JDC Group AG

Earnings Release • May 31, 2010

News Details

Corporate | 31 May 2010 07:00

ARAGON AG: Aragon AG begins 2010 with strong growth in sales and earnings

ARAGON AG / Miscellaneous

31.05.2010 07:00

Dissemination of a Corporate News, transmitted by
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The issuer / publisher is solely responsible for the content of this announcement.

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• Aragon begins 2010 with strong growth in sales and earnings

• 65 per cent rise in sales revenues to EUR 23.7m, positive EBIT

• Product sales up 29 per cent to EUR 349m

• Board anticipates record sales in 2010

In what is still a difficult climate for the financial services industry,
Aragon AG, one of Germany's leading financial sales companies, followed up
the positive trend of the previous quarter by making a successful start to
2010 with a historically strong first quarter.

Sales revenues in the first quarter of 2010 climbed 65 per cent on the same
quarter last year to reach EUR 23.7m (Q1 2009: EUR 14.3m). Earnings before
interest, tax, depreciation and amortization (EBITDA) rose to EUR 0.5m
against a fall of EUR 0.4m in Q1 2009. Earnings before interest and tax
(EBIT) also improved, to EUR 0.1m (Q1 2009: EUR -0.8m).

'We are delighted that our consistent work during the financial crisis has
now paid off: the first quarter of 2010 is the strongest first quarter in
terms of sales in the history of the company. This is all the more pleasing
given that we have managed it in what is still a difficult market
environment which has seen many other market players suffering sometimes
sharp drops in sales. Profitability will follow suit in the course of the
year', said Dr. Sebastian Grabmaier, CEO of Aragon AG.

Assets under administration by Aragon AG rose 81 per cent to some EUR 3.8bn
compared with the end of March 2009 (March 2009: EUR 2.1bn). Aragon AG also
continues to be in positive territory as regards the relevant balance sheet
figures: on 31 March 2010 equity stood at EUR 53.1m and the equity ratio at
55 per cent. Liquid assets climbed 6 per cent to EUR 10.9m (31.12.2009: EUR
9.4m).

The continued business units of Aragon AG performed as follows:

With sales of EUR 16.8m in the first quarter of 2010 (previous year: EUR
11.9m), the Broker Pools unit was again the strongest business unit of
Aragon AG in terms of sales. Earnings before interest, tax, depreciation
and amortization (EBITDA) came to EUR 0.3m in this period compared with EUR
-0.5m in Q1 2009. In the first quarter of 2010 earnings before interest and
tax (EBIT) stood at EUR -0.01m, above the EBIT for Q1 2009 (Q1 2009: EUR
-0.9m). Despite positive figures from Jung, DMS & Cie. AG, the unit
continues to suffer from the difficult environment for closed-end funds and
the resulting drag on earnings for BIT Treuhand AG.

With a 215 per cent rise in sales revenues to EUR 6.8m (Q1 2009: EUR 2.2m),
the Financial Consulting business unit is again in 2010 the segment
recording the greatest growth in Aragon AG. The main drivers were the
strong operating performance of Compexx AG, which enjoyed one of the best
quarters in its history, the first consolidation of Scopia AG (formerly MLP
Finanzdienstleistungen AG, Vienna), which managed to achieve a positive net
result in the first quarter following several years of losses, and the
first consolidation of inpunkto GmbH, Mönchengladbach, in the previous
quarter. Earnings before interest, tax, depreciation and amortization
(EBITDA) came to EUR 0.6m in Q1 2010 (Q1 2009: EUR 0.3m). Earnings before
interest and tax (EBIT) stood at EUR 0.5m in Q1 2010 (Q1 2009: EUR 0.3m).
Given the increases that have historically always been expected in this
business unit by the end of the year, the unit is expected to deliver a
significant improvement in results in the second half.

The Institutional Sales business unit saw a decline in sales of EUR 0.1m in
the first quarter of 2010 (previous year: EUR 0.3m). Earnings before
interest, tax, depreciation and amortization (EBITDA) came to EUR -0.1m in
Q1 2010 (Q1 2009: EUR 0.1m). Earnings before interest and tax (EBIT) stood
at EUR -0.1m in Q1 2010 (Q1 2009: EUR 0.1m). The Institutional Sales unit
continues to suffer from the reluctance of institutional investors to buy
equities and certificates.

The Holding business unit, which since the third quarter of 2008 has
likewise included the stake in biw Bank für Investments und Wertpapiere AG,
consolidated only pro forma at equity, saw earnings before interest, tax
and amortization (EBITDA) remain steady at EUR -0.3m in Q1 2010 compared
with Q1 2009 (Q1 2009: EUR -0.3m). biw also maintained its positive trend
into the first quarter of 2010: in comparison with the end of the fourth
quarter of 2009, biw was able to increase the number of managed accounts by
7 per cent to some 116,000 (31.12.2009: 109,000). The number of security
orders it handled rose about 28 per cent to approx. 1.2 million (Q1 2009:
0.9 million).

Further growth for 2010 expected

While the general conditions for the financial services industry remain
difficult, particularly for the brokering of investment products, Aragon is
focused on achieving the biggest annual sales in the history of the company
in 2010.

'Our growth strategy really took off in the first quarter. Since the fourth
quarter of 2009 we have been able to buck the general market trend by
posting dynamic growth again. The excellent results in what is, for
seasonal reasons, a typically weak first quarter allow us to look ahead
optimistically to the second half of 2010. Aragon AG will step up the pace
of growth still further, so even now we anticipate that annual sales will
exceed the EUR 120m mark', explained Wulf Schütz, a director of Aragon AG.

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

The results for the second quarter of 2010 are scheduled for publication on
31 August 2010.

About Aragon AG

Aragon AG is a broadly diversified financial services group with four
business units: Broker Pools, Financial Consulting, Institutional Sales and
Holding. Aragon AG is actively engaged in the market with several
independent subsidiaries. The aim is to integrate a variety of sales models
under one roof without any of the sales teams losing their own identity.
The effect is a broad diversification across various asset classes and
sales types, with a consequently high stability in corporate earnings.
Further information about the company and its subsidiaries can be found at
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

31.05.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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