May 29, 2003 In the first half of the ongoing 2002/2003 business year VOGT electronic has increased sales by 7.0% to EUR 280.8 million (previous year: EUR 262.5 million) as well as EBIT (earnings before tax and interest) by 56.9% to EUR �5.6 million (previous year: EUR �13.0 million. The board chairman of VOGT electronic AG, Reinhard Sch�lein, announced these figures at the General Meeting of Shareholders in Munich.
The company's key aim in the ongoing 2002/2003 business year of achieving a considerable improvement in performance over the past year, remains realistic also in absence of an economic upswing, the company's key aim, also in absence of an economic upswing.
The restructuring and recapitalization program became necessary after sales in virtually all of the segments in which VOGT electronic operates plunged around mid 2001. This resulted in increasing under-utilization of manufacturing capacities and ensuing sales losses.
The managing board responded immediately: planned investments were halted and personnel levels were rigorously adjusted. Up to June 2002 some 1,000 jobs were trimmed. As of mid 2002, however, the general economic situation had further deteriorated. Against the backdrop of these overall developments the board, in cooperation with Roland Berger management consultants and the financing banks drew up a program for the restructuring and recapitalization of the VOGT electronic group. "The supervisory board, the company's banks as well as our shareholders are wholeheartedly backing this concept," as Reinhard Sch�lein states with a look back on recent developments.
Within the context of the adopted program the Miesau and Hoppegarten production locations were closed, and the products manufactured there have been shifted to other domestic and foreign VOGT electronic production locations. "This process has now been concluded. The necessary client approvals have been obtained and production operations are proceeding according to planning," reported Dr. J�rgen Sturhahn, board member responsible for the manufacturing and technology at VOGT electronic. The resulting savings effects will become increasingly felt in the coming months.
Moreover, a balance sheet concept has been put in place for the recapitalization of VOGT electronic AG and the Group as of March 31, 2003.
At the exceptional general meeting of shareholders the management board and supervisory had submitted proposals to reduce capital according to regulations on simplified capital reduction, as well as adopting resolutions authorizing the management board to issue profit participation rights linked with option rights to stock by way of a limited capital increase and changes in statutes. The general meeting approved and adopted the applications with a majority of 99 %. This enabled the management board to issue profit participation rights with a total nominal amount of up EUR 39 million. In the meantime, as part of the financial restructuring of the company, these rights have been issued to banks that had granted loans to the company, in exchange for the accounts receivable arising from the respective loans granted. With a subscription period up to February 24, 2003, shareholders were granted the right to subscribe to profit participation rights. Some 16 shareholders subscribed to profit participation rights valued at EUR 28,809.12. As of March 31, 2003 the banks completed the conversion of the above mentioned receivables to profit participation rights.
The next step in restructuring will involve the introduction of a new organizational structure to the VOGT electronic group. As of the upcoming 2003/2004 business year the former six sales groups, the entire development area as well as the individual production plants will be assigned to five business operating areas. "By bundling our competences in these five areas we are responding to current market developments, while bringing greater focus on our key strengths and optimizing our market positioning. As a result will be able to respond more rapidly to market developments and achieve an even more specific client orientation," explained Reinhard Sch�lein, head of the management board.
"The cut backs over the past months were unavoidable and painful. We are convinced, however, that the VOGT electronic group will weather this situation and emerge with greater strength," stated Karsten Odemann, chief financial officer of VOGT electronic AG. In the context of restructuring, VOGT electronic will continue the course already taken of shifting manufacturing operations to low wage countries. The focus here is on Southeast Asia, and low wage countries in Europe and North Africa.
Cumulative sales figures of the first half of the ongoing 2002/2003 business year compared with the elapsed business year:
Telecommunications EUR 153.7 million (previous year: EUR 152.8 million), automotive electronics EUR 60.0 million (previous year: EUR 55.3 million), industrial electronics EUR 19.1 million (previous year: EUR 18.8 million), miscellaneous consumer goods EUR 19.7 million (previous year: EUR 14.3 million), consumer electronics EUR 22.1 million (previous year: EUR 17.6 million), data technology EUR 6.2 million (previous year: EUR 3.7 million). The company generated EBITDA of EUR 14.8 million (previous year: EUR 7.6 million), while EBT amounts to EUR �12.9 (previous year: EUR �18.1 million). Mio. Euro). By comparison with the first half of the past business year the negative trend has been decisively halted. Investments stood at EUR 5.8 million (previous year: EUR 10.0 million), while write-downs come in at EUR 20.5 million (previous year: 20,6 Mio. Euro). Orders on hand total EUR 364.2 million (previous year: EUR 400.9 million).
VOGT electronic AG (www.vogt-electronic.com):
VOGT electronic AG manufactures components, printed circuit boards, modules and systems for the worldwide markets of the electrical and electronics industries. In the EMS sector (Electronic Manufacturing Service) VOGT electronic has acquired in-depth know-how and competence over the course of seven decades. The company's focus is on the individual development and production of modules and entire systems according to client requirement profiles. In meeting these demands, VOGT electronic is able to draw on exceptional development know-how in all components produced, leading edge technical resources offering the full range of testing procedures and certification as well as innovative manufacturing equipment and facilities offering flexible capacity and on-site presence at key locations in Europe, Asia and North America. In the 2001/2002 business year, the corporation generated sales of EUR 548.3 million. The electronics group is currently employing a workforce of more than 5,000 employees active at 14 production locations in eight countries in Europe, North America and Asia.
Contact and further information
VOGT electronic AG (group)
Gernot Hein
VOGT electronic Platz 1
D � 94130 Obernzell
Tel.: +49/ 8591/ 937 180
Fax.: +49/ 8591/ 937 189
Mail: ir@vogt-electronic.com
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