Fielmann AG — Interim / Quarterly Report 2019

Apr 29, 2019

INTERIM REPORT AS AT 31 MARCH 2019

	Fielmann Group: Interim Report as at 31 March 2019
	Dear Shareholders, Dear Friends of the Company, Our expectations for the first quarter of 2019 have been met. Fiel mann increased the number of units sold, sales revenue and profits to last year.
Units sold and sales revenue	The number of glasses sold in the first quarter of 2019 rose by 3.4% to 1.99 million (previous year: 1.92 million). External sales incl. VAT and changes in inventories increased by 8.9% to ¤437.6 million (previous year: ¤401.7 million) and consolidated sales rose by 6.3% to ¤371.8 million (previous year: ¤349.9 million).
Earnings and investments	Fielmann generated a pre-tax profit of ¤67.2 million (previous year: ¤61.4 million) and the net income for the quarter amounted to ¤46.6 million (previous year: ¤42.5 million). The additions for non-current segment assets without rights of usufruct from leases (leasing rights) amounted to ¤12.9 million in the first quarter and were financed from our cash flow (previous year: ¤14.6 million). As at 31 March 2019, Fielmann operated 737 stores (previous year: 724), 198 of which also contained hearing aid studios (previous year: 184).
Earnings per share	The earnings per share were ¤0.54 (previous year: ¤0.49). 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 Aktieng esellschaft will recommend to the Annual General Meeting on 11 July 2019 that a dividend of ¤1.90 per share be paid out. This represents an increase of 2.7% over the previous year. The total dividend pay out amounts to ¤ 159.6 million (previous year: ¤ 155.4 million). The dividend will be paid out after the approval by the Annual General Meeting on 16 July 2019.
Employees	Fielmann is Germany's largest employer in the optical industry, with a total of 19,274 employees in the Group as at 31 March (previous year: 18,368), of which 3,676 are apprentices (previous year: 3,243). Fiel mann 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 eight years.

IFRS 16 "Leasing" is mandatory for the reporting periods beginning as of 1.1.2019. This standard sets out the principles for the recognition, measurement and disclosure of leases in the Notes, and has an impact on the presentation of assets, financial position and earnings as well as on the scope of the disclosures required in the Notes. Fielmann is a lessee in the sense that it uses leases to rent business premises. Leasing also plays a minor role in the financing of cars. In the reporting period, the impact on net income of the first application of IFRS 16 at Fielmann amounted to additional costs of only ¤0.3 million. A significant increase to the balance sheet total has resulted from taking the rights of usufruct from leases (leasing rights) into account. This has an impact on the Fielmann Group's key figures. The Fielmann Group's equity ratio fell due to the significant increase to the balance sheet total from 75.1% as at 31 December 2018 to 53.8% as at 31 March 2019.

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 2018 on the opportunities and risks of the business model remain unchanged, too.

With its Vision 2025, Fielmann is shaping the optical industry in Europe for the benefit of customers. The main focus is on the German-speaking regions and the neighbouring countries. Over the long term, Fielmann aims to sell one in four glasses in continental Europe and generate external sales of ¤2.3 billion.

Fielmann is the market leader and uses its liquidity to ensure sustained long-term growth. In the years 2019 and 2020 alone, Fielmann will invest a total of more than ¤200 million in the modernisation of its store network, the digitisation of its business model and the international expansion of the Group. The first two months of the current financial year support our optimistic expectations.

Hamburg, April 2019 Fielmann Aktiengesellschaft The Management Board

Change to the accounting principles

Forecast, opportunities and risk report

Outlook

4 First quarter 2019 Cash flow statement

	Cash flow statement according to IAS 7 for the period from 1 January to 31 March	2019 ¤000s	2018 ¤000s	Change ¤000s
	Earnings before taxes (EBT)	67,161	61,377	5,784
	–/+ Profit shares of associates	97	0	97
+	Statement-related interest expenditure from leases	561	0	561
+	Statement-related other expenditure in the final result	276	262	14
–	Statement-related income in the final result	–578	–235	–343
+	Write-downs on tangible assets and intangible assets	11,623	11,051	572
+	Write-downs on rights of usufruct from leases	19,185	0	19,185
–	Taxes on income paid	–22,246	–21,341	–905
	+/– Other non-cash income/expenditure	1,714	5,045	–3,331
	+/– Increase/decrease in accruals	9,531	10,027	–496
	–/+ Profit/loss on disposal of tangible assets as properties kept as financial investments and intangible assets	–6	–3,297	3,291
	–/+ Increase/decrease in inventories, trade debtors and other assets not attributable to investment or financial operations	–421,557	–20,962	–400,595
	+/– Increase/decrease in trade creditors and other liabilities not attributable to investment or financial operations	402,582	8,670	393,912
–	Interest paid	–164	–183	19
+	Interest received	212	215	–3
	–/+ Increase/decrease in other non-current financial assets and capital investments with a term of over three months	–26,248	10,321	–36,569
=	Cash flow from operating activities	42,143	60,950	–18,807
	Receipts from the disposal of tangible assets	35	41	–6
–	Payments for tangible assets	–6,853	–12,610	5,757
–	Payments for intangible assets	–6,071	–1,754	–4,317
+	Receipts from the disposal of financial assets	39	35	4
–	Payments for financial assets	0	–220	220
=	Cash flow from investment activities	–12,850	–14,508	1,658
	Payments to company owners and non-controlling shareholders	–1,153	–1,008	–145
	+/– Sale/Acquisition of own shares	–1,126	–842	–284
+	Receipts from loans raised	20	8	12
–	Repayment of loans	–61	–356	295
–	Payments for liabilities from leases	–19,490	0	–19,490
=	Cash flow from financing activities	–21,810	–2,198	–19,612
	Changes in cash and equivalents	7,483	44,244	–36,761
	+/– Changes in cash and equivalents due to exchange rates	8	–77	85
+	Cash and equivalents at the beginning of the period	138,557	172,131	–33,574
=	Cash and equivalents at the end of the period	146,048	216,298	–70,250

Summary of financial assets

	31 March 2019 ¤000s	31 March 2018 ¤000s	Change ¤000s
Liquid funds	98,623	148,496	–49,873
Capital investments with a specific maturity of up to 3 months	47,425	67,802	–20,377
Cash and cash equivalents	146,048	216,298	–70,250
Non-current financial assets	2,276	2,891	–615
Other non-current financial assets	57,354	45,321	12,033
Capital investments with a specific maturity of more than 3 months	161,981	118,795	43,186
Financial assets	367,659	383,305	–15,646

Financial calendar 2019

Annual General Meeting	11 July 2019
Dividend payout	16 July 2019
Half-year report	29 August 2019
Analyst conference	30 August 2019
Quarterly report	7 November 2019
Preliminary figures 2019	February 2020
Bloomberg code	FIE
Reuters code	FIEG.DE
Securities ID number/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
in ¤ million	Germany	Switzerland	Austria	Other	Consolidation	value
Sales revenues from
the segment	313.8 (296.5)	43.9 (41.5)	22.3 (20.4)	12.4 (10.5)	–20.6 (–19.0)	371.8 (349.9)
Sales revenues from
other segments	20.5 (18.9)		0.1 (0.1)
Outside sales
revenues	293.3(277.6)	43.9 (41.5)	22.2 (20.3)	12.4 (10.5)		371.8(349.9)
Cost of materials	73.1 (66.9)	9.4 (8.2)	5.0 (4.8)	3.7 (3.2)	–18.1 (–16.7)	73.1 (66.4)
Personnel costs	127.0 (119.2)	18.0 (16.6)	8.2 (7.7)	4.7 (3.8)		157.9 (147.3)
Scheduled depreciation	23.0 (9.1)	3.7 (1.1)	1.7 (0.4)	2.4 (0.5)		30.8 (11.1)
Expenses in the financial
result	0.7 (0.3)	0.1 (0.0)	0.1 (0.0)	0.2 (0.1)	–0.2 (–0.1)	0.9 (0.3)
Income in the financial
result	0.7 (0.2)	0.1 (0.1)			–0.2 (–0.1)	0.6 (0.2)
Earnings before tax
– in segments excl.
investment income	57.8 (52.4)	6.6 (6.7)	4.3 (3.0)	–1.5 (–0.7)		67.2 (61.4)
Taxes on income and
earnings	18.3 (17.4)	1.2 (1.3)	0.8 (0.4)	0.3 (–0.1)	0.0 (–0.1)	20.6 (18.9)
Consolidated net
income for the
period	39.5 (35.0)	5.4 (5.4)	3.5 (2.6)	–1.8 (–0.6)	0.0 (0.1)	46.6 (42.5)
Non-current segment assets excluding finan
cial instruments and
deferred tax assets	555.7 (276.4)	82.0 (28.4)	40.0 (6.1)	58.2 (17.2)		735.9 (328.1)
Additions to non-current
segment assets excluding
financial instruments and
deferred tax assets	283.2 (12.6)	53.9 (1.0)	35.9 (0.1)	36.9 (0.9)		409.9 (14.6)
Shares in associates	5.1 (0.0)					5.1 (0.0)
Deferred tax assets	10.5 (10.4)		0.3 (0.3)	0.9 (2.3)		11.7 (13.0)

Segment reporting 1.1 to 31.3.2019 The figures for the previous year are indicated in parentheses.

Consolidated profit and loss account

For the period from 1 January to 31 March	2019 in ¤000s	2018 in ¤000s	Change in %
1. Consolidated sales	371,758	349,850	6.3
2. Changes in inventories	7,638	–2,027	–476.8
Total consolidated sales	379,396	347,823	9.1
3. Other operating income	3,744	5,730	–34.7
4. Cost of materials	–73,115	–66,396	10.1
5. Personnel costs	–157,855	–147,337	7.1
6. Write-downs on rights of usufruct from leases	–19,185	0
7. Other write-downs	–11,623	–11,051	5.2
8. Other operating expenses	–53,845	–67,365	–20.1
9. Interest expenditure from leases	–561	0
10. Other expenses in the financial result	–373	–262	42.4
11. Income in the financial result	578	235	146.0
12. Result before taxes	67,161	61,377	9.4
13. Taxes on income and earnings	–20,523	–18,903	8.6
14. Consolidated net income for the period	46,638	42,474	9.8
15. Income attributable to minority interests	–1,202	–1,044	15.1
16. Profits to be allocated to parent company shareholders	45,436	41,430	9.7
Earnings per share in ¤ (diluted/basic)	0.54	0.49

Consolidated balance sheet

Assets	Position as at 31 March 2019 in ¤000s	Position as at 31 December 2018 in ¤000s
A. Non-current fixed assets
I. Intangible assets	38,269	33,987
II. Goodwill	47,558	47,509
III. Tangible assets	258,499	262,253
IV. Investment property	13,531	13,639
V. Rights of usufruct from leases	378,004	0
VI. Shares in associates	5,139	5,218
VII. Other financial assets	2,276	2,315
VIII. Deferred tax assets	11,726	12,276
IX. Other financial assets	57,354	61,574
X. Receivables from leases	1,337	0
	813,693	438,771
B. Current assets
I. Inventories	150,183	136,307
II. Trade debtors	45,064	38,579
III. Other financial assets	52,248	55,473
IV. Non-financial assets	21,999	19,241
V. Tax assets	10,093	8,062
VI. Financial assets	161,981	109,803
VII. Cash and cash equivalents	146,048	138,557
	587,616	506,022
	1,401,309	944,793
Liabilities	Position as at 31 March 2019 in ¤000s	Position as at 31 December 2018 in ¤000s
A. Equity
I. Subscribed capital	84,000	84,000
II. Capital reserves	92,652	92,652
III. Profit reserves	559,827	514,391
IV. Other reserves	16,963	17,966
Consolidated equity of the parent company's shareholders	753,442	709,009
V. Non-controlling interests	256	207
	753,698	709,216
B. Non-current liabilities
I. Accruals	26,527	25,482
II. Financial liabilities	1,313	1,363
III. Deferred tax liabilities	13,043	12,135
IV. Liabilities from leases	304,345	0
C. Current liabilities	345,228	38,980
I. Accruals	57,271	48,784
II. Financial liabilities	124	115
III. Liabilities from leases	75,376	0
IV. Trade creditors	70,149	56,337
V. Other financial liabilities	20,715	21,843
VI. Non-financial liabilities	68,790	58,544
VII. Income tax liabilities	9,958	10,974
	302,383	196,597