JDC Group AG

Earnings Release • May 29, 2009

News Details

Corporate | 29 May 2009 08:00

ARAGON AG: Restrained start to 2009 due to market conditions – Total revenues of EUR 14.3m – Adjusted EBITDA of kEUR -146

ARAGON AG / Quarter Results

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• Restrained start to 2009 due to market conditions

• Total revenues of EUR 14.3m impacted by sustained buying resistance
  with regard to closed-end funds and investment funds

• Adjusted EBITDA of kEUR -146 proves stability of the business model

• Numerous acquisition candidates offer growth opportunities

Aragon AG, one of the leading financial services companies in Germany, made
a positive start to 2009 in an ongoing difficult market for financial
services.

Impacted by the sustained buying resistance with regard to closed-end funds
and the sharp decline in prices of investment funds, revenues fell 20.9%
year-on-year to EUR 14.3m (Q1 2008: EUR 18.1m). Adjusted for extraordinary
and non-recurring expenses which arose as part of the cost-savings
programme and totalled around EUR 0.3m, earnings before interest and tax
(EBIT) amounted to EUR -0.48m (Q1 2008: EUR 0.4m). Adjusted EBITDA stood at
EUR 0.15m in the first quarter of 2009 (Q1 2008: EUR 0.75m). Gross earnings
at Aragon AG amounted to EUR 3.8m in the first quarter of 2009 compared to
EUR 5.1m in the first quarter of 2008. The gross margin was down only
slightly in a quarter-on-quarter comparison from 28.0% to 26.8%.

Development of the individual segments

In order to be able to present the different activities of Aragon AG in an
even more transparent way, we optimised our segment reporting:

Our B2B activities relating to broker pools and platforms (with the
companies of Jung, DMS & Cie AG and BIT AG) are shown in the 'Broker Pools'
division.

Despite being the division worst affected by the financial and economic
crisis, Broker Pools continues to generate the most sales revenue in the
Aragon Group. Sales in the Broker Pools segment fell to EUR 11.9m (Q1 2008:
EUR 18.1m). The reasons for this decline lie above all in the historically
low sales of closed-end funds, falling sales in investment fund business
and the significant drop in commission on existing portfolios due to price
losses on the stock exchanges. EBIT amounted to EUR -0.85m (Q1 2008: EUR
0.34m).

B2C sales, that is the direct placement of financial products with end
customers and advisory services for end customers, will in future be pooled
in the 'Financial Consulting' division. This division includes the Compexx
Finanz Group, which recorded pleasingly stable development. In the first
quarter, sales amounted to EUR 2.2m with EBIT of EUR 0.26m. In the first
quarter of 2008, the Compexx Finanz Group was not yet included in the scope
of consolidation.

As before, the 'Institutional Sales' division comprises the sale of
financial products to institutional and semi-institutional market players
through our stake in Fundmatrix AG. This division was also affected by the
general market development and buying resistance with regard to investment
funds. However, the sales achieved by Fundmatrix AG fell only slightly to
EUR 0.34m and the EBIT margin also reduced only slightly from 48% to 35%.

Alongside Aragon AG, our shareholding in biw Bank für Investments und
Wertpapiere AG is now part of the 'Holding' division. biw has also
developed very positively in the first quarter of 2009. Compared to the end
of the previous quarter, biw increased the number of accounts it manages by
17% to 81,625 (70,032). The number of securities orders executed is on a
par with the previous year at 0.9 million. The EBIT contribution from the
Holding division stands at EUR -0.3m. Comparability with the same period in
the previous year is limited as biw Bank für Investments und Wertpapiere AG
was then still fully consolidated in the Banking and Banking Services
division.
'Overall, the performance in the first three months of the year shows that
the diversification strategy of our company successfully provides security
even in times of serious crisis,' explained Dr. Sebastian Grabmaier, CEO of
Aragon AG.

Cost savings successfully implemented

The cost-saving measures instigated in the fourth quarter of 2008 were
successfully implemented in the first three months of 2009. Compared to the
previous year, personnel expenses and operating costs - adjusted for
extraordinary and non-recurring expenses - were down by 7.5%. Adjusted by
the costs of the Compexx Finanz Group, which was not consolidated in the
corresponding quarter of the previous year, the cost savings would amount
to 22,3%. 'The rapid implementation of the cost-saving measures will ensure
that, even in difficult market conditions, we will return to profitability
in the medium term, without compromising our strong position,' emphasised
Ralph Konrad, CFO of ARAGON AG.

Numerous acquisition candidates offer growth opportunities

The successful conclusion of a transaction for Aragon to acquire the DVV
broker pool signalled the start of a series of further acquisitions,
facilitating our growth in spite of the general market trend. 'As the sole
market player with the necessary track record and competence, we can grow
successfully by means of acquisition. With the numerous acquisition options
available to us, we will continue to further expand our position as one of
the biggest financial services companies in Germany,' commented Wulf
Schütz, COO of ARAGON AG.

The quarterly report is now available for download from the company's
website at www.aragon.ag.

Publication of the results for the second quarter of 2009 is scheduled for
31 August 2009.

About Aragon AG

Aragon is a broadly diversified financial services company, with the
divisions: Broker Pools, Financial Consulting, Institutional Sales and
Holding. Aragon is active in the marketplace with multiple independent
subsidiaries. The company's aim is to integrate various distribution models
under one roof, without disturbing the individual identity of each sales
company. The result is a wide diversification across various asset classes
and distribution types, which generates a high stability in corporate
earnings. Further information about the company and its subsidiaries can be
viewed on the website: www.aragon.ag.

Contact:
Aragon Aktiengesellschaft

Ralf Funke
Investor Relations
Tel.: +49(0)611 890 575-0
Fax: +49(0)611 890 575-99
E-Mail: ir@aragon.ag

29.05.2009 Financial News transmitted by DGAP