Gigaset AG

Earnings Release • Nov 20, 2008

News Details

Corporate | 20 November 2008 07:30

ARQUES enhances cash flow and reduces debt in the third quarter

ARQUES Industries AG / Quarter Results

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ARQUES enhances cash flow and reduces debt in the third quarter

• Nine-month revenues quadrupled to EUR3.93 billion
• EBITDA at EUR40.6 million
• Free cash flow increased by EUR44.0 million to EUR57.2 million
• Net financial liabilities reduced by EUR87.7 million
• Forecast for 2008 adjusted to reflect much weaker market environment

Starnberg, November 20, 2008 – Not even ARQUES Industries AG (ISIN
DE0005156004) was able to elude the considerably worsening economic
conditions in the third quarter. Consolidated revenues more than quadrupled
year-on-year, from EUR930.6 million to EUR3,925.8 million. In particular,
falling profit contributions from the effects of initial consolidation and
lower proceeds from company disposals led to a decline in EBITDA to EUR40.6
million. The contribution to profits from the effects of initial
consolidation decreased from EUR135.6 million in the third quarter of 2007
to EUR13.1 million. In addition, ARQUES was forced to recognize impairments
of EUR51.0 million on its holding in automotive supplier Eurostyle in the
third quarter of 2008. Significant pre-tax and post-tax losses have been
recorded for the first nine months, due above all to non-recurring expenses
not affecting liquidity arising from portfolio adjustments coupled with
depreciation and amortization charges. ARQUES has been concentrating on
building up liquidity and reducing debt during 2008. Imminent investment
and disinvestment decisions will be made with this in mind. Consequently,
the free cash flow, which has risen EUR44.0 million to EUR57.2 million, has
been used primarily to reduce current financial liabilities, which have
been reduced from EUR85.8 million to EUR171.8 million over the first nine
months of the year.

'We’ve again succeeded in achieving significant improvements in terms of
both cash flow and net debt in the third quarter. At the same time,
however, the weak economic environment made it impossible for us to meet
our earnings targets in particular. Consequently, ARQUES is having to
revise its revenue and profit targets for 2008 downward,' comments Dr.
Michael Schumann, the Chairman of the Executive Board of ARQUES Industries
AG.

ARQUES is revising its annual targets for 2008 as a whole to reflect
persistently difficult economic conditions

ARQUES now expects revenues to total at least EUR5.0 billion and EBITDA at
least EUR100.0 million. The forecast EBITDA of at least EUR100.0 million is
based on the assumption that, with the exception of the acquisition of
Gigaset Communications GmbH, no further significant company acquisitions or
disposals will take place in the fourth quarter of 2008, generating no
positive or negative profit contributions. The reduction in the EBITDA
forecast can only be attributed to a small extent to falling earnings from
portfolio companies expected in the fourth quarter of 2008.

Positive free cash flow development expected again in the fourth quarter

During the final quarter of the year, ARQUES will concentrate even more on
enhancing its cash flow and balance sheet structure. Thus management
expects free cash flow to again develop positively in the fourth quarter.

The interim report on the first three quarters of 2008 can be found online
at www.arques.de.

About ARQUES
ARQUES Industries AG, Starnberg, (www.arques.de) is a business partner of
conglomerates regarding company spin-offs and a turnaround specialist who
focuses on the acquisition and the active restructuring of companies in
transitional situations, in order to develop these, with its own team and
own resources, to competitive enterprises with a positive yield. ARQUES
revitalizes its subsidiaries’ potential for creating value for the benefit
of all its stakeholders, taking on the relevant social responsibility. The
shares of ARQUES Industries AG are traded on the regulated market (Prime
Standard) of the Frankfurt Stock Exchange under the symbol 'AQU' (ISIN:
DE0005156004) and are listed in the SDAX.

Contact
ARQUES Industries AG
Investor Relations & Corporate Communications
Anke Lüdemann, CEFA/CIIA
E-mail: luedemann@arques.de

Public Relations
Christian Schneider
E-mail: schneider@arques.de
Tel.: +49 (0) 8151/ 651 0
20.11.2008 Financial News transmitted by DGAP

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Language: English
Issuer: ARQUES Industries AG
Münchner Str. 15a
82319 Starnberg
Deutschland
Phone: +49 (0)8151 651-0
Fax: +49 (0)8151 651- 500
E-mail: luedemann@arques.de
Internet: www.arques.de
ISIN: DE0005156004
WKN: 515600
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hamburg, Düsseldorf, München, Stuttgart

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