EANS-Adhoc: gategroup Delivers Good Growth in Challenging Market Environment

--------------------------------------------------------------------------------
ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
--------------------------------------------------------------------------------

6-month report

23.08.2012

-- Global businesses perform well, European markets challenging --
Revenue HY1 up 7.2% to CHF 1,413.9 million -- EBITDA margin 5.6%
compared to 6.7% in previous year -- Refinancing of the Group
successfully completed, providing stable balance sheet structure
-- Bolt-on acquisition strategy proceeding well

gategroup reports for the first half of 2012 revenues of CHF 1,413.9
million which is an increase of 7.2% against previous year (CHF
1,318.7 million). The EBITDA margin in the first half of 2012 was
5.6% compared to 6.7% in the first half of 2011. Net income for the
period was CHF 4.7 million compared to CHF 20.3 million in the
previous year, driven also by one-off costs from the refinancing and
higher taxes. Cash flow from operations doubled in comparison to the
previous year and reached CHF 8.4 million, (CHF 4.0 million). The
Product and Supply Chain Solutions business performed well in terms
of growth and earnings, as did the Airline Solutions business in
America and the Emerging Markets. The profitability of the Airline
Solutions business in Europe was weaker than last year as market
conditions got more difficult. gategroup is responding to the
challenging market environment in Europe with a number of initiatives
which are expected to have a positive impact on margins as from 2013.
Investments in future growth, such as IT infrastructure and one-off
costs for acquisition and development activities have further
impacted the EBITDA margin. The integration of the Helios acquisition
is proceeding well, and the bolt-on acquisition strategy is
progressing positively.

In the first half of 2012 it generated total revenues of CHF 1,419.4
million, at constant currency, representing a sizeable growth of
7.6%. Currency exchange effects reduced this result by CHF 5.5
million, or 0.4%, to CHF 1,413.9 million on a reported basis which
results in a growth rate of 7.2%. This growth was primarily driven by
a revenue expansion of some 20% in the Emerging Markets (including
the recovery in Japan), and the contribution from recent acquisitions
(Helios).

gategroup achieved an EBITDA of CHF 78.5 million (5.6% EBITDA margin)
in the first half of 2012 compared to CHF 88.4 million (6.7% EBITDA
margin) in the first half of the previous year. The positive margin
development of the global business portfolio and the higher
contribution of the Emerging Markets Division to EBITDA was offset by
weakness in the European Airlines Solutions business. Although
revenues in Europe remained relatively flat, profitability was
impacted by the loss of some higher margin businesses which was only
partially offset by new business wins, where associated start-up
costs were also incurred. Additionally, cost pressure on European
carriers is driving a shift in the short haul business concepts for
certain customers. To address these issues gategroup is already
progressing a comprehensive set of initiatives. These include
overhead cost savings, the exiting of lower margin business and the
right-sizing of certain locations to address changes in the short
haul business. These initiatives will continue for the remainder of
the year and are expected to have a positive impact in 2013.

end of ad-hoc-announcement ==========================================
====================================== gategroup also expects to see
the benefit of new business started in the first half of the year to
have a positive impact going forward, notably the new business for
Virgin Atlantic in the UK and the expansion of the Virgin Australia
business in Australia.

Higher costs were incurred at the corporate level to advance the
growth strategy, particularly investments in the IT infrastructure as
well as costs for the execution of M&A and corporate development
activities.

The profit for the reporting period was CHF 4.7 million, down from
CHF 20.3 million in the same period in the previous year, reflecting
higher interest expenses and one-off costs from the refinancing of
the Group. Further, gategroup incurred higher relative tax expenses
in first half of 2012.

Cash flow from operations in HY1 2012, meanwhile, was CHF 8.4
million, up from CHF 4.0 million in the equivalent period of the
previous year. The rise was mainly due to further improvements in the
management of working capital and lower cash requirements for
provisions and retirement benefit obligations.

gategroup's balance sheet as per June 30, 2012 shows equity of CHF
469.2 million (CHF 415.9 million as at June 30, 2011). The Group's
refinancing was completed during the first half of 2012. This
involved repaying debt and cancelling all outstanding commitments by
issuing 7 year unsecured notes worth EUR 350 million at a fixed
coupon of 6.75%. A new multi-currency revolving credit facility of
EUR 100 million has also been established. Net debt as per June 30,
2012 was at CHF 244.7 million (an increase of CHF 87.6 million from
the previous year).

After the realignment of its extensive global services and product
lines into two major businesses at the beginning of the current
fiscal year, both Airline Solutions and Product and Supply Chain
Solutions are performing well with the exception of the Airline
Solutions businesses in Europe. The Airline Solutions business
includes food production; pre-departure loading and post-arrival
unloading; a comprehensive onboard retail programs; aircraft cabin
appearance services; airline lounge catering, business technology
applications; and security services for catering and cargo. All this
accounts for around 80% of the Group's revenues. The Airline
Solutions businesses' revenues increased by 6.3%, from CHF 1,148.9
million to CHF 1,221.8 million. At constant exchange rates the
Airline Solutions business achieved a turnover of CHF 1,224.1
million, which represents a gain of 6.5% over the same period last
year. The reduction in EBITDA from CHF 79.2 million (6.9% of
revenues) in HY1 2011 to CHF 71.8 million (5.9% of revenues) in HY1
2012 was mainly caused by the above-mentioned weakness in Europe.

The Product and Supply Chain Solutions business provides global
procurement and supply chain solutions; design and branding services;
off-airport food and beverage sourcing, assembly and packing
services; contact items and onboard products as well as passenger
comfort items. Revenues increased by 15.3% from CHF 233.7 million to
CHF 269.4 million. At constant exchange rates the Product and Supply
Chain Solutions achieved a turnover of CHF 272.8 million, or +16.7%.
It reported an increase in EBITDA from CHF 14.9 million (6.4% of
revenues) in HY1 2011 to CHF 18.2 million (6.8% of revenues) in HY1
2012.

gategroup bought the outstanding 26% of Sky Gourmet in India in
February and announced that this company, together with Travel Food
Services, a leading Indian provider of travel food and beverages, was
finalizing a strategic partnership to manage retail-on-board
services. Since then, a joint venture has been created.

deSter Holding BV, a subsidiary of gategroup, acquired Helios Market,
Product and Production Development BV, an innovative and respected
global provider of onboard products and services for the airline,
rail and hospitality industries on March 16, 2012. The addition of
Helios expands the ability of the combined companies to bring
innovative approaches to customers and new geographies and will
provide synergies in marketing, manufacturing and supply chain
solutions. This transaction has added some CHF 22 million to revenue
in HY1 2012.

gategroup has also recently announced its intent to acquire two
flight kitchens owned by Qantas Catering Group and operated by Q
Catering in Australia. The Q Catering businesses involved are its
Riverside facility in Sydney and its Cairns operation in Queensland.
Following completion of the transaction, annual revenue from the
assets to be acquired is expected to be approximately CHF 50 million.
gategroup expects the acquisition to be accretive within an 18- to
24-month window as a result of operational synergies, process
improvements and effective management of commercial relationships.
The transaction is subject to customary closing conditions and
approvals, including clearance by competition authorities.

Outlook

gategroup's business is seasonal, reflecting long-established
consumer travel patterns and the performance of airlines, which are
the Company's primary customer base. This seasonality affects the
comparability of gategroup results between quarterly periods. Looking
ahead for this year, and given the uncertain economic outlook in
Europe, gategroup maintains an expectation of flat growth in real
terms across its portfolio. The streamlining of the European Airline
Solutions businesses will have a positive impact in 2013. gategroup
will benefit from the acquisitions, new business gains and
investments that it has recently made within 12 to 24 months and
therefore it confirms its 2015 mid term targets.

Please see the following link on the gategroup web site for a copy of
the H1 2012 financial results report and additional information:

http://www.gategroupmember.com/index.php?option=com_content&view=arti
cle&id=548&Itemid=228

Overview of key figures for the first half of 2012 (January - June)

millions of CHF Q1 Q2 HY1 HY1 Change Change
2012 2012 2012 2011 at const. Fx
Revenue 656.7 757.2 1,413.9 1,318.7 7.2% 7.6%
EBITDA 25.5 53.0 78.5 88.4 (11.2%) (13.3%)
EBITDA margin 3.9% 7.0% 5.6% 6.7% (1.1pp) (1.3pp)
Operating profit 4.7 31.7 36.4 49.3 (26.2%) (31.2%)
Operating profit
margin 0.7% 4.2% 2.6% 3.7% (1.1pp) (1.3pp)
Profit for
the period (14.8) 19.5 4.7 20.3 (76.8%)
Cash flow from
operations 2.7 5.7 8.4 4.0 4.4
Net debt 205.5 244.7 244.7 157.1 87.6
Cash (incl.
available
credit lines) 376.7 338.8 338.8 495.8 (157.0)

Note: Constant Fx (constant currency) restates the current period results using
the average exchange rates for the same period of prev. year

OVERVIEW of gategroup gategroup is the leading independent global
provider of products, services and solutions related to a passenger's
onboard experience. gategroup comprises the following brands: deSter,
eGate Solutions, Gate Aviation, Gate Gourmet, Gate Retail Onboard,
Gate Safe, Harmony, Performa, potmstudios, Pourshins and Supplair.

FORWARD-LOOKING STATEMENTS This publication contains forward-looking
statements and other statements that are not historical facts. The
words "believe", "anticipate", "plan", "expect", "project",
"estimate", "predict", "intend", "target", "assume", "may", "will"
"could" and similar expression are intended to identify such
forward-looking statements. Such statements are made on the basis of
assumptions and expectations that we believe to be reasonable as of
the date of this publication but may prove to be erroneous and are
subject to a variety of significant uncertainties that could cause
actual results to differ materially from those expressed in
forward-looking statements. Among these factors are changes in
overall economic conditions, changes in demand for our products,
changes in the demand for, or price of, oil, risk of terrorism, war,
geopolitical or other exogenous shocks to the airline sector, risks
of increased competition, manufacturing and product development
risks, loss of key customers, changes in government regulations,
foreign and domestic political and legislative risks, risks
associated with foreign operations and foreign currency exchange
rates and controls, strikes, embargoes, weather related risks and
other risks and uncertainties. We therefore caution investors and
prospective investors against relying on any of these forward-looking
statements. We assume no obligation to update forward-looking
statements or to update the reasons for which actual results could
differ materially from those anticipated in such forward-looking
statements, except as required by law.

INVITATION TO ANALYSTS AND INVESTORS

Andrew Gibson (CEO) and Thomas Bucher (CFO) invite analysts and
investors to participate in a telephone conference call.

The presentation can be accessed via webcast and dial-in
teleconference at 14:00 CET on Thursday, August 23, 2012.

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)

To link to the live webcast of the presentation, please follow the
link on our website http://www.gategroupmember.com/index.php?option=c
om_content&view=article&id=419&Itemid=231

Further inquiry note:
Media -- Jean-Luc Ferrazzini, jferrazzini@gategroup.com, +41-43-812-9128;
Investors/analysts -- Dagmara Robinson, drobinson@gategroup.com,
+41-43-812-5496

INVITATION TO MEDIA: Andrew Gibson (CEO) and Thomas Bucher (CFO) invite media to
participate in a telephone conference call at 9:00 am CET on Thursday, August
23, 2012. To listen to the 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)

end of announcement euro adhoc
--------------------------------------------------------------------------------

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