DGAP-News

Figures for the 3rd quarter of 2016: Group reorganization taking effect - significant improvement in key figures - Seite 2

gross profit only differs by 2.8%, because Gigaset considerably forewent
revenues with negative gross profit. This overall divergence is mainly
attributable to the decline in the market for cordless phones, which
dropped again in the third quarter by 12.3% and in which Gigaset still
holds a very good share of 33% in the EU 6. The group's total assets at
September 30, 2016, were around EUR213.0 million, a decline of
approximately 3.7% over December 31, 2015.

Free cash flow improves by EUR11.4 million
In the past quarter, the Gigaset Group posted a cash flow from operating
activities of minus EUR11.4 million (previous year: minus EUR21.3 million).
There are seasonal reasons for the negative free cash flow in the third
quarter. Despite a 7.8% decrease in revenue, the free cash flow improved
year on year. This is mainly the result of the improved earnings situation,
a lower increase in inventories for seasonal reasons, and a lower reduction
in trade payables.

The cash flow from investing activities was minus EUR7.8 million, below the
previous year's figure of minus EUR9.3 million. The lion's share of
investments in the current and past fiscal year has been on non-current
assets.

The free cash flow is thus minus EUR19.3 million compared to minus EUR30.7
million in the same period of the previous year.

Performance by Business Units

Revenue in EUR        Q3 2016           Q3 2015           Change
million
Consumer Products                157.9             168.4             -6.2 %
Business Customers                30.3              32.6             -7.1 %
Home Networks                      1.2               2.7            -55.6 %
Mobile Products                    2.9               4.7            -38.3 %
Total for Gigaset                192.2             208.4             -7.8 %

With a market share of 33% in terms of sales, Gigaset again underscored its
premium position in the EU 6 in the third quarter of 2016, even though this
market contracted overall by 12.3%. In France and the Netherlands the
development runs counter to the overall trend and Gigaset could achieve a
good market development here. The current market share is 29% in France and
40% in the Netherlands.

Business Customers had to deal with revenue declines at the largest
customer. Nevertheless the trend in the further Business Customers Business
is pleasing: It rose by 3% in the third quarter compared to same period of
the previous year. This rise is attributable to a positive performance in
the Netherlands and Germany. The return on sales also improved due to
optimization of the product mix.