10 March 2010

Abandonment of the business segment Road + Rail as a result of strategic realignment

In the fiscal year 2009, the Logwin Group generated sales in its continuing business operations of €1,113.0 million (2008: €1,407.6 million). Cuts in production, particularly in the automotive industry, drastic falls in trading volumes and very low freight rates resulted in a decline in sales of 20.9%.

The group achieved an operating income (EBIT) of €9.7 million, plummeting 66.3% compared to €28.8 million achieved in 2008. In the reporting period, an impairment on assets of €1.4 million was made.

The economic downturn had a severe impact on business development at Solutions. Revenue amounting to €690.4 million was 20.2% below those of the previous year (2008: €865.7 million). Operating result (EBIT), at €1.0 million, was significantly below the previous year’s result (2008: €12.3 million) due to a fall-off in demand and volumes caused by the economic situation and the current price pressures in the logistics industry.

Logwin’s Air + Sea business segment generated sales of €423.9 million in the fiscal year 2009 (2008: €553.3 million). Market-related lower customer demand, the resultant weak volume growth and the sharp decline in freight rates were the main causes of the 23.4% decrease in sales. Operating result (EBIT) amounted to €14.2 million (2008: €23.5 million), with an EBIT margin of 3.3%.

The Road + Rail division generated sales of €514.6 million (2008: €687.2 million). This represents a decrease of 25.1%. Operating result (EBIT) fell to -€16.1 million (2008: -€5.5 million). As a result of the divestments and closures, which have already been completed to a large extent, there were one-time expenses as well as accounting profits and losses totaling -€36.6 million. In view of the planned reduction of land transportation activities, a full goodwill impairment loss was already made on the business segment Road + Rail amounting to -€27.3 million.

The net cash flow for the overall group (including discontinued business operations) was €7.7 million, down from €12.3 million in 2008. Cash and cash equivalents increased to €64.6 million, from €63.2 million in 2008.

The Logwin Group has adapted its business model to match the long-term challenges of the logistics market and has significantly reduced its land transportation activities. Following the successful integration of its German General Cargo activities into Solutions and the sale of nearly all other Road + Rail activities, the business segment Road + Rail is being abandoned and is therefore reported in the Group’s consolidated financial statement for 2009 as discontinued business operations.

The Group is focusing on multiple development opportunities in its Solutions and Air + Sea business segments, while still remaining an integrated logistics service provider. Logwin will be offering access to general cargo networks via partners and through cooperation. This focus is set to make the Company leaner, more efficient and thus fit for the future.

In the business segment Solutions, special focus will in future be placed on the product and market combinations of Fashion, Media, Retail and industrial sectors such as automotive and engineering.