Wolford AG — Earnings Release 2013

Dec 11, 2013

Ad hoc announcement

Wolford AG / Keyword(s): Half Year Results/Profit Warning

Wolford announces results for the first six months and revised guidance

Ad hoc announcement transmitted by DGAP - a company of EQS Group AG. The
issuer is solely responsible for the content of this announcement.

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Wolford announces results for the first six months and revised guidance
for the 2013/14 financial year

• Revenues decline by 2.3% to EUR 74.81 million, earnings below prior
  year

• Negative operating earnings expected for 2013/14 financial year

• Continued solid balance sheet structure and financial indicators

• Strategic refocussing and optimization measures launched

Vienna/Bregenz, December 11, 2013. Wolford AG, which is listed on the
Vienna Stock Exchange, today announced results for the first half of
2013/14 in an ad-hoc press release. The first six months of the current
financial year closed with a 2.3% decline in revenues to EUR 74.81 million
and EBITDA of EUR 1.64 million, compared with EUR 4.01 million in the
previous year. EBIT totaled EUR -2.29 million (H1 2012/13: EUR -0.09
million). After an adjustment for foreign exchange effects, the revenue
decline amounted to a comparatively low 0.7%. Negative foreign exchange
effects for the Group's currency, the euro, resulted chiefly from the
weaker US dollar and British pound. Wolford recorded a 5% increase in
revenues at its own retail locations as well as sound 20% growth in the
online shops. The wholesale business remained reserved during the reporting
period, which led to a decline of 11% and, in total, to negative revenue
and earnings development for the reporting period. This trend continued
during the second quarter, and revenues and earnings for the period from
August to October were therefore below expectations.

The balance sheet structure of Wolford AG remained solid as of the
quarterly closing date on October 31, 2013. Equity totaled EUR 75.90
million (October 31, 2012: EUR 81.46 million) and the equity ratio equaled
50% (October 31, 2012: 52%). Gearing reached 33% (October 31, 2012: 30%),
and the company has sufficient funds to finance ongoing business operations
and the growth strategy. This strong balance sheet also ensures the quick
and consistent implementation of the necessary measures to restore
profitability.

The Management Board of Wolford AG has revised its guidance for the current
financial year based on the development of revenues and earnings during the
first six months and the implementation of optimization measures. From the
current point of view, EBIT is expected to total up to approx. EUR -5
million, including non-recurring expenses of up to EUR 3 million, and
revenues should remain at the previous year's level. The Management Board
plans to finance the strategic refocussing and optimization measures
described below, which were approved by the Supervisory Board in a meeting
today, from internal cash flow and the sale of non-operating assets.

Wolford intends to focus the structure of its product lines and its
collection even more on customers' expectations in the future. This will be
reflected in concentration on the core expertise of Legwear and
figure-embracing complementary products, with an increased offering, above
all, of (body-shaping) Lingerie and Underpinnings (e.g. bodys, tops,
shirts, etc.). The Ready-to-wear line will be reduced to products that
match this more precise positioning. The Swimwear product group will be
discontinued beginning with the 2015 spring/summer collection. This
refocussing is designed to support a more systematic market orientation, to
bundle innovative power and creativity, to reduce complexity and to
streamline and optimize internal processes and the related costs. Efforts
in the distribution area will include a further critical analysis of the
company's own locations and the implementation of suitable measures.
Wolford is committed to the verticalization of distribution, but future
plans will also concentrate on the opening of its own boutiques at top
locations in key strategic markets and growth regions for the brand. In
order to effectively counter the longstanding declines in the wholesale
business, Wolford will introduce new concepts to gain new boutique partners
and to inspire department store and multibrand customers even more for its
products in future. Further investments will be made in the development of
the online business to optimally utilize the potential of this sales
channel, which is particularly well suited for Wolford's products. Market
communications will also be intensified to strengthen the recognition of
the Wolford brand by end customers, partners and the retail trade. With
these measures, the company wants to return to profitability as quickly as
possible and sustainably improve its competitive position.

Details on results for the first six months are provided in the report on
the first half-year, which is available on the company's website under
www.wolford.com as of December 13, 2013.

For additional information contact:
Holger Dahmen (CEO)
Thomas Melzer (CFO)
+43 (0) 5574 690-1268 (IR)
+43 (0) 5574 690-1477 (PR)
investor@wolford.com

Results for the first half of 2013/14

Earnings Data 1st half year 05/ 1st half Chg. in % 2012/13
13 - 10/13 year
05/12 -
10/121)
in EUR
Revenues mill. 74,81 76,59 -2 156,47
in EUR
EBITDA mill. 1,64 4,01 -59 7,90
in EUR
EBIT mill. -2,29 -0,09 >100 -0,91
Earnings in EUR
before tax mill. -2,90 -0,65 >100 -2,25
Earnings after in EUR
tax mill. -1,96 -0,59 >100 -2,76
Employees on
average FTE 1562 1611 -3 1606

Balance Sheet Data 31/10/2013 31/10/ Chg. in % 30/04/2013
20121)
in EUR
Equity mill. 75,90 81,46 -7 78,15
in EUR
Net debt mill. 25,38 24,13 +5 15,73
in EUR
Working capital mill. 42,74 46,35 -8 38,26
in EUR
Balance sheet total mill. 150,91 156,56 -4 142,32
Equity ratio in % 50 52 ‒ 55
Gearing in % 33 30 ‒ 20

1) Adjustment to reflect the premature application of IAS 19 (revised).

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Language: English
Company: Wolford AG
Wolfordstrasse 1
6900 Bregenz
Austria
Phone: +43/5574/6901268
Fax: +43/5574/6901219
E-mail: investor@wolford.com
Internet: www.wolford.com
ISIN: AT0000834007
WKN: 83400
Indices: ATX
Listed: Freiverkehr in Berlin, München, Stuttgart; Frankfurt in Open
Market ; Wien (Amtlicher Handel / Official Market)

End of Announcement DGAP News-Service

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