DF Deutsche Forfait AG

Quarterly Report • May 29, 2019

DF Deutsche Forfait AG Announcement for the period 1 January to 31 March 2019

CONTENTS

Consolidated key figures	3
Business performance	4
Summary of material events	6
Consolidated balance sheet	7
Consolidated income statement	9
Consolidated cash flow statement	10
Contact	11

KEY FIGURES AT A GLANCE

(in EUR millions)	01-01– 31-03-2019*	01-01– 31-03-2018*	Difference
Business volume	1.0	9.8	-8.8
Gross result	0.7	-0.1	+0.8
Other operating income	0.1	0.2	-0.1
Administrative expenses	1.2	1.2	0.0
Earnings before income taxes	-0.4	-1.1	+0.7
Consolidated profit/loss	-0.4	-0.9	+0.5
Earnings per share	-0.03	-0.08	+0.05
	31-03-2019	31-12-2018
Equity	4.9	5.3	-0.4
Total assets	24.4	12.9	+11.5
Thereof "creditor assets"	2.9	6.2	-3.3

* Besides its operating activities, DF Group continues to perform tasks under the insolvency plan and the Trust Agreement signed in 2016. This is reflected in individual items of the income statement and is recognized in "Creditor assets" and "Creditor liabilities" in the balance sheet.

DF Group generated a consolidated net loss of EUR -0.4 million in the first quarter of 2019

In the first three months of the financial year 2019, DF Group generated a business volume of only EUR 1.0 million (previous year: EUR 9.8 million). The low business volume was not attributable to a lack of demand for the company's services in the food and pharmaceuticals sectors but to the continued difficulties of the Iranian business partners in providing the foreign exchange required to execute the transactions. In contrast to the business volume, which mainly comprises debt collection and similar services, DF Group's consulting activities showed a much better trend than projected. Income from the consulting operations totaled EUR 0.7 million. However, the high income from the consulting business, which essentially make up the gross profit, were not sufficient to cover operating expenses in the first quarter of 2019. These comprise personnel expenses, depreciation and amortization as well as other operating expenses and amounted to EUR 1.2 million, as in the comparable prior-year period. The total amount breaks down into personnel expenses of EUR 0.63 million, depreciation and amortization of EUR 0.04 million and other operating expenses of EUR 0.51 million.

Due to a EUR 15.0 million loan granted to DF Deutsche Forfait GmbH by the majority shareholder of DF Deutsche Forfait AG, DF Group's total assets increased significantly from EUR 12.9 million as of 31 December 2018 to EUR 24.4 million as of 31 March 2019. Besides cash and cash equivalents, which rose to EUR 18.0 million as a result of the loan, creditor assets were the largest asset item at EUR 2.9 million. Compared to 31 December 2018, creditor assets declined by EUR 3.3 million due to a payout to the trustee.

The fair value of the creditor liabilities is identical with the fair value of the creditor assets.

Because of the consolidated net loss incurred in the first quarter, DF Group's equity capital declined from EUR 5.3 million on 31 December 2018 to EUR 4.9 million on 31 March 2019.

The fact that the political environment in the Near and Middle East, which is DF Group's target region, have deteriorated means that some of the known risks regarding the achievement of a positive consolidated result have materialized in the past weeks. In particular, the business volume has so far lagged significantly behind expectations due to the continuing restrictions on foreign exchange transfers described above. However, there are positive developments that indicate a significant increase in business volume over the course of the year. Income from the consulting operations was well above plan and also showed a positive trend in April and May. On balance, DF Group is currently expecting a positive corporate performance in the coming months in view of the continued good demand for the services provided by DF Group and the continued excellent cooperation with its strategic partners.

Material events after the end of the first quarter

Tightening of US sanctions in the geographic target market but also positive developments

On 8 May 2019, the USA further tightened sanctions against Iran and put additional sectors such as the iron, steel and aluminum industries on the sanctions list. However, DF Group's business policy focus on pharmaceuticals and food is not directly affected by the new sanctions. At the same time, DF Group has made initial progress in solving the foreign exchange restrictions described above on the basis of positive feedback from the supervisory authorities and legal advisors.

Gruenwald, 29 May 2019

Board of Management

Assets (in EUR)	31-03-2019	31-12-2018
Long-term assets
Intangible assets	378,540.22	124,020.83
Tangible assets	81,226.96	87,604.00
Long-term financial assets	40,644.19	40,644.19
Deferred taxes	1,524,156.00	1,524,156.00
	2,024,567.37	1,776,425.02
Short-term assets
Creditor assets	2,939,085.62	6,186,840.18
Trade accounts receivables	416,289.36	439,432.86

Total assets	24,423,822.52	12,949,987.36
	22,399,255.15	11,173,562.34
Cash and cash equivalents funds	18,025,682.06	3,553,920.65
Other short-term assets	1,018,198.11	993,368.65
Trade accounts receivables	416,289.36	439,432.86

Equity and Liabilities (in EUR)	31-03-2019	31-12-2018
Equity
Subscribed capital	11,887,483.00	11,887,483.00
Costs of the capital increase	-623,481.04	-623,481.04
Revenue reserves	-6,144,495.75	-5,756,635.47
Adjustment items from currency translation	-180,793.82	-178,558.63
	4,938,712.39	5,328,807.86
Long-term liabilities
Loans	15,000,000.00	0.00
Leasing obligations	267,772.91	0.00
	15,267,772.91	0.00
Short-term liabilities
Creditor liabilities	2,939,085.62	6,186,840.18
Liabilities to banks	0.00	329.08
Income tax liabilities	467,488.18	462,267.57
Trade accounts and other payables	142,246.51	237,493.34
Other short-term liabilities	668,516.91	734,249.33
	4,217,337.22	7,621,179.50
Total equity and liabilities	24,423,822.52	12,949,987.36

Consolidated Income Statement (in EUR)	01-01 – 31-03-2019	01-01 – 31-03-2018
Transaction-related income
a) Forfaiting income	2,004.07	71,390.19
b) Commission income	681,923.00	27,500.83
c) Exchange profits	44,766.86	2,670.28
	728,693.93	101,561.30
Transaction-related expenses
a) Expenditure from forfaiting	0.00	0.00
b) Commissions paid	29,198.45	19,989.26
c) Exchange losses	1,057.64	229,187.19
	30,256.09	249,176.45
Gross result	698,437.84	-147,615.15
Other operating income	120,862.90	226,243.10
Personnel expenses
a) Wages and salaries	548,485.23	515,598.10
b) Social security contributions and expenditure for pensions and social welfare	79,423.57	73,884.45
	627,908.80	589,482.55
Depreciation on tangible and intangible assets	41,022.36	23,368.35
Other operating expenditure	509,998.20	542,732.45
Interest income	0.00	0.00
Interest paid	22,689.66	4,418.01
Profit before income tax	-382,318.28	-1,081,373.41
Income tax
a) Income and earnings tax	5,560.00	0.00
b) Deferred taxes	0.00	-153,900.00
Consolidated loss	-387,878.28	-927,473.41
Average number of shares	11,887.483	11,887.483
Undiluted earnings per share	-0.03	-0.08
Diluted earnings per share	-0.03	-0.08

	Consolidated Cash Flow Statement (in EUR)	01-01 – 31-03-2019	01-01 – 31-03-2018
	Consolidated income/loss	-387,878.28	-927,473.41
+	Depreciation on tangible and intangible assets	41,022.36	23,368.35
+	Income tax paid	5,560.00	-153,900.00
+	Interest paid	22,689.66	4,418.01
-	Interest income	0.00	0.00
+/-	Other transactions not affecting payments	-12,720.83	153,900.00
+/-	Changes in creditor assets	3,247,754.56	384,748.21
+/-	Changes to trade accounts receivable	23,143.50	-234,069.81
+/-	Changes to other assets	-24,829.46	-156,963.01
+/-	Changes in creditor liabilities	-3,247,754.56	-384,748.21
+/-	Changes to trade accounts payable	-95,246.83	50,222.17
+/-	Changes to other liabilities	-60,511.81	95,084.42
=	Operative Cash flow	-488,771.69	-1,145,413.28
-	Paid interest	-15,528.83	-4,418.01
+	Retained interest	0.00	0.00
=	Cash flow from current business	-504,300.52	-1,149,831.29
-	Payments for investments in long-term assets	-21,411.52	-13,524.20
+	Income from disposals of long-term assets	0.00	0.00
=	Cash flow from investing activity	-21,411.52	-13,524.20
+/-	Changes in financial liabilities	-329.08	63.26
+/-	New borrowing	15,000,000.00	0.00
+/-	Other changes in equity	0.00	0.00
=	Cash flow from finance activity	14,999,670.92	63.26
-	Changes in financial resources affecting payments	14,473,958.88	-1,163,292.23
+	Liquid funds at the start of the period	3,553,920.65	6,079,060.14
+/-	Effects from the currency conversion	-2,197.47	-11,468.21
=	Liquid funds at the end of the period	18,025,682.06	4,904,299.70
-	Balances pledged	-35,000.00	0.00
=	Free liquid funds at the end of the period	17,990,682.06	4,904,299.70

DF Deutsche Forfait AG Hirtenweg 14 82031 Gruenwald Germany

Phone +49 89 21 55 19 00 - 0 Fax +49 89 21 55 19 00 - 9 E-Mail dfag@dfag.de Internet www.dfag.de

DF Deutsche Forfait AG

www.dfag.de