Von Roll Holding AG

Au / Wädenswil, 2009-3-11

• Rise in sales at constant exchange rates by 19 % to CHF 749 million.
• Above-average increase in operating profit by 20 % to CHF 55 million.
• Increase in new orders at constant exchange rates by 7 % to CHF 726 million.
• Administrative board expects dividend to double to CHF 0.20 per share.

Au / Wädenswil | 11 March 2009 – In 2008 Von Roll, one of Switzerland’s longest established industrial companies, once again grew faster than the market as a whole despite a difficult economic environment. The producer of products and systems for power generation, transmission and distribution was thus able to further build on its position as world market leader in insulation products, systems and services.

The company’s year-on-year sales in 2008 rose by 13 % to CHF 710 million. At constant exchange rates, sales grew by as much as 19 % to CHF 749 million. It experienced an above-average rise in operating profit of 20 % to CHF 55 million ? by 28 % to CHF 59 million at constant exchange rates. The company’s pre-tax profits came in at CHF 41 million. New orders rose by 7 % to CHF 726 million at constant exchange rates. At the annual general meeting, the administrative board of Von Roll Holding AG proposed a dividend of CHF 0.20 per share for the 2008 fiscal year, or double the 2007 figure.

A crucial factor in the success of the company was the strong performance of the Von Roll Insulation segment. Sales here rose 8 % year-on-year to CHF 526 million, while operating profits increased by 21 % to CHF 48 million. The Von Roll Composites segment also saw stronger sales, which rose by 11 % to CHF 161 million, and higher operating profits, which were up by 73 % to CHF 17 million. Consolidated for the first time in Q4 2008, the Von Roll Elco Transformers segment generated sales of CHF 23 million and an operating profit of CHF 1 million after one-time effects.

Thomas Limberger, CEO and Chairman of the Board: “We have done our homework and achieved all of the goals we set for ourselves in 2008. Our shareholders benefit directly from our company’s ability to implement its objectives. After a year of restructuring in 2008, we are now looking to leverage our stronger position to achieve growth above the market average and higher profits.”

Expansion of core business and development of transformer business

In the year under review, Von Roll was able to significantly boost the market position of its core businesses, Von Roll Composites and Von Roll Insulation.
The acquisition of Shenzhen Mica, along with the complete takeover of all shares in India-based Pearl Insulations and Pearl Metal Products, were both key factors that helped bolster the company’s presence in the Asian growth market and elsewhere.
With the takeover of the Israeli transformer manufacturer, Enerco, in September 2008, Von Roll has extended its value chain in the energy sector. The newly created segment, Von Roll Elco Transformers, has excellent sales growth potential in the US, the Middle East and Asia.

The Asia (+28 %) and Americas (+19 %) regions experienced above-average growth compared with Europe (+6 %). “We successfully built on our global competitive position in the last fiscal year. This will allow us to take an even greater share of the fast-growing global energy market in the future,” states Thomas Limberger.

Comprehensive, target-oriented corporate development

To most effectively implement the objectives of the internal growth strategy, in the last fiscal year Von Roll realigned its organization to best meet the current challenges. The new matrix organization consists of the three product segments (Von Roll Insulation, Von Roll Composites and Von Roll Elco Transformers), as well as the regional management levels: Europe, Asia and the Americas.

As a result of the strategy to increase operational efficiency, all Von Roll production sites reported profits in 2008 for the first time in years. The focus on clear profit targets for each site, the further optimization of production processes and a strong concentration on activities that drive company growth (innovation, customer focus and efficiency) each played a major role in helping the company achieve these results.

Outlook for 2009

As evidenced by the stability of new orders, Von Roll has enjoyed a good start to 2009. The deteriorating economic environment, however, makes it difficult to predict how business will develop over 2009 as a whole at this time. Von Roll nevertheless maintains its goal of increasing sales in the traditional segments of Von Roll Insulation and Von Roll Composites by 2012 to over CHF 1 billion and achieving an operating profit margin of 14%. The Von Roll Transformer segment will further boost sales in 2009 and make a significant contribution to the operating income.

About Von Roll Holding AG:
As one of Switzerland’s longest established industrial companies, Von Roll Holding AG focuses on products and systems for power generation, transmission and distribution. Von Roll is the global market leader in insulation products, systems and services and is represented in 19 countries with around 3,400 employees at 32 sites.

This press release is based on information currently available. Unforeseeable risks and influences may lead to discrepancies with statements portrayed here. Rounding differences may furthermore result in discrepancies in the reported figures.

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