Conzzeta is an industrial holding with a well-balanced and diversified portfolio of activities. Its core business areas are Machinery and Systems Engineering, on the one hand, and Consumer and Industrial Products on the other. Conzzeta Holding invests in medium-sized companies which occupy leading positions in international niche markets. Specialization, technological leadership and proven expertise in application technologies are the vital attributes in such markets.
The Conzzeta Group companies engaged in Machinery and Systems Engineering develop systems and services for processing sheet metal and glass. The Consumer and Industrial Products businesses manufacture finished products such as foams, sporting goods, paints and varnishes. The Group's portfolio is rounded off by real estate activities as well as small companies focused on production automation and concrete prefabrication.

Conzzeta Group reports marked rise in revenues and earnings for the first months of 2007
Zurich, June 8, 2007 - In the first four months of the new business year, the Conzzeta Group (machinery and systems engineering, industrial and consumer products) generated net revenues of CHF 473.7 (387.6) million. This corresponds to a rise of 22% over the same period a year ago. The marked rise in revenues was driven mainly by Sheet Metal Processing Systems (Bystronic). The Conzzeta Group's operating result reached CHF 32.5 (22.9) million, up 42% on the same period of 2006. The sale of the Richti site in the Wallisellen industrial zone yielded an extraordinary profit of CHF 51.5 million, contributing to a steep rise in Group profit to CHF 78.5 (25.7) million. Even without the extraordinary income, Group profit was around 50% higher.
The business units of the Conzzeta Group were able to strengthen their positions in the core markets thanks to the generally favorable business environment. Measures to improve the project and process organization introduced at the beginning of 2007 have not yet had an impact on earnings.
CHF 51.5 million extraordinary profit from sale of real estate in Wallisellen
The roughly 55 600 m2 site in the district of Richti in Wallisellen was sold at the beginning of April. This transaction resulted in an extraordinary profit of CHF 51.5 million, which is unprecedented in scale. With this sale, the potential for major real estate divestments is exhausted for the foreseeable future. 
Sheet Metal Processing Systems still flying high 
The Sheet Metal Processing Systems business unit (Bystronic) reported a marked rise in sales, up 43% to CHF 242.4 (169.8) million. Stagnating demand in the USA was offset by stronger sales in Europe and a doubling of the volume of business in Asian markets. The level of incoming orders was still very gratifying. The compact laser-cutting system ByVention, launched in 2006, made a significant contribution thanks to buoyant demand. 
In Glass Processing Systems (Bystronic glass), measures to resolve difficulties with the execution of complex projects encountered during 2006 are beginning to bite, but are not expected to have an impact on earnings until the end of the reporting year, at the earliest. The business unit showed a slight fall in sales at CHF 66.9 (70.1) million. On the other hand, incoming orders are on the rise, although the strong pressure on margins persists. There are clear signs of an upturn in the demand for glass processing systems at present, particularly in the Middle East.
Automation Systems (ixmation), the newest business unit started the current business year with an improvement in sales. At CHF 30.4 (22.8) million, revenues were significantly higher than in the same period of last year. Some of the increase is due to the first-time consolidation of Excel Precision, acquired in November 2006. Integration of the business unit's four production centers in Switzerland, the USA, Malaysia and China to create a globally networked provider of automation systems is one of the management priorities for the current year. 
Sales in the Foam Materials business unit (FoamPartner) increased by 10% during the first four months of this year, reaching CHF 53.8 (48.7) million. However, the margin did  not follow the same growth pattern, because of a sharp increase in raw material costs, only part of which could be passed on in the form of higher prices. The unit also had unexpected problems with the supply availability of latex products due to a delay in the start-up of a new production facility. 
In the Sporting Goods business unit, sales of seasonal articles stagnated owing to the unusually mild winter weather, resulting in higher inventories. The slight increase in sales from CHF 55.1 million to 59.0 million was achieved thanks to early release of the summer collection.
Schmid Rhyner AG, which is consolidated under Other Industrial Activities, reported a healthy increase in sales. Its print finishing products benefited from stronger demand, most notably in Europe, South Africa, South America and Australia. 
The Real Estate business unit continued to prove a solid cornerstone of the Conzzeta Group. Revenues from rent and leasing were on a par with the previous year's level. The divestment of the Richti site in Wallisellen represents the realization of the Group's last significant land reserve in the Zurich region. 
Stable outlook 
In view of the healthy inflow of new orders in Machinery and Systems Engineering and despite signs of weakening in the US economy, Conzzeta expects steady growth over the year, although raw material prices are likely to stay at the current high level. 
However, year-on-year percentage growth rates will be lower because sales showed a marked increase already in the autumn of last year. 

Conzzeta Group 2006: Another marked increase in revenue and earnings
Zurich, March 19, 2007 - Net revenue of the Conzzeta Group rose 10.4% from CHF 1153.4 million to CHF 1273.6 million on the back of positive stimuli from the economy, the range of new products launched and the extension of the company's geographic reach. The biggest rise in revenues was posted by the Sheet Metal Processing Systems business unit, but all the other business units reported higher revenues as well. After factoring in acquisitions, disposals and currency translation effects, growth came to 15.7%. Operating profit (EBIT) improved by 20.6% to CHF 80.6 million (previous year: CHF 66.8 million). Group profit after tax rose by CHF 7.5 million to CHF 71.1 million (CHF 63.6 million).
The favorable economic climate prevailing worldwide during 2006 drove strong sales growth in all business units of the Conzzeta Group, especially in Sheet Metal Processing Systems. Organic growth far outweighed the effect of divesting the construction-related operations - which eliminated net revenue of CHF 102 million - with Group revenues rising 10.4% to CHF 1273.6 million.
As a result of the changes in the portfolio of holdings and the strong organic growth, the share of Machinery and Systems Engineering in the Conzzeta Group activities rose to 71%.
The disposal of the construction-related businesses, which were geared to the domestic market, also had an impact on the geographic distribution of Group net revenues. The share of revenues generated in Switzerland declined from 22% to 13%. The rest of Europe accounted for 58% of Group revenues, North America for 15%, Asia for 12% and the other continents for 2%. 
Improved profitability
Operating profit (EBIT) surged by 20.6%, reflecting an improvement in profitability. The pace of improvement slowed in the final months of the year because the second half of 2005 had already seen a steep increase in profits, and the effect of higher costs due to production bottlenecks was making itself felt. 
Moreover, the Glass Processing Systems and Automation Systems business units had to absorb special costs for complex customer projects, which ate into their earnings.
On balance, profit before taxes rose by CHF 13.5 million. Since most of this profit was generated in companies that cannot offset their earnings, tax expenditure rose by a disproportionately high CHF 6.1 million. Group profit after tax rose by CHF 7.5 million to CHF 71.1 million. The impact of the divested operations on ordinary profit was negligible, yet these transactions generated an extraordinary profit of CHF 9.4 million. Group profit in the previous year also contained an extraordinary profit of a similar amount, but from real estate transactions.
With an equity ratio of 70.1% at the end of 2006, the financing of the Conzzeta Group is still on a very solid footing. Its comfortable liquidity position, consisting of cash, cash equivalents and securities amounting to CHF 212.4 million (previous year: CHF 170.2 million) allows further expansion, though this is to be undertaken with all due caution. 
The Board of Directors proposes increasing the dividend from CHF 40 to CHF 45 per bearer share on the strength of the Group's improved profitability.
Business units
Sheet Metal Processing Systems
The largest business unit, Sheet Metal Processing Systems (Bystronic), reported record sales last year of CHF 632.0 million, equivalent to a 29.0% increase. It generated the revenue growth by its own efforts and in all market regions and product groups. Order intake also rose in the course of the year, and the order backlog at the end of 2006 was well above the previous year's level. The investments made in past years to strengthen our international market presence, develop new products and streamline processes are the basis for the present growth.
Glass Processing Systems
The 11.6% revenue increase in Glass Processing Systems (Bystronic glass) to CHF 219.2 million stems mainly from heavier demand for facilities for the manufacture of insulating glass. Growth in Europe was particularly strong. A new distribution company was founded in China to improve local delivery of customer services. The unit is continuing to focus intensively on growth markets, particularly in Eastern Europe.
Automation Systems
Revenues in the Automation Systems business unit (ixmation) were not comparable with the previous year. Owing to the acquisition of Cox Automation Systems in September 2005, sales leapt to CHF 49.6 million. The net sales acquired with the new addition came to CHF 27.8 million. The business unit reinforced its presence in the ever more important Asian market by acquiring Excel Precision Sdn. Bhd., located in Malaysia and China, as per November 2006.
Foam Products
For the Foam Materials business unit (FoamPartner), the year-on-year improvement in the business environment continued, though it was less marked. The firmer demand along with necessary price increases led to a 9.1% rise in net sales to CHF 147.5 million. Rising raw material prices eroded margins. In the year under review, one of the focuses was on expansion in non-European markets. FoamPartner founded a distribution company together with Otto Bock GmbH in Shanghai and forged ahead with plans to build a joint production facility for foam materials in China. Market coverage in North America was strengthened by the founding of a joint venture with the Canadian firm Woodbridge Foam Corporation.
Sporting Goods
The upbeat signals from the economy had a positive effect on consumer sentiment and hence also on the Sporting Goods business. Sales at Mammut Sports Group rose in the reporting year by 13.6% to CHF 164.7 million. Most markets contributed to this growth, with Austria, Eastern Europe and the Far East being particularly dynamic. Mammut is still the most important brand and it further strengthened its market position.
Other Industrial Activities
Following the disposal of the Swiss Lack Group and the business activities of Siegfried Keller AG and Prebeton SA, the only company remaining under Other Industrial Activities is Schmid Rhyner AG, which specializes in print finishing products. In the reporting year, Schmid Rhyner stepped up its marketing efforts and launched new products, enabling it to raise revenues to CHF 36.5 million, an increase of 15.5%.
Real Estate
The Real Estate business unit posted revenues of CHF 21.2 million on the strength of full letting of its residential properties and a relatively low level of vacancy in the commercial sector. This traditional cornerstone of Conzzeta Holding's portfolio, which operates exclusively in Switzerland, is an important source of revenue for the Group.
Investments and acquisitions
Investments in property, plant and equipment, software and licenses rose slightly from CHF 28.5 million to CHF 31.8 million. A major part of the investment, CHF 18.1 million, was in Switzerland. The largest investment in property, plant and equipment was for a new production facility for natural latex products in Döttingen, Switzerland, made by the Foam Materials business unit. Important investments in production expansion were made by Bystronic at Niederönz, Switzerland and Gotha, Germany, and at the Bystronic glass company Lenhardt in Neuhausen-Hamberg, Germany.
Employees
The number of employees at year-end remained practically unchanged from the previous year. At December 31, 2006, the overall payroll of Conzzeta Group companies stood at 3273, compared with 3280 a year ago. The disposal of certain operations meant that some 300 people left the Conzzeta Group. By contrast, headcount was increased in the Sheet Metal Processing Systems business unit and as a result of the acquisitions made by Automation Systems. The proportion of staff employed abroad rose to 57%.
Change in Board of Directors
After 26 years in office, Christoph Spoerry, Vice-Chairman of the Board, has announced his retirement as of the date of the next Annual General Meeting on April 24, 2007. The Board of Directors proposes the election of Philip Mosimann, CEO of Bucher Industries, Niederweningen, to succeed Christoph Spoerry.
Trends and outlook
The healthy order backlog in the various business units give Conzzeta confidence about the future. However, the signs of an overheating economy should not be disregarded. For this reason, it is important to remain very flexible in order to be able to react to market developments. Raw material prices are not expected to fall in 2007 either.
A challenge facing the company is the ongoing shift of markets to other regions. That is why Conzzeta is giving priority to further improving productivity and its cost structure, developing products that the market wants and expanding its presence in key markets.