Adval Tech : Turnaround at EBIT level

Adval Tech Holding Ltd

Freiburgstrasse 556

CH-3172 Niederwangen

Telephone +41 31 980 84 44

Fax +41 31 980 82 60 info@advaltech.com www.advaltech.com

Annual results 2013:

As part of the focusing strategy approved in 2012, the Adval Tech Group has simplified its organizational structure and is now concentrating its energies in clearly defined areas of business. In the field of components, Adval Tech focuses on the automotive market and on related applications. Adval Tech's principal markets in the mold-making segment are consumer and personal care, packaging, medical and automotive. One result of the focusing strategy was the merger of the sites in China: in 2013, Adval Tech closed down components production in Xiamen and mold-making operations in Shanghai and concentrated all operations in Suzhou. Additionally, Adval Tech sold its site in Querétaro (Mexico) as well as the medical technology production activities in Suzhou.

At CHF 278.8 million, the Adval Tech Group's total income for 2013 fell by only 0.3% compared with the previous year's figure of CHF 279.6 million. The Group generated around 70% of sales in the Components segment and around 30% in the Molds segment.
Despite the deconsolidation of the two companies sold, 2013 saw the Adval Tech Group increase its operating earnings before depreciation (EBITDA) by more than 50% to CHF 25.7 million (2012: CHF 16.9 million), and the EBITDA margin rose from 6.0% to 9.2%. EBIT improved from CHF -3.5 million in 2012 to CHF +6.5 million in 2013. The largest contributions to this positive performance came from the Swiss company Styner+Bienz FormTech AG in the Components segment and FOBOHA GmbH (Germany) in the Molds segment.
The Group posted a clearly negative net result of CHF -22.0 million (2012: -15.4 million) which is mainly due to the liquidity-neutral effects of the deconsolidation of companies disposed of. In the year under review, Adval Tech reduced its debt in line with its target. In July 2013, the Group sold its business in Mexico (Omni Manufacturing Services S.A. de C.V., Querétaro) and its medical technology activities in China (Adval Tech Medical (Suzhou) Co. Ltd.) to the US company Phillips- Medisize. Adval Tech was also able to sell the properties no longer required for operations in Muri (Canton Aargau, Switzerland) and Xiamen (China). In total, Adval Tech reduced its debt by
CHF 37.4 million during the period under review. This puts the Group in a much better starting position for its future development.

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In the Components segment (metal and plastic) total income of CHF 193.7 million was around CHF 25 million below the previous year's figure of CHF 218.3 million. In currency-adjusted terms, the decline was negligibly smaller. This reduction is primarily attributable to the sale of the two companies in China and Mexico and to the portfolio adjustments which have been initiated in China (plastic) and Hungary (metal). The cost-cutting programs enabled the segment to raise its EBITDA to CHF 11.7 million (2012: CHF 10.5 million) and this despite the fact that the disposals led to the loss of a substantial part of its sales.
With total income of CHF 89.7 million, the Molds segment exceeded the prior-year figure of CHF 67.6 million by more than 30%. The segment increased its EBITDA by CHF 8.0 million to CHF 12.1 million (2012: CHF 4.1 million). Group company FOBOHA in Germany was able to exploit in particular the backlog demand in the US market and posted a significant improvement in
earnings. The restructuring measures in the mold-making operations in Switzerland and the merger of the two mold-making sites in China also had a positive impact on the segment's results.
Adval Tech will provide detailed information on the annual financial statements and an initial review
of the Group's development in the current year at its press conference in Zurich on Tuesday, April
29, 2014. The Annual General Meeting of Adval Tech Holding Ltd will be held on May 22, 2014.

Adding value through innovation - that's what Adval Tech stands for. As a global technology and process partner Adval Tech focuses on the complementary technologies of metal stamping and forming and plastic injection molding. In selected markets in the automotive, medical technology and consumer goods sectors, Adval Tech is a leading global supplier of series parts, subassemblies, systems and tools. As a supplier and value-adding partner, Adval Tech covers the entire value chain: from product design and the development of series parts through construction and production of the necessary tools and molds to entire production systems and the resulting manufacture of components.

Markus Reber, CFO, phone +41 31 980 82 70; markus.reber@advaltech.com Valeria Poretti, Head Corporate HR/Communication, phone +41 31 980 82 66; valeria.poretti@advaltech.com

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http://www.advaltech.com/en/group/for-investors/company-news/ad-hoc-notices.html

April 29, 2014 - Media release: Publication of the annual report 2013
April 29, 2014 - Conference for financial analysts, ConventionPoint, SIX, Zurich
April 29, 2014 - Press conference, ConventionPoint, SIX, Zurich May 22, 2014 - General Meeting of Shareholders in Berne August 2014 - Announcement of semi-annual results 2014

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

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