Pankl Racing Systems AG: Full year figures for 2014

February 23rd 2015

Kapfenberg (pta008/23.02.2015/07:45 UTC+1) 18% revenues growth to Eur165.0m
Positive developments in all segments led to record results
EBIT increased by 93% to Eur11.9m

in TEUR	2014	2013	VDG
Umsatzerlöse	165.027	139.803	18%
EBITDA	24.316	17.473	39%
EBIT	11.893	6.150	93%
Ergebnis nach Steuern	6.861	2.493	175%
EBITDA-Marge	15%	12%	-
EBIT-Marge	7%	4%	-
Ergebnis je Aktie (Eur)	1,95	0,67	191%
Buchwert je Aktie (Eur)	24,37	21,69	12%

The fiscal year 2014 was very successful for Pankl despite an ongoing difficult overall economic environment. Revenues increased by 18% to Eur165m versus the previous year. In the Racing/High Performance Segment, Pankl Group benefitted from rule changes in motor racing and the start-up of new high performance projects. Also the Aerospace Segment recorded significant revenues growth. In the past fiscal year, we experienced positive developments in all segments of the Pankl Group. Highlights were the surge in motor racing demand and the revenues and earnings improvements in our new Bruck upon Mur plant for series connecting rods, which we were able to utilise for a whole calendar year for the first time.

Racing/High Performance
In the motor racing business, Formula 1 was by far our largest single market. In 2014, we experienced significant revenues growth after a number of difficult years. This was due to the substantial F1 rule changes. But we were able to generate growth also in other racing series such as Indy Racing League, DTM and the LeMans prototypes. In the high performance business, we were able to improve productivity significantly in our new series connecting rod plant. In the fiscal year 2014, Racing/High Performance revenues increased by 18.4% from Eur115.9m to Eur137.2m. Operating earnings (EBIT) increased by Eur5.0m to Eur9.4m or 6.8% of revenues (2013: Eur4.4m or 3.8% of revenues).

Aerospace
In the aerospace business, our Austrian subsidiary achieved another successful year. Our US-subsidiary generated higher revenues than in the previous year and positive earnings. Our strategy to put more focus on the civil market started to bear fruit. In the fiscal year 2014, the Aerospace Segment revenues increased by 15.6% to Eur28.0m (2013: Eur24.2m). Operating earnings (EBIT) amounted to Eur2.5m or 8.9% of revenues, which was slightly below the previous year (2013: Eur2.8m or 11.4% of revenues).

Dividend
The Management Board recommends the AGM, which will be held on 24 April 2015, the distribution of a dividend amounting to Eur0.60 per share. This corresponds to a payout ratio of 30.8% from the net profit after tax. Based on 3,150,000 shares the dividend payment would amount to Eur1,890k.

Outlook
CEO Wolfgang Plasser: "The fiscal year 2014 was an exceptionally successful record year, in which we benefitted from a major F1 rule change. In the fiscal year 2015, there will not be such a special situation. Nevertheless, I expect a very solid performance."

The Financial Report 2014 is available on the website of the Company www.pankl.com under http://www.pankl.com/de/header-navigation/investor-relations/veroeffentlichungen/finanzberichte/ from March 9th 2015.

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