Wulff-Yhtiöt Oyj — Earnings Release 2019

Feb 17, 2020

Wulff Group Plc’s Financial Statements Release January 1–December 31, 2019

Wulff Group Plc’s Financial Statements Release January 1–December 31, 2019

FINANCIAL STATEMENTS RELEASE     17.2.2020 at 9.00 A.M.
This is a summary of Wulff Group Plc’s Financial Statements Release January
1–December 31, 2019. The complete report is attached to this stock exchange
release as a pdf-file. The report is also available at the website www.wulff
-group.com.

Net sales and operating profit grew in the final quarter of the financial year

1.10.–31.12.2019 BRIEFLY

· Net sales totalled EUR 15.1 million (14.8), increased by 1.7%
· EBITDA and comparable EBITDA were EUR 1.1 million (0.8), 7.6% of net sales
(5.1)
· Operating profit (EBIT) and comparable operating profit (EBIT) were EUR 0.8
million (0.6)
· Earnings per share and comparable earnings per share (EPS) were EUR 0.09
(0.07)
· Wulff Group Plc Board of Directors made a resolution of medium-term
financial targets of average annual growth of net sales of 5-10%, growing
comparable operating profit-% and growing dividend per share

1.1.–31.12.2019 BRIEFLY

· Net sales totalled EUR 56.3 million (55.9), increased by 0.8%
· EBITDA was EUR 3.1 million (1.9), 5.4% of net sales (3.4) and comparable
EBITDA was EUR 3.2 million (1.9), 5.7% of net sales (3.4)
· Operating profit (EBIT) was EUR 1.6 million (1.5) and comparable operating
profit (EBIT) was EUR 1.7 million (1.5). Comparable operating profit (EBIT) grew
11.9%
· Earnings per share (EPS) were EUR 0.15 (0.15) and comparable earnings per
share were EUR 0.17 (0.15)
· Equity-to-assets ratio was 39.2 % (49.1)
· Elina Pienimäki, 40, started as new Wulff Group Plc CEO and Chairman of
Wulff Group Plc’s Executive Board
· Wulff invested in its own premises EUR 6.5 million in Finland and Sweden
· The Board proposes to the Annual General Meeting to be held on April 2, 2020
that a dividend of EUR 0.11 per share to be paid
· Wulff estimates that the comparable operating profit of 2020 will increase
from 2019

WULFF GROUP PLC’S CEO ELINA PIENIMÄKI

“Thank you for our customers that you have been creating growth with us. We got
to end the final quarter of 2019 with positive figures. It is great that both
our net sales and operating profit grew. The figures present good choises made
and uncompromised actions taken according to our strategy: also our partners and
customers believe, that the world is possible to make the world better one
workplace at a time. It is important for us to develop our own and our
customers’ operations more sustainable constantly. In addition to developing our
product and service portfolio one of our significant sustainable actions taken
last summer was building a solar power system in our premises in Espoo, Kilo. We
participate in preventing the climate change in compensating all Wullfsters’
carbon footprint by planting trees. Wulff staff will plant trees together with
the Savotta forestry management association in the spring of 2020. The year 2020
is for Wulff the year of developing good energy, sustainability and growth: I
believe that together with good and skilful people we can generate profitable
growth. The 130[th] anniversary of the company makes the year also great! Few
companies can say they have survived two world wars and the Great Depression.
Wulff can and gets to celebrate its 130[th] anniversary together with customers
and partners in the fall.”

GROUP’S NET SALES AND RESULT PERFORMANCE

In January-December 2019 net sales totalled EUR 56.3 million (55.9), and EUR
15.1 (14.8) million in the final quarter. Net sales increased by 0.8% during the
whole financial year mainly due to the sales of Canon Business Center printing
solution services. The Canon Business Center was acquired to the group in August
2018. The increase in the net sales in the fourth quarter was mainly due to fair
event sales growth.

In January-December 2019 the gross margin amounted to EUR 19.8 million (19.7)
being 35.2% (35.2), and EUR 5.5 million (5.6) in the final quarter being 36.3%
(37.5). The gross margin developed positively from printing equipment and
solutions sales in January-December 2019.

In January-December 2019 employee benefit expenses amounted to EUR 11.9 million
(11.5), 21.2% (20.7) of net sales and EUR 3.2 million (3.1), 20.9% (20.9) of net
sales in the fourth quarter. The employee benefit expenses grew with the
acquisition of the Canon Business Center printing equipment and solutions
business in 2018. The company employs 11 people.

Other operating expenses were to EUR 5.0 million (6.3) in January-December 2019
being 9.0% (11.4) of net sales and respectively EUR 1.2 million (1.8) in the
fourth quarter, being 8.2% (11.8) of net sales. In total the other operating
expenses were less by EUR 1.3 million compared to previous reporting year. The
main reason for this is presenting the office premises rents and equipment
leases in depreciations EUR -0.9 million and in interest expenses EUR -0.0
million instead of presenting them in other operating expenses according to the
IFRS 16 Leases -standard. More information on the impact of the adaption of the
IFRS 16 Leases -standard has been presented in the notes of the Report.

In the third quarter Wulff moved to its own premises in Kilo, Espoo, Finland in
September 2019. The relocation arrangements resulted in nonrecurring other
operating expenses and employee costs of approximately EUR 0.1 million in total.
The relocation arrangements have been presented as items affecting
comparability, which impact has been recognised in EBITDA, operating profit
(EBIT) and earnings per share (EPS). There were no items impacting the
comparability in the fourth quarter of 2019 or in 2018.

In January-December 2019 EBITDA amounted to EUR 3.1 million (1.9), being 5.4%
(3.4) of net sales, and EUR 1.1 million (0.8) in the fourth quarter, being 7.6%
(5.1) of net sales. The growth of EBITDA EUR 0.9 million and 1.5%-points was due
to the implementation of IFRS 16 Leases standard. In January-December the
comparable EBITDA amounted to EUR 3.2 million (1.9), being 5.7% (3.4) of net
sales.

The depreciations of the properties were EUR -0.2 million in the reporting
period and EUR -0.1 million in the fourth quarter. The premises in Kilo, Espoo
and Ljungby, Sweden were acquired during the reporting period, so there were no
depreciations of properties in the comparison period.

The operating profit (EBIT) amounted to EUR 1.6 million (1.5), being 2.8% (2.7)
of net sales and respectively EUR 0.8 million (0.6), 5.1% (4.3) in the fourth
quarter. The comparable operating profit (EBIT) for the whole year amounted to
EUR 1.7 million (1.5), being 3.0% (2.7) of net sales. Comparable operating
profit (EBIT) grew 11.9% in January-December 2019.

In January-December 2019 the financial income and expenses totalled (net) EUR
-0.4 million (-0.3) including interest expenses of EUR -0.2 million (-0.1) and
mainly currency-related other financial items (net) EUR -0.2 million (-0.2). In
the fourth quarter, the financial income and expenses (net) totalled EUR -0.1
million (-0.1).

In January-December 2019 the result before taxes was EUR 1.2 million (1.2), and
EUR 0.7 million (0.5) in the fourth quarter. The comparable result before taxes
for the financial year was EUR 1.3 million (1.2).

The net profit was EUR 1.0 million (1.1) in January-December 2019 and in the
fourth quarter EUR 0.6 million (0.4). The comparable result was EUR 1.2 million
(1.1) in January-December 2019.

Earnings per share (EPS) were EUR 0.15 (0.15) in January-December 2019, and EUR
0.09 (0.07) in the fourth quarter. Comparable earnings per share (EPS) were EUR
0.17 (0.15) in January-December 2019.

KEY FIGURES

IV IV I-IV I-IV
EUR 1000 2019 2018 2019 2018
Net sales 15 14 56 344 55 889
081 831
Change in net sales, % 1.7% -6.3% 0.8% -1.8%
Gross profit 5 477 5 557 19 825 19 670
Gross profit, % 36.3% 37.5% 35.2% 35.2%
EBITDA 1 148 750 3 067 1 920
EBITDA margin, % 7.6% 5.1% 5.4% 3.4%
Operating profit/loss 763 643 1 570 1 508
Operating profit/loss margin, % 5.1% 4.3% 2.8% 2.7%
Profit/Loss before taxes 703 548 1 194 1 243
Profit/Loss before taxes margin, % 4.7% 3.7% 2.1% 2.2%
Net profit/loss for the period 605 424 1 039 1 025
attributable to equity holders of the
parent company
Net profit/loss for the period, % 4.0% 2.9% 1.8% 1.8%
Earnings per share, EUR (diluted = non 0.09 0.07 0.15 0.15
-diluted)
Return on equity (ROE), % 4.9% 3.6% 8.5% 9.3%
Return on investment (ROI), % 4.5% 4.4% 7.9% 9.5%
Equity-to-assets ratio at the end of 39.2% 49.1% 39.2% 49.1%
period, %
Debt-to-equity ratio at the end of period 66.2% 15.8% 66.2% 15.8%
Equity per share at the end of period, 1.76 1.72 1.76 1.72
EUR *
Investments in non-current assets 290 59 7 359 446
Investments in non-current assets, % of 1.9% 0.4% 13.1% 0.8%
net sales
Treasury shares held by the Group at the 79 79 79 000 79 000
end of period 000 000
Treasury shares, % of total share capital 1.1% 1.1% 1.1% 1.1%
and votes
Average number of outstanding shares 6 828 6 828 6 828 628 6 643 696
628 628
Number of total issued shares at the end 6 907 6 907 6 907 628 6 907 628
of period 628 628
Personnel on average during the period 200 193 198 191
Personnel at the end of period 200 191 200 191

* Equity attributable to the equity holders of the parent company / Number of
shares excluding the acquired own shares

RISKS AND UNCERTAINTIES IN THE NEAR FUTURE

The demand for workplace products and office supplies is strongly affected by
the general economic development and
competition in the market. Business operations are also affected by normal
business risks such as the success of the Group’s strategy and operative risks
stemming from the personnel, logistics and IT environments. Approximately half
of the Group’s net sales come from other than euro-currency countries.
Fluctuation of the currencies affects the Group’s net result and balance sheet.

SUBSEQUENT EVENTS

The Group has not had any significant subsequent events after the reporting
period.

BOARD OF DIRECTORS’ PROPOSAL FOR THE ANNUAL RESULT

The Group’s parent company Wulff Group Plc’s distributable funds totalled EUR
1.6 million. The Group’s net result attributable to the parent company
shareholders was EUR 1.0 million (1.0), i.e. EUR 0.15 per share (0.15). The
Board of Directors proposes to the Annual General Meeting to be held on April
2nd, 2020 that a dividend of EUR 0.11 per share, i.e. EUR 0.8 million, be paid
for the financial year 2019, and the remaining distributable funds be left in
retained earnings in the shareholders’ equity.

MARKET SITUATION AND FUTURE OUTLOOK

Wulff is the most significant Nordic player in its field. Its aim is to lead the
way, renew the field and be at the forefront of change. Wulff believes that the
role of values and sustainability will come to have an increasingly important
part in sourcing decisions and companies’ business partner selections in the
future. With its new strategy, Wulff will build its competitiveness and make
sure that it can offer customers what they want: solutions for making the
everyday work life smoother and the world better one workplace at a time. The
market traditionally understood as the office environment changes and develops
rapidly. Competition is tough in the traditional market and the new market has a
lot of opportunities. Wulff believes that the future is bright due to the
strong, constantly developing new strategy, its active customer and partner
networks, and its professional, committed personnel. The Group has an ongoing
readiness to carry out new strategic acquisitions. As a listed company, Wulff is
in a good position to be a more active player than its competitors in business
acquisitions.

The developing economic situation enables Wulff’s business to develop
positively. Wulff estimates that the comparable operating profit of 2020 will
increase from 2019. In the industry, it is typical that the result and cash flow
are generated in the last quarter.

WULFF GROUP PLC’S FINANCIAL REPORTING AND ANNUAL GENERAL MEETING 2020

Wulff Group Plc will release the following financial reports in 2020:

Annual Report 2019                                       Monday March 9, 2020
Interim Report January-March 2020                  Monday April 27, 2020
Half-Year Report January-June 2020                Monday July 27, 2020
Interim Report January-September 2020            Monday October 26, 2020

Wulff Group Plc’s Annual General Meeting will be held on Thursday April 2, 2020.
A separate notice to the Annual General Meeting will be published prior to the
meeting.

In Espoo on February 17, 2020

WULFF GROUP PLC
BOARD OF DIRECTORS

Further information:
CEO Elina Pienimäki
tel. +358 40 647 1444
e-mail: elina.pienimaki@wulff.fi

DISTRIBUTION
NASDAQ OMX Helsinki Oy
Key media
www.wulff-group.com

A better world – one workplace at a time. Wulff’s goal is a perfect workday! We
enable better working environments and create workplaces, wherever you are. More
comfortable, healthier, safer, more enjoyable, more active and more diverse? How
do you want to better you workday and working environment? Wulff has the
solution. We offer our customers office supplies, facility management products,
catering solutions, IT supplies, ergonomics, first aid, air purifiers, and
innovative products for worksites. Customers can also acquire international
exhibition services from Wulff. In addition to Finland, Wulff operates in
Sweden, Norway, and Denmark. Check out our products and services at wulff.fi.

Attachments: