- At EUR 313.7 million, revenue is up 37 percent from the previous year
- Earnings before interest and taxes (EBIT) rise to EUR 41.1 million
- Number of employees of the Miba Group up by 20 percent

In the first three quarters of the current business year 2010-2011 (February 1 to October 31), Miba, strategic partner to the international engine and automotive industry, generated Group sales in the amount of EUR 313.7 million. This means an increase of 37.4 percent compared to the same period in the previous year. Earnings before interest and taxes (EBIT) also reflected the economic upturn, totaling EUR 41.1 million (compared to EUR 5.4 million in the previous year). At 13.1 percent, the EBIT margin stands well above the industry average.

Miba has emerged from the crisis stronger than before and continues to consistently implement its growth strategy. After the takeover of the British coatings specialist Teer Coatings (TCL) in the first quarter, in the third quarter, Miba entered the technology field of power electronics by acquiring the Styrian companies EBG and DAU. The takeover of Hoerbiger’s friction lining business for off-highway applications as of January 1, 2011, will mean growth for Miba in the strategic core segment of friction. “Our corporate goal is profitable growth, and we have utilized the opportunities on the markets to achieve it. Miba is growing both in its core segments and in new technology fields. Our engines are on full speed ahead,” says Peter Mitterbauer, Chairman and CEO of Miba.

Last year’s total sales volume has already been surpassed
Sales and earnings during the first nine months of the year reflected the positive economic development in Miba’s target markets. At EUR 313.7 million, sales were 37.4 percent or EUR 85.4 million higher than the same period in the previous year. Thus, sales during the first three quarters of the current business year have already topped last year’s total annual sales. Compared to 2008, the year prior to the economic crisis, Group sales revenue rose by EUR 15.7 million or 5.3 percent.

At EUR 41.1 million, earnings before interest and taxes (EBIT) reached the best value in the company’s history. All Miba business segments contributed to this increase. The EBIT margin of 13.1 percent was well above the industry average.

As of the reporting date October 31, 2010, the order level of EUR 192.3 million also represented a new record, which is 35.8 percent higher than the figure as of the end of the previous business year.

	Q1–Q3 2010-11	Q1–Q3 2009-10
Sales (in EUR million)	313.7	228.3
EBIT (in EUR million)	41.1	5.4
Investments in fixed assets (in EUR million)	22.1	10.8
Number of employees (as of October 31)	3,148	2,621

Number of employees jumps by 20 percent
As of the reporting date of October 31, 2010, employee headcount for the Miba Group worldwide was 3,148. This figure represents an increase of 20.2 percent or 527 employees in comparison to the previous year. Adjusted for the acquisitions, the increase in staff took place largely at Miba’s foreign sites, above all in Slovakia.

For many years, Miba has been a reliable provider of apprenticeship training in the region. The training center at company headquarters in Laakirchen is not the only place where Miba is training young people. Miba has had a training program in Slovakia for a number of years. By investing in the qualified specialists of tomorrow, the company will be able to draw junior staff from within its own ranks. As of October 31, 2010, 149 apprentices were being trained in the Miba Group (140 in the previous year). Currently, 114 apprentices are being trained at Austrian sites, while at Slovakian sites, 35 young people are undergoing training.

Investments financed from Miba’s own capital resources
In the first three quarters, capital expenditures in property, plant and equipment came to EUR 22.1 million (previous year: EUR 10.8 million) and were funded entirely through cash flow from operations (EUR 66.9 million).

Free cash flow (cash flow from operations minus cash flow from investment activities) totaled EUR 17.3 million or 5.5 percent of sales and contributed to the increase of net cash. Net cash went up since the last reporting date on January 31, 2010, by EUR 14.3 million to EUR 21.4 million. Group equity rose since the last reporting date on January 31, 2010, by EUR 32.2 million to EUR 239.0 million. Thus, the equity ratio was at 55.2 percent. Together with a robust financing structure, it ensures the financial autonomy and independence of the Miba Group.

Managing the economic recovery and shaping our future
We anticipate a stable and high production level in all segments for the rest of the year. However, customers’ order call-offs can be at very short notice, and cost pressure is mounting. “As quickly as the markets went into a tailspin, so rapid is the recovery now. We now need to manage this uptrend successfully, retaining as much flexibility as possible in order to be able to react in the short term to customers’ requirements,” explains Chairman and CEO Peter Mitterbauer.

In the coming months, continuing integration of the newly acquired companies EBG and DAU into the Miba Group will be particularly important. Miba Friction Group is working hard on the preparations for the takeover of the friction lining business from Hoerbiger. Machinery and equipment will be relocated from Hoerbiger in Germany to Miba sites in Roitham and Vráble, which will mean significant growth for both sites.

Miba is future-oriented. Expansion into new business fields is complementing growth in our core segments and is helping Miba to achieve the ambitious targets set forth in the corporate vision statement “Miba 2015”.

- Miba continues to focus on its expansion strategy and takes over HOERBIGER Drive Technology’s friction lining business for off-road vehicles
- Miba strengthens its global presence in friction linings, a strategic core segment
- Miba Friction Group grows by more than half and reaches a global leading market position in the segment Off-road
- Incremental relocation of production to Miba sites is to begin in early 2011 and creates more than 100 new jobs

Miba and HOERBIGER agreed to gradually transfer the off-road vehicle business of HOERBIGER Drive Technology to Miba beginning January 1, 2011. Over the course of the 2011 business year, production of friction discs for off-road vehicles is to be handed over from Schongau, Germany to Miba sites in Austria and Slovakia step by step. Miba takes over HOERBIGER Drive Technology Pvt. Ltd. in Pune, India, on January 1, 2011.

“With the takeover of HOERBIGER’s friction lining production, Miba is continuing its successful expansion. We are growing in one of our strategic core areas, friction, and we are joining together the activities of two experienced partners. The new site in India expands Miba’s global network, providing our customers with the best possible support through local production,” says Peter Mitterbauer, Miba CEO. Miba Friction Group grows by more than half and reaches a global leading market position in the strategic segment Off-road.

For more than 30 years, Miba Friction Group has been a development partner and supplier of high-performance friction linings for the international motor vehicle and machinery industry. Friction linings are the decisive factor in the performance of vehicle clutches and brakes, and serve to optimize speed and power. In the area of off-road vehicles, friction linings are used in clutch and brake systems in construction machinery, tractors, marine vessels and special-purpose vehicles. Miba Friction Group operates four sites, located in Roitham, Austria; Vráble, Slovakia; Sterling Heights, Michigan, USA; and Pune, India.

The takeover of HOERBIGER Drive Technology machinery and equipment as well as their relocation from Schongau, Germany, to the Miba sites in Roitham and Vráble, is to take place gradually beginning in January 2011. In the medium term, Miba creates more than 100 new jobs on the two sites. The Miba Friction Group presently has 560 employees.

“A professional relocation project being carried out by two experienced and reliable companies will ensure that our customers are continuously provided with technologically sophisticated friction systems,” says Peter Mitterbauer. Miba and HOERBIGER share the same high standards of quality and supply capacity. By bringing together the know-how as well as development and production skills of two longstanding successful companies in the area of friction systems, Miba offers its customers an even more comprehensive global service in the future.

- Half-year revenue stands at EUR 203.1 million, up 37 percent from previous year
- Incoming orders promisingly strong in all business segments
- Miba enters new technological field by taking over Styrian manufacturer of power electronic components

Miba, strategic partner to the international engine and automotive industry, generated group sales of EUR 203.1 million in the first half of 2010-2011 (February 1 to July 31, a 36.8 percent increase over the same period the previous year. Earnings before interest and taxes (EBIT) also reflected the economic upturn, totaling EUR 27.9 million (compared to EUR 2.4 million the previous year). The EBIT margin was once again very strong at 13.7 percent.

“Miba is the leanest and strongest it’s been in a long time,” said Peter Mitterbauer, Chairman of the Board for Miba. “Our consistent focus on high technology and our strict cost management have equipped us for future opportunities that we are now seizing. We continue to be oriented toward profitable growth.”

In late August, Miba took over the Styrian firms EBG and DAU, companies that develop and produce components for power electronics. With this acquisition, Miba is entering a new and promising technological and product area.

Level of orders on the rise
The Miba Group’s level of orders also reflects the economic upturn. As of July 31, 2010, orders stood at EUR 168.7 million, up 19.1 percent from the end of the previous business year (January 31, 2010: EUR 141.6 million).

“The economic recovery over the course of the first half, the positive business trend and our customers’ current release volumes indicate that the economic upturn will continue - although leveled - in the second half of the year. However, we continue to be confronted with order call-offs at very short notice. The option of higher flexibility is urgently needed in order for us to be able to react to this,” said Miba CEO Peter Mitterbauer.

	First Half 2010-11	First Half 2009-10
Sales (in EUR million)	203.1	148.5
EBIT (in EUR million)	27.9	2.4
Investments (in EUR million)	18.3	7.9
Number of Employees (as of July 31)	2,874	2,541

As of July 31, 2010, Miba employed 2,874 people worldwide. This represents an increase of 13.1 percent or 333 employees in comparison with the previous year (2,541 employees). Adjusted for the first-time inclusion this business year of the employees of Teer Coatings Ltd, the increase totaled 10.9 percent or 276 employees. The increase in staff took place largely at Miba’s non-Austrian sites, above all in Slovakia.

As a responsible long-term employer, Miba places great importance on apprentice training. Once again this September, 30 young women and men are beginning their training at Miba sites in Austria. Apprentice training is gaining increasing importance at Miba sites in Slovakia, where Miba is currently training 20 young people.

Solid financial structure ensures room for Miba to maneuver
Investments in property, plant and equipment totaled EUR 18.3 million in the first half of the business year, and were once again funded entirely through cash flow from operations (EUR 46.5 million). Free cash flow (cash flow from operations minus cash flow from investment activities) totaled EUR 25.1 million.

Group equity stood at EUR 231.2 million, up EUR 24.4 million from the end of the previous business year, bringing the equity ratio to 57.9 percent. As of July 31, 2010, net cash once again increased considerably, totaling EUR 30.0 million (reporting date January 31, 2010: EUR 7.1 million).

Financial autonomy and a solid equity ratio secure the Miba Group’s independence and provide the latitude necessary to pursue the corporate goal of profitable growth and to further the company’s technology leadership.

Miba seizes opportunities for growth
Miba consistently adheres to its fundamental strategic orientation. Profitable growth remains our unwavering corporate goal. The key driver of this growth is Miba’s technology leadership, which is secured and expanded through constant engagement with promising new technologies for more efficient drives and resource-efficient mobility. Miba has also taken another step forward by entering the growing energy sector. With the newly acquired companies EBG and DAU, Miba is expanding its product portfolio and strengthening its capabilities in promising technologies in the areas of energy production, energy use, and electric drives.

- Miba continues expansion strategy with move into growth area – energy
- EBG and DAU will be part of the Miba Group as of September 1, 2010
- Styria-based companies with annual sales of approximately EUR 30 million and staff headcount of around 130


Miba, strategic partner to the international engine and automotive industry, has acquired EBG and DAU, producers of power electronics components, as of September 1, 2010. The Styrian group, which generates annual sales of EUR 30 million, has production sites at two locations in Styria (Austria).

EBG and DAU are innovative specialists in passive electronic components such as resistors and cooling systems for power electronics. The hitherto family-owned companies employ around 130 people at their Kirchbach and Ligist sites in Styria.

"In acquiring these companies Miba is continuing with its growth strategy. This is a move into a new area of technology and products with enormous potential for the future, and constitutes active investment in a major trend – energy. High-performance components for power electronics are a key to more efficient drive systems and the steadily growing use of renewable energy sources such as wind power," explains Miba CEO Peter Mitterbauer.

EBG is a specialist in passive electronic components. At its Kirchbach site in south-east Styria it develops and produces precision high-voltage, high-performance resistors. EBG has operations all around the world, and its client list includes a number of major power electronics groups. In development and production, the company focuses on technologically advanced niches and special applications and is valued by its clients as a high-quality, high-end partner.

DAU is an internationally known development partner and provider of thermal solutions such as air-cooled and liquid-cooled heat sinks and heat pipes. It develops high-performance heat sinks for power semiconductors used to control for example engines and electrical drive systems.

"The Miba vision is 'No power train without Miba technology'. By acquiring EBG and DAU we're taking another step towards achieving that vision and moving into an absolute growth area – energy generation, energy utilization and electrical drive systems. The new companies will broaden Miba's product portfolio and strengthen its competencies in futureoriented technologies," says Mitterbauer.

EBG and DAU will pursue their technology leadership and, as part of the Miba Group, will be oriented to profitable growth.

- Volume bought back: 152 shares

- Average price: 90.00 euros

Miba AG has successfully completed its share buyback program 2009-10. Between August 1, 2009 and July 31, 2010 152 own shares, i.e. 0.0117 % of the capital stock, were bought back at an average price of 90.00 euros. In total Miba AG invested 13,680.00 euros in the program.

The General Meeting of Shareholders of Miba Aktiengesellschaft of 6/19/2009 adopted a resolution to authorize the Management Board in accordance with Article 65, paragraph 1, line 8 and paragraphs 1a and 1b of the AktG (Austrian Companies Act) to acquire own shares (category “B” preferred shares) up to a maximum of 10% of the share capital of the company for a period of 30 months from the day said resolution was adopted, with the lowest nominal value to be paid for the buyback amounting to EUR 50.00 and the highest amounting to EUR 200.00, and to lay down the buyback conditions, provided that the Management Board publishes each of its resolutions as well as the respective buyback programs including their duration in accordance with the legal requirements. The authorization can be exercised entirely or in part as well as in several partial amounts and while pursuing one or several purposes by the company or for a third party on behalf of the company. Trading in own shares as the purpose of acquisition is excluded.

Furthermore, the Management Board was authorized to sell own shares (category “B” preferred shares) acquired on the basis of the above-mentioned resolution for the purpose of issuing the shares in return for the acquisition of companies, operations, independent divisions of enterprises or participations in one or more companies within or outside Austria in other ways than via stock markets or public offerings excluding the subscription right of the shareholders for a period of 5 years from the day the resolution was adopted, provided that the Supervisory Board gives its approval.

During its meeting on July 16, 2010, the Management Board decided to exercise its authorization to buy back company shares.

Details of the share buyback program:

Duration:	August 1, 2010 to July 31, 2011
Class of shares:	category “B” preferred shares
Intended volume:	up to 30,000 category “B” preferred shares (up to approximately 2.3% of the share capital)
Acquisition price:	between 50 euros and 200 euros
Acquisition method:	via the stock market
Intended purpose of the acquisition:	The buyback is carried out for any permitted purpose, in particular to use own shares for the purpose of issuing shares in return for the acquisition of companies, operations, independent divisions of enterprises or participations in one or more companies within or outside Austria.

Any modifications and any transactions performed in the context of the share buyback program will be published on the website of Miba Aktiengesellschaft under http://www.miba.com in accordance with Articles 6 and 7 of the Veröffentlichungsverordnung (Austrian Publication Regulation).

- Miba invested 30 million dollars in production sites in Ohio
- New sinter site for energy-efficient engine and transmission components
- New production line for high performance truck engine bearings
- Miba creates 80 new jobs in McConnelsville, Ohio, USA

Miba, strategic partner to the international engine and automotive industry, opened a new production site for sintered components in McConnelsville, Ohio, USA, on June 29. At the new site, about 60 employees will produce four million engine and transmission sintered components per year for use in passenger cars. USD 16 million have been invested in the new plant. At the same time, sister site Miba Bearings US is launching a new production line for high-performance engine bearings for trucks. Miba Bearings US employs 240 people; the investment was around USD 14 million.

“At the new Miba Sinter USA site we are producing energy-efficient engine and transmission components for the North American market. This means we are near the customer and are producing large volumes in the same place where they are distributed,” said Peter Mitterbauer, CEO of the Miba Group. Construction of the new site, which was built alongside the sister plant Miba Bearings US, began in 2009. At the first stage of expansion, Miba is running two production lines. 60 employees will produce an output of 4 million parts per year. The products being produced at the new sinter plant are high-precision, high-strength and technologically demanding components used in engines and transmissions for passenger cars. “These new technologies significantly reduce fuel consumption and emissions in passenger cars. The Miba Group was at the forefront in the development of powder metallurgy components for these uses. Now we are strengthening our market position in the USA through our local production site,” said Harald Neubert, CEO of the Miba Sinter Group.

Miba creates about 60 new jobs at the new site. Miba’s customers, internationally prominent engine and transmission manufacturers, are increasingly adopting new technologies for smaller power trains in more energy-efficient vehicles. Additional production lines have been planned for the next phase of expansion.

Synergies with Miba Bearings US and the valuable support of friendly local policies were key factors in Miba’s decision to build the new plant in McConnelsville. Miba has been producing in Michigan, USA, since 1989. The takeover of the engine bearings site Miba Bearings US in McConnelsville followed in 2001. Together with the new sinter site, a new production line for high-performance engine bearings is being opened, which also creates new job opportunities in McConnelsville.

New production line for high-performance engine bearings
Roughly USD 14 million have been invested in the new line, which produces lead-free engine bearings for use in a new generation of heavy-duty truck engines. Customers are producers of truck diesel engines in America. “Being located near the customer is considered an absolute competitive advantage. This bearing technology has been in development since 2004. Miba’s high-tech materials are what sold the client on us,” explained Wolfgang Litzlbauer, CEO Miba Bearing Group. The new production line has a yearly output of 4 million parts. In the future, about 70,000 engines per year will be equipped with main and conrod bearings from the new production site in the USA.

“Our clear strategic orientation is toward high technology. The two plants in McConnelsville with currently around 260 employees comprise an important production center for Miba and will further grow. These high-performance sites secure our long-term ability to provide high-quality products to our American customers,” said Peter Mitterbauer, Chairman of the Miba Management Board.

The General Meeting of Miba AG today decided to distribute a dividend of 2.50 Euros per share (previous year 3.00 Euros) for the fiscal year 2009-10. Based on the share price at the balance sheet date (January 31, 2010), this represents a dividend yield of 3.1 percent.

The 24rd Annual General Meeting held on June 25, 2010 decided to distribute a dividend of 2.50 Euros per common and preferred share for the fiscal year 2009-10 (as at January 31, 2010). By reducing the dividend from 3.00 to 2.50 Euros per share, Miba is taking the general economic situation into account. In addition, it underscores the company's continuity in paying dividends and gives shareholders an appropriate return on the capital they have invested. July 7, 2010 was set as the date of payment for the dividend.

- Sales increase by 31.9 percent to EUR 98.0 million
- Earnings before interest and taxes return to pre-crisis level
- Takeover of British coating specialist Teer Coatings Ltd. in April
- Opening of the new sinter production site and a new production line for highperformance engine bearings in the USA in June

Miba, strategic partner to the international engine and automotive industry, had a strong start to the new business year. Results and new orders significantly surpassed expectations in the first quarter. Group sales increased during the first quarter of 2010-2011 (February 1 to April 30) to EUR 98.0 million, a 31.9 percent rise from the same period the previous year. Sales have thus nearly returned to the level of the strong first quarter of 2008. Earnings before interest and taxes (EBIT) totaled EUR 13.5 million, considerably above the previous year’s level of EUR 1.2 million for the same period. The EBIT margin reached 13.7 percent, a very good level in industry comparison.

“Miba has emerged from the crisis even stronger than before thanks to our persistent focus on high technology and our strict cost management. We have a sound financial structure and we’re equipped for the challenges and opportunities the future will bring,” says Peter Mitterbauer, Chairman of the Miba Management Board. In April Miba took over Teer Coatings Ltd., Droitwich, UK. The know-how of this British coatings specialist will enable Miba to now offer its customers an even broader range of coating solutions. During the first quarter of 2010-2011, the Miba Group continued to focus its activities on strategic management of working capital and on strengthening liquidity. Miba’s earnings before taxes (EBT) totaled EUR 13.4 million, compared to EUR 0.6 million for the same period the previous year.

Investments in property, plant and equipment amounted to EUR 3.8 million in the first quarter of 2010-2011 and were once again financed entirely from operational cash flow (EUR 19.8 million). Free cash flow (cash flow from operations minus cash flow from investment activities) totaled EUR 11.2 million.

Sound financial structure ensures Miba’s independence
Net cash increased again to total EUR 18.9 million as of April 30, 2010 (EUR 7.1 million as of January 31, 2010). Group equity amounted to EUR 221.1 million as of April 30, 2010 (EUR 206.8 million as of January 31, 2010), an equity ratio of 59.5 percent. A sound financial structure and a solid equity base ensure the financial independence and autonomy of the Miba Group.

	First Quarter 2010-11	First Quarter 2009-10	First Quarter 2008-09
Sales (in EUR million)	98.0	74.3	102.2
EBIT (in EUR million)	13.5	1.2	13.3
Investments (in EUR million)	3.8	5.1	11.3
Number of employees (as of April 30, 2010)	2,720	2,633	2,813

As of April 30, 2010, Miba had 2,720 employees worldwide. In comparison to the previous reporting date (January 31, 2010), this represents an increase of 3.8 percent or 100 employees. Adjusted for the employees of Teer Coatings Ltd., Droitwich, UK, who were included in the employee figure for the first time on April 30, 2010, the increase totaled 1.6 percent or 42 employees. The expansion of the Miba workforce took place primarily at the sites in Slovakia and China.

Solid progress in incoming orders
The Miba Group’s level of new orders also reflected the recovery in the company’s target markets. As of April 30, 2010, orders totaled EUR 160.3 million, 13.2 percent higher than the level at the end of the previous business year (EUR 141.6 million as of January 31, 2010). “The second half of this year will show whether this progress proves sustainable. We are confronted with strong fluctuations in customer call-offs of orders. This demands a high degree of flexibility on our part while making it more difficult for us to plan and to make reliable forecasts,” says Peter Mitterbauer, Chairman of the Miba Management Board.

Miba relies on a proven strategy
Under these challenging market conditions, Miba continues to count on technology leadership and competitive cost structures while making a solid liquidity base and a highly skilled team top priorities. With the opening in the USA of a new sinter site at the end of June 2010 and a new line for high-performance engine bearings, Miba is meeting the demand for energy-efficient high-performance transmission components and is therefore where the customer needs it.

- Miba focuses on technologically sophisticated key components for future generations of drives
- Positive EBIT of EUR 16.4 million despite sharp decline in demand
- Equity ratio rises to 60.1 percent
- Miba gains market share and invests in new business segments

Miba, a strategic partner to the international engine and automotive industry, generated consolidated sales of EUR 311.8 million in the 2009-2010 business year. With earnings before interest and taxes (EBIT) of EUR 16.4 million, Miba’s performance was excellent in comparison to other companies in its sector. The new business year is off to a strong start:

- Miba takes over the British coatings specialist Teer Coatings Ltd. in April
- Miba Sinter Group opens a new site in McConnelsville, Ohio, USA in June
- Miba Bearing Group starts production of high-performance engine bearings for trucks in the USA

“The business year 2009-2010 was one of the most challenging in the history of Miba,” says Miba CEO Peter Mitterbauer. “We have proven that we can hold our own in hard times – Miba posted positive results in every quarter. At the beginning of the year we concentrated on the right things: quickly adjusting our cost structure to our customers’ call-off volumes and securing our liquidity for the long term. Our clear strategic orientation to technologically sophisticated products and technologies for the future is proving its worth.”

The first three quarters of 2009-2010 were marked by the global recession. The fourth quarter, on the other hand, showed signs of an improving economic situation. In the 2009- 2010 business year Miba generated group sales totaling EUR 311.8 million, a 16.8 percent decline from the previous year. Miba performed well in comparison to others in its industry. Thanks to quick and resolute action at the beginning of the business year, in 2009-2010, Miba was able to generate positive earnings before interest and taxes (EBIT) of EUR 16.4 million. The EBIT margin stands at 5.3 percent. Earnings before interest, taxes, depreciation and amortization (EBITDA) totaled EUR 45.6 million.

Liquidity Secures Independence
In 2009-2010, Miba particularly focused on strengthening liquidity for the long term. At EUR 50.8 million, cash and cash equivalents were significantly up from the previous year’s figure of EUR 24.6 million. Successful liquidity management is also reflected in Miba’s net cash of EUR 7.1 million as of the reporting date January 31, 2010. In comparison, the Miba Group posted net debt of EUR 19.3 million as of January 31, 2009. The equity ratio rose further, reaching 60.1 percent. This ratio underscores Miba’s robust capital structure and secures the company’s financial independence.

Growth Through Technology
Expenditures to secure and expand our technology leadership remained high. In the 2009- 2010 business year, Miba invested EUR 18.7 million in R&D despite a decrease in revenue. This represents a research budget of approximately six percent of the total sales volume. Miba focuses on the development of components for high-performance, efficient and alternative drives:

• Miba Bearing Group’s heavy-duty and fully lead-free engine bearing solutions are used in modern and fuel-efficient diesel motors for trucks. The features of new materials make it possible for future generations of bearings to meet stricter environmental regulations. Beyond combustion engines, the area of wind power stations offers major potential for the application of Miba engine bearings technology; the first patents are pending.
• Miba is a strong technological partner in the development of smaller, economical and energy-efficient motors and transmissions. Miba Sinter Group components for doubleclutch transmissions and servo synchronizers make a crucial difference in increasing shifting comfort and fuel economy.
• Miba Friction Group scores with its developmental know-how in the area of wind turbines. A new friction material with a higher energy load rating contributes to the improved performance of wind power stations.
• The consistent further development of functional component coatings for minimized friction also brings Miba a step closer to fulfilling our vision: No power train without Miba technology.

Strategically Targeted Investments
A total of EUR 19.5 million was invested within the Miba Group in production capacity and product quality (compared with EUR 43.1 million the previous year). About 72 percent of investments in the past year went to the sites in the USA and China. These investments serve the further expansion of Miba’s position in these strategically significant markets. Cash flow from operations fell to EUR 48.1 million, down from EUR 51.6 million a year earlier. This is essentially due to the decrease in operating income. Once again, Miba fully financed its capital investments out of the company’s own capital resources.

	2009-10	2008-09
Sales (in million €)	311.8	374.6
EBIT (in million €)	16.4	34.5
EBT (in million €)	15.5	30.9
Investments in fixed assets (in million €)	19.5	43.1
Number of employees (yearly average)	2,613	2,855

Miba Holds Onto its Core Staff
In 2009-2010, Miba had an average of 2,613 employees worldwide, compared with 2,855 the previous year. As of the reporting date of January 31, 2010, the headcount totaled 2,620 (compared with 2,825 on January 31, 2009). Staff cuts resulted from capacity adjustment measures. Personnel expenses in 2009-2010 totaled EUR 108.8 million, an 11 percent decrease from the previous year (EUR 121.7 million).

In the past five years, Miba has created approximately 750 new jobs. As a responsible employer, Miba set itself the declared goal of holding onto its qualified core staff despite the difficult months. The company reacted to the reduction in orders with a broad range of personnel policies such as reduced overtime and vacation time, educational leaves, reduced working hours and the introduction of new models for working hours. Reduced working hours were ended at the end of January 2010. Apprentice training remains highly significant: In 2009, 28 young men and women began their training as production technicians at Miba.

Miba Bearing Group Expands Sites in China and the USA
Miba Bearing Group generated revenues of EUR 132.6 million in the past year. It thus accounted for 42.4 percent of total Miba Group sales, making it the leading business unit. Targeted capital investments in research and development, the retention of qualified core staff, and the unwavering commitment to continuing strategic projects were key reasons why expenditures did not decrease to the same extent as revenue. In 2009-2010, earnings before interest, taxes, depreciation and amortization (EBITDA) totaled EUR 24.1 million (compared to EUR 33.4 million the previous year). As a leading development partner for engine bearings, the Miba Bearing Group is there where the customer needs it. Series production of large bearings for boats and high-speed ferries started successfully in China in summer 2009. Production of high-performance engine bearings for diesel truck motors starts this June in McConnelsville, Ohio, USA.

Miba Sinter Group Raises Profitability
At the end of the 2008-2009 business year, Miba Sinter Group became the first business unit hit by the effects of the financial and economic crisis. The economic stabilization measures introduced in many countries around the world (such as “cash for clunkers” programs), along with a series of new projects, made it possible for Miba Sinter Group, with revenues of EUR 125.7 million (compared to EUR 135.4 million the previous year), to post a decrease of only seven percent, relatively low in industry comparison. The consistent implementation of measures introduced ahead of schedule, such as the temporary shutdown of systems, led to an increase in profitability despite declining revenue. EBITDA improved from EUR 18.6 to 19.7 million. Miba Sinter Group is opening a new site in McConnelsville, Ohio, in June. The USA is a future market for Miba technology in the area of energy-efficient and low-emissions motors and transmissions.

Miba Friction Group Increases Research Budget
The revenue of the Miba Friction Group totaled EUR 51.1 million in 2009-2010, a 33 percent decrease from the previous year. This business unit thus generated 16.2 percent of total Miba sales. The decline in revenue was in part responsible for a negative EBITDA of EUR 0.5 million (compared to positive EBITDA of EUR 9.2 million the previous year). Despite the turbulent economic conditions, the Friction Group consistently invested in R&D. Investment accounted for seven percent of revenue in the past year.

Outlook: New Opportunities for Miba
Miba had a strong start in the 2010-2011 business year. In some segments the volume of new orders nearly reached pre-recession levels. Customers’ call-off volumes, however, are subject to major fluctuations, and the planning horizon remains very limited. “We have a good overview of the first half of the year, but at the moment it is difficult to foresee how the second half will develop,” says CEO Peter Mitterbauer. Customer cancellations on short notice increase the complexity of planning and require a high level of flexibility from the company.

“Miba is well equipped for the challenges and opportunities it confronts. A high level of technological skills, a solid liquidity base and qualified employees are the crucial factors that will enable the company to emerge from this recession in stronger shape,” Mitterbauer says. The situation on the markets abroad is positive, also in the USA. Markets such as China, India and Brazil also show major growth potential. Strategic investments in building and expanding the sites in China and the USA further strengthen Miba’s market position as a technology leader. In the area of coatings, the April takeover of the coatings specialist Teer Coatings in Droitwich, UK, has expanded Miba’s expertise and product portfolio.

In the current business year we are focusing on the topics of quality, flexibility and health. Activities in the area of Business Excellence reflect our constant efforts for high business quality. “One of Miba’s strengths is our good reputation with our customers. Customer satisfaction is a high priority and stands at the center of our relentless striving for the highest quality and reliability,” Mitterbauer concludes.

- Miba expands its expertise and product portfolio in the highly specialized surface coating segment
- Teer Coatings Ltd. is one of the world's technology leaders in the area of PVD coatings
- Coating expertise is pooled within the Miba Coating Group

Miba, a strategic development partner of the international engine and automotive industry based in Laakirchen, Upper Austria, is taking over the British coating specialist Teer Coatings Ltd., Droitwich, UK, as of April.

“With the takeover of technology leader Teer Coatings we are expanding our expertise and product portfolio in the highly specialized coating segment. This is a key way to foster the innovation and competitiveness of our customers,” says Peter Mitterbauer, Chairman and CEO of the Miba Group.

In July 2009 Miba acquired a 24.9 percent interest in Teer Coatings Ltd.; now the 100 percent takeover follows.

With about 50 employees, the site in Droitwich, UK, specializes in the development and production of friction-minimizing, wear-resistant coatings. Along with small batch and special production, the site focuses on systems engineering as well as research and development. The most recent annual sales figure is approximately 4 million British pounds.

With sites in Vorchdorf, Niklasdorf and now Droitwich, UK, Miba Coating Group specializes in polymer coatings, electroplated overlays and PVD coatings. “We are an active development partner to the international automotive industry. Through the know-how of Teer Coatings we are able to provide our customers with even more comprehensive solutions in the area of friction and scuffing reduction, service life extension, and reduction of parts costs,” says Therese Mitterbauer, managing partner of High Tech Coatings in Vorchdorf.

Teer Coatings will be integrated into the Miba Group and is oriented towards profitable growth through technology leadership.