EANS-News: S&T AG achieves rises in sales and earnings in the first six months of 2015 - gross margin increasing strongly

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6-month report

* Sales rise by 14% to EUR 188.2 million (PY: EUR 164.8 million) *
Gross margin increases to 36.6% (PY: 32.9%) * Consolidated income
rises by 21% to EUR 6.0 million (PY: EUR 4.9 million) * Orders
backlog grows even larger to EUR 171.8 million (PY: EUR 106.5
million)

Linz, 05.08.2015. S&T AG (www.snt.at) was able to accelerate its
growth of sales and earnings in the second quarter of 2015. Sales
increased to EUR 95.4 million, as opposed to EUR 85.6 million in the
previous year's period of comparison, corresponding to a rise of
11.5%. Corresponding to the growth in sales, gross margin rose even
more strongly, climbing to EUR 35.5 million (37.2%), as opposed to
EUR 28.5 million (33.3%) in 2014. The growth joined with the costs
whose increase arose from the entry into the smart energy market in
enabling the achieving of an EBITDA of EUR 5.0 million, as opposed to
EUR 5.2 million in the previous year. The consolidated income
amounted to EUR 3.3 million, as opposed to EUR 2.5 million in 2014.
Sales in the first six months of 2015 came to EUR 188.2 million, as
opposed to EUR 164.8 million in the previous year's period of
comparison. Manifesting the portfolio mix, which is heavy on
higher-margin items, gross margin amounted to EUR 69.0 million
(36.6%), as opposed to EUR 54.2 million (32.9%) in the first six
months of 2014. EBITDA increased to EUR 10.8 million (PY: EUR 10.0
million). This led as a whole to a 21% rise in consolidated income,
which amounted to EUR 6.0 million (PY: EUR 4.9 million). Earnings per
Share amounted to 13 cents, as opposed to 12 cents in the first half
of 2014. Strongest driver of growth were the "Appliances Security"
and "Appliances Smart Energy" segments. This was partially caused by
the acquisitions made in 2014. In the first six months of 2015, the
sales achieved in the two segments increased from EUR 26.2 million to
EUR 54.6 million. "Appliances Smart Energy" as a new segment
recorded start-up-losses of EUR 1.0 million in the first six months
of 2015, after it recorded profits of EUR 0.1 million in the previous
year's period of comparison. The "Appliances Security" segment,
conversely, recorded profits - EUR 4.8 million (PY: EUR 3.9 million)
- exceeding those planned for it. The positive development in the
"Services Eastern Europe" segment will accelerate in the months to
come. This is due to the large amount of orders booked in the second
quarter. The "Services Germany, Austria and Switzerland" segment
registered in the first six months of 2015 - in a change - positive
operating results. This result came despite its sales having declined
- as had been planned - by EUR 8 million (less low-margin hardware).
The operative cash flow came in the second quarter to EUR 16.0
million. This enabled the near-offsetting of the negative cash flow
registered in the first quarter of EUR 17.0 million. Cash and cash
equivalents amounted to EUR 36.9 million, as compared to EUR 39.5
million as of 31.12.2014 and EUR 26.8 million as of the commencement
of the quarter. Financial liabilities came to EUR 47.8 million
(31.12.2014: EUR 41.0 million and EUR 47.1 million as of the
beginning of the quarter), whereas next to the acquisitions
investments into the company's headquarters had been paid from
existing cash and credit lines. The equity increased as of 30.6.2015
to EUR 93.0 million, as opposed to EUR 89.7 million as of 31.12.2014.
The equity rate amounted to 35.8% (31.12.2014: 32.9%). The growth
being registered by the "Appliances Security" and "Appliances Smart
Energy" technology segments is causing management to expect for the
current financial year for the Group as a whole a strong 20% rise in
sales, which will come to EUR 465 million. Also forecast for
financial year 2015 is a consolidated income of EUR 15 million -
notwithstanding start-up losses being experienced in the smart energy
segment. Planned for 2016 are double-digit sales growth and profits
outpacing that rise. The orders backlog has increased still further,
and now comes to EUR 172 million. The amount of projects in the
pipeline amounts to EUR 708 million - a record. These facts emphasize
the feasibility of these ambitious objectives for growth.

On S&T AG: S&T AG (www.snt.at, ISIN AT0000A0E9W5, WKN A0X9EJ, SANT)
is a high-tech corporation. It employs some 2,300 employees, and
maintains subsidiaries and offices in 19 countries. S&T AG provides
IT systems. It is listed on the Frankfurt Stock Exchange's Prime
Standard segment. These systems are comprised in the company's
comprehensive portfolio of IT solutions and services. These make S&T
one of the leading suppliers in Central and Eastern Europe. S&T is a
renowned manufacturer of products featuring proprietary technologies.
Its wide- ranging portfolio includes proprietary developments in such
areas as appliances and cloud security. S&T commenced in 2014 the
development of its Smart Energy business area. Especially thanks to
its Networked Energy Services Corporation, S&T is among the world's
leading suppliers of smart grid technologies.

Further inquiry note:
ir@snt.at; +431801911125;

end of announcement euro adhoc
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company: S&T AG
Industriezeile 35
A-4021 Linz
phone: +43 664 6119214
FAX: +43 1 80191 1290
mail: ir@snt.at
WWW: www.snt.at
sector: Computing & Information Technology
ISIN: AT0000A0E9W5, DE000A1HJLL6
indexes:
stockmarkets: regulated dealing/prime standard: Frankfurt
language: English