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euro adhoc: HTI - High Tech Industries AG / Financial Figures/Balance Sheet / HTI AG: First Business Year Following Strategic Restructuring - SIGNIFICANT RISE IN EARNINGS CONFIRMS SUCCESS OF THE NEW B

Geschrieben am 31-03-2008


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Company Information

28.03.2008

HTI AG: First Business Year Following Strategic Restructuring
SIGNIFICANT RISE IN EARNINGS CONFIRMS SUCCESS OF THE NEW BUSINESS
MODEL

Sales close to double 2006 level: +92.6% to TEUR 151,645* - EBIT
rises almost four-hold fast: +279.0% to TEUR 8,031 - Nine-fold EBT
increase: +822.3% to TEUR 2,804 - 2008: persistent continuation of
acquisition strategy in the three industrial segments - 2008 sales
target: approx. EUR 200 million

St. Marien/Vienna, Austria, March 31, 2008. The first year following
the strategic reorientation of the HTI Group resulted in a
significant improvement in profitability, as expected. The new
structure not only encompasses the original core business of
"Plastics Processing" but created two new industrial segments, "Metal
Processing" and "Mechanical Engineering", as well as the "Other
Interests" segment. HTI High Tech Industries AG, listed on the Prime
Market of the Vienna Stock Exchange, came close to doubling total
sales to TEUR 151,645 and achieving a disproportionately high
increase in earnings, although the two new industrial segments have
only been consolidated since February 1, 2007, for 11 months of the
2007 business year. The comparison with 2006 confirms the
effectiveness of the new business model.

Earnings before non-recurring items, interest, tax, depreciation and
amortization doubled to TEUR 17,736, an increase of 101.7% compared
to the previous year´s level of TEUR 8,794, whereas the EBITDA margin
rose to 11.7%. The company succeeded in achieving close to a
four-fold improvement in the earnings before interest and tax, which
climbed 279.0%, to TEUR 8,031. Accordingly, with an EBIT margin of
5.3% HTI AG significantly surpassed the company´s management target
of 4.5% - 4.7% for 2007. The higher profitability of HTI AG is
impressively demonstrated by the company´s earnings before tax (EBT),
which rose nine-fold (+822.3%) to TEUR 2,804, up from TEUR 304 in
2006. The EBT margin also developed positively, improving from 0.4%
in 2006 to 1.8% during the period under review. The consolidated
profit for the period amounted to TEUR 2,802, compared to TEUR 111 in
the preceding year.

Gross cash flow in 2007 increased by 64.1% to TEUR 11,653 during the
reporting period, up from TEUR 7,102. Cash flow from operating
activities improved considerably, rising to TEUR 4,630, up from TEUR
-88 in 2006. The net cash flow from investing activities almost
tripled, from TEUR -12,355 to TEUR -35,069, as a consequence of the
acquisitions and investments carried out during the 2007 business
year. The cash flow from financing activities, which climbed to TEUR
41,767 in 2007 compared to the level of TEUR 12,959 in the preceding
year, includes the corporate bond issued in June 2007, at a nominal
value of TEUR 20,000.

Segment reporting

In the Metal Processing segment, the targeted goals for 2007 were
achieved. Based on total sales of TEUR 60,532, the segment achieved
an EBITDA of TEUR 6,187, EBIT of TEUR 4,345 and EBT of TEUR 2,889.
These figures correspond to an EBITDA margin of 10.2%, an EBIT margin
of 7.2% and an EBT margin of 4.8%. Despite the ongoing challenging
business environment, the Management Board expects to achieve
considerably higher margins in the future due to the consolidation of
manufacturing operations at the St. Marien site and the resulting
improvement in production efficiency and organizational processes.

Business development in the Plastics Processing segment (comprising
the operating units of HTG AG before its reorganization into HTI AG)
was below expectations. Increasing raw material prices and cost
pressure on the part of customers, as well as the postponement of
significant sales revenues in the aircraft business area to the 2008
business year, had a negative impact on earnings. Moreover, HTI
cancelled a large contract with a negative contribution margin won by
HTP´s German subsidiary. As a consequence, the segment´s EBITDA fell
12.0% during the period under review, to TEUR 7,735, whereas EBIT
also decreased from TEUR 2,119 in 2006 to TEUR 835. Although the
financial result improved slightly year-on-year to TEUR -1,489 (2006:
TEUR -1,815), segment EBT was no longer positive, declining from TEUR
304 in 2006 to TEUR -654. On balance, total sales of the Plastic
Processing segment amounted to TEUR 71,137, down from 78,725 in the
preceding year. However, the new Vráble production facility, located
in the Slovakian automobile cluster, received contract orders
surpassing initial expectations. Accordingly, HTI anticipates
significant sales and earnings growth in 2008.

The Mechanical Engineering segment is the most profitable in the HTI
Group. Although this segment accounts for only TEUR 21,424 or 14% of
total Group sales, it contributed 38% of the Group´s EBIT. Its
positioning as a highly specialized niche provider featuring a
product portfolio which is not easily substitutable served as the
basis for generating above-average earnings margins. The Mechanical
Engineering segment´s EBITDA of TEUR 3,934 corresponds to an EBITDA
margin of 18.4%. Segment EBIT amounted to TEUR 3,150, or an EBIT
margin of 14.7%, whereas EBT of TEUR 2,926 represents an EBT margin
of 13.7%. HTI expects a continuation of the positive earnings
development in this segment.

The Other Interests segment encompasses the business activities of
HTI Holding as well as ProRegio Mittelstandsfinanzierungs AG, which
was initially consolidated as at July 1, 2007. ProRegio primarily
owns minority stakes in various companies. For this reason, its
consolidation mainly impacted HTI´s financial result. After taking
account of other expenses, the segment´s earnings before tax of TEUR
-2,178 represents the segment´s financial result totaling TEUR
-2,059, chiefly consisting of the holding´s financing activities, and
other expenses.

Outlook for 2008: Continuation of acquisition strategy focusing on
three industrial segments, and consistent growth in earnings HTI High
Tech Industries AG announced further acquisitions in December, 2007.
ProRegio acquired a 10% stake in Carbo Tech Composites GmbH, an
innovative manufacturer of carbon fiber composites. The closing of
the agreement to acquire HAT Skinline GmbH, a Carinthia-based
specialist for the development and processing of plastics components,
took place at the end of January 2008. On March 20, 2008, HTI legally
acquired a 100% shareholding in the Theysohn Group, a leading
producer of extrusion equipment to manufacture plastic profiles.

In the 2008 business year, HTI is confronted with challenging
conditions on international markets (i.e. rising raw material prices,
economic slowdown, ongoing cost pressure on the part of customers).
Nevertheless, the Management Board once again sees excellent
opportunities to continue its profitable growth path, featuring an
improvement in both sales and earnings. The cornerstones of the
positive outlook are the modernized production plant in Vráble,
Slovakia, the recently established operating unit for form molding in
Brasov, Romania, the expansion of this company to encompass plastic
injection molding, and the completion of the consolidation process
bundling HTI´s Metal Processing manufacturing operations in St.
Marien, scheduled for the middle of 2008. Total Group sales are
expected to reach about EUR 200 million in 2008, accompanied by a
gratifying EBIT margin. This will be based on organic growth as well
as further acquisitions, several of which are currently being
evaluated by the Management Board.


Key figures of the HTI Group (IFRS) 2007 2006 Change in %

Total sales TEUR 151,645 78,725 92.63%
Plastics Processing TEUR 71,137 78,725 -9.64%
Metal Processing TEUR 60,532 0
Mechanical Engineering TEUR 21,424 0
EBITDA TEUR 17,736 8,794 101.68%
EBIT TEUR 8,031 2,119 279.00%
EBT TEUR 2,804 304 822.37%
Consolidated profit for the period
TEUR 2,802 111 2,424.32%
EBITDA margin % 11.7% 11.2% 4.46%
EBIT margin % 5.3% 2.7% 96.30%
EBT margin % 1.8% 0.4% 350.00%
Consolidated earnings margin
% 1.8% 0.1% 1,700.00%
Earnings per share EUR 0.22 0.01 2,100.00%

Total assets TEUR 194,773 101,821 91.29%
Equity TEUR 46,243 31,177 48.32%
Equity ratio % 23.7% 30.6% -22.55%
Gearing % 140.0% 75.0% 86.66%
Capital expenditures TEUR 22,163 8,059 175.01%
Depreciation and amortization
TEUR 9,705 6,675 45.39%
Gross cash flow TEUR 11,653 7,102 64.08%


Cash flow from operating activities TEUR
4,630 -88 5361.36%

Average annual number of employees


Total 1,111 669 66.07%
Sales/employee TEUR 136 118 15.99%

* All the figures presented in this ad-hoc press information for the 2007
business year represent the final Group results, with the proviso that the
consolidated financial statements and annual financial statements must be
granted formal approval by the Supervisory Board of HTI High Tech Industries AG,
as stipulated by stock corporation law, with approval scheduled to be granted on
April 8, 2008.


Information on HTI is also available on the Website at:
www.hti-ag.at.


end of announcement euro adhoc
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ots Originaltext: HTP High Tech Plastics AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

HTI High Tech Industries AG, Peter Glatzmeier, Chairman of the Management Board,
Tel: +43 (0) 3862 304 - 8590, Fax: +43 (0) 3862 304 - 7598,
p.glatzmeier@hti-ag.at

HTI High Tech Industries AG, Nadja Goyer, Investor Relations, Tel: +43 (0)
3862 304 - 8562, Fax: + 43 (0) 3862 304 - 7598, n.goyer@hti-ag.at

Hochegger Financial Relations GmbH, Dieter Riedlinger, Senior Consultant, Tel:
+43 1 504 69 87, Fax: +43 1 504 69 87 60, d.riedlinger@hochegger.com

Branche: Holding companies
ISIN: AT0000764626
WKN: A0DQ9W
Index: WBI
Börsen: Wiener Börse AG / official market


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