The Management Board and Supervisory Board of CECONOMY AG (CECONOMY) as well as the Management Board and Advisory Board of Media-Saturn-Holding GmbH, a majority shareholding of CECONOMY, today approved a reorganization and efficiency program, which aims at streamlining the group's processes, structures and business activities, reducing costs and therefore creating the foundation for profitable growth. The optimization and restructuring particularly focuses on central functions and administrative units in Germany. The program also includes reviewing the business activities of smaller portfolio companies.

As a result of the program, CECONOMY expects expenses of around EUR150 million to EUR170 million in financial year 2018/19 in total. In addition, CECONOMY expects around EUR20 million of non-cash expenses in financial year 2018/19, which relate to the write-down of assets due to portfolio measures. The expected sustainable annual savings run-rate amounts to between EUR110 million and EUR130 million, the majority of which shall already become effective from financial year 2019/20.

The expenses for top management changes in the amount of EUR34 million, which were already booked in the first quarter of 2018/19, are not included in the expenses of the aforementioned reorganization and efficiency program.

The outlook for financial year 2018/19, which is adjusted for portfolio changes as well as expenses for management changes and restructuring, remains unaffected.
 

Person making the notification: Sebastian Kauffmann, Vice President Investor Relations, CECONOMY AG