DGAP-News: SHW AG / Key word(s): Final Results2015-03-16 / 07:25---------------------------------------------------------------------Fiscal year 2014: milestones achieved for future capital-efficient growth * Proposed dividend: EUR 1.00 per share* Year-on-year increase expected in Group sales and adjusted Group           EBITDA in the first quarter of 2015 Aalen, 16 March 2015. SHW AG, one of the leading automotive suppliers ofCO2-relevant pumps and engine components and brake discs, today publishedthe annual report with the final financial figures for fiscal year 2014.The fiscal year was marked by new product launches, a continued high levelof customer call orders, the development of our international businessactivities and the establishment of personnel and organisationalprerequisites for "SHW 2020", turning SHW into a globally operatingautomotive supplier.Group sales improved amid the positive economic environment and rose 17.6percent to EUR 430.0 million (2013: EUR 365.6 million). Adjusted Groupearnings before interest, taxes and depreciation and amortisation oftangible and intangible assets (adjusted EBITDA) grew by 13.8 percent toEUR 40.6 million (2013: EUR 35.7 million) in the period from January toDecember 2014. This amount includes significantly higher one-time seriesproduction start-up costs with a total volume of EUR 5.8 million for alarge series product. These additional non-recurring costs are directlylinked to a short-term increase in volume requested by a customer for therescheduling of a conversion of diesel engines to the Euro 6 emissionstandard. Negotiations with this customer to determine the appropriatecompensation payments are still in progress"Due to the sound balance sheet structure and the positive businessoutlook, the Management Board and the Supervisory Board have decided topropose a stable dividend of EUR 1.00 per share to the Annual GeneralMeeting to be held on 12 May 2015 in Heidenheim", said Chief ExecutiveOfficer Dr Thomas Buchholz.Presence in strategically relevant overseas markets establishedIn fiscal year 2014, SHW established new locations in North America andChina. In addition, the Brazilian subsidiary SHW do Brasil Ltda. deliveredits first oil pumps to a US automotive manufacturer in mid-July 2014 andwas able to achieve a positive overall result in its first year ofoperation. In North America, the investments in the new sales anddevelopment centre for engine and transmission oil pumps and therecruitment of new employees have started to bear fruit. The nomination asa series supplier of variable engine oil pumps for a global engine platformhas marked our re-entry into this strategically important market. The pumpsare to be produced in Europe, North America and China. According to thecurrent plans, the start of production (SOP) in Europe and North America isscheduled for 2018 and production in China should begin in 2019.In October 2014, the Chinese subsidiary commenced operations at the newlocation in Kunshan after hiring its first employees in the areas ofprocurement, supplier development and sales. The current focus at thatlocation is on the preparations for series production. After relocatingproduction from Bad Schussenried to Kunshan, the production of variableengine oil pumps for a European automobile manufacturer is set to begin inthe second half of 2015. The Company expects to break even after just ashort period of time, similar to what was achieved in Brazil. Additionally,SHW is in final discussions with a Chinese automobile manufacturer to benominated for the delivery of an electric auxiliary pump for the start-stopfunction and a transmission oil pump for a dual-clutch transmission. Overthe medium term, the Company intends to enter further markets in theAsia-Pacific region for the pumps and engine components business.The Brake Discs business segment will also be strategically developed. Withthe conclusion of the joint venture contract in China with Shandong LongjiMachinery Co., Ltd., the first milestone was achieved in theinternationalisation of the Brake Discs business. As the majorityshareholder (51 percent), SHW will profit from the existing customer ordersbrought by Shandong Longji until the start of production of the jointventure's first customer orders for processed brake discs. This guaranteesthat the foundry will be profitable and generate positive results from thevery start. The NAFTA region is the next interesting target market for theBrake Discs business segment.Internal structures adapted for future growthIn 2014, last year's identified improvement potentials in the operating andstructural areas were systematically addressed. In this respect, theroll-out of the SHW production system across all locations was a focalpoint. Moreover, investments were made in the expansion and build-up ofpersonnel and the organisational structure was adapted to the upcomingrequirements. SHW will continue to work rigorously on leveraging itsinternal potential to be able to sustainably increase the competitivenessand free up resources for international growth.Financial flexibility for organic and inorganic growth improves furtherfollowing capital increaseWith an equity ratio of 40.3 percent and net bank liabilities of EUR 14.4million as at the balance sheet date, SHW AG continues to be very solidlyfinanced and better than the industry average. One of the key strategicfinancial objectives is to ensure the financial flexibility necessary forthe further internationalisation of the business activities in bothbusiness segments and to establish a best-cost-country location in Easternor Southeastern Europe. The capital increase carried out on 18 February2015 and bringing a volume of EUR 24.6 million made a significantcontribution to achieving this goal. SHW AG also has access to a syndicatedcredit line of EUR 60 million as well as additional debt and equityinstruments so that it can realise the organic and inorganic growthplanned. Year-on-year increase expected in Group sales and adjusted Group EBITDA inthe first quarter of 2015SHW got off to a good start in the new fiscal year. Group sales in thefirst two months of 2015 amounted to EUR 74.1 million, or 10.8 percenthigher than the previous year's level of EUR 66.9 million. Overall, theManagement Board expects Group sales in the first quarter of 2015 to beabove the previous year's level of EUR 104.8 million. First quarter 2015adjusted Group earnings before interest, taxes and depreciation andamortisation of tangible and intangible assets (adjusted EBITDA) areexpected to exceed the previous year's level of EUR 8.8 million.Under the assumption that the order situation will remain stable, SHWexpects Group sales in fiscal year 2015 to be in the order of EUR 460million. These expectations do not include the effects of the brake discjoint venture SHW Longji Brake Discs (LoungKou). Sales in the Pumps andEngine Components business segment are expected to be approximately EUR 360million based on further product launches and a shift in the product mixtowards more complex pumps. The aim of the Brake Discs business segment isto significantly raise the segment's proportion of higher value compositebrake discs and achieve sales of approximately EUR 100 million based on thestart of a major contract for composite brake discs from a Europeanautomotive manufacturer.In achieving the planned sales growth, the Company expects to reach Groupearnings before interest, taxes and depreciation and amortisation (adjustedEBITDA) in the order of EUR 46 million to EUR 50 million in 2015. Theearnings improvement should be driven mainly by:a) a sales increase of composite brakes by almost two thirdsb) additional sales contributions from pumps and engine componentsc) a turnaround in the Powder Metallurgy division d) the realisation of economies of scale after completing the adaption ofthe internal structuresAnother topic of focus in fiscal year 2015 for the Management Board will bethe optimisation of working capital. The aim is to achieve a sustainableworking capital ratio - the ratio of net working capital to sales - of 11percent on a monthly basis.SHW will publish its report for the 1st quarter of 2015 on 30 April 2015.The Annual General Meeting will take place on 12 May 2015 in Heidenheim. Key financial figures for fiscal year 2014 (in K EUR)Key figures - SHW Group                                   2014  2013  Change in %Sales                   430,041  365,639  17.6%EBITDA                   34,827  34,780  0.1%as % of sales           8.1%  9.5%  -EBIT                   16,575  20,607  -19.6%as % of sales           3.9%  5.6%  -Net income for the period  10,679  13,395  -20.3%Adjusted EBITDA           40,597  35,683  13.8%as % of sales           9.4%  9.8%  -Adjusted EBIT           22,495  21,661  3.9%as % of sales           5.2%  5.9%  -Equity                   84,507  82,529  2.4%Equity ratio           40.3%  44.4%  -Working Capital           30,877  31,894  -3.2%as % of sales           7.2%  8.7%  -Key figures - Pumps and Engines Components                                   2014  2013  Change in %Sales                    333,560  274,160  21.7%EBITDA                   27,286  29,114  -6.3%as % of sales           8.2%  10.6%  -EBIT                   13,371  18,675  -28.4%as % of sales           4.0%  6.8%  -Adjusted EBITDA           33,056  29,277  12.9%as % of sales           9.9%  10.7%  -Adjusted EBIT           19,181  18,878  1.6%as % of sales           5.8%  6.9%  -Key figures - Brake Discs                                   2014  2013  Change in %Sales                    96,481  91,479  5.5%EBITDA                   9,070  7,915  14.6%as % of sales           9.4%  8.7%  -EBIT                   5,013  4,466  12.2%as % of sales           5.2%  4.9%  -Adjusted EBITDA           9,070  7,932  14.3%as % of sales           9.4%  8.7%  -Adjusted EBIT           5,123  4,594  11.5%as % of sales           5.3%  5.0%  - About SHWThe Company was established in 1365 making it one of the oldest industrialcompanies in Germany. Today, SHW AG is a leading automotive supplierproviding products that make a substantial contribution to reducing fuelconsumption and, consequently, to lowering CO2 emissions. In its Pumps andEngine Components business segment, the SHW Group develops and producespumps for passenger vehicles and industry applications (e.g., trucks,agricultural and construction vehicles, stationary engines and wind farms)as well as engine components. The Brake Discs business segment develops andproduces monobloc ventilated brake discs made of cast iron and compositebrake discs made of a combination of an iron friction ring and an aluminiumpot. The SHW Group's customers include renowned automotive manufacturers,manufacturers of commercial, agricultural, and construction vehicles aswell as other suppliers to the automotive industry. Currently, the SHWGroup has four production sites in Germany located in Bad Schussenried,Aalen-Wasseralfingen, Tuttlingen-Ludwigstal and Neuhausen ob Eck, and onesite in Brazil (Sao Paulo). With just over 1,150 employees, the Companygenerated Group sales in fiscal year 2014 of EUR 430 million. Furtherinformation is available at: www.shw.deContact person Michael SchicklingHead of Investor Relations & Corporate Communications SHW AGTelephone: +49 (0) 7361 502 462Email: michael.schickling@shw.deFuture-oriented statementsThis press release contains certain future-oriented statements that arebased on 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 is for information purposes only and does neitherconstitute an offer to sell, purchase, exchange or transfer any securitiesnor a solicitation of any offer to sell, purchase, exchange or transfer anysecurities. The securities referred to herein have not been and will not be registeredunder the U.S. Securities Act of 1933, as amended (the "Securities Act")and may not be offered or sold in the United States absent registration oran exemption from registration under the Securities Act. SHW AG does notintend to register any securities referred to herein under the SecuritiesAct or with any securities regulatory authority of any state or otherjurisdiction in the United States in connection with this announcement.---------------------------------------------------------------------2015-03-16 Dissemination of a Corporate News, transmitted by DGAP - aservice of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP 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:      Regulated Market in Frankfurt (Prime Standard); Regulated               Unofficial Market in Berlin, Dusseldorf, Stuttgart           End of News    DGAP News-Service  ---------------------------------------------------------------------  333303 2015-03-16