Another successful year with record earnings

Corporate news announcement processed and transmitted by Hugin ASA. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- -------------- We are delighted to report that 2007 proved to be another successful year for the Jelmoli Group's operations. Record earnings for the year at CHF 920.8 million were boosted by proceeds from the disposal of dipl. Ing. Fust AG but underlying performance was most encouraging and all the other areas of the Group's business markedly improved their results. Million CHF 2007¹ 2006¹ Deviation EBITDA Operating cashflow 142.1 130.5 +8.9% Real Estate development gains 183.0 77.3 +136.7% EBIT Operating income after depreciation 316.1 200.1 +58.0% Financial results -30.8 -51.4 +40.1% Profit before tax 285.3 148.7 +91.9% Group profit 920.8 180.0 +411.6% 1 not including Fust Group Year of Change 2007 was a year of significant developments within the Group. The disposal of dipl. Ing. Fust AG was achieved against a background of changes in the Group's strategic approach to its business structure. The disposal process was concluded at the end of the year and we believe that the successful outcome to be in the interests of the employees and management of the business concerned, and for Jelmoli shareholders. At the same time as the Group's business review led to the above disposal, Jelmoli entered into a firm agreement to dispose of its Swiss property portfolio. Subsequent to the announcement of the disposal, the buyer pulled out of the agreed purchase despite a legally-binding contract. As a result, Jelmoli has initiated legal proceedings and believes that its case has merit and will prevail. We will keep shareholders informed as proceedings unfold. Group Financial performance The Group again reported record earnings on a like-for-like basis for all its continuing businesses. Overall, the operating result for the year produced profits of CHF 142.1 million, an increase of 8.9% on the previous year. Net profits of CHF 920.8 million were driven by both a strong operational performance and the one-off gain from the disposal of dipl. Ing. Fust AG. Retail Operating results from retail increased by CHF 4.9 million to CHF 26.7 million or 22.5% on a like-for-like basis (excluding dipl. Ing. Fust AG). After depreciation, the operating result improved by CHF 7.1 million or 95.9%. This was a very good performance driven by a customer-focussed approach and efficiency improvements. Jelmoli Zurich Sales (including tenants) from the above increased by 3.6% to CHF 317.2 million. On a like-for-like basis sales from the segments operated by Jelmoli increased by 2.8%. These positive sales figures, particularly in fashion, have led to an increase in the space dedicated to this segment in Jelmoli's Zurich operation. This year, the first steps to refurbish more than 8'000 square metres will begin, marking a major development in the flagship Jelmoli House of Brands concept. Further initiatives to improve cost efficiencies and customer service will be implemented, a focus for this year and beyond. Jelmoli Bonus Card The Jelmoli Bonus Card achieved significant additional conversions to the Visa Bonus Card platform in 2007. More than 85'000 Visa Bonus cards were issued by the end of the year. Including these, Jelmoli operates more than 300'000 cards across the retail businesses. During the year, Jelmoli also issued Visa Advanced cards as an ideal offer for customers requiring full control over their expenditure. This pre-paid product is targeted specifically to the young and to travellers who aim to limit expenditure to a pre-ordained budget. Real Estate Income from real estate increased 2.9% on a like-for-like basis or 6.8% unadjusted to CHF 154.6 million. Revaluation and development gains reached CHF 288.8 million. Successfully concluded projects included the Petit Cervin (previously known as Hotel Nicoletta); the renovation of the office building in St. Annagasse and the extension of Sihlstrasse 24. All these properties are fully-let and progressing well. In addition, the development sites in Thônex and St. Gall are on plan in terms of costs and potential lettings. Furthermore, the shopping centre at La Praille continues to trade successfully. Turnover increased by 10.3% with more than 3.8 million shoppers visiting the centre in 2007. Seiler Group In November, the Group Holding company acquired a further 40% of the shares in the Seiler Group, raising its shareholding to 85%. We believe that its excellent hotel operations and high quality real estate locations will generate a strong contribution for the Group in the future. Dividend The Board will recommend a dividend of CHF 50.-- per bearer share at the Annual General Meeting on June 18, 2008. Contact persons Media: Dr. Daniel Gfeller, Secretary General Tel. +41 (0)44 220 42 29 Fax +41 (0)44 220 40 10 Analysts: Harald Pinger, CEO Tel. +41 (0)44 220 49 13 Fax +41 (0)44 220 40 10 Roland Walder, CFO Tel. +41 (0)44 220 44 26 Fax +41 (0)44 220 40 10 Internet: www.jelmoliholding.ch / www.huginonline.ch/JEL WAP mobile: wap.huginonline.com (Press Releases Jelmoli) E-mail: info@jelmoliholding.ch Key Figures at a Glance Million CHF 2007 2006 2005¹ 2004¹ 2003¹ Income statement figures Gross turnover 257.6 239.6 1'037.7 1'018.6 1'012.6 Rental income (segments) 170.7 144.8 135.7 117.2 112.4 Total Income 419.6 372.1 1'140.9 1'113.2 1'103.7 EBITDA Earnings before 142.1 130.5 203.8 186.8 172.2 depreciation Revaluation of investment 288.8 105.5 32.3 40.7 80.5 properties (segments) EBIT Earnings before interest 428.6 234.3 204.3 187.3 197.8 and taxes (segments) EBIT Earnings before interest 316.1 200.1 191.0 173.2 190.0 and taxes Group profit 920.8 180.0 51.9 88.7 101.6 EPS (Earnings per share) 1'355 288 83 142 163 in CHF Balance sheet figures (segments) Investment properties 3'007.3 2'482.9 2'303.9 2'176.0 2'033.4 Non-current assets 3'427.5 2'986.5 2'721.3 2'611.4 2'493.2 Current assets 962.6 599.9 659.5 605.5 494.3 Total assets 4'390.1 3'586.4 3'380.8 3'216.9 2'987.5 Shareholders' equity 2'624.9 1'399.3 1'204.4 1'146.3 1'034.0 Ratio figures EBITDA as % of total income 33.9% 35.1% 17.9% 16.8% 15.6% EBIT as % of total income 75.3% 53.8% 16.7% 15.6% 17.2% Equity to total assets ratio 59.8% 39.0% 35.6% 35.6% 34.6% (segments) ROIC (Return on invested 12.1% 8.7% 8.4% 7.9% 9.0% capital) ROE (Return on equity) 52.4% 15.4% 5.5% 10.1% 12.9% 1 including operations of Fust group Retail Trade (not including Fust group) Million CHF 2007 2006 Deviation from Deviation from Prior Year Prior Year Non adjusted Comparable Gross turnover 257.6 239.6 +7.5% +2.9% EBITDA Earnings before 26.7 21.8 +22.5% depreciation EBIT Operating income 14.5 7.4 +95.9% Number of employees¹ 902 820 +9.9% Sales floor area in 1000m² 33.2 25.0 +32.7% Number of retail locations² 38 37 +2.7% Turnover per employee 285.7 292.0 -2.2% -1.3% in 1000 CHF Turnover per m² sales floor 7'758 9'572 -19.0% +2.9% area in CHF 1 Average for the year (full-time employee basis), Segment, Holding, incl. part of administration staff 2 Corresponds to number of addresses (not including Fust) Real Estate Million CHF 2007 2006 Deviation from Prior Deviation from Year Prior Year Nonadjusted Comparable Total rental income 154.6 144.8 +6.8% +2.9% External rental 135.5 123.7 +9.5% income EBITDA Earnings 115.4 108.7 +6.2% before depreciation EBIT Operating 414.1 226.9 +82.5% income Number of 93 102 -8.8% employees¹ Portfolio value 3'321 2'738 +21.3% IAS40² Value appreciation 288.8 105.5 +173.7% Overall 17.5% 9.9% performance³ 1 Average for the year (full-time employee basis) 2 Per year-end incl. properties under construction and participations 3 Current revenue plus value appreciation --- End of Message --- Jelmoli -----------------------------------------
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