Rougier

Earnings Release • Apr 14, 2014

2013 full-year earnings Positive turnaround during the second half of the year

Paris, 9 April 2014 (5:45 pm) - At the Board meeting on 8 April 2014, the Directors reviewed and approved the annual financial statements for 2013. Income from ordinary operations came to €(1.7) million, with €(5.9) million in net income (Group share). Profitability picked up again during the second half of the year, driven by the upturn in business and the significant improvement in operational performances in Africa.

Condensed consolidated income statement

(€'000)	2013	H2 2013	2012
			restated*
Revenues	141,732	76,465	142,557
Income from ordinary operations	(1,651)	2,764	(638)
% of revenues	(1.2%)	3.6%	(0.5%)
Asset impairments	(3,575)	-	(880)
EBIT	(5,286)	2,791	(1,394)
% of revenues	(3.7%)	3.6%	(1.0%)
Net income	(9,041)	1,153	(5,217)
Net income (Group share)	(5,889)	707	(3,551)
% of revenues	(4.2%)	0.9%	(2.5%)
Cash flow from operations	3,071	5,122	3,827

* Following the application of IAS 19 (revised) relating to employee benefits The audit procedures on the consolidated accounts are underway

Second-half improvement in margins

Following a first half of the year significantly affected by the downturn in production and revenues resulting from a combination of non-recurring negative factors, Rougier's business and profitability trends improved considerably during the second part of the year.

In Gabon, following four years of losses resulting from the transformation of the business model and a very negative first half of 2013, Rougier's earnings began to pick up again during the second half of the year, consolidated by the realignment of industrial and commercial activities, the strengthening of the management team, and the savings and rationalization measures rolled out. In Cameroon and Congo, the stronger levels of industrial competitiveness achieved and the gradual improvements in logistics have made it possible to record solid results, despite the structural difficulties with Douala Port and the conflict in the Central African Republic. In France, the Import-Distribution branch's results have been penalized by the construction industry's weak performances.

Overall, these trends led to a clear improvement in Rougier's operational profitability during the second half of 2013. Over this period, the current operating margin came to 3.6% of revenues, compared with (6.8%) for the first half of 2013 and (0.9%) for the second half of 2012. These encouraging developments are linked to the positive results achieved with the

turnaround measures rolled out in Gabon, gradually limiting the level of loss in this country. They are also linked to the upturn in sales volumes, the steady increase in prices and the ongoing efforts to ensure the best geographical breakdown of sales.

Annual profitability primarily affected by negative first-half results in Gabon

Nevertheless, full-year profitability in 2013 was still significantly affected by the first half's underperformance. Income from ordinary operations came to €(1.7) million in 2013, versus €(0.6) million in 2012, with €(5.3) million in EBIT. It includes impairment in the value of certain assets in Gabon for a total of €3.6 million, already recognized during the first half of the year.

After taking into account the cost of net financial debt for €2.9 million and a €0.3 million tax expense, overall net income is negative, coming in at €9.0 million. This includes the share of earnings recorded by Lignafrica, the joint-venture specialized in the development of forest plantations in Africa.

After deducting the percentage attributable to minority interests, net income (Group share) represents €(5.9) million.

Financial structure

Shareholders' equity represents €61.1 million, compared with €69.5 million at 31 December 2012. Despite the difficult environment, the increase in net debt was limited to €2.2 million, giving a total of €50.3 million at 31 December 2013.

Outlook

The significant turnaround during the final months of 2013 points to a better level of business in 2014, buoyed by current improvements in the economic environment.

This positive trend is being encouraged by the full impact of the recovery plan in Gabon and the sound performances achieved in Cameroon and Congo, as well as the development of the business for international trade in African timber. It will also be supported by the strengthening of import and distribution activities in France, with the upcoming business combination between Rougier Sylvaco and Rougier Panneaux.

Next date: 2014 first-quarter revenues on 12 May 2014 (after close of trading)

Founded in 1923, the Rougier Group is a market leader for certified African tropical timber. The Group operates around three activities: Rougier Afrique International (natural forest harvesting, industrial processing and international trade), Lignafrica (research, management and investment in industrial forest plantations in Africa), Rougier Sylvaco and Rougier Panneaux (importing and distribution in France of timber from all origins). www.rougier.fr

ISIN: FR0000037640 Reuters: ALRGR.PA Bloomberg: ALRGR:FP Eligible for SME sharebased savings schemes

Contact: Cyril Combe cyril.combe@calyptus.net Tel: +33 (0)1 53 65 68 68