SMARTRAC Increases Revenues by 26 Percent in the First Six Months of 2012

SMARTRAC N.V. announced financial figures for the first half-year of 2012. The positive momentum which SMARTRAC had experienced in the first three months of 2012 continued in the second quarter of 2012. As a result, the company was able to increase total sales by 26 percent from €94 million in H1-2011 to €118 million in H1-2012.

EBITDA for the reporting period January to June amounted to €9.1 million in 2012 compared to EBITDA of €9.5 million in 2011. EBITDA in the second quarter increased from €4.3 million in the second quarter of 2011 to €6.4 million in the second quarter of 2012. Profit for the period increased from €0.8 million in the first half-year of 2011 to €9 million in the first six months of 2012, including insurance payments related to the flood in Thailand.

Revenue in SMARTRAC´s Security Segment (Business Units Cards and eID) amounted to €67.4 million in the first six months of 2012 compared to sales of €67.9 million in the same period of the previous year. In H1-2012 sales of the Security Segment accounted for 57 percent of total Group revenue compared to 72 percent a year ago.

Revenue in the Industry Segment (Business Units Industry & Logistics, Tickets & Labels and Neology) increased to €51 million in the first six months of 2012 compared to €26 million in 2011. In H1-2012 sales of the Industry Segment represented a 43 percent share of total Group sales of the company compared to 27 percent a year ago.

In total, Group EBITDA from January to June amounted to €9.1 million in 2012 compared to €9.5 million in 2011. This decrease results from the burden of the flood in Thailand on the Group’s profitability in the first quarter of 2012. EBITDA for the first six months of 2012, as per definition, excludes extraordinary costs for restructuring, non-recurring costs related to the flood in Thailand, as well as extraordinary acquisition costs.

Total assets amounted to €336 million as of June 30, 2012, as compared with €264 million at year-end 2011. The increase in total assets was predominantly related to the inclusion of UPM RFID as well as investments into property, plant and equipment and inventory in the first six months of 2012.

The SMARTRAC Management expects that the positive trend in the RFID market will continue over the course of the year and that SMARTRAC and the RFID industry will both grow in 2012. Therefore, SMARTRAC confirms its target to increase Group sales to some €250 million in 2012.

From a strategic perspective, the company will continue to work on creating synergies from the acquired companies and combined business activities. The SMARTRAC Management will also pursue the target to optimize structures and processes in order to further improve overall efficiency and profitability of the Group. First results of this endeavor have already become visible in the second quarter of 2012 which showed significant improvement as compared with the second quarter of 2011.

“The positive development of the first six months of 2012 paves the way for another successful year in our company history,” said CEO Dr. Christian Fischer. “The completion of the ramp-up of production capacity in Thailand and Malaysia was a significant milestone for our company and the last cornerstone in our successful ambition to move on from the flood disaster in Thailand. The strength which our company has proven over the past months is evidence that we are well prepared for all challenges we may face in the future.”