CENTROTEC sets new revenue record in first quarter - Organic growth reaches 9 %

Brilon, May 12, 2011: the SDAX-listed company CENTROTEC Sustainable AG generated record revenue of EUR 112.3 million in the first quarter of 2011. Compared with the previous record from one year earlier (EUR 103.1 million), this represents organic growth of 8.9 %. This development was underpinned especially by 13.9 % revenue growth for the largest segment, Climate Systems, to EUR 76.5 million (previous year EUR 67.2 million), which was accompanied by growing market shares and profit margins. The Medical Technology & Engineering Plastics segment, too, bettered the previous revenue record from 2008 with 26.2 % revenue growth to EUR 10.7 million (previous year EUR 8.5 million). Compared with the very strong prior-year quarter, revenue for the Gas Flue Systems segment was down 8.7 % to EUR 25.0 million (previous year EUR 27.4 million), mainly as a result of weaker French business.

The operating result for the group is traditionally not particularly meaningful in the first quarter because of the strong seasonal factors at work. Earnings were influenced by shifts in the product mix and by substantial rises in commodity prices over the past few months. The ongoing drive to improve earnings throughout the group, the price adjustments that have been pushed through and the reduced personnel expenses ratio nevertheless compensated in part for this effect. EBITDA of EUR 8.6 million for the first three months of 2011 was consequently only 7.7 % down on the record figure from the previous year (EUR 9.3 million). EBIT reached EUR 4.0 million (previous year EUR 5.1 million). Earnings per share (EPS) were down at EUR 0.09 (previous year EUR 0.19), among other reasons because the investment result was slightly negative, in contrast to the prior-year quarter. For the full year and beyond, the prospects of the CENTROTEC Group have improved further thanks to its stronger market position, the improved environment for energy-saving solutions created by the current energy policy debate, and the general trend in energy prices. In Germany, the financial incentive for solar collectors, heat pumps, biomass boilers and condensing boilers was substantially increased in March. It has also recently been possible to push through noteworthy price increases. Against this backdrop, CENTROTEC confirms the full-year forecast of consolidated revenue amounting to EUR 520 to 535 million and expectations of an operating result (EBIT) of EUR 40 to 42 million, which would equate to earnings per share (EPS) of EUR 1.70 to 1.80. Further technologically appropriate acquisitions that fit in with CENTROTEC’s buy and build strategy are moreover conceivable in the remaining part of the year. The steady improvement in the group’s financial situation in recent years gives it the necessary leeway for such moves. The prospect of the company’s first ever distribution of a dividend of EUR 0.10 per share following the Shareholders’ Meeting on May 26 is also to be considered in this context.