Leica Press Release

Leica Camera Group, Solms, has closed fiscal year 2005/2006 (FY end 31 March) with sales of € 106.7 million. This is 15.9 % above the previous year’s figure of € 92.1 million. The earnings before income and taxes which have been adjusted for restructuring expenses have improved from € –10.6 million to € 0.6 million compared to the previous year, mainly as a result of increased sales. At the same time the Group net loss has decreased from last year’s € 18.1 million to € 9.2 million in fiscal year 2005/2006. The Group net loss of the previous year includes a loss of € 1.9 million from abandoned lines of business.

System cameras sales have risen by 12.2 % to € 34.5 million. With the LEICA DIGITAL-MODUL-R a digital product contributed to sales in this product range for the first time. Compact camera sales, particularly of digital models, have risen by 6.6 % to € 16.9 million. In the Leica sports optics range a growth by 20.5 % to € 36.4 million has been registered, in particular with regard to binoculars with integrated laser rangefinding. Slide projectors sales have suffered a further decline by 19.0 % to € 1.8 million.

International sales have increased by 20.1 % compared to the previous year’s figures and amount currently to € 86.4 million or 80.9 % of total sales. For the first time the US market is the Group’s most important individual market with sales of € 26.2 million or 24.6 % of total sales. With sales of € 20.4 million or 19.1 % of total sales the slower growing German market still remains an important market for Leica Camera Group.

In fiscal year 2005/2006 earnings before income and taxes (EBIT) improved from € –14.7 million to € –6.2 million. The income from the write-back of provisions and valuation allowances (€ 2.4 million) had a positive effect on the total result. Restructuring expenses burden the FY result with € 6.8 million compared to € 4.0 million in FY 2004/2005. The net interest income which is negative due to the continuing high drawing on credit lines developed from € –2.4 million in the previous year to € –2.8 million.

For the first time the financial statements were prepared according to the international IFRS standard. The figures for the previous year have been calculated according to the same standard to facilitate comparability. Hence they differ from the previously published figures which were calculated according to HGB (German Commercial Code).