DGAP-News

Focus: Gigaset's Executive Board presents three-point plan - Seite 2

third-party devices and lights can also be controlled from the smartphone
using the solutions - even from on the road.

Adjusting production and administrative capacities
Gigaset's new Executive Board will simplify administration of the company,
remove out-of-date administrative structures, restructure research efforts
and adjust production capacities to reflect the market's needs. "Gigaset GO
and Gigaset HX prove that our products are state-of-the-art in terms of
technology. With focused research and development activities, we will
further increase our technology and quality leadership and thus create
growth," states CEO Klaus Weßing. In addition, the Executive Board of
Gigaset will speak with the employee representatives about concrete
implementation of the restructuring measures announced in December 2015.
"We are working together intensively to find a socially equitable solution.
Everyone is aware that these measures are necessary," adds CEO Klaus
Weßing.

Improving transparency
The aim in future is to present the company's prospects clearly and
transparently to shareholders, analysts, journalists and employees. "When I
took over at Gigaset, I declared I would ensure greater transparency at the
company. Transparency creates trust - trust that we need from our
investors, customers and employees. In future, we will clearly demonstrate
how our business model works, and where there are risks and, of course,
opportunities for us," says CFO Hans-Henning Doerr.

Following a good fourth quarter and anticipated consolidate revenue of
EUR305 million, Gigaset AG expects a positive operating result before
depreciation and amortization, special effects and expenses for
restructuring of EUR10 to EUR13 million for fiscal 2015. Due to the
restructuring provision that has to be set up and revaluation of the sale
of the trademark and domain rights that was carried in the report for Q3
2015, the company expects negative income for the year before taxes in the
low double-digit million range. At the closing date the company has
liquidity of around EUR41 million.

Goldin Brand Ltd. has not yet exercised its rights from the agreement to
acquire trademark and domain rights that was concluded in 2015 and has not
yet paid the purchase price. The trademark and domain rights are the
property of Gigaset Communications GmbH, a wholly owned subsidiary of
Gigaset AG, until payment of the purchase price. Since the rights have not
yet been transferred to the seller, Gigaset is not reporting any income
from the transaction for the fiscal year 2015. However, the Gigaset Group