RATIONAL (RAA) Q4 2004 earnings summary

Executive summary

• Record 2004 sales of €221.8m, up 19% YoY, supported by the global launch of the SelfCooking Center; world market share rose from 49% to 51%.

• Double-digit sales and earnings growth targeted for 2005, driven by the new product platform, expanded sales network and substantial untapped market potential.

Financial highlights

• Revenue €221.815m, up 19%; gross profit €131.558m versus €108.474m in 2003.

• EBIT €53.560m, up 26.5%; EBT €54.073m versus €42.597m.

• Group earnings €34.065m, up 27%; diluted EPS €2.99 versus €2.36, while undiluted EPS was €3.00.

• Operating cash flow €39.232m versus €29.787m; investing in tangible and intangible assets totaled €5.722m.

Outlook and guidance

• Management expected double-digit sales and earnings growth in 2005, citing successful product adoption, sales-network investment and untapped demand.

• Asia and Eastern Europe forecast as key contributors to global growth; Western Europe’s export-led expansion expected to flatten, with Japan’s upturn likely to slow.

• State-of-the-art cooking technology had reached ~20% of 2.5m potential customers, leaving a large opportunity for continued organic growth.