DGAP-Adhoc: Vossloh Aktiengesellschaft: Supervisory Board approves new Vossloh-Strategy

Vossloh Aktiengesellschaft  / Key word(s): Strategic Company Decision

02.12.2014 13:10

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
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The issuer is solely responsible for the content of this announcement.

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Today, the Supervisory Board of Vossloh AG decided on the key points of the
new strategy of the Vossloh Group. As a result of a detailed assessment of
the Group's product range, the previous Rail Infrastructure division is to
be divided into three new business units - Core Components, Customized
Modules and Lifecycle Solutions. These three new infrastructure units form
the future core business of the Group, while the previous Transportation
division is no longer defined as core business but will nevertheless
initially remain as a fourth division of the Group. The Transportation
division will presumably contribute roughly EUR500 million to Group sales
in 2014. The goal is to sell the Transportation division in whole or in
parts by 2017 at the latest or to transfer it into a partnership which will
no longer be controlled by Vossloh, depending on the progress of Vossloh
Group's restructuring and repositioning measures currently being carried
out. With this, the longer-term transformation of the Group into a new
company in the rail infrastructure segment is being initiated. In
connection with this realignment, it is also planned to strengthen the
three new core divisions through acquisitions, where appropriate. The
Executive Board of Vossloh AG has been developing the key elements since
June 2014, has decided on the new strategy of the Vossloh Group, presented
it yesterday and today to the Supervisory Board and discussed and evaluated
it comprehensively with the Board. Likewise, the executive Board and
Supervisory Board discussed, evaluated and approved the new medium-term
planning of Vossloh Group. For the current fiscal year, Vossloh expects
sales revenues in the amount of approximately EUR1.34 billion and is
confirming the already-announced EBIT forecast of EUR-150 million to
EUR-180 million. Adjusted for one-off effects, the 2014 EBIT is expected to
be approximately EUR30 million, and thereby the EBIT margin is estimated to
amount to approximately 2 percent. Based on the current structure, for 2015
the Executive Board anticipates an increase in sales between 3 percent to 4
percent and an increase in the EBIT margin to approximately 3 percent to 4
percent. In the year 2016, with the ongoing measures for restructuring and
realignment of the Group as well as the planned intensified expenses for
the acceleration of innovation, EBIT will as well remain under the EBIT
target margin forecast for 2017. This should amount in 2017 to
approximately 5 percent to 6 percent on the basis of the hitherto existing
portfolio structure. Further details concerning the strategy and planning
of the Vossloh Group will be announced in a press release on December 3,
2014.


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Language:     English
Company:      Vossloh Aktiengesellschaft
              Vosslohstr. 4
              58791 Werdohl
              Germany
Phone:        +49 (0)2392 52 - 359
Fax:          +49 (0)2392 52 - 219
E-mail:       investor.relations@ag.vossloh.com
Internet:     www.vossloh.com
ISIN:         DE0007667107
WKN:          766710
Indices:      SDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Hamburg, Hannover, München, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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