WULFF GROUP PLC’S INTERIM REPORT FOR JANUARY 1 – MARCH 31, 2016

Wulff Group Plc’s net sales declined in the first quarter

This is a summary of Wulff Group Plc’s interim report for January-March 2016. Wulff Group’s interim report for January-March 2016 is attached as a  PDF file to this stock exchange release and is also available on the company’s website at the address http://www.wulff.fi/en/wulff+group+plc/home/.

KEY POINTS JANUARY – MARCH 2016

  • Net sales totalled EUR 15.5 million (EUR 19.2 million). Net sales decreased by 19.2 percentages from the previous year.
  • EBITDA was EUR -0.2 million (EUR 0.4 million) being -1.3 percentages (2.0 %) of net sales.
  • Operating profit (EBIT) amounted to EUR -0.3 million (EUR 0.2 million) being -2.0 percentages (1.0 %) of net sales.
  • Earnings per share (EPS) was EUR -0.06 (EUR -0.01) in January-March.
  • Wulff Group’s outlook for the 2016 operating result remains unchanged.

WULFF GROUP’S CEO TOPI RUUSKA

”We have invested strongly in our competitiveness, and renewed our operations and practices during the first quarter. The initiated projects have required investments that have affected our result. At the same time, the first quarter sales have not fulfilled our expectations and we have fallen short of our net sales target. However, we believe that the whole of 2016 will be positive for us: the investments made now are important for the development of our competitiveness. Domesticity, sustainable development, cost-efficiency, customer encounters and service in the channels our customers prefer are still themes around which we will build our operations this year.”

GROUP’S NET SALES AND RESULT PERFORMANCE

In January-March 2016 net sales totalled EUR 15.5 million (EUR 19.2 million). In January-March EBITDA was EUR -0.2 million (EUR 0.4 million) being -1.3 percentages (2.0 %) of net sales. In January-March the operating profit (EBIT) amounted to EUR -0.3 (EUR 0.2 million) being -2.0 percentages (1.0 percentages) of net sales. Typically in the industry and in the Group, the annual profit is made in the last quarter of the year.

In January-March 2016 employee benefit expenses amounted to EUR 3.5 million (EUR 3.8 million). Other operating expenses amounted to EUR 2.0 million (EUR 2.3 million) in January-March. Employee benefit and other operating expenses were still affected by the implemented successful cost-saving measures. To improve its profitability, the Wulff Group continues to examine its cost structure as part of ongoing reforms.

In January-March the financial income and expenses totalled (net) EUR -0.01 million (EUR -0.01 million) including interest expenses of EUR 0.03 million (EUR 0.07 million) and mainly currency-related other financial items (net) EUR 0.06 million (EUR 0.06 million).

In January-March the result before taxes was EUR -0.4 million (EUR 0.2 million). In January-March the net profit after taxes was EUR -0.4 million (EUR -0.2 million). Earnings per share (EPS) was EUR -0.06 (EUR -0.01) in January-March.

KEY FIGURES

I I I-IV
EUR 1000 2016 2015 2015
Net   sales 15 490 19 174 68 820
Change   in net sales, % -19.2 % -3.0 % -7.3 %
EBITDA -194 381 2 019
EBITDA   margin, % -1.3 % 2.0 % 2.9 %
Operating   profit/loss -312 185 505
Operating   profit/loss margin, % -2.0 % 1.0 % 0.7 %
Profit/Loss   before taxes -365 180 354
Profit/Loss   before taxes margin, % -2.4 % 0.9 % 0.5 %
Net   profit/loss for the period attributable to equity holders of the parent   company -362 -90 -195
Net   profit/loss for the period, % -2.3 % -0.5 % -0.3 %
Earnings   per share, EUR (diluted = non-diluted) -0.06 -0.01 -0.03
Return   on equity (ROE), % -2.8 % -1.5 % -1.6 %
Return   on investment (ROI), % -2.0 % 1.3 % 2.7 %
Equity-to-assets   ratio at the end of period, % 49.0 % 43.8 % 46.4 %
Debt-to-equity   ratio at the end of period 25.1 % 48.5 % 23.8 %
Equity   per share at the end of period, EUR * 1.79 1.94 1.84
Net   cash flow from operating activities -193 -1 323 1 693
Investments   in non-current assets 14 37 161
Investments   in non-current assets, % of net sales 0.0 % 0.2 % 0.2 %
Treasury   shares held by the Group at the end of period 79 000 79 000 79 000
Treasury   shares, % of total share capital and votes 1.2 % 1.2 % 1.2 %
Number   of total issued shares at the end of period 6 607 628 6 607 628 6 607 628
Personnel   on average during the period 222 251 233
Personnel   at the end of period 218 261 226

* 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 office supplies is strongly affected by the general economic development. During the economic downturn, organizations’ personnel lay-offs and cost-saving initiatives affect the purchase behavior of corporate customers. As the ongoing economic uncertainty continues, the cost saving measures will have an effect on the ordering behavior of corporate customers. The decrease and changes in the allocation criteria of the internationalization subsidies granted by the Ministry of Employment and the Economy affect companies’ chances of taking part in international fairs. Half of the Group’s net sales come from other than euro-currency countries. Fluctuation of the currencies affect the Group’s net result, however the effect of the fluctuation is expected to be moderate.

EVENTS AFTER THE REPORTING PERIOD

Wulff Group Plc’s CEO Topi Ruuska and the Group’s Board of Directors have agreed that Ruuska will step down from his position on September 30th, 2016. Wulff Group Plc has initiated the search for a new Managing Director. The Group has not had other material events after the reporting period.

MARKET SITUATION AND FUTURE OUTLOOK

Wulff is the most significant Nordic player in its field. Wulff’s mission is to help its corporate customers to succeed in their own business by providing them with leading-edge products and services in a way best suitable to them. The markets have been consolidating in the past few years and the Nordic markets are expected to consolidate in the future as well. Wulff is prepared to carry out new strategic acquisitions, and as a listed company Wulff has a good opportunity to be a more active player than its competitors.

Wulff does not believe the demand for office supplies to increase quickly. As the uncertainty continues it is important to continue to go through the cost structure and enhance the company’s operations. Wulff’s goal is to continue to improve the profitability of its business operations. Wulff estimates the 2016 result to be positive. In the industry it is typical that the result and cash flow are generated in the last quarter. 

WULFF GROUP PLC’S FINANCIAL REPORTING  

Wulff Group Plc will release the following financial reports in 2016:

Interim Report, January-June 2016 Thursday August 4, 2016
Interim Report, January-September 2016 Thursday November 3, 2016

In Helsinki on May 6, 2016

WULFF GROUP PLC

BOARD OF DIRECTORS

Further information:

Chairman of the Board of Directors Heikki Vienola

tel. +358 9 5259 0050 or mobile: +358 50 65 110

e-mail: heikki.vienola@wulff.fi

DISTRIBUTION

NASDAQ OMX Helsinki Oy

Key media

www.wulff-group.com

About Us

WULFF – A BETTER WORLD ONE WORKPLACE AT A TIME Wulff enables working in environments where companies and entrepreneurs operate. Already, people work a lot away from the office: digitalization enables telework and at the same time, mobile work creates new requirements for working environments. How to ensure that people can work effectively, ergonomically, environmentally friendly – and exactly like they want to? Wulff has the answers. We offer the industry’s most comprehensive product and service range that can help you create an office wherever you want it. What would you like? We offer our customers office supplies, facility management products, catering solutions, IT supplies, ergonomics, first aid, and innovative products for worksites. Customers can also acquire international exhibition services from Wulff. Check out our products and services at wulff.fi.

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