DGAP-News

Gigaset AG: Financial Results for Q3 2014 - Gigaset significantly improves EBITDA and consolidated net income - the Company is free of financial liabilities - Seite 2

able to compensate for declining revenue in our core business as a result
of the contracting market in it.

In a weak market, Gigaset was able to hold its share in its core business
of digital cordless phones year on year in terms of units sold and so was
again a winner from the continuing phase of market consolidation. Gigaset's
share of market revenue in Europe was 34% in the third quarter of the year.
As a result, Gigaset was able to maintain its market position in Europe. As
a premium brand, Gigaset was also able to achieve prices that were 29%
above the market average. However, the market as a whole remains under
pressure. In the third quarter, it declined year on year by around 7% in
terms of units sold and by 6% in terms of revenue.

Equity ratio increased - The Company is free of financial debt
The equity ratio rose to 21.3 percent thanks to the successful capital
measures in July. The figure in the third quarter of the previous year was
3.6 percent. In addition, the company was able to repay all its financial
liabilities totaling EUR25.0 million. That also included the syndicated
loan that became due. Gigaset AG obtained net proceeds of EUR33.9 million
from the capital measures in 2014. The Gigaset Group is now completely free
of financial debt and so has a raft of new options to further ensure that
its growth strategy can be financed. In addition, the company will save
around EUR1.5 million a year in interest payments. The company has thus
succeeded in extensively restructuring its funding base in the space of
just twelve months.

Gigaset CEO Charles Fränkl commented on the quarterly figures: "Gigaset is
maintaining its leading position in a tough market. We've managed to
improve our earnings and free cash flow significantly by means of strict
cost management.

The strategic alignment we initiated in 2012 and the related rollout of new
products continues to bear fruit. The company is totally free of financial
liabilities thanks to proceeds from capital measures. That opens up new
leeway for financing our growth strategy."

Gigaset AG's figures in the third quarter of 2014 (continuing operations):
- Consolidated revenue: EUR72.0 million (Q3/2013: EUR76.6 million)

- EBITDA: EUR4.4 million (Q3/2013: EUR3.8 million)

- EBITDA margin: 6.1 percent (Q3/2013: 5.0 percent)

- Consolidated net loss: minus EUR0.2 million (Q3/2013: minus EUR3.8
million)

- Free cash flow: EUR7.6 million (Q3/2013: minus EUR9.9 million)

Reorganised management responsibilities