JENSEN-GROUP N.V.

Earnings Release • Aug 18, 2016

Under Embargo until 18/08/2016 - 17.45 CET Regulated information

Press Release

High activity – higher costs associated with investments

Highlights First half year 2016

• Revenue of the first half-year of 2016 amounts to 164.4 million euro, a 9.2% increase compared to last year.
• Operating profit (EBIT) for the first six months amounts to 13.9 million euro, which is 2.6% higher than last year.
• Cash flow (EBITDA) for the first half-year amounts to 15.3 million euro, a 9.1% decrease compared to last year.
• Net profit from the continuing operations amounts to 9.6 million euro (Earnings per Share of 1.23 euro), an increase of 3% compared to last year.
• Net financial debt amounts to 9.9 million euro and increased by 9.8 million euro compared to December 2015.

Summary overview

Income Statement 30/06/2016- 30/06/2015 Non-audited, consolidated key figures

			June 30, 2016 June 30, 2015	Change
	(million euro)	6M	6M
Revenue		164,4	150,6	9,2%
EBIT		13,9	13,5	2,6%
Cash flow (EBITDA) 1		15,3	16,9	-9,0%
Financial result		-0,8	-1,2	-37,4%
Profit before taxes		13,0	12,3	6,2%
Taxes		-3,4	-3,0	16,5%
Net income continuing operations		9,6	9,3	3,0%
Result from discontinued operations		-0,2	0,0	240,9%
Net income (Group share in the profit)		9,5	9,3	1,8%
Net cash flow 2		11,1	12,7	-12,7%

Balance sheet as of 30/06/2016- 31/12/2015 Non-audited, consolidated key figures

			June 30, 2016 Dec 31, 2015	Change
	(million euro)	6M	12M
Equity		92,5	87,1	6,2%
Net financial debt		9,9	0,1	13218,9%
Assets held for sale		0,5	0,5	-2,0%
Total assets		200,0	186,6	7,2%

Non-audited, consolidated key figures per share

		June 30, 2016 June 30, 2015	Change
(euro)	6M	6M
Cash flow (EBITDA) 1	1,96	2,16	-9,3%
Profit before taxes	1,67	1,57	6,4%
Profit after taxes continuing operations (EPS)	1,23	1,19	3,4%
Net cash flow 2	1,41	1,62	-13,0%
Equity (June 30, 2016 - December 31, 2015)	11,84	11,14	6,3%
Number of shares (end of period)	7.818.999	7.818.999
Number of shares (average)	7.818.999	7.818.999

1 EBITDA = earnings before interest, taxes, depreciation and amortization; This is operating profit plus depreciation and amounts written off on stocks, trade debtors, impairment losses and provisions for liabilities and charges.

²The net cash flow is the net income (Group share in the profit) excluding depreciation, amounts written off on stocks, trade debtors, impairment losses and provisions for liabilities and charges.

Operating activities

• Revenue
• o Although the Group started from a slightly lower order backlog at the beginning of the year, the turnover was higher than in the first half of 2015.
• o At June 30, 2016 the order backlog increased by 34% compared to the backlog at June 30, 2015. Considering the finished goods and work in progress, production backlog is 47% higher than as at June 2015. Management estimates that approximately 26% of this production backlog relates to revenues in 2017 and later.
• EBIT
• o Consolidated EBIT increased from 13.5 million euro to 13.9 million euro (+2.6%) thanks to the higher activity level.
• o The intense competition on large projects and further investments in production capacity, sales force and product development in preparation for growth have held back further increases in profitability.

Other activities

• Total net finance cost amounts to 0.8 million euro and relates to interest charges (0.4 million euro), net currency losses (0.1 million euro) and other charges (0.3 million euro).
• The net tax charges amount to 3.4 million euro.
• Compared to December 2015, the net financial debt increased by 9.8 million euro to 9.9 million euro due to the high activity level and investments.
• On January 29, 2016 JENSEN-GROUP acquired an equity stake of 30% in TOLON GLOBAL MAKINA Sanyi Ve Tikaret Sirketi A.S., Turkey, and agreed to acquire in total an additional 19% of the shares over the coming three years.
• In March 2016 JENSEN-GROUP opened a Sales and Service Center in Denmark.
• On July 1, 2016 JENSEN-GROUP took over the activities of its distributor in Norway.

Outlook

At June 30, 2016 the order backlog increased by 34% compared to the backlog at June 30, 2015. Considering the finished goods and work in progress, production backlog is 47% higher than as at June 2015. Management estimates that approximately 26% of this production backlog relates to revenues in 2017 and later.

The intense competition on large projects and further investments in production capacity, sales force and product development in preparation for growth will continue to hold back further increases in profitability.

The most important risk factors remain rapid changes in demand, availability of financing to our customers, high exchange rate volatility and fluctuating raw material, energy and transport prices.

Shareholders' calendar

November 17, 2016 (evening): Trading update Q3 March 2017: Full year results 2016 (Analysts' meeting) May 2017: Shareholders' meeting

Profile

The JENSEN-GROUP assists heavy-duty laundries worldwide to provide quality textile services economically. We have become a preferred supplier in the laundry industry by leveraging our broad laundry expertise to design and supply sustainable single machines, systems and integrated solutions. We are continuously growing by extending our offer and by developing environmental friendly and innovative products and services that address specific customer needs. Our success results from combining our global skills with our local presence. The JENSEN-GROUP has operations in 22 countries and has distribution in more than 40 countries. Worldwide, JENSEN-GROUP employs about 1,550 employees.

This press release and the full text of the Interim Financial Information, in accordance with IAS 34, are available on the corporate website www.jensengroup.com.

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Note to the editors: for more information, please contact: JENSEN-GROUP: Jesper Munch Jensen, Chief Executive Officer Markus Schalch, Chief Financial Officer Scarlet Janssens, Investor Relations Manager Tel. +32.9.333.83.30 E-mail: investor@jensen-group.com