Funkwerk AG with favourable business performance in the first half of 2015

Kölleda, 13 August 2015 - The Funkwerk Group has made a promising start to 2015, with the concentration of resources on core business areas and high-margin products making a particular contribution to this. The Funkwerk Group's incoming orders increased to €50.8 million in the first half of the year, exceeding both the previous year's figure of €47.2 million and the budget. The major order from the Dutch telecommunications group KPN was particularly noticeable. It concerns a new GSM-R radio system for the Dutch railway NSR, in which the innovative, interference-resistant MT5E radio module is integrated, which shields communication in the train from all radio interference from public radio networks. With this project, the Funkwerk Group can further expand its leading technological position in the field of GSM-R train radio systems and expects further follow-up orders. In addition, orders for deliveries to the African continent, France and the UK as well as follow-up orders from German-speaking countries were received in the first half of 2015. Compared to 30 June 2014, the Group-wide order backlog increased to EUR 64.2 million (previous year: EUR 62.6 million).

Group sales totalled 37.7 million euros in the reporting period (previous year: 39.4 million euros) and were therefore around 4.4 % below the corresponding figure for the previous year, in which around 5 million euros from a major order for the delivery of train radio systems to Australia had been recorded. This figure still includes the Security Technology division, the majority of which was sold at the end of 2014, as the transaction had not yet been finalised at the end of June 2015.

The consolidated result benefited above all from the improved product mix and the higher proportion of service sales. In addition, other operating expenses fell from €7.3 million to €5.9 million, as the measures of the restructuring programme are now taking full effect. Overall, Funkwerk reported an operating result of € -2.9 million in the first six months of 2015 after € -4.0 million in the same period of the previous year. The result from ordinary activities improved from € -4.8 million to € -3.4 million and the result for the period after taxes to € -3.7 million. The previous year's figure of -2.6 million euros included positive effects from company disposals totalling around 2.2 million euros.

The development of the financial position and net assets remained in line with expectations in the first six months of 2015. Despite the net loss for the period, the Funkwerk Group received funds totalling €0.2 million from operating activities up to the end of June, following an outflow of €0.1 million in the same period of the previous year. The equity ratio decreased to 1TP9k 12.8 (31 December 2014: 1TP9k 18.2) due to the net loss for the year.

The forecast for 2015 as a whole remains unchanged: In terms of consolidated sales, Funkwerk anticipates a slightly lower volume of around EUR 75 to 80 million (2014: EUR 94.1 million) - excluding the Safety Technology division - due to the reduced scope of consolidation. The operating result is expected to improve significantly to around EUR 3 million (2014: EUR 1.4 million).