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July 2008

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Polytec Hörsching, Austria Report Facts Company name: Polytec Holding AG Fiscal year end: December 31, 2007 Report title: Achievements, Targets, Strategy Chairman and CEO: Friedrich Huemer Number of books: 1 Report length: 84 pages Auditors: KPMG Austia Concept: BCA Mensalia Design: Rosebud Inc. E-mail: investor.relations@polytec-group.com	Report Rating 3.5/5 (Rating scale below) Profile-Mission (Excerpts, as from the report) The Polytec Group manufactures and assembles at 27 locations worldwide. It comprises three divisions: Automotive Systems (56% of sales); Automotive Composites (30%); Car Styling (11%). Products include: seat back panels, engine covers, cabin roofs and steps, oil scrapers, bumpers, clutch pedals... (Italics are own company’s words) Key Figures Group sales: EUR 665.0 million EBIT: EUR 41.0 million Net income: EUR 37.3 million Earnings per share: EUR 1.66 Dividend per share: EUR 0.30 (proposed) Return on capital employed: 23.9% Net profit margin: 5.6% Gearing: 18.4% (Source: figures sourced from the annual report) Some Competitors Autoliv Delphi Oerlikon Applied Materials Bosch Visteon Valeo Grammer

Brief Company founded in 1986 by Mr. Huemer and his wife. Initial Public Offering (IPO) at the Vienna Stock Exchange in April 2006. The 2007 Annual Report is the first to report for a full year as a listed company.

Prima > A cover that starts telling the story through headlines and a CEO portrait that shows some confidence. It really plays as a first step in packaging a communicative and convincing investment proposition. Despite its weak points, the whole reporting effort deserves praise, as such, but also when compared with established companies who has turned complacent or idle and could draw some inspiration here –and for some get back to their roots. > Key Figures are placed inside the front cover; are thorough; include year-on-year change columns, major ratios and cash flows; with some charted (including Balance sheet structure). > We kept our promises, states the founder and CEO in a straightforward six-page interview that also says that (sic) Banks are knocking on our doors and ends with a question about margin and… direction is more important than speed as a conclusion. > A nice blend of report content and a magazine-leaning style, illustrated e.g. in the Contents page (see below), and sustained throughout fifty percent of the book. > Milestones of the Polytec Group charts the history though sales progress and major events

Gut > Though too short, the Management Report features margins and other key ratios. > Questions to the Specialist are addressed to an… insider who joined the company in 1988 and enlightens. > Investor Relations section (pp 40-42) is matter-of-fact.

Aber... > The profiling job is done by small touches but doesn’t fully compensate for a more explicit mission statement. > Financial reporting, notes to statements, outlook and targets underdeveloped. > Governance lags far behind best practice. > Risk factors and management pushed to the notes and not up to demanding requirements. > Leave the front cover up because the ending and back covering are dull!

How does the company report in key areas? What are the main report pluses and minuses? The Report Scan gives an overview of strengths and weaknesses, and scores each item. Contact e.com@reportwatch.net

Selected Page (p 2 of Polytec Annual Report 2007)	Rating Scale 5 First-Rate 4.5 Excellent 4 Very good 3.5 Sound 3 Average 2.5 Uneven 2 Common 1.5 Substandard 1 Poor 0.5 Uncompetitive The rating is based on ReportWatch internal desk research and does not take into account the independent Rating Panel’s judgment.