Komax Holding AG (VTX:KOMN) Komax Group - Preliminary Results For 2008

Komax Holding AG (VTX:KOMN) Solid result expected for the year as a whole

Despite the economic downturn in the second half of 2008, the Komax Group expects a solid result for the year as a whole. Sales in 2008 fell slightly from CHF 349 million to about CHF 342 million. Order intake is also only slightly down, at CHF 380 million compared with CHF 389 million in the previous year. Currency effects have had an impact on the result.

Komax's sales in 2008 fell by two percent from CHF 349 million to CHF 342 million. The negative impact of foreign currency translation amounts to 4.5 percent. The Europe and Africa regions reported growth of about eight and 50 percent respectively, while North and South America and Asia both declined by around 20 percent. Order intake was only slightly down, at CHF 380 million compared with CHF 389 million in 2007. Accordingly, the book-to-bill ratio remained unchanged at 2007's healthy 1.1.

The foreign currencies that Komax works with had fallen significantly in value against the Swiss franc by the end of 2008, and this will be reflected in the Group's operating profit. The poor forex situation as at 31 December plus the effects of changes in the product mix and the further expansion of the photovoltaics business mean that the Group's EBIT margin for 2008 will amount to about nine percent.

Decline in wire processing

The Komax Group produces machines for wire processing (for crimping, for example) and wire harness production. The end markets for its wire processing systems are the automotive industry, the household appliances market and electronics market. Trends in the wire processing market were mixed in 2008. Whereas business levels in the first six months were very high and accompanied by brisk demand, orders started to fall sharply as of November. The Group is dealing with this situation by taking appropriate action (short-time working, cost management).

Photovoltaics: an active market

Komax's photovoltaics business had a successful year. Sales and market share grew rapidly once again in the year under review. This is mainly due to newly launched products, additional customers, increased production efficiency and a continuing focus on first-class process solutions. An extra 100 people were hired at the main centre of activities in York, USA.

Medical technology: pleasing progress

The Group started the year with a low level of orders in the medical technology segment. The situation was compounded by the fact that customers postponed various projects due to delayed market launches. However, business picked up strongly in the second half, as order volume rose significantly, new products and a new platform were launched and the Group gained additional customers.

Outlook Given the many uncertainties affecting the world's economy, it not possible to give a forecast for the 2009 financial year. The wire processing segment is expected to decline by up to 30 percent due to the weak automotive market. The photovoltaics market remains active, but it may prove more difficult to finance major projects. However, incentive programmes may generate additional momentum in this area. The medical technology segment got off to a good start in 2009 with a strong level of orders in hand.

Background information on the Komax Group The Komax Group, founded in 1975 and headquartered in Dierikon/Lucerne, Switzerland, is one of the top global providers of wire processing systems and assembly automation equipment with a workforce of around 1,100. The Komax Group operates production facilities in Switzerland, Portugal, France, the United States, Malaysia and China. It also maintains a distribution and service network spanning the entire globe. Its primary markets are the automotive industry, medical technology and photovoltaics, as well as the domestic appliance and office equipment sectors.

A detailed explanation of the financial statements will be given at the Media Conference and Analysts' Presentation on 24 March 2009, 10.00 a.m., at the SIX Swiss Exchange - ConventionPoint, Zurich.

Contact:

Komax Holding AG Direct dial +41 41 455 06 16 Dominik Slappnig, Investor & Public Fax +41 41 450 10 24 Relations www.komaxgroup.com dominik.slappnig@komaxgroup.com



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Komax Holding AG

http://www.komax.ch

ISIN: CH0010702154

Stock Identifier: XSWX.KOMN

US: Other OTC:KMAAF