New financial year started with positive order entry dynamics - Profitable growth continues - 100 mill. euros within reach

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- Increased profitability despite challenging market environment
EBT 16.5 mill. euros (FY 11/12: 14.9 mill. euros), + 11%
EBIT 17.3 mill. euros (FY 11/12: 15.5 mill. euros), + 12%
- Revenues approx. 90 mill. euros (FY 11/12: 83.9 mill. euros), + 7%
- EBT margin to total output 17% (FY 11/12: 16%), + 1%
- Operative cash flow increased to 15.6 mill. euros (FY 11/12: 11.4 mill. euros),
Net cash flow at 2.1 mill. euros
- Good order entry dynamics in the first months of the new financial year
- Order backlog of approx. 51 mill. euros (PY: approx. 47 mill. euros)
- Solar business with new strong impulses from Asia
- GP Solar integration progresses as planned – restructuring is taking effect
- Earnings per share + 8% to 2.64 euros (FY 11/12: 2.44 euros)
Guidance: Profitable growth expected for the 13/14 financial year, 100 mill. euros revenues within reach – detailed forecast in February 2014

ISRA VISION AG (ISIN: DE 0005488100), one of the world’s leading companies of industrial image processing (Machine Vision), global market leader for surface inspection systems, and one of the leading 3D machine vision providers, again confirmed the forecasted growth course as it has done in the previous thirteen trading years. The company increased revenues to 89.5 million euros and the net profit to 11.6 million euros – a plus of 7 respectively 8 percent. With a double-digit EBT growth of 11 percent and an EBT margin to total output of 17 percent (FY 11/12: 16%), ISRA continues its profitable growth despite the challenges in some regions and industries as well as the restructuring and integration of GP Solar. The intensive efforts in cash management show an operative cash flow that improved to 15.6 million euros (FY 11/12: 11.4 mill. euros). Earnings per share after taxes rose to 2.64 euros (FY 11/12: 2.44 euros), a plus of 8 percent. Thus the company has laid a good basis for continuing the sustainable dividend strategy (PY: 0.30 euros per share).

The 2012/2013 financial year was another successful step on the way to the revenue goal of 100 million euros. As forecasted, revenues increased – based on audited, but not yet certified figures – to 89.5 million euros (FY 11/12: 83.9 mill. euros), the total output to 99.8 million euros (FY 11/12: 93.5 mill. euros) – in each case a plus of 7 percent. The gross margin (total output minus cost of materials and labor of production and engineering) with 60 percent (FY 11/12: 60%) confirms again the overall strong margin level of the company. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) rose by 8 percent to 26.2 million euros (FY 11/12: 24.2 mill. euros), the EBITDA margin was at 26 percent, referenced to total output (FY 11/12: 26%). A growth of 12 percent to 17.3 million euros (FY 11/12: 15.5 mill. euros) was achieved by EBIT (Earnings Before Interest and Taxes), which corresponds to an EBIT margin to total output of 17 percent (FY 11/12: 17%) and 19 percent to revenues (FY 11/12: 18%). EBT (Earnings Before Taxes) increased by 11 percent to 16.5 million euros (FY 11/12: 14.9 mill. euros), while the EBT margin improved by one percentage point to 17 percent to total output (FY 11/12: 16%), and was at 18 percent to revenues (FY 11/12: 18%). Operative cash flow significantly raised to 15.6 million euros (FY 11/12: 11.4 mill. euros), net cash flow reached 2.1 million euros (FY 11/12: 1.7 mill. euros). Equity ratio amounts to 57 percent as of 09-30-2013 – one percentage point higher compared to the same period of the previous year (PY 11/12: 56%). Given this equity ratio and the available financial means, ISRA has a solid capital resources for future growth.

With respect to the regional business development, ISRA profits from its strong worldwide presence. The company increased its revenues particularly in Asia – and here specifically in China – as well as in North and South America. In Europe, the economic situation and the associated investment delays in certain countries lead to a more restrained business. For the current financial year, ISRA again anticipates a good development in Asia and America. In Europe, new impulses are expected for the second half of 2013/2014. The expansion on the international markets continues to remain an elementary component of the growth strategy.

In the 2012/2013 financial year, ISRA maintained its market position worldwide in both segments, Surface Vision and Industrial Automation. In the Industrial Automation sector, in which sales activities are focused almost exclusively on the automotive industry, revenues rose by 13 percent to 24.3 million euros (FY 11/12: 21.5 mill. euros). EBIT increased by 25 percent to 4.8 million euros (FY 11/12: 3.8 mill. euros), the EBIT margin improved – similar to the previous year – by one percentage point to 17 percent to total output (FY 11/12: 16%). For the current financial year, the company continues to assume a good development in this segment. Revenues in the Surface Vision sector raised to 65.3 million euros (FY 11/12: 62.4 mill. euros), a plus of 5 percent. EBIT amounted to 12.5 million euros (FY 11/12: 11.7 mill. euros), the EBIT margin to 17 percent to total output (FY 11/12: 17%). A good contribution to revenues was made by Paper, Plastic and Print. The business in the glass industry profited from new product introductions, particularly in the second half of the year. The dynamics in this segment also continues at the beginning of the new financial year. A similar development can be seen for order entries from the specialty paper industry in the first quarter of 2013/2014, leading to a more positive forecast for the new financial year. In order to compensate for the effect of investment delays in the metal industry – predominantly in the steel segment – the worldwide sales activities were intensified by product innovations and investments in marketing and sales. The order entries expected for the near future are the first signs of slight market stimulation. In the solar business, ISRA is strategically well positioned with the integration of GP Solar and was already able to profit from the increasing demand coming especially from Asia by several large-scale orders at the beginning of the new financial year.

Besides the organic, the external growth through acquisitions of suitable companies is an additional important component of the long-term company strategy. Based on the previous successful acquisitions, ISRA features extensive experience in the acquisition of companies. The integration of GP Solar, which was acquired in May 2013, is progressing as planned and is close to being completed. The increasing momentum from the photovoltaic industry is a good basis for the future development of GP Solar. Already in 2009, ISRA acquired an interest in the Turkish Machine Vision specialist Vistek – the remaining shares will be taken over shortly. With this investment, ISRA gained R&D resources as well as additional potentials in Turkey and Middle East. Management continues the examination of suitable target companies for external growth and plans to finalize an additional acquisition in the 2013/2014 financial year.

The economic situation on the global markets will continue to determine the development for the 2013/2014 financial year, whereby the company assumes a positive trend. With a current order backlog of approx. 51 million euros (PY: approx. 47 mill. euros), ISRA had a good start into the new financial year and expects the order entry dynamics to continue in 2013/2014. The company responds to the different market situations in the individual business areas with targeted marketing and sales measures as well as additional innovations that support the growth strategy. For the current financial year, ISRA is planning with a profitable revenue growth and at least stable margins, whereby further margin improvements as well as the cash flow optimization remain in