United Labels AG

Earnings Release • Aug 31, 2012

News Details

Ad-hoc | 31 August 2012 22:19

United Labels AG: Earnings for first half impacted by exceptional charges

United Labels AG / Key word(s): Half Year Results

31.08.2012 22:19

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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* Group sales revenue totals EUR 25 million
* Realignment of business model

Münster, 31.08.2012 - United Labels AG (ISIN: DE 0005489561) generated
consolidated revenues of EUR 25.0 million in the first six months of the
2012 financial year (prev. year: EUR 29.6 million). In the second quarter
of 2012 alone, revenue amounted to EUR 13.5 million (prev. year: EUR 15.8
million).

As a result of exceptional charges, the loss for the first six months
totalled EUR 14.4 million (prev. year: loss of EUR 0.02 million).

Alongside the additional liabilities reported in the ad hoc announcement of
12 July 2012, remeasurements were required in the period under review.
These remeasurements gave rise to provisions for write-downs of usage
rights and inventories as well as a necessary correction to deferred taxes
totalling EUR 4.1 million in 2012.

A so-called 'procédure de sauvegarde', i.e. a debtor safeguard procedure
under French law, was initiated in respect of the assets of the French
investee Embassy SAS, Roubaix, in which United Labels AG holds an indirect
interest of 45% via Groupe Montesquieu. In view of this, the investment in
Groupe Montesquieu and receivables from Embassy SAS as well as call options
and goodwill were written down, leading to a charge of approx. EUR 6.3
million.

In response to these exceptional factors, United Labels AG will realign and
optimise its existing fields of business, with the express purpose of
returning to profit- and growth-oriented operations in the future. In
parallel with its optimisation measures relating to the current business
model, the company will reassess its Group structure and carry out
divestments with regard to those subsidiaries that no longer fulfil the
criteria of viable inclusion within the context of the Group's future
market alignment. As part of the optimisation measures, the sites in
France, the United Kingdom and Italy are to be closed. Additionally, the
product range and assortment are to be streamlined, the licence portfolio
is to be redefined, corporate structures are to become significantly leaner
and inventories are to be gradually scaled back.

The company will continue to drive its expansion of end-consumer business
as part of its NextGen strategy, supported by the favourable performance of
the seven airport shops and the newly established subsidiary Elfen Service
GmbH. Operations of the e-commerce platform for toys and media products
newly created by Elfen Service in 2012 are scheduled to commence in autumn.

The report issued by United Labels AG for the first half of 2012 can be
downloaded from the following site:
http://www.unitedlabels.com/investor-relations/finanzberichte

For further information, please visit www.unitedlabels.com or contact the
following member of staff:
United Labels AG
Thorsten Laumann
Head of Corporate Communication
Gildenstraße 6
48157 Münster
Phone: +49 (0) 251-3221-406
Fax: +40 (0) 251-3221-960
investorrelations@unitedlabels.com

31.08.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: United Labels AG
Gildenstr. 6
48157 Münster
Germany
Phone: +49 (0)25 132 21-0
Fax: +49 (0)25 132 21-999
E-mail: investorrelations@unitedlabels.com
Internet: www.unitedlabels.com
ISIN: DE0005489561
WKN: 548956
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart

End of Announcement DGAP News-Service

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