DGAP-Adhoc: Leica Camera AG: Leica Camera AG closes fiscal year 2008/2009 with 14 % sales decrease

Leica Camera AG / Final Results

06.08.2009 

Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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In fiscal year 2008/2009 (FY end March 31), the Group led by Leica Camera
AG, Solms (ISIN DE000A0EPU98) registered sales of EUR 134.2 million
according to the Group financial statements prepared by the Board of
Management. This corresponds to a 14.1 % decrease as compared to the sales
of EUR 156.2 million posted in the previous year. As expected, the Group
result for the year was negative and amounted to a net loss of EUR 4.8
million, corresponding to a decrease of EUR 7.8 million as compared to
previous fiscal year reporting period. At the meeting of the Supervisory
Board on July 1, 2009, the annual financial statements of Leica Camera AG
and the Group financial statements were accepted as submitted.

Rudolf Spiller, Chairman of the Board of Management of Leica Camera AG:
'The reasons for the decline in sales and earnings are to be found in the
negative economic developments of our relevant international markets, the
phasing-out of products due to their life cycles, as well as the delayed
market introduction of new products.'

In fiscal year 2008/2009, sales of system cameras fell by 26.9 % to EUR
41.8 million. Sales of compact cameras decreased by 10.3 % to EUR 44.3
million. Leica sports optics saw a sales decline by 16.6 % to EUR 24.8
million.

Sales abroad stand at EUR 115.8 million or 86.4 % of total sales of Leica
Camera Group. At EUR 49.1 million or 36.6 % of total sales, the Asian
market is the most important individual market for Leica Camera AG,
followed by the US, Canada and Mexico, which account for EUR 27.9 million
or 20.8 % of total sales. Sales in the home market, Germany, fell by 15.9 %
to EUR 18.3 million.

In the year under review, the Group reports a net loss in the amount of EUR
4.8 million (previous year: net income of EUR 3.0 million). Due to
decreased sales, the operating result has deteriorated by EUR 9.0 million
to EUR -1.3 million, which is still better than forecast. Personnel
expenses increased by 7.3 % due to staff intake necessary for the work on
the renovation of the product portfolio. The average number of employees in
the Leica Camera Group increased from 991 in the previous year to 1,058 in
the year under review. Positive effects on the result came from strict cost
control, higher holding gains (EUR 9.4 million) and from income from the
release of allowances and provisions (EUR 1.5 million). The interest result
decreased by EUR 0.5 million, mainly due to lower interest receipts on
balances with banks. The equity ratio has improved from 20.8 % to 22.8 %.
As a result of the negative results development liquid funds decreased from
EUR 29.4 million to EUR 23.3 million, including the proceeds, amounting to
EUR 9.5 million, from the capital increase carried out in February and
March 2009.

In addition, the Company has entered into a general agreement, dated June
25, 2009, with ACM Projektentwicklung GmbH on the remission of debt with a
debtor warrant. According to the agreement ACM Projektentwicklung GmbH in a
first tranche will waive bond claims against Leica Camera AG amounting to
EUR 8 million.

The Group financial statements have been prepared in accordance with the
International Financial Reporting Standards (IFRS).

The Chairman of the Board of Management, Rudolf Spiller, on the outlook for
fiscal year 2009/2010: 'Considering the general framework of the global
economy a well-founded results forecast for fiscal year 2009/2010 is hardly
possible. We therefore expect a negative result.

In the Photo product group we have identified as an opportunity for
profitable growth a substantial extension of our portfolio of new digital
system cameras - among them the Leica S2 model presented at last year's
photokina. In the lenses range the Company has already marketed new
products and has further products in the planning stage. In the Sports
optics product group the existing products will be renewed and additional
product lines introduced. More than eight new products are scheduled for
market introduction in calendar year 2009.

We counteract risks by implementing an integrated restructuring concept.
The measures included pertain to cost savings, optimisation of the supply
chain, reduction of labour cost, reorientation of research and development
projects, improvement of the sales concept, acceleration of the
introduction of new products, as well as improvements in communications and
leadership.'


Contact:
Stefan Goebel / Phone direct +49 6442 - 208 450 / Fax direct +49 6442 - 208
333 / stefan.goebel@leica-camera.com


DGAP 06.08.2009 
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Language:     English
Issuer:       Leica Camera AG
              Oskar-Barnack-Straße 11
              35606 Solms
              Deutschland
Phone:        06442-208-0
Fax:          06442-208-333
E-mail:       ir@leica-camera.com
Internet:     www.leica-camera.com
ISIN:         DE000A0EPU98
WKN:          A0EPU9
Listed:       Regulierter Markt in Frankfurt (General Standard);
              Freiverkehr in Berlin, München, Düsseldorf, Hamburg,
              Stuttgart
 
End of News                                     DGAP News-Service
 
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