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Jelmoli (SWF:JEL) Corporate news announcement processed and transmitted by Hugin ASA. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- -------------- Jelmoli Group operating income (EBITDA) for the first half-year 2008 rose markedly again in all divisions. Property revaluation gains were lower than the high mid-2007 level. Earnings by the continued divisions more than doubled, not including revaluation gains on investment properties.
Group key figures (consolidated, unaudited)*
First half-year (in million CHF) 2008 2007 Change Turnover 145.2 111.7 +30.0% comparable +2.5% Rental income 87.4 73.2 +19.3% (incl. from own retail locations) comparable +3.7% Operating cashflow EBITDA 75.4 57.2 +18.2 Depreciation -9.6 -9.0 Value appreciation to IAS40 108.5 428.5 -320.0 Operating income EBIT 174.3 476.7 -302.4 Financial income -17.0 -19.3 Earnings before tax EBT 157.3 457.4 Tax -34.9 -113.2 Net income from continued operations 122.4 344.2 -221.8 Net income from continued operations 36.8 16.1 +20.7 (without revaluation) Net income from discontinued - 26.8 operations Net income 122.4 371.0 -248.6 thereof Jelmoli shareholders 121.0 371.8 (Group income) thereof minority interests 1.4 -0.8
* For the first time, the mid-year accounts 2008 have been reviewed (see report page 14 in PDF attachment)
All divisions recorded markedly higher operating income than per mid-year 2007, and retail trade earnings even doubled. Earnings contributions of Dipl. Ing. Fust AG and netto24 are no longer reported in detail but summarized net under "discontinued business operations" for prior year.
The market value of investment properties was newly estimated per June 30, 2008 by the independent assessor. The high development gains resulting from the opening of the St. Gall Shopping Arena underline Jelmoli's capability of creating added value also in the real estate business.
The financial income statement reveals lower debt of CHF -17.0 million (prior year CHF -19.3 million). This improvement is mainly attributable to high liquidity and repayment of current liabilities. Once-only costs in connection with the planned split of the Jelmoli Group likewise impacted financial outlay.
Due to lower property revaluation gains, corporate net profit did not match the exceptionally high level per June 30 of prior year in connection with the planned sale of all Swiss investment properties. This was however adjusted per year end 2007 to market changes. Not including revaluation gains on investment properties, earnings by the continued divisions more than doubled, thus exceeding expectations significantly.
Year-end outlook All business units are well on course according to plan. Assuming stable economic conditions, Jelmoli should therefore continue to profit from the cost optimizations achieved in all divisions.
During the second half-year a strategic change of course is expected. The proposed realignment and split of the Jelmoli Group into a real estate company and an investment company should be ready for approval by shareholders durnig the fourth quarter 2008.
Preparations for the proposed split are well advanced, and no significant hindrances to implementation are expected any longer from the tax or legal points of view.
Jelmoli Holding Ltd September 16, 2008
Christopher Chambers, Chairman of the Board Michael Müller, President of the Executive Committee
Disontinued operations Turnover Dipl. Ing. Fust / - 420.1 netto24
Operating income doubled Jelmoli Zurich turnover for the first half-year 2008 was 3.1% higher than in 2007 per comparable sales floor area. Overall turnover of the Jelmoli Zurich shopping gallery including that of external tenants was even 4.1% higher than per mid-year 2007.
Two specialty business closures due to unprofitability were offset by the successful new openings of two Molino restaurants in Geneva (Lacustre) and Zermatt (Seilerhaus). For the first time, these figures also include the Seiler hotel operations in Zermatt.
Including the hotel operations taken over in Zermatt and Geneva, mid-year turnover rose overall by 30% to CHF145.2 million.
The remaining Fundgrube Bonne Occase Ltd stores will be successively closed by mid 2009 due to unsatisfactory profitability and a long-standing decline in turnover.
Per end of May 2007 the Dipl. Ing. Fust AG and netto24 retail trade segments were sold to Coop for CHF990million (including financial liabilities). The relative net profit figures are summarized under "discontinued business operations" for prior year.
The operating income both of Jelmoli Zurich and the Specialty Businesses rose markedly again, reaching more than double the mid-2007 level overall.
This is set off however by significantly higher extraordinary costs in connection with strategic split planned for the Jelmoli Group (see annex).
Year-end outlook Assuming no significant worsening of economic conditions, operating income will continue to benefit from the optimized cost basis.
Real Estate
First half-year (in million Change CHF) 2008 2007 effective comp. Rental income Jelmoli 80.9 73.2 +10.4% +3.7% Rental income Specialty 6.5 - Businesses Rental income segment 87.4 73.2 +19.3% +3.7% EBITDA Jelmoli 62.0 59.9 +2.1 EBITDA Specialty Businesses 5.7 - +5.7 EBITDA extra ord./Holding share -7.6 -9.1 +1.5 Operating cashflow EBITDA 60.1 50.8 +9.3 Depreciation -0.8 -0.9 +0.1 Value appreciation to IAS40 111.4 616.3 -504.9 Operating income EBIT 170.7 666.2 -495.5
Rental income up by 19.3% to CHF 87.4 million About one third of the increase in rental income is attributable to the St. Gall Shopping Arena opened in March this year.
Including additional contributions from the Seiler Group acquisition in November 2007 and the Sihlstrasse Zurich property reopening in the second quarter 2007, rental income per mid-year rose absolute by 19.3% or CHF 14.2 million to CHF 87.4 million.
Rental income not including the Seiler acquisition rose during the period under review by 10.4% to CHF 80.9 million, or about 3.7% per comparable floor area as against mid-year 2007.
Jelmoli operating income for the first half-year 2008 did not rise quite as steeply as net rental income. This is because pre-opening costs in connection with the new St. Gall Shopping Arena primarily impact results for the first half-year.
The high level of extraordinary costs is attributable above all to projects and outlay in connection with the legal disputes, which are still pending in part (Tivona/Delek).
With a view to the planned split of the Jelmoli Group, the entire real estate portfolio was revalued per June 30, 2008. Following the high property appreciation earnings of prior year, when sale of the entire real estate portfolio was planned, the new St. Gall shopping arena opening has boosted development earnings for the first half-year 2008 to CHF 111.4 million. While significantly lower than the mid-2007 level of CHF 616.3 million - which already per year-end was reduced to CHF 288.8 million due to market changes - this never theless exceeds expectations significantly.
Year-end outlook Opening of the new shopping center in Thônex (Geneva) is planned for autumn 2008. Construction and rentals are progressing according to schedule. While significant development gains are again expected here, they will be considerably lower than in St. Gall due to the lower investment involved (about CHF 50 million).
Furthermore, the first shopping center opening in Russia (Nizhny Novgorod) is planned for November this year. So far about CHF 80 million out of the approved CHF 120 million has been paid in to the respective development companies in Russia and Algeria.
Attached please find the following information - Consolidated income statement (Group and segments) - Consolidated balance sheet (Group and segments) - Consolidated Statement of Changes in Equity - Group Statement of Cashflow - Group Accounting Principles and Notes - Review Report to the Board of Directors
Contact persons for inquiries
Media: Dr. Daniel Gfeller, Secretary General +41 (0)44 220 42 29, Fax +41 (0)44 220 40 10 Analysts: Micheal Müller, President of the Executive Committee Phone +41 (0)44 220 49 13, Fax +41 (0)44 220 40 10 Roland Walder, CFO Phone +41 (0)44 220 44 26, Fax +41 (0)44 220 40 10
