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3 rd Quarter – Fiscal Year 2002/03 Investor Conference Call. Content. Key Achievements 3 rd Quarter Results & Developments Outlook & Conclusions 4 th Quarter and FY04. Key Achievements 3 rd Quarter.
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Content • Key Achievements 3rd Quarter • Results & Developments • Outlook & Conclusions 4th Quarter and FY04
Key Achievements 3rd Quarter • Third quarter sales: 5.6 % above prior year on currency adjusted basis, 5.3 % above Q2. • OPEX: Trend continues to favourably impact profitability – 11 % below prior year. • EBITDA and Net Income: Considerable increases over the prior year. • Net Debt: Further reduction of CHF 4.5m Continued stabilization – Strong earnings growth
Overview 3rd Quarter and YTD * Basic ** Amount is shown net of cash and capitalized debt issue cost/discounts
Content • Key Achievements 3rd Quarter • Results & Developments • Outlook & Conclusions 4th Quarter and FY04
Sales, EBITDA & Operating Expenses Sales EBITDA Operating Expenses Further reduction in OPEX
Divisional Sales Divisional Q3 Sales Divisional YTD Sales Currency adjusted sales Currency adjusted sales growth of 5.6%
Divisional EBITDA Q3 EBITDA YTD EBITDA Total EBITDA for 3rd quarter at 29m, or 14.8% of sales
Net Working Capital & Debt Trends Net Working Capital Net Debt* * Amount is shown net of cash (CHF 3.0m) and capitalized debt issue cost/discounts of CHF 3.3m Q3-FY03: Net Debt / Equity 72.1% EBITDA / Interest Cover 6.19 Further reduction in net debt in 3rd quarter of CHF 4.5m
Components of Intangible Assets Intangible Assets Components of Goodwill Over 50 % Goodwill is Leica LBO Goodwill
Capital Expenditures & Cash Flow Capital Expenditures Operational & Free Cash Flow * Intangible capex represents product development costs capitalized under IAS 38. Total investment in capital expenditures in 3rd quarter of CHF 11.7m
Employees Workforce Development Geographical Distribution Total workforce will decrease by additional 273 post divestment
Content • Key Achievements 3rd Quarter • Results & Developments • Outlook & Conclusions 4th Quarter and FY04
Outlook • Lower FY03 sales by approximately CHF 22m as a result of divestments. • In Special Products Division new anticipated 4th quarter sales in the area of CHF 9m, and CHF 110m for the full year. • Continued stability in other divisions with positive business momentum from new products. • Estimated full year sales in the range of CHF 730m to CHF 740m post divestments. • Full year EBITDA at the same level of the prior year. • Significant book gain from the divestments to be recorded in the 4th quarter. Positive adjustment of previous earnings guidance
Contact Contact Person: George Aase Director Investor Relations Leica Geosystems AG Heinrich-Wild-Strasse CH-9435 Heerbrugg (Switzerland) Internet:www.leica-geosystems.com E-Mail:George.Aase@leica-geosystems.com Tel. (Direct): +41 (0) 71 727 30 64 Tel. (Operator): +41 (0) 71 727 31 31 Fax: +41 (0) 71 727 46 78
Disclaimer This presentation does not constitute an offer or invitation to subscribe for, or purchase, any shares of Leica Geosystems Holdings AG. This presentation does in particular not constitute an offering circular within the meaning of Art. 652a of the Swiss Code of Obligations or a listing prospectus within the meaning of the listing rules of SWX Swiss Exchange or of any other exchange. In any event, investors are advised to base their decision to buy shares of Leica Geosystems Holdings AG in the market not only on the information contained in this presentation but to independently seek for advice from their bank or financial advisor. Under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, we caution investors that all statements other than statements of historical fact included in this document, including without limitation, those regarding our financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to our existing and future products), are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which we expect to operate in the future. Important factors that could cause our actual results, performance or achievements to differ materially from those in the forward-looking statements include, among other factors: (i) our ability to develop and introduce new products and technologies that gain market acceptance on a timely basis; (ii) our ability to respond to competitive challenges, such as the introduction of innovative products or technologies by our competitors; (iii) our ability to identify and realize growth opportunities; and (iv) overall levels of investment in infrastructure and capital spending in our markets. Additionally, any forward-looking statements speak only as of the date of this document. We expressly disclaim any obligation or undertaking to release publicly any update of or revisions to any forward-looking statement contained herein to reflect any change in our expectations with regard hereto or any change in events, conditions or circumstances on which any such statement is based.