DGAP-News: ARAGON AG: Results for Q3 2012


DGAP-News: ARAGON AG / Key word(s): Quarter Results
ARAGON AG: Results for Q3 2012

18.12.2012 / 07:00

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  - Positive EBITDA of EUR 2.0 million in third quarter

  - Stable turnover in challenging climate

  - Cautious optimism about final quarter

  - Good starting position achieved for 2013

Aragon AG, one of the leading financial services players in Germany and
Austria, can post a significant improvement in its third-quarter earnings
compared with previous quarters. Revenues reached new record levels in the
first nine months.  The company is cautiously optimistic about the fourth
quarter. With the sale of loss-making Clarus and further measures to
streamline its portfolio, Aragon has built up a very good starting position
for the 2013 financial year.

'Despite the difficult climate, the third quarter was a good period for
Aragon AG', commented CEO Dr. Sebastian Grabmaier. 'We have achieved a
turnaround in our earnings, made progress in focusing on our core
businesses. Not only that, with the announced management buyout, we have
created a stable shareholder structure for the company in future. We
therefore can afford to look to 2013 with confidence.'

The 2012 financial year has been a challenging time for financial sales
companies across the board. The sovereign debt crisis has further increased
investors' uncertainty. In the case of capital market products, this is
reflected in unwillingness to invest. At EUR 1,655 million, total product
sales at Aragon AG for the first nine months matched the previous year's
figure. In defiance of the market trend, however, the holdings in
investment funds managed by Aragon AG (assets under administration)
maintained their ground well. At EUR 4.1 billion as of 30 September 2012,
these were around 17 percent ahead of the previous year's figure (EUR 3.5
billion).

Overall, revenues at Aragon AG grew by 5.1 percent to EUR 90.8 million in
the first nine months of the year. Of these record revenues, around EUR
10.0 million were still attributable to the Clarus Group. Year-on-year,
revenues dropped slightly to EUR 30.8 million in the third quarter (Q3
2011: EUR 32.4 million).

The earnings performance at Aragon AG improved significantly in the third
quarter. Earnings before interest, taxes, depreciation and amortisation
(EBITDA) from continuing operations grew to EUR 2.0 million in the third
quarter (previous year: EUR 1.5 million). Nine-month EBITDA therefore
amounted to EUR 0.3 million, thus falling significantly short of the
previous year's figure of EUR 2.1 million. Before taxes, the company posted
a loss of EUR 2.5 million (EUR -0.3 million) for the first three quarters.
Net income after minority interests reduced from EUR 0.4 million to EUR
-2.3 million.

The company is still robustly positioned in terms of its key balance sheet
figures. Shareholders' equity amounted to EUR 44.1 million as of 30
September 2012, as against EUR 53.3 million in the previous year. The
equity ratio remained stable at 45.5 percent (previous year: 45.8 percent).
Cash and cash equivalents dropped to EUR 6.9 million as of 30 September
2012 (previous year: EUR 16.0 million). The reduction in liquidity is
solely due to the first-time consolidation in the previous year of the now
sold Clarus Group. Excluding this effect, the volume of liquid resources
would have remained stable.

Together with the positive disposal price achieved for Clarus AG, the
discontinuation of the six-digit monthly losses previously incurred at that
company has had a sustainably positive impact on the income statement and
balance sheet at Aragon AG. The disposal of the health insurance specialist
inpunkto AG in the fourth quarter generated sales proceeds in a high
single-digit million euro range for Aragon AG. As a result, the company
will be able to fully pay off its bank liabilities in the first quarter of
2013. Two strategic financing facilities will then be the only non-current
liabilities remaining, and these can be serviced from the cash flow in over
the coming years.

'These company disposals not only streamline the brand portfolio at Aragon
AG, but also enable us to significantly reduce our costs', added company
CFO Ralph Konrad. 'We expect to see the first positive impact of these
measures in 2013, with an increasingly positive effect in 2014.'

The individual segments at Aragon AG performed as follows in the period
under report:

Broker Pools: Reduction in key figures
The Broker Pools segment, which focuses on selling financial products via
financial intermediaries to private end customers, reported revenues of EUR
49.0 million in the first nine months of 2012. Revenues thus reduced by 7.5
percent compared with the previous year. EBITDA amounted to EUR 1.0 million
in the first nine months, as against EUR 1.5 million in the previous year's
period.

Financial Consulting: Substantial sales growth
Financial Consulting, the segment which provides independent financial
planning and investment advice to private customers, significantly expanded
its revenues in the first nine months of 2012. Year-on-year, revenues grew
by 23.5 percent to EUR 42.1 million. Nine-month EBITDA amounted to EUR 0.8
million in the first nine months, as against EUR 2.2 million in the
previous year.

Outlook
Due to the highly seasonal nature of its business, fourth-quarter results
at Aragon AG are always significantly better than those for the previous
quarters. Having said this, the sale of insurance products in the run-up to
the harmonisation in gender-specific insurance premiums (the so-called
'unisex effect') is not performing as strongly as expected. Turnover with
capital market products also remains weak. The company therefore expects a
lower volume of revenue growth from year-end business in 2012 than in
previous years.

'To return the company to its former earnings strength, we will continue to
focus Aragon AG on its core businesses offering stable, sustainable
earnings, thus minimising as far as possible the risks inherent in its
business model', commented company CEO Dr. Sebastian Grabmaier.

The quarterly report can be downloaded with immediate effect from
www.aragon.ag.

About Aragon AG 
Aragon AG is a broadly diversified financial services group with two
operating segments, Broker Pools and Financial Consulting, and a Holding
division. Within its segments, Aragon AG operates in the market with
several independently acting subsidiaries. The aim is to integrate various
sales models under one roof without infringing on the identity of each
individual sales operation. This leads to broad diversification across
numerous asset classes and distribution channels and, as a result, ensures
high earnings stability. Further information about the company and its
subsidiaries can be found at www.aragon.ag.

Contact:
Aragon Aktiengesellschaft

Ralf Funke
Investor Relations
Tel.: +49(0)611 890 575-0
Fax:  +49(0)611 890 575-99
E-Mail: ir@aragon.ag


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197238 18.12.2012