euro adhoc: conwert Immobilien Invest SE
other
conwert implements measures
to optimise costs and increase efficiency
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
23.02.2009
conwert implements measures to optimise costs and increase efficiency
Vienna, 23.02.2009. conwert Immobilien Invest SE (Vienna Stock Exchange: CWI, Reuters: CONW.VI, Bloomberg: CWI AV) is implementing a comprehensive programme to optimise costs and increase efficiency. The company will reduce general administration expenses by approx. 10-15%. At the same time, the capacities in the property sales and property management segments will be reorganised and strengthened in order to take optimal advantage of existing growth opportunities. As a result, total costs are to be reduced to 11-12% of revenues in 2009, following approx. 14% in the financial year 2008. "With these measures we are reacting to the changed framework conditions in the property markets and strengthening the internal financing power of conwert while at the same time benefiting from the growth opportunities in the service business", explains Johann Kowar, Chairman of the Executive Board of conwert. "We will optimise our cost structure to ensure growing cash earnings in the future with purely organic growth."
- Savings in administration and subsidiaries Core elements of the measures to optimise costs and increase efficiency are the reduction of general administration expenses, the merging and reorganisation of business units and locations, as well as using growth opportunities and synergy effects in the service business. The general administration expenses will decline by approx. 10-15% in 2009 by cutting personnel and material costs and a significant reduction in external costs. In addition, business activities in Austria will be consolidated from three locations to the headquarters in Vienna. Further cost savings will be achieved by optimising the personnel and business structures at the subsidiaries. In Hungary for instance, no new development projects will be implemented, existing condominiums will be sold off, and staff in Budapest will be reduced to a minimum from currently 16 employees. In Germany, individual apartment privatisation locations will be closed and the mandates of institutional investors will be concentrated. The number of employees in property acquisition will be reduced due to the market situation and the property research segment will be merged into existing business units. The reduction of staff in general administration and at subsidiaries will affect some 50 of the 530 employees. The cost saving measures will already show a positive effect on the earnings development in the year 2009.
- Investments in the growth segments sales and property management In order to take advantage of the opportunities in the property sales and property management segments even better, activities will be stepped up. "Our customers in the service segment are not affected by the saving measures. On the contrary: we will increase capacity there in order to win new mandates", says Johann Kowar. Transferring conwert properties which have so far been externally managed to our own property management also saves external costs and entails substantially lower personnel and material costs. Some 11,000 residential units have so far been taken over; another 2,500 units are to follow in 2009. Moreover, sales activities will be stepped up in both Germany and Austria. Overall about 30 jobs will be created in the growth segments of conwert.
- Merging asset management and property management To ensure more efficient management of the property portfolio, asset management and property management will be merged. Johann Kowar: "The active management of our own properties is a key to success - the new structure will allow increased efficiency by even more closely coordinated procedures and even better offers to our customers."
- Stronger orientation to sales implemented in organisation The strategic focus will in the future be placed on expanding the service business, selling properties and organic rental income increases. This stronger focus on sales has also led to a reorganisation of the Executive Board of conwert. With Thomas Rohr, who joins the Executive Board of as a new member, and Board member Jürgen F. Kelber, two managers who have already been responsible for sales will take over responsibility for the entire business in Austria and Germany. Their responsibilities comprise all business activities in these two core markets of conwert. Thomas Rohr (44) was previously a Board member of conwert´s RESAG Group and managed the brokerage firm RESAG Immobilienmakler GmbH. In the Executive Board he will be responsible for the region Austria, Jürgen F. Kelber for the region Germany. Walter Leitner, Andreas Nittel and Alexander Zartl will leave the Executive Board and assume management positions. Walter Leitner will manage asset & property management in Germany, which pertains to the segment Germany. Andreas Nittel will be the head of asset & property management in Austria, which belongs to the segment Austria. Alexander Zartl will manage the segment Temporary Housing. The Executive Board of conwert thus consists of Johann Kowar (CEO), Thomas Rohr (segment Austria), Jürgen F. Kelber (segment Germany), Claudia Badstöber (Accounting) and Wolfgang Tutsch (Legal Matters and Organisation).
end of announcement euro adhoc
Further inquiry note:
conwert Immobilien Invest SE, Peter Sidlo, Head of Corporate Communications -
Investor Relations, T +43 / 1 / 521 45-250, E sidlo@conwert.at
Hochegger|Financials, Roland Mayrl, T +43 / 1 / 504 69 87-31,
E r.mayrl@hochegger.com
Branche: Real Estate
ISIN: AT0000697750
WKN: 069775
Index: WBI
Börsen: Wiener Börse AG / official dealing