Bavaria Industriekapital AG publishes the first quarter results

25 mei 2009Corporate news announcement processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- -------------- Monday, 25 May 2009: The portfolio companies of BAVARIA Industriekapital AG were unable to escape the impact of the economic crisis in first quarter 2009. Turnover declined by 18% to EUR 95.8 million compared to the first quarter of the previous year. If the changes to the scope of the consolidation are not taken into consideration, then there was actually a 31% decrease in turnover to be reported as compared to the first quarter of the prior year. The EBITDA of the operating companies declined from plus EUR 4.6 million a year ago to minus EUR 4.9 million in the current year. With a comparable scope of consolidation, the EBITDA of minus EUR 5.5 million was even somewhat less. The K + S Group and the Fonderie du Poitou in particular were unable to repeat their strong earnings performance of the previous year. Appropriate cost-savings measures have already been implemented, but will not become fully effective until sometime in the second quarter. The development of financial resources mirrored the operating performance. The BAVARIA Group had cash and cash equivalents of EUR 54.1 million as at 31 March 2009, compared to EUR 62.9 million as at 31 December 2008. The amount of debt owed to banks increased at the same time from EUR 8.8 million as at 31 December 2008 to EUR 16.1 million as of 31 March 2009, which is due primarily to the funding of investments by the K+S Group. Of these liabilities to banks, EUR 7.2 million, or almost one half, is attributable to the new equity interest in Hunsfos. Cost-cutting drives were approved at the end of 2008 and in first quarter 2009, the effects of which will be apparent only at a later time. Long-term material orders, for example, were unable to be adjusted to the decline in demand. The group does however expect to see these measures having a significant effect on earnings and financial resources as early as in second quarter 2009, such as a reduction in already ordered inventories improving the second-quarter liquidity. The portfolio companies of BAVARIA are using a variety of measures to master what is a difficult economic environment. The BAVARIA group expects clear positive results for the full 2009 year thanks to a number of different marketing activities, a program of strict cash management (e.g. optimizing the working capital) and additional cost savings. And finally, another important factor is that after acquisition by BAVARIA, the portfolio companies did not need to take on any additional debt and hence do not have any structural problems of a financial nature. BAVARIA Industriekapital AG is an industrial holding company which acquires low-profit companies throughout Europe. Through active restructuring and revitalization management it ensures the long-term success of the companies acquired. The majority of the stock of BAVARIA Industriekapital AG is family-owned and the company has been listed on the Entry Standard All Share Index of the German Stock Exchange since 2006. At present BAVARIA Industriekapital AG has holdings in ten companies and around 3,000 employees. In 2008 the group turnover amounted to Euro 485 million and the group profit to Euro 23 million. For additional information about BAVARIA Industriekapital, please visit our website at www.baikap.de We would be pleased to answer any further questions you may have: BAVARIA Industriekapital AG Svea Strohm Bavariaring 24 80336 München Phone: + 49 - (0)89/ 72 98 967-0 Fax: + 49 - (0)89/ 72 98 967-10 E-Mail: svea.strohm@baikap.de --- End of Message --- BAVARIA Industriekapital AG Bavariaring 24 München Germany WKN: 260555; ISIN: DE0002605557; Listed: Entry Standard in Frankfurter Wertpapierbörse, Freiverkehr in Bayerische Börse München, Freiverkehr in Börse Berlin, Freiverkehr in Börse Düsseldorf, Freiverkehr in Börse Stuttgart, Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr in Niedersächsische Börse zu Hannover;