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HAWESKO Holding AG

Quarterly Report Nov 5, 2015

200_10-q_2015-11-05_ebbdb4b1-6e24-4c88-a6c0-c186fb9401cc.pdf

Quarterly Report

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Hawesko Holding AG Hamburg

ISIN DE0006042708 Reuters HAWG.DE, Bloomberg HAW GR

Quarterly financial report to 30 September 2015

Hamburg, 5 November 2015

Highlights
in € (millions)
Nine months (1.1.–30.9.) 3rd quarter (1.7.–30.9.)
2015 2014 +/– 2015 2014 +/–
Consolidated sales 322.7 322.4 0.1% 105.4 103.4 2.0%
Result from
operations (EBIT)
6.8 9.6 –28.8% 4.6 2.5 85.9%
– Adjusted for non
recurring expenditures
13.6 11.3 20.0% 4.6 3.2 45.5%
Consolidated net
income excluding
non-controlling
interests
3.9 6.6 –40.2% 2.8 1.6 74.1%

Dear shareholders,

We are pleased to report a successful start into a new phase of development in the Hawesko Group! Business performance is very satisfactory and the focus on profitable sales is already bearing fruit. This new orientation has become necessary because the Hawesko Group has now reached a size that requires us to focus even more intensively on developing the Group's structures further in a strategic sense. We are currently in the process of finding better solutions, more appropriate to the size of the Group, to increase internal efficiency, to ensure that collaboration within the Group is even more effective than before and to strengthen the cross-group activities. Overall, by implementing the concepts we are developing, we will increase the clout of the company and free up resources with which we can further strengthen our market presence.

Particularly with regard to earnings, business performance in the year to date has been very satisfactory: On a like-for-like basis, EBIT rose by 20.0% after the first nine months of the year, and in the quarter under review it soared by 45.5%. It is especially noteworthy that all business segments increased their results from operations in both periods disproportionately compared to sales. In the quarter under review, consolidated sales rose by 2.0%. After the decline of 2% in the first quarter and

the slightly positive figure of 0.4% in the second quarter, this is a noticeable acceleration. Overall, after nine months our figures are just above the previous year's level and within expectations.

The specialist wine-shop segment at Jacques' posted its usual solid and consistent growth. Moreover, we opened two new outlets in Berlin in the quarter under review, in order to reflect the high population growth of the German capital. In the wholesale segment, domestic business proceeded apace at a high level. In Switzerland, on the other hand, the appreciation of the Swiss franc continued to depress demand and put noticeable pressure on earnings. In the year after its anniversary, the distanceselling segment is continuing to focus consistently on more profitable sales and posted significantly higher profitability.

In summary, we can say that the new orientation is proceeding at full speed and that a mood of excitement and optimism prevails throughout the Group. In line with this, our future colleague and chief executive officer Thorsten Hermelink will join us and complete the management board on 1 December 2015. Even with the great willingness of everyone involved to rethink and optimise structures and workflows in the Hawesko Group and thus to strengthen our competitiveness even more, the foundation of success for our company will remain unchanged: as in the past, we are committed in the future to offer our customers top-quality wines and outstanding service. Moreover, we will do everything further to refine our keen instinct, developed over decades, for the needs of our customers. Accordingly, we will continue to optimise the entire organisation – from purchasing to sales – on a continuous basis. And we will continuously review our work to see how we can meet these needs as effectively and efficiently as possible. With this attitude we enter into the fourth quarter and thus the important holiday business.

We wish you all a very merry Christmas and a good start to the new year! Enjoy the festive season – preferably with premium wines from your Hawesko Group.

Best regards

Your Management Board

Alexander Nikolas Bernd G. Ulrich
Borwitzky von Haugwitz Siebdrat Zimmermann

• • • • • • • • • • •

INTERIM MANAGEMENT REPORT

GENERAL SITUATION

The federal government expects stable continuation of the current positive economic situation in Germany. In its current autumn forecast, it assumes that the real gross domestic product will increase by 1.7% in 2015 and 1.8% in 2016. According to the report, the German economy is still in good shape despite muted global economic perspectives, due primarily to positive development in the job market together with increasing income and moderately rising prices. Thus, the main driver of the positive development is private consumption, which is expected to rise by an annual average of 1.8% in both years (adjusted for inflation).

The Gesellschaft für Konsumforschung (GfK) comes to the same conclusion: despite another slight decline in its consumption index for Germany in September, it noted that consumers still assume that the German economy will grow this year and that their personal financial situations will continue to

improve. This optimism is based on the robust employment market, which also offers room for considerable increases in employees' income. The extremely low inflation rate also contributes to the real growth in income.

These general conditions remain favourable to the Hawesko Group. With this in mind, the Hawesko management board expects the consumer mood to remain positive and the dynamics of the economy to be favourable over the course of the current year, which should also benefit the wine market and in particular the important holiday business.

BUSINESS PERFORMANCE

Financial performance

Third quarter

During the period from July to September 2015, sales of the Hawesko Group amounted to € 105.4 million, up by 2.0% over the same quarter of the previous year (€ 103.4 million). In the quarter under review, sales developed in the individual business segments as follows: The specialist wine-shop segment (Jacques' Wein-Depot) increased its sales by 1.6% to € 31.3 million (previous year: € 30.8 million). Sales in the wholesale segment rose by 6.8% to 39.7 million (previous year: € 37.2 million). In the distance-selling segment, sales amounted to € 34.5 million, a decline of 2.8% from the figure for the strong quarter in the previous year (€ 35.5 million). The consolidated operating result (EBIT) in the third quarter of 2015 amounted to € 4.6 million (previous year: € 2.5 million). The EBIT margin thereby improved from 2.4% (adjusted for extraordinary costs: 3.1%) in the previous year to 4.4% in the quarter under review.

The specialist wine-shop segment (Jacques' Wein-Depot) posted a sales increase of 1.6%, after an increase of 5.4% over the comparable period of 2013 was achieved in this quarter in 2014, due primarily to the anniversary activities. In the quarter under review, two new outlets were opened in Berlin, so that at 30 September 2015 there were 290 Jacques' Wein-Depots in operation, all of them in Germany (same date in the previous year: 286, of which 283 were in Germany). New-customer acquisition improved once again in the quarter under review compared to the previous year. On a likefor-like basis, sales in the stationary specialist retail segment rose by 0.9% compared to the third quarter of 2014. This development was the result of an increase in the average sales receipt. EBIT in this segment rose from € 2.7 million to € 2.9 million, by 9.2%, and thus proportionately higher than sales.

Thanks to the continuing strong performance in its core business in Germany, sales in the wholesale segment increased by 6.8% compared to the same quarter in the previous year. In contrast, the appreciation of the Swiss franc put pressure on the domestic demand in Switzerland. In addition, a decline in sales resulted from the planned sale of the unprofitable wine bars operated by Vogel Vins in the French-speaking part of the country. The EBIT in the wholesale segment doubled thanks to improved profitability at home and abroad, rising from € 0.4 million in the same quarter of the previous year to € 1.0 million in the quarter under review.

Quarterly sales in the distance-selling segment were –2.8% below the level of the previous year. This is explained by the high basis for comparison: in the third quarter of 2014 the anniversary activities of Hanseatisches Wein- und Sekt-Kontor hawesko.de generated an increase of 14.2% compared to the third quarter of 2013. In contrast, sales growth at Wein & Vinos, The Wine Company (distance selling to Sweden) and Carl Tesdorpf – Weinhandel zu Lübeck had a positive impact. The number of active customers in the distance-selling segment rose once again to the reference date. In the third quarter, 44% of segment sales were achieved online, compared to 43% in the previous quarter. The EBIT in

the distance-selling segment increased by more than one third to € 2.1 million (same quarter in the previous year: € 1.5 million). This is due primarily to the increase in the results at Wein & Vinos and Hanseatisches Wein- und Sekt-Kontor hawesko.de.

Compared to the previous year, consolidated gross profit rose by € 0.5 million to € 44.0 million, corresponding to a margin of 41.7% (same quarter in the previous year: 42.0%). The lower trading margin for the Group was due to a higher share of sales of the wholesale segment and the decline in the trading margin there. The other operating income of € 5.0 million (same quarter of the previous year: € 4.1 million) consisted for the most part of rental and leasing income at Jacques' as well advertising allowances. Personnel expenses decreased in absolute terms by € 0.2 million to € 12.6 million in the second quarter; as a share of sales they fell by 0.5 percentage points to 12.0%. As in the second quarter, the decline was due mainly to the sale of the wine bars in Switzerland and the termination of the wholesale operations in Bordeaux.

Other operating expenses and other taxes compared to those of the previous year as follows:

In € millions
Rounding differences are possible
1.7.–
30.9.2015
1.7.–
30.9.2014
Advertising 8.7 9.2
Commissions to partners 8.0 7.5
Delivery costs 4.7 4.9
Rental and leasing 2.8 2.9
Other 6.4 6.4
30.6 30.9

Advertising expenses in terms of sales fell to 8.3%; in the previous year this figure was 8.9% due to the anniversary activities. Expenses for commissions rose from 7.3% to 7.6%, while expenses for shipping declined from 4.8% to 4.4%. Overall, other operating expenses and other taxes amounted to € 30.6 million. In the previous year, this figure was € 30.9 million (including non-recurring expenses for consulting services of € 0.7 million). These expenses thus accounted for 29.0% of sales in the quarter under review, compared to 29.9% in the third quarter of 2014.

The consolidated result of operations (EBIT) amounted to € 4.6 million in the third quarter (previous year: € 2.5 million and adjusted for non-recurring expenditures: € 3.2 million). At 4.4%, the EBIT margin was up from the previous year's level of 3.1% on the adjusted basis.

As in the same quarter of the previous year, the financial result amounted to € –0.3 million, including expense from the subsequent measurement of a financial liability as per IAS 39 and income from investments. The result before taxes on income amounted to € 4.4 million (previous year: € 2.2 million). The anticipated rate of tax expenditures in the quarter under review is 33.6%. Consolidated net income after deductions for non-controlling interests amounted to €2.8 million (previous year: € 1.6 million). The profit per share amounted to € 0.31, after € 0.18 in the previous year. This is based on the number of 8,983,403 shares for the period under review, as in the previous year.

First nine months

In the first nine months of fiscal year 2015, the Group achieved sales of € 322.7 million, which corresponds to the level of the previous year (€ 322.4 million). The consolidated gross profit margin rose by 0.1 percentage points from 41.5% to 41.6% of sales.

Personnel expenses amounted to € 44.8 million and accounted for 13.9% of sales (previous year: € 38.4 million and 11.9%): in the reporting period, this included non-recurring charges from a personnel provision for the fulfilment of contractual obligations in conjunction with the departure of the former chief executive officer in the amount of approximately € 6 million. During the nine-month period, other operating expenses and other taxes compared to those of the previous year as follows:

In € millions
Rounding differences are possible
1.1.–
30.9.2015
1.1.–
30.9.2014
Advertising 26.6 28.5
Commissions to partners 24.0 23.3
Delivery costs 14.4 14.7
Rental and leasing 8.5 8.5
Other 19.9 19.4
93.5 94.5

In the first nine months of 2014 the operating result (EBIT) amounted to 2.1% (previous year: 3.0%) of sales or € 6.8 million (previous year: € 9.6 million). Adjusted for non-recurring costs in both periods, an EBIT margin of 4.2% was achieved, up from 3.5% in the previous year.

On inspection of the individual segments, it is to be stated that EBIT at Jacques' rose proportionately higher than sales, namely by 5.5% to € 9.3 million. In the wholesale segment, the rise of 21.6% to € 2.5 million resulted from domestic business as well as the elimination of the charges from the former French subsidiary. The EBIT in the distance-selling segment rose by 35.5% to € 6.1 million thanks to improved profitability. The item "Miscellaneous/Consolidation" includes non-recurring charges in the reporting period from the aforementioned personnel provision in conjunction with the release of the former chief executive officer as well as follow-on costs of € 0.3 million from the takeover process. In the previous year, non-recurring costs of €1.8 million for consulting services were incurred.

The financial result amounted to € –0.8 million (previous year: € –0.4 million); in the result for the same period in the previous year, € 0.5 million was realised in the subsequent measure of a financial instrument as per IAS 39. The result before taxes on income amounted to € 6.0 million (previous year: € 9.1 million). Consolidated net income after deductions for non-controlling interests amounted to € 3.9 million, compared to € 6.6 million in the same period of the previous year. The profit per share amounted to € 0.44, compared to € 0.73 for the same period in the previous year. The number of shares in the reporting period was 8,983,403 (as in the previous year).

Net worth

Structure of the consolidated balance

sheet in € millions, rounding differences are possible

Assets 30.9.2015 31.12.2014 30.9.2014
Long-term assets 57.2 28% 60.3 28% 59.9 29%
Short-term assets 150.3 72% 156.9 72% 149.8 71%
Balance sheet total 207.5 100% 217.2 100% 209.8 100%
Liabilities and shareholders' equity
Equity 83.0 40% 91.1 42% 82.7 39%
Long-term provisions and liabilities 21.7 10% 17.1 8% 21.7 10%
Short-term liabilities 102.8 50% 109.0 50% 105.4 50%
Balance sheet total 207.5 100% 217.2 100% 209.8 100%

Changes since the reference date on 31 December 2014

The balance sheet total at 30 June 2015 was € 207.5 million, corresponding to a reduction of € 9.7 million compared to the total at 31 December 2014. Long-term assets declined by €3.2 million, while the short-term assets fell by € 6.5 million. Their share of the balance sheet total did not change. With regard to short-term assets, a reduction in trade receivables was noted (trade receivables typically reach their highest level at 31 December).

Total equity capital declined by € 8.2 million compared to the total at 31 December 2014 after payment of the dividend. Long-term provisions and liabilities amounted to € 21.7 million and rose by € 4.6 million. The deviation is due primarily to the formation of a provision to meet contractual obligations to the former chief executive officer. The short-term liabilities were reduced by € 6.2 million. The primary reason for this was a reduction in trade receivables (trade receivables typically reach their highest level at 31 December) and the other receivables. In contrast, short-term borrowings rose.

Changes from the previous year's reference date 30 September 2014

Compared to the previous year's reference date (30 September 2014), the balance sheet total declined by € 2.3 million. With regard to long-term assets, the intangible and tangible assets declined due to depreciations and the sale of tangible assets in conjunction with the sale of the wine bars in Switzerland. Short-term assets at € 150.3 million increased only slightly compared to the reference date of the previous year (€ 149.8 million).

With regard to the long-term provisions and liabilities, primarily the long-term borrowings were reduced due to the scheduled repayments of the bank loan for the acquisition of the majority interest in Wein & Vinos. In contrast, the other long-term liabilities increased due to the aforementioned provision for the fulfilment of contractual obligations. Short-term liabilities declined by € 2.5 million, particularly due to a reduction in trade accounts payable.

The working capital requirement at 30 September 2015 remained at the level of the reference date in the previous year and remained nearly unchanged in terms of sales.

Financial performance

Liquidity analysis

Cash flow from current operations amounted to € –6.4 million in the first nine months (previous year: € –10.5 million). This was due mainly to the smaller build-up of inventories and the higher adjusted result before taxes on income. Due to the seasonal nature of the business, cash flow from ongoing business activity is usually negative in the first nine months of the fiscal year.

Consolidated cash flow
in € millions, rounding differences are possible
1.1.–
30.9.2015
1.1.–
30.9.2014
Cash flow from current operations –6.4 –10.5
Cash flow from investment activity –3.3 –3.5
Cash flow from financing activities 7.5 –0.6

At € 3.3 million, the net funds employed for investment activities declined slightly in the first nine months from the previous year's figure (€ 3.5 million) due to proceeds from the sale of the tangible assets of the Swiss wine bars.

At € –10.1 million, free cash flow improved over the comparable period in the previous year (€–14.9 million), and was calculated from the net outflow of payments from current operations (€ –6.4 million), less funds employed for investment activities (€ –3.3 million) and interest paid out (€ –0.4 million).

Investment analysis

Investments in tangible and intangible assets in the first nine months of 2015 amounted to € 4.1 million (same period in the previous year: € 3.7 million). The investments in intangible assets of € 1.3 million (previous year: € 1.2 million) were related primarily to software in the distance-selling segment. The investments in tangible assets of € 2.8 million (previous year: € 2.5 million) related primarily to the modernisation of the depots in the specialist wine-shop segment and replacement and expansion investments in the wholesale segment as well as such investments in the distance-selling segment.

REPORT ON POST-BALANCE SHEET DATE EVENTS

Events of particular significance for the evaluation of the assets, finances and earnings of Hawesko Holding AG and the Group did not occur after the conclusion of the period under review.

REPORT ON OPPORTUNITIES AND RISK

There were no significant changes in the risks and opportunities of Hawesko Holding AG compared to the situation described in the 2014 annual report, except for one factor: with regard to one of the highvolume suppliers, the probability that an existing contract might not be extended increased from class B to class A. The management board emphasises that the Hawesko Group is not dependent on specific suppliers and refers to the risk report in the 2014 annual report, pages 49 et seq. in this regard.

REPORT ON EXPECTED DEVELOPMENTS

Outlook

There were no significant changes in the forecast for fiscal year 2015 of the Hawesko management board compared to the situation described in the 2014 annual report. Overall, the board anticipates a slight increase in sales of roughly 1% compared to the previous year. The general economic and business conditions in Germany are still classified as good. The Hawesko management board notes that the financial figures for the first nine months of 2015 are within expectations. Consolidated EBIT for 2015 should be on the order of € 26–27 million (previous year: €20.1 million) on an adjusted basis after non-recurring charges resulting from the takeover process (unadjusted: € 19–20 million). In the previous year, an EBIT – adjusted for non-recurring expenditures – of € 24.6 million was achieved. The financial result will presumably be lower than in the previous year and consolidated net income after deductions for interests of non-controlling partners is expected to be in a bandwidth between € 12–13 million (2014: € 14.8 million). The management board expects free cash flow to be on the order of € 17–20 million for 2015; in 2014 this figure was € 13 million.

Hawesko Holding AG
Profit and loss statement for the first nine months of 2015 (as per IFRS)
(in € millions, unaudited, rounding differences possible) 1.1.–30.9.
2015
1.1.–30.9.
2014
Sales revenues 322.7 322.4
Increase (decrease) in finished goods inventories 0.6 0.7
Other production for own assets capitalised 0.1 0.1
Other operating income 15.5 13.0
Cost of purchased goods –188.5 –188.6
Personnel expenses –44.8 –38.4
Depreciation and amortisation –5.3 –5.1
Other operating expenses and other taxes –93.5 –94.5
Result from operations (EBIT) 6.8 9.6
Financial result
Interest earnings/expenditures –0.5 –1.0
Other financial result –0.3 0.5
Income from long-term equity investments 0.1 0.1
Result before taxes on income 6.0 9.1
Taxes on income and deferred tax expenses –2.0 –2.8
Consolidated net income 4.0 6.3
of which
— shareholders' equity in Hawesko Holding AG 3.9 6.6
— allocable to non-controlling interests 0.1 –0.3
Earnings per share(in €, undiluted = diluted) 0.44 0.73
Average number of shares in circulation
(Numbers in thousands, undiluted = diluted)
8,983 8,983
Hawesko Holding AG
Profit and loss statement for the third quarter of 2015 (as per IFRS)
(in € millions, unaudited, rounding differences possible) 1.7.–30.9.
2015
1.7.–30.9.
2014
Sales revenues 105.4 103.4
Increase in finished goods inventories 0.6 0.5
Other production for own assets capitalised 0.0 0.1
Other operating income 5.0 4.1
Cost of purchased goods –61.5 –60.0
Personnel expenses –12.6 –12.9
Depreciation and amortisation –1.8 –1.7
Other operating expenses and other taxes –30.6 –30.9
Result from operations (EBIT) 4.6 2.5
Financial result
Interest earnings/expenditures –0.2 –0.6
Other financial result –0.1 0.2
Income from long-term equity investments 0.0 0.0
Result before taxes on income 4.4 2.2
Taxes on income and deferred tax expenses –1.5 –0.7
Consolidated net income 2.9 1.5
of which
— shareholders' equity in Hawesko Holding AG 2.8 1.6
allocable to non-controlling interests
0.1 –0.2
Earnings per share (in €, undiluted = diluted) 0.31 0.18
Average number of shares in circulation
(Numbers in thousands, undiluted = diluted)
8,983 8,983
Hawesko Holding AG
Consolidated statement of comprehensive income for the period from 1 January to 30 September
(in € millions, unaudited,
rounding differences are possible)
1.1.–30.9.
2015
1.1.–30.9.
2014
Consolidated net income 4.0 6.3
Amounts that may not be rebooked in the profit and loss statement
in the future
Actuarial gains and losses resulting from remeasurements of
defined-benefit pension plans including deferred tax liabilities
Amounts that may be rebooked in the profit and loss statement in
the future
0.2 0.1
Effective portion of profits/losses from cash flow hedges
including deferred tax liabilities
0.0 0.0
Currency translation differences 0.2 0.0
Other comprehensive income 0.2 0.1
Total comprehensive income 4.3 6.4
of which
– shareholders' equity in Hawesko Holding AG 4.0 6.6
– allocable to non-controlling interests 0.3 –0.3

Hawesko Holding AG

Consolidated statement of comprehensive income for the period from 1 January to 30 September

(in € millions, unaudited,
rounding differences are possible)
1.7.–30.9.
2015
1.7.–30.9.
2014
Consolidated net income 2.9 1.5
Amounts that may not be rebooked in the profit and loss statement
in the future
Actuarial gains and losses resulting from remeasurements of
defined-benefit pension plans including deferred tax liabilities
Amounts that may be rebooked in the profit and loss statement in
the future
–0.0 0.0
Effective portion of profits/losses from cash flow hedges
including deferred tax liabilities
0.0 0.0
Currency translation differences –0.1 0.0
Other comprehensive income –0.0 0.0
Total comprehensive income 2.9 1.5
of which
– shareholders' equity in Hawesko Holding AG 2.9 1.6
– allocable to non-controlling interests –0.0 –0.1
Hawesko Holding AG
Consolidated balance sheet (as per IFRS)
(in € millions, unaudited,
30.9.2015 31.12.2014 30.9.2014
rounding differences are possible)
Assets
Long-term assets
Intangible assets
32.0 33.0 33.1
Tangible assets 20.6 21.3 21.3
Investments accounted for using the equity method 0.5 0.5 0.6
Other financial assets 0.2 0.2 0.2
Advance payments on stocks
Receivables and other assets
1.1
1.1
2.4
1.2
1.7
1.1
Deferred tax liabilities 1.6 1.7 1.9
57.2 60.3 59.9
Short-term assets
Inventories 101.2 95.4 106.2
Trade receivables
Receivables and other assets
31.8
6.5
44.5
3.7
32.0
6.5
Receivables from taxes on income 2.1 2.4 1.0
Cash in banking accounts and cash on hand 8.7 10.9 4.2
150.3 156.9 149.8
207.5 217.2 209.8
Liabilities
Shareholders' equity
Subscribed capital of Hawesko Holding AG 13.7 13.7 13.7
Capital reserve 10.1 10.1 10.1
Retained earnings 53.3 61.0 52.8
Other reserves
Shareholders' equity in Hawesko Holding AG
–0.1
76.9
–0.1
84.7
–0.0
76.5
Non-controlling interests 6.0 6.5 6.2
83.0 91.1 82.7
Long-term provisions and liabilities
Provisions for pensions 1.1 1.1 0.9
Other long-term provisions 1.5 1.4 1.2
Borrowings 1.5 2.5 5.0
Advances received
Other liabilities
2.3
14.6
1.2
10.2
1.5
12.2
Deferred tax liabilities 0.8 0.7 1.0
21.7 17.1 21.7
Short-term provisions and liabilities
Non-controlling interests in the capital of unincorporated
subsidiaries 0.1 0.1 0.0
Borrowings 35.7 14.5 33.3
Advances received
Trade accounts payable
5.1
44.5
5.4
65.8
5.6
49.4
Income taxes payable 0.3 0.5 1.0
Other liabilities 17.1 22.8 16.1
102.8 109.0 105.4
207.5 217.2 209.8

Hawesko Holding AG

Consolidated Cash Flow Statement (as per IFRS)

(in € millions, unaudited,
rounding differences are possible)
1.1.–30.9.
2015
1.1.–30.9.
2014
Result before taxes on income 6.0 9.1
Depreciation and amortisation of intangible and tangible assets 5.3 5.1
Interest result 0.8 0.5
Result from the disposal of intangible and tangible assets –0.0
Result from the companies reported using the equity method
–0.1 –0.1
Dividend payments received from investments 0.1 0.0
Change in inventories –4.5 –7.2
Change in borrowings and other assets 14.0 15.2
Change in provisions 0.1 -0.5
Change in liabilities
(excluding borrowings)
–22.3 –29.7
Taxes on income paid out –5.9 –3.1
Net outflow of payments from current operations –6.4 –10.5
Outpayments for tangible and intangible assets –4.1 –3.7
Inpayments from the disposal of
intangible and tangible assets
0.9 0.2
Inpayments from the disposal of financial assets 0.0 0.0
Net funds employed for investing activities –3.3 –3.5
Outpayments for dividends –11.7 –14.8
Outpayments to non-controlling interests –0.8 –1.0
Payment of finance lease liabilities –0.3 –0.3
Change in short-term borrowings 22.9 18.7
Repayment of medium- and long-term borrowings –2.3 –2.3
Interest received 0.0 0.1
Interest paid out –0.4 –1.0
Net decrease/increase of funds from financing activities
7.5 –0.6
Net decrease of funds –2.2 –14.6
Funds at start of period 10.9 18.8
Funds at end of period 8.7 4.2
Other reserves
Subscribed
capital
Capital reserve Retained earnings Balancing items
from currency
translation
Revaluation
components of
pension
obligations
Reserve for
cash flow
hedge
Ownership of
interest of
Hawesko
Holding AG
shareholders
Non-controlling
interests
Total
Status at 1 January 2014 13.7 10.1 61.0 0.0 0.0 –0.1 84.7 7.4 92.1
Dividends –14.8 –14.8 –1.0 –15.8
Consolidated net income 6.6 6.6 –0.3 6.3
Other result 0.0 0.1 0.1 0.0 0.1
Deferred tax on other result –0.0 –0.0 –0.0
Status at 30 September
2014
13.7 10.1 52.8 0.0 0.0 –0.1 76.5 6.2 82.7
Status at 1 January 2015 13.7 10.1 61.0 0.0 –0.1 –0.1 84.7 6.5 91.1
Dividends –11.7 –11.7 –0.8 –12.4
Consolidated net income 3.9 3.9 0.1 4.0
Other result –0.0 0.1 0.0 0.2 0.3
Deferred tax on other result –0.0 –0.0 –0.0
Status at 30 September
2015
13.7 10.1 53.3 0.0 –0.1 –0.0 76.9 6.0 83.0

Quarterly financial report to 30 September 2015 • 14

Segment results for the 3rd quarter
(in € millions, rounding differences are possible)
Wine-shop Miscellaneous/
1.7.–30.9.2015 retail Wholesale Distance selling Consolidation Group
External sales 31.3 39.7 34.5 0.0 105.4
Operating result (EBIT) 2.9 1.0 2.1 –1.4 4.6
Wine-shop Miscellaneous/
1.7.–30.9.2014 retail Wholesale Distance selling Consolidation Group
External sales 30.8 37.2 35.5 0.0 103.4
Operating result (EBIT) 2.7 0.4 1.5 –2.1 2.5
Nine-month segment results
(in € millions, rounding differences are possible)
Wine-shop Miscellaneous/
1.1.–30.9.2015 retail Wholesale Distance selling Consolidation Group
External sales 95.1 122.2 105.4 0.0 322.7
Operating result (EBIT) 9.3 2.5 6.1 –11.1 6.8
Wine-shop Miscellaneous/
1.1.–30.9.2014 retail Wholesale Distance selling Consolidation Group
External sales 93.3 121.4 107.6 0.0 322.4
Operating result (EBIT) 8.8 2.0 4.5 –5.8 9.6

Appendix to the quarterly financial report to 30 September 2015

General principles: This report was written in accordance with International Accounting Standard (IAS) 34 according to the requirements of the current guidelines of the International Accounting Standards Board (IASB), London and the German Accounting Standard (DRS) 16. The standards and interpretations valid from 1 January 2015 have been applied to the interim financial statement.

The present quarterly financial report does not contain all of the information and data required for a consolidated financial statement and is therefore to be read in conjunction with the consolidated financial statement for 2014.

The interim financial statement and interim management report have neither been audited in accordance with Section 317 of the German Commercial Code (HGB) nor reviewed by an auditor.

Consolidation: The consolidation group of Hawesko Holding AG remains unchanged from that listed in the 2014 balance sheet.

Balance sheet and valuation principles: (1) The balance sheet and valuation methods used correspond as a rule to those applied in the last consolidated balance sheet at the end of the fiscal

year. A detailed discussion of these methods was published in the annual report for 2014. (2) With respect to the content regarding new standards and interpretations as well as changes in existing standards, please refer to the comments on pages 72 to 73 in the 2014 annual report. The application of the revised standards and interpretations has no significant influence on the net worth, financial situation, earnings or cash flow of the Hawesko Group. (3) Cyclical events which occur during the year, insofar as they are important, are delimited based on corporate planning.

Other information: (1) Events after the conclusion of the reporting period: Events of particular significance for the evaluation of the assets, finances and earnings of Hawesko Holding AG and the Group - as defined in IAS 10 - did not occur after the conclusion of the period under review. (2) Resolution for the appropriation of earnings for 2014: The annual general meeting of shareholders on 15 June 2015 decided to appropriate the unappropriated earnings reported in the annual accounts of Hawesko Holding AG of € 12,044,472.02 as follows: (a) payout of an ordinary dividend of €1.30 per entitled share. With a total number of 8,983,403 shares entitled to dividends, this amounts to a total of € 11,678,423.90. b) The remaining amount of € 366,048.12 will be carried forward to new account. (3) No unforeseen development costs were incurred during the period under review. (4) The order situation remains satisfactory. (5) The following changes have occurred in the composition of the management board and the supervisory board to the date of the writing of this report. Alexander Borwitzky and Nikolas von Haugwitz were appointed to the management board effective 1 January 2015. Alexander Margaritoff (on 30 April 2015) and Bernd Hoolmans (on 31 July 2015) retired from the management board. The supervisory board chairman Dr. Joh. Christian Jacobs resigned his office effective 26 March 2015; Detlev Meyer was elected as the new chairman of the supervisory board. The Hamburg Municipal Court appointed Dr. Franz Jürgen Säcker as a new member of the supervisory board on 27 March 2015. (6) Business with closely associated persons: As disclosed in the Notes to the financial statements for 2014 under point 45, the management board and the supervisory board are considered to be closely associated persons in the sense of IAS 24.5. Material changes since the closing date of the annual accounts have not taken place. Important business transactions were not conducted with closely associated persons in the reporting period. The number of shares and/or the number of votes held by members of the supervisory board is 6,682,376, all of them held by the supervisory board chairman Detlev Meyer. The members of the management board hold no shares and have no votes. (7) Treasury shares: Hawesko Holding AG holds no treasury shares as of the date of writing of this report.

Other information: 1.1.–30.9.
2015
1.1.–30.9.
2014
Employees (average during the period) 922 917

Calendar:

Preliminary report on fiscal year 2015 Early February 2016

Published by: Hawesko Holding AG – Investor Relations – 20247 Hamburg

Phone +49 40 / 30 39 21 00 Fax +49 40 / 30 39 21 05 Internet: http://www.hawesko-holding.com

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