DGAP-News: SHW AG / Key word(s): Preliminary Results/Final Results13.02.2014 / 07:23---------------------------------------------------------------------PRESS RELEASESHW AG reaches sales and earnings targets [1] and projects continued growthfor fiscal year 2014- Group sales grow by 12.4 percent to EUR 365.6 million in fiscal year 2013- EBITDA [2] climb 5.3 percent to EUR 35.7 million - Implementation of internationalisation strategy continues to proceedaccording to planAalen, 13 February 2014. SHW AG, one of the leading automotive suppliers ofCO2-relevant pumps and engine components, as well as brake discs, todaypublished the preliminary and unaudited figures for fiscal year 2013.'Thanks to our innovative product portfolio, we have been able to reach oursales and earnings targets although vehicle output in Europe stagnatedcompared to the previous year,' said CEO Dr. Thomas Buchholz, who isresponsible for the Pumps and Engine Components business segment.Due to production start-ups, SHW was able to uncouple from the generalmarket trend - at 15.94 million, vehicle output in the European Union moreor less stagnated at the prior year level - again in 2013 and improved itsGroup sales by 12.4 percent to EUR 365.6 million (previous year: EUR 325.4million). Group earnings before interest, tax, depreciation of fixed assetsand amortisation of intangible assets (adjusted EBITDA) increased by 5.3percent to EUR 35.7 million between January and December 2013 (previousyear: EUR 33.9 million).It should be noted that the SAP go-live on 1 January 2013 led to additionalexpenses for consulting support, overtime, special shipments and externalprocessing orders in the first quarter. In the fourth quarter, additionalexpenses resulted from reduced plant availability in the Powder Metallurgydivision, increased maintenance costs in the Brake Discs business segment,additional costs caused by weekend work as well as inventory differencesfollowing full stocktaking at all locations.Income after tax amounted to EUR 13.4 million in 2013, compared to EUR 14.2million in the previous year. Earnings per share [3] stood at EUR 2.29,compared to EUR 2.43 in 2012. Positive free cash flow in spite of high growth investmentsAt EUR 30.4 million, cash flow from operating activities clearly exceededthe previous year's EUR 19.8 million. The increase is primarilyattributable to the reduction in working capital. Due to a large number ofproduction start-ups, capital expenditures reached EUR 30.0 million - thehighest level in the history of the company (previous year: EUR 21.1million). At the bottom line, SHW nevertheless generated positive free cashflow of EUR 0.4 million.This means that the EUR 22.5 million change in net bank debt against theprevious year is exclusively attributable to the distribution of a totaldividend of EUR 4.00 per share or EUR 23.4 million. This includes EUR 3.00per share or EUR 17.6 million for a one-time special dividend which gavethe shareholders a share in the profits from the sale of STT TechnologiesInc.As a result of the high dividend payout, Group equity declined by EUR 9.5million compared to the end of the previous year to EUR 82.5 million. At44.1 percent, the Group's equity ratio is still clearly above the industryaverage, though.Positive sales trend in the Pumps and Engine Components business segment The Pumps and Engine Components business segment reported a 15.2 percentincrease in sales to EUR 274.2 million (previous year: EUR 237.9 million),primarily as a result of production start-ups and growing salescontributions from electric transmission oil pumps for the start/stopfunction. The Passenger Car division boosted its sales by 19.2 percent toEUR 217.2 million (previous year: EUR 182.2 million). After a strong secondhalf-year, the Truck & Off-Highway division posted sales of EUR 30.2million (previous year: EUR 27.8 million), primarily benefiting fromgrowing demand from truck manufacturers. The Powder Metallurgy division'stotal sales were more or less on a par with the previous year.Earnings before interest, tax, depreciation and amortisation (adjustedEBITDA) improved from EUR 27.8 million to EUR 29.3 million in fiscal year2013. The EBITDA margin declined from 11.7 percent to 10.7 percent.Positive earnings trend in the Brake Discs business segment For the first time, the Brake Discs business segment delivered moreprocessed than unprocessed brake discs. This led to a 4.6 percent increasein sales to EUR 91.5 million in fiscal year 2013 (previous year: EUR 87.5million).Earnings before interest, tax, depreciation and amortisation (adjustedEBITDA) rose by 14.5 percent from EUR 6.9 million to EUR 7.9 million.Accordingly, the EBITDA margin improved from 7.9 percent to 8.7 percent.Besides increased sales and an improved product mix, the business segmentbenefited from cost savings and the ongoing optimisation of the productionprocesses. Implementation of the internationalisation strategy continues to proceedaccording to planThe implementation of the internationalisation strategy continues toproceed according to plan. In Brazil, the first deliveries to customers arescheduled to commence at the end of the first quarter or the beginning ofthe second quarter. In Canada 4he currently four-man team of sales peopleand development specialists led by General Manager Peter Krug will moveinto the new development centre (which include the performance andendurance test rigs) and administrative building in Brampton, GreaterToronto Area, in April. In addition, the building offers sufficient spaceto process a first truck & and off-highway order.  SHW is currently in thefinal phase of contractual negotiations with a North American truck andoff-highway customer for a deal to supply fuel pumps. Production is due tocommence in late 2016.In China the company is in the final stages of negotiating a deal(multi-year contract) for the production of engine oil pumps at the Chineseplant for a well-known European engine manufacturer for truck andoff-highway applications. If the deal is closed, the first pumps would beproduced and delivered in China starting mid-2015. In addition, it isplanned to produce the client's European demand in China. Overall this willlead to annual sales of around EUR 7 million as from 2017/2018.Good start into the new fiscal year - sales growth in 2014 projected toexceed market averageSHW had a good start into the new fiscal year. At EUR 32.0 million, Groupsales in January were up by 20.3 percent on the previous year's EUR 26.6million. The positive trend for fuel-efficient pumps continued in the Pumpsand Engine Components business segment, which generated EUR 24.3 million insales (previous year: EUR 19.7 million). Sales in the Brake Discs businesssegment rose by 11.8 percent to EUR 7.7 million.Based on the assumption that the order situation remains stable, SHWprojects Group sales of between EUR 380 million and EUR 400 million forfiscal year 2014. Due to planned production start-ups and a shift in theproduct mix towards more complex pumps, sales in the Pumps and EngineComponents business segment should come in between EUR 287 million and EUR305 million. In the Brake Discs business segment, the aim is to increasethe percentage of processed brake discs and higher-value composite brakedisks to generate sales of between EUR 93 million and EUR 95 million.In 2014 the Management Board will focus especially on winning new orders,optimising the logistic and operational business processes at all locationsand growing the business in Brazil, China and North America. If the plannedsales growth is achieved, the company projects consolidated earnings beforeinterest, tax, depreciation and amortisation (adjusted EBITDA) of betweenEUR 38 million and EUR 40 million.The full financial statements for 2013 will be published together with theAnnual Report on March, 17, 2014.---[1] The comparative figures for FY 2012 are shown net of STT TechnologiesInc., which was sold in late October 2012.[2] Adjusted for one-time effects, 2012: costs from a production start-up(EUR 1.5 million); 2013: consulting expenses for SAP go-live (EUR 0.2million), costs in conjunction with changes in the Management Board (EUR0.7 million).[3] 2012/2013: each based on an average of 5,851,100 shares.---About SHWThe business was established in 1365, making it one of the oldestindustrial enterprises in Germany. Today, SHW AG is a leading automotivesupplier with products that contribute substantially to a reduction of fuelconsumption and consequently CO2 emissions. In its Pumps and EngineComponents business segment, the SHW Group develops and produces pumps forpassenger vehicles and truck and off-highway applications, e.g. trucks,agricultural and construction vehicles, stationary motors and wind farms,as well as engine components. The Brake Discs business segment develops andproduces monobloc vented brake discs made of cast iron and lightweightbrake discs made from a combination of an iron friction ring and analuminium pot. Customers of the SHW Group include leading European andNorth American car manufacturers, manufacturers of commercial, constructionand agricultural machinery and other automotive suppliers. The SHW Groupcurrently has four manufacturing sites in Germany. These are located in BadSchussenried, Aalen-Wasseralfingen, Tuttlingen-Ludwigstal and Neuhausen obEck. With just over 1,000 employees, the SHW Group generated sales fromcontinuing operations in 2013 of 365 million euros. Further information isavailable at: www.shw.deContact personMichael SchicklingHead of Investor Relations & Corporate CommunicationsSHW AGTelephone: +49 (0)7361 502 462Email: michael.schickling@shw.deFuture-oriented statementsThis press release contains certain future-oriented statements that arebased upon current assumptions and forecasts made by the management of SHWAG. Various known and unknown risks, uncertainties and other factors maylead to the actual results, financial position, development or performanceof the company deviating considerably from the appraisals specified here.The company assumes no obligation to update future-oriented statements ofthis nature or adapt them to future events or developments.NoteThis announcement does not constitute an offer to sell securities in theUnited States of America, Canada, Australia, Japan or any otherjurisdictional territory where offers are subject to statutoryrestrictions. The securities named in this announcement may only be sold oroffered for sale in the United States of America following their priorregistration in accordance with the provisions of the version of the USSecurities Act of 1933 currently in force (the 'Securities Act') or,without prior registration, only on the basis of an exemption. Unlessprovided for by certain exceptions within the Securities Act, thesecurities named within this announcement may not be sold or offered forsale in Australia, Canada or Japan, nor may they be sold or offered forsale to or for account of residents of Australia, Canada or Japan. Noregistration of the offer or sale of the securities named in thisannouncement will take place, as stipulated by the relevant statutoryprovisions in Canada, Australia and Japan. There is no public solicitationto buy securities in the United States of America.End of Corporate News---------------------------------------------------------------------13.02.2014 Dissemination of a Corporate News, transmitted by DGAP - acompany of EQS Group AG.The issuer is solely responsible for the content of this announcement.DGAP's Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de---------------------------------------------------------------------Language:    English                                           Company:     SHW AG                                                         Wilhelmstrasse 67                                              73433 Aalen-Wasseralfingen                                     Germany                                           Phone:       +49 7361 502-1                                    Fax:         +49 7361 502-674                                  E-mail:      ir@shw.de                                         Internet:    www.shw.de                                        ISIN:        DE000A1JBPV9                                      WKN:         A1JBPV                                            Listed:      Regulierter Markt in Frankfurt (Prime Standard);               Freiverkehr in Berlin, Düsseldorf, Stuttgart        End of News    DGAP News-Service  ---------------------------------------------------------------------  252417 13.02.2014