EANS-Adhoc: Zumtobel AG / Impairment charge to goodwill in FY 09/10

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17.05.2010

Ad hoc Press Release
Dornbirn, 17 May 2010

Results for the 2009/10 financial year
Zumtobel AG with impairment charges to goodwill in FY 2009/10

Dornbirn / Austria - In connection with the preparation of the annual financial
statements for the 2009/10 financial year ending on 30 April 2010, Zumtobel AG,
which is headquartered in Dornbirn / Vorarlberg, has tested goodwill and non-
current assets for impairment as required by International Financial Reporting
Standards (IAS 36).

The last two financial years were marked by the massive effects of the most
extensive global recession in more than 60 years. The late cyclical lighting
business of the Zumtobel Group was particularly hard hit by these developments.
Revenues and earnings in the Lighting Segment were negatively influenced, above
all, by volume and price declines as well as substantial currency transaction
effects. Additionally, the Group´s mid-term planning includes selective
investments that will utilise its excellent market positions to drive growth
during the expected economic recovery, but will only be reflected in earnings
during later periods. This backdrop and the current volatile conditions on
capital markets lead to the assumption that the Lighting Segment will require
time to bring earnings back to the pre-crisis level.

As a result of these events and their influence on the impairment tests carried
out at year-end based on mid-term planning, the Zumtobel Group will recognise
impairment charges of approx. EUR 69 million to goodwill in the annual
financial statements for 2009/10. These impairment charges (IAS 36) will reduce
earnings, but not lead to any cash outflows. The charges are related primarily
to goodwill in the Thorn Lighting Group, which was acquired in 2000.

In addition to this measure, the retrospective application of IAS 21 (The
Effects of Changes in Foreign Exchange Rates) will have an impact on the annual
financial statements for 2009/10. The approx. 25% decline in the value of the
British Pound versus the Euro over the past three years will be reflected in a
currency-related adjustment of approx. EUR 24 million to goodwill, which will
be recognised directly in equity and not have any effects on earnings.

Despite the impairment charges to goodwill and this currency-related
adjustment, the equity ratio will remain at a sound level and is expected to
equal roughly 35% as of 30 April 2010 (30 April 2009: 43.3%).

Optimism for 2010/11, positive long-term trend

The long-term outlook for the Zumtobel Group remains positive in spite of these
accounting measures. This optimism is supported by the increasing stabilisation
of the economic environment as well as the growing demand for energy-efficient
lighting systems. The Management Board therefore expects an improvement in
earnings for the Zumtobel Group in the 2010/11 financial year.

The statements in this ad-hoc press release are subject to the finalisation of
the consolidated financial statements for 2009/10 and the conclusion of the
related audit. The complete annual financial statements of the Zumtobel Group
and the report by the auditor are expected to be published on 28 June 2010.

Further inquiry note:

Pressekontakt                          Kontakt Investor Relations
Astrid Kühn-Ulrich                     Harald Albrecht
Head of Corp. Communications           Head of Investor Relations
Tel. +43-(0)5572 509-1570              Tel. +43-(0)5572 509-1125
[email protected]              [email protected]
end of announcement                               euro adhoc 
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issuer:   Zumtobel AG
          Höchster Straße 8
          A-6850 Dornbirn
phone:    +43/5572/509-0
FAX:      +43/5572/509-601
mail:     [email protected]
WWW:      http://www.zumtobelgroup.com
sector:   Technology

ISIN: AT0000837307
indexes: WBI, ATX Prime, ATX
stockmarkets: official market: Wien
language: English

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