euro adhoc: conwert Immobilien Invest SE / other / conwert implements measures to optimise costs and increase efficiency (E)

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23.02.2009

conwert implements measures to optimise costs and increase efficiency

Vienna, 23.02.2009. conwert Immobilien Invest SE (Vienna Stock Exchange: CWI,
Reuters: CONW.VI, Bloomberg: CWI AV) is implementing a comprehensive programme
to optimise costs and increase efficiency. The company will reduce general
administration expenses by approx. 10-15%. At the same time, the capacities in
the property sales and property management segments will be reorganised and
strengthened in order to take optimal advantage of existing growth
opportunities. As a result, total costs are to be reduced to 11-12% of revenues
in 2009, following approx. 14% in the financial year 2008.
"With these measures we are reacting to the changed framework conditions in the
property markets and strengthening the internal financing power of conwert while
at the same time benefiting from the growth opportunities in the service
business", explains Johann Kowar, Chairman of the Executive Board of conwert.
"We will optimise our cost structure to ensure growing cash earnings in the
future with purely organic growth."

+ Savings in administration and subsidiaries
Core elements of the measures to optimise costs and increase efficiency are the
reduction of general administration expenses, the merging and reorganisation of
business units and locations, as well as using growth opportunities and synergy
effects in the service business.
The general administration expenses will decline by approx. 10-15% in 2009 by
cutting personnel and material costs and a significant reduction in external
costs. In addition, business activities in Austria will be consolidated from
three locations to the headquarters in Vienna.
Further cost savings will be achieved by optimising the personnel and business
structures at the subsidiaries. In Hungary for instance, no new development
projects will be implemented, existing condominiums will be sold off, and staff
in Budapest will be reduced to a minimum from currently 16 employees. In
Germany, individual apartment privatisation locations will be closed and the
mandates of institutional investors will be concentrated. The number of
employees in property acquisition will be reduced due to the market situation
and the property research segment will be merged into existing business units.
The reduction of staff in general administration and at subsidiaries will affect
some 50 of the 530 employees. The cost saving measures will already show a
positive effect on the earnings development in the year 2009.

+ Investments in the growth segments sales and property management
In order to take advantage of the opportunities in the property sales and
property management segments even better, activities will be stepped up. "Our
customers in the service segment are not affected by the saving measures. On the
contrary: we will increase capacity there in order to win new mandates", says
Johann Kowar.
Transferring conwert properties which have so far been externally managed to our
own property management also saves external costs and entails substantially
lower personnel and material costs. Some 11,000 residential units have so far
been taken over; another 2,500 units are to follow in 2009. Moreover, sales
activities will be stepped up in both Germany and Austria.
Overall about 30 jobs will be created in the growth segments of conwert.

+ Merging asset management and property management
To ensure more efficient management of the property portfolio, asset management
and property management will be merged. Johann Kowar: "The active management of
our own properties is a key to success - the new structure will allow increased
efficiency by even more closely coordinated procedures and even better offers to
our customers."

+ Stronger orientation to sales implemented in organisation
The strategic focus will in the future be placed on expanding the service
business, selling properties and organic rental income increases. This stronger
focus on sales has also led to a reorganisation of the Executive Board of
conwert. With Thomas Rohr, who joins the Executive Board of as a new member, and
Board member Jürgen F. Kelber, two managers who have already been responsible
for sales will take over responsibility for the entire business in Austria and
Germany. Their responsibilities comprise all business activities in these two
core markets of conwert. Thomas Rohr (44) was previously a Board member of
conwert´s RESAG Group and managed the brokerage firm RESAG Immobilienmakler
GmbH. In the Executive Board he will be responsible for the region Austria,
Jürgen F. Kelber for the region Germany.
Walter Leitner, Andreas Nittel and Alexander Zartl will leave the Executive
Board and assume management positions. Walter Leitner will manage asset &
property management in Germany, which pertains to the segment Germany. Andreas
Nittel will be the head of asset & property management in Austria, which belongs
to the segment Austria. Alexander Zartl will manage the segment Temporary
Housing.
The Executive Board of conwert thus consists of Johann Kowar (CEO), Thomas Rohr
(segment Austria), Jürgen F. Kelber (segment Germany), Claudia Badstöber
(Accounting) and Wolfgang Tutsch (Legal Matters and Organisation).

Further inquiry note:
conwert Immobilien Invest SE, Peter Sidlo, Head of Corporate Communications -
Investor Relations, T +43 / 1 / 521 45-250, E [email protected]

Hochegger|Financials, Roland Mayrl, T +43 / 1 / 504 69 87-31,
E [email protected]

end of announcement euro adhoc
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emitter: conwert Immobilien Invest SE
Albertgasse 35
A-1080 Wien
phone: 52145-0
FAX: 52145-111
mail: [email protected]
WWW: http://www.conwert.at
sector: Real Estate
ISIN: AT0000697750
indexes: WBI
stockmarkets: official dealing: Wiener Börse AG
language: English

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