DGAP-News

Gigaset breaks even - Seite 3

segments and product groups. These will make additional contributions to
revenue, but they will not yet be able to compensate fully for the
market-related decline in cordless phones this year. Gigaset therefore
expects in the current fiscal year in the Business Units Consumer Products,
Business Customers and Home Networks (excluding business with mobile
devices):

- A decline in revenue from continuing operations in a high single-digit
to low double-digit percentage range.

- A positive EBITDA once more in the lower double-digit million range.
However, the EBITDA is expected to be below that of the previous year
due to lower revenue, the investments required in new business segments
and restructuring of the company. An EBITDA margin in the low to middle
single-digit range is anticipated.

- A negative free cash flow in the high single-digit to low double-digit
million range due to considerable investments in the new business
segments.

Gigaset also expects positive contributions to earnings from business with
mobile devices, in particular from its future smartphone business. However,
a more precise figure can only be put on the latter after the company has
entered the market.

Overview of the Business Units

Consumer Products
An attractive premium large-button phone with a 1.8" color display was
launched in the shape of the E550 product family, a system with an
answering machine and additional handset. The new Go product series was
premiered and aims to address the new all-IP strategy of some fixed-network
operators. The SL400A GO, E360A GO, S850A GO and C430A GO enable both
familiar analog telephony and the new Internet telephony. Apart from
telephony, new functions (such as notifications on the smartphone, public
telephone directory, information services, free calls worldwide between
Gigaset Go customers) also use the Internet or the Gigaset cloud.

Business Customers
Revenue at the Business Customers Business Unit grew by around 23 percent
year on year. There were positive boosts to growth in particular in the
regions Germany, Italy and France. Regional expansion of sales activities
also continues to proceed apace. The S650H Pro, the new cordless phone for
business customers, was launched in the first quarter of 2015. It has a
1.8-inch color display and a Bluetooth function for connecting a headset.
The particularly long battery life and enhanced qualities of its surface