DGAP-News: Asian Bamboo AG / Key word(s): Quarter Results Asian Bamboo announces Q3 2013 results 08.11.2013 / 06:08 --------------------------------------------------------------------- Hamburg, 8 November 2013 - Asian Bamboo AG ('Asian Bamboo', 'the Company', ISIN: DE000A0M6M79, ticker symbol: '5AB', ADR ticker symbol 'ASIBY'), an integrated company in the bamboo industry, announces the following Q3 and Q1-Q3 results. In the third quarter the Company's performance remained unsatisfactory, mainly as a result of weak demand for bamboo trees, which led to a decrease in revenue of 36%. Due to good cost control, the Company recorded a small gross profit of EUR 0.6 million and a small net loss if EUR 1.3 million. Stripping out amortisation charges, which are non-cash items, the business remained profitable. In summary, the Company achieved the following financial results in Q1-Q3 (percentage numbers are year-on-year comparisons): * Revenue decreased 59% to EUR 25.4 million (Q1-Q3 2012: EUR 61.4 million) * Gross profit including FVBA-changes* decreased 75% to EUR 2.3 million (Q1-Q3 2012: EUR 9 million), equivalent to a gross profit margin including FVBA-changes of 9% (Q1-Q3 2012: 15%) * Net loss of EUR 3.6 million (Q1-Q3 2012: net profit EUR 1.9 million) * Operating cash flow before movements in working capital of EUR 7.4 million (Q1-Q3 2012: EUR 14.9 million) * Net cash generated from operating activities of negative EUR 4.1 million (Q1-Q3 2012: positive EUR 19.3 million) * Cash and cash equivalents of EUR 31 million (31 December 2012: EUR 38.6 million) *FVBA is an abbreviation for gains/(losses) arising from changes in the fair value less estimated costs to sell of biological assets At the end of Q3, the Company's balance sheet remained strong (comparable numbers are 2012 year-end numbers): * Biological assets were EUR 82.8 million (2012: EUR 83.9 million) * Lease prepayments were EUR 188.6 million (2012: EUR 193.4 million) * Cash and cash equivalents were EUR 31 million (2012: EUR 38.6 million) * Total assets were EUR 347.3 million (2012: EUR 348.4 million) * Total bank borrowings were EUR 43.9 million (2012: EUR 46.5 million) * Total equity was EUR 288.2 million (2012: EUR 288 million) * Total liabilities and equity were EUR 347.3 million (2012: EUR 348.4 million) Strategic review In Q3 the Management Board made good progress towards completing the strategic review. It believes that the short- to medium-term outlook for the bamboo plantation business remains challenging as a result of unfavourable developments in exchange rates, labour supply and labour costs. To battle the current challenges the Company implemented a new decentralised organisation structure, which received an overwhelmingly positive response from the employees. Together with the personnel responsible for plantation management, the Management Board is working on identifying ways of streamlining the Company's operations and increasing plantation yields, which the Management Board expects will increase efficiencies over time. As a result of this process the Management Board decided to divest the Company's 40% stake in Xinlifeng, a sale which is nearly complete. The Management Board expects to receive a total consideration which is not materially different from the book value. Xinlifeng is a leading company in the bamboo template industry, but the Management Board was disappointed with the company's performance and the lack of synergies with the plantation business. FY 2013 guidance The Management Board expects the overall operating situation to remain challenging for the rest of the year and that the bamboo fibre business will not generate any significant sales this year, which will also affect sales of bamboo trees. Therefore, the Management Board forecasts revenues of at least EUR 35 million and positive operating cash flows for FY 2013. For enquiries, please contact: Asian Bamboo AG: Peter Sjovall +852-9385 3868 Chief Financial Officer [email protected] Anja Holst +49-(0)40 37644 798 Investor Relations Director [email protected] End of Corporate News --------------------------------------------------------------------- 08.11.2013 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: Asian Bamboo AG Stadthausbrücke 1-3 20355 Hamburg Germany Phone: +49 40 37644 798 Fax: +49 40 37644 500 E-mail: [email protected] Internet: www.asian-bamboo.de ISIN: DE000A0M6M79, DE000A0M6M79 WKN: A0M6M7, A0M6M7 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 238523 08.11.2013