BAVARIA announces the 2008 dividends and group figures

3/30/2009, 8:00 AM (Source: GlobeNewswire)
- Group sales +18% to Euro 485 million
- EBITDA +28% to Euro 37 million
- Dividend of Euro 3,15 per share
- Group considers itself well positioned in
respect of the current economic and financial crises

Monday, March 30, 2009: during the financial year 2008, BAVARIA
Industriekapital AG was able to achieve an impressive improvement of
its performance. Compared to the previous year, the group turnover
rose by 18% to Euro 485.4 million, and the net income for the year
amounted to Euro 23.2 million. The operating earnings before income,
taxes, depreciation and amortisation (EBITDA) in the group increased
by 28% to Euro 37.3 million. The EBITDA in the Series Manufacturing /
Automotive segment amounted to Euro 18.4 million, while the operating
income in the Plant Engineering segment of Euro 2.6 million was
offset by the losses of Euro 2.9 million in the Business Services
area. Nevertheless, the rapid restructuring success at the newly
acquired companies is particularly pleasing: After operating losses
at Xenterio GmbH (Business Services) and Faral S.p.A. (Series
Manufacturing) in an amount of Euro 8.7 million during the first half
of the year, the result in the second half was already positive with
Euro 1.1 million. The performance trend at Fonderie du Poitou
(Automotive) was less satisfactory. Following several years of losses
prior to takeover, the earnings were raised in the first half of 2008
to Euro 4.1 million which corresponds to an EBITDA margin of
approximately 8%. Unfortunately, the sales crisis hit very hard here:
The turnover in the second half of the year dropped roughly by one
half and the operating loss came to Euro 2.6 million.

The positive trend does not only show up in the accounting results,
but especially in the strong cash flow of the BAVARIA group. In 2008,
a total of Euro 17.3 million was invested in tangible assets and the
disbursements to shareholders added up to Euro 21.4 million, while
the borrowed funds declined by Euro 8.3 million to a total of Euro
8.8 million in the group. In addition, the liquid funds increased by
Euro 6.6 million to Euro 57.0 million. In view of this, the Executive
Board will propose to the General Shareholders' Meeting to increase
the dividend by 5% to Euro 3.15 per share. With the dividend payment
of approx. Euro 19.7 million in May 2009 and the stock buybacks in
the amount of Euro 2.2 million in 2008 and 2009, an aggregate amount
of Euro 51.8 million will have accrued to BAVARIA's shareholders
since the initial public offering. In contrast, the proceeds from the
IPO at the beginning of 2006 only amounted to Euro 12 million net.

In view of the general economic turmoil, the question how BAVARIA
will fare commercially and financially is of particular interest. In
several respects, BAVARIA Industriekapital AG is well positioned:

Sound financial basis
Compared to many of BAVARIA's competitors, BAVARIA has the advantage
of being only slightly indebted and holding substantial cash
balances. For reasons of precaution, additional factoring and bank
credit lines in order to be better prepared for this crisis were
secured by the affiliated companies

Increased efforts in sales and marketing
At all of BAVARIA's affiliated companies, the sales department was
strengthened in order to exploit the financial weaknesses of
competitors and to gain market share. Especially during a crisis, it
is crucial to the customers that their suppliers have a sound
financial basis and are not adversely affected by a high interest and
repayment load.

Extensive investments in new technologies
The rate of investment of BAVARIA group last year stood at
approximately 3.6% of sales and the affiliated companies have used
the last few years to further expand their technological leadership.
Thus, additional production capacity was created in Hungary at the
Kienle + Spiess group (K+S) in order to benefit from the lower labour
costs and to handle the catch-up demand in Eastern Europe.
Investments were made in new technologies such as "Glue-lock" and in
a standardised SAP enterprise resource planning system. At the
headquarters in Sachsenheim, a new production hall with flexible
manufacturing cells was built in order to strengthen the project
business. With K+S, rotors are supplied to the major wind power
systems manufacturers and key components for the hybrid engines of
well-known German automakers. Also other affiliated companies benefit
from the trend to higher energy efficiency: Langbein & Engelbracht
with a new process for residual material drying, Hering with heat
exchangers that are used in many industrial processes for energy
recovery and Faral with aluminium radiators.

The majority of the share capital of BAVARIA Industriekapital AG is
family-owned, and the company therefore places emphasis on a
long-term time horizon in its investment decisions. The belief in the
future earning power of BAVARIA is expressed in the extensive share
purchases by the Executive Board that were made in 2008 and in the
repeated buybacks of its own stock by the company. Particularly the
opportunity to acquire new participations on attractive terms and
conditions make BAVARIA optimistic.

The annual report for the fiscal year 2008 will be published on March
31, 2009 on BAVARIA's website.

BAVARIA Industriekapital AG is an industrial holding company which
acquires low-profit companies throughout Europe. Through active
restructuring and revitalization management it ensures the long-term
success of the companies acquired. The majority of the stock of
BAVARIA Industriekapital AG is family-owned and the company has been
listed on the Entry Standard All Share Index of the German Stock
Exchange since 2006. At present BAVARIA Industriekapital AG has
holdings in nine companies and around 3,000 employees. In 2008 the
group turnover amounted to Euro 485 million and the group profit to
Euro 23 million.

For additional information about BAVARIA Industriekapital, please
visit our website at www.baikap.de

We would be pleased to answer any further questions you may have:

BAVARIA Industriekapital AG
Svea Strohm
Bavariaring 24
80336 München

Phone: + 49 - (0)89/ 72 98 967-0
Fax: + 49 - (0)89/ 72 98 967-10
E-Mail: svea.strohm@baikap.de


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