Press Release by the Greiffenberger AG (WKN 589 730 / ISIN DE0005897300)

Greiffenberger AG - two of three business units back on growth track after nine months of 2014

• Pipeline Renovation Technology grows by 3 %, Metal Band Saw Blades & Precision Strip Steel unit by 2 %
• Group turnover down 3 % to € 113.8 m due to the decline in turnover in the Drive Technology business unit
• Annual forecast for 2014 maintained

Marktredwitz and Augsburg, November 10, 2014 - The Greiffenberger Group has returned two of its three business units to growth again after nine months, making up for some of the previous dips in growth they were experiencing temporarily. The Pipeline Renovation Technology unit saw an increase of 3 % to € 10.9 m after nine months of 2014 (previous year: € 10.6 m), while the Metal Band Saw Blades & Precision Strip Steel unit increased revenues by 2 % to € 33.4 m (previous year: € 32.6 m). After six months of 2014 both units were at the same level as the previous year (Metal Band Saw Blades & Precision Strip Steel) or as much as 7 % lower (Pipeline Renovation Technology). By contrast the situation in the largest business unit, Drive Technology, remains difficult. Sales in this unit declined 6 % in the nine months period, down to € 69.6 m (previous year: € 73.7 m). As a whole the Group generated € 113.8 m in sales in the first three quarters of 2014, a decline of 3 % from the previous year's € 116.9 m.

During the course of the year therefore many areas of the Greiffenberger Group again returned to the planned growth. Third quarter sales were now higher than the revenues of the second quarter again. This second quarter had experienced a very difficult sales performance in June which continued to noticeably impact even the third quarter. This was and continues to be the case for Drive Technology in particular. The Group's incoming orders in the first nine months totaled € 115.9 m, and was therefore higher than turnover. Accordingly the book-to-bill ratio works out at 1.02, and indicates further growth. However, incoming orders are currently still running 7 % below the previous year's level of € 125.0 m.

For full-year 2014 the Greiffenberger Group is maintaining the forecast as adjusted in August. The goal is to generate revenues of between € 152-157 m, an EBITDA of € 9-11 m and an EBIT of € 2-4 m.

Varying business performance in the Drive Technology business unit

The subsidiary ABM, comprising the Drive Technology business unit, has not yet succeeded in bringing the declining business performance experienced in the second quarter of 2014 back into positive territory. What is noticeable is that orders from the individual customer groups and target segments were quite varied, with sectors such as hoisting technology, medical technology, e-mobility and fork lift trucks increasing. By contrast, other target markets such as renewable energies and product areas in the mechanical engineering segment are down. The demand in the Drive Technology business unit was impacted the most by the weakening economy in Germany in the second quarter, and by the continuing uncertainty around the future performance of the German economy and many international markets. The new production site at Lublin is continuing to develop as planned.

Metal Band Saw Blades & Precision Strip Steel business unit back to growth in revenues

Turnover now grew significantly again at the subsidiary Eberle during the third quarter of 2014, up 7 % over the same period in the previous year, after revenues had stood at the previous year's level after six months. Looking at the first nine months of 2014 the increase in sales over the previous year's period resulted in particular from growth from new customers at home and from some European markets, with Metal Band Saw Blades experiencing somewhat higher growth than the Precision Strip Steel segment.

Pipeline Renovation Technology catching up strongly

The Pipeline Renovation Technology business unit increased turnover by 3 % in the first nine months even though it was still 7 % down at the half-year mark. After a very restrained start to 2014 significant catching up got underway as early as the second quarter and continued to strengthen in the third quarter. The growth is due to the favorable business performance in the core business of pipe liners for trenchless pipeline renovation, which is also the result of an expanded product range and higher foreign sales stemming from the continued internationalization of the subsidiary BKP. The gas pipe sheathing segment, which is purely a project business in nature, played hardly any role in 2014 in terms of turnover compared to the previous year.

Overview of the key figures for the first nine months of 2014 (IFRS):

Sept 30, 2014
(9 months)

Sept 30, 2013
(9 months)

previous
year

Mio. €

Mio. €

%

Turnover

113.8

116.9

-2.6 %

thereof business unit:
Drive Technology
(ABM Greiffenberger, Marktredwitz;
763 employees)

69.6

73.7

-5.6 %

Metal Band Saw Blades & Precision Strip Steel
(Eberle, Augsburg; 287 employees)

33.4

32.6

+2.3 %

Pipeline Renovation Technology
(BKP, Velten; 63 employees)

10.9

10.6

+2.5 %

Incoming orders, total

115.9

125.0

-7.3 %

Volume of orders, total

35.1

38.9

-9.8 %



On the Greiffenberger AG:

Registered in Marktredwitz, Greiffenberger AG is a family-led industrial holding with 1.114 employees. With an export ratio of 66 % it operates successfully worldwide in technologically demanding niche areas of three growth markets:

• Drive Technology: efficient drive technology for companies that develop market-leading solutions, particularly industrial applications, e-mobility and renewable energies.
• Metal Band Saw Blades & Precision Strip Steel: the finest quality for demanding industrial applications
• Pipeline Renovation Technology: state-of-the-art trenchless technology and pipe surface protection technology

The company's strategic focus is on continuing to develop sector expertise and advancing environmental technology in areas that include pipeline renovation technology, biomass heating and wind power. Organic growth will be generated by increasingly internationalizing sales and procurement, and complemented optionally by acquisitions of companies. The company has been listed since 1986 (WKN 5897300, ISIN 0005897300, ticker symbol GRF).

Contact information:

Stefan Greiffenberger

Thorsten Braun

CEO of Greiffenberger AG

Assistant to the CEO

Eberlestraße 28

86157 Augsburg

Tel.: +49 (0) 821/5212-261

Fax: +49 (0) 821/5212-275

stefan.greiffenberger@greiffenberger.de

ir@greiffenberger.de

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