JENSEN-GROUP N.V. — Earnings Release 2014

Mar 4, 2015

Press Release

Record profit thanks to record sales

Highlights 2014

• Revenue 2014 amounts to 239.6 million euro, a 8.2% increase compared to last year.
• Operating profit (EBIT) amounts to 19.7 million euro, which is 31.2% higher than last year.
• Cash flow (EBITDA) amounts to 22.5 million euro, a 17.6% increase compared to last year.
• Net profit from the continuing operations amounts to 13.0 million euro (Earnings per Share of 1.66 euro), an increase of 32.1% compared to last year.
• Net cash position increased by 3.7 million euro, from 2.7 million euro to 6.4 million euro.
• JENSEN-GROUP has a dividend policy of distributing 0.25 euro per share annually unless the results or the financial statement do not allow such dividend. Based on these excellent results for 2014, the board proposes to add a one-time dividend of 0.15 euro per share.
• JENSEN-GROUP continues its geographic expansion with the opening of JENSEN Spain S.L. as it has taken over the business activities of their Spanish Distributor Boaya S.L. on February 4, 2015.

Summary overview

Income Statement 31/12/2014 - 31/12/2013
Consolidated, audited key figures
(million euro)	Dec 31, 2014 Dec 31, 2013	Change
		12M 12M
Revenue	239,6	221,4	8,2%
EBIT	19,7	15,0	31,2%
Cash flow from operations (EBITDA) 1	22,5	19,1	17,6%
Financial result	- 1,5	- 1,5	-1,8%
Profit before taxes	18,2	13,5	34,8%
Taxes	- 5,2	- 3,6	42,1%
Net income continuing operations	13,0	9,9	32,1%
Result from discontinued operations	0,1 -	0,1 -	-13,9%
Net income (Group share in the profit)	13,0	9,8	32,4%
Net cash flow 2	15,8	14,0	13,2%

Balance sheet as of 31/12/2014- 31/12/2013

Consolidated, audited key figures
(million euro)	Dec 31, 2014 Dec 31, 2013		Change
	12M	12M
Equity	70,1	62,2	12,7%
Net financial debt	- 6,4	- 2,7	134,6%
Assets held for sale	0,4	0,4	13,5%
Total assets	157,7	137,4	14,8%

Consolidated, audited key figures per share

(euro)	Dec 31, 2014 Dec 31, 2013 12M	12M	Change
Cash flow from operations (EBITDA) 1	2,86	2,39	19,7%
Profit before taxes	2,32	1,69	37,3%
Profit after taxes continuing operations (EPS)	1,66	1,23	35,0%
Net cash flow 2	2,01	1,75	14,9%
Equity	8,97	7,83	14,6%
Number of shares (end of period)	7.818.999	7.943.200	1,6%
Number of shares (average)	7.868.170	7.999.536	1,7%

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 other liabilities and charges.

EBITDA only includes the provisions for other liabilities and charges and does not take into account the provisions for employee benefit obligations. The comparable figures of last year are re-calculated accordingly. 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 other liabilities and charges. Net cash flow only includes the provisions for other liabilities and charges and does not take into ac count the provisions for employee benefit obligations. The comparable figures of last year are re-calculated accordingly.

Operating activities

• Revenue
• o Revenue increased to 239.6 million euro thanks to a good order intake throughout the year. Also during the third quarter, the group had a high order intake and high revenues and this is exceptional.
• EBIT
• o Consolidated EBIT is 19.7 million euro compared to 15.0 million euro last year. EBIT increased thanks to a higher activity level, leading to a better overhead absorption.

Other activities

• Total net finance cost amounts to 1.5 million euro. This primarily relates bank charges (0.8 million euro) and currency losses (0.4 million euro).
• The net tax charges amount to 5.2 million euro.
• Compared to December 2013, the net cash position increased by 3.7 million euro, from 2.7 million euro to 6.4 million euro.
• The provisions increased by 2.6 million euro due to an increase in provision for employee benefit obligations: the changes in assumptions, especially a decrease in the discount rate, resulted in a higher liability. After taxes, 3.4 million euro of this increase is recognized in other comprehensive income.
• JENSEN-GROUP continues its geographic expansion with the opening of JENSEN Spain S.L. as it has taken over the business activities of their Spanish Distributor Boaya S.L. on February 4, 2015. This transaction will not have a material impact on the financial statements of JENSEN-GROUP as most of the activities are already reflected in the consolidated Group results as distributors' sales.

Outlook

The order backlog in December 2014 was 33% higher; taking into account equipment already produced by year-end the order backlog is 13% higher than at December 2013. JENSEN-GROUP considers the level of orders in the backlog adequate to get off to a good start in 2015.

The main business risks have not changed materially from last year. Major risk factors are the volatility in the financial markets that affects our customers' investment decisions and their capacity to find financing, as well as competitive pressure. Other risks are exchange rate volatility and fluctuating raw material prices, energy and transportation costs. The Group is also receiving more requests for financing from specific customers. This increases our exposure to having to take back machinery over the life time of the financing.

Dividend

JENSEN-GROUP has a dividend policy of distributing 0.25 euro per share annually unless the results or the financial statement do not allow such dividend. Based on these excellent results for 2014, the board proposes to add a one-time dividend of 0.15 euro per share.

Subject to approval during the Annual Shareholders' meeting of May 19, 2015, the share will trade ex-coupon as of May 27 and dividend will be payable as from May 29, 2015 at the counters of KBC bank upon presentation of coupon n°10.

Share buy-back

The Board of Directors of November 14, 2013 decided to implement a share repurchase programme to buy back maximum 800.300 of its shares. The shares are bought at the stock exchange by an investment bank mandated by the Board of Directors. The buy-back mandate expires on October 4, 2017. As per December 31, 2014, JENSEN-GROUP holds 183,969 treasury shares.

Consolidated statement of comprehensive income

(in thousands of euro)	December 31, 2014	December 31, 2013
Revenue	239.632	221.416
Raw materials and consumables used	-113.739	-102.223
Services and other goods	-26.082	-25.307
Employee compensation and benefit expense	-77.023	-74.668
Depreciation, amortisation, write downs of assets, impairments	-3.161	-4.430
Total expenses	-220.005	-206.628
Other Income / ( Expense)	53	213
Operating profit before tax and finance (cost)/ income	19.680	15.001
Financial income	1.722	3.123
Interest income	1.122	1.444
Other financial income	600	1.679
Financial charges	-3.173	-4.601
Interest charges	-1.327	-2.198
Other financial charges	-1.846	-2.403
Net financial charges	-1.451	-1.478
Profit before tax	18.229	13.523
Income tax expense	-5.185	-3.649
Income taxes	-5.180	-3.638
Deferred taxes	-5	-11
Profit for the year from continuing operations	13.044	9.874
Result from discontinued operations	-62	-72
Consolidated profit for the year	12.982	9.802
Other comprehensive income:
items that may be subsequently reclassified to Profit and Loss
Financial instruments	-403	939
Currency translation differences	2.270	-1.276
Items that will not be reclassified to Profit and Loss
Ac tual gains/(losses) on Defined Benefit Plans	-4.826	1.667
Tax on OCI	1.569	-782
Other comprehensive income for the year	-1.390	548
Total comprehensive income for the year	11.592	10.350
Profit attributable to:
Equity holders of the company	12.982	9.802
Total comprehensive income attributable to:
Equity holders of the company	11.592	10.350
Basic and diluted earnings per share (in euro's)	1,6 5	1,23
Weighted average number of shares	7.868.170	7.999.536

Shareholders' calendar

March 27, 2015: Publication annual report on the corporate website May 18, 2015 (evening): Publication of the interim declaration, covering the period from January 1, 2015. May 19, 2015:10.00 am. Shareholders' meeting at JENSEN-GROUP Headquarters, Ghent August 18, 2015 (evening): Half year results 2015 (Analysts' meeting August 19)

Audit

The statutory auditor has confirmed that the audit of the consolidated accounts, which is substantially complete, has to date not revealed any material misstatement in the draft consolidated accounts, and that the accounting data reported in the press release is consistent, in all material respects, with the draft accounts from which it has been derived.

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 21 countries and has distribution in more than 40 countries. Worldwide, JENSEN-GROUP employs about 1.220 employees.

This press release is also available on the corporate website www.jensengroup.com.

(End of press release)

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.