EANS-Adhoc: Miba Aktiengesellschaft / Financial Year 2008/2009: Miba Holds Its Own in a Year of Extremes

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07.05.2009

- Organic sales growth despite sharp decline in demand in the fourth
quarter
- EBIT margin increases to 9.2% from 7.1%
- Focus is on strengthening sales and R&D activities in 2009-2010

Miba, a strategic partner to the international engine and automotive industry,
generated consolidated sales of 374.6 million euros in 2008-2009. This
represents a 2.1 percent increase over the previous year in comparable terms -
after adjustment for the sales loss resulting from the disposal of the Spanish
site - despite a sharp drop in demand in the fourth quarter. Earnings before
interest and taxes (EBIT) rose by 25% to 34.5 million euros, substantially
outstripping the sales increase.

"The 2008-2009 business year will be remembered as a year of
extraordinary change," notes Peter Mitterbauer, Miba´s Chairman and
CEO. "New orders reached record levels up through late summer. But
when the financial crisis spread to the real economy in the fourth
quarter, Miba´s target markets declined with unprecedented intensity
and speed."

Miba responded to this trend early on by positioning itself clearly
and strategically as a supplier of technologically sophisticated
products and by insisting on cost efficiency in all areas. As a
result of these quick actions, the company was able to improve its
performance in 2008-2009 in spite of economic developments. The EBIT
margin increased to 9.2%, up from 7.1% a year earlier. Approximately
19 million euros was spent on research and development in order to
maintain and expand Miba´s technology leadership.

Investments at a Record Level A total of 43.1 million euros was
invested within the Miba Group in production capacity and product
quality (compared with 36 million euros in 2007-2008). Of this
amount, 30 million euros was invested in Miba´s Austrian facilities.

2008-09 2007-08
Sales 374.6 387.7

EBIT (in million EUR) 34.5 27.6
EBT (in million EUR) 30.9 24.6
Investments in fixed assets (in million EUR) 43.1 36.0

Number of employees (yearly average) 2,855 2,706

Cash flow from operations rose to 61.4 million euros, up from 53.6
million euros a year earlier. This is essentially the result of an
increase in operating income. This meant that investments could again
be fully financed out of the company´s own capital resources. The
57.9% equity ratio underscores Miba´s solid capital structure and
guarantees financial independence.

Miba had an average of 2,855 employees worldwide in 2008-2009,
compared with 2,706 the previous year. As of January 31, 2009, the
reporting date, the headcount totaled 2,825 (up from 2,730 on January
31, 2008). The increase in personnel was chiefly the result of
capacity expansion measures in the first quarter and affected Miba´s
Austrian sites primarily. The pronounced deterioration in the
economic climate that began in the fall of 2008 made it necessary to
adjust capacities to the market environment very quickly.
Comprehensive human resources adjustments ranged from the systematic
reduction of vacation and overtime credits to workforce reduction
focusing specifically on temporary workers. Short-time working hours
were subsequently introduced at the plants in Vorchdorf and Roitham,
although this occurred after the reporting date.

Miba Bearing Group: The Leading Business Unit for the First Time Miba
Bearing Group finished the business year with another record sales
figure totaling 160.4 million euros. It generated 42.6% of total Miba
Group sales and was therefore the leading business unit for the first
time ever. In target sectors such as heavy-duty commercial vehicles
and ships, the order levels reached all-time highs due to the huge
demand for transport capacities. Capacity bottlenecks at all of Miba
Bearing Group´s sites were a defining feature in 2008 2009. To
counter this trend, capital investment increased to 20.8 million
euros from 11.9 million the previous year.

Miba Sinter Group Feels Impact of Slowdown in Automotive Industry In
accordance with the general economic trend, Miba Sinter Group
experienced very encouraging growth on into the late summer, posting
higher figures up to that point than in the same period a year
earlier. But with the slowdown in the automotive industry in the
fall, customer call-offs began to decline significantly. Because of
the sharp drop in demand in the fourth quarter, Miba Sinter Group
sales in 2008-2009 totaled 135.4 million euros, falling below the
prior-year level (160 million euros) and accounting for 36% of total
Miba Group sales revenues. After adjustment for the sintering plant
in Spain, which was sold in business year 2007-2008, the sales
deficit was approximately 3%. The drop in demand that began in the
fall led immediately to the implementation of comprehensive action
plans at all sintering locations. This primarily involved adjusting
production capacities through temporary plant shutdowns.

Miba Friction Group Boosts Sales by 9% In spite of a weak fourth
quarter, Miba Friction Group sales rose to 76.5 million euros, an
increase of about 9%. This business unit thus generated 20.2% percent
of total Miba sales. Although there was healthy growth in demand in
the agricultural equipment sector throughout the year, sharp declines
were posted in the automotive and construction equipment segments as
the year drew to a close.

Outlook: Surviving the Crisis with Permanent Staff Given the current
economic conditions, the beginning of 2009-2010 has proved to be a
challenge for Miba. Despite the billions in economic stimulus
packages in the industrialized countries, Miba´s core markets are not
yet reinvigorated. Current call-off volumes are significantly below
the prior-year level, depending on the target market and customer,
and indicate that the sales level will be 25% lower than in
2008-2009. It is not possible from today´s perspective to give a
reliable estimate of growth during the current fiscal year. In
addition, the tendency towards short-term call-offs on the part of
Miba´s customers increases the complexity of corporate planning. Miba
assumes that there will not be a substantial improvement until 2010
at the earliest.

Miba has made early preparations in all business units for a
demanding market environment. Competitive cost structures, a solid
liquidity base, and highly qualified employees are the crucial
factors that will enable the company emerge from this recession in
stronger shape. The goal is to be able to retain most of the
permanent staff through flexible work schedules and salary models.

The focus in 2009-2010 will be on strengthening sales and R&D
activities in order to safeguard Miba´s product and technology
leadership in its core sectors over the long term. With its research
focus on high-performance, safe and environmentally friendly power
train technologies, Miba is effectively geared to its customers´
requirements.

end of ad-hoc-announcement ==========================================
====================================== The Miba Group With
headquarters in Laakirchen, Upper Austria, Miba is a strategic
partner to the international engine and automotive industry. Sintered
components, engine bearings and friction materials for motor
vehicles, railways, ships, aircraft and power stations are produced
at eleven sites worldwide. Miba products make vehicles more
efficient, safer and more environmentally friendly. Miba has around
2,700 employees, over half of whom work at the Austrian sites in
Laakirchen, Vorchdorf and Roitham. In the 2008-2009 business year,
the sales of the listed company amounted to 374.6 million euros with
earnings before interest and taxes (EBIT) of 34.5 million euros.

end of announcement euro adhoc
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ots Originaltext: Miba Aktiengesellschaft
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Susanne Dickstein

Head of Corporate Communications

Tel.: +43/7613/2541-1117

mailto:susanne.dickstein@miba.com

Investoren/Analysten

Mag. Hannes Moser

Vice President Corporate Finance

Tel.: +43/7613/2541-1138

mailto:hannes.moser@miba.com

Branche: Industrial Components
ISIN: AT0000734835
WKN: 872002
Index: Standard Market Auction
Börsen: Wiener Börse AG / official market