VERBIO Vereinigte BioEnergie AG

Earnings Release • Apr 30, 2013

News Details

Ad-hoc | 30 April 2013 10:36

VERBIO Vereinigte BioEnergie AG: CHANGED REGULATORY FRAMEWORK CONDITIONS AS WELL AS MARKET DISTORTIONS LEAD TO EXTRAORDINARY DEPRECIATIONS AND STRATEGIC RESTRUCTURING OF THE GROUP

VERBIO Vereinigte BioEnergie AG / Key word(s): Quarter Results/Profit Warning

30.04.2013 10:36

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CHANGED REGULATORY FRAMEWORK CONDITIONS AS WELL AS MARKET DISTORTIONS LEAD
TO EXTRAORDINARY DEPRECIATIONS AND STRATEGIC RESTRUCTURING OF THE GROUP

• Impairment of goodwill and write-offs related to fixed assets

• Strategy adjustment in the raw materials supply as well as value
  adjustments in inventories

• Sale of Märka Group decided

• Adjustment of the Groups corporate structure planned

Zörbig/Leipzig, 30 April 2013 - The changed framework and market conditions
for biofuels within the European Union (EU) have prompted the Management
Board to subject the value of the goodwill attributed to the biodiesel
segment and the value of the fixed assets in the bioethanol segment to a
review. Present market distortions in raw materials and finished products
make value adjustments in inventories necessary in addition. VERBIO will
report a Group period result according to IFRS of EUR -143.3 million as at
31 March 2013 (9 M 2011/2012: EUR 6.6 million). The result in the amount of

• EUR 102.3 million is due to amortisations of goodwill, customer
  relations and depreciations of fixed assets, each without effects on
  liquidity,

• EUR 14.2 million from value adjustments to be applied to inventories,
  and

• EUR 10.8 million from lesser proceeds from the sale of biofuel quotas
  in the third quarter.

In the first half year of the business year 2012/2013 the import of
biodiesel from Argentina and Indonesia as well as biodiesel produced from
used cooking oil has had a negative effect on the results of VERBIO. The
measures initiated by the EU Commission against the subsidised imports as
well as the verification obligations for biodiesel from used cooking oil
that are subject to stricter requirements since 1 January 2013 have shown
positive effects, but did not yet lead to the biodiesel markets recovery.

The EU Commission has tangible plans for limiting the use of first
generation biofuels, such as biodiesel made from vegetable oil, and
discontinuing its promotion.

Furthermore, large quantities of low-price vegetable oil as a raw material
from Asia flood the European biodiesel plants so that rapeseed oil is
increasingly being pushed out of the market. VERBIO cannot escape these
developments. The Management Board has therefore decided to no longer
pursue the present strategy of procuring exclusively regional raw materials
and to sell Märka GmbH. As an alternative, the Management Board is also
looking into a sale of particular Märka sites as well as the establishment
of a joint venture for Märka. In this process, the Groups corporate
structure will be adjusted to the changed conditions. The aim of these
measures is being able to respond more flexibly and quicker to market
distortions and market changes in the future, both on the procurement as
well as the sales side.

The planned measures will lead to a reduction of corporate debt (working
capital) by more than EUR 100 million as well as to improved profitability
- while maintaining an equity ratio of appr. 50 percent. The Management
Board expects to be able to accomplish a positive operative result in the
fourth quarter of the business year 2012/2013.

A detailed corporate news article will be available shortly on the website
of our company at www.verbio.de. The interim report for the third quarter
2012/2013 will be accessible at www.verbio.de on 8 May 2013 starting from
12:00 p.m.

30.04.2013 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: VERBIO Vereinigte BioEnergie AG
Augustusplatz 9
04109 Leipzig
Germany
Phone: +49 (0)341 30 85 30 290
Fax: +49 (0)341 30 85 30 298
E-mail: ir@verbio.de
Internet: www.verbio.de
ISIN: DE000A0JL9W6
WKN: A0JL9W
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Stuttgart

End of Announcement DGAP News-Service

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