SMARTRAC Increases Revenues by 36 Percent in the First Nine Months of 2012

SMARTRAC N.V., the leading developer, manufacturer and supplier of RFID transponders and inlays, announced financial figures for the first nine months of 2012. The company further increased its revenues and reported total sales of $189 million in the first nine months of 2012 as compared with sales of $139 million in the period January to September 2011.

EBITDA for the first nine months of 2012 amounted to $17.4 million in 2012 compared to EBITDA of $14.6 million in 2011. Profit for the period increased from $1.4 million in the first nine months of 2011 to $1.6 million in the first nine months of 2012.

The SMARTRAC Group generated revenues of $189 million in the first nine months of 2012, representing an increase of 36% from the previous year’s figure of $139 million.

Revenue in the Security Segment (Business Units eID and CTA) amounted to $108.3 million in the first nine months of 2012 compared to sales of $100.4 million in the same period of 2011. From January to September 2012, the Security Segment accounted for 57% of total Group revenue compared to 72% a year ago.

Revenue in the Industry Segment (Business Units Industry & Logistics and ePI, Neology and Dalton) increased to $80.4 million in the first nine months of 2012 compared to $37.4 million in 2011. From January to September 2012, the Industry Segment represented a 43% share of total Group sales of the company compared to 27% a year ago.

In total, Group EBITDA from January to September amounted to $17.4 million in 2012 compared to $14.6 million in 2011. EBITDA in the Security Segment amounted to $11.1 million from January to September 2012 compared to $12.5 million a year ago. The Industry Segment reported EBITDA of $5.7 million in the first nine months of 2012 compared to $2.4 million in the same period of 2011.

Total assets amounted to $331 million as of September 30, 2012, as compared with $264 million at year-end 2011. The increase in total assets was predominantly related to the inclusion of former UPM RFID as well as investments into property, plant, and equipment in the first nine months of 2012 related to the reconstruction in Thailand.

The SMARTRAC Management expects that the overall positive market trend in the RFID industry will continue over the last quarter of 2012 and that SMARTRAC will add another successful year of growth to its company history. Therefore, SMARTRAC confirms its target to increase Group sales to more than $250 million in 2012.