ARQUES Industries AG / Quarter Results 20.11.2008 Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- ARQUES enhances cash flow and reduces debt in the third quarter - Nine-month revenues quadrupled to EUR3.93 billion - EBITDA at EUR40.6 million - Free cash flow increased by EUR44.0 million to EUR57.2 million - Net financial liabilities reduced by EUR87.7 million - Forecast for 2008 adjusted to reflect much weaker market environment Starnberg, November 20, 2008 Not even ARQUES Industries AG (ISIN DE0005156004) was able to elude the considerably worsening economic conditions in the third quarter. Consolidated revenues more than quadrupled year-on-year, from EUR930.6 million to EUR3,925.8 million. In particular, falling profit contributions from the effects of initial consolidation and lower proceeds from company disposals led to a decline in EBITDA to EUR40.6 million. The contribution to profits from the effects of initial consolidation decreased from EUR135.6 million in the third quarter of 2007 to EUR13.1 million. In addition, ARQUES was forced to recognize impairments of EUR51.0 million on its holding in automotive supplier Eurostyle in the third quarter of 2008. Significant pre-tax and post-tax losses have been recorded for the first nine months, due above all to non-recurring expenses not affecting liquidity arising from portfolio adjustments coupled with depreciation and amortization charges. ARQUES has been concentrating on building up liquidity and reducing debt during 2008. Imminent investment and disinvestment decisions will be made with this in mind. Consequently, the free cash flow, which has risen EUR44.0 million to EUR57.2 million, has been used primarily to reduce current financial liabilities, which have been reduced from EUR85.8 million to EUR171.8 million over the first nine months of the year. 'Weve again succeeded in achieving significant improvements in terms of both cash flow and net debt in the third quarter. At the same time, however, the weak economic environment made it impossible for us to meet our earnings targets in particular. Consequently, ARQUES is having to revise its revenue and profit targets for 2008 downward,' comments Dr. Michael Schumann, the Chairman of the Executive Board of ARQUES Industries AG. ARQUES is revising its annual targets for 2008 as a whole to reflect persistently difficult economic conditions ARQUES now expects revenues to total at least EUR5.0 billion and EBITDA at least EUR100.0 million. The forecast EBITDA of at least EUR100.0 million is based on the assumption that, with the exception of the acquisition of Gigaset Communications GmbH, no further significant company acquisitions or disposals will take place in the fourth quarter of 2008, generating no positive or negative profit contributions. The reduction in the EBITDA forecast can only be attributed to a small extent to falling earnings from portfolio companies expected in the fourth quarter of 2008. Positive free cash flow development expected again in the fourth quarter During the final quarter of the year, ARQUES will concentrate even more on enhancing its cash flow and balance sheet structure. Thus management expects free cash flow to again develop positively in the fourth quarter. The interim report on the first three quarters of 2008 can be found online at www.arques.de. About ARQUES ARQUES Industries AG, Starnberg, (www.arques.de) is a business partner of conglomerates regarding company spin-offs and a turnaround specialist who focuses on the acquisition and the active restructuring of companies in transitional situations, in order to develop these, with its own team and own resources, to competitive enterprises with a positive yield. ARQUES revitalizes its subsidiaries potential for creating value for the benefit of all its stakeholders, taking on the relevant social responsibility. The shares of ARQUES Industries AG are traded on the regulated market (Prime Standard) of the Frankfurt Stock Exchange under the symbol 'AQU' (ISIN: DE0005156004) and are listed in the SDAX. Contact ARQUES Industries AG Investor Relations & Corporate Communications Anke Lüdemann, CEFA/CIIA E-mail: luedemann@arques.de Public Relations Christian Schneider E-mail: schneider@arques.de Tel.: +49 (0) 8151/ 651 0 DGAP 20.11.2008 --------------------------------------------------------------------------- Language: English Issuer: ARQUES Industries AG Münchner Str. 15a 82319 Starnberg Deutschland Phone: +49 (0)8151 651-0 Fax: +49 (0)8151 651- 500 E-mail: luedemann@arques.de Internet: www.arques.de ISIN: DE0005156004 WKN: 515600 Indices: SDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Hamburg, Düsseldorf, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-News: ARQUES enhances cash flow and reduces debt in the third quarter
| Source: EQS Group AG