10.35     6.27   7.20   7.51
Share price (min)               EUR    68.3%    6.90     4.10   4.10   4.01

1 EBITDA = EBIT + amortisation of goodwill + depreciation of property, plant and equipment and intangible assets 2 Net debt = interest-bearing liabilities - cash and cash equivalents 3 Working capital = current assets - current liabilities 4 ROCE = EBIT / Capital employed 5 Cash flow = Net cash from operating activities acc. to Cash flow Statement 6 Free Cash flow = Net cash from operating activities + net cash used for investments acc. to Cash flow Statement End of Corporate News +++++ Additional features: Document: http://n.equitystory.com/c/fncls.ssp?u=TDBTCFSLRD Document title: Press release Q3/9M 2013 --------------------------------------------------------------------- 05.11.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: technotrans AG Robert-Linnemann-Str. 17 48336 Sassenberg Germany Phone: +49 (0)2583 - 301 - 1000 Fax: +49 (0)2583 - 301 - 1030 E-mail: [email protected] Internet: http://www.technotrans.de ISIN: DE000A0XYGA7 WKN: A0XYGA Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 237785 05.11.2013