TCM Group

Earnings Release • Feb 28, 2018

TCM Group A/S Annual report 2017

TCM Group A/S Annual report 2017

COMPANY ANNOUNCEMENT

No. 17/2018

Tvis, 28 February 2018

2017 was a historical year for TCM Group

Financial highlights Q4 2017 (October 1 - December 31)

(All figures in brackets refer to the corresponding period in 2016)

• Net sales up 32.5% to DKK 215.0 million (DKK 162.3 million), positively impacted by 15.3% from the acquisition of Nettoline and 17.1% from organic net sales growth.
• Adjusted EBITA up DKK 11.3 million to DKK 39.3 million (DKK 28.0 million), corresponding to an adjusted EBITA margin of 18.3% (17.3%).
• Non-recurring items had a negative impact of DKK 12.6 million (DKK 0.3 million), primarily related to costs related to the Initial Public Offering of the company and integration of Nettoline.
• EBIT down DKK 0.9 million to DKK 24.9 million (DKK 25.8 million), corresponding to an EBIT margin of 11.6% (15.9%)
• Free cash flow excl. acquisitions of operations was DKK 31.4 million (DKK 45.6 million)
• Cash conversion ratio was 110.0%
• Profit for the period down 30.5% to DKK 12.3 million (DKK 17.7 million)

Please see attached Q4 Interim Report for further details about Q4 2017.

Financial highlights 2017

(All figures in brackets refer to the corresponding period in 2016)

• Net sales up 36.3% to DKK 817.3 million (DKK 599.7 million pro forma), positively impacted by 18% from the acquisition of Nettoline and 18.3% from organic net sales growth.
• Adjusted EBITA up DKK 36.5 million to DKK 122.8 million (DKK 86.2 million pro forma), corresponding to an adjusted EBITA margin of 15.0% (14.4% pro forma)
• Non-recurring items had a negative impact of DKK 34.3 million (DKK 18.7 million) primarily related to costs related to the Initial Public Offering of the company and acquisitioin and integration of Nettoline.
• EBIT up DKK 20.9 million to DKK 80.9 million (DKK 60.0 million pro forma), corresponding to an EBIT margin of 9.9% (10.0% pro forma)
• Financial guidance for the financial year 2018: Net sales in the range of DKK 870-900 million, adjusted EBITA in the range DKK 130-140 million, translating into an EBIT in the range of DKK 120-130 million.

Please see attached 2017 Annual Report for further details about the full-year 2017.

2017 was a strong year for TCM Group

“2017 was a strong year for TCM Group and we exceeded our guidance in terms of revenue and adjusted EBITA. Sales increased organically by around 18%, meaning that we again gained market share in a growing market. For 2018 we expect to continue to grow sales as well as earnings,” says CEO Ole Lund Andersen

Conference call

A conference call for investors and analysts will be held today at 10:00 CET. The presentation for the conference call will be available on www.investor-en.tcmgroup.dk

Dial-in numbers for the conference call:

Denmark: +45 35158121

International: +44 (0)330 336 9411

Contact

For further information, please contact:

CEO Ole Lund Andersen +45 97435200

CFO Mogens Elbrønd Pedersen +45 97435200

IR Contact - ir@tcmgroup.dk