EANS-Adhoc: Von Roll Holding AG / first steps towards a transformation in financial year 2011

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annual report

20.03.2012

- Order intake of CHF 559.6 million, up 15.8% at constant exchange
rates - Sales at CHF 543.3 million, growth of 9.7% at constant
exchange rates - EBIT of CHF 6.6 million, influenced by one-off
effects - Company strategy developed and implemented

Au / Wädenswil, 20 March 2012 - Von Roll Holding AG today published
its results for the financial year 2011. Although Von Roll's business
performance during the reporting year was influenced by the
uncertainties affecting the global economy, the company still managed
to hold its own in this environment and grow in operational terms.
Order intake amounted to CHF 559.6 million, an increase of 15.8% at
constant exchange rates. The company generated sales of CHF 543.3
million, up 9.7% at constant exchange rates. At CHF 6.6 million
(2010: CHF 10.8 million), EBIT was negatively affected by three main
factors. Firstly, the negative result from the transformer business
reduced EBIT by CHF 11.5 million in comparison with the previous
year. Secondly, foreign exchange effects due to the continued
strength of the Swiss franc took a further CHF 1.9 million off the
EBIT figure. Thirdly, Von Roll also recorded a complete valuation
allowance in the financial year 2011 in the amount of CHF 3.1 million
on capitalised development costs for the solar research and
development project due to the fact that an external partner will be
needed to implement the financing for development up to series
production readiness and for the expansion of production capacities.
These factors resulted in a net income of CHF 0.1 million as against
CHF -7.5 million in the previous year. The equity ratio is 60%. Cash
flow from operating activities amounted to CHF -19.7 million in the
reporting year compared to CHF 14.3 million in 2010. The fall in cash
flow is due primarily to a significant increase in inventories of
materials and goods in order to work off the increased backlog of
orders in the current year. The Board of Directors will propose to
this year's Annual General Meeting that no dividend be paid for the
financial year 2011.

Uneven performance by the business units Whereas an unstable economic
environment in 2011 curbed growth in the low-voltage industry, which
is sensitive to the state of the economy, the long-cycle high-voltage
business once again experienced a slight upturn. Von Roll Insulation
and Von Roll Composites performed well in 2011, with Von Roll
Insulation increasing sales by 1.1% to CHF 361.2 million. At constant
exchange rates, sales growth was as high as 13.3%. Order intake
improved by 2.1% to CHF 373.4 million, with operating EBIT amounting
to CHF 17.9 million. Von Roll Composites increased sales to CHF 111.4
million, growth of 0.6% or 11.4% at constant exchange rates. Order
intake fell slightly in the reporting year by 1.8% to CHF 113.9
million. Von Roll Composites significantly improved its operating
EBIT from CHF 1.4 million to CHF 2.7 million. In contrast, the
performance of Von Roll Transformers was still affected by the order
backlog from 2009 and 2010 and thus had an adverse effect on Group
EBIT. Von Roll Transformers recorded an 18.7% fall in sales to CHF
66.9 million. This corresponds to a decline of 8.3% at constant
exchange rates. However, order intake recovered, improving by 18.4%
to CHF 63.3 million. Von Roll Transformers posted operating EBIT of
CHF -4.5 million in 2011 as against CHF 7.0 million in the previous
year.

Development and implementation of corporate strategy In 2011, Von
Roll put every effort into developing its company strategy and has
already launched its first initiatives. One focal point was the
organisational restructuring of the Group. A global matrix-based
organisation was introduced and an Operations Council set up, an
international management team responsible for implementing Von Roll's
forthcoming strategy in operational terms. Von Roll also initiated
measures to better interlink the sites with one another, including
investing in a large-scale global IT project. Initial progress was
made with a new quality and product strategy, with measures including
the creation of a global responsibility structure for quality issues
and introducing business lines. Various projects were also launched
as part of the new market and product strategy as well as to optimise
structures and processes. The key priority here is to scrutinise and
consolidate our sites alongside harmonising the various processes
involved. Von Roll has also begun to expand its value added chain in
certain areas. One such example is the development of a specialist
mica centre in Brazil that is currently under way. Mica is one of the
most important raw materials for Von Roll and is used to make mica
tapes (insulating tapes), among other products. In the future, Von
Roll will take charge of more further processing stages in the
production process for the raw material. In terms of product
development, Von Roll is focusing increasingly on growth markets such
as wind power, a market in which the company already offers a range
of products. Research and development have been stepped up and are
concentrating mainly on the markets of the future such as plastics
for civil defence and for the automotive industry. Matthias
Oppermann, CEO of Von Roll Holding AG, said: "In 2011, we put Von
Roll on the right course towards future success. We are focusing on
the energy markets of today and tomorrow - in other words, our core
business. Integrating and interlinking our sites across the world is
a key component of our successful transformation."

Outlook for 2012 In view of the uncertain economic situation, Von
Roll is not making any general forecasts for the current year. The
company is expecting the quality and sales initiatives it has
launched to start delivering results in 2012. Matthias Oppermann:
"Our overriding aim is and will remain sustained, profitable sales
growth. We are working hard to achieve this goal."

Further information can be found in the 2011 Annual Report. This is
available online at http://www.vonroll.com/investor-relations/reports
-and-publications/financial-reports.

About Von Roll Holding AG: As one of Switzerland´s longest
established industrial companies, Von Roll Holding AG focuses on
products and systems for power generation, transmission and
distribution. Von Roll is the global market leader in insulation
products, systems and services and is represented in 19 countries
with around 3,000 employees at over 30 sites.

end of ad-hoc-announcement ==========================================
====================================== This press release is based on
information currently available. Unforeseeable risks and influences
may lead to discrepancies with statements portrayed here.
Furthermore, rounding differences may lead to discrepancies in the
reported figures. The release is originally prepared in German and
then translated into English. In the event of any discrepancy, the
German version prevails. For more detailed information about the
company and its business performance, please refer to the 2011 Annual
Report of Von Roll Holding AG.

Further inquiry note:
Susanne Berger
Corporate Communications
T: +41 44 204 3034, F: +41 44 204 3039, E: press@vonroll.com

end of announcement euro adhoc
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issuer: Von Roll Holding AG
Steinacherstrasse 101
CH-8804 Au / Wädenswil
phone: +41 (0)44 204 30 34
FAX: +41 (0)44 204 30 39
mail: press@vonroll.com
WWW: http://www.vonroll.ch
sector: Misc. Industrials
ISIN: CH0003245351
indexes: SPI, Midcap Market Index
stockmarkets: Main Standard: SIX Swiss Exchange
language: English