Fielmann AG — Interim / Quarterly Report 2017

Apr 27, 2017

Interim report as at 31 March 2017

Fielmann Group Interim report as at 31 March 2017

Dear Shareholders and Friends of the Company,

Our Q12017 results are in line with our expectations. Year-on-year, Fielmann increased the number of units sold, sales revenue and profits.

Units sold and sales revenue	With its customer-friendly services, glasses at the best prices and wide-ranging guarantees, Fielmann increased its units sold in the first quarter to 1.95 million glasses (previous year: 1.87 million), and raised external sales incl. VAT to ¤ 402.9 million (previous year: ¤ 372.1 million). Consolidated sales went up to ¤ 341.9 million (previ ous year: ¤ 316,4 million). This performance has to be viewed in the context of two more shopping days than in Q1 2016.
Earnings and investments	Fielmann generated a pre-tax profit of ¤ 60.6 million (previous year: ¤ 54.1 million) and the net income for the quarter amounted to ¤ 43.0 million (previous year: ¤ 38.3 million). In the first three months, investments totalled ¤ 10.2 million (pre vious year: ¤ 5.9 million). All investments were financed from our cash flow. As at 31 March 2017, Fielmann operated 706 stores (previous year: 695), 170 of which also contained hearing aid studios (previ ous year: 149). Fielmann will continue to grow, open up new stores, expand existing ones and move into better locations. In Italy, we are pushing ahead with our expansion. In the first few months of the year, we opened stores in Vicenza, Verona and Trento, and more will follow.
Earnings per share	Q1 earnings per share were ¤ 0.50 (previous year: ¤ 0.44). There were no circumstances which could have diluted earnings per share during the period under review or comparable periods.
Dividend	The Supervisory Board and Management Board of Fielmann Ak tiengesellschaft are going to recommend to the Annual General Meet ing on 1 June 2017 that a dividend of ¤ 1.80 per share be paid out. This represents an increase of 2.9% over the previous year. The total dividend pay-out would amount to ¤ 151.2 million (previous year: ¤ 147.0 million). The dividend will be paid out after the approval by the Annual General Meeting on 7 June 2017.

Performance comparison of the Fielmann share, DAX, MDAX, SDAX and TecDAX

Fielmann is Germany's largest employer in the optical industry, with 17,775 employees as at 31 March 2017 (previous year: 17,095), of which 3,048 are apprentices (previous year: 2,935). Fielmann is also the biggest training provider and accounts for more than 40% of all apprentices in Germany. National awards testify to the high standard of our training. In the German optical industry competition, Fielmann accounted for all national winners over the last five years.

To the Company's knowledge, there is no information necessitating changes to the main forecasts or other expectations formulated in the last Group Management Report. The statements provided in the Annual Report 2016 on the opportunities and risks of the business model remain unchanged, too.

We are confident of expanding our market position and expect a positive business development throughout the year. Customers buy from companies that guarantee the best service at reasonable prices. In the optical industry, this means they buy at Fielmann.

After the first quarter provided two more shopping days, the second quarter will contain three days less. In total, the financial year 2017 will have four fewer shopping days.

Hamburg, April 2017

Fielmann Aktiengesellschaft The Management Board

Employees

Forecast, opportunities and risk report

Outlook

Cash flow statement

	Cash flow statement according to IAS 7 for the period from 1 January to 31 March	2017 ¤ '000	2016 ¤ '000	Change ¤ '000
	Earnings before taxes (EBT)	60,610	54,072	6,538
+	Statement-related expenditure in the final result	416	338	78
–	Statement-related income in the final result	–192	–289	97
+	Write-downs on tangible assets and intangible assets	10,358	9,422	936
–	Taxes on income paid	–24,123	–21,029	–3,094
	+/– Other non-cash income/expenditure	–1,043	–80	–963
	+/– Increase/decrease in accruals	11,896	9,578	2,318
	–/+ Profit/loss on disposal of tangible assets and intangible assets	23	8	15
	–/+ Increase/decrease in inventories, trade debtors and other assets not attributable to investment or financial operations	–7,155	–15,342	8,187
	+/– Increase/decrease in trade creditors and other liabilities not attributable to investment or financial operations	12,814	2,342	10,472
–	Interest paid	–329	–244	–85
+	Interest received	332	305	27
	–/+ Increase/decrease in financial assets held for trading	–1,884	–26,468	24,584
=	Cash flow from operating activities	61,723	12,613	49,110
	Receipts from the disposal of tangible assets	92	52	40
–	Payments for tangible assets	–6,870	–3,362	–3,508
–	Receipts from the disposal of intangible assets	–2,532	–2,063	–469
+	Receipts from the disposal of financial assets	33	11	22
–	Payments for investment property	–800	–500	–300
=	Cash flow from investment activities	–10,077	–5,862	–4,215
	Payments to company owners and non-controlling shareholders	–1,202	–1,052	–150
–	Acquisition of own shares	–1,780	–1,313	–467
+	Receipts from loans raised	411	213	198
–	Repayment of loans	–294	–72	–222
=	Cash flow from financing activities	–2,865	–2,224	–641
	Payment-affecting changes in cash and equivalents	48,781	4,527	44,254
	+/– Changes in cash and equivalents due to exchange rates	257	–34	291
+	Cash and equivalents at the beginning of the period	114,032	95,649	18,383
=	Cash and equivalents at the end of the period	163,070	100,142	62,928

Offsetting and reconciliation to cash flow

For the period from 1 January to 31 March	2017 in ¤ '000	2016 in ¤ '000	Change in ¤ '000
= Cash flow before increase/decrease in financial assets held for trading or to maturity	63,607	39,081	24,526
–/+ Increase/decrease in financial assets held for trading	–1,884	–26,468	24,584
= Cash flow from current business activities	61,723	12,613	49,110

Financial resources totalling T¤ 163,070 (previous year: T¤ 100,142) correspond to the item posted on the balance sheet as "Cash and cash equivalents" and includes liquid funds as well as securities with a fixed term of up to three months. The financial assets, which also count as financial capital, generally have a residual term of over three months and are broken down according to the typical maturities pursuant to IAS 1. The composition of the financial assets of T¤ 420,110 (previous year: T¤ 387,432) is shown in a separate table as follows:

Explanatory notes on the cash flow statement

Summary of financial assets

	31 March 2017 in ¤ '000	31 March 2016 in ¤ '000	Change in ¤ '000
Liquid funds	115,851	89,937	25,914
Securities with a fixed term up to 3 months	47,219	10,205	37,014
Cash and cash equivalents	163,070	100,142	62,928
Non-current financial assets	2,080	1,154	926
Other non-current financial assets	77,644	75,992	1,652
Capital investments with a specific maturity of more than 3 months	177,316	210,144	–32,828
Financial assets	420,110	387,432	32,678

in ¤ million	Germany	Switzerland	Austria	Other	Consoli dation	Goodwill
Sales revenues from the segment	284.8 (262.4)	44.4 (40.4)	20.2 (19.1)	9.2 (7.7)	–16.7 (–13.2)	341.9 (316.4)
Sales revenues from other segments	16.5 (13.1)	0.1 (0.0)	0.1 (0.1)
External sales revenues	268.3(249.3)	44.3 (40.4)	20.1 (19.0)	9.2 (7.7)		341.9(316.4)
Cost of materials	69.6 (62.0)	8.9 (7.2)	4.9 (4.4)	2.9 (2.3)	–15.7 (–12.3)	70.6 (63.6)
Personnel costs	116.4 (109.0)	17.5 (16.9)	7.6 (7.0)	3.0 (2.3)		144.5 (135.2)
Scheduled depreciation	8.6 (7.8)	1.1 (1.0)	0.4 (0.4)	0.3 (0.2)		10.4 (9.4)
Expenses in the financial result	0.4 (0.4)			0.1 (0.0)	–0.1 (–0.1)	0.4 (0.3)
Income in the financial result	0.2 (0.2)	0.1 (0.2)			–0.1 (–0.1)	0.2 (0.3)
Result before taxes1	47.3 (41.4)	9.5 (8.4)	4.0 (4.2)	–0.2 (0.1)	0.0 (0.0)	60.6 (54.1)
Income taxes	14.6 (13.1)	1.9 (1.7)	0.7 (0.8)	0.2 (0.1)	0.2 (0.0)	17.6 (15.7)
Profit for the period after tax	32.7 (28.3)	7.6 (6.7)	3.3 (3.4)	–0.4 (0.0)	–0.2 (0.0)	43.0 (38.4)
Non-current segment assets excluding financial instruments and deferred
tax assets	257.6 (251.6)	28.4 (27.7)	7.3 (6.2)	10.8 (7.4)		304.1 (292.9)
Investments	7.2 (4.5)	0.7 (0.7)	0.2 (0.2)	2.1 (0.5)		10.2 (5.9)
Deferred tax assets	8.8 (7.9)		0.3 (0.3)	0.3 (0.7)		9.4 (8.9)

Segment reporting 1.1. to 31.3.2017 The figures for the previous year are indicated in parentheses.

1 In the segments excl. income from participations

Financial calendar 2017/18

Annual General Meeting	1 June 2017
Dividend payout	7 June 2017
Half-year report	31 August 2017
Analyst's conference	1 September 2017
Quarterly report	2 November 2017
Preliminary figures 2017	February 2018
Bloomberg code	FIE
Reuters code	FIEG.DE
ISIN	DE0005772206

Further information:

Fielmann AG · Investor Relations
	Ulrich Brockmann
Weidestraße 118 a · 22083 Hamburg
Telephone: +49(0)40/27076-442
Fax:	+49(0)40/27076-150
E-mail:	investorrelations@fielmann.com
Internet:	www.fielmann.com

Consolidated profit and loss account

For the period from 1 January to 31 March	2017 in ¤ '000	2016 in ¤ '000	Change
1. Consolidated sales	341,871	316,368	8,1 %
2. Changes in inventories	7,322	5,890	24,3 %
Total consolidated revenues	349,193	322,258	8,4%
3. Other operating income	2,594	2,892	–10,3 %
4. Cost of materials	–70,631	–63,593	11,1 %
5. Personnel costs	–144,508	–135,150	6,9 %
6. Depreciation	–10,358	–9,422	9,9 %
7. Other operating expenses	–65,456	–62,864	4,1 %
8. Expenses in the financial result	–416	–338	23,1 %
9. Income in the financial result	192	289	–33,6 %
10. Result before taxes	60,610	54,072	12,1%
11. Income taxes	–17,621	–15,733	12,0 %
12. Consolidated net income for the period	42,989	38,339	12,1%
13. Income attributable to other shareholders	–1,364	–1,264	7,9 %
14. Profit for the period under review	41,625	37,075	12,3%
Earnings per share in ¤ (diluted/basic)	0.50	0.44

Consolidated balance sheet

Assets	Position as at 31 March 2017 in ¤ '000	Position as at 31 December 2016 in ¤ '000
A. Non-current fixed assets
I. Intangible assets	19.604	18.379
II. Goodwill	45,894	45,704
III. Tangible assets	222,345	224,389
IV. Investment property	16,280	16,404
V. Financial assets	2,080	1,313
VI. Tax assets	9,373	9,224
VII. Other financial assets	77,644	87,000
	393,220	402,413
B. Current assets
I. Inventories	137,248	128,136
II. Trade debtors	27,456	26,733
III. Other financial assets	47,599	46,416
IV. Non-financial assets	16,644	20,314
V. Tax assets	8,943	9,725
VI. Financial assets	177,316	165,765
VII. Cash and cash equivalents	163,070	114,032
	578,276	511,121
	971,496	913,534

Equity and liabilities	Position as at 31 March 2017 in ¤ '000	Position as at 31 December 2016 in ¤ '000
A. Equity capital
I. Subscribed capital	84,000	84,000
II. Capital reserves	92,652	92,652
III. Profit reserves	506,812	358,167
IV. Profit for the period under review	41,625	151,200
V. Non-controlling interests	293	246
	725,382	686,265
B. Non-current liabilities
I. Accruals	24,215	23,325
II. Financial liabilities	1,714	1,605
III. Deferred tax liabilities	7,846	8,430
	33,775	33,360
C. Current liabilities
I. Accruals	52,501	41,495
II. Financial liabilities	174	166
III. Trade creditors	67,560	63,035
IV. Other financial liabilities	19,196	20,426
V. Non-financial liabilities	61,677	50,730
VI. Income tax liabilities	11,231	18,057
	212,339	193,909
	971,496	913,534