OPERATING PROFIT AND COMPARABLE OPERATING PROFIT IMPROVED DURING THE SECOND QUARTER This is a summary of Wulff Group Plc’s half-year financial report for January -June 2016. Wulff Group’s half-year financial report for January-June 2016 is attached to this stock exchange release and is also available on the company’s website. JANUARY – JUNE 2016 BRIEFLY · Net sales totalled EUR 30.1 million (EUR 35.4 million). Net sales decreased by 15.1 percentages from the previous year. · EBITDA was EUR 0.3 million (EUR 0.6 million). Comparable EBITDA was EUR 0.1 million (EUR 0.8 million). · Operating profit (EBIT) was EUR 0.1 (EUR -0.4 million). Comparable operating profit (EBIT) amounted to EUR -0.1 million (EUR 0.4 million). · Earnings per share (EPS) were EUR -0.01 (EUR -0.14). · Equity-to-assets ratio increased to 48.6 percentages during the first half of the financial year (December 31, 2015: 46.4 %). · Wulff repeats its guidance: the operating profit for 2016 is estimated to be positive. APRIL – JUNE 2016 BRIEFLY · Net sales totalled EUR 14.6 million (EUR 16.3 million). Net sales decreased by 10.3 percentages from the previous year. · EBITDA was EUR 0.5 million (EUR 0.3 million). Comparable EBITDA was EUR 0.4 million (EUR 0.4 million). · Operating profit (EBIT) was EUR 0.4 million (EUR -0.6 million). Comparable operating profit (EBIT) was EUR 0.3 million (EUR 0.2 million). · Earnings per share (EPS) were EUR 0.04 (EUR -0.12). WULFF GROUP’S CHAIRMAN OF THE BOARD OF DIRECTORS HEIKKI VIENOLA Wulff Group’s Chairman of the Board of Directors Heikki Vienola: “Our business has developed positively during the second quarter of the financial year. We have invested in our competitiveness and renewed our operations – the increase in our operating profit during the second quarter of the financial year is the result of our customer-oriented and cost-efficient way of operating, even though our net sales decreased in comparison with the first half-year period of 2015. Focusing on our core business field has been the right decision in a tough market situation. We believe that 2016 as a whole will be positive for us. Domesticity, localness, listening to customers, and developing our operations together with our customers are important factors for us in building our future success. Over the remainder of this year, we will especially focus on growing our customer base.” GROUP’S NET SALES AND RESULT PERFORMANCE In January-June 2016 net sales totalled EUR 30.1 million (EUR 35.4 million), and EUR 14.6 million (EUR 16.3 million in the second quarter. The decrease in net sales compared to the previous year was affected by the general economic situation, the decrease in the products’ demand and divesting the unprofitable business gifts business. In January-June 2016 EBITDA was EUR 0.3 million (EUR 0.6 million) being 1.1 percentages (1.8 %) of net sales, and EUR 0.5 million (EUR 0.3 million) in the second quarter. In January-June 2016 the comparable EBITDA amounted to EUR 0.1 million (EUR 0.8 million) and EUR 0.4 million (EUR 0.4 million) in the second quarter. The January-June 2016 EBITDA included a car sales profit of EUR 0.2 million and of EUR 0.1 million in the second quarter that affected comparability. In 2015, the comparability of the second quarter EBITDA was affected by write-downs of inventories and fixed assets of EUR 0.2 million in January-June 2015 and 0.2 million in the second quarter relating to the business gifts business. In January-June 2016 the operating profit (EBIT) amounted to EUR 0.1 million (EUR -0.4 million) being 0.4 percentages (-1.3 percentages) of net sales, and EUR 0.4 million (EUR -0.6 million) in the second quarter. In January-June 2016 the comparable operating profit (EBIT) amounted to EUR -0.1 million (EUR 0.4 million) and EUR 0.3 million (EUR 0.2 million) in the second quarter. The January-June 2016 operating profit included a car sales profit of EUR 0.2 million and EUR 0.1 million in the second quarter that affected comparability. The comparability of the second quarter 2015 EBIT was affected by write-downs of inventories and fixed assets of EUR 0.2 million and a write-down of goodwill of EUR 0.7 million in January-June 2015 and in the second quarter relating to the business gifts business. The comparable operating profit improved by EUR 0.1 million in the second quarter from the previous year. Successful performance increasing measures and cost savings have had a positive effect on profitability. The comparable operating profit was EUR 0.4 million weaker than the previous year due to the decrease in net sales in the first quarter. Typically in the industry and in the Group, the profit and cash flow are generated in the last quarter of the year. In January-June 2016 employee benefit expenses amounted to EUR 6.8 million (EUR 7.2 million), and EUR 3.4 million (EUR 3.5 million) in the second quarter. Other operating expenses amounted to EUR 3.8 million (EUR 4.2 million) in January-June 2016, and EUR 1.9 million (EUR 1.9 million) in the second quarter. Employee benefit and other operating expenses were still affected by the implemented successful cost-saving measures. To improve its profitability, Wulff Group continues to examine its cost structure as part of ongoing reforms. In January-June 2016 the financial income and expenses totalled (net) EUR -0.2 million (EUR -0.03 million) including interest expenses of EUR 0.1 million (EUR 0.1 million) and mainly currency-related other financial items (net) EUR -0.1 million (EUR 0.07 million). In the second quarter, the financial income and expenses (net) totalled EUR -0.1 million (EUR -0.03 million). In January-June 2016 the result before taxes was EUR -0.04 million (EUR -0.5 million), and EUR 0.3 million (EUR -0.7 million) in the second quarter. In January-June 2016 the net profit was EUR -0.1 million (EUR -0.9 million), and EUR 0.3 million (EUR -0.7 million) in the second quarter. Earnings per share (EPS) were EUR -0.01 (EUR -0.14) in January-June 2016, and EUR 0.04 (EUR -0.12) in the second quarter. KEY FIGURES +-----------------------------------------+-----+-----+-----+-----+---------+ | |II |II |I-II |I-II |I-IV | +-----------------------------------------+-----+-----+-----+-----+---------+ |EUR 1000 |2016 |2015 |2016 |2015 |2015 | +-----------------------------------------+-----+-----+-----+-----+---------+ |Net sales |14 |16 |30 |35 |68 820 | | |595 |265 |085 |439 | | +-----------------------------------------+-----+-----+-----+-----+---------+ |Change in net sales, % |-10,3|-7,1 |-15,1|-5,0 |-7,3 % | | |% |% |% |% | | +-----------------------------------------+-----+-----+-----+-----+---------+ |EBITDA |519 |252 |325 |633 |2 019 | +-----------------------------------------+-----+-----+-----+-----+---------+ |EBITDA margin, % |3,6 %|1,5 %|1,1 %|1,8 %|2,9 % | +-----------------------------------------+-----+-----+-----+-----+---------+ |Operating profit/loss |419 |-631 |106 |-446 |505 | +-----------------------------------------+-----+-----+-----+-----+---------+ |Operating profit/loss margin, % |2,9 %|-3,9 |0,4 %|-1,3 |0,7 % | | | |% | |% | | +-----------------------------------------+-----+-----+-----+-----+---------+ |Profit/Loss before taxes |318 |-656 |-47 |-475 |354 | +-----------------------------------------+-----+-----+-----+-----+---------+ |Profit/Loss before taxes margin, % |2,2 %|-4,0 |-0,2 |-1,3 |0,5 % | | | |% |% |% | | +-----------------------------------------+-----+-----+-----+-----+---------+ |Net profit/loss for the period |280 |-796 |-81 |-886 |-195 | |attributable to equity holders of the | | | | | | |parent company | | | | | | +-----------------------------------------+-----+-----+-----+-----+---------+ |Net profit/loss for the period, % |1,9 %|-4,9 |-0,3 |-2,5 |-0,3 % | | | |% |% |% | | +-----------------------------------------+-----+-----+-----+-----+---------+ |Earnings per share, EUR (diluted = non |0,04 |-0,12|-0,01|-0,14|-0,03 | |-diluted) | | | | | | +-----------------------------------------+-----+-----+-----+-----+---------+ |Return on equity (ROE), % |2,4 %|-5,7 |-0,5 |-7,2 |-1,6 % | | | |% |% |% | | +-----------------------------------------+-----+-----+-----+-----+---------+ |Return on investment (ROI), % |3,1 %|-4,0 |0,1 %|-2,0 |2,7 % | | | |% | |% | | +-----------------------------------------+-----+-----+-----+-----+---------+ |Equity-to-assets ratio at the end of |48,6 |44,3 |48,6 |44,3 |46,4 % | |period, % |% |% |% |% | | +-----------------------------------------+-----+-----+-----+-----+---------+ |Debt-to-equity ratio at the end of period|24,7 |39,3 |24,7 |39,3 |23,8 % | | |% |% |% |% | | +-----------------------------------------+-----+-----+-----+-----+---------+ |Equity per share at the end of period, |1,73 |1,74 |1,73 |1,74 |1,84 | |EUR * | | | | | | +-----------------------------------------+-----+-----+-----+-----+---------+ |Net cash flow from operating activities |587 |1 287|-62 |-36 |1 693 | +-----------------------------------------+-----+-----+-----+-----+---------+ |Investments in non-current assets |0 |44 |26 |138 |161 | +-----------------------------------------+-----+-----+-----+-----+---------+ |Investments in non-current assets, % of |0,0 %|0,3 %|0,1 %|0,4 %|0,2 % | |net sales | | | | | | +-----------------------------------------+-----+-----+-----+-----+---------+ |Treasury shares held by the Group at the |79 |79 |79 |79 |79 000 | |end of period |000 |000 |000 |000 | | +-----------------------------------------+-----+-----+-----+-----+---------+ |Treasury shares, % of total share capital|1,2 %|1,2 %|1,2 %|1,2 %|1,2 % | |and votes | | | | | | +-----------------------------------------+-----+-----+-----+-----+---------+ |Number of total issued shares at the end |6 607|6 607|6 607|6 607|6 607 628| |of period |628 |628 |628 |628 | | +-----------------------------------------+-----+-----+-----+-----+---------+ |Personnel on average during the period |217 |247 |221 |236 |233 | +-----------------------------------------+-----+-----+-----+-----+---------+ |Personnel at the end of period |216 |233 |216 |233 |226 | +-----------------------------------------+-----+-----+-----+-----+---------+ RISKS AND UNCERTAINTIES IN THE NEAR FUTURE The demand for office supplies is strongly affected by the general economic development. During the economic downturn, organizations’ personnel lay-offs and cost-saving initiatives affect the purchasing behaviour of corporate customers. As the ongoing economic uncertainty continues, the cost saving measures will have an effect on the ordering behaviour of corporate customers. The decrease and changes in the allocation criteria of the internationalization subsidies granted by the Ministry of Employment and the Economy affect companies’ chances of taking part in international fairs. Half of the Group’s net sales come from other than euro-currency countries. Fluctuation of the currencies affect the Group’s net result, however the effect of the fluctuation is expected to be moderate. EVENTS AFTER THE REPORTING PERIOD The Group has not had any significant events after the reporting period. MARKET SITUATION AND FUTURE OUTLOOK Wulff is the most significant Nordic player in its field. Wulff’s mission is to help its corporate customers to succeed in their own business by providing them with leading-edge products and services in a way best suitable to them. The markets have been consolidating in the past few years and the Nordic markets are expected to consolidate in the future as well. Wulff is prepared to carry out new strategic acquisitions and as a listed company, Wulff is in a good position to be a more active player than its competitors. Wulff does not believe the demand for office supplies to increase quickly. As the uncertainty continues, it is important to continue to go through the cost structure and enhance the company’s operations. Wulff’s goal is to continue to improve the profitability of its business operations. Wulff estimates the 2016 result to be positive. In the industry, it is typical that the result and cash flow are generated in the last quarter. WULFF GROUP PLC’S FINANCIAL REPORTING Wulff Group Plc will release the following financial reports in 2016: Interim Report, January-September 2016 Thursday November 3, 2016 In Helsinki on August 3, 2016 WULFF GROUP PLC BOARD OF DIRECTORS Further information: Chairman of the Board of Directors Heikki Vienola tel. +358 9 5259 0050 or mobile: +358 50 65 110 e-mail: heikki.vienola@wulff.fi DISTRIBUTION NASDAQ OMX Helsinki Oy Key media www.wulff-group.com
WULFF GROUP PLC’S HALF-YEAR FINANCIAL REPORT FOR JANUARY 1 – JUNE 30, 2016
| Source: Wulff-Yhtiöt Oyj
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