EANS-Adhoc: BENE AG / Earnings first half-year of 2011/12 (with document)

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quarterly report

21.09.2011

- Strong pace of growth in UK, Germany and Middle East
- Solid order intake
- Total sales rose by 14.3 %
- Disproportionate improvement in all earnings figures
- Gross profit margin further increased to 53.7 %
- Active expansion in the growth markets Asia / Pacific

Vienna/Waidhofen an der Ybbs, September 21, 2011. In a very
competitive environment, the Vienna Stock Exchange listed Bene AG has
raised sales by 14.3 % in the first six months of the current
financial year (February 1, until July 31, 2011). In the same period,
the international office furniture manufacturer has
disproportionately improved all earnings figures and further
increased the gross profit margin.

Continued growth trend After the significant sales increase in the
first quarter (plus 18.5 % compared to the previous year´s reference
period), the Bene Group has again successfully realised several major
international projects in the second quarter of 2011/12, and thus has
carried on with the positive dynamics of the prior period. In the
first half-year of the current financial year, total sales rose by
14.3 % to EUR 88.2 million (first half-year 2010/11: EUR 77.1
million). In comparison with the first half-year of the prior year,
the segments UK (plus 32.2 % to EUR 11.7 million), Germany (plus 19.6
% to EUR 24.3 million) as well as ,other markets´ (plus 72.4 % to EUR
22.7 million) showed considerable increases in sales. Over the
quarter, also the Russia segment recorded a positive development.
After sales of EUR 3.2 million in the first quarter of 2011/12, Bene
achieved sales in the amount of EUR 3.7 million in the second
quarter. In fact, after the first six months, accumulated sales
dropped by 11.6 % to EUR 6.9 million; however because of last weeks´
incoming orders, a distinct upswing in the Russian market in the
second half-year may be expected. In the Austria segment, in the
second quarter, Bene consistently pursued the change in strategy
introduced at the beginning of the year 2011/12 to counteract the
ongoing weak margin development on major projects in the home market.
Although the Bene Group has consciously taken a decline in sales of
16.2 % to EUR 22.7 million in the first six months of the financial
year (first half-year 2010/11: EUR 27.1 million), Bene is still
undisputed market leader in the home market. By this measure, in the
medium term, Bene expects an expansion in sales of medium and small
projects as well as a stronger market penetration and thus an
improvement in margins.

Disproportionate improvement in earnings The considerable rise in
sales, the well-targeted control of the product portfolio in the
different sales markets and the focus on high-margin projects
reflected in the positive development of earnings in the first
half-year of 2011/12. Thus, the EBITDA of EUR 1.8 million (first
half-year 2010/11: EUR - 2.1 million) turned positive. The Bene Group
likewise significantly improved the EBIT, which with EUR - 2.3
million after the first six months of the current business year
(first half-year 2010/11: EUR - 6.4 million) was still negative, but
was 63.4 % higher than the reference value of the previous year. The
gross profit margin (revenue +/- inventory changes - expenses for
materials and supplies in relation to revenue) further improved and
increased from 52.8 % in the first quarter to 53.7 % in the second
quarter. Thus, despite the achieved expansion in sales it was clearly
higher than the reference value of the prior year (first half-year
2010/11: 52.8 %). Expenses for materials and supplies increased by
6.4 million to EUR 43.7 million in the first six months (first
half-year 2010/11: EUR 37.3 million) and represented 49.6 % of
revenue (first half-year 2010/11: 48.3 %).

Solid assets and capital structure In comparison with the balance
sheet date January 31, 2011, as of July 31, 2011, the balance sheet
total decreased by EUR 13.7 million to EUR 135.5 million (January 31,
2011: EUR 149.2 million). Accordingly, the equity ratio came to 25.1
% (January 31, 2011: 25.9 %).

Investments Investments in replacements at the site in Waidhofen/Ybbs
as well as the expansion and the modernisation of the show rooms in
London, Moscow and Villingen-Schwenningen primarily determined the
investment volume of the first six months, which with EUR 3.1 million
(first half-year 2011/12: EUR 3.0 million) was slightly higher than
the comparison value of the previous year.

Headcount steady On the reporting date July 31, 2011, the Bene Group
occupied 1,261 employees in total and thus 4 persons or 0.3 % less
than in the past year.

Outlook On the basis of the further increased order intake in the
first two quarters, the Management of the Bene Group assumes a
substantial growth in sales in the second half-year of 2011/12 as
well as a significant improvement in earnings for the overall year
2011/12. Against this background and provided that the positive
development continues over the coming months, the Bene Group changes
its outlook and expects to record a positive EBIT for the financial
year 2011/12. On the basis of existing capacities, the Bene Group has
a great organic growth potential to exploit, provided that the
markets continue to develop positively. Particularly against the
background of the successful market introduction of more new and
profitable product groups in the past financial year.

Note Among others, this report contains statements on potential
future developments, which were made on the basis of currently
available information. Such statements, which reflect the current
assessment of future developments by our Management Board, cannot be
construed as guarantees for future performance and bear unforeseeable
risks and uncertainties. There may be a variety of reasons for actual
results and conditions to diverge from the assumption, on which the
statements were based.

The report for the first half-year 2011/12 is available on the
Internet under
www.bene.com/office-furniture/investor-relations-status-reports.

About Bene Bene is convinced that there is a clear connection between
the design of office and work environments, corporate culture and the
success of a company. Bene´s concepts, products, and services put
this philosophy into reality. Development, design, and production as
well as consulting and sales are covered under one roof. With 85
sites in 36 countries and 1,261 employees worldwide, Bene offers its
customers regional access to all of its services. In the business
year 2010/11, consolidated sales of the Bene Group amounted to EUR
170.8 million. Bene is market leader in Austria and number five in
Europe.

Attachments with Announcement:
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http://resources.euroadhoc.com/us/gsGnjEHh
http://resources.euroadhoc.com/us/izUP5DTf

Further inquiry note:
Investor Relations:
Martina Vomela
Schwarzwiesenstraße 3
A-3340 Waidhofen/Ybbs
IR Hotline: +43-7442-500-3100
ir@bene.com

end of announcement euro adhoc
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Attachments with Announcement:
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http://resources.euroadhoc.com/us/gsGnjEHh
http://resources.euroadhoc.com/us/izUP5DTf

issuer: BENE AG
Schwarzwiesenstrasse 3
A-3340 Waidhofen/Ybbs
phone: +43/7442/500-0
FAX: +43/7442/500-3380
mail: office@bene.com
WWW: www.bene.com
sector: Furnishings & Furniture
ISIN: AT00000BENE6
indexes: ATX Prime
stockmarkets: official market: Wien
language: English