EANS-News: SHW AG reaches sales and earnings targets despite difficult market environment in Europe

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Financial Figures/Balance Sheet/ Preliminary key financial figures
2012

Aalen (euro adhoc) - Group sales climb 2.5 percent to EUR 325 million
in FY 2012 in spite of declining vehicle output in Europe - EBITDA[1]
grows by 6.5 percent to EUR 33.9 million - Sale of stake in joint
venture STT Technologies Inc. helps to significantly improve
consolidated net income from EUR 17.0 million to EUR 46.1 million -
Net cash position reaches EUR 19.6 million as at 31 December 2012

Aalen, 12 February 2013. SHW AG, one of the leading suppliers of
CO2-relevant pumps and engine components as well as brake discs,
today published the preliminary and unaudited key figures[2] for the
year 2012. "We were able to slightly exceed the projected EBITDA
margin of around ten percent in spite of the considerable decline in
European vehicle production," emphasised CEO Dr. Wolfgang Krause, who
is in charge of the Pumps and Engine Components business segment.

Due to production start-ups and the favourable customer structure,
SHW was able to disconnect itself from the negative market trend in
2012 - vehicle production in Europe was down by 5.8 percent - and to
improve its Group sales by 2.5 percent to EUR 325.4 million (previous
year: EUR 317.3 million). Group earnings before interest, taxes,
depreciation and amortisation (EBITDA) increased by 6.5 percent to
EUR 33.9 million in the period from January to December 2012
(previous year: EUR 31.9 million). At 10.4 percent, the EBITDA margin
slightly exceeded the previous year's level of 10.0 percent.

Consolidated net income amounted to EUR 46.1 million in 2012,
compared to EUR 17.0 million in the previous year. This amount
includes the net result from discontinued operations of EUR 31.9
million. Earnings after taxes from continued operations reached EUR
14.3 million (previous year: EUR 14.9 million). Earnings per share
from continued operations[3] amounted to EUR 2.44, compared to EUR
2.57 in the prior year period.

Planned growth track rests on a solid financial foundation

The sale of stake in the joint venture STT Technologies Inc.,
Toronto/Canada and the resulting cash inflow of EUR 42.9 million
further improved the solid financial position of SHW AG. As at the
balance sheet date on 31 December 2012, SHW had net cash in an amount
of EUR 19.6 million (previous year: net bank debt (excl. STT) of EUR
12.6 million)).

As a result of the high consolidated net income, the Group's equity
was up by EUR 39.2 million on the previous year to EUR 94.3 million.
This represents an equity ratio of 52.4 percent, compared to 31.7
percent on 31 December 2011.

SHW intends to use its solid financial position for additional
organic growth and the development of important automobile markets
such as the USA, Brazil and China. "Combined with the new long-term
syndicated loan we are able to finance acquisitions in the mid
double-digit million range," says Oliver Albrecht, CFO of SHW. In
addition, the company is considering paying out a special dividend.

Positive sales performance in Pumps and Engine Components business
segment

The Pumps and Engine Components business segmentboosted its sales by
5.7 percent to EUR 237.9 million (previous year: EUR 225.1 million)
thanks to production start-ups and increasing sales of gearbox oil
pumps. The Passenger Car division reported a 10.2 percent increase in
sales to EUR 182.2 million (previous year: EUR 165.4 million). The
Truck & Off-Highway division suffered from the noticeable
deterioration of the market environment for commercial vehicles and
generated sales of EUR 27.4 million (previous year: EUR 31.7
million). Sales in the Powder Metallurgy division improved by 1.0
percent to EUR 28.3 million (previous year: EUR 28.0 million).

After the expected weaker fourth quarter, the operating result was
below prior year's level. In particular, the lower earnings
contributions from the higher- margin Truck & Off-Highway division
because of lower sales had an adverse impact on the bottom line.
Moreover, in the context of a production start-up one-time expenses
of EUR 1.5 million incurred in the fourth quarter due to the delayed
delivery and launch of an assembly line. Due to these effects, the
segment's earnings before interest, taxes, depreciation and
amortisation (EBITDA) declined from EUR 29.4 million to EUR 27.8
million. The EBITDA margin dropped from 13.1 percent to 11.7 percent.

Very positive earnings performance for Brake Discs business segment

In the Brake Discs business segment, the number of composite brake
discs sold increased by 14.8 percent to 169,200 units (previous year:
147,400) in the financial year 2012. Sales of ready-to-install brake
discs declined by 4.9 percent to 1.7 million pieces (previous year:
1.8 million) due to declining orders from several OEMs in the fourth
quarter. Sales of unprocessed brake discs dropped by approx. 16.6
percent to 2.0 million pieces (previous year: 2.4 million). Total
brake disc sales were down by 10.8 percent to 3.9 million pieces
(previous year: 4.4 million). Thanks to the significant improvement
in the product mix towards high-value brake discs, sales revenues
declined at a lower rate than the brake disc output, namely by 5.2
percent to EUR 87.5 million (previous year: EUR 92.2 million) in
fiscal 2012.

Earnings before interest, taxes, depreciation and amortisation
(EBITDA) almost doubled from EUR 3.6 million to EUR 6.9 million.
Accordingly, the EBITDA margin climbed from 3.9 percent in the
previous year to 7.9 percent. Besides the noticeably improved product
mix, the business segment also benefited from productivity
improvements.

Good start into the new financial year

SHW had a good start into the new financial year. At EUR 26.6
million, Group sales were only slightly below the previous year's
level of EUR 26.7 million. The positive trend towards fuel-efficient
pumps continued in the Pumps and Engine Components business segment,
which generated EUR 19.7 million in sales (previous year: EUR 19.1
million). At EUR 6.9 million, sales in the Brake Discs business
segment were down by roughly ten percent on the previous year's EUR
7.6 million.

The full financial statements for the year 2012 and the outlook on
the fiscal year 2013 will be published with SHW's Annual Report on 21
March 2013.

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[1] Adjusted for one-time effects, 2011: IPO costs (EUR 2.2 million); 2012: non-
recurring expenses from a production start-up (EUR 1.5 million).

[2] Since the sale STT Technologies Inc., which was previously
consolidated on a pro-rata basis, has been classified as
"discontinued operation" as defined in IFRS 5. The prior year figures
have been adjusted accordingly. [3] 2011: based on an average of
5,798,195 shares; 2012: based on an average of 5,851,100 shares.

About SHW The enterprise was established in 1365, making it one of
the oldest industrial enterprises in Germany. Today, the SHW Group is
a leading supplier for the automotive industry with products that
contribute to a reduction of fuel consumption and consequently CO2
emissions. In its Pumps and Engine Components business segment, the
SHW Group develops and produces pumps for passenger vehicles and
truck and off-highway applications, e.g. trucks, farm and
construction vehicles, stationary motors and wind power stations. The
Brake Discs business segment develops and produces monobloc
ventilated brake discs made of cast iron and lightweight brake discs
made from a combination of an iron friction ring and an aluminium
pot. Customers of the SHW Group include leading producers of
passenger cars and commercial vehicles with manufacturing facilities
in Europe and North America. The SHW Group has four manufacturing
sites in Germany, located in Bad Schussenried, Aalen-Wasseralfingen,
Tuttlingen- Ludwigstal and Neuhausen ob Eck. With more than 1,000
employees, the SHW Group generated sales from continuing operations
in 2012 of EUR 325 million. Further information is available at:
www.shw.de

Future-oriented statements This press release contains certain
future-oriented statements that are based upon current assumptions
and forecasts made by the management of SHW AG. Various known and
unknown risks, uncertainties and other factors may lead to the actual
results, financial position, development or performance of the
company deviating considerably from the appraisals specified here.
The company assumes no obligation to update future-oriented
statements of this nature or adapt them to future events or
developments.

Note This announcement does not constitute an offer to sell
securities in the United States of America, Canada, Australia, Japan
or any other jurisdictional territory where offers are subject to
statutory restrictions. The securities named in this announcement may
only be sold or offered for sale in the United States of America
following their prior registration in accordance with the provisions
of the version of the US Securities Act of 1933 currently in force
(the "Securities Act") or, without prior registration, only on the
basis of an exemption. Unless provided for by certain exceptions
within the Securities Act, the securities named within this
announcement may not be sold or offered for sale in Australia, Canada
or Japan, nor may they be sold or offered for sale to or for account
of residents of Australia, Canada or Japan. No registration of the
offer or sale of the securities named in this announcement will take
place, as stipulated by the relevant statutory provisions in Canada,
Australia and Japan. There is no public solicitation to buy
securities in the United States of America.

Further inquiry note:
Michael Schickling
Head of Investor Relations & Corporate Communications
SHW AG
Telephone: +49 (0) 7361 502 462
Email: michael.schickling@shw.de

end of announcement euro adhoc
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company: SHW AG
Wilhelmstrasse 67
D-73433 Aalen
phone: +49 7361 502-1
FAX: +49 7361 502-674
mail: ir@shw.de
WWW: http://www.shw.de
sector: Automotive Equipment
ISIN: DE000A1JBPV9
indexes:
stockmarkets: free trade: Düsseldorf, Stuttgart, regulated dealing/prime
standard: Frankfurt
language: English