JENSEN-GROUP N.V. — Earnings Release 2017

Aug 10, 2017

Under Embargo until 10/08/2017 - 17.40 CET Regulated information

Press Release

High activity results in higher profitability

Highlights First half year 2017

• Revenue of the first half-year of 2017 amounts to 173.5 million euro, a 5.5% increase compared to last year.
• Operating profit (EBIT) for the first six months amounts to 16.3 million euro, which is 17.3% higher than last year.
• Cash flow (EBITDA) for the first half-year amounts to 18.5 million euro, a 20.7% increase compared to last year.
• Net income attributable to the shareholders amount to 11.1 million euro (Earnings per Share of 1.42 euro), an increase of 17.1% compared to last year.
• Net financial debt amounts to 2.1 million euro and increased by 5.3 million euro compared to December 2016.

Summary overview

Income Statement 30/06/2017- 30/06/2016 Non-audited, consolidated key figures

		June 30, 2017 June 30, 2016	Change
(million euro)	6M	6M
Revenue	173,5	164,4	5,5%
EBIT	16,3	13,9	17,3%
Cash flow (EBITDA) 1	18,5	15,3	20,7%
Financial result	-0,8	-0,8	6,2%
Profit before taxes	15,5	13,1	18,0%
Taxes	-4,7	-3,4	36,0%
Net income continuing operations	10,8	9,7	11,6%
Result from discontinued operations	0,0	-0,2	-116,7%
Result of companies consolidated under equity method	0,1	-0,1	-354,4%
Result attributable to Non Controlling Interest	-0,1
Net income (Group share in the profit)	11,1	9,5	17,1%
Net cash flow 2	13,3	11,1	19,6%

Balance sheet as of 30/06/2017- 31/12/2016 Non-audited, consolidated key figures

		June 30, 2017 Dec 31, 2016	Change
(million euro)	6M	12M
Equity	105,1	100,2	4,9%
Net financial debt	2,1	-3,2	-165,8%
Assets held for sale	0,4	0,5	-7,6%
Total assets	222,0	210,6	5,4%

Non-audited, consolidated key figures per share

		June 30, 2017 June 30, 2016	Change
(euro)	6M	6M
Cash flow (EBITDA) 1	2,37	1,96	20,9%
Profit before taxes	1,98	1,68	17,9%
Net profit share of the Group (EPS)	1,42	1,24	14,5%
Net cash flow 2	1,70	1,42	19,7%
Equity (June 30, 2017 - December 31, 2016)	13,45	12,82	4,9%
Number of shares (end of period)	7.818.999	7.818.999
Number of shares (average)	7.818.999	7.818.999

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 liabilities and charges.

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 liabilities and charges.

Operating activities

• Revenue
• o The Group started from a strong order backlog at the beginning of the year, resulting in a higher revenue than in the first half of 2016.
• o At June 30, 2017 the order backlog increased by 15% compared to the backlog at June 30, 2016. Excluding orders that will not be delivered in 2017 and considering the finished goods and work in progress, production backlog is 18% higher than as at June 2016.
• EBIT
• o Consolidated EBIT increased from 13.9 million euro to 16.3 million euro (+17.3%) thanks to the higher activity level.

Other activities

• Total net finance cost amounts to 0.8 million euro and relates to interest charges (0.3 million euro), net currency losses (0.2 million euro) and other charges (0.3 million euro).
• The net tax charges amount to 4.7 million euro.
• Compared to December 2016, the net financial debt increased by 5.3 million because of the high activity level.
• On February 1, 2017 JENSEN-GROUP decided to acquire one of its major German suppliers. This backward integration improves our ability to control the quality of the product and to react faster to market conditions. As this transaction represents only a change from third party supplier to internal supplier, it does not have a material impact on the Company's consolidated figures.
• 0n 11 May, 2017, the JENSEN-GROUP increased its shareholding in TOLON GLOBAL MAKINA Sanyi Ve Tikaret Sirketi A.S., Turkey, by 6.33% to 36.33%. The JENSEN-GROUP has the option to acquire up to 49% of the shares within a period of three years.

Outlook

At June 30, 2017 the order backlog increased by 15% compared to the backlog at June 30, 2016. Excluding orders that will not be delivered in 2017 and considering the finished goods and work in progress, production backlog is 18% higher than as at June 2016.

The most important risk factors remain rapid changes in demand, availability of financing to our customers, high exchange rate volatility and fluctuating raw material, energy and transport prices.

Shareholders' calendar

November 14, 2017 (evening): Trading update Q3 March 2018: Full year results 2017 (Analysts' meeting) May 2018: Shareholders' meeting

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 24 countries and has distribution in more than 40 countries. Worldwide, JENSEN-GROUP employs about 1,650 employees.

This press release and the full text of the Interim Financial Information, in accordance with IAS 34, are available on the corporate website www.jensengroup.com.

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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