PLD PM Q1 2011


Market environment puts pressure on Powerland Group / profitability improved significantly Frankfurt/Main, 31 August 2015 - Against the background of a challenging market environment, Powerland AG generated Group revenues of EUR 60.6 million in the first half year of 2015. This corresponds to a decrease of 36% compared to the last year´s figure. In the three-month-period from April to June, sales amounted to EUR 30.6 million (-45%). Both the Luxury as well as the Casual segment played a major part in contributing to this development: Revenues in the Luxury segment were down 27% to EUR 47.8 million in the first half year 2015, whereas in the Casual Segment, revenues of EUR 12.8 million were generated (-56%).

At EUR 8.5 million, Group EBIT decreased by 26% as against the first half year of 2014 due to the decrease in sales as well as in gross profit. EBIT margin improved from 12.1% to 14.0%. With respect to the second quarter, the margin even improved by 3.7 percentage points to 17.6%.
Net profit of Powerland Group came in at EUR 5.6 million, representing a 31% decrease compared to H1 2014. Based on 15 million shares, this figure is equivalent to earnings per share of EUR 0.37 (-32%).
Cash and cash equivalents went up from EUR 8.7 million at year-end 2014 to EUR 24.0 million as at 30 June 2015. The increase is mainly due to higher net borrowings while cash generated from operations was negative at EUR -2.8 million.
Operation-wise, the Powerland Group launched its new product series and is constantly enhancing its online and offline brand awareness. Despite the achievements, Powerland faces substantial challenges: As the Chinese economy slows down and the competition in the Luxury segment becomes increasingly intensive, Powerland has to lower down unit selling prices and offer deeper discounts for distributors; at the same time, the price war in the casual segment remains unchanged.
Consequently, Powerland maintains its conservative outlook about 2015. Group revenue is expected to decline substantially due to weakening demand from home and abroad. Although Powerland will close down more stores and implement more cost-effective marketing campaigns so as to reduce operating expenses, group EBIT will fall as well because of a sharp top-line decline. Meanwhile, Powerland will continue to adopt a stringent working capital management to
ensure a healthier cash flow situation.

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In million EUR

Q2 2014

Q2 2015

Change

H1 2014

H1 2015

Change

Revenue

55.2

30.6

-44.6%

94.5

60.6

-35.9%

Luxury

35.4

24.5

-30.7%

65.7

47.8

-27.3%

Casual

19.8

6.0

-69.5%

28.8

12.8

-55.5%

Luxury %

64.2

80.3

69.5

78,9

Casual %

35.8

19.7

30.5

21,1

Gross profit

18.6

13.3

-28.4%

33.0

24.7

-25.1%

Luxus

15.5

11.8

-23.7%

28.2

22.1

-21.6%

Casual

3.1

1.5

-52.2%

4.8

2.6

-45.4%

EBIT

7.7

5.4

-29.8%

11.4

8.5

-25.7%

Luxus

6.6

5.5

-17.1%

10.2

8.6

-16.1%

Casual

1.1

-0.1

-109.4%

1.2

-0.1

-107.1%

EBIT margin

13.9%

17.6%

+3.7pp

12.1%

14.0%

+1.9pp

Luxus

18.7%

22.3%

+3.6pp

15.5%

17.9%

+2.4pp

Casual

5.3%

-1.6%

-6.9pp

4.2%

-0.7%

-4.9pp

Net profit of the period

4.7

3.7

-20.9%

8.1

5.6

-30.8%

EPS

0,31

0.25

-19,4%

0.54

0.37

-31,5%

The full financial report for the first half year of 2015 is now available at http://www.powerland.ag/en/investor-relations/financial-reports

For further information, please contact:

Powerland AG

c/o GFD - Gesellschaft für Finanzkommunikation mbH Fellnerstrasse 7-9

60322 Frankfurt am Main

Germany

Phone: +49 (0) 69 66 554 - 459

Fax: +49 (0) 69 66 554 - 276

E-mail: ir@powerland.ag

Home: http://www.powerland.ag

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