DGAP-News

Gigaset continues realignment - Seite 3

- Free cash flow: minus EUR5.8 million (Q2/2014: EUR1.1 million)

Relative to the first half of 2015:
- Consolidated revenue: EUR142.6 million (H1/2014: EUR147.0 million)

- EBITDA: EUR1.7 million (H1/2014: EUR2.3 million)

- EBITDA margin: 1.2 percent (H1/2014: 1.6 percent)

- Consolidated net income: minus EUR9.0 million (H1/2014: minus EUR10.9
million)

- Free cash flow: minus EUR24.0 million (H1/2014: minus EUR26.9 million)

Outlook
Despite the expected one-time factors from the reorganization of the brand
and domain names, Gigaset AG largely confirms its outlook for the current
fiscal year, with the following updates:

The company continues to expect that the decline in the cordless phone
business will continue this year. For this reason, Gigaset will make
further investments in promising business 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 the following in the current
fiscal year in the Consumer Products, Business Customers, and Home Networks
segments (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 the accelerated restructuring of the company. An EBITDA
margin in the low to middle single-digit range is anticipated.

- One-time factors will lead to a significant improvement in cash flows
in the current fiscal year. Expected operating free cash flow will,
however, remain unchanged. Due to considerable investments in the new
business segments, Gigaset AG expects negative free cash flow before
one-time factors in the high single-digit to low double-digit million
range.

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
Gigaset's sales strategy is still geared toward maintaining the Gigaset
brand's price premium in the market as well as its high market share in
Europe.
The CL750 (Sculpture) - a modern designer phone - was initially launched on
the French market in the second quarter. The French market is the most
advanced in this area. The product will be introduced in other countries in