DGAP-News

Gigaset returns to profitability - Seite 2

further course of business from the following factors:

- Revenue is traditionally stronger in the second half, mainly due to
Christmas trade.

- Further considerable cost savings will be achieved through the
restructuring program.

- A raft of new products will generate further sales. An increase in
revenue in the Business Customers segment is anticipated, in particular
from the now fully available Maxwell portfolio. Gigaset now has a full-
line solution offering for business customers in the shape of the
Maxwell series - from phones for executives, the secretary's office and
all employees.

- The company will press ahead with optimizing marketing of the security
solution Gigaset elements in the second half of the year. The company
expects a perceptible pickup as soon as sales and marketing are
improved effectively at the right place.

The new Executive Board of Klaus Weßing and Hans-Henning Doerr has declared
that one of its core tasks will be to formulate a sustainable corporate
strategy. "We are convinced that Gigaset will grow again," said Klaus
Weßing with optimism. "Since we will also cut costs in 2017 as a result of
staff reductions, we will gain further freedom to invest in our future."

Gigaset is already working intensively on the following fields to create a
successful setup for the future:

- Gigaset is achieving a good contribution margin in DECT business thanks
to the cost savings it has made and will win market share.

- Gigaset sees significant growth potential in the field of business
telephony and will further expand the Business Customers Business Unit,
which will contribute EUR60 million in revenue in fiscal 2016.

- Optimized marketing of the security solution Gigaset elements will
achieve further sales successes.

- Gigaset continues to work on new applications and solution offerings in
the Smart Home segment that will offer growth potential.

The successful turnaround also means that the extremely important cash
position for Gigaset AG has improved significantly. As expected, liquid
funds were low in the first half for seasonal reasons and, at EUR27.4
million, were at approximately the planned level. However, the company
serviced supplier loans early to an amount of EUR8 million and earned cash
discounts. "Without these measures, our cash position would be around 30%
above our original planned figures," says CFO Doerr.

Gigaset is creating freedom to maneuver for the future with its successful
restructuring measures. The company will now keep on working to operate
closer to the market thanks to a raft of measures and also to invest in