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Flotation: Zumtobel AG aims for an IPO before the Summer
10.04.2006
  • Funds raised from a possible increase in share capital would be used to improve the financing structure to create a basis for further growth and ongoing global expansion
  • 3rd quarter figures show steady growth for Zumtobel

Dornbirn/Austria – Zumtobel AG has firmed up its flotation plans. The company, in which the Zumtobel family has a 50.04% holding and financial investors Kohlberg, Kravis & Roberts (KKR) have a 49.96% holding, aims to be listed on the Vienna Stock Exchange before the summer. The decision to examine in detail the possibility of an initial public offering was taken during an extraordinary general meeting of the shareholders of Zumtobel AG held on April 7, 2006.

The Chairman of the Executive Board of the Zumtobel Group, Andreas Ludwig, welcomed the resolution on the flotation plans as a step in the consistent application of a sustainable expansion strategy: "The funds raised by the possible increase in share capital will further strengthen our financing structure and thereby create a basis for further growth through innovative products and new technologies. They will also enable continuing global expansion, above all in Eastern Europe and Asia." Andreas Ludwig believes a flotation would be a success: "The company is very well positioned, the economy in general is looking good and we are sure that the time is right to float the company. After years of successful restructuring, we have turned the company round and there has been a notable improvement in the market environment, especially in our core German-speaking markets."

If the IPO goes ahead, financial investors Kohlberg Kravis Roberts & Co (KKR) will sell part of their holding, as planned. While the Zumtobel family will also reduce its equity interest if the company is floated, it will remain the largest shareholder and will endeavour to retain a holding of at least 30% in the listed company.

An attractive employee investment scheme is also planned in selected European countries, in order to give company employees the opportunity to take advantage of a possible initial public offering.

Nine-month figures show further growth and improved profits for the Zumtobel Group
The figures for the first three quarters of the current financial year illustrate that the Zumtobel Group’s growth strategy is beginning to bear fruit. Total sales rose to EUR 876.3 million. Excluding revenues of EUR 9.6 million in the prior-year period from the sale of the toolmaking division as part of an MBO, this equates to a growth rate of 5.4%. EBIT rose from EUR 68.8 million to EUR 78.6 million after adjusting for special and non-recurring effects, and adjusted EBITDA rose from EUR 100.2 million to EUR 104.9 million. Net debt was further reduced to EUR 390.2 million, EUR 54.8 million lower than at the end of the 3rd quarter of 2004/05. The adjusted EBITDA margin of 12% for the nine-month period was slightly higher than for the prior-year period (11.9%).

The Zumtobel Group – global market leader in the lighting industry
The Zumtobel Group, based in Dornbirn in the Vorarlberg region of Austria, is one of the few global players in the lighting industry. The Group, which started life as Elektrogeräte und Kunstharzpresswerk W. Zumtobel KG in 1950, today employs a workforce of 7,000 and concluded the financial year  2004/05 with consolidated sales of EUR 1,129.2 million. Under the leadership of its Executive Board of Dr. Andreas J. Ludwig (CEO) and Thomas Spitzenpfeil (CFO), the Group today comprises two subgroups. Zumtobel Lighting Division, the luminaire business, includes the Thorn and Zumtobel brands along with their shared production network, International Lighting Technologies. The TridonicAtco Division handles the lighting components side of the business. The financial year of the Zumtobel Group commences on May 1 and ends on April 30.

Disclaimer:
This information serves marketing purposes and constitutes neither an offer to sell nor a solicitation to buy any securities. A public offering by ZUMTOBEL AG has not yet taken place. Any offers to buy securities received prior to the commencement of the offer period will be rejected. If a public offering is made, a prospectus prepared in accordance with the Austrian Capital Markets Act will be published by making copies thereof available free of charge at Zumtobel AG (Höchster Strasse 8, 6850 Dornbirn, Austria) and Bank Austria Creditanstalt AG (Vordere Zollamtsstrasse 13, 1030 Vienna, Austria; Am Hof 2, 1010 Vienna, Austria; and Schottengasse 6, 1010 Vienna, Austria) and the relevant authorities in Germany, France, Sweden and the United Kingdom will be informed in accordance with the notification procedure described in Article 18 of Directive 2003/71/EC.
This  letter  does  not constitute the Prospectus in relation to the public offer  by  Zumbotel  AG  but is an advertisement in relation to such offer.
Investors  should  not  subscribe  for  shares  in Zumbotel AG based on the information  contained  in  this letter but on the basis of the information contained in the Prospectus.

This press release and the information contained therein are not intended for publication in the United States of America and may not be distributed to U.S. persons (as defined in Regulation S of the U.S. Securities Act of 1933, as amended) or to publications which generally circulate in the United States. This press release constitutes neither an offer to sell nor a solicitation to buy securities in the U.S.A. Shares in Zumtobel AG have not been registered in accordance with the requirements of the Securities Act and may not be sold, offered or delivered to U.S. persons unless they have been registered or exempted from those registration requirements.

Media Contact
Astrid Kühn
Head of Corporate Communications
T.: +43 (5572) 509 1570
M.: +43 (676) 8920 2002
astrid.kuehn@zumtobel.com




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