2016 annual financial statements published

Kölleda, 26 April 2017 - Funkwerk AG achieved its goal of further consolidating its business development in 2016. Consolidated sales increased by 1TP9k to €77.4m (previous year: €75.7m) compared to the previous year and exceeded the forecast, which assumed a stabilisation at the 2015 level. The operating result increased by EUR 14.8 1TP9 thousand to EUR 5.4 million (previous year: EUR 4.7 million) and was therefore well above the forecast of EUR 4 million. The earnings situation was also influenced by the invoicing of major projects that were successfully completed in 2016. Earnings after taxes totalled EUR 4.1 million in 2016. The previous year's high figure of EUR 12.3 million included one-off positive tax effects totalling EUR 9.1 million. All prior-year figures were adjusted for the Security Technology division, which was sold in the 2015 financial year.

The basis for the solid business performance was the further strengthening of the Funkwerk Group's technological expertise and the securing and expansion of its leading market position in some areas. In the train radio segment, the company benefited above all from the success of its innovative, interference-resistant radio module, for which follow-up orders have already been received following a major project in the Netherlands that was completed in 2016. Due to a change in legislation, demand is expected to continue to grow here, as new approvals for radio systems in rail transport will only be granted with interference-resistant filter modules to protect communication from the effects of other radio networks in future. Funkwerk AG was also able to further develop its expertise and win new orders in the areas of passenger information and video systems. The focus was on integrated information and security systems that provide travellers with comprehensive information and advice and take account of the increased need for security worldwide.

In total, the Funkwerk Group's incoming orders totalled EUR 80.5 million in the reporting year. The previous year's figure of EUR 82.0 million included the major order in the train radio sector from the Netherlands. The order backlog as at 31 December increased slightly from EUR 49.0 million to EUR 49.9 million. Among other things, it includes an order from Deutsche Bahn AG for 700 new train radio systems, which will be used in the three series of the Berlin S-Bahn in 2017 and 2018.

As a result of the good earnings performance, the Funkwerk Group's net assets and financial position were further stabilised in 2016. The equity ratio increased from 35.2 % to 39.2 % due to the improved result and cash and cash equivalents grew from 8.1 million euros to 10.1 million euros.

In the 2017 financial year, Funkwerk expects group-wide sales of around €77 million and an operating result of around €4 million. The improved profitability, in particular due to the further expansion of the software business, will be offset by the absence of the earnings effects from the invoicing of major orders recognised in 2016. The financial position and net assets will continue to improve.