RHI Group with excellent start to the financial year 2007

03. May 2007

The RHI Group reported revenue in the amount of EUR 361.2 million in the first quarter of 2007 (previous year: EUR 329.3 million), up 9.7%. EBITDA in the RHI Group rose to EUR 54.3 million (previous year: EUR 42.3 million); EBIT improved by a very positive 32.8% to EUR 42.1 million (previous year: EUR 31.7 million). The EBIT margin, at 11.7% (previous year: 9.6%), also clearly exceeded the figure of the previous year. The operating earnings power thus continued to improve. Profit before income taxes from continuing operations (Refractories, other) amounted to EUR 32.8 million (previous year: EUR 25.3 million); profit was up 27.3% to EUR 28.9 million. The RHI Group profit, at EUR 28.9 million (previous year: EUR 28.3 million), was up 2.1% because a profit in the amount of EUR 5.6 million from the discontinued Insulating operations was included in the first quarter of 2006.

RHI’s Steel Division recorded above-average growth and gained market share again in important markets. Revenue in the steel segment increased 13.6% to EUR 220.0 million (previous year: EUR 193.7 million); the EBIT margin improved to a positive 9.1% (previous year: 7.8%). RHI’s Industrial Division reported revenue in the amount of EUR 129.2 million (previous year: EUR 123.7 million), up 4.4%. At 12.3%, the EBIT margin maintained the good level of the previous year. The RHI Division Raw Materials, Production, Other reported revenue amounting to EUR 241.3 million; adjusted for deliveries to the Steel and Industrial Divisions, external revenue was EUR 12.0 million (previous year: EUR 11.9 million). EBIT and the EBIT margin exceeded the comparable figures of the previous year with good utilisation of all RHI raw material and production sites.

After the good business development in the first quarter of 2007, the level of incoming orders clearly exceeds that of the previous year. RHI is continuing to expand capacity in China and India in 2007 in order to lay the foundation for further profitable growth. RHI aims to reach a two-digit EBIT margin again based on a successful implementation of price increases to cover further increases in costs in 2007. Overall, RHI’s consolidated revenue and operating result 2007 are expected to exceed the level of the previous year. RHI’s objective is to increase revenue to EUR 2.0 billion by 2010 through organic growth and targeted acquisitions and to raise its world market share to over 15%.