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Earnings Release • Nov 28, 2008

News Details

Corporate | 28 November 2008 07:59

Aragon AG: Growth at Aragon continues, despite financial crisis

ARAGON AG / Quarter Results

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++ Growth at Aragon continues, despite financial crisis

++ Total revenues rise to EUR 87.6m (previous year: EUR 86.6m)

++ EBITDA of EUR 10.5m – 68% increase (previous year: EUR 6.23m)

++ Aragon expands Management Board

The financial services group Aragon achieved a successful performance in
the first nine months of 2008, despite the global financial crisis.

++ Revenues and earnings reflect steady growth trend

In the first three quarters of 2008, revenues rose to EUR 87.6m (same
period in the previous year: EUR 86.6m). Earnings before interest and tax
(EBIT) were up by 71% to EUR 9.3m compared with the corresponding quarter
in the previous year (EUR 5.4m). At EUR 10.5m, EBITDA climbed 68% (same
period in the previous year: EUR 6.2m).

Boosted by proceeds totalling EUR 7.25m from the sale of 15% of the shares
in biw Bank für Investments und Wertpapiere AG, gross earnings at Aragon AG
amounted to EUR 31.1m in the first nine months of 2008. This represents a
rise of 33% compared with the figure of EUR 23.4m achieved in the same
period of the previous year. The gross margin of 40.3% (or 30.9% excluding
the sales proceeds) is an improvement of 42% (or 9%) compared with the
corresponding period in the previous year.

++ Development of the individual segments

Revenues in the Retail Sales segment increased to EUR 20.8m in the third
quarter of 2008 (previous year: EUR 20.1m), despite the financial crisis.
However, at just under EUR 0.5m, EBIT in the segment was significantly down
on the previous year’s figure of EUR 3.0m. If the figure for the
comparative quarter in the previous year is adjusted for the special factor
arising from the acquisition of GAMAX AG (special income amounting to EUR
2.2m), the decrease is very moderate in view of the current market
environment.

In the Banking & Banking Services segment, the results of biw Bank für
Investments und Wertpapiere AG were no longer fully consolidated for the
first time in the third quarter of 2008 following the reduction in the
shareholding to less than 50%. Instead, they were reported in the balance
sheet at equity, which means that they cannot be compared with the figures
for the previous quarters.

The business division performed very well, achieving strong sales in Online
Brokerage as a result of the volatility in the stock markets in the third
quarter. However, the results were affected by setting up provisions in
connection with the possible utilisation of deposit protection (insolvency
of the German Lehman Brothers). Consequently, the contribution of the
Banking segment to EBIT of around kEUR 60 was not relevant to the financial
position of the Aragon Group for the first time.

The Institutional Sales segment closed well above the previous year’s
results. Revenues rose by 34% to EUR 1.39m. With an EBITDA margin of 46%,
this segment achieved EBITDA amounting to EUR 0.62m.

++ Outlook: financial crisis strengthens market position of Aragon AG

CFO Ralph Konrad commented: 'In the third quarter of 2008, Aragon AG
achieved positive Group EBITDA once again. Given the current negative
market environment, this is very positive. Although we are now unlikely to
see an effect that is relevant to our year-end business from the
introduction of the new capital gains tax, we expect a stronger performance
in the fourth quarter compared with the third quarter, so that our EBITDA
should be expanded further as of year-end.'

Dr. Sebastian Grabmaier, CEO of Aragon AG, explained: 'The financial crisis
has dramatically accelerated the trend towards consolidation in the German
financial sales market. Ever more extensive regulation on the one hand and
extremely difficult market conditions on the other generate great pressure
in terms of the continued existence of financial sales companies,
especially in the small and medium-sized segment. We are therefore
confident that Aragon AG will emerge from the crisis as one of the winners
on the strength of additional acquisitions.'

++ Expanded Management Board

In order to meet the tasks ahead, Aragon expanded its Management Board with
effect from 1 December 2008. Wulf Schütz will be responsible for Business
Development and Investor Relations.

Dr. Sebastian Grabmaier stated: 'We see this as the ideal timing for
expanding the Management Board. While the majority of market players are
exclusively focusing on solving the problems created by the financial
crisis, we intend to concentrate on the continued development of our Group.
Although we took a little break in terms of growth in the third quarter of
this year, our market position is the strongest it has ever been.'

The Q3 report is now available for download from the company’s website at
www.aragon-ag.de.

++ About Aragon AG

Aragon is a broadly diversified financial services company, with the
divisions: Retail Sales, Institutional Sales and Banking & Banking
Services. Aragon is active on 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.de.

Contact:
Aragon Aktiengesellschaft

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

28.11.2008 Financial News transmitted by DGAP