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Zumtobel AG Annual Shareholders’ Meeting: May and June confirm ongoing Growth at the Lighting Group
27.07.2006
  • Prior-year growth pattern continues unabated
  • Medium-term consolidated sales target of EUR 1.5 billion with double-digit EBIT margin
  • LED activities a key driver of profitable sales growth

Dornbirn, Austria – the Austrian lighting group Zumtobel has got off to a good start in the new financial year. In May and June 2006, the dynamic growth of the previous financial year continued unabated. The EBIT margin showed a further increase over the previous year’s level, and the Executive Board of Zumtobel AG is expecting to see sales growth continue along these lines over the entire 2006/07 financial year (ending April 30, 2007), accompanied by further improvement in operating profit. For the medium-term, the company is targeting consolidated sales revenues of 1.5 billion euros through organic and external growth, accompanied by a double-digit EBIT margin.

Addressing the Annual Shareholders’ Meeting, the Executive Board explained the corporate strategy of Zumtobel AG. With the continuation of its strategic growth initiatives focused on new markets, technologies and lighting applications, the company is targeting further organic growth. This will be supported not only by the prevailing positive economic backdrop but also by the progressive recovery of the construction sector, where the June figures from Euroconstruct predict a 1.6% increase in construction of commercial property. In addition, several non-cyclical trends, such as the growing significance of light as a factor in energy-efficiency and as a human health factor, all lend further impetus to the growth of the Zumtobel Group.  

Dr Andreas Ludwig, CEO of Zumtobel AG, is delighted at the Group’s increasingly dynamic growth: “As a global player in the lighting industry we are out to exploit the positive market environment to grow our market share. We are aiming to outperform the competition and the market as a whole by a substantial margin and to further reinforce our position as innovation and technology leader in the international lighting industry.”

As a result of the company’s initial public offering in May 2006, which brought a primary capital increase of EUR 153 million, the equity ratio of Zumtobel AG has risen to approximately 35 percent. Now the company is aiming to drive forward the expansion process, not only through its internal growth initiatives but also by looking at potential acquisitions. The primary goal in this respect is to create strategic value-added, for example by reinforcing the Zumtobel Group’s sales structures in major growth markets, and expand the company’s expertise in the fields of technology and lighting applications. The Zumtobel Group is currently the market leader in what remains a strongly fragmented European lighting market and the no. 2 in the European lighting components sector.

LED activities to play a significant part in the future
In the past financial year, Zumtobel AG already reported a 36 percent increase in LED sales, which totalled EUR 16.4 million. In the medium-term the company is looking to generate sales of more than EUR 100 million in the LED sector, concentrating primarily on high-power white LEDs for general purpose lighting applications. Alongside its Tridonic Optoelectronics subsidiary, founded in 2002, the Zumtobel Group has stepped up its commitment to this sector by founding two LED start-ups: Ledon Lighting for future-oriented LED lighting solutions, and Lexedis Lighting for the development and production of high-power white LED lamps. With its existing sales network and extensive applications expertise in light & architecture and professional lighting, the Group already has the vital channels in place through which to market its innovative LED lighting technology.

Efficiency drive to continue
One cornerstone of the Group’s efficiency drive is the consistent optimisation of its supply chain. As part of these measures, the closure of the luminaire plant in Tettnang, Germany, will be completed by the end of September 2006. The production of moisture-proof luminaires is being transferred from Tettnang to Dornbirn, Austria, as well as to Romania, where production start-up at the new luminaire plant in Curtici is scheduled for the end of October 2006. In Australia, two existing luminaire plants will be merged within a newly built facility by the end of 2006 in a move that marks the conclusion of a comprehensive programme of restructuring in the luminaire division. At the same time, the efficiency of all the Group’s Western European plants is being continuously improved. Another initiative triggered during the past financial year was the Salomon project, which is designed to achieve a sustainable 5% reduction in specific costs in the current financial year through improvements in administration and sales structures.

Resolutions at the Shareholders’ Meeting*
17.510.361 votes were represented by 48 shareholders at the Shareholder’s Meeting, where the actions of the Executive Board and Supervisory Board in fiscal 2005/06 were unanimously ratified. Earnings per share for the 2005/06 financial year stood at EUR 1.17, which represents an increase of 377 percent in two years. The meeting also resolved that no dividend payments would be made for fiscal 2005/06. From 2006/07 onwards, the company is aiming to make a total dividend payment of approximately 30 - 50 percent of net profits. The Shareholders’ Meeting appointed KPMG Austria Wirtschaftsprüfungs- und Steuerberatungs GmbH as the new auditors of Zumtobel AG.

Review of financial 2005/06
In the past financial year, the Zumtobel Group posted consolidated sales revenues of EUR 1,184.2 million, which equates to an increase of 4.9%. When prior-year revenues are adjusted for sales reported by the Group’s former Toolmaking division, sold-off by way of an MBO in financial 2004/05, growth amounts to 6%. Adjusted EBIT moved ahead 10.4% year-on-year to EUR 99.5 million. As a result, for the first time in five years the company was again able to post substantial growth while continuing to improve its earnings position. The financial year of the Zumtobel Group begins on May 1 and ends on April 30. The figures for the first quarter of 2006/07 will be published on September 19, 2006.


Overview of voting:

 

votes present

 for

 abstentions (votes) 

 against 

 
Ratification, Executive Board:

 17.510.361

 100%

 -

 -

          
Ratification, Supervisory Board:        

Jürg Zumtobel

 17.510.361

 100%

 114.088

 -

Fritz Zumtobel

 17.510.361

 100%

 164.088

 -

Walter Dünser

17.510.361

100%

3.354.840

-

Other members

17.510.361

100%

 

Appointment of  KPMG as auditors

17.510.361

100%

-

-


Investor Relations
Christian Hogenmüller
Head of Corporate Reporting
T.: +43 (5572) 509-506
F.: +43 (5572) 509-9506
christian.hogenmueller@zumtobel.com

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




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