S&T AG: further successes in the first half of 2013

Tuesday, 6th August 2013

Austria

Consolidated earnings increased to Euro 4.1 million (PY: Euro 3.4 million)
Revenues stable at Euro 157.6 million (PY: Euro 158.2 million)
Financing and liquidity secured over the long-term

S&T AG (www.snt.at) achieved the targets it had set for itself in the first six months of 2013. The company had revenues of Euro 157.6 million for the period. That was nearly at the level of the previous year (Euro 158.2 million). The second quarter of 2013's revenues of Euro 80.6 million were somewhat above those of the second quarter of 2012's Euro 80.1 million. All of S&T's segments (Products, Services and Appliances) registered virtually stable sales.

Cost reductions have had a positive effect on the company's earnings. S&T achieved in the first half of 2013 an EBITDA and consolidated earnings of Euro 8.1 million (PY: Euro 7.2 million) and Euro 4.1 million (PY: Euro 3.4 million). This corresponds to an increase of more than 20%. These results make the achieving of the objective that we have set for 2013 - an increase of earnings of 25% - eminently realizable. S&T's EBITDA and consolidated earnings came in the second quarter of 2013 to Euro 4.5 million (PY: Euro 4.4 million) and Euro 2.1 million (PY: Euro 2.7 million). The positive results achieved in the first half and second quarter of 2013 were boosted by the synergies resulting from the merger and by the lack of restructuring effects in 2013.

S&T's rise in profitability primarily stemmed from the Appliances segment, whose business developed well. Net profits outgrew revenues. In the second quarter, the former came to Euro 1.4 million (PY: Euro 0.8 million). The figure for the first six months of 2013 amounted to Euro 2.9 million (PY: Euro 2.0 million). This segment is responsible for some 70% of the profits achieved by the Group as a whole.

The company's financial liabilities underwent a major change in the second quarter of 2013 that secures financing in the long-term. This resulted from the successful issuing of a five-year corporate bond. It comes to Euro 15 million. This was accompanied by the transformation of short-term bank loans into long-term financing amounting to Euro 8.0 million. As of 30.06.2013, S&T's long-term financing thus came to Euro 24.5 million (31.12.2012: Euro 7.0 million) while short-term financing decreased to Euro 26.2 million (31.12.2012: Euro 37.8 million). S&T's liquid funds amounted as of June 30, 2013 to Euro 28.0 million (31.12.2012: Euro 29.9 million).

The results achieved caused S&T's equity to stage a substantial rise. It amounts to Euro 67.4 million (31.12.2012: Euro 64.0 million). The equity rate came to 34.1% (31.12.2012: 29.9%). The optimization of the S&T Group's financing has led some 50% of its balance sheet sum to be covered on a long-term basis by equity and non-current financing.

S&T's management expects to achieve a 25% increase - as compared to the previous year - in consolidated earnings in financial year 2013. Profits are thus set to reach Euro 12 million. The development of business during the first half of 2013 and the large-sized contribution made to earnings by the Appliances segment confirm these forecasts. Even greater rises in revenues and profits are expected for 2014.