Draka Holding N.V.: Trading update

Draka expects an operating result of around ¤ 145 million and net income of about ¤ 85 million in 2007 * Strong performance has been sustained, driven by favourable market conditions, cost savings and strategy implementation * Further growth in revenues and result in almost all divisions * Stop, Swap & Share programmes on track; cost savings expected of around ¤ 8 million * Forecast operating result of around ¤ 145 million, an increase of 60% compared with 2006 (¤ 90.6 million[1]) * Net income expected to increase by more than 85% to around ¤ 85 million (2006: ¤ 45.4 million[1]) * Operating working capital as a percentage of revenues expected to turn out slightly above 2006 level (16.6%), but below previous forecast of a bandwidth of 18-20% Draka expects for 2007 an operating result of around ¤ 145 million (2006: ¤ 90.6 million[1]) and net income of about ¤ 85 million (2006: ¤ 45.4 million[1]). This represents a slight improvement on the previous forecast for 2007 of an operating result of at least ¤ 141 million and net income of at least ¤ 80 million. Draka expects 2007 to be the third consecutive year of substantially improving results. The anticipated sharp growth in the results is the product of sustained and healthy volume growth, cost-control programmes and further improvement in the product mix. Helped by the favourable macroeconomic conditions, most notably in Europe, Draka will achieve volume growth in all segments of its business: low-voltage cable, special-purpose cable and communication cable. Although raw material prices (copper and polymers) have remained highly volatile, the impact on margins is expected to be limited. The contribution of cost-control programmes is expected to amount to around ¤ 8 million in 2007, in line with Draka's earlier forecast. The Stop, Swap & Share (Triple S) programme implemented in Draka Comteq's Cable Solutions EMEA division in 2006, will generate the highest contribution of around ¤ 5 million, of which ¤ 4 million in the second half of 2007. This phase of the Triple S programme is anticipated to be finalised in 2008, which should result in additional annual cost savings of about ¤ 7 million. The corresponding Triple S programme at Draka Cableteq's Low-Voltage Cable division will generate cost savings of approximately ¤ 3 million in 2007 (¤ 1 million in the second half), in line with the forecast. [1] Excluding non-recurring charges of ¤ 32.9 million in 2006. Pdf version of the press release Pdf versie van het persbericht NOTE FOR EDITORS: for more information, contact: Draka Holding N.V.: Michael Bosman - Director Corporate Communications +31 20 568 9805 Financial calendar 2007 & 2008 (provisional) Friday, 7 March 2008 Publication of 2007 full-year figures (before start of trading) General Meeting of Shareholders, Sheraton Amsterdam Thursday, 24 April 2008, Airport Hotel, Schiphol starting at 14:30h Publication of trading update for the Wednesday, 11 June 2008 first half of 2008 (before start of trading) Monday, 1 September 2008 Publication of 2008 half-year figures (before start of trading) Publication of trading update for the Thursday, 13 November 2008 second half of 2008 (before start of trading) Company profile Draka Holding N.V. ('Draka') is the holding company of a number of operating companies which engage worldwide in the development, production and sale of cable and cable systems. Draka's activities are divided into two groups: Draka Cableteq, which is responsible for the low-voltage and special-purpose cable activities, and Draka Comteq, which handles the communication cable activities. Within these two groups, the activities have been split up into divisions. Draka Cableteq consists of the Elevator Products, Low-Voltage Cable, Marine, Oil & Gas, Mobile Network Cable, Rubber Cable and Transport divisions, while Draka Comteq is active in the Telecommunication Cable, Data Communication Cable and Optical Fibre market segments. Draka has 67 operating companies in 29 countries throughout Europe, North and South America, Asia and Australia. The Company has a flat, decentralised organisational structure with short lines of communication. The divisions enjoy a large measure of autonomy and are responsible for their revenues and profits. Worldwide the Draka companies have some 9,145 employees. The head office of Draka Holding N.V. is established in Amsterdam. In 2006, Draka generated revenues of ¤ 2.5 billion and a net income of ¤ 45.4 million (excluding non-recurring items). Draka Holding N.V. ordinary shares and subordinated convertible bonds are listed on Euronext Amsterdam. The Company was included in the Next150 index in 2001 and the AScX-index (Amsterdam Small Cap index) since 2 March 2005. Options on Draka shares have also been traded on the Euronext Amsterdam Derivative Markets since 8 July 2002, Visit our website: www.draka.com