Pankl Racing Systems AG: Results for the Fiscal Year 2013

Kapfenberg (pta007/24.02.2014/07:45 UTC+1) Pankl Racing Systems AG - Results for the Fiscal Year 2013
Kapfenberg, 24 February 2014

- Revenues increased by 9% to Eur139.8m
- Profitability burdened by start-up expenses for new serial production projects and weak Formula 1 business
- EBIT decreased from Eur10.4m to Eur6.2m

Eurk	2013	2012	CHG
Revenues	139,803	127,685	9%
EBITDA	17,473	19,980	(13%)
EBIT	6,150	10,382	(41%)
Earnings after tax	2,493	5,942	(58%)
EBITDA margin	12%	16%	-
EBIT margin	4%	8%	-
Earnings per share (Eur)	0.67	1.77	(62%)
Book value per share (Eur)	21.69	22.1	(2%)

In the fiscal year 2013, revenues of Pankl Group increased by 9% to Eur139.8m. In the first half of the fiscal year racing budgets were squeezed due to the uncertain economic outlook. In Formula 1, still our largest market, teams focused primarily on the 2014 season rule changes, which led to a decline in business for the 2013 season. In the first few months of the fiscal year, we also experienced declines in the US aerospace business. On a quarterly basis, all our business segments developed favourably from H2 onwards.

In the fiscal year 2013, operating earnings were burdened by a short Formula 1 racing season, start-up expenses for long-term high performance projects and weak Q1 results of the US aerospace subsidiary. EBIT declined from the record Eur10.4m or 8.1% of revenues in 2012 to Eur6.2m or 4.4% of revenues in 2013.

Racing/High Performance
Racing/High Performance Segment revenues increased by 10.3% despite the difficult economic environment and the pending 2014 Formula 1 rule change from V8 engines to V6 turbo-charged engines. This increase was mainly due to our participation in the German turbo supercharger development company which took place in September 2012 and the start-up of high performance projects. The start-up phase of a number of serial production projects also led to high expenses, which burdened the Racing/High Performance Segment earnings. In 2013, the Racing/High Performance Segment operating earnings declined from Eur7.5m or 7.2% of revenues to Eur4.4m or 3.8% of revenues.

Aerospace
In the fiscal year 2013, Aerospace Segment revenues increased by 5.6% to Eur24.2m (2012: Eur22.9m). After a slight decline in Q1 (-4.1%), we experienced significant growth from April onwards. This recovery was due to a positive development of the US aerospace business and ongoing high demand in the European aerospace business. Aerospace Segment EBIT amounted to Eur2.8m or 11.4% of revenues versus Eur3.1m or 13.4% of revenues in 2012.

Dividend Payment
The Management Board will propose to the AGM, which will be held on 25 April 2014, the payment of a dividend of Eur0.20 per share. Based on 3,150,000 entitled shares, this translates into a overall dividend payout of Eur630k or 30% of the net profit.

Outlook
CEO Wolfgang Plasser: "The fiscal year 2013 was in many ways a transition year with major investments for the future. In the fiscal year 2014, we experience a better business environment from the start. Production capacities, which we created in the last 2 years, can now be profitably utilised. In 2014, we expect revenues growth of 10% and a return to significantly better earnings."

From 17 March 2014, the annual financial report for the fiscal year 2013 is available on our homepage www.pankl.com under the link http://www.pankl.com/Finanzberichte.485.1.html.

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

(end)