EANS-Adhoc: gategroup Reports Solid 2011 First Half Results

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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
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announcement.
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6-month report

11.08.2011

Stable revenue and EBITDA despite difficult global environment -- Net
income, operating profit improve - Business performs in line with
expectations -- Full-year targets confirmed

ZURICH, Aug. 11, 2011 --

- gategroup reported solid first half 2011 results in the face
of continuing global economic uncertainty

- Revenue of CHF 1,318.7 million, up 0.1% reported, up 14.0%
in constant currencies

- EBITDA of CHF 88.4 million, down 4.7% reported, up 9.7% in
constant currencies

- EBITDA margin of 6.7%, down 0.3 percentage point reported,
down 0.2 percentage point in constant currencies

- Operating profit of CHF 49.1 million, up 24.3% reported, up
44.6% in constant currencies

- Profit for the period of CHF 20.1 million, up 116.1%

- Balance sheet strengthened by capital increase in 2010
second half; net debt reduced by CHF 271.1 million to CHF 157.1
million compared to June 2010, a decrease of 63.3%

- Successful mitigation of raw material cost increases;
recovery from Japan crisis; continued recovery of assets from
isolated fraud event

- Andrew Gibson named Chief Executive Officer

end of ad-hoc-announcement

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=========== gategroup, the leading independent global provider of
onboard products, services and solutions, reported gains in
profitability measures for the first six months of 2011 on stable
revenue despite global economic challenges.

gategroup has seen year-over-year growth for the airline industry,
its largest customer base, despite concerns that emerged earlier in
the year. These included a sharp spike in oil prices; the triple
earthquake/tsunami/nuclear disasters in Japan; smaller natural
disasters in Australia and New Zealand; civil uprisings in the Middle
East and flight disruptions due to volcanic activity in Europe and
South America.

"gategroup continues to deliver to expectations despite these
challenging, but transient, conditions," said Chief Executive Officer
Andrew Gibson, who was named to the position on July 28 after serving
in an interim capacity since April. "Historically our business is
stronger in the second half, and we are optimistic the effects we
have seen in the first half will be further mitigated as the year
unfolds."

The CHF 20.1 million reported profit for the period was up 116.1%
over last year's CHF 9.3 million. The earnings came on revenue of CHF
1,318.7 million, which was up slightly on a reported basis. However,
adjusting for foreign exchange differences against the Swiss Franc,
gategroup's reporting currency, revenue was CHF 1,501.8 million, a
strong increase of 14.0%.

Operating profit, meanwhile, was CHF 49.1 million, a 44.6% gain when
adjusted for currency fluctuations. Earnings before interest, taxes,
depreciation and amortization (EBITDA) were CHF 88.4 million, up 9.7%
in constant currencies, resulting in an EBITDA margin of 6.7% on a
reported basis and 6.8% in constant currencies. The change in margin
is less than a percentage point lower on both a reported and constant
currency basis compared to 2010's margin of 7.0%.

Chief Financial Officer Thomas Bucher said operating profit was
positively impacted in 2011 by a reduction in share-based payments
compared to 2010. EBITDA, meanwhile, was negatively affected by
several factors, he added. These included the disruptions in Japan
and higher raw material costs.

The acquisitions in Canada and India are important additions to
gategroup's geographic portfolio. Their integration is progressing
and they continue to be within the Group's target margins within 24
months.

gategroup's commercial approach of building strong long-term
relationships as a strategic partner; a focus on key customers; and
cross selling the comprehensive products and services of the
company's 11 brands continues to bear fruit.

This is evidenced by a first half retention rate for existing
business of 87%, which includes agreements with Iberia, Scandinavian
Airlines (SAS), Jetstar domestic and United Airlines in Sydney. The
success rate of winning new business was 33%. This included adding
Delta Air Lines as the fourth customer of the new Gate Gourmet unit
at Tokyo Haneda and a system-wide agreement to manage Brazil low-cost
carrier GOL's onboard retail program.

In February, gategroup self disclosed a fraud event involving a
Danish subsidiary that amounted to approximately DKK 138 million, or
approximately CHF 27 million based on historical exchange rates
applicable at the time the fraud occurred (approximately CHF 22
million at year-end 2010 exchange rates). An investigation by
independent external forensic accounting experts concluded that the
fraud was an isolated case. The event resulted in a restatement of
financial results for prior periods. In the meantime, efforts to
recover assets continues.

As a reflection of gategroup's solid economic performance in the
beginning of 2011, Standard & Poor's upgraded its rating to BB- and
stable outlook.

"gategroup continues to demonstrate its ability to manage a difficult
environment with its resilient business model," Gibson said. "Looking
ahead to the second half of the year, we remain cautiously
optimistic."

Barring any unforeseen events, gategroup targets full-year revenue in
2011 of approximately CHF 3.0 billion on a 2010 constant currency
basis. Actual reported results will be dependent on, amongst other
things, the development of the foreign exchange environment. "Given
these first half results combined with the expected market
developments in the second half of the year, our target remains
unchanged for an EBITDA margin of 8.0-8.5%, with our expectation for
the margin remaining at the lower end of that range," Gibson said.

For more detailed information, please see gategroup's Half Year
Report 2011, which can be found on line at the following link: http:/
/www.gategroupmember.com/index.php?option=com_content&view=article&id
=455&Itemid=228

About gategroup:

gategroup is the leading independent global provider of onboard
products, services and solutions to companies that serve people on
the move. gategroup comprises 11 member brands, which are deSter,
eGate Solutions, Elan, Gate Aviation, Gate Gourmet, Gate Safe,
Harmony, Performa, potmstudios, Pourshins and Supplair.

The Group's world-class capabilities are focused in catering and
hospitality; provisioning and logistics; and onboard solutions. Our
customers include top airlines and railroads around the world that
rely on our expertise and solutions tailored to their guests, service
offerings and geographic regions.

Shares of Zurich-based gategroup are traded on the SIX Swiss Exchange
under the symbol GATE. Please visit http://www.gategroup.com.

Financial overview
period ended June 30, 2011
in CHF m except per share data

Period ended Period ended
June 30, 2011 June 30, 2010
Restated
Income Statement

Revenue 1,318.7 1,317.2
EBITDA 88.4 92.8
EBITDA margin in % 6.7% 7.0%
Operating profit 49.1 39.5
Operating profit margin in % 3.7% 3.0%
Profit before tax 28.6 13.5
Profit for the period 20.1 9.3

Basic earnings per share in CHF 0.68 0.47
Diluted earnings per share in CHF 0.68 0.44

June 30, 2011 June 30, 2010
Restated
Balance Sheet

Current assets 864.4 644.2
Non-current assets 834.1 847.8
Total assets 1,698.5 1,492.0
Current liabilities 546.8 538.1
Non-current liabilities 712.3 807.8
Total liabilities 1,259.1 1,345.9
Total Equity 439.4 146.1
Short-term debt 27.6 18.7
Long-term debt 528.6 612.6
Cash and cash equivalents 399.1 203.1
Net debt 157.1 428.2

Period ended Period ended
June 30, 2011 June 30, 2010
Restated
Cash Flow

Profit before tax 28.6 13.5
Cash generated from operations 4.0 39.2
Interest, net (11.0) (14.4)
Income taxes paid, net (11.3) (7.7)
Net cash flow (used in) / from operating
activities (18.3) 17.1
Capital expenditure (23.9) (26.3)
Other 4.1 (3.3)
Cash flow (used in)investing activities (19.8) (29.6)
Cash flow (used in) financing activities (13.7) (32.7)
Decrease in cash and cash equivalents (51.8) (45.2)

IMPORTANT NOTICE

This publication may contain specific forward-looking statements,
e.g., statements including terms like "believe", "assume", "expect"
or similar expressions. Such forward-looking statements are subject
to known and unknown risks, uncertainties and other factors which may
result in a substantial divergence between the actual results,
financial situation, development or performance of the company and
those explicitly or implicitly presumed in these statements. Against
the background of these uncertainties readers should not rely on
forward-looking statements. The company assumes no responsibility to
update or revise any of these forward-looking statements or to adapt
them whether to reflect new information, future events, developments
or circumstances or otherwise.

INVITATION TO MEDIA

gategroup CEO Andrew Gibson and CFO Thomas Bucher invite media
representatives to participate in a telephone conference call
regarding First Half 2011 Results.

The call will be held at 09:00-09:45 CET on Thursday, Aug. 11, 2011.

To participate, please call the dial-in number approximately 15
minutes before the start time. Once dialed in, please follow the
instructions given over the phone.

Direct dial-in numbers:

+41 (0) 91 610 56 00 (Europe)
+44 (0) 203 059 58 62 (UK)
+1 866 291 4166 (USA - Toll-Free)
+49 (0) 69 2 22 22 05 93 (Germany)

INVITATION TO ANALYSTS AND INVESTORS

gategroup CEO Andrew Gibson and CFO Thomas Bucher invite analysts and
investors to participate in a telephone conference call regarding
First Half 2011 Results.

The presentation can be accessed via webcast and dial-in
teleconference at 13:30 CET on Thursday, Aug. 11, 2011.

To listen to the live presentation via teleconference, call the
dial-in number approximately 15 minutes before the start time. Once
dialed in, please follow the instructions given over the phone.

Direct dial-in numbers:

+41 (0)91 610 56 00 (Europe)
+44 (0) 203 059 58 62 (UK)
+1 866 291 41 66 (USA - Toll-Free)
+49 (0)69 2 22 22 05 93 (Germany)

Please note that this Q&A session is for analysts and investors only.

Further inquiry note:
For media: John Bronson, Corporate Communications, jbronson@gategroup.com, +41
43 812 2048 or Carol Reed, Corporate Communications, creed@gategroup.com, +41 43
812 9128; For investors/analysts: Dagmara Wawrzonowska, Investor Relations,
invest@gategroup.com, +41 43 812 5496

end of announcement euro adhoc
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issuer: gategroup Holding AG
Balz-Zimmermannstrasse 7
CH-8302 Kloten
phone: +41 43 812 54 96
FAX: +41 43 812 91 19
mail: invest@gategroup.com
WWW: http://www.gategroupmember.com/
sector: Consumer Goods
ISIN: CH0100185955
indexes:
stockmarkets: Hauptsegment: SIX Swiss Exchange
language: English