Tognum Group – Interim Report As at 30 June 2008

Interim Report as at 30 June 2008 Tognum Group − Overview of Key Figures EUR million Q2 2007 Q2 2008 change H1 2007 H1 2008 change Order intake 785 773 – 2% 1,600 1,648 3% Revenues 669 790 18% 1,336 1,517 14% Adjusted EBITDA 123 118 – 4% 241 236 – 2% Adjusted EBIT 107 100 – 7% 207 200 – 3% Return on sales (adjusted EBIT/revenues) 15.9% 12.7% 15.5% 13.2% Adjusted consolidated net income 57 75 32% 104 133 28% Adjusted earnings per share (in EUR) 0.47 0.57 21% 0.87 1.01 16% Total Assets 2,315 2,487 7% 2,315 2,487 7% Equity ratio 7.3% 22.6% 7.3% 22.6% Net financial debt 643 326 – 49% 643 326 – 49% Capital expenditure (intangible assets and property, plant, and equipment) * 30 36 20% 53 61 15% Research and development ** 47 37 – 21% 83 77 – 7% Free Cashflow *** – 2 – 2 - – 24 53 321% Market capitalisation at the end of reporting period - 2,249 - 2,249 Number of employees (end of period) 7,854 8,592 9% 7,854 8,592 9% * Excluding additions to the group of consolidated companies resulting from acquisitions of companies ** Development expenses, capitalised development costs and development activities paid for by third parties *** Free cash flow is comprised of cash flow from operating activities and cash flow from investment activities Segments MTU ENGINES EUR million Q2 2007 Q2 2008 change H1 2007 H1 2008 change Revenues 558 669 20% 1,146 1,286 12% thereof third parties 549 653 19% 1,132 1,254 11% Adjusted EBIT 95 103 8% 188 199 6% Return on sales 17.0% 15.4% 16.4% 15.5% TOGNUM ONSITE ENERGY SYSTEMS & COMPONENTS EUR million Q2 2007 Q2 2008 change H1 2007 H1 2008 change Revenues 135 157 16% 235 300 28% thereof third parties 120 137 14% 205 263 28% Adjusted EBIT 10 6 – 40% 17 16 – 6% Return on sales 7.3% 3.8% 7.1% 5.3% Interim Report as at 30 June 2008 Index 04 The Tognum Share 23 Events after the Balance Sheet Date 07 Chronicle 24 Risk Report 09 Consolidated Interim Report 1st Quarter 2008 24 Outlook 10 Tognum – Company Portrait 27 Interim Consolidated Financial Statements 10 History and business of the Tognum Group 10 Group Structure and Business Activity 28 Consolidated Income Statement 12 Reporting Period and Comparable Periods 12 Corporate Management and Goals 29 Condensed Consolidated Cash Flow Statement 12 Business and General Background 30 Consolidated Balance Sheet 12 Global Economic Trend 12 Development of the Industries 32 Statement of Changes in Group Equity 13 Income, Assets and Financial Position 34 Notes to the Consolidated Financial Statements 13 Income Situation 34 Explanatory Notes 17 Assets 37 Explanations to the Consolidated Income Statement 19 Finance Management and Financial Position 38 Explanations to the Consolidated Balance Sheet 19 Overall View of the Economic Position 40 Other Disclosures 44 Responsibility Statement 20 Segments 45 Review Report 20 mtu Engines 21 Tognum Onsite Energy Systems & Components 47 Service 22 Research and Development 48 2007 — 2008 Figures at a Glance 48 Tognum Group 23 Employees 50 Segment information 3 The Tognum Share STOCK MARKET TRENDS, DEVELOPMENTS AND FACTS IN THE FIRST HALF OF 2008 Stock market trends in the first half of 2008 Global stock markets recorded significant weaknesses in the first half of 2008 with extraor- dinarily high volatility. Primary reasons for this are still the considerable uncertainties as regards the further development of the global economy, originally triggered by the mortgage and financial crisis in the US in early 2007, which had an increasingly negative effect on the US economy and beyond. The massive devaluation of the US Dollar and the increased infla- tion pressure primarily caused by rising commodity prices are now adding to this. The activity indicators of the Euro zone economy are by now also showing a marked decline, mainly in Spain, France and Italy. Development of stock markets in Germany and in other countries With -19.3%, the German blue-chip DAX index recorded the highest losses in the first six months as compared to other international indices: FTSE 100: -12.3%; S&P 500: -11.6%; Nasdaq 100: -10.4%; Topix: -6.5%. Development of the Tognum share The performance of the Tognum share reflected to a great extent the share markets’ general weakness and volatility in the first half of 2008. After starting the year at EUR 19.77 on 2 January 2008, the share price declined until the end of March and reached the half-year low of EUR 13.46 on 17 March 2008. At the beginning of April, the confirmation of Tog- num’s business outlook for the year 2008 caused a trend reversal. The Tognum share gained 27% in April while the MDAX and the Bloomberg European Machinery and Diversified Index only rose by 3.3% in the same period. It reached its interim high of EUR 19.37 on 7 May. After the publication of the quarterly figures on 8 May, the price fell again and market participants then traded the share at EUR 17.50 to EUR 18.50 for a long time. Since 25 June, the share has again declined parallel to the market development and quoted at EUR 17.12 on 30 June, or 13.8% lower than at the beginning of the year. All in all, this share price development in the first half of the year was comparable to the performance of other shares of 4 As of 30 June 2008 The Tognum Share machine and engine manufacturers. Nevertheless, the Tognum share was 6 percentage points above the German DAX at the end of the 6-month period, but 7 percentage points lower than the German mid-cap index, the MDAX. DEVELOPMENT OF THE TOGNUM SHARE (INDEXED, FROM 2 JANUARY TO 30 JUNE 2008 BASED ON THE RESPECTIVE CLOSING PRICE ON XETRA) TGM MDAX Index in % 105 100 95 90 85 80 75 70 65 January 2008 February 2008 March 2008 April 2008 May 2008 June 2008 The average trading volume increased to 686,000 shares per day during the first half of 2008. In comparison: in the second half of 2007, i.e. the first six months after the IPO, an average of approx. 524,000 shares changed hands every day. Over the course of the reporting period, a growing trading volume trend emerged: in the first quarter of 2008, an average of 588,000 shares was traded per day, increasing to 780,000 shares in the second quarter. April was the strongest month with an average of 964,000 shares traded per day. Analyst recommendations Tognum shares are being actively followed by these eighteen investment banks: Bankhaus Lampe, Berenberg Bank, BHF Bank (new since 17 July), CA Cheuvreux, Credit Suisse, Commerzbank (new since 18 July), Deutsche Bank, Dresdner Kleinwort, DZ Bank, Gold- man Sachs, Landsbanki Kepler, Lehman Brothers, Main First Bank, MF Global Securities (new since 12 May), Sal. Oppenheim, Société Générale, UBS and WestLB. As at 31 July 2008, twelve analyst teams graded the shares as “Buy/Positive”, four teams as “Hold/Neutral” and two teams as “Sell/Negative”. Other current information for investors about the company and the shares is available at the website: http://www.tognum.com. Approx. 900 participants at the first shareholders’ meeting since the IPO Dividend distribution of EUR 0.60 per share for the 2007 financial year paid out on 11 June 2008 The first shareholders’ meeting since the IPO was held on 10 June 2008 at the Messe Fried- richshafen. In total, 900 shareholders and shareholder representatives as well as journalists participated, the shareholders at the event representing 70.3% of the authorised capital of Tognum AG. A dividend distribution of EUR 0.60 per share for the 2007 financial year was approved and paid out on 11 June. With currently 131,375,000 no par value shares entitled to dividend, the payout amounted to EUR 78.8 million. This dividend amount corresponds to c. 47% of Tognum AG’s net profit and to 37% of the group’s annual profit. The distribution ratio ranks among the top third of the shares with dividend payout. Return on dividends, thus, amounts to approx. 3.4% [based on our share price as at the due date of this shareholders’ meeting (record date)]. 5 As of 30 June 2008 The Tognum Share The intensive support of current and potential investors, as well as meetings with analysts form an important part of the daily business of the investor relations team. In addition, the board of directors and IR management conducted various road shows in Frankfurt, London, Milan and Zurich, in Scandinavia (Helsinki, Copenhagen, Oslo, Stockholm), Brussels and Edinburgh as well as in North America (Boston, New York, Montreal, Toronto). Participa- tion in international investor conferences, such as those in Paris and Frankfurt in April and again in Frankfurt in June, has meanwhile become a fixed item on the IR calendar. The analyst conference that took place on 3 April 2008 as part of the publication of the annual report in Stuttgart was attended by many analysts and was a major success with an additional roughly 200 live visitors to the website. The annual report is available online un- der http://investoren.tognum.de not only as a PDF but also as an interactive online version. 6 Chronicle Significant Events in the Reporting Period APRIL Tognum confirms 2008 prognosis despite global financial and economic situation. Tognum AG presents the first annual report in its company history and since last year’s IPO.

Load more