Annual financial statements 2014 published

Kölleda, 22 April 2015 -Funkwerk AG's consolidated sales totalled €94.0 million in the 2014 financial year and thus remained stable at the previous year's level of €94.1 million, which was adjusted for the parts of the company sold in the reporting year. In 2014, the Group completed the sale of Funkwerk eurotelematik GmbH in Ulm and the operations control and signalling technology business unit at the former Kiel site. In addition, the sale of the Security Technology division in Salzgitter was notarised with effect from 1 January 2015. This business division is still included in the 2014 figures, which were prepared in accordance with the German Commercial Code (HGB) following the switch to over-the-counter trading in 2013, as the transfer in rem will not take place until 2015.

The operating result rose year-on-year from 1.1 million euros to 1.4 million euros. In addition to the improvement in profitability achieved in recent years through the extensive restructuring programme, the higher proportion of high-margin products, which is also attributable to the realignment, also contributed to this. The net result improved from € -3.8 million to € -1.8 million in 2014. The Funkwerk Group's net assets and financial position are solid. The equity ratio totalled 18.2 % (previous year unadjusted: 17.4 %) and the operating cash flow increased to € 4.1 million (previous year unadjusted: € -6.4 million). Working capital was reduced by EUR 5.9 million to EUR 28.0 million.

Despite the difficult conditions in 2014, which were characterised by Deutsche Bahn AG's extremely reluctance to invest and a sharp decline in business with Russia, Funkwerk consistently pursued the realignment it had initiated and made significant progress. In addition to the sales, which allow the company to focus more on its core business, the technological pioneering role in individual niche markets was consolidated through targeted development activities. At the same time, the targeted internationalisation was advanced in 2014, particularly in the Infrastructure and Rolling Stock business fields, and new countries were opened up and additional customers acquired abroad. In addition, production in the Funkwerk Group was concentrated at the Kölleda site, which made a significant contribution to optimising cost structures and increasing efficiency in production.

In the current financial year 2015, Funkwerk - excluding the safety technology division at the Salzgitter site - expects consolidated sales of around € 75 million to € 80 million and a further improvement in earnings. From today's perspective, the operating result will reach around €3 million. As part of the ongoing consolidation of the Funkwerk Group, corporate reorganisations within the Group are planned for the current financial year in order to further improve processes.