DGAP-News: Ultrasonic AG / Key word(s): Preliminary Results Ultrasonic AG: Preliminary results for 2013 - Revenue growth in line with budget, profitability above expectations 18.02.2014 / 10:48 --------------------------------------------------------------------- Corporate News ULTRASONIC: Preliminary results for 2013 - Revenue growth in line with budget, profitability above expectations - Group revenue grew 9.9% to EUR 163.8 million (2012: EUR 149.0 million) - Higher revenue in all segments - Gross profit margin 31.1%, pre-tax margin 28.6% - Sales of the ULTRASONIC brand up 27.9% - Revenue from online retailing contributed EUR 2.5 million to total earnings in its first year - No plans for an option dividend for 2013 - Growth expected to continue Cologne, February 18, 2014 - 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 provisional figures for fiscal year 2013. 'The results confirm our strategic focus and the sustained profitable growth of the ULTRASONIC Group. Despite higher marketing and selling expenses in connection with online marketing, which started in mid-year, we managed to raise profitability further. Revenue from the ULTRASONIC brand of high-quality urban footwear remained the most dynamic growth driver and the most important strategic element in our business. This year, we intend to extend this segment by starting up the new production facility,' reports Qingyong Wu, the company's founder and CEO. In 2013 ULTRASONIC lifted Group sales revenue 9.9% year-on-year to EUR 163.8 million (2012: EUR 149.0 million). In renminbi, revenue increased by 11.2%, the difference being due to the depreciation of the average exchange rate of the renminbi versus the euro. All segments contributed to this positive overall performance. The main growth driver was Urban Footwear (incl. Accessories), where revenue grew 15.6% to EUR 63.4 million in the reporting period (2012: EUR 54.9 million). Revenue from the ULTRASONIC brand developed particularly positively: while OEM sales were only slightly higher than in the previous year at EUR 25.8 million (2012: EUR 25.5 million), revenue from the ULTRASONIC brand surged 27.9% to EUR 37.6 million (2012: EUR 29.4 million). Online retailing of ULTRASONIC products, which only started in early August, continued to develop well and contributed revenue of EUR 2.5 million to the Group's overall performance. Revenue rose 9.2% to EUR 50.9 million in the Sandals and Slippers segment (2012: EUR 46.6 million), and 4.0% to EUR 49.5 million in the Shoe Soles segment (2012: EUR 47.5 million). The gross profit increased 10.5% year-on-year from EUR 46.1 million to EUR 50.9 million. It therefore rose slightly faster than revenue. This pushed the gross profit margin up to 31.1% in 2013 (2012: 30.9%). Earnings before taxes (EBT) were EUR 46.8 million in 2013, up 11.9% from EUR 41.8 million in 2012. The pre-tax margin was 28.6% (2012: 28.1%), which was above expectations. The Management Board expects growth to continue in 2014, but assumes that margins will be slightly lower. A more detailed projection will be given in the annual report, which will be published on April 29, 2014 and will be available for download from the company's website www.ultrasonic-ag.de under Investor Relations/Publications. This year's Annual General Meeting will probably be held on July 22, 2014 in Frankfurt am Main, Germany. In response to the request made to the Management Board by a majority of investors, this year the Management Board will not be submitting a proposal to the Supervisory Board and Annual General Meeting for the payment of an option dividend. 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 main 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 2013 it generated sales of around EUR 164 million and a net profit before taxes of EUR 46.8 million. For further information about the company visit: www.ultrasonic-ag.de For enquiries: Ultrasonic AG Chi Kwong Clifford Chan Member of the Management Board and 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 --------------------------------------------------------------------- 18.02.2014 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 --------------------------------------------------------------------- 253032 18.02.2014