Quarter 1 2010 Results

Key Issues 1Q 2010

• Order intake increased 52% compared to Q1 2009.
• Net sales drop of 23% due to long and hard winter, delayed order intake pre season and a substantial decrease in the bale business which alone accounts for half of the drop.
• Improved margins (+1.5%), timely adjusted production capacities and sharply reduced cost base (-16.2%) resulted in an EBITDA of EUR 6.1 Mill.
• EBITDA is strongly negatively affected by unfavourable currency exchange rates (primarily NOK to EUR) but this effect was overcompensated by a currency exchange gain of EUR 3.3 Mill, first of all from restatement of hedge contracts.
• Fundamental changes in production philosophy already launched in 2009 proved to be effective and sustained with excellent on time delivery performance and further reduced inventories (EUR –2.5 Mill) in Q1 2010 of EUR 106.1 Mill, compared to EUR 139.2 Mill one year ago.
• Very strong positive cash flow from operating activities mainly due to the positive contribution from EBITDA combined with an almost flat net working capital of EUR 119.2 Mill.
• Cash improvement of EUR 10.1 Mill in the quarter with cash and deposits amount to comfortable EUR 50.4 Mill.
• Further reduced net interest-bearing debt from EUR 42.8 Mill in Q4 2009 down to EUR 38.5 Mill in Q1 2010.