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Half-year results as at 31 December 2007: Margin expansion at Kaba 

Rümlang, 5 March 2008 – In the first half of its 2007/2008 financial year, Kaba Group increased net sales to CHF 666.5 million. This equals a rise of 12.9% against the same period of the last financial year. EBIT improved by 25.2% to CHF 88.8 million. As a result, the EBIT margin was up from 12% to 13.3%. Profit improved by 21.3 %, reaching CHF 51.2 million. For the 2007/2008 financial year (as at 30 June 2008), Kaba expects to achieve organic growth of over 5% and an EBIT margin of more than 12%. 

In the first half of the financial year (as at 31 December, 2007), net sales of Kaba Group increased to CHF 666.5 million. Compared to CHF 590.3 million in the same period last financial, this was a rise of 12.9% or CHF 76.2 million. Whilst organic growth was 7% or CHF 41.2 million, acquisition effects added 5.4% or CHF 31.7 million. This was chiefly the result of the acquisition of Wah Yuet Group and CSS in 2006. Canadian-based Capitol was sold and thus excluded from the consolidated figures from 3 November 2007. Currency effects resulted in a net addition to sales of CHF 3.3 million or 0.6%. 

EBIT was up CHF 17.9 million or 25.2%, notching up a figure of CHF 88.8 million. Acquisition- and currency-adjusted, EBIT increased 18.1%. The EBIT margin rose from 12% to 13.3%, thus closing in on the target of 15% set for 2011. Consolidated net profit increased 21.3% to CHF 51.2 million. 

Rudolf Weber, CEO of Kaba Group, comments: “This good result shows that measures such as the new distribution concept in Europe, the increased focus on marketing and the concentration on a few but strong brands are bringing growth and added dynamism to the Group.” 

Access + Data Systems achieves the strongest growth
The Door Systems segment increased sales in the period under review by 4.8% to CHF 142.8 million. Acquisition- and currency adjusted, the segment grew by 2.9%. It has continued its positive earnings trend of recent years and posted an EBIT margin of 8.8% (previous year: 8.7%). In the platform screen doors business, work has successfully started on the major contract for the RATP (Paris Métro), worth CHF 70 million. 

The Access + Data Systems segment increased its net sales 19.2% to CHF 380.5, whereof the newly consolidated companies contributed 10.6%. The EBIT margin rose from 18.3% to 19.8%, which sets the industry benchmark. In Asia Pacific, net sales saw an increase of 32.7% to CHF 65.0 million. Around two-thirds of this resulted from the first-time consolidation of the Wah Yuet Group. 

The Key + Ident Systems segment added 7.4% to its sales figure (6.5% acquisition- and currency-adjusted), but saw a decline in its EBIT margin (9.5% instead of 10.6%). 

Outlook
For the 2007/2008 financial year (as at 30 June 2008),  Kaba expects – as announced in September 2007 – to achieve organic growth of over 5%, an EBIT margin of more than 12% and a double-digit improvement in earnings per share.