Annual Results

Deufol SE: Annual Results 2014

• Sales € 289.9 million (previous year € 318.7 million)
• EBITDA € 13.5 million (previous year € 14.8 million)
• EBIT(A) € 6.2 million (previous year € 6.0 million)
• Operating cash flow € 22.2 million (previous year € 17.2 million)
• Net financial liabilities € 37.0 million (previous year € 50.3 million)

Hofheim, April 30, 2015

Sales trend

In 2014, the Deufol Group realized a negative sales trend on balance, in line with expectations. Due to a very positive business trend in the USA, sales increased in the USA / Rest of the World to € 68.4 million (previous year: € 62.8 million). In Germany (incl. the holding) sales declined slightly more strongly than expected and amounted to € 156.3 million (previous year: € 170.5 million). However, it should be noted that sales of approx. € 5.4 million are no longer included in this figure due to changes to the consolidated group. Moreover, northern and western Germany especially suffered due to a moderate level of demand from some customers. In the Rest of Europe, after scaling back our operation in Tienen the result was lower than in the previous year (€ 74.2 million, compared to € 85.4 million), as expected.

Operating result (EBIT) slightly higher

In Germany, the northwestern region in particular was affected by several customers' restraint. Due to the challenging economic environment our operation in Italy was affected by the insolvency of a major customer. On the other hand, in the USA we are highly satisfied with our earnings trend. Here we have achieved a significant improvement in our earnings following a successful restructuring program. The same is true for our activities in China. Overall, the operating result (EBIT) amounted to € 6.2 million in the reporting period (previous year: € 6.0 million).

Financial indebtedness reduced - strong operating cash flow

In the past fiscal year the financial liabilities of the Deufol Group clearly decreased, from € 62.8 million to € 58.8 million. Net financial liabilities - defined as the total financial liabilities less financial receivables and cash - decreased even more strongly, by € 13.3 million from € 50.3 million on December 31, 2013 to € 37.0 million at the end of the period under review. This was due to the increase in cash held (+ € 11.0 million) and lower financial receivables (- € 1.6 million).

The operating cash flow amounted to € 22.2 million in the period under review and was thus significantly higher than in the previous year (€ 17.2 million).

Key data of the year 2014

figures in € million

2014

2013

change (%)

Sales

298.9

318.7

(6.2)

EBITDA

13.5

14.8

(8.9)

EBIT(A)

6.2

6.0

3.0

EBT

3.5

2.7

28.4

Income for the period

0.47

0.48

(2.1)

of which attributable to noncontrolling interests

0.24

0.18

30.4

of which attributable to equity holders of parent

0.23

0.29

(22.4)

Earnings per share (€)

0.005

0.007

(22.4)

Operating cash flow

22.2

17.2

29.4

Investments. in tangible assets

5.7

9.0

(36.6)

Net financial liabilities

37.0

50.3

(26.6)

Equity ratio (%)

44.6

44.9

(0.6)

Employees (average)

2,523

2,704

(6.7)



Outlook

For fiscal year 2015, the Deufol Group plans sales of between € 295 million and € 315 million. Its operating result (EBITDA) should amount to between € 14 and 16 million.

Sales should increase in Germany and in the USA / Rest of the World but fall slightly short of the level realized in the previous year in the Rest of Europe.

With regard to our results forecast, we expect our core business in Germany to increase significantly. This is attributable to the productivity-boosting measures implemented last year. For the Rest of Europe we envisage a slight increase in earnings. In the USA / Rest of the World segment, we also expect improved results.

The Annual Financial Report is available on the internet at http://www.deufol.com

For further information, please contact:
Deufol SE
Claudia Ludwig
Phone: +49 (6122) 50 1228
E-mail: Claudia.Ludwig@deufol.com

ISIN: DE000A1R1EE6
Listed: OTC market in Frankfurt (Entry Standard); OTC market in Berlin, Düsseldorf and Hamburg



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