- EBT growth of 50 percent to approx. EUR 20 million
forecast for fiscal 2003/4 - Projected high free cash flow reducing debt and strengthening
balance sheet - Deriving benefits from market consolidation thanks
to extensive acquisition skills
Stuttgart/ Freudenstadt, 29 January 2004. Growth of 50 percent in EBT to approx. EUR 20 million, an increase in revenues to around EUR 650 million and free cash flow of approximately EUR 30 million – these are the targets which schlott gruppe Aktiengesellschaft has set itself for fiscal 2003/04 (ending September 30). With business conditions increasingly brightening, the Company's high capacity utilization levels in the first quarter of its fiscal year (October – December) show that it is on track to achieving these targets. The forecast improvement in earnings is largely due to profitability gains achieved from the optimization program which has now been completed and which will start unleashing its effects this fiscal year.
As well as this, the Company plans to leverage disproportionately strong benefits from a recovery in the economy. Alongside the additional margin contributions from the gravure machine capacity, which is now available in full again, the fixed-cost base has also been reduced substantially. The magnitude of the efficiency gains which have now been achieved in all divisions is especially reflected in production capacity per employee, which has improved by roughly 40 percent since 2001 on an annual basis.
In addition to the Group-wide optimization strategy, the integration of the broschek Group was successfully completed in fiscal 2002/03 in the space of only twelve months. Says CEO Bernd Rose: "This is the best proof of our extensive acquisition skills and track record in integrating the companies which we take over."
With the European gravure market facing further consolidation, the schlott group intends to continue playing an active role. Explains Rose: "The consolidation process in the gravure market, which we have been instrumental in triggering, will gain momentum. As the No. 3 player in the European gravure market, we have a comfortable position from which we can afford to wait until opportunities for enhancing our Group's value arise. Adds CFO Dr. Uwe Hack: "Our copious free cash flow as of this fiscal year will give us substantially more scope to act."
Fiscal 2002/03 at a glanceschlott gruppe AG met its corrected guidance in fiscal 2002/03 (ending on September 30). The Group turned in EBIT of EUR 25.6 million and EBT of EUR 12.9 million on revenues of EUR 613.7 million. The deviation of one percent in revenues compared with the preliminary figure of EUR 620 million is due to consolidation effects in connection with the annual financial statements. The net income of EUR 4.7 million translates into earnings per share of EUR 0.76. The previous year's figures are not comparable as 2002 was a stub year comprising nine months and the broschek Group was consolidated for the first time as of the beginning of fiscal 2002/2003. schlott gruppe employed 4,380 people as of September 30, 2003.
Following the takeover of the broschek Group, the high performance printing division has further strengthened its position as the Group's largest segment, with revenues coming to EUR 488.8 million last fiscal year. Revenues in the direct marketing division stood at EUR 119.5 million, with digital services contributing EUR 4.4 million and corporate services EUR 1.0 million.
At the annual general meeting, the Supervisory Board and the Management Board will be asking the shareholders to approve a dividend of EUR 0.80 per share. This marks a continuation of the schlott group's consistent shareholder-oriented dividend policy and underscores the confidence which the Supervisory Board and the Management Board have in the very favorable outlook for schlott gruppe.
