Nürnberg – The LEONI Group exceeded its turnover expectations for the year 1999 and wants to continue with its course of growth in the current financial year. In the last few months the way for it has been paved by the internationally active development and systems supplier of wires, cables and wiring systems by means of specific acquisitions. For the year 2000 an increase of turnover to DM 1.75 billion is planned.

LEONI could increase its turnover 1999 by 24 % to DM 1.2 billion (1998: DM 974 mill) "We have even exceeded our prognosis by DM 100 million", said Ernst Thoma, Chairman of the LEONI AG Board of Directors at the balance sheet press conference held in Nürnberg. Main factor for this increase were the companies acquired at the end of 1998 which have been consolidated for the first time in 1999. Parallel to the development in turnover, LEONI succeeded in increasing profits by 21 % to DM 71 mill (1998: DM 59 mill). The profit for the year increased by 44 % to DM 36.6 mill (1998: DM 25.5 mill).

Increase in all three divisions
The Cable Division contributed the most to the growth rate in 1999. It increased its turnover by 57 %. This was mainly due to the companies LEONI CWA Cable, Belgium, and elocab Sonderkabel GmbH & Co. KG, Georgensgmünd, which have been consolidated for the first time in 1999. The Wiring Systems Division increased its turnover by 18 %, the Wire Division by 3 %.
The record amount of investments made in the previous year (DM 152 mill) was exceeded again with now DM 202 mill. The biggest part of it was spent on the acquisition of the two cable plants in Friesoythe and Brake as well as the setting up of new production facilities in Mexico and South Africa.
Cashflow increased by 12 % to DM 100 mill. However, it was still insufficient to finance all the growth completely. Therefore a bond amounting to Euro 75 mill was issued in November 1999. Furthermore, 600,000 new shares have been placed in the course of a capital increase by DM 3 mill.

Raise of dividend planned
Profits before depreciation, interest payments and taxes (EBITDA) improved by 24 % to DM 141 mill (1998: DM 114 mill). Therefore the Supervisory Board and Board of Directors plan to suggest a raise of dividend to DM 1.70 per share to the General Meeting to be held on July 6, 2000 (Previous year: DM 1.50 per share with an additional bonus of DM 0.10).
Since April 26, 1999 the LEONI share has been represented in the new stock exchange segment SMAX and at the same time in the new index S-DAX. "We had expected for our share to rise in attractivness because of this. Unfortunately it was not the case. The course of the share does not reflect the increasing inner value of LEONI", admitted board member Manfred Meier, responsible for Finance and Controlling. "But many other SMAX companies had similar problems", according to Meier. The rate could not hold on to its highest level of Euro 36.10 as reached in July 1999. However, the sales of the LEONI share at the Frankfurt stock exchange increased to about DM 105 mill (1998: DM 60 mill).
LEONI can report an increase in staff - especially due to the purchase of companies: at the end on 1999 the number of staff in the group was 11,908. This is 1,573 more than in the previous year. LEONI now has approximately 55 production facilities world-wide, 21 of them in Germany.

Growth markets of interest
In order to further increase turnover LEONI counts on markets and technologies of the future such as mobile telecommunications, telecommunications, the internet, multi-media and telematic. A range of partly newly developed products is available for this purpose. It comprises silver and nickel-plated wires and stranded conductors for high temperature resistant cables, internet cables in the GHz range and even new cabling concepts on the basis of flexible printed circuit boards.
Special technical highlight: a data transsmission cable for internet/intranet applications which makes possible data transmission rates up to a frequency of 1.6 GHz. This means that TV pictures can smoothly be transmitted via the data networks.

Broadened customer base enhances chances of growth
In 1999, LEONI has formed the basis of further growth by special acqusitions and the restructuring of the group. "On this basis we reckon with significant growth rates in 2000 - especially in automotive wires for the car industry and special cables for the capital goods industry", as forecasted by the board member Dr. Klaus Probst, responsible for the Cable Division. Additional turnover will also be generated from the expansion of the audio and video cable business as well as the mobile phone assembly business.
In the Wiring Systems Division however LEONI does not expect to see any noteworthy internal growth in volume in 2000. "Despite the continued pricing pressure considerable preparatory work for new developments is further demanded from us. We meet the requirements by means of further increase of efficiency and effective cost management", states board member Uwe H. Lamann, responsible for the Wiring Systems Division.
However, as a result of the takeover of Lucas Rists turnover is expected to increase. "We have achieved our goal of broadening the customer base in the Wiring Systems Division. We still believe that there are opportunities - alos with regard to the changes at Rover - of supplying BMW with wiring systems", Lamann explained. "For the year 2000 we plan to see an increase in turnover by about DM 250 mill. However the latest changes at Rover and the constantly changing situation are also elements of uncertainty to us", so Lamann.

Outlook 2000
All in all, LEONI's appraisal for the current financial year is optimistic. Chairman of the board Ernst Thoma announced, "We have budgeted for an increase in turnover of about DM 1.75 billion and for pre-tax profits to be at least at the same high level as in 1999".