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Earnings Release • Aug 18, 2010

News Details

Corporate | 18 August 2010 13:08

HCI Capital AG: Successful financial reorganisation

HCI Capital AG / Half Year Results

18.08.2010 13:08

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HCI Capital AG - Successful financial reorganisation

* Release from contingent liabilities for guarantees and placement
guarantees completed
* Consolidated net result for the first half-year 2010 increases by EUR 46
million to EUR 9.9 million
* Consolidated equity at EUR 51 million following non-cash capital
increase, equity ratio at 45%
* Equity capital of EUR 85 million invested in HCI funds (previous year:
EUR 73 million)
* Financial reorganisation enables HCI to achieve sustainable
strengthening of capital base and long-term stability

Hamburg, 18 August 2010 - HCI Capital AG, one of the leading issuing houses
for closed-end funds, has taken a crucial step towards sustainably
strengthening the Group. As part of the implementation of the restructuring
agreement concluded with the banks in February this year, all of the
Company's major guarantees and placement guarantees to banks - totalling
some EUR 1.6 billion - have been cancelled. In addition to this, the HCI
Group succeeded in building on the good developments seen in Q1 2010 and
finished the first six months of the year with a clearly positive
consolidated net result of EUR 9.9 million (previous year: EUR -36.1
million).

The HCI Group concluded a restructuring agreement with its creditor banks
back on 11 February 2010. This established a moratorium covering all the
major guarantees and placement guarantees to these banks - totalling some
EUR 1.6 billion - until 30 September 2013. The release from contingent
liabilities that has now been achieved has cancelled these guarantees in
full. With this move, the HCI Group has reached a crucial milestone in the
Company's financial reorganisation that provides its funds business with a
solid and reliable foundation for the long term. In addition to this, on 10
August 2010 two of HCI's creditor banks decided to convert loan receivables
payable by the HCI Group into equity. This corporate action brings about an
increase in the Group's equity to approximately EUR 51 million based on the
figures as of 30 June 2010. The capital increase takes the equity ratio to
around 45%.

'The HCI Group has systematically implemented a complete financial
reorganisation and thereby successfully adapted to the changed market
conditions,' says Dr. Ralf Friedrichs, Chairman of the Management Board of
HCI Capital AG. 'This means that HCI is now on a sound footing and in the
ideal competitive position to capitalise on the opportunities presented by
the recovering market.'

Positive H1 result - positive full-year result expected for 2010

On balance, the financial reorganisation measures greatly benefit the HCI
Group's earnings performance. A one-off profit in the course of the equity
conversion substantially overcompensated for the costs of the release from
contingent liabilities. This generated a consolidated net result after tax
of EUR 9.9 million for the first half - EUR 46.0 million higher than the
previous year's figure (EUR -36.1 million).

In the operating business, earnings from new business, stable revenues from
After-Sales Services and consistent cost savings also had a positive effect
on the result. Despite one-off other operating expenses totalling EUR 2.7
million in connection with the release from contingent liabilities,
earnings before interest and taxes (EBIT) came in at EUR -2.6 million - a
significant increase of EUR 8.1 million compared to the previous year (EUR
-10.7 million).

Investors invested some EUR 85.1 million into HCI funds in the first half
of 2010 (previous year: EUR 73.1 million). With invested equity capital of
EUR around 46 million in new business, the Ship area remained HCI's
mainstay. In addition to the original placement of equity capital in new
closed-end funds, the HCI Group achieved considerable success in developing
and implementing concepts to secure existing ship funds in the first half
of 2010. During this period, HCI fund investors reinvested a total of
approximately EUR 33.4 million, thus securing their funds' future market
opportunities. The HCI Group anticipates a further improvement in new
business in the second half of the year and expects to report a positive
consolidated net result after tax for the full year 2010.

About HCI:
Established in 1985, the HCI Group creates closed-end funds and investments
with a capital guarantee in the areas of Transport and Logistics, Energy
and Commodities, Real Estate and Secondary Life Insurance. Since it was
established, the HCI Group has realised a total investment volume of some
EUR 15 billion with equity capital of approximately EUR 6 billion invested
in 514 issues (as of 30.06.2010). HCI currently has around 122,900 clients,
making it one of Germany's leading issuing houses. HCI Capital AG has been
listed on the stock exchange since October 2005.

Contact:
HCI Capital AG
Dr. Olaf Streuer
Head of Corporate Communication / Business Development
Tel: +49 40 88 88 1 1100
olaf.streuer@hci-capital.de

18.08.2010 Ad hoc announcement, Financial News and Press Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: HCI Capital AG
Burchardstraße 8
20095 Hamburg
Deutschland
Phone: +49 (0)40 88881-0
Fax: +49 (0)40 88881-199
E-mail: ir@hci-capital.de
Internet: www.hci-capital.de
ISIN: DE000A0D9Y97
WKN: A0D9Y9
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hamburg;
Freiverkehr in München, Düsseldorf, Berlin, Stuttgart,
Hannover

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