Ad-hoc-Announcement, 06.03.07
TA Triumph-Adler plans for refinancing and higher growth rate; cooperation with Kyocera Mita extended
Nuremberg, March 6, 2007: For the 2007 financial year, TA Triumph Adler is planning to completely redeem its existing financing arrangements through the introduction of a portfolio of borrowing instruments, as well as through a capital increase of approximately € 20 million. This will create the basis for a higher level of growth.
This project aims particularly at securing a significant reduction in interest costs and a major increase in strategic flexibility with respect to additional acquisitions in the core business. The targeted refinancing is also intended to augment the Company's equity base in order to counterbalance the risk of a devaluation of deferred tax assets arising from the planned reform of corporate taxation.
The Supervisory Board has today agreed to this undertaking after Kyocera Mita Corporation, Osaka, Japan declared its preparedness to participate in the capital increase.
Due to the current nominal value per share, which is € 2.56, we intend to perform a reduction of capital to just under € 60 million before we carry out the capital increase. This will entail the partial release of the capital reserve to offset accumulated losses. These accumulated losses amount to just under € 80 million as of December 31, 2006. This measure will be subject to the approval of the Shareholders' General Meeting on May 23, 2007. Along with the capital increase, this measure will also enable us to recommence the future payment of dividends by TA Triumph Adler AG. Current plans do not envisage trading in the subscription rights; it is intended that the issue price will be in line with the market price.
TA Triumph Adler AG anticipates that these measures will result in enhanced corporate earnings in coming years.
In connection with these plans, TA Triumph Adler AG and Kyocera Mita Corporation, Osaka, Japan, have announced the extension of their cooperation in the sale of photocopying machines, printers, and multifunction systems up to June 30, 2010. Both sides emphasized the proven and successful cooperation that will be continued as to date.
The non-exclusive Commercial Alliance Agreement is the foundation of the mutual business relations. In this context, TA Triumph-Adler sources around 80% of the machines it sells from the leading Japanese manufacturer, including the consumables and spare parts. Under the two Group brand names UTAX and TA Triumph-Adler, the product range is marketed in Germany and on a number of international markets. These sales and distribution activities under the company's own brand names represent a key foundation of the business model of the specialists for efficiency in document business.
Contact:
TA Triumph-Adler AG
Suedwestpark 23
D - 90449 Nuremberg
Dr. Joachim Fleing
Phone: +49 / 911 / 68 98 - 499
Fax: +49 / 911 / 68 98 - 200
ir@ta.ag
www.triumph-adler.com
Bearer shares ISIN: DE0007495004,
admitted to official trading (Prime Standard) on the Frankfurt stock exchange and on all German regional exchanges
Important Information:
This press statement contains forward-looking statements that are based on the assumptions and estimations of the management of TA Triumph-Adler AG. Even though the management is of the opinion that these assumptions and estimations are correct, the actual future development and the actual future results of these assumptions and estimations may deviate materially owing to many different factors. These factors could include, for example, a change in the overall economic situation, exchange rates, interest rates as well as changes in the development of the market and changes to the competitive situation arising from technological change. TA Triumph-Adler AG undertakes no guarantee that the future development and the actual future results achieved will meet the assumptions and estimations expressed in this press statement, nor does it assume any liability in this regard.