Ad hoc Announcements

IMMOFINANZ AG: Results for the 2009/10 financial year (1 May 2009 to 30 April 2010)

• Revenues:   EUR 719.2 million (2008/09: EUR 736.2 million)
• EBITDA:   EUR 394.9 million (2008/09: EUR 310.5 million)
• EBIT:    EUR 181.1 million (2008/09: EUR -2,071.3 million)
• EBT:    EUR 208.2 million (2008/09: EUR -3,403.4 million)
• Gross Cash flow: EUR 387.5 million (2008/09: EUR 97.0 million)
• Net profit:   EUR 195.6 million (2008/09: EUR -3,051.1 million)
• NAV per share: EUR 4,78 (2008/09: EUR 5,25)

The financial year of the IMMOFINANZ Group ending on 30 April 2010 was characterised by an extensive restructuring process that culminated in the merger of IMMOFINANZ AG and IMMOEAST AG and ends with the implementation of the agreement reached with Constantia Packaging B.V. in May 2010. The IMMOFINANZ Group – whose focus is now placed on the core markets of Austria, Germany, Poland, Romania, Russia, Slovakia, Czech Republic and Hungary – followed an extremely negative crisis year in 2008/09 with a successful turnaround and generated solid positive earnings in 2009/10. Earnings indicators improved significantly over the prior year and remain on a sustainable upward trend.

Revenues and EBITDA
Even though revenues fell slightly from EUR 736.2 million in the prior year to EUR 719.2 million for 2009/10, results of operations (EBITDA) rose substantially by approx. 27% from EUR 310.5 million to EUR 394.9 million. The decrease in revenues reflects a year-on-year decline in rental income and lower income from operating costs charged to tenants, which resulted above all from the sale of properties. However, a significant reduction in overheads from EUR 235.5 million to EUR 112.7 million (-52%) supported an improvement in EBITDA. The gross cash flow is four times higher than last business year and rose from EUR 97.0 million to EUR 387.5 million.

Valuation and financial results
Both valuation results and financial results improved considerably in comparison with the previous year. In spite of this development, valuation results remained negative at EUR -213.7 million for 2009/10 (2008/09: EUR -2,381.7 million) although EUR 234.2 million of foreign exchange-adjusted revaluations were recognised during the reporting year. The negative valuation results were caused by EUR -254.4 million of non-cash foreign exchange effects outside the Group’s influence as well as impairment charges of EUR -286.1 million.

Financial results, which amounted to EUR -1,332.2 million in 2008/09, turned positive in the reporting year and totalled EUR 27.1 million.

Quarterly results
Primarily due to lower sales of properties EBITDA for the forth quarter of the business year 2009/10 decreased by EUR 19 million to EUR 89.7 million compared to the previous year. Due to goodwill impairment charges in connection with the investment in the shopping centre Golden Babylon Rostokino, EBIT turned negative (EUR -65.6 Mio.). The net loss for the period amounts to EUR -25.5 million. IMMOFINANZ Group expects to represent clearly positive results for the first quarter of the current business year in September.

55 million treasury shares
On 13 August 2010 the IMMOFINANZ Group announced that it will take over 55 million IMMOFINANZ shares as treasury stock. These shares are currently held by subsidiaries of Constantia Packaging B.V. and, based on the agreement with Constantia Packaging B.V., the proceeds from their sale would have been turned over to the IMMOFINANZ Group. The direct transfer of these shares will be NAV accretive and also facilitate future refinancing.

Outlook
The restructuring of the IMMOFINANZ Group has been largely concluded, and plans for 2010/11 consequently call for a focus on the optimisation of the property portfolio, the completion and selective reactivation of development projects, and the sale of assets that are not part of the core business of the IMMOFINANZ Group.

The capital structure and liquidity of the IMMOFINANZ Group are stable. Since the IMMOFINANZ Group will be confronted with the possible maturity of EUR 866.6 million in convertible bonds during 2012, refinancing options for the 2014 and 2017 convertible bonds are currently under evaluation. This refinancing, which is one of the prerequisites for the planned payment of a dividend for the 2011/12 financial year, should be realised within the next three quarters.

The annual report of the IMMOFINANZ Group for the 2009/10 financial year will be published in the course of the day under www.immofinanz.com.