DGAP-News: Deufol SE

PRESS RELEASE

Hofheim am Taunus, August 18, 2017

Half-year result - the strategic concentration on industrial packaging and supplementary services is progressing successfully

The reorganization of the Group and the concentration of the business towards industrial packaging is progressing successfully. This step will further strengthen our profile in the customer perception as being the acting specialist in industrial packaging with an own global network. All acquisitions made recently serve consequently the objective to further expand our network.

The separation of the Activatis GmbH and major customers in the consumer packaging segment are further logical consequences of Deufol to concentrate on our core competence - industrial packaging.

Investments in innovative, necessary IT, as well as the continuous strategic expansion of industrial packaging services, are the main focus of the Deufol-Group.

Following this development, these are the results for the first half 2017:

- Sales EUR 145.1 million (prior year EUR 161.9 million)
- EBITDA EUR 8.3 million (prior year EUR 8.7 million)
- EBIT(A) EUR 4.3 million (prior year EUR 5.3 million)
- Net result EUR 3.0 million (prior year EUR 3.3 million)

Sales development
In the first half of 2017, sales were EUR 145.1 million, 10.4% or EUR 16.8 million below prior year. The change in sales are based upon the change within the group of consolidated companies, as well as the sale of a large operation in Belgium, in line to return the strategic focus on industrial packaging. The additions within the group of consolidated companies of industrial packaging increased sales of EUR 18.0 million. The sale of the Activatis GmbH and consumer packaging in Belgium decreased sales by EUR 21.6 million. Excluding these non-recurring items, sales are down to EUR 13.2 million. Through adjusting the appreciation of the US-Dollar against the Euro of about 3.0%, sales increased in US-Dollar of EUR 1.0 million, sales declined by EUR 14.2 million.

Operative result below prior year
The operative result (EBITA) amounted to EUR 4.3 million and therewith ca. 20.0% below prior year (EUR 5.3 million). This result, on the one hand, was due to the acquisitions and its adjacent costs, and on the other hand, due to the integration of the new operations, which just started.

The period result was EUR 3.0 million (prior year EUR 3.3 million). After deduction of the dividends of noncontrolling interests, the net profit decreased to EUR 3.0 million for the Shareholders of Deufol SE, vs. EUR 3.2 million in the prior year. The earnings per share was at EUR 0.070 for the first three months (prior year EUR 0.073).

Improved operative cashflow - financial debt decreased
The operative cash flow of the Deufol-Group amounted in the reporting period to EUR 9.0 million and was tangible above the prior year level (EUR 2.7 million).
The financial liabilities increased within the first six months 2017 of EUR 0.3 million to EUR 66.1 million. The net financial liabilities, defined as a sum of liabilities less financial receivables and currency, were stronger (EUR +2.9 million) due to increased cash, from EUR 46.9 million on December 31, 2016 to EUR 45.2 million at the end of the reporting period.

Overview of the first 6 months:

Outlook - planning adjusted
Deufol SE will correct their published planning for the fiscal year 2017, as mentioned in the annual financial report 2016, slightly down. Reason for this correction is the restructuring of the business in the USA - away from consumer packaging towards industrial packaging. This change will impact sales in this segment within the second half-year accordingly. We now expect sales within the range of EUR 280 million and EUR 300 million and an operative result (EBITA) between EUR 14.0 million and EUR 16.0 million.

The mid-term report is also available under https://www.deufol.com.

About the Deufol Group:
The Deufol Group is a global premium service provider for packaging and related services. The service portfolio includes export & industrial packaging, logistic services, automated packaging, innovative IT-solutions along the supply chain, promotional & display packaging as well as data packaging. The company Deufol, headquartered in Hofheim am Taunus, near Frankfurt am Main, is present at 93 operations in 11 countries and employs approximately 2.700 employees. In 2016 the group wide sales aggregated to EUR 341 million.
Contact:
Deufol SE
Claudia Ludwig
Johannes-Gutenberg-Strasse 3-5
65719 Hofheim (Wallau)
Tel.: +49 (6122) 50 1228
E-mail: Claudia.Ludwig@deufol.com