Gigaset AG

Earnings Release • Jul 16, 2010

News Details

Corporate | 16 July 2010 07:44

ARQUES Industries AG: Fiscal year 2009 and Q1 2010 – Large-scale restructuring yields success

ARQUES Industries AG / Miscellaneous

16.07.2010 07:44

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• Most difficult year in the company's history
• 2009 earnings depressed by non-recurring effects
• Positive earnings trend in the first quarter of 2010

Munich, July 16, 2010. The past fiscal year, 2009, proved to be the most
difficult year in the company's history, posing a number of major
challenges for ARQUES Industries AG. Faced with a very weak economic
environment, the entire private equity industry was badly affected by the
crisis on account of the restrictive credit policies applied by banks,
falling company valuations and far less accessible exit opportunities.

Development of revenues and earnings in 2009

This negative market environment is also reflected in the revenues and
earnings of ARQUES Industries AG. In fiscal year 2009, the company
generated revenues of EUR 3.5 billion (2008: EUR 5.5 billion). The decline
in revenues can be attributed primarily to the large-scale streamlining of
the portfolio carried out in connection with the systematic reduction of
risk that the private equity firm concentrated on last year. This involved
reducing the portfolio of subsidiaries to nine corporate groups, and
companies with annualized revenues of more than EUR 4.8 billion were sold.
This portfolio optimization - coupled with a clean-up of the remaining
subsidiaries' balance sheets - made it necessary to recognize depreciation
charges and impairment losses that are inevitably reflected in the
company's results. At EUR 17.7 million (2008: EUR 111.5 million), the
earnings before interest, taxes, depreciation and amortization (EBITDA)
were positive, although earnings before interest and taxes (EBIT) were
negative and, at minus EUR 139.8 million, lower than last year (2008: minus
EUR 115.5 million), as expected. At EUR 153.0 million, the consolidated net
loss was slightly larger than the net loss of EUR 145.7 million recorded a
year ago.

Turnaround at Gigaset

The biggest subsidiary of ARQUES Industries AG, Gigaset Communications
GmbH, has performed well. The market leader for cordless phones, in which
ARQUES only acquired an interest of more than 80% in the second half of
2008, succeeded in returning to the black in operating results earlier than
planned, in spite of all the adverse factors. This success underscores the
constantly strong restructuring competence of ARQUES. The foundation has
been laid for sustainable profitable growth by rolling out innovative
products and streamlining the organizational structure. Earnings are
expected to climb sharply in 2010.

Successful development in the first quarter of 2010

Hans Gisbert Ulmke, Chairman of the ARQUES Executive Board, takes an
optimistic view of the current fiscal year following the company's
realignment: 'In 2009, we implemented painful restructuring measures, but
these were essential to enable us to successfully create value into the
future. Important steps included reducing our financial liabilities by
around EUR 120 million compared with 2008 and cutting the costs of the
holding company by more than half.'

The company generated an operating profit that beat expectations in the
first quarter of 2010. The EBITDA totals EUR 24.0 million after minus
EUR 13.7 million in the equivalent period last year. The revenues amount to
EUR 266.9 million following on from EUR 1.2 billion in the year-ago
quarter. The post-tax profit totals EUR 1.0 million after a loss of
EUR 38.5 million in the equivalent period last year.

Outlook

In the light of a reviving economy and tangible restructuring successes in
the subsidiaries, ARQUES can look ahead to the future with a sense of
cautious optimism and believes the goal of achieving an operating profit in
2010 is realistic. All the remaining seven subsidiaries are aiming to
report a net profit in 2010. The financial liabilities are projected to
decline further as planned, and promising exit opportunities are starting
to appear on the horizon again for one or two of the subsidiaries.

ARQUES Industries AG aims to focus more strongly on the growth of the
company in the year ahead, under the assumption, however, that its risks
are minimized. Interesting possibilities exist, and the private equity
company is looking to systematically exploit the opportunities that arise.

About ARQUES

ARQUES Industries AG, Munich, (http://www.arques.de), is an equity
investment company focusing on the restructuring of companies in
transitional situations. ARQUES develops these companies, mainly acquired
within the context of company spin-offs, to competitive enterprises with a
positive yield in order to sell these afterwards with added value.

The shares of ARQUES Industries AG are traded in the Prime Standard of the
Frankfurt Stock Exchange. Symbol: AQU, ISIN: DE0005156004.

Contact:
ARQUES Industries AG
Investor Relations
Hubert Wiedemann
Email: wiedemann@arques.de
Tel: +49 (0)89/ 25 55 00 - 330

16.07.2010 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: ARQUES Industries AG
Arnulf Office Park - Arnulfstraße 37-39
80636 München
Deutschland
Phone: +49 89/255500-0
Fax: +49 89/255500-200
E-mail: wiedemannn@arques.de
Internet: www.arques.de
ISIN: DE0005156004
WKN: 515600
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Hamburg, Stuttgart

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