Annual financial statements 2015 published

Kölleda, 22 April 2016 -Funkwerk AG made visible progress in pursuing its goals in the 2015 financial year: Although the general conditions were once again difficult, the company was able to both increase its business volume and significantly improve its earnings situation. Consolidated sales from continuing operations calculated in accordance with the German Commercial Code (HGB) rose by 3.5 % to EUR 75.7 million (previous year: EUR 73.2 million). The 2015 and previous year's figures were adjusted for the Security Technology division, the majority of which was sold in the reporting year, in order to provide a forward-looking picture of business development in the future Group structure. Without adjustment, the Funkwerk Group reported slightly higher sales of € 95.1 million in 2015 (previous year: € 94.1 million).

Group-wide adjusted incoming orders increased significantly in the past year: Funkwerk received new orders totalling €82.0 million in 2015 compared to €70.1 million in the previous year. The main reason for this was a major order from the leading Dutch telecommunications group KPN, which includes the conversion of all train radio systems in Dutch passenger transport to a newly developed GSM-R radio system to shield communication from radio interference. The Group's adjusted order backlog grew from € 42.7 million at the end of 2014 to € 49.0 million.

The adjusted operating result improved by 31.2 % to 4.8 (previous year: 3.7) million euros in the reporting year. In addition to the higher sales volume, the expansion of the higher-margin software business and the numerous cost savings implemented contributed to this. Positive tax effects totalling EUR 8.5 million (previous year: EUR -0.1 million) had a noticeable impact on net earnings, which rose from EUR 1.7 million to EUR 12.3 million in continuing operations. On the one hand, they resulted from the changes implemented in 2015 under conversion law, which enabled tax loss carryforwards to be utilised and deferred taxes of € 4.7 million to be capitalised in the income statement. Secondly, Funkwerk ended a tax court dispute that had been ongoing for several years, which resulted in further positive tax effects. Including the divested divisions, the Group's net profit for 2015 totalled EUR 7.5 million after a loss of EUR 1.8 million in the previous year.

The Funkwerk Group's net assets and financial position were also further stabilised in 2015. The equity ratio increased to EUR 35.2 1TP9k (31 December 2014 unadjusted: EUR 18.2 1TP9k) due to the improved result. Working capital decreased by € 40.7 % to € 16.6 million (previous year: € 28.0 million) as at the reporting date, while cash and cash equivalents increased by € 2.5 million to € 6.2 million (previous year: € 3.7 million) compared to the end of 2014.

In the 2016 financial year, Funkwerk expects consolidated sales to remain stable compared to 2015 with an operating result of at least EUR 4 million.