Press release

Pages 1, 2, 3, 4, 5, 6

Swatch Group: Sales exceed CHF 5 billion for the first time - Best Group results of all time and the outlook remains optimistic

• Gross sales up by + 12.3 % to a record CHF 5 050 million.
• Strong growth in all Group segments, especially in the Watches and Jewelry segment.
• Mildly positive currency effects in 2006 (+ 0.6 %).
• Strong cash flow, above-average increase in operating result and Group net income expected.
• Optimistic outlook for current year.

Group Overview

All Group segments reported record sales last year. As in previous years, the most substantial sales growth was in the luxury watches segment, which once again enjoyed strong demand last year.
The Production segment benefited directly from the strong demand in the Watch segment. The favorable product mix towards more complex mechanical watch movements enabled it to achieve strong growth.
Sales in the Electronic Systems segment recorded a marked increase due to continuing high demand for components produced by the Group companies. Sales increased by +9.0% compared to the previous year.
There was a slightly positive currency effect in 2006 (+0.6%). The positive effect of the first half of the year was almost entirely eliminated in the second half of the year due to the weak performance of the USD and the Yen.
A further decrease in unit sales of watches, movements and stepping motors by approximately 55 million units can be attributed mainly to the strong reduction in watch movements in the lowest price category manufactured and sold in the Far East. Production in Malaysia has now come to a halt.

Edgar Geiser, CFO, et Thomas Dürr, Corporate Treasurer
The Swatch Group AG, Biel-Bienne
Tél. +41 32 343 68 11, fax +41 32 343 69 16
e-mail :

Béatrice Howald, Head of PR/Press, Swatch Group
+41 32 343 68 33, Fax +41 32 343 69 22


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