2007 Tognum Revenues Exceed €2.8bn

Posted on February 28, 2008

Tognum AG (TGM, ISIN: DE000A0N4P43) closed the 2007 financial year with revenues of €2,835mln and an adjusted EBIT (earnings before interest and taxes) of €390mln. These preliminary figures fully confirm the latest guidance from December 2007.

Preliminary Group Results for the 2007 Financial Year

  • Revenues increase by 11.8% to €2,835mln
  • Adjusted EBIT rises 26.2% to €390mln
  • Adjusted earnings per share of €1.58
  • Proposed dividend of €0.60 per share
  • Approximately 23% equity ratio on Dec 31, 2007

Friedrichshafen, 28 February 2008. Tognum AG (TGM, ISIN: DE000A0N4P43) closed the 2007 financial year with revenues of
€2,835mln and an adjusted EBIT (earnings before interest and taxes) of €390mln. These preliminary figures fully confirm the latest guidance from December 2007.

Preliminary Results of the Group

(in € mln,
if not indicated otherwise)
2006PF* 2007
Order intake 2,781 3,107 +11.7%
Revenues 2,535 2,835 +11.8%
EBIT (adjusted) 309 390 +26.2%
Return on sales (adj.) 12.2% 13.8% +13.1%
Net profit (adj.) 138 199 +44.2%
Earnings per share (adj.) €1.15 €1.58 +37.4%
Equity ratio as of Dec. 31 3% 23% +20

The Tognum Group increased its revenues by 11.8% in comparison to the (pro-forma*) 2006 financial year (December prognosis: +10% vs. €2,535mln in 2006). In particular, sales of engines and systems for Marine and Industrial applications as well as After Sales services rose strongly year-on-year. The acquisition of the US company Katolight also contributed to revenue growth in the sub-segment Onsite Energy Systems.

Order intake reached €3,107mln in 2007, an increase of 11.7% (2006: €2,781mln). The rise is primarily driven by greater demand for the expanded range of products in the traditionally strong engine segments. The Group’s order intake also grew with the acquisition of Katolight.

Adjusted EBIT climbed by €81mln or 26.2% in 2007 in comparison to the corresponding period from 2006 (December prognosis: +25% vs. €309mln in 2006). The adjusted return on sales for the year was 13.8% (2006: 12.2%). The year-on-year improvement in results is primarily driven by strong growth in large engines and systems as well as the successful expansion of After Sales.

The adjusted net profit increased 44.2% to €199mln (2006: €138 mln). This enabled Tognum to achieve adjusted earnings per share of €1.58 in the past financial year (2006: €1.15). The board of management is set to propose a dividend payment of €0.60 per share on account of the good profits.

Tognum AG significantly improved its equity in the 2007 financial year. Both the €268mln (gross) in capital received from the IPO on July 2, 2007, and the exceptional profits had a positive effect on equity. The equity ratio increased from 3% on December 31, 2006 to approximately 23% on December 31, 2007.

The board of management at Tognum has confirmed the guidance for 2008 that was issued in the middle of December 2007 and will review it at the end of the current quarter. The financial statements of Tognum AG and the consolidated financial statements for the 2007 financial year will be published on April 3, 2008. The shareholders’ meeting is planned for June 10, 2008.

* A comparison of figures for the financial year 2007 with those of the prior year is only possible to a limited extent because the Tognum Group in its present form was only formed in April 2006 from the operating business of the former DaimlerChrysler Off-Highway unit with MTU Friedrichshafen GmbH as its core company. Comparative figures for the year 2006 are the result of a pro-forma calculation.

- End -


Tognum is one of the world’s leading suppliers of high speed diesel engines and complete propulsion systems for ships, heavy land and rail vehicles and of industrial drive systems as well as decentralized power plants, set-up in the two divisions mtu Engines and Tognum Onsite Energy Systems and Components.

Its product portfolio includes diesel engines in the power range from 20 to 9,100 kW, gas engine systems, gas turbines and fuel cells and is one of the most modern and comprehensive in its sector. In addition, the group develops and manufactures custom-made electronic control and monitoring systems for its engines and propulsion systems.

Sales of the Tognum Group amounted to EUR 2.8 billion in 2007. By the end of 2007, the Group employed approximately 8,200 personnel worldwide. It maintains a global sales and distribution network including 22 subsidiaries, more than 130 distribution partners and 1,100 authorized dealers.

Disclaimer regarding forward-looking statements et al.:

This report also contains forward-looking statements based on assumptions and estimates of Tognum’s Executive Board of Management. Although we assume that our assumptions and estimates on which we have based these forward-looking statements are realistic, we cannot guarantee that they will in the future prove to be correct. The assumptions and estimates, by their nature, may harbour risks and uncertainties that may cause the actual figures to differ considerably from the forward-looking statements. Factors that may cause such discrepancies include, among other things, changes in the economic and business environment, variations in exchange and interest rates, the introduction of competing products, lack of acceptance for new products or services and changes in corporate strategy. Tognum does not undertake any obligation to update, to review or to confirm the forward-looking statements or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this announcement.
Achim Schneider
+49 (0)7541 90 3318
+49(0)7541 908031
+49(0)7541 90904107
Stefan Wortmann Head of Communications
+49 7541 90 4350
+49(0)7541 904350
+49(0)7541 90904350