LEONI reached record results in 2001

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News of April 30, 2002

LEONI reached record results in 2001

Further increase in turnover and income expected for 2002

Nuremberg/Germany The financial year 2001 has been another year of records for the wire, cable and wiring systems specialist LEONI. The group was able to increase its turnover by 14 % to 1,098 million Euros (2000: 962 mill. Euros). Profit for the year reached 28 million Euros which is 27 % more compared to the previous year (22 mill. Euros).

"We have reached a high level in turnover and intend to invest throughout the group in the future where growth potentials are visibleł, stated Chairman of the Board Ernst Thoma on Wednesday in the course of the balance sheet press conference held in Nuremberg.

LEONI expects to increase its turnover by about 5 % to 1.15 billion Euros in the year 2002. An increase is also to be expected in profit on ordinary activities and profit for the financial year. In 2001, LEONI have once again posted positive results only. Earnings before interest and taxes, EBIT, rose from 51 to 63 million Euros, an increase of about 22 %. Earnings before interest, taxes, depreciation and amortization, EBITDA, improved by 21 % from 94 million Euros in 2000 to 114 million Euros.

Preparations for major orders

With regards to future orders in the Wiring Systems Division, the plants in Tunisia, Egypt and Romania have been expanded. Furthermore, LEONI is currently in the process of building up two new wiring systems sites in Romania and in the Ukraine. This secures the necessary capacities for the big DaimlerChrysler and General Motors/Opel orders and for supplies to the new ustomer BMW. These projects have an overall volume of about 2 billion Euros and will contribute annually up to 300 million Euros to the groups turnover. The Cable Division has tripled its capacities in Mexico and set up a new plant in Poland together with the Wire Division. Two new production sites are currently build in China, which forms an important growth market for the future in the field of telecommunications.

In order to create positive for the numerous projects of the future, which are expected to be of success and thus will contribute to the groupšs turnover, LEONIšs investments totalled 125 million Euros in 2001(2000: 95 mill. Euros). The number of staff of the LEONI group, with about 60 sites world-wide, has also increased especially in the course of expanding its capacities at different sites. On 31 December 2001 the number of people employed by the group was 17,515, an increase of 1,762 on the previous year. The proportion of foreign workers was 84 %. In Germany, LEONI currently employs almost 3,000 people.

Wiring Systems Division to report growth in turnover with successful vehicle models

Turnover of the Wiring Systems Division, which makes up more than 50 % of the overall group turnover, was increased by 15 % to 561 million Euros as against the previous year (487 mill. Euros). The development in income, however, could not keep full pace. EBITDA amounted to 41.6 mill. Euros (2000: 44.2 mill. Euros). The demand for vehicle models supplied for by LEONI continues to be high, especially for the successful Opel Zafira model, the Mercedes C-class and the Audi A 4 model. The prospects are good for LEONI to increase its share of the European market for vehicle wiring systems from now 9 % to 15 % by the year 2005, as stated on the balance sheet press conference. Prospects for the NAFTA and Mercosur business are the only negative ones at the moment, this business however only accounts for some 4 % of the groupšs turnover. A stronger effect have the high pricing pressure of automotive manufacturers as well as investments in existing and future plants and advance concessions with regard to future major projects.

Cable Division: Strongest growth in turnover and income

The Cable Division has developed to the groupšs division strongest in growth, both in turnover as well as income. Turnover increased in 2001 by almost 24 % and amounted to 440 mill. Euros (2000: 355 mill. Euros). EBITDA climbed 71 % to 56.6 mill. Euros (2000: 33.1 mill. Euros). In 2001, the telecommunications sector and the automotive industry contributed the most to the divisionšs strong growth. Besides, LEONI was able to significantly strengthen its position in the field of special cables. Demands coming from the medical technology and automation engineering sectors were especially high. The strong market position of LEONI in various cable branches results in the group to be more or less independent from a specific sector in times of economic slow down.

Wire Division to post downward trend

The Wire Division was the only division to really suffer from the weak economic situation. Turnover decreased to 97 mill. Euros as compared to 120 mill. Euros in 2000, which is a minus of 19 %. The Wire Division now only contributes about 9 % to the groupšs overall turnover. EBITDA decreased by about 50 % to 7.8 mill. Euros (2000: 15.7 mill. Euros). LEONI responded with various measures to increase its efficencies and to adjust its costs to the situation. Cuts in personnel have been made necessary, especially in the USA, but also in England, Italy and Germany. Forecasts predict an upward trend in the wire business for the second half of 2002.

The first figures for the financial year 2002 are going to be published in the interim report at the end of May. LEONI aims at a turnover of 1.15 billion Euros in 2002.

(April 24, 2002)

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