Roth & Rau AG

Roth & Rau announces preliminary consolidated results for the 2010 financial year

editor, 23 February 2011

- Sales growth of 35.9 % to € 268.9 million

- EBIT of € -25.9 million after special items

- Strategic focus on single equipment business resolved

Hohenstein-Ernstthal, 23 February 2011 – Based on preliminary figures, the Roth & Rau Group generated sales of € 268.9 million in the past 2010 financial year. This corresponds to growth of 35.9 % on the previous year’s figure of € 197.9 million. The Group’s order situation also developed dynamically, with new orders rising by 103.9 % to € 399.1 million (previous year: € 195.7 million). Orders on hand therefore totalled € 335.0 million as of 31 December 2010 (previous year: € 204.8 million). This development has been driven above all by the highly successful market launch of the new SiNA generation. The strong level of demand for production equipment has also continued in the first quarter. New orders totalling € 49.7 million had been received by 18 February, of which around 75 % were for single equipment and around 15 % for service and spare parts.

The Group’s earnings performance in the past year > affected by special items of around € -51.2 million (of which € 42.9 million under EBIT and € 8.3 million under net financial expenses). As a result, preliminary earnings before interest and taxes (EBIT) amounted to € -25.9 million in the 2010 financial year (previous year: € 16.1 million). EBIT before special items amounted to € 17.0 million.

The special items related to impairment losses of around € 8.5 million already recognised for turnkey projects as of 30 September 2010 and of around € 12.5 million (of which € 4.2 million under EBIT and € 8.3 million under net financial expenses) due to the risk of insolvency at the US customer SpectraWatt. Both developments were already announced as soon as they arose. Moreover, the Group has also recognised further impairment losses of € 11.0 million in connection with existing turnkey projects and provisions of € 9.6 million for legal and tax risks relating to major projects still underway. Furthermore, as part of a new strategic alignment that, among other aspects, involves streamlining the Group’s product portfolio, the Management Board has discontinued activities in specific product groups and thus also in related development projects. This made it necessary to recognise further, one-off impairment losses of around € 3.1 million.

One major one-off item of € 6.5 million also resulted from the necessary conversion of the accounting treatment of SiNA series single equipment from the percentage of completion method to measurement at cost, which will involve the respective profit being deferred to the 2011 financial year.

One major one-off item of € 6.5 million also resulted from the necessary conversion of the accounting treatment of SiNA series single equipment from the percentage of completion method to measurement at cost, which will involve the respective profit being deferred to the 2011 financial year.

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