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    GGS   DE0005156004

GIGASET AG

(GGS)
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PRESS RELEASE : Gigaset AG publishes 2020 Annual Report

04/22/2021 | 03:02am EDT
DGAP-News: Gigaset AG / Key word(s): Annual Report/Annual Results 
Gigaset AG publishes 2020 Annual Report 
2021-04-22 / 09:00 
The issuer is solely responsible for the content of this announcement. 
=---------------------------------------------------------------------------------------------------------------------- 
Press release 
Bocholt, April 22, 2021 
Gigaset AG publishes 2020 Annual Report 
2020 goals curbed due to coronavirus pandemic - rigorous and rapid countermeasures nevertheless lead to a solid result 
  . Total consolidated revenue of EUR214.2 million due to coronavirus 
  . Rigorous cost saving measures implemented 
  . Cash and cash equivalents up 15% year on year at EUR42.0 million thanks to strict cost and liquidity management 
Bocholt, April 22, 2021 - Gigaset AG (ISIN: DE0005156004), an internationally operating company in the area of 
communications technology, today published its Annual Report for 2020. Due to the continuing coronavirus pandemic, the 
last fisical year was especially challenging for Gigaset AG. Fiscal 2020 was clearly negatively impacted by 
coronavirus. This was also reflected in revenue and earnings in all segments. However, the countermeasures already 
taken by the company at a very early stage mitigated the impact. All in all, this allowed a solid operating result 
(EBITDA) and cash and cash equivalents clearly above the prior year to be achieved. 
In total, consolidated revenue of EUR214.2 million was generated in fiscal 2020 compared with EUR257.9 million in the same 
period of the prior year (-16.9%). The various state measures to contain the coronavirus pandemic in Germany and 
Europe, such as trade restrictions and repeated store closures in all of the company's markets, led to a decline in 
revenue in all four segments. Gigaset responded quickly, rigorously, and sustainably through targeted countermeasures. 
Thanks in particular to strict cost control, optimized working capital management, and the use of state support, it was 
nevertheless possible to post a solid operating result for 2020 as a whole with an EBITDA of EUR1.9 million. Through 
intensive liquidity management, much higher cash and cash equivalents of EUR42.0 million were posted at the end of the 
year than in the prior year (EUR36.6 million) and hence a robust cushion of +15.0%. 
"Our annual result and what we have achieved all in all in the overall context of coronavirus is truly impressive," 
says Thomas Schuchardt, CFO of Gigaset. "Around EUR214 million in revenue and a very solid cash cushion well above the 
prior year at EUR42.0 million - and that still with high R&D investments in the future of our product portfolio or the 
conclusion of very large and labor-intensive cooperation agreements. It is also especially important to me that no 
employee had to leave the company on operational grounds." 
Klaus Weßing, CEO of Gigaset AG, adds: "We can all be rightly proud of what was achieved last year under extremely 
difficult conditions. We naturally had different plans for 2020 at the start of the year and were full of ideas and 
plenty of potential. We wanted to grow, to further develop and scale our business. Then came coronavirus. A whole new 
situation for us and many thousands of companies worldwide. None of us had ever experienced a pandemic before or could 
really foresee what happened to the economy and the people. That's still difficult today - also with a view to the 
future." 
Targeted management response to coronavirus 
Immediately after the outbreak of the coronavirus pandemic, the company took three central measures that have since 
been strategically implemented: One was to tighten up liquidity and cost management. A stronger focus was placed in 
cash management on payment runs and credit management, so that extensive deferments could be achieved between April and 
September. At the same time, working capital was optimized and other costs saved. Employees covered by a collective 
bargaining agreement were placed on short-time working, and pay cuts were agreed with exempt colleagues. Another 
measure was to further expand e-commerce business. As a result, the proportion of online sales for the year as a whole 
went up 46,2 % year on year. The third measure, aimed at protecting employees and ensuring the company's ability to 
deliver, was to additionally implement hygiene measures early on in line with the recommendations of the Robert Koch 
Institute and the German government. 
Despite the challenging coronavirus situation, the management made the conscious decision to keep activities in 
research and development at the highest possible level in order to initiate new innovations in all business fields for 
2021 and the subsequent years. For example, the entire Professional handset portfolio was overhauled and the innovative 
UC ION phone developed. With ION, Gigaset is targeting the market for unified communications and softphone clients even 
more vigorously. The phone with handsfree function for the office, working from home, and on the road is a headset 
alternative for users who prefer a handset with a headset and want to switch flexibly to a conference loudspeaker. 
Last year, also under coronavirus conditions, another extensive and important project was planned, implemented and 
successfully completed in December: the cooperation agreement with Unify Software and Solutions GmbH & Co. KG. Under 
this agreement, Unify will exclusively purchase the next family of desktop phones from Gigaset until the end of 2025. 
In addition, Gigaset has acquired central software licenses and will also be able to use the newly developed phones in 
its own portfolio. With a volume of around five million phones, the cooperation with Unify is one of the biggest and 
most important projects of the last decade. 
"We responded well and, most importantly, quickly to the coronavirus pandemic, but dealing with the crisis will also 
continue to occupy us in the new fiscal year, says Weßing. "We also expect working from home and remotely as a 
consequence of the crisis to lead to a large-scale redesign and adjustment of the IT and telecommunications structures 
both at work and home. The number of Internet-capable devices in private households will continue to rise in the coming 
years, and Gigaset can and intends to benefit from this development in the future." 
Performance by segments 
In the mainly consumer-oriented Phones, Smartphones and Smart Home segments, revenue was EUR173.1 million, hence down 
14.0% against 2019 (EUR201.3 million). In Professional business for B2B customers, the company generated revenue of EUR41.1 
million, a decline of 27.3% over 2019 (EUR56.6 million). 
The Phones segment generated revenue of EUR157.3 million in fiscal 2020 (2019: EUR176.4 million). This revenue decline was 
primarily due to the massive lockdowns and store closures especially in the the second quarter, and the general 
uncertainty due to the pandemic. In Europe, more than 90% of the points of sales (PoS) that sell Gigaset products were 
temporarily closed. Although the company expects a peak in demand for this segment in the short term due to the 
increasing shift of working life into the home, this will not, however, influence the general degressive market trend. 
DECT telephony already experienced a revival in 2020 thanks to the rise in working from home. The outstanding voice 
quality, the ergonomics of the devices, and the call and standby times suggest that this trend will persist. Gigaset 
also sees new potential in the area of fixed-line telephony in the U.S. The new e-commerce capacities at the company 
enable a new and direct market access to the customer that is now no longer set up via retail but instead on a purely 
online basis. Accordingly, Gigaset can now also be found as a vendor on Amazon's U.S. platform. 
The Smartphones segment posted revenue of EUR13.3 million (2019: EUR21.2 million). This was affected primarily by the 
closure of retail stores and reduced Christmas business as a result. Gigaset is the only manufacturer to offer 
fixed-line, professional and mobile telephony from a single source. By expanding this ecosystem, Gigaset is driving 
forward the merger of B2C and B2B solutions, since the company expects customers in the context of remote working to 
opt for end-to-end solutions for their employees. 
Revenues of EUR2.5 million were generated with smart home solutions in fiscal 2020 (2019: EUR3.7 million). The decline can 
be attributed primarily to smart home solutions still being regarded as a "luxury". In times of crisis, customers 
therefore refrain temporarily from buying such products in favor of other goods. If, however, the home becomes the new 
focal point, investments in convenience and security will shift accordingly in this segment. Gigaset therefore expects 
demand to rise again from the new fiscal year. 
The Professional segment contributed EUR41.1 million to consolidated revenue in fiscal 2020 (2019: EUR56.6 million). The 
decline is due to projects being postponed or canceled. While the pandemic-related effects of going without in the 
consumer segment set in relatively quickly, there was a certain delay in investment activities in the B2B field. 
Gigaset remains optimistic about the further development of the market. Despite increasing digitalization, the hardware 
needed for calls should remain unaffected by the expected changes. As a manufacturer in the B2B field with close links 
to cloud partners, Gigaset also aims to benefit from this development. 
Outlook 
No clear-cut course has yet emerged in 2021, so no projections can be made either on a general recovery in economic 
performance. The biggest risk for Gigaset continues to lie in hard lockdowns, in which PoS in Germany and Europe remain 
closed, or during which project business as in the Professional segment is not possible. On the other hand, there are 
very positive developments in Gigaset e-commerce, whether on the company's own homepage, via Amazon and other 
e-tailers, or in marketplaces. 

(MORE TO FOLLOW) Dow Jones Newswires

April 22, 2021 03:01 ET (07:01 GMT)

Stocks mentioned in the article
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DJ INDUSTRIAL -0.10% 34742.82 Delayed Quote.13.63%
GIGASET AG -1.68% 0.293 Delayed Quote.-0.67%
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Financials
Sales 2021 223 M 270 M 270 M
Net income 2021 -5,45 M -6,61 M -6,61 M
Net Debt 2021 84,4 M 102 M 102 M
P/E ratio 2021 -2,93x
Yield 2021 -
Capitalization 38,8 M 47,2 M 47,1 M
EV / Sales 2021 0,55x
EV / Sales 2022 0,49x
Nbr of Employees -
Free-Float 26,5%
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Mean consensus BUY
Number of Analysts 2
Average target price 0,60 €
Last Close Price 0,29 €
Spread / Highest target 142%
Spread / Average Target 103%
Spread / Lowest Target 63,8%
EPS Revisions
Managers and Directors
NameTitle
Klaus We▀ing Chief Executive Officer
Thomas Schuchardt Chief Financial Officer
Hau Yan Wong Chairman-Supervisory Board
Paolo Vittorio Di Fraia Vice Chairman-Supervisory Board
Ka Yan Shiu Member-Supervisory Board
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