Koninklijke Reesink NV : TRADING UPDATE 3rd QUARTER 2014

Consolidated revenue in the first three quarters amounted to € 361.7 million (2013:
€ 151.6 million). Organic1 revenue increased by 3.6%. The operating result excluding interest, depreciation and amortisation (EBITDA) increased to € 22.8 million (2013:
€ 8.7 million). The pro forma EBITDA over the same period in 2013 was € 20.0 million. The operating result (EBIT) increased from € 6.4 million to € 15.0 million. The pro forma operating result over the same period in 2013 was € 12.2 million.

Reesink Equipment

The revenue generated by Reesink Equipment rose to € 322.8 million (2013: € 125.4 million). Reesink Equipment's organic revenue was up 4.9%.

Reesink Green Equipment

Partly due to the addition of CT Agro, the revenue of Reesink Green Equipment increased by nearly 50%, although part of this organic increase in revenue was given back in the third quarter. Nevertheless, this still amounted to 8.4%. Apart from the fact that the third quarter is often a weaker period for this division, agricultural customers appeared to be less interested in investing due to lower prices for agricultural products. Revenue from landscape maintenance and turfcare was good in the third quarter. The third quarter was an important period for CT Agro in connection with the sale and supply of harvesting machines. Sales started slowly, however the budgeted number of machines was achieved in a period of a few weeks.

Reesink Construction Equipment

Reesink Construction Equipment achieved an increase in revenue of 10.3%. Organic revenue (Hans van Driel like-for-like 2013) was up 2.5% in difficult market conditions. The increase was mainly due to higher revenue from Huur&Stuur (+21%). Revenue from earth-moving machines was in line with previous levels, mainly due to strong sales of the new brand Kobelco.

Reesink Material Handling Equipment

Reesink Material Handling Equipment delivered a large number of new units in the third quarter, and thus increased its revenue at third quarter end by 3.1% compared to the same period in 2013. There is however heavy pressure on margins for sales new, especially in the Netherlands and Belgium. This margin pressure in combination with increasing operating costs meant that the contribution to the result was not yet up to
standard.

1 2013 like-for-like Reesink Material Handling Equipment, Motrac Hydraulics and Hans van Driel, 2014 excluding CT Agro

Reesink Industries

Due to the addition of Motrac Hydraulics, the revenue of Reesink Industries increased by
50%. Organic revenue declined by 10%. Sales of personal protection items were slightly lower. Revenue from steel was significantly down due to low steel prices. Motrac Hydraulics achieved a small increase in revenue.

Market developments and outlook for 2014

The markets in which we operate present a mixed picture. The lack of liquidity in the market continues to stand in the way of a recovery in the markets for larger capital goods in the Netherlands and Belgium. We are still seeing positive developments in a number of segments of the agricultural sector, landscape maintenance and turfcare. The season for pre-sale of machines for silage has now started, and the order book in this product group is developing well. In Kazakhstan, grain prices are at good levels, however winter has already started in some regions and the agricultural sector is entering its usual period of hibernation. The market for material handling is stable, but there is heavy margin pressure. The conclusion of long-term maintenance contracts with our customers is an important feature here. A good economic recovery, especially in the construction sector, is important for Reesink Industries. For all our companies, control of working capital remains a focus of attention.

Apeldoorn, 28 October 2014 The Management Board of Royal Reesink N.V.

Profile of Royal Reesink

Royal Reesink focuses on two segments: Reesink Equipment and Reesink Industries.
In Reesink Equipment, our businesses are involved in the distribution of leading brands and/or the delivery of strong concepts for agriculture and horticulture, landscape maintenance, material handling and civil engineering. The products are supplied either directly or through dealers to farmers, contractors, green area companies, golf courses, municipalities, government bodies, water boards, foresters and logistics customers operating in the food & agri, non-food, industrial, transfer (harbours) and civil engineering sectors.
In Reesink Industries, our businesses are involved as a distributor of steel, personal protection items and hydraulic components and systems. In this segment, we supply mainly steel manufacturers, building sites, installation production companies, technical wholesalers, the offshore and shipping industry, machinery manufacturers and the agricultural industry.
See also: royalreesink.com

For further information please contact:

Mr G. van der Scheer, CEO Royal Reesink N.V. Tel.: +31 (0)575 599 301

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