Looser Holding increases its profitability

Looser Holding AG, headquartered in Arbon, Switzerland, reports net revenues of 240.3 million Swiss francs (prior year: 228.3 million Swiss francs) in the first half-year 2010. After currency and acquisition-related effects, revenue growth amounted to 7.6 percent. The operating result (EBITDA) was 30.3 million Swiss francs and thus slightly increased against the prior year (29.1 million Swiss francs). The EBITDA margin of 12.6 percent remained at approximately the prior year level. The depreciation of the Euro resulted in a reduction of EBITDA by about 1.1 million Swiss francs.

Consolidated net income, at 11.0 million Swiss francs, rose by 11.3 percent against the prior year. The equity ratio, at a solid 37.6 percent, declined against the comparative figure as of 31 December 2009 (40.5 percent). This decline despite the consolidated net income was, on the one hand, due to negative currency effects of the Euro and, on the other hand, the nominal value reduction by about 5 million Swiss francs which was posted on the liabilities side and paid out in July 2010.

Net debt rose by 6.6 million Swiss francs against the 2009 close of business to 139.7 million Swiss francs. Revenue growth in the first half-year 2010 resulted in a higher amount of funds tied-up in working capital. Although Looser Holding is not subject to any seasonal fluctuations, cashflows from operations in the first half-year are in each case markedly lower than in the second half of the year. The decline in cashflow against the prior year was mainly due to prior year non-recurrent effects. The funding of Looser Holding is soundly based. The Group has sufficient flexibility to handle acquisitions.

The Group's good results of operations for the difficult financial year 2009 and in the first half-year 2010 prove that it will be able to successfully further develop its enterprise thanks to its broadly based business portfolio, the consistent implementation of its niche strategy and strict cost management.

Soundly positioned business divisions
The four business divisions Coatings, Industrial Services, Temperature Control and Doors reported a solid performance in the first six months.

Continuing upward trend
Net revenues of the Coatings division (FLH Group) rose by 10.0 percent in local currencies to 105.1 million Swiss francs. Further increases were achieved with respect to the operating result (EBITDA) and the EBITDA margin. EBITDA amounted to 11.0 million Swiss francs (prior year: 8.9 million Swiss francs). The EBITDA margin, at 10.5 percent, improved markedly against the prior year figure and also posted a moderate increase against the first quarter 2010. The gross profit margin remained stable despite the shortage of and rising prices for raw materials.

In particular the revenue development in the packaging coatings business (17.2 percent rise) and the growth in the area of non-stick coatings by about 34 percent were encouraging. The parquet coatings business in China also posted a satisfactory recovery following the worldwide difficult financial year 2009 and grew by almost 39 percent in the first half-year 2010. Significant synergies were realized thanks to the intensified cooperation between the Coatings and Doors divisions. Feyco has been the main supplier of varnishes and paints to the Prüm-Garant Group since the beginning of the current year.

Stable development
The Industrial Services division (Condecta Group) generated revenues of 27.8 million Swiss francs corresponding to an increase by 7.6 percent. After currency and acquisition- related adjustments, the improvement against the prior year amounted to a moderate 1.7 percent. The operating result (EBITDA) was 7.4 million Swiss francs (prior year: 7.6 million Swiss francs). The seasonal nature of acquired business activities and extraordinary costs relating to development and integration projects had a significant effect on the operating result. Due to the beginning of the main season in the event services area in July and the anticipated generally positive market development in the leasing business and in the construction industry, chances of success in the second half- year are good.

Clear recovery trends
With a substantial revenue growth of 41 percent, the Temperature Control division (Single Group) is again experiencing an upward trend after the difficult financial year 2009. Single generated net revenues of 17.3 million Swiss francs and thus markedly outperformed the prior year figure of 12.9 million Swiss francs. In addition, Single's operating result (EBITDA) more than doubled against the prior year and reached 1.8 million Swiss francs. At 10.1 percent, the EBITDA margin was again in the two-digit range (prior year: 5.3 percent). Steadily rising revenues in the semi-conductor and standard business segments as well as in the OEM and direct customer business following the crisis year 2009 made a significant contribution to this positive development. Demand in the export business also rose markedly in markets such as France, the Netherlands and the U.S.A.

Positive impetus from the market
The operating result (EBITDA) of the Doors division (Prüm-Garant Group) declined slightly to 12.6 million Swiss francs (EBITDA margin: 13.7 percent; prior year: 14.3 percent) in the first half-year 2010. Non-recurrent expenses in connection with rationalization investments resulted in a moderate decline in the EBITDA margin. In local currencies, this corresponds to the prior result. Net revenues in local currencies increased by 3.8 percent. Thus the Prüm-Garant Group, which ranks number 2 in the German market for interior doors, continues to hold a strong position. The positive impetus from the market for residential doors and the construction industry and the projected annual growth by 3 to 5 percent are encouraging. These positive prognoses are also supported by the rising number of permits granted for new construction projects and renovations.

Prospects
Looser Holding is moderately optimistic with respect to the second half-year 2010. "To the extent that no essential changes arise in the markets where the Looser Group is active, in the economic environment or with respect to exchange rates, we expect operating results to remain at the same level as in the first half-year of 2010 ", says Tim Talaat, CEO of the Looser Group

For further information please contact:
- Tim Talaat, CEO, Vorsitzender der Konzernleitung - Christoph Fierz, CFO Tel: 071 447 20 80 Fax: 071 447 20 81 E-Mail: info@looserholding.com www.looserholding.com

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