EANS-Adhoc: Mikron Holding AG / Mikron achieves further earnings growth

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Annual Reports
18.03.2013

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This media release can be downloaded as a PDF file: www.mikron.com/news
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Media release on Annual Report 2012

Mikron achieves further earnings growth

Biel, 18 March 2013, 7:00 a.m. The Mikron Group has once again
increased its profitability in the 2012 financial year, posting sales
of CHF 235.3 million (previous year: CHF 210.9 million, +12%) and
EBIT of CHF 11.2 million (previous year: CHF 9.4 million, +19%). For
the current year, Mikron expects a further slight improvement in EBIT
margin.

In a difficult environment for the Swiss export industry with the
Swiss franc remaining strong and demand for capital goods weakening
in the second half of the year, the Mikron Group achieved further
earnings growth. Due to improved profitability, and as the balance
sheet remains very sound, the Board of Directors will be proposing a
distribution of CHF 0.15 per share to the Annual General Meeting
(prior year: CHF 0.12).

Order intake and net sales Demand for Mikron Group products remained
healthy in 2012. Compared to the previous year, the Mikron Group
increased its order intake by 5% to CHF 236.3 million (prior year:
CHF 225.0 million). In terms of sales, Mikron posted a 12% rise to
CHF 235.3 million (previous year: CHF 210.9 million). Adjusted for
acquisitions - factoring out sales by Mikron Berlin - Mikron
increased its net sales by 5%. The automotive as well as the
pharmaceutical and medical devices industries are Mikron's key
markets, accounting for a total of two-thirds of sales. Some 80% of
orders in 2012 came from European customers, although Mikron also
achieved good results in other regions during the reporting year. For
example, the Automation segment acquired a number of new customers in
the USA with the potential for future orders, and booked a total of
47% more orders compared with 2011. The Machining segment, which
began 2012 with a strong order backlog, received significantly fewer
orders in the second half of the year, resulting in falling net sales
in the fourth quarter, especially in the tools business.

Profitability Thanks to a good second half of 2012, the Mikron Group
improved the EBIT by 19% to CHF 11.2 million (prior year: CHF 9.4
million) or 4.8% of sales. While the Machining business segment once
again increased its profitability with an EBIT margin of 7.4%,
operating profit in the Automation business segment remains
unsatisfactory with a loss of CHF -1.6 million. Currency-related
competitive disadvantages, delays and extra costs in some projects,
and the insufficient level of capacity utilization in the first half
of 2012 had a distinctly negative impact on the profitability of the
Automation business.

Net earnings and shareholders' equity Factoring in the financial
results and income taxes, Mikron's net earnings for 2012 were CHF 8.5
million (prior year: CHF 7.1 million,+ 20%). The equity ratio remains
very sound at 66%.

Cash flow The Mikron Group again increased its operational cash flow
in 2012, which stood at CHF 9.8 million. These funds were used during
the year under review to finance infrastructure projects, the
modernization of machinery, innovations, the acquisition of IMA
Automation Berlin and the distribution to shareholders. Even though
the company's cash and cash equivalents decreased by CHF 0.6 million
during the reporting year, the Mikron Group is still essentially
debt-free.

Outlook The general economic trend remains uncertain for 2013. Mikron
is anticipating stagnation in Europe together with slight growth in
Asia and the USA. Furthermore, the Group assumes steady demand in the
pharmaceutical and medical devices industries, with a short- to
medium-term downturn in the European automotive segment. Based on the
stronger order backlog in the Automation segment, Mikron expects
sales in 2013 to be on a par with 2012, with a slight improvement in
EBIT margin.

Key figures for the Mikron Group in 2012

CHF million
(except number of employees)

2012 2011 +/-

Order intake 236.3 225.0 5%
- Machining 123.6 148.3 -17%
- Automation 113.0 77.1 47%
Net sales 235.3 210.9 12%
- Machining 134.3 123.3 9%
- Automation 101.2 88.1 15%
Order backlog 109.5 95.9 14%
- Machining 51.2 61.7 -17%
- Automation 58.3 34.2 71%
Number of employees 1093 972 12%
- Machining 535 512 5%
- Automation 554 455 22%
EBIT 11.2 9.4 19%
- Machining 9.9 7.1 39%
- Automation -1.6 0.1 n.a.
Profit for the year 8.5 7.1 20%

Operating cash flow 9.8 8.0 23%
Balance sheet total 231.1 219.1 6%
Shareholders' equity 66.2% 67.6% 3%

Publication of annual results for 2012 The annual results will be
published at the same time as this media release in the form of the
2012 Annual Report: www.mikron.com/reports

end of ad-hoc-announcement ==========================================
====================================== Brief profile of the Mikron
Group The Mikron Group markets machining and automation solutions,
enabling customers around the world to master their precision
manufacturing processes. Rooted in a culture of Swiss innovation,
Mikron is a leading supplier to the automotive, medical devices,
pharmaceutical, consumer goods, writing instruments and watch-making
industries. The two divisions, Mikron Automation and Mikron
Machining, are based in Boudry and Agno, Switzerland, with additional
facilities in Germany, Singapore, China and the United States. The
Mikron Group employs approximately 1100 people who work to provide
Mikron customers with an experience that reflects over 100 years of
leadership in high-performance and high-precision production.

Investor Relations Calendar of Events
9 April 2013, 4.00 p.m. - Annual General Meeting 2013, Biel
19 July 2013, 7.00 a.m. - Media release: Semiannual results 2013

Except for the historical information contained herein, the
statements in this media release are forward-looking statements that
involve risks and uncertainties.

Mikron® is a trademark of Mikron Holding AG, Biel (Switzerland).

Further inquiry note:
Mikron Management AG, Martin Blom, Chief Financial Officer
Phone +41 62 916 69 60, ir.mma@mikron.com

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end of announcement euro adhoc
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issuer: Mikron Holding AG
Mühlebrücke 2
CH-2502 Biel
phone: +41 32 321 72 00
FAX: +41 32 321 72 01
mail: mho@mikron.com
WWW: www.mikron.com
sector: Machine Manufacturing
ISIN: CH0003390066
indexes: SPI, SPIEX, SPI ex SLI
stockmarkets: Domestic Standard: SIX Swiss Exchange
language: English