ARQUES Industries AG / Half Year Results 20.08.2009 Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- ARQUES has reduced its financial debt by around 30% since the end of 2008 * Second-quarter EBITDA of EUR -2.3 million represents a significant improvement over the first quarter * Earnings were weighed down by impairments from portfolio streamlining measures * The balance sheet structure was substantially improved in Q3 after the sales of Actebis and tiscon * Uncertain outlook, early signs of economic recovery Starnberg, August 20, 2009. Although ARQUES Industries AG (ISIN DE0005156004) was still heavily affected by the repercussions of the global recession in the second quarter of 2009, the company managed to improve its EBITDA substantially from the first quarter (EUR -13.7 million) to EUR -2.3 million. The EBITDA for the first six months was EUR -16.0 million (H1 2008: EUR 45.2 million). As announced, ARQUES was clearly focused on reducing its debts and streamlining its portfolio in the first half of 2009. In particular, the financial liabilities were reduced by around 30% from year-end 2008 to EUR 150.3 million. All together, ARQUES has divested nine subsidiaries since the beginning of the year, which gave rise to significant impairments and therefore reduced the earnings indicators below the level of EBITDA. The sale of the Actebis Group has not yet been completed; that is expected to happen in late September or early October. The disposal of the investments in Actebis and tiscon at the start of the third quarter will lead to a further substantial improvement in the balance structure and further limit the Group's risk exposure, in accordance with its goal. The first signs of an economic recovery, which are increasingly having a positive impact on the orders of the ARQUES subsidiaries, will likely show up in the Group's operating earnings only in fiscal year 2010. 'In the first half of 2009, the ARQUES Group made great progress towards the goal of operational and financial consolidation. The 30% reduction in financial debts and the comprehensive streamlining of the Group's portfolio of subsidiaries had the effect of significantly limiting the Group's risks. We will continue on this path in the second half. In view of the growing signs of gradual economic recovery, we are hoping for significant positive developments starting in fiscal year 2010,' said Hans-Gisbert Ulmke, Chairman of the Executive Board of ARQUES Industries AG. Optimization of the Group's portfolio of subsidiaries gives rise to significant non-recurring effects At EUR 9.7 million, the bargain purchase revenues (from negative purchase prices) in the first six months of 2009 were about on the level of the prior-year period. The sale of investments in the Actebis Group and in tiscon AG in the third quarter gave rise to additional impairments, which added up to about EUR 52.2 million in the first half of 2009. At June 30, 2009, therefore, ARQUES posted a net loss after taxes of EUR -115.4 million (H1 2008: EUR -36.3 million). Balance sheet structure improved after sale of Actebis The sale of the Actebis Group will lead to a significant further improvement in the balance sheet structure. Furthermore, EUR 37.8 million in purchase price guarantees will be assumed by the buyer. Due to various factors such as the generally tough economic environment, the restructuring expenses for Gigaset and the increased inventories of the subsidiaries, the cash flow from operating activities was negative in the first half of 2009, at EUR - 42.5 million (H1 2008: positive cash flow of EUR 97.8 million). Accordingly, the free cash flow of EUR -66.0 million was likewise well below the corresponding year-ago figure of EUR 79.8 million. Break-even point aimed for in 2010 The year 2009 is a year of consolidation for ARQUES Industries AG. In the first half of the year, we focused our activities on stabilizing cash flows and reducing risks in our portfolio of subsidiaries. Despite great restructuring progress in the individual companies, we could not achieve our earnings targets due to the sharp fall-off in demand for the respective products, which was caused by the general state of the economy. Because banks, credit insurance companies and factoring companies continued to adopt a restrictive stance, ARQUES was compelled to dispose of certain subsidiaries for less than their book values. Also in the area of acquisitions, ARQUES is taking a much more conservative and risk-averse approach than in the preceding years. Nonetheless, the Group is studying interesting opportunities at the present time. While the risk profile of ARQUES Industries has improved appreciably, a reliable forecast of developments in the second half of 2009 is not possible at this time. Early signs of an economic recovery, which are increasingly having a positive effect on the orders of the subsidiaries, will likely not show up in the Group's operating earnings until starting in 2010. If the economic recovery trend were to continue (especially in the automotive industry), the Group's stated goal is to reach the break-even point in the coming fiscal year. The complete quarterly report, as well additional information about ARQUES Industries AG, can be found at the company's website www.arques.de About ARQUES ARQUES Industries AG, Starnberg (www.arques.de), is a partner for major corporations in corporate spin-offs and a turnaround specialist concentrating on the acquisition and active restructuring of companies in crisis situations in order to turn them into competitive and profitable companies with a dedicated team and their own efforts. ARQUES revitalizes its subsidiaries' potential for adding value for the benefit of all of their stakeholders under consideration of the associated social responsibility. The shares of ARQUES Industries AG are traded on the Frankfurt Stock Exchange's Regulated Market (Prime Standard) under the symbol 'AQU' (ISIN: DE0005156004) and have been listed in the SDAX. ARQUES Industries AG Corporate Communication Christian Schneider Email: schneider@arques.de Tel.: +49 (0) 8151/ 651 0 DGAP 20.08.2009 --------------------------------------------------------------------------- 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: schneider@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 End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-News: ARQUES has reduced its financial debt by around 30% since the end of 2008
| Source: EQS Group AG