Datacolor in the first half 2015/16

In the first half of 2015/16, Datacolor AG posted net sales of USD 33.8 million (H1 2014/15: USD 34.4 million). The 2% year-on-year decrease is influenced by currency effects. In local currencies, Datacolor achieved growth of 3%. In the first half, operating earnings (EBIT) grew by 22% year-on-year to USD 2.6 million (USD 2.2 million), and net profit for the period rose by 70% to USD 2.6 million (USD 1.5 million). Datacolor is debt-free and has a net cash position of USD 26.0 million (September 30, 2015: USD 25.9 million) including financial assets of USD 10.4 million. The equity capital ratio is at a high 61.6% (63.3%). The average headcount decreased to 369 (H1 2014/15: 397).

In the period under review, Datacolor further solidified its already strong position as a leading international company for digital color management solutions in its core markets (textile, paint and coating industries) as well as the retail market for monitor and printer calibration. The percentage of Group sales attributable to Europe narrowed to 35.8% (39.5%). With USD 12.1 million (H1 2014/15: USD 13.6 million), the region remained Datacolor's largest market. At USD 11.2 million (USD 10.7 million), the Asia-Pacific region increased its share in sales further to 33.3% (31.0%). The Americas region reported net sales of USD 10.4 million (USD 10.1 million), accounting for 30.9% (29.5%) of Group sales. While demand from the North American market was strong during the period under review - in particular from the paint industry and paint retailers - the investment climate in South America was soft.

In the first half-year, Datacolor specifically invested in enhancing its attractive product portfolio to include versatile software solutions, instruments and services for the precise measurement and communication of color. Besides the expansion of the highly effective marketing organization and the customer-centric development work of Datacolor, also its top-tier international direct sales and service organization plays a key role.

The product portfolio for Datacolor's core and growth markets was selectively expanded in the first half of 2015/16. The next generation of the high-performance Datacolor 800 and 500 series of spectrophotometers for the textile, paint, dye and plastics industries was launched. The new instruments offer a level of precision unparalleled in the sector, faster measurement speeds and greater ease of use. The Datacolor 200 spectrophotometer is to be launched in the second half. It is the optimum solution for paint retailers and hardware stores. Used in combination with Datacolor Paint 2.0 software and a paint dispenser, the Datacolor 200 provides retail customers with a precise measurement of paint samples, enabling stores to deliver an exact match.

Outlook

Datacolor will continue to invest heavily in the development and market launch of new products and software solutions. With its solid financial structure Datacolor is well placed to be a key driver of the dynamic development in its market and to benefit to an above-average extent from new technological developments. For the current financial year, Datacolor is looking to achieve a solid return and an increase in sales in order to meet strategic growth targets going forward in what is still a volatile market environment.

The full half year report 2015/16 is available on: www.datacolor.com/company/investor-relations/reports/

Lucerne, May 6, 2016