ALSO Grupi 9 kuu tulemused 20.09.2009:

Profit up encouragingly in third quarter of 2009

In the first nine months of 2009, ALSO made a net profit of CHF 15 million (compared with a loss of CHF -0.3 million in 2008). Continued operations (excluding Sweden and Poland) increased net income by 25% to CHF 14.5 million (2008: CHF 11.6 million). Consolidated net sales stood at CHF 2964 million (2008: CHF 3451 million), and were down 14% (-10% in local currencies). Total assets on reference date amounted to CHF 761 million (CHF 333 million, or 30%, less than in 2008), while the equity ratio stood at 26% (previous year 19%). In view of this good result in the third quarter, and excluding unforeseeable circumstances, ALSO has revised its net profit forecast upwards from CHF 15 million to slightly in excess of CHF 20 million. ALSO is currently evaluating whether it should give up the GNT name and rebrand the respective operating companies under the name of ALSO. In such a case the GNT brand would be written off and the P&L statement 2009 charged with approximately CHF 15 million.

Third quarter 2009

In the third quarter too, demand in value terms for IT products in most European PC markets was noticeably down on the same period last year. Net sales of continued operations fell by 14% (in local currencies -11%) to CHF 1016 million (Q3/2008: CHF 1180 million). Despite this, continued operations increased their net income in this quarter by 134% to CHF 6.4 million (Q3/2008: CHF 2.7 million). Net profit likewise stood at CHF 6.4 million (Q3/2008: CHF -2.4 million loss).

January to September 2009

As a consequence of difficult market conditions, consolidated net sales of continued operations were down by 14% (-10% in local currencies) to CHF 2964 million (2008: CHF 3451 million). The measures introduced a year ago to boost profitability have clearly begun to bite. During this period, continued operations pushed up net income by 25% to CHF 14.5 million (2008: 11.6 million). Net profit stood at CHF 15 million (2008: CHF -0.3 million loss). On reference date, the company had the equivalent of 1443 full-time employees, or 15% less than a year ago.

Market report

In the Switzerland/Germany market segment, demand from commercial clients during the third quarter was substantially below last year's level, while demand from consumers was up. In the first nine months of the year, ALSO registered sales in this market segment of CHF 2043 million (2008: CHF 2197 million) and, thanks to improved margins and rigorous cost management, generated a noticeably higher pre-tax income than in the same period last year. In the market segment for Northern and Eastern Europe, the demand from both commercial and private customers was down significantly on the same period last year. Compared with last year, sales in this market segment during the first nine months of the year were down by 27% (excluding Sweden and Poland) to CHF 921 million (2008: CHF 1254 million), mainly due to the drastic collapse in the Baltic markets. The cost-cutting measures and price adjustments introduced in 2009 only partly compensated for the shortfall in margins, with the result that the pre-tax income for continued operations in this segment was down substantially on the same period last year.

ALSO considers giving up the GNT brand

Following its 100-percent takeover of GNT in spring 2008 ALSO focused primarily on the necessary operative improvements at GNT. ALSO is now considering integrating GNT totally into the Group, which would mean relinquishing the old GNT brand name and operating the Group companies in question under the ALSO identity. In this case, the GNT brand name would be written down and the 2009 financial statement charged with approximately CHF 15 million.

Outlook for 2009

After an encouraging third quarter and assuming that demand in the fourth quarter remains higher than in the third, ALSO now expects a net profit of slightly more than CHF 20 million for 2009 (previously CHF 15 million). This excludes unforeseen circumstances and a possible write-down of the GNT brand name.

Contact:

Maya von Krannichfeldt, Head of Corporate Communications, Tel. +41 41 266 18 02

Next scheduled publication

Annual media results conference, 15 February 2010