Sales have grown at a double-digit rate over the previous year. In 2006, the goal is to reach an EBITDA exceeding 20 million euros. Tobacco Vending machines represent less than 10% of the business figures.

Madrid, May 25, 2006.- During a meeting with analysts today at the Madrid Stock Exchange, the Azkoyen Group presented its Strategic Plan for 2006-2009, which anticipates strong growth in its business lines.  Its main lines of action are aimed at simplifying and focusing the company and consolidating its position as European leader in high-value Strategic business, specifically, for Payment Systems and Vending Machines.

A change in trends has been experienced in 2006, with regards to 2005.  The Azkoyen Group recorded a significant increase in earnings during the first quarter of 2006, due to a large sales increase.  As a result, the business figures have reached 34.2 million euros, 23.3% more than the 27.72 million euros from the previous year. This growth in sales is reflected in the EBITDA, which has experienced a 28.5% improvement over the same quarter in 2005, with figures at 5.05 million euros. On the other hand, the EBIT has grown 84.4% with respect to the same period the year before, up to 3.22 million euros, while the Earnings Before Taxes have grown 112.8%, reaching 2.4 million euros. Finally, After-Tax Earnings (EAT) have grown 99.4%, reaching 2.01 million euros.

For Miguel Iraburu, Azkoyen president, “The company maintains a high level of activity following the previous year’s regulatory uncertainties. Now that Coges has been fully integrated, we face a period of significant growth from a privileged position that will allow us to consolidate ourselves once and for all as European leaders in our strategic activity sectors.”

 For the period 2007-2009, Net Sales are anticipated to have a Compound Annual Growth Rate (CAGR) above 10%, and the EBITDA and Cash Flow will increase percentage-wise above sales, thanks to improved operating margins as a result of better practices that have been implemented since 2005, and which will continue to provide results.

The Net Debt is 2.5 times greater than the Company’s EBITDA, following the purchase of Coges.  If it were necessary for future acquisitions, this could reach as much as 4 times the value of the EBITDA. 

Like last year, the proposal will be made at the next General Shareholders’ Meeting to make available one new paid up share for every 25 old shares.

Payment Systems

The Company will consolidate its leadership position in the market for this business unit, the pillar of growth for the Azkoyen Group, following the conclusion of the Coges integration process as a result of its acquisition last year.  It will also strengthen international expansion through a direct presence in the most important markets (the United Kingdom, Germany, Italy and France).

Vending Machines

Hot vending machine products will be the best-selling products over the next few years.  For this reason, the Azkoyen Group will strive for an increased market share in hot vending machines through its new product line, the strengthening of its commercial network and cutting costs.  At the same time, it will concentrate its efforts especially on the Spanish and British markets, while also trying to reach international agreements that would permit them not only to increase their market share, but also to improve their profitability.  

Tobacco Vending Machines

In spite of the decrease experienced over the last few years in the European market for tobacco vending machines, the Azkoyen Group has maintained its market share over the last few years, successfully adapting to new opportunities.  Azkoyen's strategy in this business unit consists of controlling the profitability of a niche business in which it is a leader, strengthening direct relationships with large tobacco companies on a worldwide level and adjusting investments and costs in a cash cow business line. 

Hotel and Restaurant Services

Azkoyen will continue to constantly improve upon its reoccurring business model.  In doing so, they will develop organic growth in the domestic market, paying particular attention to brand development and improving operational efficiency. 

At Present

In 2006, the company’s free float exceeds 50% and the shareholding structure is organized in the following manner: 16% belonging to the founding families, 11% to QMC (Nmas1), 9% to Cycladic Capital Management, 8% under the power of Competiber, and 5% in the hands of Fidelity.