Willkommen bei Von Roll

Zurich, March 31, 2004

Following its financial restructuring, at end 2003 Von Roll's equity totaled CHF 104 million, i.e. an equity ratio of 35%. Overall, in a year that bore no comparison with its predecessor, the company posted a loss of CHF 52 million. In Von Roll Isola's operative business the company once again had to endure a drop in sales of around 16%, conditioned by the market. The restructuring measures that had been launched and the clear, slight easing in the market since the late fall give us every reason to believe that the company will be back in profit in 2004, as planned.

Following the group's successful financial restructuring, which was challenging to those involved in all respects, Von Roll Group's performance indicators are very difficult to compare with those from the previous year. The radical reduction in the company's capital and the partial debt waiver or conversion of loans and bonds into shares boosted the Group's equity as at 31 December 2003 to CHF 104 million (compared with CHF 14 million the previous year), corresponding to an equity ratio of 35% (as against 2%). Bank debts were cut down to CHF 46 million (CHF 241 million). The sale of the Infratec and Inova divisions led to a striking balance sheet contraction, leaving total assets as at end 2003 of just CHF 294 million (CHF 679 million).

After the General Meeting, the two Von Roll shares ROL and ROLE will be combined. On the date of the General Meeting Mr. Peter Spuhler will step down from the Board of Von Roll, with our acknowledgement of the important role he played in restructuring the company. The Board will not be proposing any replacement to the General Meeting.

Von Roll Isola's operative business Now that its divestments are over, Von Roll will concentrate on the activities of Von Roll Isola. In 2003, its operative business was characterized by a further decline in orders (down 17%) and net sales (down 16%) conditioned by the market. Measures designed to absorb and correct this trend were launched in the late summer of 2003 and had started to kick in by the end of the year. The break-even point was lowered again, and the company's operative loss limited to CHF 7 million (compared with CHF 8 million the previous year).

The operative restructuring concept is based on the following four measures: administrative simplification and reduction of the associated costs; adaptation of production capacity to contracted market demand and the lowering of manufacturing costs; an enhanced capacity for innovation; and finally, a more intensive market presence. A maximum effort will be made to forge ahead with projects deriving from this approach as quickly as possible, acting within a clearly streamlined management structure. Any corresponding costs not already incurred in 2003 were deferred to the 2003 financial statement.

The year 2004 has started off in line with expectations. Order intakes and sales have, for the most part, stabilized since the late fall of 2003. This stabilization has been observed everywhere except in France. In North America there are clear indications of slight growth, and in Asia the market is continuing to develop in a very positive manner.

Extensive efforts will be required to get Von Roll firmly back on the road to lasting success. However, both the Board and the management firmly believe that this objective can be attained, and that the company will manage to book a positive result again in 2004, thanks to its ongoing restructuring measures.

Key Figures

General Meeting Wednesday, 26 May 2004, 10 a.m. in the Swissôtel, Zurich-Oerlikon

A complete version of the annual report can be downloaded on this site.

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