Feintool International Holding (VTX:FTON) Feintool Achieves Significant Increase In Results - In Strong Position With Solid Balance Sheet Structure

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Results for the 2007/08 financial year

The Feintool technology group, based in Lyss (Switzerland), has reported a significant increase in sales, earnings and net income for the 2007/08 financial year (ended 30 September). Sales increased by CHF 48.8 million or 9.4% to CHF 569.2 million (previous year: CHF 520.4 million) and EBIT by 31.4% to CHF 33.9 million - equivalent to 6.0% of sales. Consolidated net income rose by 70.3% to CHF 20.1 million (previous year: CHF 11.8 million). Net debt was reduced by a further CHF 30 million to CHF 57.9 million (previous year: CHF 88.0 million), while shareholders' equity rose by 7.0% to CHF 204.6 million - giving an equity ratio of 43,1% (previous year: 41.5%).

The Feintool Group can look back on its by and large most successful financial year at operating level since the IPO in 1998. Despite one-time costs of around CHF 2,5 million in connection with structural improvements, the Group was able to achieve a significant increase in sales and earnings thanks to still relatively buoyant economic conditions during the first three quarters, a healthy level of orders in hand at the start of the financial year, and an attractive range of products and services that provide a high degree of customer benefit. Following a further increase in order intake and orders in hand at Group level in the first half of the financial year, a fall-off was noted as of the third quarter. This decline was due to the financial crisis and its ramifications for the global automotive and textile industries.

Feintool's cornerstone Fineblanking/Forming segment raised sales by a further 8.8% to CHF 367.2 million (previous year: CHF 337.5 million). Its share of Group sales now stands at 64.4% (previous year: 64.7%). The segment increased its EBIT by 13.8% to CHF 32.1 million. In the presses and equipment business, sales of the Feintool and Schmid brands managed to improve on the high level of preceding years. In the components business, the European and Japanese factories both posted double-digit growth rates. In the former case this was due to new projects for the expanded factory in Jena, while in the latter case it was attributable to a high export ratio on the part of Japanese customers. Sales at our US companies were down on the previous year, primarily owing to the dollar's weakness against the Swiss franc. Year-on-year, the order intake in this segment fell by 3.2% and orders in hand by 7.0%.

The increase in business at the Automation segment was particularly impressive: here, sales rose by 21.1% to CHF 141.0 million (up from CHF 116.4 million in the previous financial year) and accounted for 24.7% of the Group total. This positive development is due to the high demand for the attractive, updated product range of Automation Components and to Automation Systems' high volume of orders in hand at the beginning of the financial year. In the riveting business, Feintool added innovative products to its line-up. At CHF 10.2 million, EBIT was 39,7% higher than the figure for the previous year (CHF 7,3 million) thanks to the higher volume. Due to an absence of major orders, the segment's order intake fell by 8.6% to CHF 134.1 million and orders in hand by 6.2% to CHF 54.4 million.

The Plastic/Metal Components segment reported a 7.8% drop in sales to CHF 62.2 million (previous year: CHF 67.5 million) and accounted for 10.9% (previous year: 12.9%) of Group sales. EBIT was below the previous year's level at CHF -0.8 million (CHF -0.3 million). Owing to the current economic situation, the search for a strategic partner was suspended. Feintool will continue its optimization and restructuring activities and its marketing drive with the aim of achieving a breakeven result in the medium term.

Cash flow significantly increased thanks to optimization of net working capital The consolidated cash flow statement shows cash flows from operating activities of CHF 64.0 million (previous year: CHF 36.6 million). On practically unchanged cash flow for investing activities at CHF 29.1 million (previous year: CHF 28.5 million) Feintool disclosed a higher free cash flow than in the previous year at CHF 34.9 million (CHF 8.1 million).

Sharp reduction in net debt Due to the increase in cash and cash equivalents, total assets were significantly higher than in the previous year at CHF 475.3 million (CHF 460.4 million). Net debt was reduced by CHF 30.1 million from CHF 88.0 million to CHF 57.9 million, primarily thanks to the optimization of net working capital, and amounted to 28.3% of shareholders' equity (previous year: 46.0%). As at 30 September 2008, shareholders' equity stood at CHF 204.6 million (previous year: CHF 191.3 million) and the equity ratio increased to 43.1% (previous year: 41.5%).

Difficult outlook Feintool will not be immune from the effects of the global financial crisis on the real economy. The declining trend in the automotive industry in particular will have implications for Feintool. As things stand, volumes and results for the current (2008/09) financial year are expected to be lower than in the year under review. In the absence of reliable projections on the part of our customers, it is not possible to issue any forecasts at present. In view of the economic environment, the Board of Directors will propose at the Annual General Meeting on 20 January 2009 that a reduced dividend of CHF 6.50 per registered share be paid.



Key figures (CHF m) 07/08 Prev. year Change %

Consolidated sales 569.2 520.4 + 9.4 Fineblanking/Forming 367.2 337.5 + 8.8 Automation 141.0 116.4 + 21.1 Plastic/Metal Components 62.2 67.5 - 7.9 EBITDA 56.1 49.9 + 12.4 Operating profit (EBIT) 33.9 25.8 + 31.4 Consolidated net income 20.1 11.8 + 70.3 Total assets 475.3 460.4 + 3.2 Shareholders' equity 204.6 191.3 + 7.0 Net debt 57.9 88.0 - 34.2 Order intake 553.5 586.6 - 5.7 Orders in hand 220.1 237.7 - 7.4



For further information, please contact: Joachim Kaufmann, CEO, and Jürg E. Wenger, CFO Phone +41 (0)32 387 51 11

Feintool is a leading technology and systems provider in fineblanking/forming and assembly automation. It is also a global supplier of metal and plastic components.

Feintool operates globally at the company's own facilities in Switzerland (head office in Lyss), Germany, France, Italy, Great Britain, the United States, Japan and China, where around 1,800 employees are committed to customer satisfaction.

Feintool International Holding Industriering 8, CH-3250 Lyss Phone +41 (0)32 387 51 11 Fax +41 (0)32 387 57 81 feintool-fim@feintool.com www.feintool.com

Corporate Communications

Urs Feitknecht Phone +41 (0)32 387 51 63 Mobile +41 (0)79 204 41 13 Fax +41 (0)32 387 54 16 urs.feitknecht@feintool.com

The media release can be downloaded from the following link:

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Feintool International Holding Industriering 8 Lyss Schweiz

WKN: 905428; ISIN: CH0009320091 ; Index: SPI, SPIEX, SSCI; Listed: Main Market in SWX Swiss Exchange;



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Feintool International Holding

http://www.feintool.com

ISIN: CH0009320091

Stock Identifier: XSWX.FTON