DO & : Financial Results for the 1st Quarter 2017/2018

C O R P O R A T E N E W S

• Expected reduction in revenue and income due to

  -no European football championship in 2017 and negative currency effects as well as cost-cutting measures taken by airlines in Turkey and in Austria

• (adjusted for these effects, Group growth stands at 5%)
• Los Angeles gourmet kitchen opens on 1 September 2017
• DO & CO intends to continue investing in Turkey

VIENNA - 17 August 2017 - DO & CO Aktiengesellschaft is publishing its result under IFRS for the first quarter of the 2017/2018 business year (1 April 2017 to 30 June 2017) today. In the first quarter of its 2017/2018 business year, the DO & CO Group recorded revenue of EUR 219.95m, a decrease of -13.6% or EUR -34.56m over its previous busi- ness year.

The EBITDA of the DO & CO Group was EUR 18.75m (PY: EUR 22.95m). The EBITDA margin was 8.5% (PY: 9.0%). Consolidated earnings before interest and tax (EBIT) of the DO & CO Group amounted to EUR 10.99m for the first quarter of 2017/2018, EUR 3.45m lower than in the same period of the previous year. The EBIT margin was 5.0% (PY: 5.7%). The net result for the first quarter of 2017/2018 amounts to EUR 4.72m (PY: EUR 6.75m).

The fact that no European football championship took place, strong negative currency effects as well as cost-cutting measures taken by airlines primarily in Turkey and in Aus- tria resulted in negative one-off effects in revenue of approx. EUR 47.6m. Not taking into account these one-off effects, Group revenue would amount to EUR 267.6m instead of EUR 219.95m and therefore grow by +5% as compared to the previous year.

Below, a detailed account is given on the development of the three divisions of the DO & CO Group:

1. AIRLINE CATERING

   Airline Catering	Q1 2017/18 Q1 2016/17 in Mio € in Mio €	Change in Mio €	Change in %
   Revenue	143.50 158.58	-15.08	-9.5%
   EBITDA	12.43 15.80	-3.37	-21.4%
   Depreciation/impairment	-5.71 -6.44	0.73	-11.4%
   EBIT	6.72 9.36	-2.64	-28.2%

   EBITDA margin	8.7% 10.0%
   EBIT margin	4.7% 5.9%

   Share in consolidated sales 65.2% 62.3%

   Almost all DO & CO locations around the world reported encouraging increases in revenue.

   Particularly Germany, the US, England, Italy and Poland generated double-digit growth and did very well in the market.

   For the first time, the exceptions were Turkey, Austria and Ukraine.

   While Turkey reports an 8.6% decline in revenue in its local currency, the loss in value of the Turkish lira against the euro resulted in a revenue decline of -24.1% in the consoli- dated income statement of DO & CO.

   However, as the main part of the costs is incurred in local currency, the margins remain largely unaffected.

   A further strong reduction was reported in Austria for the airline customer NIKI.

   This was particularly due to the Vienna-based fleet being reduced from 22 to 5 airplanes. At the same time, complimentary catering was changed to a full buy-on-board concept, leading to a reduction in catering revenue and consequently also income.

2. INTERNATIONAL EVENT CATERING

   International Event Catering	Q1 2017/18 Q1 2016/17 in Mio € in Mio €	Change in Mio €	Change in %
   Revenue	35.91 54.03	-18.12	-33.5%
   EBITDA	4.06 5.32	-1.26	-23.7%
   Depreciation/impairment	-1.19 -1.29	0.10	-7.9%
   EBIT	2.87 4.03	-1.16	-28.7%

   EBITDA margin	11.3% 9.8%
   EBIT margin	8.0% 7.5%

   Share in consolidated sales 16.3% 21.2%

   The revenue decrease in this division as compared to the previous year is due to the missing activities during the European football championship UEFA EURO 2016 in France. As European football championships only take place once every four years, the related revenues generated cannot be repeated in the subsequent business year.

   All other events proceeded as expected.

   In the first quarter of the business year 2017/2018, seven Formula 1 grand prix races took place. The VIP guests enjoyed the usual DO & CO culinary delights in Shanghai, Bahrain, Sotchi, Barcelona, Monaco, Montreal and Baku.

   Moreover, the DO & CO event team was again in charge of the catering to VIP guests and the tennis players themselves at the ATP Tennis Masters Series in Madrid. One more highlight of the event calendar was the UEFA Champions League final held at the nation- al stadium of Wales in Cardiff, with DO & CO also being responsible for the culinary de- lights.

3. RESTAURANTS, LOUNGES & HOTEL

Share in consolidated sales 18.4% 16.5%

The level of utilisation of restaurant, café and lounge capacities remains largely favoura- ble and stable.

At the end of June 2017, the second Nespresso Café in London was opened. Fresh prod- ucts from the London-based DO & CO gourmet kitchen and Nespresso coffee are served in Soho.

In mid-June 2017, the first gourmet shop under the Henry brand was opened in Kiev. Overall, the division reports stable business.

SHARE

In the first quarter of the business year 2017/2018, the DO & CO share gained in value on the Vienna and Istanbul stock exchanges.

On the Vienna Stock Exchange, the DO & CO share gained 1.5%, closing at EUR 61.81 on 30 June 2017.

On the Istanbul Stock Exchange, DO & CO's share gained 6.0%, closing at TRY 250.10 on 30 June 2017.