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Monday 25 May, 2009

BAVARIA Industriekapital AG

Bavaria Industriekapital AG publishes the first...



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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: [email protected]


 
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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;




                                                                                                                                                           

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