2009 Mid-year report: Significantly improved operating performance

Corporate news announcement processed and transmitted by Hugin AS.
The issuer is solely responsible for the content of this 
announcement. 
----------------------------------------------------------------------
--------------    
The Jelmoli Group improved operating cash flow (EBITDA) significantly
in the first half-year 2009, thanks above all to the full integration
of Tivona. This was attributable in particular to the steep rise in
rental income. Investment property revaluation gains were lower than
the high mid-2008 level. The Tivona
integration proceeded according to plan. Retail trade turnover at the
House of Brands maintained a good level despite demanding market
conditions.
 
Group key figures (consolidated, unaudited)*
 
         First half-year (in million CHF)           2009  2008 Change
EBITDA earnings before depreciation, revaluation    75.4  61.8  22.0%
and exceptional items
Operating income EBIT                              164.4 161.8   1.6%
Financial income                                   -29.5 -17.6 -65.3%
Earnings before tax                                135.3 144.2  -6.2%
Operating income from                              113.8 112.3   1.3%
continued operations
Net income                                         118.3 122.6  -3.5%
 
* The consolidated interim financial information have been reviewed
(see KPMG report on page 30)
After successful implementation of the strategic plan, this interim
report refl ects Jelmoli for the fi rst time purely as a Swiss real
estate group focusing on retail trade. The integration of Tivona AG,
taken over in full per end of February 2009, is proceeding according
to plan. The Tivona AG employees have been assimilated by Jelmoli,
and the Tivona properties administratively integrated, with promising
input thereby of real estate project development competence as well
as of high-quality properties. The Athris Holding AG divisions spun
off per end of March 2009 in connection with the new strategy
implementation are included in the accounts as discontinued
operations.
 
Real estate rental income for the fi rst six months of 2009 rose
signifi cantly by CHF 15.6 million to CHF 96.5 million in total,
exceeding the prior year level by 19.3 %. The market value of
investment properties was independently reassessed per June 30, 2009,
resulting in corporate revaluation gains of CHF 46.5 million (prior
year CHF 106.5 million). However, around 50 % of these revaluations
gains come from an amended accounting standard.
 
Real estate rental income for the fi rst six months of 2009 rose
signifi cantly by CHF 15.6 million to CHF 96.5 million in total,
exceeding the prior year level by 19.3 %. The market value of
investment properties was independently reassessed per June 30, 2009,
resulting in corporate revaluation gains of CHF 46.5 million (prior
year CHF 106.5 million). However, around 50 % of these revaluations
gains come from an amended accounting standard.
 
Net financial costs increased to CHF - 29.5 million (prior year CHF -
12.1 million). The rise in net interest charges is mainly
attributable to increased debt in connection with the Tivona
acquisition and to reduction of the very high liquidity maintained in
preparation for the strategic split in spring 2009.
 
Total income rose by 9.9 % to CHF 183.6 million. Despite signifi
cantly lower real estate portfolio revaluation gains, the net income
of continued operations matched the prior level at CHF 113.8 million.
This includes CHF 47.4 million pro rata earnings of the associate
company Tivona. Net asset value of the Jelmoli registered share
taking account of full market value, i. e. without correction for
self-utilized real estate, is CHF 431. Since the strategic
realignment and share unification per end of March 2009, trading
price of the Jelmoli registered share rose by 20 % to CHF 394 as per
June 30, 2009. On June 23, 2009 Jelmoli paid out a dividend of CHF 10
per share, equivalent to a 2.5 % return.
 
Outlook for the year
On September 24, 2009 the Stücki Shopping Center in Basle will be
opened after successful completion of development work. This will
further enhance rental income in future. A positive outcome for the
rest of the real estate business is also expected for the second half
of 2009.
 
The retail trade turnover is expected to decline slightly, mainly
because of ongoing renovations at the Jelmoli House of Brands
department store. We cannot yet estimate how economy developments
will affect business, in particular during the important festive
season.
 
On July 29, 2009 Swiss Prime Site AG launched its bid for Jelmoli
shares within the framework of the public exchange offer. Further
details on this takeover bid are available from Swiss Prime Site AG
or on the homepages www.jelmoliholding.ch or www.swiss-prime-site.ch.
 
Jelmoli Holding AG
 
August 26, 2009
 
Christopher Chambers, Chairman of the Board
Michael Müller, CEO and Delegate of the Board
 
Real estate
 
19.3 % rise in rental income
In the real estate segment, rental income for the period under review
rose by 19.3 % to CHF 96.5 million. Rental income fi gures include
for the Tivona properties as of full integration per end of February
2009. During the period under review the St. Gall Shopping Arena,
opened in March 2008, and Thônex (Geneva) district shopping center,
opened in September 2008, contributed full rental incomes for the fi
rst time. Adjusted for these expansion effects, the comparable rise
in rental income over prior year is 1.8 %. Vacant fl oor areas
remained at a consistently low level of 3.2 %. As before, 5 % of
total rental income is attributable to turnover-linked rentals.
 
Real Estate key figures
 
            Real Estate                         Change fr. prior year
            CHF million              2009  2008  effective comparable
Rental income total (including own   96.5  80.9      19.3%       1.8%
rentals)
Rental income external               79.1  64.2      23.3%       1.0%
Number of employees                   111   102       8.9%
EBITDA operating result              80.6  62.5      29.0%
Depreciations                        -0.7  -0.8      12.5%
Property revaluation gains           59.7 108.3     -44.9%
EBIT earnings after depreciations   139.6 170.0     -17.9%
 
Value appreciation thanks to property development competence
On September 24, 2009 the Stücki Shopping Center in Basle will be
opened after extensive developments costing about CHF 270 million.
The 32 000 m2 of sales fl oor area thus created are expected to bring
annual turnover totalling around CHF 300 million. The development
gain on this investment was accounting-wise largely taken into
account with the Tivona acquisition per end of February 2009.
 
Reconstruction work currently underway at the Jelmoli House of Brands
department store in Zurich will bring signifi cant quality
appreciation on the property. By enhancing the productivity of sales
fl oor areas and brand shops, this successful development will
increase rental income. Development gains of CHF 26 million are
included in the mid-year accounts accordingly.
The higher revaluation gains during the fi rst half of 2008 were
largely attributable to the St. Gall Shopping Arena opening.
 
Greater effi ciency thanks to integrated organization
For better integration of business and management processes, the
management team has been expanded. Apart from the CEO, the CFO and
the Secretary General, it now includes the heads of real estate in
German and French speaking Switzerland, project development,
administration, IT, and the Jelmoli House of Brands department store
in Zurich. This interdisciplinary management team structure will
enhance the effi ciency of Jelmoli investment property administration
and project development.
 
Integration of Tivona proceeding according to plan
The employees of Tivona AG, taken over in full per end of February
2009, have been assimilated by Jelmoli and signifi cantly strengthen
the project development competence, also in the extended management
team.
The Tivona properties have been integrated in the Jelmoli real estate
portfolio both with regard to management and administration.
 
Portfolio key figures
              CHF million                06/2009 12/2008
Investment property (IAS 40, fair value) 4'201.4 3'197.1
Number of properties                         133      99
Vacant fl oor areas                        3.2 %    2.6%
Real estate income                         247.4   182.7
Gross earnings 1                            6.1%    5.9%
Net earnings 2                              4.6%    4.6%
Discount rate (nominal; average) 3          6.0%    5.8%
 
1 Real estate income / tied capital 4
2 Net real estate earnings / tied capital
3 Average discount rate for real estate portfolio (assumed inflation
1.2 %)4
4 Tied capital = (market value in prior year + 0.5 * net investment -
0.5 * net earnings)
+ (1 - transaction month / 12) * gross purchase price of property
- (1 - transaction month / 12) * market price of property in prior
year
 
Outlook for the year
Completion and opening of the Stücki Shopping Center in Basle will
bring additional rental income during the second half-year. Good
results in general are expected for 2009 as a whole.
 
Retail Trade
 
Retail Trade stability despite demanding market conditions
Retail Trade segment turnover as a whole declined by 5.1 % to CHF
80.8 million. Despite demanding market conditions, turnover at the
Jelmoli House of Brands store in Zurich remained gratifying stable in
the fi rst half of 2009, with gross turnover of CHF 76.1 million only
4.8 % less than the good level of prior year. Liquidation of the
household goods department in favor of more attractive sales fl oor
areas made a notable contribution to turnover.
Over turnover at the Jelmoli House of Brands store in Zurich,
including that of external tenants, was likewise about 5 % lower at
CHF 153 million than the very high prior-year level.
 
Zurich House of higher-end Brands - thanks to store renovations
The 2010 renovation project is proceeding according to plan.
Structural improvements currently underway in the escalators,
light-well and pillar areas, together with new shop buildings and
more attractive corridors, will result in a completely new kind of
shopping experience.
This has already led to the acquisition of several new high-end
brands in ladies' and gentlemen's fashion and accessories/ handbags.
The redesigned New Wave takeaway has already been opened in its new
basement location. By combining the Gourmet Factory with an
international array of food providers, a spacious new gourmet world
for connoisseurs has been created. The attractively restyled Lingerie
and Interior Design sales fl oors on the third fl oor will be opened
in November 2009. Full opening of the entire rebuild is scheduled for
autumn 2010.
 
Turnover and productivity
 
          Jelmoli Zurich                       Change from prior year
           CHF million              2009  2008  effective  comparable
Turnover (gross)                    76.1  79.9      -4.8%       -5.4%
Number of employees                  470   469
Sales floor area in 1 000 m2*       13.9  13.2
Entire store (incl. tenants):
Turnover (gross)                   152.9 161.7
Sales floor area (net) entire       25.8  25.1
store in 1 000 m2*
 
* not including corridors
 
Jelmoli Bonus Card AG: higher operating income
Net earnings by Jelmoli Bonus Card AG for the fi rst half of 2009
rose steeply compared with prior year. Credit card debt losses
remained at the very low level of prior year. Turnover in connection
with the Swiss Rail half-fare season card / Visa card combination
offer improved thanks to greater marketing efforts.
 
Outlook for the year
The infl uence of economy developments on retail trade business
during the second half of 2009 cannot yet be estimated. 1500 to 3500
m2 of sales fl oor area will be closed at the Jelmoli House of Brands
store until the completion of renovation/ conversion work. The cost
reduction measures there are already taking effect. Furthermore,
preparations are in place for the fi rst Yuletide Market to be held
at the House of Brands - a unique festive Season experience not to be
missed, despite the ongoing renovations.
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
- Property Details
- Information on the SPS Takeover BID
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
            Markus Meier, CFO
            Phone +41 (0)44 220 47 80, Fax +41 (0)44 220 40 10
Internet:   www.jelmoliholding.ch / www.huginonline.ch/JEL
WAP-mobile: wap.huginonline.com (Press Releases Jelmoli)
E-mail:     info@jelmoliholding.ch
 
--- End of Message ---
 
Jelmoli
-----------------------------------------
Jelmoli über 
WAP:
 
wap.huginonline.com
-----------------------------------------  
 
St. Annagasse 18 Zürich 
 
WKN: 851225; ISIN: CH0000668464; Index: SMCI, SPI, SPIEX;
Listed: 
Main Market in SIX Swiss Exchange;