Pankl Racing Systems AG: 2013H1

Kapfenberg (pta010/26.08.2013/07:30 UTC+2) Pankl Racing Systems AG - 2013H1
Kapfenberg, 26 August 2013

- Revenues increase by 5% in Q2
- Half-year revenues increase by 3% to Eur70.9m
- Half-year EBIT decreases by 44% to Eur4.0m
- Q2 is burdened by weak F1 business due to imminent rule change
- High start-up expenses for serial production projects continue to burden profitability in Q2
- Major improvement in US aerospace business in Q2

in EURk	2013H1	2012H1	CHG	2013Q2	2012Q2	CHG
Revenues	70,916	68,701	3%	33,868	32,193	5%
EBITDA	9,317	11,626	(20%)	3,653	4,950	(26%)
EBIT	3,951	7,022	(44%)	893	2,573	(65%)
Earnings after tax	2,272	4,433	(49%)	459	1,623	(72%)
EBITDA margin	13%	17%	-	11%	15%	-
EBIT margin	6%	10%	-	3%	8%	-

Half-year revenues increase by 3%, half-year EBIT decreases by 44%
In the first half of the fiscal year 2013, Pankl Group was confronted with a difficult economic environment primarily in the motor racing business. In F1, which continues to be the most important single market for Pankl Group, demand decreased significantly already in Q2, hence 3 months earlier than in normal years. This was due to the imminent rule change which causes all customers to focus on the 2014 racing season from early on. Other racing series suffered from reductions in racing budgets due to the uncertain overall economic environment. In the High Performance division a number of long-term projects were still only in the start-up phase. The Aerospace Segment developed very favourably. The US aerospace business stabilised from April, so that the Aerospace Segment recorded very good results in Q2.

2013H1 revenues increased by 3% to Eur70.9m. The unusually short racing season, start-up expenses for serial production projects and the weak Q1 results of the US aerospace subsidiary burdened profits of Pankl Group. EBIT amounted to Eur4.0m or 5.6% of revenues after Eur7.0m or 10.2% of revenues in the same period last year. In 2013Q2 EBIT amounted to Eur0.9m or 2.6% of revenues versus Eur2.6m or 8.0% of revenues in 2012Q2.

Racing/High Performance Segment
In the first half of 2013, Racing / High Performance Segment revenues increased by 2.8% despite the imminent F1 rule change to move to V6 turbo engines from the V8 engines. In 2013Q1, revenues increased by 2.4% to Eur32.0m (2012Q1: Eur31.2m). In 2013Q2 revenues increased by 3.3% to Eur27.4m (2012Q2: Eur26.5m). The start-up of the first projects in the High Performance division had a positive impact on revenues in the first months of the year. High start-up expenses in combination with lower than anticipated revenues due to project delays burdened segment profitability. In 2013H1, the Racing / High Performance Segment EBIT amounted to Eur3.3m or 5.5% of revenues versus Eur5.3m or 9.1% of revenues in the same period last year.

Aerospace Segment
In the first half of 2013, Aerospace Segment revenues increased by 5.2% to Eur11.7m (2012H1: Eur11.1m). On a quarterly basis revenues decreased by 4.1% in Q1 and increased by 14.0% in Q2. The European aerospace subsidiary benefitted from sound demand during the whole reporting period. From June it also started to generate significant revenues from jet engine drive shafts. The US aerospace subsidiary experienced a significant improvement in demand in Q2. In 2013H1, the Aerospace Segment EBIT amounted to Eur1.1m or 9.1% of revenues versus Eur1.3m or 11.4% of revenues in the same period last year. In Q2, the segment recorded a very favourable EBIT of Eur1.0m or 14.8% of revenues.

Outlook
CEO Wolfgang Plasser: "The fiscal year 2013 turns out to be much more difficult than the fiscal year 2012, when all company divisions showed record performance at the same time. The imminent F1 rule change to move to V6 turbo engines, a decline in racing budgets in other racing categories driven by the uncertain economic environment and project delays in the high performance division burden our business. In 2013H1 we completed our major capital expenditure projects in Bruck upon Mur and Kapfenberg and brought our new production capacities online. The fiscal year 2013 will hence become a transition year in which we will beat the record 2012 revenues but will not reach the record 2012 earnings."

The financial report for the first half of the fiscal year 2013 is available on the homepage of the company under http://www.pankl.com/Pankl-Racing.485.0.html.

For further information:
Brigitte Putz
Investor Relations
Tel.: +43 3862 33 999 317
e-mail: ir@pankl.com
Internet: www.pankl.com

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