DGAP-News: Aves One AG

Corporate News

Operating result more than tripled in the first half of 2017

- EBITDA increased to approximately EUR 12.7 million (first half of 2016: approximately EUR 3.7 million)

- Sales revenues doubled to approximately EUR 24.5 million

- Rents in the container sector are growing with increasing utilisation of capacity

- Further increase in the stock of assets planned

- Decrease in financing costs is continuing successfully

Hamburg, 2 October 2017 - Aves One AG (Aves), one of the leading holders of logistics equipment in Germany, is continuing to grow. In the first half of 2017 Aves managed to double their sales revenues compared with the same period in 2016 to approximately EUR 24.5 million. The increase in sales revenues is attributable not only to the continuing recovery of operating business in the container sector but also to the acquisition of ERR Rail Rent Vermietungs GmbH (ERR) in the fourth quarter of 2016.

The substantially higher Group sales revenues brought about a disproportional improvement in the operating result in the first half of 2017. EBITDA rose by more than 248% compared with EBITDA adjusted to eliminate currency effects attributable to financing issues (adjusted profit and loss account in the half-year financial report) in the first half of 2016 to EUR 12.7 million. The effects of the balance sheet date valuation of euro liabilities in container companies with the US Dollar as a functional currency, most of which did not, however, have an impact on liquidity on the balance sheet date, resulted in a Group loss of EUR 15.6 million (first half of 2016: EUR -8.7 million). Of this loss, approximately EUR 12.5 million originated from currency translation expenses already stated (first half of 2016: EUR -2.8 million).

The asset volume under management increased, as compared with 30 June 2016, by 97.3% to approximately EUR 441 million, mainly due to the acquisition of ERR. As already announced, the management's objective is still to expand the Group's asset volume to EUR 1 billion by 2020.

The acquisition of ERR is the growth driver in the rail segment.

Following the acquisition of ERR in the fourth quarter of 2016, sales and results improved substantially in this segment. With this new addition Aves has a portfolio amounting to a total of approximately 4,260 freight wagons in the rail sphere as of 30 June 2017. Since Aves only had a stock of 331 freight wagons when it took over ERR, there is only a very limited degree of comparability with the figures for 30 June 2016 on account of the base effect. With the acquisition of ERR the asset volume in this segment has increased from EUR 28.2 million to approximately EUR 227.6 million as of 30 June 2017. For this reason, sales revenues improved from EUR 1.5 million to EUR 12.8 million at the same time. Rents in the freight wagon market have remained at a stable level for some years. However, there has been a substantial increase in particular in the demand in the intermodal sphere in the last 12 months. The Aves wagon fleet also profits from this trend.

The framework conditions have improved around the world in the container segment.

At the end of June 2017 Aves had a container fleet consisting of approximately 116,400 units or 156,500 CEUs. Overall, the global market environment in the container sector has improved continuously in recent months. The positive mood in the market is also reflected at Aves by increased new construction prices and higher rents as well as greater utilisation of capacities. Consequently, the utilisation of the container portfolio in the first six months of 2017 increased by 11.1 percent relative to the first half of 2016, reaching an overall level of approximately 90%. As a result EBITDA before holding charges improved from EUR 3.6 million in the first half of 2016 to EUR 4.3 million in the first half of 2017, i.e. approximately 17%.

The strength of the euro relative to the US dollar continues to pose a challenge in the containment segment. Net exchange losses totalling EUR 12.2 million had a detrimental effect on the first-half result (first half of 2016: EUR -2.8 million). These effects resulted primarily from the balance sheet date valuation of EUR-denominated loan liabilities in companies with the US dollar as the functional currency, although most of them did not impact liquidity on the balance sheet date.

In the other business divisions summarised in "Segment other" the special equipment unit in particular is growing on account of the increase in online trading.

The special equipment division in particular makes a positive contribution to the consolidated results. With a number of smaller transactions Aves succeeded here in the first half of 2017 in increasing the stock of swap bodies and tank containers to an asset volume of EUR 21.2 million (half-year 2016: EUR 1.1 million). In comparison with sea-containers this is actually a niche market which is profiting from the heavy demand from parcel logistics providers on account of the booming online market.

The management board summarises developments in the first half of 2017 as follows:
"We are very satisfied with the progress we have achieved in the first half of 2017. We intend to increase EBITDA further in the coming quarters and improve profitability. When the figures are adjusted for currency losses that do not affect liquidity, we can show substantially improved operating results in all important segments. This is substantiated especially by the development of cash flow and EBITDA", says Jürgen Bauer, member of the board of Aves One AG. As compared to the first half of 2016 the cash flow from operating activities in the Group improved by 183% to EUR 13.6 million.

Alongside further development and optimisation of operating business the management board regards the continuous further development of the Group's financing structure as another lever to improve business performance. Jürgen Bauer says "The financial result is a major driver of Aves' consolidated income which is why a further improved financing structure will have a positive effect on performance. Therefore, in the coming quarters we intend to further optimise the financing structure as well as developing the portfolio."

In connection with the capital increase decided in June 2017 associated with the collection of receivables from Aves Group companies, an expense item arises in the financial result amounting to approximately EUR 1.8 million due to accounting regulations. This affects profit but not liquidity. For further explanations concerning these figures we refer the reader to the half-year report for 2017. This can be downloaded at www.avesone.com under the heading "Investors".

Aves One AG:
The focus of activity in the Aves One Group is on the container, rail, special and resale equipment business units. The Aves One Group invests in sustainable assets with stable cash flows in liquid markets. Very good access to the equipment market as well as management's and partners' extensive knowledge of financing are the foundations for continuing expansion and extension of business activities. The aim is to achieve a further extension of operating activities so that a total asset volume of at least EUR 1 billion should be managed by the Aves Group in the year 2020.

Further information: www.avesone.com

Contact
Aves One AG
Jürgen Bauer, Management Board
T +49 (40) 696 528 350
F +49 (40) 696 528 359
E ir@avesone.com