Conzzeta Group: Interim report at April 30, 2009

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Conzzeta faces market slump

Zurich, June 10, 2009. - In the first four months of the current
year, the worldwide economic crisis had a massive impact on the
performance of the Conzzeta Group. Compared with the same period of
2008, consolidated net revenues fell by -32.4%, reaching CHF 330.9
(489.1) million. The operating result (EBIT) shrank to CHF 4.4 (28.7)
million. At the end of April 2009, Group profit amounted to CHF 11.8
(22.9) million. The continuing slump in incoming orders in machinery
and systems engineering, to just one third of the previous year's
level, will result in a further decrease in revenues and earnings.

The global economic slump from autumn 2008 onwards already led to a
drastic decline in orders in the last four months of the year. As a
result, the Conzzeta Group experienced a massive drop in revenues in
the first four months of the current business year. Compared with the
same period of 2008, consolidated net revenues fell by -32.4%,
reaching CHF 330.9 (489.1) million. In local currencies, this
represents a decline of -30.5%. The three business units operating in
the machinery and systems engineering sector as well as the Foam
Materials business were particularly hard hit by the recession. The
Real Estate business unit continued on a stable course. The Sporting
Goods business unit generated a further year-on-year increase in
sales. At the end of April 2009, the operating result (EBIT) for the
Group amounted to CHF 4.4 (28.7) million. Group profit was CHF 11.8
(22.9) million. This includes an extraordinary profit of CHF 8.8
million from the sale of real estate not essential to business
operations.
To counteract the serious slump in orders, the business units badly
affected by the crisis took rapid and decisive action to temporarily
adjust capacity and reduce costs. The capacity reductions were
achieved mainly through cutting overtime, unused vacation and
temporary work. Short-time working was also introduced at most
locations. In the reporting period, the affected business units were
able to reduce the number of working hours by about 12%, which
contributed to a lowering of personnel costs.

Business units

The Sheet Metal Processing Systems (Bystronic) business unit reported
net sales of CHF 127.8 (240.2) million in the first four months of
2009. Compared with the same period of 2008, this represents a
decrease of -46.8% in Swiss franc revenues, and -43.1% in local
currencies. All market regions and product groups were affected by
the steep decline in demand, though the intensity and
characteristics of the slump varied. There were massive falls in the
markets of eastern Europe and Russia, where many customers have faced
problems with financing. The decrease was least marked in China,
Germany and France. As a result of the economic crisis, customers are
tending to buy lower-priced systems. Bystronic responded rapidly with
the development of a cost-effective waterjet-cutting system which
will go on sale from summer 2009. Intensive work on development
projects is continuing, despite the cost-reduction programs.

The Glass Processing Systems (Bystronic glass) business unit
generated sales of CHF 47.0 (85.2) million (-44.8%) in the first four
months of 2009. In local currencies, the decline was -42.5% compared
with the same period of last year. Up to the end of 2008, capacity at
the Bystronic glass production companies was still fully utilized.
After that, the lack of incoming orders led to a slump in sales in
all market regions and product groups. The biggest falls were seen in
the automotive glass segment and in the market regions of Europe and
the Middle East. Major glass manufacturers and processors in
particular are showing a reluctance to commit investments. Hardly any
orders are being placed by customers in the US and Russian markets.
The Asian market has held up best.

The Automation Systems (ixmation) business unit reported sales of CHF
20.7 (18.2) million (+14.0%) at the end of April 2009. On a
currency-adjusted basis, the growth was +7.3% compared with the
previous year. The increase is due to the usual fluctuations in the
project business, specifically to the delivery of several projects,
notably in the USA. In the meantime, the global crisis has also
affected the Automation Systems business unit, leading to a massive
decline in new orders and customer inquiries. Particularly badly
affected are the plants in Switzerland and Malaysia. In the USA and
China, there is still a satisfactory level of customer inquiries,
despite the slump in incoming orders. However, there is still some
hesitation in confirming orders.

The Foam Materials (FoamPartner) business unit generated sales of CHF
36.6 (54.3) million (-32.7%). Adjusted for the effect of an
acquisition (+3.9%) and currency translation influences (-0.9%), the
decline was -35.7%. As a result of the economic crisis, some
customers have downscaled their orders and massively reduced
inventories. All three product groups (Industry, Comfort and
Automotive) felt the impact of the slump. The Comfort segment was
least affected by the fall in demand. The Industry and Automotive
segments experienced steeply falling sales. A stabilization of the
demand situation is expected in the second four months of the year.

The Sporting Goods (Mammut Sports Group) business unit was able to
increase its revenues by +12.3% to CHF 76.4 (68.0) million. Apart
from a strong boost from reorders of articles from the winter range,
healthy advanced orders for the summer collection contributed to this
renewed improvement in revenues. The biggest increases were recorded
by the Mammut brand in the clothing and technical products segments.
The core markets in Switzerland and Germany continued to develop very
well, and markets such as Italy and Japan also showed strong growth.
Exports to some eastern European and Asian countries were hindered by
the unfavorable exchange rate situation. Up to now, the demand in the
outdoor market has proved robust. First signs of a possible slowdown
are so far apparent only in the USA, where the consumer mood is very
negative.

The Graphic Coatings business unit (Schmid Rhyner) reported sales of
CHF 14.8 (15.8) million (-6.6%) at the end of April 2009. Due to the
impact of the global economic slowdown, demand in the printing
industry fell. There was a decline in the volume of UV products and
dispersion varnishes ordered by customers in the packaging and
commercial printing segments in the first four months of 2009.
Developments across the geographical markets were uneven.

Trends and outlook
The Conzzeta Group continues to face difficult conditions in its main
markets. It is still too early to say whether the bottom of the
downturn has been reached. The order intake in machinery and systems
engineering, which is down to a third of last year's level, is having
a strong impact on ongoing performance and will result in a
consolidated loss for the 2009 business year. If the negative trend
continues, further capacity reductions will be necessary. Conzzeta's
goal is to emerge stronger from this difficult economic period. The
priority is to preserve competitiveness and innovation potential.

For further information, please contact:
Carlo Menotti, Head of Corporate Services
Phone +41 44 468 24 84
media@conzzeta.ch

The Conzzeta Group is an internationally active industrial holding
company, with over 3,700 employees worldwide. Its core activities are
in the areas of machinery and systems engineering, foam materials,
sporting goods, graphic coatings and real estate. Conzzeta's shares
are listed on the SIX Swiss Exchange (SWX:CZH).

The News Release including consolidated income statement can be
downloaded from the following link:

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Conzzeta AG
Giesshübelstrasse 45 Zürich Switzerland

WKN: 265798;
ISIN: CH0002657986; Index: SPI, SSCI, SPIEX;
Listed: Main Market in SIX Swiss Exchange;
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