Mikron Returns to Sales Growth and Break-Even Results


Mikron generated small positive net earnings of CHF 0.4 million in the 2010 financial year
(prior year: CHF - 32.8 million) and an EBIT of CHF 1.5 million (prior year: CHF
- 31.8 million). As a result Mikron was able to benefit from the clear upturn in the
mechanical engineering and systems manufacturing industries. Both of Mikron's
divisions achieved a positive EBIT. Order intake and net sales were both significantly
above year-back levels at CHF 219.8 million (+69.5%) and CHF 182.5 million (+21.6%)
respectively on the back of good sales successes.

The healthy order backlog of CHF 84.2 million (+ 64.5%) and persistently good demand
for Mikron's products and solutions will ensure good capacity utilization in the new
financial year. The Mikron Group expects to generate net sales of around CHF 200 million
in 2011. Further improving profitability is a major priority. With lean structures in place
and assuming an average euro exchange rate of 1.30, the Group is aiming to achieve an
EBIT margin of 3 to 4%. Any deterioration in the euro exchange rate would put this EBIT
target in jeopardy.

EBIT

EBIT came to CHF 1.5 million, climbing back into the black for the first time since 2007 and
displaying a significant improvement over the prior year's figure of CHF - 31.8 million. The
biggest contributor was Mikron Machining, with an EBIT of CHF 3.2 million - a figure that
contrasts sharply with the CHF - 24.8 million posted in 2009. The positive result was due to a
substantial increase in net sales, an advantageous product mix and appreciable productivity
gains. Mikron Automation also made a positive contribution to EBIT, reporting an operating
profit of CHF 1.3 million (CHF - 3.0 million in 2009). At the corporate level, a reduction in
personnel costs was the primary contributor to a 24.4% fall in costs to CHF 2.9 million.

Net earnings

Net earnings improved from a loss of CHF - 32.8 million in 2009 to a small profit of CHF 0.4
million.

Cash flow

Cash flow from operating activities before changes in net working capital climbed from
CHF -18.9 million to a positive CHF 8.1 million as a result of operational improvements. Good
downpayments from customers for ongoing projects helped to reduce working capital by
CHF 6.8 million despite a substantial increase in net sales.

Operating investments totalled CHF 1.9 million net (CHF 2.0 million in 2009), while short-term
financial investments came to CHF 23.1 million (divestment of CHF 4.0 million in 2009). Free
cash flow without financial investments was thus CHF 13.0 million (CHF - 0.6 million in 2009).

Balance sheet as at 31 December 2010

Mikron has a sound balance sheet and is essentially free of debt, with cash and cash
equivalents or short-term financial investments of CHF 51.2 million and interest-bearing
liabilities of CHF 13.5 million. The equity ratio rose slightly on the previous year to 68.2%.

Mikron Machining

Mikron Machining is a leading supplier of high-productivity machining solutions (machines and
cutting tools) for the manufacturing of complex, high precision parts made of metal. The
automotive supply industry and writing instruments industry account for a significant part of its
business volume.

The proportion of Mikron Machining's sales accounted for by the European automotive industry
rose to 36% on the back of the segment's recovery. The year under review also witnessed
implementation of initial projects with Chinese automotive suppliers. Business with machines for
the writing instruments industry benefited substantially from growth in Asia during 2010,
accounting for 31% of sales. A large number of new customers from other industries were
acquired.

Mikron Machining returned to a positive EBIT of CHF 2.3 million in 2010 after recording major
losses in 2009. The basis for this pleasing development was provided by the 53.6% upturn in
net sales, the advantageous product mix, extensive measures aimed at streamlining structures
and the reduction of the cost base.

Outlook

Mikron Machining has kicked off the new financial year with a good order backlog. We expect
continued good demand from Asia, particularly China. Demand in Europe is expected to remain
stable provided the situation with the strong Swiss franc does not get any worse. The rise in
demand is being met by carefully expanding capacity.

Further increases in sales and margins are anticipated for 2011 owing to the high level of work
in hand and the improvements that have been achieved. In particular, activities in Asia are being
further stepped up in addition to the cultivation of existing markets. Programmes designed to
bring about a sustainable improvement in profitability and to expand the service business have
a high priority.

Mikron Automation

The Mikron Automation division is a leading supplier of customer-specific, high-performance
automation solutions (installations and systems) for the high-precision assembly of up to handsized
products. Customers in the pharmaceutical and medical industries account for the largest
share of net sales (69%).
Investment activity in the pharmaceutical and medical industries remains at a good level. In all
other sectors, customers' willingness to invest rose once again, particularly in the European
automotive supply industry.

Mikron Automation returned to a positive EBIT of CHF 1.3 million in 2010 after recording a loss
in 2009.

Outlook

Mikron Automation has kicked off the new financial year with a good order backlog. Order
volume is unlikely to change in Europe. The newly developed Mikron EcoLine(TM) product
platform brings simpler, lower-cost solutions to Mikron Automation's range and opens up new
market potential and applications in Asia and Europe.

Demand in the US is expected to remain stable. Capacity utilization is currently good there.
Continued strong growth is anticipated in Asia, and the expansion of the still relatively small
sites there will be pursued at an accelerated pace. The strong growth in Asia has so far had
limited influence on net sales and profitability owing to its relatively small share in overall net
sales, and this will not change in 2011.

The division's results are expected to further improve in 2011. Nevertheless, the euro-Swiss
franc exchange rate is heavily impacting on earnings growth at our Boudry site.

Change in information policy

Mikron Holding AG is changing over to a system of half-yearly reporting for the Mikron Group's
financial results and business performance. This will improve the information value and
comprehensibility of reporting and bring it more closely into line with the rhythm of long-term
project business. Appropriate topicality and transparency will also continue to be guaranteed.
Information on events relevant to the share price will be published in accordance with SIX Swiss
Exchange regulations regarding ad hoc publicity.

Mikron Holding AG

Mühlebrücke 2

CH-2502 Biel

Tel. +41 32 321 72 00

Fax +41 32 321 72 01

www.mikron.com

Further information
Annual Media Conference: Today, 11 March 2011, 10:00
SIX Swiss Exchange, ConventionPoint, Selnaustrasse 30, CH-8021 Zurich
www.conventionpoint.ch

Mikron Management AG, Patrick Brisset, Coordinator Corporate Communications
Tel. +41 32 843 12 64, irb.mho@mikron.com
www.mikron.com/media

Investor Relations Calendar of Events
07.04.2011 4.00 p.m. - Annual General Meeting 2011
6.00 p.m. - Media release: Annual General Meeting 2011
22.07.2011 7.00 p.m. - Media release: Semiannual results 2011
7.00 p.m. - Publication of Semiannual Report 2011

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