Wulff-Yhtiöt Oyj — Interim / Quarterly Report 2018

Aug 2, 2018

WULFF GROUP PLC'S HALF-YEAR FINANCIAL REPORT FOR JANUARY 1 – JUNE 30, 2018

WULFF GROUP PLC'S HALF-YEAR FINANCIAL REPORT FOR JANUARY 1 – JUNE 30, 2018

HALF-YEAR FINANCIAL REPORT     August 2, 2018 at 9.00 A.M.

Profitability of business operations increased

This is a summary of Wulff Group Plc’s half-year financial report for January
-June 2018. Wulff Group’s half-year financial report as a whole is attached as a
PDF file to this stock exchange release and it is also available on the
company’s website www.wulff-group.com.

1.4. – 30.6.2018 BRIEFLY

·  Net sales totalled EUR 13.8 million (13.5), growth of 1.7%
·  EBITDA and comparable EBITDA were EUR 0.4 million (-0.2)
·  Operating profit and comparable operating profit (EBIT) were EUR 0.3
million (-0.3)
·  Earnings per share (EPS) and comparable earnings per share (EPS) were EUR
0.04 (-0.06)
·  Equity-to-assets ratio was 46.3% (44,5)
·  The outlook remains the same; Wulff estimates the comparable operating
profit to grow in 2018

1.1. – 30.6.2018 BRIEFLY

·  Net sales totalled EUR 28.0 million (28.9), decreased by -3.0%
·  EBITDA and comparable EBITDA were EUR 0.8 million (0.1)
·  Operating profit and comparable operating profit (EBIT) were EUR 0.6
million (-0.1)
·  Earnings per share (EPS) and comparable earnings per share were EUR 0.06 (
-0.5)

WULFF GROUP PLC’S CEO HEIKKI VIENOLA

“Wulff´s year has continued positively. We, as well as our clients and partners
believe in our new strategy “We make the world better one workplace at a time”.
We already have a lot of products and services in our range that are consistent
with our new strategy. Today, companies are investing consistently and
deliberately in workplace ergonomics, and work safety and wellbeing. For
example, the domestic Termi ergonomic products constantly receive positive
feedback from our customers. A lasting, well- made quality product is an eco
-friendly act, and good ergonomics help to maintain occupational work capacity
and reduce sick leaves. Improving profitability is important for us because
offering a perfect workday for our customers requires investments in new
developments and innovation. We are improving our operations and our traditional
product range to be more effective. For example, we will extend the range of our
exclusive, excellent price-quality ratio Q-Connect products according to our
customers’ wishes. Companies can acquire all basic workplace products
conveniently from us in future too: larger companies favour an outsourced
solution with a specific, tailored range of products, and our handy webshop
Wulffinkulma.fi serves companies of all sizes with a fast one-day delivery
time.”

GROUP’S NET SALES AND RESULT PERFORMANCE

In January-June 2018 net sales totalled EUR 28.0 million (28.9), and in April
-June EUR 13.8 million (13.5). Net sales decreased in the first half year period
by 3.0% (-4.1) and increased by 1.7% (-7.3) in the second quarter. In January
-June the net sales declined due to the seasonality of the international fair
business. New customer acquisition did not fully cover the decline of net sales.
The first quarter of the year has many fair events that are only arranged every
other year, so there were less fair events in the first quarter of 2018 than
compared to the previous year. The increase in net sales in the second quarter
was mainly a result of fair events.

Due to IFRS 15 standard change, fair projects of partial revenue recognition
from the last quarter 2017 are presented in the net sales for the first quarter
of 2018 on the date of the fairs amounting to EUR 0.1 million, and EUR -0.1 in
purchase transactions.

In January-June 2018 the gross margin amounted to EUR 9.8 million (9.7) being
35.0% (33.7) of the net sales, and EUR 4.9 million (4.5) in the second quarter
being 35.3% (33.4) of the net sales. The gross margin percent grew due to
increases in additional sales in fair projects and concentrating on improving
the gross margin in all operations, companies and operating countries of the
Group.

In January-June 2018 employee benefit expenses amounted to EUR 6.0 million (6.4)
and 21.3% (22.0) of net sales, being at the same level as in the reference
period, and respectively, in the second quarter EUR 3.0 million (3.1), 21.5%
(23.2) of net sales. Other operating expenses amounted to EUR 3.1 million (3.4)
in January-June 2018 being 11.1% (11.7) of net sales, and EUR 1.5 million (1.6)
in the second quarter being 10.9% (11.8) of net sales. Due to the change in IFRS
9 Financial Instruments standard, a credit loss reserve of EUR -0.0 million was
made in the first quarter of the financial year 2018. The implemented cost
-saving measures had a positive effect on the operating profit.

In January-June 2018 EBITDA and comparable EBITDA amounted to EUR 0.8 million
(0.1) being 2.9% (0.3) of net sales, and EUR 0.4 million (-0.2) in the second
quarter, being 3.2% (-1.2) of net sales. The operating profit (EBIT) and the
comparable EBIT amounted to EUR 0.6 million (-0.1) being 2.1% (-0.4) of net
sales and EUR 0.3 million (-0.3) in the second quarter, being 2.4% (-1,9) of net
sales. The first half-year periods of 2018 and 2017 did not include items
affecting comparability.

In January-June 2018 the financial income and expenses totalled (net) EUR -0.2
million (-0.2) including interest expenses of EUR -0.0 million (-0.0) and mainly
currency-related other financial items and bank expenses (net) EUR -0.1 million
(-0.1). In the second quarter, the financial income and expenses totalled (net)
EUR -0.0 million (-0.1).

In January-June 2018 the result before taxes was EUR 0.4 million (-0.3), and the
net profit over the reporting period was EUR 0.4 million (-0.4) million. In the
second quarter the result before taxes was EUR 0,3 million (-0,4) and the net
profit was EUR 0.3 million (-0,4). Earnings per share (EPS) and comparable EPS
were EUR 0.06 (-0.05) in January-June 2018, and EUR 0.04 (-0.06) in the second
quarter.

KEY FIGURES

+-----------------------------------------+-----+-----+-----+-----+---------+
| |II  |II  |I-II |I-II |I-IV |
+-----------------------------------------+-----+-----+-----+-----+---------+
|EUR 1000 |2018 |2017 |2018 |2017 |2017 |
+-----------------------------------------+-----+-----+-----+-----+---------+
|Net sales |13 |13 |28 |28 |56 931 |
| |754 |530 |010 |862 | |
+-----------------------------------------+-----+-----+-----+-----+---------+
|Change in net sales, % |1.7% |-7.3%|-3.0%|-4.1%|-4.0% |
+-----------------------------------------+-----+-----+-----+-----+---------+
|EBITDA* |436 |-167 |804 |72 |461 |
+-----------------------------------------+-----+-----+-----+-----+---------+
|EBITDA margin, % |3.2% |-1.2%|2.9% |0.3% |0.8% |
+-----------------------------------------+-----+-----+-----+-----+---------+
|Operating profit/loss |336 |-263 |600 |-122 |74 |
+-----------------------------------------+-----+-----+-----+-----+---------+
|Operating profit/loss margin, % |2.4% |-1.9%|2.1% |-0.4%|0.1% |
+-----------------------------------------+-----+-----+-----+-----+---------+
|Profit/Loss before taxes |297 |-368 |444 |-283 |-247 |
+-----------------------------------------+-----+-----+-----+-----+---------+
|Profit/Loss before taxes margin, % |2.2% |-2.7%|1.6% |-1.0%|-0.4% |
+-----------------------------------------+-----+-----+-----+-----+---------+
|Net profit/loss for the period |248 |-395 |379 |-345 |-193 |
|attributable to equity holders of the | | | | | |
|parent company | | | | | |
+-----------------------------------------+-----+-----+-----+-----+---------+
|Net profit/loss for the period, % |1.8% |-2.9%|1.4% |-1.2%|-0.3% |
+-----------------------------------------+-----+-----+-----+-----+---------+
|Earnings per share, EUR (diluted = non |0.04 |-0.06|0.06 |-0.05|-0.03 |
|-diluted) | | | | | |
+-----------------------------------------+-----+-----+-----+-----+---------+
|Return on equity (ROE), % |2.4% |-3.7%|3.7% |-3.2%|-2.0% |
+-----------------------------------------+-----+-----+-----+-----+---------+
|Return on investment (ROI), % |2.2% |2,2% |3.4% |-1.6%|-1.1% |
+-----------------------------------------+-----+-----+-----+-----+---------+
|Equity-to-assets ratio at the end of |46.3%|44.5%|46.3%|44.5%|47.0% |
|period, % | | | | | |
+-----------------------------------------+-----+-----+-----+-----+---------+
|Debt-to-equity ratio at the end of period|31.6%|37.2%|31.6%|37.2%|19.8% |
+-----------------------------------------+-----+-----+-----+-----+---------+
|Equity per share at the end of period, |1,62 |1,62 |1,62 |1,62 |1,64 |
|EUR ** | | | | | |
+-----------------------------------------+-----+-----+-----+-----+---------+
|Investments in non-current assets |58 |179 |251 |317 |429 |
+-----------------------------------------+-----+-----+-----+-----+---------+
|Investments in non-current assets, % of |0.4% |1.3% |0.9% |1.1% |0.8% |
|net sales | | | | | |
+-----------------------------------------+-----+-----+-----+-----+---------+
|Treasury shares held by the Group at the |79 |79 |79 |79 |79 000 |
|end of period |000 |000% |000 |000 | |
+-----------------------------------------+-----+-----+-----+-----+---------+
|Treasury shares, % of total share capital|1.2% |1.2% |1.2% |1.2% |1.2% |
|and votes | | | | | |
+-----------------------------------------+-----+-----+-----+-----+---------+
|Number of total issued shares at the end |6 607|6 607|6 607|6 607|6 607 628|
|of period |628 |628 |628 |628 | |
+-----------------------------------------+-----+-----+-----+-----+---------+
|Personnel on average during the period |190 |197 |192 |201 |198 |
+-----------------------------------------+-----+-----+-----+-----+---------+
|Personnel at the end of period |187 |199 |187 |199 |195 |
+-----------------------------------------+-----+-----+-----+-----+---------+

* The presentation of the Consolidated Statement of Income has been changed in
the first quarter of 2018 in such a way that all bank expenses have been
classified as financial expenses. The comparison period 2017 has been adjusted
according to the new reporting principle: bank expenses have been reclassified
from other operating expenses to financial expenses impacting the EBITDA and
operating profit by EUR 0.0 million in Q2, EUR 0.1 million for the half-year
period and EUR 0.1 million for 2017. In 2017, the impact on the EBITDA margin-%
was +0.2% in Q2 and on the operating profit/loss margin-% +0.3%. The impact on
the EBITDA margin-% and operating profit/loss margin-% was +0.2% in the half
-year period and in the whole financial year.

** 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 the market’s tight competition. 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

In July 2018, Wulff Group Plc acquired a two percent share of the share capital
of S Supplies Holding AB and owns 89% of the share capital of the company after
the acquisition. The purchase price was EUR 44 thousand. The book value of S
Supplies Holding AB’s net assets was EUR 2.1 million without goodwill at the end
of June 2018. The Group has not had any other significant subsequent events.

MARKET SITUATION AND FUTURE OUTLOOK

Wulff is the most significant Nordic player in its field. Wulff creates
workplaces and its mission is to help corporate customers succeed in their own
business by providing them with leading-edge products and services in a way best
suitable to them. Wulff is prepared to carry out new strategic acquisitions and
as a listed company, Wulff is in a good position to be a more active player than
its competitors.

The developing economic situation will enable Wulff’s business to develop
positively. Wulff aims to further improve the profitability of its operations
and it estimates the comparable operating profit to increase. In the industry,
it is typical that the result and cash flow are generated specially in the last
quarter.

WULFF GROUP PLC’S FINANCIAL REPORTING

Wulff Group Plc will release the following financial report in 2018:

Interim Report, January-September 2018     Thursday November 1, 2018

In Vantaa on August 2, 2018

WULFF GROUP PLC
BOARD OF DIRECTORS

Further information:
CEO Heikki Vienola
tel. +358 300 870 414 or +358 50 65 110
e-mail: heikki.vienola@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.

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