DGAP-IRE: Leica Camera AG: Interim announcement as at December 31, 2008: 3rd quarter fiscal year 2008/2009


Leica Camera AG / Release of an announcement according to Article 37x of the WpHG [the German Securities Trading Act]

18.02.2009 

Interim report according to Article 37x of the WpHG
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The Group led by Leica Camera AG (ISIN DE000A0EPU98) closed the third
quarter with sales in the amount of EUR 41,125k (previous year: EUR
38,181k). The higher sales as compared to the third quarter of the previous
year are the effect of the Company's successful participation in the 2008
photokina trade fair. Cumulated sales for the fiscal year came to EUR
93,169k as at December 31, 2008 (previous year: EUR 127,017k). All segments
of the Group contributed to this decline in sales in comparison to the
comparable prior year period.

For the quarter under review, EBIT (earnings before interest and taxes)
were EUR 196k (previous year: EUR 1,803k). The rise in sales
notwithstanding, the EBIT decreased; this is mainly due to shifts in
margins resulting from the product mix, declining margins resulting from
substantial promotional activities and is also the result of the effects of
the global economic crisis.

In the third quarter of the fiscal year the Company made development
expenditure in the amount of EUR 1,805k (previous year: EUR 3,798k).

Total assets as at December 31, 2008 were 3.4 % higher than as at March 31,
2008. On the assets side of the balance sheet, non-current assets increased
by 36.6 %, especially due to the purchase of the shares of LCA Holding AG,
Nidau, Switzerland, and the capitalisation of development costs. In
September 2008 Leica Camera AG took over the share capital of LCA Holding
AG, which is the parent company of Leica Camera AG and of Perrot Image SA,
both domiciled at Nidau, Switzerland. Initial consolidation in the Group
financial statements of Leica Camera Group was effected as of September 24,
2008 according to the regulations of IFRS 3 on the basis of provisional
valuation.

Current assets decreased by 6.9 %. Within current assets, receivables and
inventories increased at the expense of liquid funds. Short-term
liabilities increased by 31.3 %, mainly due to the increase in liabilities
to banks. In consequence of the negative result of the first nine months of
the fiscal year the equity ratio decreased from 20.8 % as at March 31, 2008
to 13.4 % as at December 31, 2008.

The number of employees in the Group increased from 1,003 to 1,073 due to
the expansion of business.

For fiscal year 2008/2009 the Company's Board of Management expects a Group
net loss in the higher one-digit Euro million range or higher, resulting
from research and development expenditure, selling costs, delayed market
introduction of new products, as well as from the economic slump and the
financial market distress. The same applies to the separate financial
statements of Leica Camera AG. The positive effect expected from the market
introduction of innovative products, namely in the S2 system range, is
overshadowed by the global crisis, therefore the Board of Management
expects the result of fiscal 2009/2010 to be markedly negative.

Today the Board of Management of Leica Camera AG, Solms, has resolved to
use part of the authorised capital to improve the Company's capital base
and to strengthen the Company's liquidity in the medium term, with the
exclusion of subscription rights. ACM Projektentwicklung GmbH, Salzburg,
represented by its Managing Director, Dr. Andreas Kaufmann, has consented
to allocate capital in the amount of at least EUR 6 million to the Company.
This capital increase is expected to be completed already in February 2009.

DGAP 18.02.2009 
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Language:     English
Issuer:       Leica Camera AG
              Oskar-Barnack-Straße 11
              35606 Solms
              Deutschland
Internet:     www.leica-camera.com
End of News                                     DGAP News-Service
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