Conzzeta Group: Interim report at August 31, 2009

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Conzzeta's main markets still weak

Zurich, October 12, 2009. - The Conzzeta Group's interim financial
statements at the end of August 2009 reflect the worldwide cyclical
downturn. Compared with the same period of 2008, consolidated net
revenues fell by -38.3% to CHF 607.9 (985.3) million. The program of
measures to adjust capacity levels in line with market conditions,
first announced at the end of June 2009, has been largely
implemented. This will contribute to a further lowering of the cost
base from 2010 onwards. The operating result (EBIT) at the end of
August 2009 was CHF -27.9 (73.6) million. This includes nonrecurring
costs of around CHF 26 million for the capacity adjustment program.
Demand in the machinery and systems engineering businesses stabilized
at a low level, but the order intake so far shows no signs of
recovering. Conzzeta will continue on its chosen course, with the
goal of maintaining competitiveness.

The global economic crisis continued to have a negative impact on
Group business performance in the second third of the year. As a
result, consolidated net revenues fell by -38.3% to CHF 607.9 (985.3)
million. Adjusted for the effects of currency translation and
acquisitions, the decrease was -36.6%. The crisis continues to exert
a strong influence on the Sheet Metal Processing Systems, Glass
Processing Systems and Foam Materials businesses. The Sporting Goods
business unit has so far been able to maintain its growth curve.
The program of capacity adjustments, first announced on June 24,
2009, is on course and already largely implemented. The full effect
of the cost-saving measures will be felt in the 2010 business year,
reducing the Group's cost base by around CHF 60 million compared with
2008. The Group operating result (EBIT) for the period of CHF -27.9
(73.6) million contained nonrecurring costs of about CHF 26 million
arising from the program of capacity adjustments. The Group result
was CHF -14.9 (59.8) million. This included an extraordinary profit
of CHF 10.9 million from the sale of two properties not essential to
business operations. Apart from the cost-saving measures, Conzzeta
also focused on securing liquidity. Intensive management of net
working capital in the second third of the year made a major
contribution to the positive free cash flow of CHF 30.8 million. The
Conzzeta Group remains solidly financed, with an equity ratio of
76.5%.

Business units

In the second third of 2009, the Sheet Metal Processing Systems
business unit (Bystronic) was strongly affected by the low order
intake in the earlier part of the year. At the end of August 2009,
sales were CHF 226.3 (513.1) million (-55.9%). In local currencies,
the decrease was -52.9% compared with the same period of 2008.
Geographic markets such as Germany, France and Great Britain were
relatively robust. In eastern Europe and Russia, by contrast, hardly
any machines were sold. The first indications of a recovery were
apparent above all in China. Overall, the order intake improved
slightly in the second third of the year, but there are still no
signs of an actual upturn.

The Glass Processing Systems business unit (Bystronic glass) reported
sales of CHF 99.2 (173.3) million (-42.8%) at the end of August 2009.
In local currencies, the decrease was -40.3%. The worldwide slump in
demand for glass and glass-processing machinery persisted through the
second four months of the year. In addition, a considerable number of
the orders received could not be fulfilled because customers were
unable to obtain financing. The biggest drop in sales compared with
the previous year was recorded in the automotive glass segment.
Overall, there are still no signs of any easing of the market
situation in the glass processing sector.

The Automation Systems business unit (ixmation) reported sales of CHF
35.6 (35.1) million (+1.3%) at the end of August 2009. After
adjustments for currency effects (+4.2%), this is almost on a par
with the previous year's result. Sales were driven mainly by the
electronics, solar and medical technology segments. Despite the
demanding market environment and delays in awarding contracts, the
business unit succeeded in acquiring new customers and orders, mainly
for the locations in Malaysia and the USA. On June 24, 2009, the
Group announced it was to shut down the manufacture of systems for
production automation at the Pieterlen site in Switzerland. This unit
will continue operations under the name of Seckler AG as part of a
management buy-out. The ixmation business unit will concentrate in
future on its core business of systems for assembly-line automation.

The Foam Materials business unit (FoamPartner) generated sales of CHF
75.0 (104.7) million (-28.4%) in the first eight months of 2009.
After adjustment for currency influences and the effect of an
acquisition, the decrease compared with the previous year was -31.2%.
In view of the uncertain economic situation, customers in the comfort
and industry segments continue to maintain inventories at a low
level. Some application segments in the area of technical foams
gained momentum in the second third of the year, but overall there
are still no clear signs of a real recovery.

The Sporting Goods business unit (Mammut Sports Group) continued to
grow, with sales reaching CHF 129.2 (111.9) million, an increase of
15.5% on the previous year. A number of factors contributed to this
growth during the second third of the year. In Switzerland and
Germany, both important outdoor markets for Mammut, consumer
sentiment remained positive, despite the economic crisis. Sales
growth was particularly strong in the Korean and Japanese markets,
where Mammut has an increasing presence and the brand has been well
received. In cooperation with the retail trade, Mammut stores were
opened in Zurich and Berlin. Overall, the outdoor market was stable
in the second third of the year.

The Graphic Coatings business unit (Schmid Rhyner) generated sales
of CHF 27.8 (32.2) million (-13.8%) to the end of August 2009. As a
result of the economic downturn, demand from the printing industry
(commercial and packaging printing) continued to decline in the
second third of the year. Schmid Rhyner managed to buck the trend in
some markets, maintaining or even increasing sales, despite the
difficult market environment.

Trends and outlook
Demand in the principal markets of the Conzzeta Group has stabilized
at a very low level. However, the order intake is still showing no
sign of picking up and it may be some time before a tangible recovery
is seen in the machinery and systems engineering sector. It is
unclear how far the ongoing crisis will affect private consumption.
Conzzeta intends to continue systematically on its chosen course of
maintaining its competitiveness, geographic market coverage and
innovative strength. The capacity adjustments, which have already
been implemented to a large extent, will significantly reduce the
Group's break-even point. As announced in earlier media releases, the
2009 business year will produce negative operating and Group results.
A further recovery in the markets is needed if positive results are
to be achieved on a sustainable basis.

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

Conzzeta Group is an internationally active industrial holding
company with 3,500 employees worldwide. Its core business areas are
machinery and systems engineering, and manufacture of consumer and
industrial products. Conzzeta's shares are listed on the SWX 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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