DGAP-News

Gigaset breaks even - Seite 2

discounting, which resulted in higher pension provisions.

The overall market for cordless phones in Europe recovered slightly in the
1st quarter of 2015, as measured by revenue and units in the markets
observed by Gigaset. As expected by the company, the market trend in
Western Europe points to further consolidation at a stable level of prices
overall. The market declined by 0.5 percent in terms of units in Q1/2015
compared with the previous year, but remained stable in terms of value.
Gigaset slightly lost market share in Europa over the previous year, but
still retains its leading position. In its key European core markets,
Gigaset maintained its remarkably high market share in terms of revenue
(31.8 percent) and units (27.4 percent) in the first quarter of 2015.
Gigaset was able to maintain its clear premium position over the
competition and achieved an average sales price with its portfolio which
was 22 percent above that of its competitors.

CEO Charles Fränkl comments on the results for the quarter: "The new
business segments are making a growing contribution to revenue. Revenue at
the Business Customers Business Unit rose by 23 percent compared with the
first quarter of 2014. Revenue from the smart home product Gigaset elements
has increased almost five-fold and the Mobile segment is also increasingly
generating income. That shows the new strategy is having an impact."

CFO Kai Dorn adds: "The new fiscal year has got off to a stable start.
Although we withdrew from unprofitable markets last year and despite a
slight decline in the market, we grew our revenue. Our efforts to improve
efficiency are also having an impact, meaning we were able to post a slight
profit in the first quarter."

Overview of the figures for the first quarter of 2015:

- Consolidated revenue: EUR70.1 million (Q1/2014: EUR65.0 million)

- EBITDA: EUR8.8 million (Q1/2014: minus EUR7.7 million)

- Consolidated net income: EUR0.8 million (Q1/2014: minus EUR12.2)

- Free cash flow: minus EUR18.2 million (Q1/2014: minus EUR28.0 million)

Outlook

Gigaset AG sticks to the outlook it gave when the 2014 Annual Report was
published on April 1, 2015.
The company will continue its strategic realignment uncompromisingly. It
expects the decline in the market for its core business to slow slightly
this year. However, cordless phone business is nevertheless still declining
and so Gigaset is investing further in establishing new, promising business