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DGAP-News: Leoni AG: Fiscal 2007 figures exceed initial expectations - dividend increase planned

26.03.2008
Leoni AG / Final Results 26.03.2008 Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. =-------------------------------------------------------------------------- Leoni steers successful growth course Fiscal 2007 figures exceed initial expectations - dividend increase planned Nuremberg, 26 March 2008 - The Leoni Group maintained its course of growth in the 2007 financial year, exceeding its sales and earnings targets set at the beginning of the year. As already announced in preliminary figures, consolidated sales rose by 12.3 percent and thus to a new record level of EUR 2,366.8 million (2006: EUR 2,108 million). Despite substantial pre-production spending on upcoming orders, the earnings before interest and taxes of EUR 129.6 million nearly matched the previous year's high level (of EUR 130.6 million). With an increase of about 9 percent, Leoni generated a new high in net income of EUR 86.2 million (2006: EUR 79.3 million). Free cash flow before spending on acquisitions and the dividend amounted to EUR 100.6 million (2006: 65.9) and was thus well up on projections. Based on these good figures, the Management Board and Supervisory Board will propose to the annual general meeting on 15 May 2008 an increase in the dividend to EUR 0.90 per share (previous year: 0.80). Spending on property, plant and equipment as well as intangible assets rose to EUR 93.7 million in the period under report (EUR 83.7 million in the previous year) and was therefore again well ahead of the depreciation/amortisation of EUR 63.4 million. Both Leoni business divisions boosted their production capacity in 2007: To prepare for new projects from the motor vehicle industry, the Wiring Systems division expanded its facilities outside Germany. The Wire & Cable Solutions division invested above all in new plant to produce special cables. Group-wide, Leoni employed 36,855 people on 31 December (35,129 one year earlier). This increase of about five percent was the result largely of expanded activity in the Wiring Systems division at various facilities and of acquisitions in the Wire & Cable Solutions division. In Germany, the number of employees grew by 183 to 4,060. Record sales and profitable subsidiaries The Wire & Cable Solutions division continued on its course of expansion in the 2007 financial year. Based on positioning in high-growth markets, external sales were up by about 20 percent to the new record level of EUR 1,380.8 million (2006: EUR 1,154.0 million). Leoni's growth in this segment involved special cables and ready-to-connect cable systems for a wide variety of different industrial applications for example in the petrochemical industry, machinery and plant engineering, robotics and automation engineering as well as for complex infrastructure projects. The Wire & Cable Solutions division's earnings before interest and taxes rose by 7 percent to EUR 73.5 million (2006: EUR 68.6 million). The new subsidiaries Leoni Kerpen and Leoni Studer proved to be especially profitable. The division employed 8,411 people on 31 December, which is about 8 percent more than on the same day one year earlier (7,767). Alongside the growth as a result of acquisitions, this included recruitment at various facilities in Germany and China. Preparations for news orders from the motor vehicle industry The Wiring Systems division benefited in the past year from the ongoing trend towards more electronic equipment in cars and thus to more complex wiring systems. The division consequently increased its sales by more than 3 percent to EUR 986.0 million (2006: EUR 954.2 million). Wiring systems and cable harnesses for Mercedes Benz, General Motors and BMW as well as Ford were the main sales drivers. Overall, preparations for extensive new and follow-on contracts from the car and commercial vehicle industry characterised fiscal 2007. As expected, the pre-production spending on stepped-up development work and expansion of production capacity caused the Wiring Systems division's earnings to decline. Strict cost management and the sales increase did, however, ensure that the impact of this was less than planned. Earnings before interest and taxes amounted to EUR 56.7 million (2006: EUR 61.1 million). This includes expenses amounting to EUR 5.8 million for restructuring at various facilities in Germany and abroad. The Wiring Systems division recruited additional staff above all for production in Mexico, Tunisia and the Ukraine and, at the end of the period under report, employed 28,262 people, nearly 4 percent more than one year earlier (27,199). Forecasts for 2008 reaffirmed - significant earnings rise in 2009 The Wire & Cable Solutions division is expected to generate slight sales and earnings increases in the 2008 financial year. Contributing to this will be various larger orders including, among others, from the medical equipment, computer and mechanical engineering industries as well as from a number of transport and infrastructure companies. From today's perspective, this uptrend should continue in 2009. The Wiring Systems division will expand its volume of business significantly in 2008, to approximately EUR 1.6 billion. The new subsidiary Leoni Wiring Systems France (LWS France) will contribute about EUR 0.6 billion to this total. Underpinned by the scheduled ramp-up of numerous large-scale projects, a fresh, considerable upsurge in the Wiring Systems division's sales is likely in fiscal 2009. Earnings before interest and taxes in 2008 should be up slightly on the previous year despite further pre-production spending. LWS France cannot yet be expected to make any significant earnings contribution because of integration costs and write-downs associated with allocation of the purchase price. The work involved in preparing for the new projects and integration of the new French operations is likely for the most part to be completed in the current year. Divisional operating earnings will therefore improve significantly in fiscal 2009. Based on the good prospects for both divisions, Leoni's consolidated sales will increase to at least EUR 3 billion in 2008, with earnings before interest and taxes rising to about EUR 140 million. At Group-level, sales are expected to increase to about EUR 3.3 billion in 2009. Operating earnings should rise disproportionately strongly. Overview of Leoni's consolidated figures 2007 2006 Change EUR million Group external sales EUR 2,366.8 EUR 2,108.2 12.3% million million EBIT EUR 129.6 EUR 130.6 (0.8)% million million Net income EUR 86.2 EUR 79.3 8.7% million million Free cash flow before acquisitions and EUR 100.6 EUR 65.9 52.7% the dividend million million Investment in property, plant and EUR 93.7 EUR 83.7 11.9% equipment as well as intangible assets million million Equity ratio 32.9 % 35.1 % ? Earnings per Share EUR 2.87 EUR 2.64 8.7% Employees (as at 31 December) 36,855 35,129 4.9% The 2007 annual report is available for download at www.leoni.com. LEONI AG Public & Media Relations Phone +49 (0)911-2023-467 Fax +49 (0)911-2023-231 E-mail presse@leoni.com Investor Relations Phone +49 (0)911-2023-274 Fax +49 (0)911-2023-209 E-mail invest@Leoni.com 26.03.2008 Financial News transmitted by DGAP =-------------------------------------------------------------------------- Language: English Issuer: Leoni AG Marienstraße 7 90402 Nürnberg Deutschland Phone: +49 (0)911 20 23-274 Fax: +49 (0)911 20 23-209 E-mail: invest@leoni.com Internet: www.leoni.com ISIN: DE0005408884 WKN: 540888 Indices: MDAX Listed: Regulierter Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart End of News DGAP News-Service =--------------------------------------------------------------------------

Leoni AG / Final Results 26.03.2008 Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. =-------------------------------------------------------------------------- Leoni steers successful growth course Fiscal 2007 figures exceed initial expectations - dividend increase planned Nuremberg, 26 March 2008 - The Leoni Group maintained its course of growth in the 2007 financial year, exceeding its sales and earnings targets set at the beginning of the year. As already announced in preliminary figures, consolidated sales rose by 12.3 percent and thus to a new record level of EUR 2,366.8 million (2006: EUR 2,108 million). Despite substantial pre-production spending on upcoming orders, the earnings before interest and taxes of EUR 129.6 million nearly matched the previous year's high level (of EUR 130.6 million). With an increase of about 9 percent, Leoni generated a new high in net income of EUR 86.2 million (2006: EUR 79.3 million). Free cash flow before spending on acquisitions and the dividend amounted to EUR 100.6 million (2006: 65.9) and was thus well up on projections. Based on these good figures, the Management Board and Supervisory Board will propose to the annual general meeting on 15 May 2008 an increase in the dividend to EUR 0.90 per share (previous year: 0.80). Spending on property, plant and equipment as well as intangible assets rose to EUR 93.7 million in the period under report (EUR 83.7 million in the previous year) and was therefore again well ahead of the depreciation/amortisation of EUR 63.4 million. Both Leoni business divisions boosted their production capacity in 2007: To prepare for new projects from the motor vehicle industry, the Wiring Systems division expanded its facilities outside Germany. The Wire & Cable Solutions division invested above all in new plant to produce special cables. Group-wide, Leoni employed 36,855 people on 31 December (35,129 one year earlier). This increase of about five percent was the result largely of expanded activity in the Wiring Systems division at various facilities and of acquisitions in the Wire & Cable Solutions division. In Germany, the number of employees grew by 183 to 4,060. Record sales and profitable subsidiaries The Wire & Cable Solutions division continued on its course of expansion in the 2007 financial year. Based on positioning in high-growth markets, external sales were up by about 20 percent to the new record level of EUR 1,380.8 million (2006: EUR 1,154.0 million). Leoni's growth in this segment involved special cables and ready-to-connect cable systems for a wide variety of different industrial applications for example in the petrochemical industry, machinery and plant engineering, robotics and automation engineering as well as for complex infrastructure projects. The Wire & Cable Solutions division's earnings before interest and taxes rose by 7 percent to EUR 73.5 million (2006: EUR 68.6 million). The new subsidiaries Leoni Kerpen and Leoni Studer proved to be especially profitable. The division employed 8,411 people on 31 December, which is about 8 percent more than on the same day one year earlier (7,767). Alongside the growth as a result of acquisitions, this included recruitment at various facilities in Germany and China. Preparations for news orders from the motor vehicle industry The Wiring Systems division benefited in the past year from the ongoing trend towards more electronic equipment in cars and thus to more complex wiring systems. The division consequently increased its sales by more than 3 percent to EUR 986.0 million (2006: EUR 954.2 million). Wiring systems and cable harnesses for Mercedes Benz, General Motors and BMW as well as Ford were the main sales drivers. Overall, preparations for extensive new and follow-on contracts from the car and commercial vehicle industry characterised fiscal 2007. As expected, the pre-production spending on stepped-up development work and expansion of production capacity caused the Wiring Systems division's earnings to decline. Strict cost management and the sales increase did, however, ensure that the impact of this was less than planned. Earnings before interest and taxes amounted to EUR 56.7 million (2006: EUR 61.1 million). This includes expenses amounting to EUR 5.8 million for restructuring at various facilities in Germany and abroad. The Wiring Systems division recruited additional staff above all for production in Mexico, Tunisia and the Ukraine and, at the end of the period under report, employed 28,262 people, nearly 4 percent more than one year earlier (27,199). Forecasts for 2008 reaffirmed - significant earnings rise in 2009 The Wire & Cable Solutions division is expected to generate slight sales and earnings increases in the 2008 financial year. Contributing to this will be various larger orders including, among others, from the medical equipment, computer and mechanical engineering industries as well as from a number of transport and infrastructure companies. From today's perspective, this uptrend should continue in 2009. The Wiring Systems division will expand its volume of business significantly in 2008, to approximately EUR 1.6 billion. The new subsidiary Leoni Wiring Systems France (LWS France) will contribute about EUR 0.6 billion to this total. Underpinned by the scheduled ramp-up of numerous large-scale projects, a fresh, considerable upsurge in the Wiring Systems division's sales is likely in fiscal 2009. Earnings before interest and taxes in 2008 should be up slightly on the previous year despite further pre-production spending. LWS France cannot yet be expected to make any significant earnings contribution because of integration costs and write-downs associated with allocation of the purchase price. The work involved in preparing for the new projects and integration of the new French operations is likely for the most part to be completed in the current year. Divisional operating earnings will therefore improve significantly in fiscal 2009. Based on the good prospects for both divisions, Leoni's consolidated sales will increase to at least EUR 3 billion in 2008, with earnings before interest and taxes rising to about EUR 140 million. At Group-level, sales are expected to increase to about EUR 3.3 billion in 2009. Operating earnings should rise disproportionately strongly. Overview of Leoni's consolidated figures 2007 2006 Change EUR million Group external sales EUR 2,366.8 EUR 2,108.2 12.3% million million EBIT EUR 129.6 EUR 130.6 (0.8)% million million Net income EUR 86.2 EUR 79.3 8.7% million million Free cash flow before acquisitions and EUR 100.6 EUR 65.9 52.7% the dividend million million Investment in property, plant and EUR 93.7 EUR 83.7 11.9% equipment as well as intangible assets million million Equity ratio 32.9 % 35.1 % ? Earnings per Share EUR 2.87 EUR 2.64 8.7% Employees (as at 31 December) 36,855 35,129 4.9% The 2007 annual report is available for download at www.leoni.com. LEONI AG Public & Media Relations Phone +49 (0)911-2023-467 Fax +49 (0)911-2023-231 E-mail presse@leoni.com Investor Relations Phone +49 (0)911-2023-274 Fax +49 (0)911-2023-209 E-mail invest@Leoni.com 26.03.2008 Financial News transmitted by DGAP =-------------------------------------------------------------------------- Language: English Issuer: Leoni AG Marienstraße 7 90402 Nürnberg Deutschland Phone: +49 (0)911 20 23-274 Fax: +49 (0)911 20 23-209 E-mail: invest@leoni.com Internet: www.leoni.com ISIN: DE0005408884 WKN: 540888 Indices: MDAX Listed: Regulierter Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart End of News DGAP News-Service =--------------------------------------------------------------------------

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