DGAP-News: AWD Holding AG: AWD initiates restructuring programme

AWD Holding AG / Quarter Results

05.05.2009 

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Hanover, 5 May 2009 (AWD Holding AG) - Private customers' unchanged strong
focus on liquidity-oriented investments affected the development of the AWD
Group in the first quarter of 2009 more than had been anticipated. Above
all in the United Kingdom and Austria, business developments were
disappointing in the months of January to March 2009. In a difficult market
environment, however, the up-front business in the Germany region was
encouragingly stable. Revenue in Switzerland increased slightly. The AWD
Group's total revenue in the period under review amounted to EUR133.4
million
(-21.3%). The unexpectedly sharp drop in Group revenue had a negative
effect on earnings. First-quarter EBIT amounted to minus EUR6.0 million,
and
was thus significantly below the result for the prior-year quarter of plus
EUR19.2 million. The net loss for the period under review amounted to minus
EUR5.5 million (Q1 2008: net profit of EUR14.1 million).

As a consequence of these results, AWD has initiated intensive
efficiency-improving actions, whereby all cost components will be examined.
For example, AWD's role as name sponsor of the AWD Dome, a multifunction
hall in Bremen, will be terminated at the end of the year. The sponsorship
of Eintracht Frankfurt, a Bundesliga football club will end at the middle
of the year. Furthermore, the sponsoring of the DFB-Cup will already be
discontinued following this year Cup final on May 30th. Other such
activities will be reviewed. The Group's commitment as name sponsor of the
AWD Arena in Hanover is not in doubt, however.

In Austria, a first decisive step has been taken towards AWD's new
positioning with the new appointment of former Bank Austria board of
management member Dr. Ralph Müller as a new member of AWD's Board of
Management with responsibility for AWD Austria and AWD CEE. 'From the
starting point of an anticipated market improvement and the rapid
implementation of the efficiency actions we have initiated, we are
affirming our medium-term goals,' stated Manfred Behrens, Chairman of the
Board of Management (CEO) of the AWD Group: 'In 2012, the AWD Group aims to
achieve revenue of about EUR1 billion and an operating profit (EBIT) of
EUR130
million.'

A total of 140,400 customers were advised in the first three months of the
year 2009, and new-customer acquisitions remained at the high level of
40,400 customers advised for the first time. 100,000 existing customers
were advised once again by AWD in the first quarter of this year.

The AWD Group succeeded in raising the total number of sales
representatives active for the Group by 305 to 9,851 (+3.2% in comparison
with Q1 2008). In addition to sales representatives in training and tied
agents (Proventus), the AWD Group also has 5,376 registered advisers as
non-exclusive agents as defined by the EU Insurance Mediation Directive or
corresponding local requirements. That number has increased significantly
in the past twelve months.

A detailed corporate release can be downloaded from www.AWD-Group.de/ir.
AWD's quarterly report for Q1 2009 will be published on 14 May 2009.



If this publication contains any forecasts or expectations or if our
statements refer to the future, such statements can involve risks and
uncertainties. We therefore cannot guarantee that the expectations will
prove to be correct. Actual events and developments can differ
significantly from the expectations and assumptions expressed herein. The
factors that can cause such deviations include changes in the general
economic situation and the competitive situation, particularly in the core
business areas and markets, exchange-rate and interest-rate fluctuations,
changes in national and international legislation, especially pertaining to
tax regulations, and changes in investment or business strategy. The
company does not assume any obligations to update the statements made in
this publication.

Please note: Unless otherwise indicated, all figures and details given here
relate to the continuing operations of the AWD Group and exclude the
operations of AWD Home Finance, which were discontinued on 12 December
2008.
DGAP 05.05.2009 
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Language:     English
Issuer:       AWD Holding AG
              AWD-Platz 1
              30659 Hannover
              Deutschland
Phone:        +49 (0)511 9020-5120
Fax:          +49 (0)511 9020-5121
E-mail:       investor.relations@awd.de
Internet:     www.awd.de
ISIN:         DE0005085906
WKN:          508590
Listed:       Regulierter Markt in Frankfurt (Prime Standard), Hannover;
              Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
              Stuttgart
End of News                                     DGAP News-Service
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