EANS-News: Wolford AG / Revenues and Earnings of the 2013/14 Financial Year (with photo)

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annual result

Press Information

Wolford AG: Revenues and Earnings of the 2013/14 Financial Year in
Line with Expectations

- Currency-adjusted revenues rise by about 1%
- Adjusted operating results and earnings after tax at the prior-year level
- Considerably positive cash flow from operating activities and consistently
solid balance sheet structure
- Implementation of strategic refocusing
- Objective for 2014/15: operating turnaround

Vienna/Bregenz, July 18, 2014. Wolford AG, a publicly listed company
on the Vienna Stock Exchange, announces its annual results for the
2013/14 financial year today. The results are in line with the
guidance most recently published by the company. Currency-adjusted
revenues in the past financial year (May 1, 2013 to April 30, 2014)
could be increased by about 1% to EUR 157.90 million (2012/13: EUR
156.47 million). Taking account of the negative currency effects of
about EUR 2 million, reported Group revenues declined slightly by
0.4% to EUR 155.87 million. Operating results adjusted for
non-recurring effects were at the prior-year level: EBITDA adjusted
amounted to EUR 7.11 million (2012/13: EUR 7.90 million) and EBIT
adjusted totaled EUR -0.97 million (2012/13: EUR -0.91 million). In
spite of non-recurring expenses totaling EUR 3.76 million in
connection with the strategic refocusing, earnings after tax amounted
to EUR -2.81 million and thus also matched the previous year's level
(2012/13: EUR -2.76 million). Due to the consistent optimization of
working capital, Wolford generated a clearly positive cash flow from
operating activities of EUR 6.30 million (2012/13: EUR 6.31 million)
and boasts a consistently solid balance sheet structure with an
equity ratio of 54% (April 30, 2013: 55%). "Wolford is striving to
achieve the operating turnaround in the current financial year
2014/15. We are determinedly implementing all strategic refocusing
measures for this purpose. The product portfolio will be gradually
adapted and the collection statement will be sharpened, marketing
activities are realigned and intensified, and we are continually
optimizing our distribution. We want the organization to be more
agile through internal process changes and further enhance our
innovative strength", says Axel Dreher, Speaker of the Management
Board of Wolford AG.

Significant improvement in Wolford's own retail and online business,
revenue decline in the wholesale segment

Currency-adjusted revenues increased by about 1% in the past
financial year (May 1, 2013 - April 30, 2014) to EUR 157.90 million
(2012/13: EUR 156.47 million). Taking account of the negative
currency effects of about EUR 2 million, mainly related to the
British Pound and US Dollar, reported Group revenues declined
slightly by 0.4% to EUR 155.87 million. The company's own retail
business continued to generate growth in 2013/14. Wolford-owned
points of sale achieved a significant revenue increase of 5%, and the
online business also developed very positively, featuring a 23% rise
in revenues. In contrast, revenues fell by 8% in the wholesale
business, i.e. the business with partner-operated boutiques,
department stores and multi-brand retailers. From a regional
perspective, revenues developed very differently. The USA, Wolford's
largest single market accounting for 17% of total revenues, generated
growth both in the Group and in the local currency. Revenues also
increased in the European markets of Italy, Spain, Belgium, Great
Britain and Austria. In contrast, revenues in the core markets of
Germany and France decreased year-on-year, mainly as a result of the
decline in the wholesale business. Wolford achieved substantial
double-digit revenue growth in Greater China and the Gulf Region. The
quarterly development of revenues shows an ambivalent picture.
Following a decline in the first two quarters of the 2013/14
financial year, third-quarter revenues rose due to a satisfactory
Christmas season but could not fully compensate the revenue drop in
the first two quarters. Revenues also climbed slightly in the fourth
quarter. In particular, the first half-year revenue decreases in the
wholesale business were significantly reduced in the third and fourth
quarter.

EBITDA and EBIT adjusted practically unchanged, non-recurring
expenses of EUR 3.76 million, earnings after tax also at the
prior-year level

The negative earnings of the 2013/14 financial year are largely
attributable to non-recurring effects and expenses of EUR 3.76
million in connection with the strategic refocusing. They included
expenses for the closing of loss-making points of sale, costs for
conceptual and strategy changes, the relocation of parts of the
production as well as severance payments. EBIT including non-
recurring effects totaled EUR -4.72 million and is thus in line with
the most recently issued guidance of approx. EUR -5 million. EBITDA
adjusted for non- recurring expenses totaled EUR 7.11 million
(2012/13: EUR 7.90 million), whereas EBIT adjusted amounted to EUR
-0.97 million (2012/13: EUR -0.91 million), corresponding to the
previous year's level. Savings of about EUR 2 million were achieved
in operating areas due to process optimization measures and in turn
led to lower material costs and personnel expenses. The rise in other
operating expenses is mainly due to increased rental costs for
existing and new points of sale as well as the intensification of
marketing measures. Earnings after tax of EUR -2.81 million could
also be maintained at the same level as in the previous year
(2012/13: EUR -2.76 million). As a consequence of the negative
earnings, the Supervisory Board and Management Board will propose to
the Annual General Meeting on September 18, 2014 to waive the
dividend for the 2013/14 financial year.

Considerably positive cash flow from operating activities and
consistently solid balance sheet structure

Thanks to the consequent optimization of working capital, especially
inventories, a considerably positive cash flow from operating
activities of EUR 6.30 million could be generated (2012/13: EUR 6.31
million) in spite of the negative earnings. The Wolford Group
reported equity of EUR 74.38 million as of the balance sheet date on
April 30, 2014 (April 30, 2013: EUR 78.15 million). The equity ratio
equaled a solid level of 54% (April 30, 2013: 55%), whereas gearing
reached 23% (April 30, 2013: 20%). "With the sale of a non-core land
and a lease option in the first quarter of the new financial year
2014/15, we managed to reduce net debt by EUR 10.7 million, which
amounted to EUR 17.04 million as of the balance sheet date. Combined
with our strong cash flow from operating activities and the
safeguarding of sufficient lines of credit, we have ensured the
financing of the strategic refocusing, including the planned
investments in core technologies and the expansion of distribution",
explains Chief Financial Officer Thomas Melzer.

Implementation of strategic refocusing

The focal points of the strategic refocusing launched in December
2013 encompass the adaptation of the product portfolio, the
sharpening of the collection statement and the focus on the company's
core business, the realignment of communication in all its facets,
the focus on markets with the highest cost/benefit ratio and the
global optimization of distribution, including a relaunch of the
wholesale business and the strengthening of the online business. The
defined measures are accompanied by internal process optimization and
organizational adjustments, with the objective to make the company
more agile and market-oriented and to further enhance its innovative
strength.

Outlook

Wolford's goal for the 2014/15 financial year is to achieve the
operating turnaround. Since a book profit of about EUR 7.4 million
was generated in the first quarter from the sale of non-core land and
a lease option, Wolford is well on the way to achieving the aspired
earnings target.

The Annual Report and the Annual Financial Report 2013/14 can be
downloaded at company.wolford.com under Investor Relations. http://co
mpany.wolford.com/wp-content/uploads/2014/07/Wolford-Annual-financial
- report_13_14.pdf

Contact:
Axel Dreher (Speaker of the Management Board)
Thomas Melzer (Chief Financial Officer)
investor@wolford.com
Wolford AG, Wolfordstraße 1, A-6900 Bregenz
+43 (0) 5574 690-1268 (IR)
+43 (0) 5574 690-1477 (PR)
company.wolford.com

Photos Picture credits: Wolford AG Pure 50 Tights (pantyhose):
http://service.wolford.com/download/nehe/14434_002.zip Jewellery
Tights (Limited Edition):
http://service.wolford.com/download/press/aw1415/jewellery/00020.zip
Sheer Touch (Lingerie):
http://service.wolford.com/download/press/shape_and_control/69662.zip
Use of photos only until October 31, 2018, and exclusively for
editorial purposes.

About Wolford AG

Wolford AG headquartered in Bregenz on Lake Constance (Austria)
operates 16 subsidiaries and markets its products in about 60
countries via roughly 270 monobrand stores (own and
partner-operated), approximately 3,000 trading partners and online.
The company, which has been publicly listed on the Vienna Stock
Exchange since 1995, generated revenues of EUR155.87 million in the
2013/14 financial year (May 1, 2013 - April 30, 2014) and has about
1,560 employees. Since its founding in the year 1950, Wolford has
become a leading global manufacturer's brand in the segment of luxury
tights, exclusive Lingerie and high quality bodywear.

Wolford Group Key Data

Earnings Data | | 2013/14 | 2012/13 | Chg. in % |

|Revenues |in EUR mill. | 155.87 | 156.47 | -0.4 |
|EBITDA adjusted |in EUR mill. | 7.11 | 7.90 | -10 |
|EBIT adjusted |in EUR mill. | -0.97 | -0.91 | -7 |
|Earnings before tax |in EUR mill. | -5.89 | -2.25 | >100 |
|Earnings after tax |in EUR mill. | -2.81 | -2.76 | -2 |
|Capital expenditure |in EUR mill. | 7.87 | 6.03 | +31 |
|Free cash flow |in EUR mill. | -0.97 | 0.48 | >100 |
|Employees (on average) |FTE | 1562 | 1606 | -3 |

Balance Sheet Data

| | |30.04.2014 |30.04.2013 | Chg. in % |
|Equity |in EUR mill. | 74.38 | 78.15 | -5 |
|Net debt |in EUR mill. | 17.04 | 15.96 | +7 |
|Working capital |in EUR mill. | 33.72 | 38.49 | -12 |
|Balance sheet total |in EUR mill. | 138.12 | 142.32 | -3 |
|Equity ratio |in % | 54 | 55 | - |
|Gearing |in % | 23 | 20 | - |

Stock Exchange Data

| | | 2013/14 | 2012/13 | Chg. in % |
|Earnings per share |in EUR | -0.57 | -0.56 | -2 |
|Share price high |in EUR | 22.77 | 28.90 | -21 |
|Share price low |in EUR | 16.81 | 20.53 | -18 |
|Share price at end of | | | | |
period |in EUR | 19.10 | 20.62 | -7 |
|Shares outstanding |in 1,000 | 4900 | 4900 | 0 |
|(weighted) | | | | |
|Market capitalization |in EUR mill. | 95.48 | 103.08 | -7 |
|(ultimo) | | | | |

Pictures with Announcement:
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http://resources.euroadhoc.com/us/7VnaUZmK
http://resources.euroadhoc.com/us/yWs6zJ8S

Further inquiry note:
Wolford AG
Karolina Tasek
Tel.: +43 5574 690 1268
mailto:investor@wolford.com
Web: company.wolford.com

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Pictures with Announcement:
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http://resources.euroadhoc.com/us/7VnaUZmK
http://resources.euroadhoc.com/us/yWs6zJ8S

company: Wolford Aktiengesellschaft
Wolfordstrasse 1
A-6900 Bregenz
phone: +43 (0) 5574 690-1268
FAX: +43 (0) 5574 690-1219
mail: investor@wolford.com
WWW: company.wolford.com
sector: Textiles & Clothing
ISIN: AT0000834007
indexes: ATX Prime, ATX Global Players
stockmarkets: free trade: Frankfurt, regulated dealing: Wien, ADR: New York
language: English