DGAP-News: Ultrasonic AG / Key word(s): Half Year Results/Interim Report Ultrasonic AG: ULTRASONIC continues its successful track record in H1 2013 26.08.2013 / 08:00 --------------------------------------------------------------------- ULTRASONIC continues its successful track record in H1 2013 Group sales increased 12.9% year-on-year, totalling EUR 73.9 million (H1 2012: EUR 65.4 million) - Group profit before income tax (EBT) of EUR 20.7 million (H1 2012: EUR 18.4 million) - EBT margin consistently high at 28.0% (H1 2012: 28.1%) - Net profit increased to EUR 15.4 million (H1 2012: EUR 13.7 million) - Cash inflow from operating activities grew by more than 50% to EUR 27.6 million (H1 2012: EUR 17.7 million) - The equity ratio improved from 81.8% to 85.0% - Investment in new production facilities had to be postponed since unfavourable weather conditions delayed necessary construction works - H1 2013 results substantiate outlook for FY 2013 Cologne, August 26, 2013 - Ultrasonic AG (Prime Standard, ISIN DE000A1KREX3, US5), the German holding company of an established Chinese manufacturer and supplier of high-quality branded urban footwear products, today published its interim report for the first six months of fiscal year 2013. Although the Chinese economy has grown more slowly than in the past, Ultrasonic AG continued to grow in the reporting period. The company registered double-digit increases in both revenue and earnings, while the EBT margin remained at an unchanged high level of 28%. 'The results are fully in line with our guidance for the full year and are a sign that our strategy is driv-ing us in the right direction', states Qingyong Wu, the company's CEO and chairman of the Management Board. '. It is particularly striking that within the Urban footwear segment (including accessories), revenues from our ULTRASONIC brand posted a particularly strong improvement of 29.8% year-on-year. Sales revenues amounted to EUR 16.2 million, which was 57.6% of segment revenues and 22.0% of total revenues.' In sum, Group revenue grew 12.9% year-on-year to EUR 73.8 million (H1 2012: EUR 65.4 million) in the reporting period. As the average appreciation of the renminbi versus the euro was just 0.3% in the first six months of 2013, the increase in revenue was almost entirely driven by the actual increase in volumes and by higher prices for products. All segments reported an increase in the number of products sold and revenues in the first six months of 2013. However, the Urban footwear Segment was still the main revenue driver, recording sales of EUR 26.8 million (H1 2012: EUR 23.4 million). Revenues from the sale of the ULTRASONIC brand of footwear (including accessories) increased particularly fast, rising 29.8% year-on-year to EUR 16.2 million (H1 2012: EUR 12.5 million). Revenues from OEM business in this segment rose much more slowly, but nevertheless increased by 3.9% to EUR 11.9 million (H1 2012: EUR 11.5 million. Sandals and slippers became the second largest segment, with revenues up 18.5% year-on-year at EUR 23.7 million (H1 2012: EUR 20.0 million). It therefore overtook the Shoe soles segment, which generated revenues of EUR 22.0 million in the reporting period (H1 2012: EUR 21.4 million). In the accessories unit revenues grew by 149.3% to EUR 1.4 million (H1 2012: EUR 0.6 million). The gross profit increased by 12.9% from EUR 20.2 million to EUR 22.8 million in the first half of 2013. This increase was proportional to the rise in revenues, showing that the company was able to pass on higher raw material and personnel expenses to customers. Accordingly, the gross profit margin was stable at 30.9%. EBITDA grew 12.6% year-on-year to EUR 21.4 million in the reporting period (H1 2012: EUR 19.0 million). Group EBIT grew almost equally strongly, rising 12.8% from EUR 18.3 million to EUR 20.7 million, so the EBIT margin was constant at 28.0%. Group EBT grew 12.7% from EUR 18.4 million in the first six months of 2012 to EUR 20.7 million in the reporting period. The EBT margin remained constant at 28.0% (H1 2012: 28.1%). Tax expense increased from EUR 4.7 million in the first half of 2012 to EUR 5.3 million in the reporting period. Net profit therefore totalled EUR 15.4 million in the first six months of 2013, up 12.2% from H1 2012 (EUR 13.7 million), giving earnings per share (basic and diluted) of EUR 1.33 (H1 2012: EUR 1.20 (restated)) per share. The net cash inflow from operating activities was EUR 27.6 million in the first six months of 2013 (H1 2012: EUR 17.7 million). The 55.8% year-on-year rise was attributable to higher pre-tax earnings and, in particular, a considerable reduction in working capital requirements as a result of the successful reduction of EUR 7.2 million in trade and other receivables. Overall, there was a net rise of EUR 30.6 million in cash and cash equivalents in the reporting period. As a result, cash and cash equivalents increased to EUR 105.1 million as of 30 June 2013 (30 June 2012: EUR 93.4 million). The net cash outflow for investing activities dropped from EUR 1.6 million in the first half of 2012 to EUR 0.8 million in the first six months of 2013 as planned investment in the new production facilities had to be postponed to the second half of 2013. Since construction of the necessary road connections by the local government was delayed by unfavourable weather conditions, reliable supply to the new production facilities was not possible. Still having no non-current borrowings from banks the company's equity ratio improved from 81.8% to 85.0% in the reporting period due to the allocation of retained earnings to the profit reserve and the capital increase. 'Our focus on high-quality, high-margin products is increasingly paying off. As well as increasing production capacity by expanding our facilities, we are therefore stepping up our distribution operations. These measures should have a positive impact on revenue and earnings in the coming years, even if the additional expenses cannot always be offset immediately by the corresponding earnings, so margins could slip slightly, depending on the success of our distribution efforts', states ULTRASONIC-CEO Qingyong Wu. Accordingly, the Management Board still anticipates that at year end, Group sales in euros (excluding currency effects) will be 10-15% higher, while the pre-tax (EBT) margin will be slightly lower at 23-26%. As in the previous year, ULTRASONIC is offering shareholders an opportunity to participate in the company's successful performance through an option dividend model. The concept was approved at the Annual General Meeting on 7 June 2013 and the detailed offer will be published until September 15, 2013. The public tender offer will be completed by the end of September 2013. The full interim report for the first six months of fiscal 2013 is available at Investor Relations/Publications on the company's website at www.ultrasonic-ag.de. Financial Data H1 2013 H1 2012 Change Overview vs. H1 2012 in EUR thousands in % Sales 73,816 65,369 12.9% thereof Urban Footwear 26,760 23,423 14.3% thereof Shoe soles 21,969 21,379 2.8% thereof Sandals & Slippers 23,709 20,015 18.5% thereof Accessories 1,378 552 149.3% Gross profit 22,779 20,173 12.9% EBITDA 21,389 18,995 12.6% EBIT 20,670 18,318 12.8% EBT 20,698 18,370 12.7% EBT margin 28.0% 28.1% Group net income 15,368 13,703 12.2% Return on Sales 20.8% 21.0% Earnings per share in EUR 1.33 1.20 (restated) 30/06/2013 31/12/2012 Cash and bank balances 105,134 74,525 41. 3% Equity Capital 147,969 122,321 21.0% Equity ratio 85.0% 81.8% About Ultrasonic The Cologne-based company Ultrasonic AG is the German holding company of the Chinese ULTRASONIC Group, an established manufacturer and supplier of high-quality branded urban footwear. The Group has more than 1,400 employees and operates in three market segments, each of which currently contributes about a third of revenue. ULTRASONIC produces sandals and slippers for the upper price segment for the local and international market. It is also a long-term supplier of shoe soles to leading manufacturers in the established Chinese sport shoe industry such as Anta, Xtep and Unisuper. Moreover, the company has developed its own very successful high-quality urban footwear collection which is marketed under the ULTRASONIC brand and targets China's young, fashion-conscious urban middle class, which has high purchasing power and expects high quality. The ULTRASONIC product line is currently marketed via more than 110 mono-label shops. The ULTRASONIC Group has reported a compound annual growth rate (CAGR) of 31% per year since 2009. In 2012 it generated sales of around EUR 149 million and a net profit of EUR 30.8 million. For further information about the company visit: www.ultrasonic-ag.de For enquiries: Ultrasonic AG Chi Kwong Clifford Chan Vorstand und CFO E-Mail: [email protected] Tel.: +86 1525 947 9902 (China), +852 966 227 40 (Hong Kong) Disclaimer: This document is no offer for the purchase of securities in the United States of America. Securities may only be sold or offered for sale with the previous registration under the U.S. Securities Act of 1933 in the actual valid version or without previous registration only pursuant to an exemption. The shares of Ultrasonic AG (the 'Shares') have not been registered under the U.S. Securities Act of 1933 in the actual valid version and may not be sold or offered in the United States. This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the 'Order') or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as 'relevant persons'). The Shares, which are referred to, are only available to relevant persons and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. End of Corporate News --------------------------------------------------------------------- 26.08.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Ultrasonic AG c/o BPG mbH, Graf-Adolf-Platz 12 40213 Düsseldorf Germany Phone: +86 1525 947 9902 (China); +852 966 227 40 (Hong Kong) Fax: +49 (0)211 172 9829 E-mail: [email protected] Internet: www.ultrasonic-ag.de ISIN: DE000A1KREX3 WKN: A1KREX Indices: CDAX, Classic All Share, DAXsector All Consumer, DAXsector Consumer, DAXsubsector All Clothing & Footwear, DAXsubsector Clothing & Footwear, Prime All Share Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 227362 26.08.2013