Pankl Racing Systems AG: 1st half of the fiscal year 2015

Kapfenberg (pta005/03.08.2015/07:00 UTC+2) 3 August 2015

-First half revenues increased by 1.4%
-Significant growth in the high performance business
-Declines in motor racing due to the F1 rule changes in 2014
-Aerospace Segment revenues and earnings burdened by persistently low oil prices

EURk		2015H1	2014H1	CHG		2015Q2	2014Q2	CHG
Revenues		88,299	87,089	1%		41,580	40,287	3%
EBITDA		13,334	14,562	-8%		5,160	5,611	-8%
EBIT		6,653	8,577	-22%		1,814	2,548	-29%
Earnings after tax		4,533	5,423	-16%		556	1,546	-64%
EBITDA margin		15%	17%	-		12%	14%	-
EBIT margin		8%	10%	-		4%	6%	-

In the first half of the fiscal year 2015, Pankl Group achieved revenues of Eur88.3m (2014H1: Eur87.1m). Despite declines in motor racing and aerospace the Pankl Group was able to increase revenues because of a positive development in the high performance business.

After the record earnings in 2014, EBIT decreased in 2015H1 from Eur8.6m or 9.8% of revenues by 22.4% to Eur6.7m or 7.5% of revenues. The main reason for the decline was that 2014 benefitted significantly from F1 rule changes, which accounted for about 10% of 2014H1 revenues. As expected these revenues fell away in 2015H1.

The financial result improved from Eur-1.5m to Eur-0.9m due to a favourable EUR/USD exchange rate development and lower refinancing expenses. In 2015H1 net earnings after tax amounted to Eur4.5m (2014H1: Eur5.4m). Earnings per share attributable to Pankl shareholders amounted to Eur1.36 versus Eur1.50 in the same period last year.

Racing/High Performance Segment
In 2015H1, Racing/High Performance Segment revenues increased by 3.9% from Eur73.4m to Eur76.2m. Motor racing revenues declined due to the special effect of the F1 rule change in 2014, high performance revenues and earnings increased. The high performance business compensated for the lower F1 revenues but did not compensate for the lower F1 earnings due to the higher F1 margins. In 2015H1, operating earnings (EBIT) amounted to Eur5.2m or 6.8% of revenues versus Eur7.0m or 9.6% of revenues in the same period last year.

Aerospace
In 2015H1, Aerospace Segment revenues amounted to Eur12.1m (2014H1: Eur13.8m). The main reason for this decline was the decreasing demand for helicopters in offshore oil exploration due to the persistently low oil prices. Operating earnings (EBIT) decreased from Eur1.1m or 7.8% of revenues to Eur0.5m or 3.9% of revenues.

Outlook
CEO Wolfgang Plasser: "The capex programme of the past few years allowed us to grow our high performance business by another 30% in 2015 to about a third of our overall revenues. In 2015, this growth was driven by aluminium drivetrain systems produced in our new forging press line. Due to ever stricter CO2 emission limits all automotive suppliers show interest in our high performance lightweight products and our innovative turbo-supercharger systems. The current decline in the civil helicopter business is unpleasant, but does not change the positive long-term outlook of our aerospace business. Overall we expect solid results for the fiscal year 2015."

The 2015H1 financial report is available as of now under the link:
http://www.pankl.com/fileadmin/user_upload/pankl_Q2_2015_E_WEB.pdf

For further information:
Investor Relations
Tel.: +43 3862 33 999 113
e-mail: ir@pankl.com
Internet: www.pankl.com

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