DF Deutsche Forfait AG — Earnings Release 2008

Apr 23, 2009

News Details

Corporate | 23 April 2009 07:45

DF Deutsche Forfait AG publishes its 2008 consolidated fi-nancial statements

DF Deutsche Forfait AG / Final Results

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.

---

Foreign trade financer generates significant increase in profit
DF Deutsche Forfait AG publishes its 2008 consolidated financial statements

• Preliminary figures for 2008 confirmed
• Consolidated net income increased to EUR 5.8 million
• Forfaiting margin improved for the fifth year in a row

Cologne, 23 April 2009 - DF Deutsche Forfait AG (Prime Standard, ISIN:
DE0005488795) achieved the best results in its history in the 2008
financial year and improved its consolidated profit for the fifth year in a
row. With net income of EUR 5.8 million, the foreign trade financer
specialising in exports to emerging markets achieved 9% growth compared to
the 2007 financial year. The company thereby confirms the preliminary
figures for 2008 released on 10 March. DF Deutsche Forfait AG achieved its
operational goals in spite of increasingly difficult conditions over the
course of the year. Gross result including financial results, which is the
key performance figure for measuring success in the forfaiting business,
increased by EUR 1.0 million to EUR 16.1 million. The gross result is based
on a forfaiting volume of EUR 826.0 million which decreased by 8% compared
to the prior year. This decrease was more than offset by an increase in the
forfaiting margin.

As previously announced, the Management Board and Supervisory Board are
proposing a dividend increase of 10% to EUR 0.43 per share at the AGM. This
corresponds to a dividend yield of approximately 9% based on the XETRA
closing price on 20 April 2009. The distribution rate of 50% of net income
also allows DF Group to increase equity by EUR 2.9 million.

Jochen Franke, CFO of DF Deutsche Forfait AG, said: 'We are very pleased
with developments in the 2008 financial year. In spite of the financial
market crisis, we were able to improve our results and oppose the industry
trend.'

Decline in world trade does not affect market volume

The first decline in world trade since 1982 is expected for 2009 as a
result of the financial crisis. But this development has not impaired the
market volume relevant to DF Deutsche Forfait AG. Quite the contrary: Less
competition and reduced financing alternatives combined with a high demand
for liquidity have increased the use of forfaiting. The company is also
benefiting from higher margins for the acquisition of receivables. On the
other hand, the placement side - the sale of receivables to banks and other
investors - remains difficult in spite of a slight easing of tensions since
the beginning of 2009.

Operating result improved once again

In the 2008 financial year, DF Deutsche Forfait Group achieved a forfaiting
volume of EUR 826.0 million (prior year: EUR 902.2 million). This decrease
was caused by stricter selection criteria for transactions based on
increasing uncertainty in the wake of the rapidly worsening financial
market crisis, especially in the fourth quarter of 2008.

Gross result including financial results increased from EUR 15.1 million to
EUR 16.1 mil-lion in the 2008 financial year. Margins have increased
significantly following the financial market crisis and the resulting
liquidity shortage. The forfaiting margin, which is derived from the gross
result in relation to the forfaiting volume, improved for the fifth year in
a row and increased from 1.7% in the prior year to 1.9% in the 2008
financial year. Primarily as a result of hiring new employees,
administrative expenses increased from EUR 7.1 million to EUR 7.9 million.
Here the new office in London, for which the costs are reported under other
operating expenses for contractual reasons, had a major impact.
Consolidated profit increased from EUR 5.3 million in the prior year to EUR
5.8 million. The tax rate decreased to 30% (prior year: 35%). Earnings per
share according to IFRS amounted to EUR 0.85.

Very solid capitalisation

The balance sheet total increased by EUR 21.4 million to EUR 134.5 million
in the 2008 financial year, primarily due to the increase in trade
receivables by EUR 22.0 million. Based on the nominal value of the
underlying forfaiting transactions, 90% of this amount was secured (prior
year: 83%). Cash and cash equivalents remained nearly constant at EUR 22.7
million. This also applies to the equity ratio, which amounted to 21% in
spite of the higher balance sheet total (prior year: 22%). For a company in
the financial sector, DF Deutsche Forfait AG has a very solid equity base -
especially when the comprehensive guarantees in the forfaiting business are
taken into account. In addition to its equity of EUR 25.0 million (after
deducting the proposed distribution of dividends), the company also has
access to a long-term loan in the amount of EUR 10.0 million for long-term
refinancing.

Outlook

As a result of the financial market crisis, demand on the acquisition side
for receivables is high and margins are attractive. Although the situation
has improved slightly since the turn of the year, the placement side
remains difficult. The current market environment also offers outstanding
conditions for very profitable special transactions. Results for DF Group
in 2009 will be highly dependent on these special transactions, which means
the reliability of forecasts is significantly reduced. Overall, DF Group
expects a positive consolidated profit based on anticipated increasing
forfaiting margins and a falling forfaiting volume for the 2009 financial
year.

The 2008 annual report of DF Deutsche Forfait AG is now available in the
section Investor Relations/ Publications/ Annual Reports on the company
website.

About DF Group

The main business activities of DF Group are the purchase and sale of
selected export receivables in emerging markets on a non-recourse basis.
The objective is to sell the acquired receivables at the same time or in
the short term. Forfaiting is an increasingly important tool in export
financing, with volumes rising in line with the continuing advance of
globalization. Creating tradable products from receivables benefits both
exporters and buyers. As well as transferring risk to the buyer, the main
benefit of forfaiting for exporters is the inflow of cash. This relieves
the exporters' credit lines and improves their balance sheet structure. DF
Deutsche Forfait AG structures receivables attractively, so that investors
seek them as a type of investment.

DF Deutsche Forfait AG
Media & Investor Relations
Kattenbug 18 - 24
50667 Cologne
T +49 221 97376-37
F +49 221 97376-60
E investor.relations@dfag.de
http://www.dfag.de

23.04.2009 Financial News transmitted by DGAP

Language: English
Issuer: DF Deutsche Forfait AG
Kattenbug 18-24
50667 Köln
Deutschland
Phone: +49 (0)221 - 973 76 0
Fax: +49 (0)221 - 973 76 76
E-mail: dfag@dfag.de
Internet: www.dfag.de
ISIN: DE0005488795
WKN: 548879
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Stuttgart

End of News DGAP News-Service

---