BWT reports half-year 2006 results

BWT Continues to Grow Sales and Income

• Sales +9.0% to € 174.2 million
• EBIT +7.8% to € 18.4 million

BWT – Best Water Technology Group – has continued its growth course in the second quarter of 2006. In the first half of the year, sales grew by a total of 9.0% and EBIT by 7.8%, taking into account an adjustment to the previous year’s figures for comparison purposes for the spun-off business segment “AST – Aqua Systems Technologies”.

In the first half of 2006, the BWT Group generated consolidated sales of €174.2 million and thus exceeded the comparable figure of last year (without AST) by 9.0%. Total sales including the AST segment amounted to €245.9 million in the previous year. In the second quarter, the Group achieved total sales of €91.6 million, a year-on-year increase of 9.7% (€83.5 million without AST).

*) Spun-off on October 31, 2005 and launched on the Vienna Stock Exchange as an independent company group under the name of "CHRIST WATER TECHNOLOGY"

After a slow first quarter as had been expected, the Austria / Germany segment improved by 15.7% in the second quarter, or 8.7% in the first half-year, mainly due to a good residential installation and services business. The France / Benelux segment in the second quarter fell by 4.7% year-on-year, with cumulative growth at 2.1%. Pleasing growth rates of over 15% both in the second quarter and on a cumulative basis in the first six months were achieved by the HOH Group, which is responsible for the Scandinavian market, with key contributions from HOH Denmark and HOH Birger Christensen in Norway. The Italian and Spanish subsidiaries of the BWT Group generated growth of 6.8% in the first quarter and 8.7% in the first six months. BWT’s activities in Switzerland, Eastern Europe and outside Europe in the “Switzerland / Others” segment produced an increase in sales of 23.6% in the quarter or 25.5% on a cumulative basis.

The servicing and spare parts business in the first six months totaled €36.3 million (20.8% of consolidated sales – PY: €32.5 million or 20.3%). Growth in this service area, which is of special strategic importance to BWT, was 11.8%, once again considerably higher than the overall sales growth.

In the first six months of 2006, EBIT (earnings from operating activities) for the BWT Group increased to €18.4 million, the EBIT margin amounting to 10.6% of sales. The increase was thus 7.8% year-on-year (without AST). Particularly impressive was the performance in Scandinavia, where the HOH Group increased EBIT from €0.6 million to €2.6 million. This excellent improvement was the result of a margin increase accompanied by falling personnel and other operational costs. The decline of EBIT in Austria / Germany mainly attributable to considerably rising raw material costs and in France / Benelux due to below-average sales growth was partly offset by the positive earnings development in Italy / Spain and Eastern Europe.

*) Spun-off on October 31, 2005 and launched on the Vienna Stock Exchange as an independent company group under the name of "CHRIST WATER TECHNOLOGY"

Financial earnings did not change greatly compared to the previous year, earnings before taxes increased year-on-year by 7.8% to €18.3 million. Earnings after taxes increased to €13.3 million or 7.6% of sales (previous year without AST: €12.2 million, incl. AST: €12.4 million). Earnings per share amounted to €0.74, 8.9% higher than in the first half of the previous year (€0.68).

The improvement in consolidated earnings has resulted in the cash flow from the result increasing to €17.3 million. The cash flow from the operating activity in the first half of 2006 was €1.3 million compared to €-1.0 million a year earlier. Although dividends distributed for the past fiscal year increased by 11%, the Group’s equity base improved to 38.7% compared to 37.7% at the end of the previous year.

In the first six months of the current fiscal year, the BWT Group invested a total of €4.5 million in fixed assets. By the end of the first six months, the total number of employees in the BWT Group had risen to 2,179, an increase of 163 year-on-year.

Outlook

After the CHRIST spin-off and the refocusing of the BWT Group on water treatment for households and commercial facilities, expanding its market-leading role in Europe and beyond, especially in Eastern Europe and Asia, are the main goals of BWT. In the process, it is particularly important to further increase awareness of the “BWT” brand among the majority of end consumers, which can be achieved mainly by expanding the “point-of-use” program (i.e. devices which are used at the point the water is drawn off).

Based on this strategy, an unchanged positive economic climate and the gratifying results in the fiscal year to date, the Management Board expects consolidated Group sales for the current fiscal year of more than €340 million and an annual net profit of more than €20 million.

Contact

BWT AG, A-5310 Mondsee, Walter-Simmer-Str. 4
Gerhard Speigner, CFO, P. +43 (0)6232 5011 1112

Ralf Burchert, Investor Relations
P. +43 (0)6232 5011 1113, Fax +43 (0)6232 5011 1109
E-Mail: ralf.burchert@bwt.at

Financial calendar 2006