Media information 2008

Steinhausen, November 18, 2008 – In the first semester of the current financial year ended September 30, 2008, the Zug-based electronics group maintained a satisfactory economic performance. Operating revenue inched down from CHF 111.3 million to CHF 109.5 million, while EBIT decreased from CHF 10.3 million to CHF 9.6 million. Net income declined from CHF 7.6 million to CHF 7.3 million. Both EBIT and net income were negatively affected by non-recurring expenses of CHF 1.0 million for consultancy services and, net of these, a slight improvement over the same period of the previous year was recorded. While the gross profit margin remained stable at 47.8% of revenue, operating expenses decreased to 37.9% of revenue (38.4%). At September 30, 2008, equity was CHF 109.0 million (CHF 107.9 million at March 31, 2008) and the net financial position of the group amounted to CHF 22.5 million (CHF 21.1 million at March 31, 2008).

The second half of the financial year is difficult to predict. Because of the global financial turmoil and the ensuing fall in economic activity, the group expects a decline in demand and is likely to present lower figures than in the previous year. However, because of its strong cash position, the turnaround accomplished in Computing Solutions and the independence of Automation Components from the automotive industry and large industrial investment decisions, the Carlo Gavazzi Group believes itself to be more resilient than most competitors to the negative effects of the present economic downturn.

As communicated earlier, Dino Masili, CEO of the Automation Components Business Unit, has left the group. With immediate effect, Alessandro Berlingieri, member of the board of directors of Carlo Gavazzi Holding AG, will assume the position as acting CEO of this business unit.

Please click on the link below to access the full 2008 Interim Report of the Carlo Gavazzi Group. http://www.carlogavazzi.com/en/investors/interim-report.html

Steinhausen, July 24, 2008 – The board of directors of Carlo Gavazzi Holding AG will today propose to the general shareholders’ meeting to elect as a new board member Mr Stefano Premoli Trovati.

Mr Premoli Trovati (37), Italian national, graduated in economics in Milan and has a postgraduate degree in tax law. Since 1998 he holds the position of tax advisor in a renowned law-firm and acts as a statutory auditor in various Italian industrial and financial companies.

Steinhausen, July 17, 2008 – After 24 years of successful service for the Carlo Gavazzi Group, the last 11 years as CEO of the Automation Components Business Unit, Dino Masili (61) has decided not to renew his contract and to therefore leave his current position effective October 31, 2008.

Dino Masili has been the architect of the successful repositioning and the positive development of the Automation Components Business Unit during his tenure. In the last financial year ended March 31, 2008, his unit achieved record results and the development in the first three months of the current financial year has also been positive notwithstanding the weakening economic situation in most of the markets served by the business unit.

The Board of Directors of Carlo Gavazzi Holding AG thanks Dino Masili for his outstanding contribution to the group and wishes him continued success in the future.

Until a new CEO assumes full responsibility, the Chairman of Carlo Gavazzi Holding AG, Dr. Giulio Pampuro, will head the business unit on an ad interim basis.

Steinhausen, June 24, 2008 – In the financial year ended March 31, 2008, Carlo Gavazzi, the Zug-based electronics group, improved its economic performance for the fifth consecutive year. While operating revenue increased by 3.6% from CHF 215.7 million to CHF 223.4 million, EBIT rose by 32% from CHF 20.2 million to CHF 26.7 million and reached 12% of revenue, well ahead of the 10% target set for 2009/10. Net income rose by 46.1% to CHF 16.8 million (CHF 11.5 million), representing a return on equity of 15.6% (11.7%).

In order to lay the foundations for sustained long-term growth, the group intends to increase its presence in geographical areas with fast-growing potential. It has also decided to increase R&D spending in order to provide the priority market segments with an enhanced product portfolio. As a consequence of these actions and barring unforeseen events, the group expects to keep growing its revenue and maintain satisfactory profitability levels.

As a result of efficiency improvements and economy-of-scale effects, gross profit margin increased from 46.7% to 49.0%. Although negatively affected by an exchange loss of CHF 2.3 million (CHF 0.5 million), earnings before taxes improved by 24.3%. Shareholders’ equity at March 31, 2008 amounted to CHF 107.9 million or 63% of total assets. The group turned net cash positive during the year to reach CHF 21.1 million (net interest-bearing debt of CHF 7.2 million). As the group has recorded a strong operational performance and has a sound financial position, the board of directors will propose to the annual shareholders’ meeting the payment of an increased dividend of CHF 10 (CHF 7) per bearer share, corresponding to a payout ratio of 42% of earnings (43%).

Automation Components – EBIT reached 13.4% of operating revenue
The business unit recorded a revenue increase of 5.4% (currency neutral 3.4%). While sales in Europe attained an increase of 5% and a revenue growth in excess of 30% in South-East-Asia, Automation Components experienced a slight slowdown in North America. In its priority market segments, the unit increased sales over 10% on average. Innovative products launched during the reporting period led to significant growth rates of more than 16% in both the doors and entrance control and the lift and escalator markets, only exceeded by the growth rate in the renewable energy market where revenue grew by more than 50%.

Computing Solutions – back to profitability
The business unit made a major step forward in its performance. Thanks to many new projects acquired, bookings in local currency increased by 14% and backlog at the end of the reporting period improved by USD 5 million or 56% compared with the previous period.

Although revenue stabilised at the previous year’s level, EBIT rose by USD 0.8 million thanks to the improved margin and cost savings. The dependency on the slow-growing telecom infrastructure market was further reduced and the strategy to focus on the industrial market was honoured by important orders from major players such as a world leader in the printing field.

Key figures group (CHF million)

Income statement	2007/08	2006/07	%
Bookings	228.2	221.6	+ 3.0
Operating revenue	223.4	215.7	+ 3.6
EBIT	26.7	20.2	+ 32.2
EBIT margin	11.9 %	9.4 %	-
Net income	16.8	11.5	+ 46.1
Cash flow	23.6	18.8	+ 25.5
Employees	1204	1192	+ 0.1

Balance sheets (as of March 31)	2008	2007	%
Net working capital	47.3	58.7	- 19.4
Shareholders' equity	107.9	98.9	+ 9.1
Total assets	171.1	182.2	- 6.1
Equity in percent of assets	63.1	54.3	-

Key figures business units (CHF million)

	2007/08	2006/07	%
Bookings
Automation Components	195.7	191.3	+ 2.3
Computing Solutions	32.5	30.3	+ 7.3
Operating revenue
Automation Components	196.6	186.6	+ 5.4
Computing Solutions	26.8	29.1	- 7.9
EBIT
Automation Components	26.3	22.0	+ 19.5
Computing Solutions	0.3	- 0.8	-