bericht_1quartal_0708_engl

HIRSCH Servo
Report for the
First Quarter
2007/08
• EPS Processing on a growth
curve with lower EBIT
• Machinery & Plant Engineering:
typical seasonal weakness
• Positive outlook
Key Indicators 1 st Quarter 1 st Quarter Change
2006/07 2007/08 in %
Sales T€ 21,919 23,140 6
Operating profit (EBIT) T€ 1,506 571 – 62
Profit before tax (POA) T€ 1,270 – 570 –
Profit after tax T€ 1,017 – 422 –
Cash flow from operating activities T€ – 3,093 – 4,117 –
Investments T€ 3,140 3,266 4
Employees (average for the year) Pers. 538 704 31

1 st Quarter
2007/08
The HIRSCH Servo Group reports an increase in
sales and a decrease in operating profit (EBIT) for
EPS Processing and a weak start albeit typical for
the season for Machinery and Plant Engineering
during the first quarter. Seasonal fluctuations in
the Machinery and Plant Engineering business
segment were also affected by the world’s largest
plastics trade show, which is held every three
years in October. The profit before tax (POA)
dropped in total to minus € 0.57 million (previous
year: € 1.27 million), although sales rose 6% to
€ 23.1 million (PY: € 21.9 million).
In the primary business segment EPS Processing,
sales increased organically by around 20% in
both divisions (Packaging and Insulation). The rise
in sales in the Packaging division reflects general
market trends, as electronics and domestic appliance
manufacturers continue to expand capacity in Eastern
Europe. Contrary to the general declining trends in
the industry, the Insulation division succeeded in
increasing sales.
Developments in EPS raw material prices were
completely atypical. Although in recent years prices
have tended to rise from July to November, this
year they have continued to fall successively since
January 2007 and are now down to around 25%
of last year’s level. As a result, increasing the raw
material inventories in June did not contribute to
operating profit as expected. Whether and to what
extent these price trends will have a negative impact
on operating profit in the second quarter 2007/08
has yet to be seen. If prices continue to drop, a
considerable backlash in the price of EPS can be
anticipated for 2008.
The EBIT was down 17% to € 1.18 million
(PY: € 1.42 million). Higher costs, especially in
human resources and energy, had a negative effect
on the results, which can only be partially offset with
price increases as of January 2008. The POA fell
to € 0.18 million due to exchange rate losses and
higher interest paid (PY: € 1.25 million), despite
sales in the primary business segment rising to
€ 20.4 million (PY: € 16.9 million).
With sales slumping 46%, the Machinery and
Plant Engineering business segment got off to an
extremely poor start. The first quarter, typically a
weak season, was exacerbated by the K trade show
in Düsseldorf in October, as customers waited before
placing orders. Given the order book situation and
project preparations, capacity utilization is expected
1st Quarter 1st Quarter Change
Profit and sales trends for the business segments:
2006/07 2007/08 in %
in € mill. in € mill.
POA 1.27 – 0.57 –
EPS Processing 1.25 0.18 – 86
Machinery and Plant Engineering 0.02 – 0.71 –
Other activities – – 0.04 –
Sales 21.9 23.1 + 6
EPS Processing 16.9 20.4 + 21
Machinery and Plant Engineering 5.0 2.7 – 46
Other activities – – –
Employees (annual average) 538 704 + 31
2 Report for the First Quarter 2007/08 HIRSCH Servo

1 st Quarter
2007/08
to be good for the remaining three quarters.
The EBIT fell to minus € 0.57 million (PY: € 0,09
million). The POA was down to minus € 0.71 million
(PY: € 0.02 million), while sales dropped to € 2.7
million (PY: € 5.0 million).
Falling virtually proportionally to the POA, the
annual profit after tax was minus € 0.4 million
(PY: € 1.0 million) causing the balance sheet profit
to drop to € 14.9 million (June 30, 2007: € 15.3
million). The equity ratio was down 24.7% (June 30,
2007: 26.1%) as a result of the disproportionately
low POA for the period and the increased stocks of
raw material worth around € 5 million to prevent
supply shortfalls.
On account of the lower earnings, the cash flow
from operating activities dropped to minus € 4.1
million (PY: € – 3.1 million. Last year’s figures for
cash flow analysis have changed because interest
has been redistributed between operating, funding
and investment activities.)
At the reporting date September 30, 2007, the
HIRSCH Servo Group employed 718 people
(PY: 564). The annual average rose to 704 (PY:
538 people) with the average headcount in EPS
Processing increasing by 138 to 539 (PY: 401).
In the period under review, the HIRSCH Servo Group
invested € 3.3 million (PY: € 3.1 million). Here
the majority was spent in Slovakia, Poland and in
Machinery and Plant Engineering.
The quarterly report meets the requirements of IAS
34. In addition, the same accounting practices and
valuation methods were used as for the 2006/07
annual report.
No events of particular significance occurred after
the reporting date that would have led to a different
portrayal of the net assets, financial position and
results of operations. A fire at the Wroclaw plant in
Poland however destroyed a warehouse on October
18, 2007. The insurance company is still investigating
the claim, but it is currently assumed that the damage
will be covered by existing policies.
The quarterly report was not checked by the
auditor.
Outlook
Management confirms the forecast for fiscal 2007/08
with a POA of € 6.5 million. The improvement in
POA should be achieved with sales growth in EPS
Processing as a result of the investments in expansion
already carried out and the new developments
presented in 2006/07 taking effect.
A rise in earnings of at least ten percent is expected for
2008/09, as the HIRSCH Servo Group will continue
to implement its growth strategy systematically. New
developments, such as the HIRSCH Pallet, which
could be produced in larger numbers and sold more
profitably if required are also in the pipeline.
Changes did not occur in the contingent liabilities
and contingent claims shown in the 2006/07
annual report.
3 Report for the First Quarter 2007/08 HIRSCH Servo

Balance Sheet
Assets
30. 6. 2007 30. 9. 2007 30. 6. 2007 30. 9. 2007
T€ T€ T€ T€
Equity and Liabilities
A. Non-current assets A. Equity
Intangible assets 3,268 3,490 Capital Stock 3,635 3,635
Property, plant and
equipment
50,866 51,906 Additional paid-in capital 7,642 7,642
Investment property 1,520 1,512 Treasury stock – 66 – 66
Financial assets 393 393 Other reserve – 7 – 7
Deferred tax assets 2,111 2,459 Translation reserve 978 687
Receivables and other assets 451 403 Retained earnings 15,334 14,911
58,608 60,162 27,516 26,802
B. Current assets B. Non-current liabilities
Inventories 20,605 24,113 Long-term borrowings 30,179 31,702
Receivables and other assets 25,405 22,903 Deferred taxes 911 644
Cash and cash equivalents 692 1,354
Provisions for severance
compensation and service
anniversary bonuses
2,636 2,717
Public subsidies 1,177 1,146
34,902 36,209
C. Current liabilities
Short-term borrowings 23,856 30,900
Provisions for taxes 1,933 1,791
Other provisions 2,389 2,185
Trade payables
and other liabilities
14,475 10,409
Public subsidies 239 236
46,701 48,371 42,892 45,522
Total Assets 105,310 108,533 Total Equity and Liabilities 105,310 108,533
4 Report for the First Quarter 2007/08 HIRSCH Servo

Income
Statement
7 – 9/2006 7 – 9/2007
T€ T€
1. Revenues 21,919 23,140
2. Increase or decrease in inventories 1,177 1,921
3. Own work capitalized 1,271 618
4. Other operating income 189 221
5. Cost of materials and services – 14,287 – 14,944
6. Personnel expenses – 4,078 – 5,036
7. Amortization and depreciation – 1,041 – 1,578
8. Other operating expenses – 3,644 – 3,772
9. Operating profit 1,506 571
10. Financial results classified into – 455 – 824
Interest income / expense 39 30
Income / expenses arising from securities 0 0
Currency translation gains / losses 180 – 346
12. Profit before tax 1,270 – 570
13. Income taxes – 253 148
14. Profit after tax 1,017 – 422
Thereof attributable to:
Shareholders of parent company 1,017 – 422
Minority interests 0 0
Earnings per share (basic and diluted) n/a n/a
Average number of shares outstanding 485,000 499,042
5 Report for the First Quarter 2007/08 HIRSCH Servo

Statement of
Capital and Reserves
7 – 9/2006 7 – 9/2007
T€ T€
Equity 1. 7. 23,478 27,516
Results recognized directly in equity 45 – 292
Net income 1,017 – 422
Total results for the period 1,062 – 714
Dividend 0 0
Equity 30. 9. 24,540 26,802
Cash Flow Statement
7 – 9/2006 7 – 9/2007
T€ T€
Cash flow from operating activities – 3.093 – 4.117
Cash flow from financing activities 6.756 7.998
Cash flow from investing activities – 3.101 – 3.213
Change in cash and cash equivalents in the reporting period 562 668
Currency translation adjustment 0 – 6
Liquid assets as of 1. 7. 836 692
Liquid assets as of 30. 9. 1.398 1.354
6 Report for the First Quarter 2007/08 HIRSCH Servo

Stock Market
Indicators
7 – 9/2006 7 – 9/2007
Closing price as of 30. 9. € 90.00 180.24
Market price – high € 90.00 211.50
Market price – low € 76.00 176.00
Average price € 84.47 191.79
Market capitalization as of 30. 9. T€ 45,000 90,120
Development of the share price from 1 st July 2007 to 30 th september 2007 in €
Grafic Vienna Stock Exchange
7 Report for the First Quarter 2007/08 HIRSCH Servo

Capital Market
Information
Financial Calender
February 28, 2008: Report on the first half of 2007/08
May 30, 2008: Report on the third quarter of 2007/08
October 31, 2008: Report for the Financial Year 2007/08
Information on the HIRSCH Servo Share
Security identification number: AT0000849757
Type of stock: bearer shares
Share capital: € 3,635,000
Number of shares as of September 30, 2007: 500,000
Traded on: Vienna Stock Exchange – Prime Market segment,
Stuttgart Stock Exchange and Berlin-Bremen Stock Exchange – OTC
Indexes: ATX Prime, WBI (Vienna Stock Exchange Index), VÖNIX Sustainability Index
Ticker symbol on the Vienna Stock Exchange: HIS
Reuters Symbol: HISE.VI
Bloomberg Symbol: HIS:AV
The HIRSCH Servo Group is the EPS specialist on the Vienna Stock Exchange with manufacturing facilities
in Austria, Hungary, Poland, Slovakia, Italy and Romania. EPS products (EPS stands for expandable
polystyrene and is better known under the brand name Porozell ® ) support a variety of functions, including
energy savings, as well as sustainable and eco-friendly growth. Their wide-ranging applications cover
packaging, shape-molded parts, building insulation, modular boards for underfloor heating, construction
blocks and Thermozell ® lightweight concrete products.
For more Information contact
Michaela Promberger
Tel.: +43(0)4277/2211-312
Fax: +43(0)4277/2211-370
E-Mail: michaela.promberger@hirsch-gruppe.com
www.hirsch-gruppe.com
8 Report for the First Quarter 2007/08 HIRSCH Servo