Export expansion and profit growth at State Printing House Plc.

In Q1 2007, State Printing House Plc. posted 6% increase in consolidated net sales with 21% growth in operating income compared to the corresponding 2006 period. The sales revenue expansion is primarily contributed to the increase of product segments that require advanced technology and enhanced expertise and the export expansion. Export sales revenue increased by 28% over Q1 2007 which was mainly generated by the 50% growth of security products and solutions sales.

State Printing House posted consolidated net sales of HUF 3.5 billion in Q1 2007, exceeding the corresponding 2006 figure by 6%. Besides the sales revenue growth, EBITDA came to HUF 439 million and EBITDA margin rose by 0.75% to 12.6%. The 21 % increase in operating income was mainly due to the rise in sales revenue and the favorable development of cost structure: personnel expenses decreased and payment management improved. Export sales posted further increase, it rose by 28% to HUF 305 million, the Company’s strategic markets accounted for a major part of this (HUF 254 million). Security materials and products, and personalization orders contributed significantly to export growth.
The continuous growth of this high value added product segment accounted for the increasing indicators of Q1 2007. The security solutions segment representing more than one-third of the Company’s sales revenue increased by 5% due to the rise in the turnover of alcohol and tobacco tax stamps. The Company achieved significant increase from form production and personalization. The 12% growth was primarily the result of sales revenue from business forms. Rising card based document and bank card sales accounted for the 7% increase of card production and personalization.

General Manager György Gyergyák commented:‘The positive processes started in 2006 has continued this year as well: export sales increased com-pared to the corresponding 2006 period, there is a growing demand for our strategic products, simultaneously, the company is operating more and more effective. The results of the cost efficiency program started by the Company can already be recognised among the figures but the significant part of the program will be shown in the next quarters. The tendencies have remained unchanged: the production of traditional printing products has decreased while those segments that offer complex solutions – security products, card and form production and the related personalization and data processing – have posted further growth. Nowadays these solutions of ours which represent significant value added account for almost 90 per cent of the sales revenue. All these numbers confirm that our research and development, innovative solutions and regional expansion represent the appropriate strategic direction for State Printing House.’

ANY Interim report Q1 2007

For further information, please contact:

Mr Gábor Zsámboki deputy general manager Phone: +36 1 431 1222