Press Release

International rating agency Moody’s has upgraded the family-run company PERI in Weissenhorn (Germany) which is the world­leading manufacturer of formwork and scaffolding for the construction industry to investment grade. In doing so, they are recognizing the financial development of PERI, which during the years of the world­wide economic crisis has demonstrated great stability and, on the contrary, has greatly improved its positive market developments in this period.

On 8th September 2011 Moody´s increased the rating of the PERI Group from Ba1 positive outlook to Baa3 stable outlook. Therewith, PERI has also achieved admittance to the so-called investment grade bracket from Moody’s. Only assets that are judged as being sufficiently stable receive this investment grade, and they may, therefore, be bought by risk-shy investors, such as pension funds and insurance companies. PERI has already had this classification from the second­largest international rating agency, Standard & Poor´s since 2007.

“The fact that both of the large rating agencies have now assessed us as being in the investment grade bracket is a great success for PERI. It improves our financing options significantly” said Managing Director Christian Schwörer. PERI has been advised by Moody´s since 2004. The company, which remains to this day 100 % a family-owned and run business, required two ratings at that time in order to place an issue for the financing of the international growth of the group on the capital market. In the years that followed, PERI doubled its turnover from 615 million euros in 2004 to 1.225 billion euros in 2008. “Our business is very capital-intensive and when we grow, it costs a lot of money.” said Schwörer. Although PERI listed large reductions in revenues in 2009 and 2010, the debts could also be considerably reduced. “We have greatly cut back investments and, as a result, we have not had financial difficulties at any time. We have, therefore, acquired a great deal of trust from our banks and investors.”

At this time, the company is again on a course of growth: the turnover from the first half of the year 2011 was 21 % higher than that of the previous year. A significant contribution is currently being made by contracts for large projects, such as the new lock on the Panama Canal. In addition to South America, Eastern Europe has also demonstrated clear growth this year, while the situation of the company in Western Europe has also stabilized. The turnover in the twelve months from July 201 until June 2011 reached approximately 900 million euros, from which PERI generated around 10 % in Germany and the rest in a total of 53 other subsidiaries abroad.

The new classification is especially positive to observe against the current backdrop of insecurity on the financial markets and shows that Moody´s has confidence in the company, even while difficult economic conditions exist which perpetuate financial stability with lower levels of debt. At the end of the year, loans in excess of 250 million euros that were issued in 2004 will have been repaid. Financing has now already been secured.

Just recently PERI has been awarded third place in the study “The Brands of German Hidden Champions 2011”. This unique form of brand­ranking was exclusively compiled by Biesalski & Company for the WirtschaftsWoche, a leading German business magazine. It describes the strength of German brands controlled by their owners that occupy a leading position in their field on the global market. The brands were evaluated as well as the company performance index of the so­called hidden champions. The former factor describes the success of the company in establishing and leading a brand. The company performance, on the other hand, corresponds to company success in the marketplace, based on turnover, profitability, innovation, competence and position on the market. For this company performance, the study acknowledges PERI its first-class status among the companies considered.