euro adhoc: Valora Holding AG / other / Valora reports good third quarter performance, Group on track (E)

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31.10.2007

During the 3rd quarter of 2007, Valora, the Swiss trading group, generated
an operating profit of CHF 21 million, according to initial estimates.
After a disappointing 2nd quarter, this encouraging result shows that the
Group's new strategy and the initiatives it has taken to optimise operating
efficiency are both on track. Valora rejects the demands recently made by a
new group of investors. The Board of Directors has emphasised that, in the
event of any controversy on this matter, it will adhere strictly to the
Group's current by-laws.

For the first time in its history, Valora is today publishing estimated
quarterly financial results. The Group has two reasons for this step.
First, the unsatisfactory performance turned in during the 2nd quarter of
2007 had led to uncertainty among financial analysts and shareholders as to
the Group's ongoing performance. The good results achieved in the 3rd
quarter demonstrate that the performance slump suffered in the second three
months of this year was merely a dip on the road to recovery. Second, the
Chairman of the Board is taking the publication of these estimated 3rd
quarter results as an opportunity to counter recent public attacks made by
a newly created group of investors. As he puts it, "Valora is not a
football for speculators to kick around. The Group's strategy makes sense,
and it is being implemented effectively."

Valora has undergone far-reaching changes in recent years. The unsuccessful
policy of divestiture and acquisitions pursued in the late 1990's has made
way for a strategy based on focus. Correcting these mistakes ultimately
cost Valora more than CHF 600 million. By mid-2008, when the five
production companies have been sold, implementation of this focussed
strategy will have been completed. Valora will then be a pure-play trading
company, an internationally active trading Group operating in three
divisions: Retail, Media and Trade. "In the near term, management will
concentrate on stabilising operational profitability, by actively pursuing
cost efficiencies and organic growth", in the words of Fritz Ammann,
Valora's Board Chairman.

Cautious optimism
At an operational level, Valora has staged an impressive recovery from the
poor performance it displayed in the previous quarter. Initial 3rd quarter
estimates show that the Group achieved good results in each of the months
from July to September 2007. Compared with figures for the same quarter
last year, net revenues were raised by CHF 39 million to reach CHF 756
million, while estimated operating income topped CHF 21 million, compared
with CHF 18 million a year earlier. Based on these results, and taking the
2007 first-half figures into account, Valora anticipates that the 2007
financial year as a whole should generate a Group operating profit of at
least CHF 48 million, with comparable results being achieved in 2008 as
well.
The sale of the production companies is progressing well. The Board of
Directors intends to return the net proceeds of this sale to the Group's
shareholders.

Kiosks begin to reveal silver lining
The problems confronting the kiosk business in Switzerland have been
identified and contained. The measures needed to remedy the situation are
currently being implemented and are now receiving the attention they
require. Earlier inaccurate estimates of the progress already made by
restructuring initiatives have been corrected. The management team has
assigned priority to modernising the IT systems, re-focussing category
management and optimising our sales organisation and outlet network. The
outlet network will increasingly be divided into geographical and product-
range-specific clusters and 2008 will also see the first franchising
concepts being tested. "We will continually adapt our kiosk business to
shifting trends in market and customer needs", as CEO Peter Wüst puts it.

By-laws are binding
The Board of Directors will listen attentively to the arguments advanced by
the recently created investor group. It is unanimous in adhering to clear
and consistent entrepreneurial values: sustainable profitability rather
than one-off results, quality before quantity and long-term strategy before
short-term tactics. What the Board will not do is entertain proposals based
solely on short-term, speculative financial objectives.
The Board decisively rejects the various calls for an extraordinary
shareholders' meeting which have recently been expressed in the media.
Valora's by-laws limit the number of voting shares which can be registered
to one individual shareholder or to a group of shareholders acting in
concert to 5% of all outstanding shares. An extraordinary shareholders'
meeting can be called only at the behest of at least 10% of the
shareholders eligible to vote. In Fritz Ammann's words, "It is the duty of
Valora's Board and management to adhere strictly to these provisions in the
by-laws."

Information on October 31, 2007: Questions relating to this media
communiqué will be answered during the media
and financial analysts' meetings taking place
on October 31, 2007.

Press breakfast briefing in Zurich
Dr. Fritz Ammann, Chairman of the Board of Directors, Peter Wüst, CEO, and
Markus Voegeli, CFO, will be hosting a press breakfast briefing to which
all media correspondents are cordially invited.

Date: Wednesday, October 31, 2007
Time: 10.00 a.m.
Participants: Media correspondents
Venue: Crowne Plaza
Badenerstrasse 420
8040 Zurich
Phone +41 44 404 44 44

Financial analysts' conference call to be conducted in English
Dr. Fritz Ammann, Chairman of the Board of Directors, Peter Wüst, CEO, and
Markus Voegeli, CFO, will also be hosting a conference call for financial
analysts that same afternoon.

Date Wednesday, October 31, 2007
Time: 16.00 CET
Participants: Financial analysts
Dial-in numbers: To participate in the conference, call one of the
following numbers
(please call 5 to 10 minutes before the hour):
+41 (0) 91 610 56 00 (continental Europe)
+1 (1) 866 291 4166 (United States)
+44 (0) 207 107 0611 (United Kingdom)

Further inquiry note:
Information on October 31, 2007: Questions relating to this media
communiqué will be answered during the media
and financial analysts' meetings taking place
on October 31, 2007.

Valora Holding AG
Belpstrasse 37
CH-3007 Bern
Phone + 41 058 789 11 11
Fax + 41 058 789 11 12
[email protected]
www.valora.com

end of announcement euro adhoc 31.10.2007 07:00:00
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emitter: Valora Holding AG
Belpstrasse 37
CH-3007 Bern
phone: +41 58 789 11 11
FAX: +41 58 789 11 12
mail: [email protected]
WWW: www.valora.com
sector: Retail
ISIN: CH0002088976
indexes:
stockmarkets: official market: SWX Swiss Exchange, official dealing: BX Berne
eXchange
language: English

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