26.02.2004 – 07:33

SW Umwelttechnik Stoiser & Wolschner AG

euro adhoc: SW Umwelttechnik Stoiser & Wolschner AG
Quarterly or Semiannual Financial Statements
Press release, 26 February 2004 SW Umwelttechnik reports preliminary results for 2003 (E)

  Disclosure announcement transmitted by euro adhoc.
  The issuer is responsible for the content of this announcement.

* Revenue 8% higher
* CEE contribution to revenue 71%
* EBITDA 15% up
* Improved POA despite negative one-time effects

For SW Umwelttechnik (Vienna Stock Exchange symbol SWUT) the main
features of financial 2003 were stringent cost reduction programmes,
product launches, negative one-time effects due to the downturn in
the forint-euro exchange rate and the closure of a loss-making site
in Germany.

The company’s preliminary IAS figures show an 8% year-on-year
increase in revenue from EUR 69.1 million (m) to EUR 74.7m. This
improvement was due to  further gains in market shares in Hungary
which more than compensated for the contraction in the Austrian
market and the closure of the German operation. Hungarian sales as a
proportion of overall revenue rose from 62% to 67% despite the
devaluation of the Hungarian forint (HUF) against the euro, while
Austria’s contribution to sales dropped from 31% to 25% and that of
other EU member states from 6% to 4%. Exports to Croatia, Romania,
Slovakia and Slovenia rose from 1% to 4% of total revenue.
Like-for-like revenue, excluding the HUF exchange rate effect, was up
by 12%.

Due to the positive trend in Hungary and the new factory to the south
of Budapest, the revenue contributions of SW Umwelttechnik's
Infrastructure and Engineering business sectors expanded from 32% to
38%, and from 29% to 32%, respectively. That of the Water
Conservation sector fell from 39% to 30% owing to market conditions
in Austria and Hungary.

Earnings before interest and tax (EBIT) jumped by 169%, from EUR 1.2m
to EUR 3.2m. Only the cost of closing the German site (EUR 0.8m) and
the weakness of the Austrian market prevented a still greater
improvement. Earnings before interest, tax, depreciation and
amortisation (EBITDA) also advanced, rising by 15%, from EUR 6.1m to
EUR 7.1m.

Finance cost climbed from EUR 0.8m in 2002 to EUR 2.7m in 2003. This
reflected exchange losses relating to the euro denominated financing
of some Hungarian investments, and the EUR 0.8m in proceeds of the
disposal of a minority interest in a Hungarian company in 2002.
Despite the deterioration in finance cost profit on ordinary
activities progressed from EUR 0.4m to EUR 0.5m — a gain of 31%. This
resulted in break-even after tax, following an after-tax loss of EUR
1.2m in 2002.

Despite the increase in revenue the company’s headcount was almost
unchanged at 770 (2002: 773 employees).

Capital expenditure
SW Umwelttechnik completed a EUR 4.8m investment programme in 2003.
The main focus of investment activity was Hungary, to which 72% of
all capital expenditure was channelled. Much of this spending was
devoted to the second expansion phase at the new factory to the south
of Budapest.

Capital and reserves
Due the devaluation of the forint and the net result for the year,
IAS capital and reserves including minority interests declined from
EUR 20.2m to EUR 18.5m. The equity ratio was 26% and the book value
per share approx. EUR 26 (2002: EUR 29).

Outlook
Management will press ahead with the cost reduction drive and
anticipates a significant improvement in profitability in 2004
despite the difficult economic climate.
* In Hungary, tightening spending curbs are affecting public sector
environmental investment, leading to delays in orders and increased
prefinancing needs in the SW Umwelttechnik’s Engineering sector.
However this factor should be more than outweighed by the continuing
strong demand from industrial clients for the products of the
Infrastructure sector which can be very efficiently met by the new
South Budapest works.
* In Austria, SW Umwelttechnik has made significant progress towards
improved earnings by dropping low-margin, commodity products and
entering new markets. Demand for the company’s new products (surface
water protection systems, masts and biogas plants) is expected to
grow rapidly in 2004.
* The existing production facilities in Croatia, Romania, Slovakia
and Slovenia will be used as platforms for accelerated development of
these markets.

SW Umwelttechnik sees the demand for water conservation and
wastewater treatment equipment, infrastructure products and renewable
energy in CEE countries as a basis for sustained growth. Thanks to
its experience of these markets, which goes back 13 years, the
company is excellently placed to profit from these countries’ efforts
to comply with EU environment directives, owing to its innovative
products and cost leadership.

end of announcement        euro adhoc 26.02.2004

Further inquiry note:

DI Heinz Wolschner, Vorstand der SW Umwelttechnik
Tel.: 0043/463/32109-0, Fax: 0043/463/37667
MMag. Christian Riel, Finanzen/Investor Relations
Tel.: 0043/664/4337105, Fax: 0043/1/3688686,
mailto:christian.riel@sw-umwelttechnik.at
Website: http://www.sw-umwelttechnik.at

Branche: Technology
ISIN: AT0000808209
WKN: 080820
Index: ATX Prime, ViDX, WBI
Börsen: Wiener Börse AG / official dealing
Berliner Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Baden-Württembergische Wertpapierbörse / free trade