DGAP-News: VanCamel AG / Key word(s): Preliminary Results VanCamel AG: Provisional figures confirm profitable growth 24.02.2014 / 13:59 --------------------------------------------------------------------- VanCamel AG: Provisional figures confirm profitable growth - Group revenue rose 7.8% to EUR 175.4 million in 2013* - Revenue increase came from both the Footwear product line and the Apparel product line - Gross profit margin 33.6%; pre-tax margin 27.9% - Operating cash flow EUR 34.6 million - Cash and cash equivalents increased to EUR 66.2 million at year-end 2013 - Equity ratio improved to around 80% - Management expects revenue and earnings to further rise in 2014 Hamburg, 24 February 2014 - VanCamel AG, the German holding company of an established Chinese fashion label, today publishes provisional figures for FY 2013. Revenue rose by 7.8%* to EUR 175.4 million and EBIT was EUR 48.9 million, confirming management expectations. In renminbi, revenue growth was even 8.3%* due to the depreciation of the average exchange rate versus the euro. Xiaming Ke, CEO of VanCamel AG: "Last year we managed to grow sales and stabilise margins at a high level. Higher demand from Chinese consumers for high-quality, individual apparel labels proves the potential of our growth strategy. Our successful stock market listing, communicated in all VanCamel stores nationwide, has helped to raise awareness of the VanCamel brand among China's affluent young middle class. Within this lucrative target group, we are therefore benefiting increasingly from the growing market for lifestyle and fashion products." Profitable growth VanCamel lifted the revenue to EUR 175.4 million in FY 2013 (2012: EUR 168.3 million). Both the Footwear product line and the Apparel product line contributed to the positive performance. While revenues from Footwear increased 5.0% to EUR 52.6 million (2012: EUR 50.1 million), revenues from the Apparel segment rose 3.9% to EUR 122.8 million (2012: EUR 118.2 million). The gross profit was EUR 58.9 million in FY 2013 (2012: EUR 59.5 million), corresponding to a gross profit margin of 33.6% (2012: 35.4%). Earnings before taxes (EBT) totalled EUR 48.9 million (2012: EUR 51.2 million). The pre-tax margin was therefore 27.9% (2012: 30.4%). High operating cash flow The net cash inflow from operating activities was EUR 34.6 million in 2013 (2012: EUR 41.4 million). The cash flow from financing activities comprised an outflow of EUR 13.9 million (2012: outflow of EUR 12.5 million). Cash outflows of EUR 16.6 million (2012: EUR 11.7 million) for a dividend payment were partly offset by a net cash inflow of EUR 2.6 million from a loan from related parties. The net rise in cash and cash equivalents in the reporting period was EUR 20.7 million (2012: EUR 28.4 million). Cash and cash equivalents therefore increased to EUR 66.2 million as of December 31, 2013 (December 31, 2012: EUR 46.6 million). VanCamel did not have any current or non-current liabilities to banks in 2013. The book value of equity was EUR 84.1 million on 31 December 2013 (31 December 2012: EUR 66.2 million). The equity ratio therefore improved to 80% in the reporting period (31 December 2012: 72.2%). Outlook The Management Board expects to report a further rise in revenue and earnings in FY 2014. A more detailed forecast will be given when the full annual report and audited financial statements are published on 30 April 2014 and will be available for download from the company's website at www.vancamel.de/en, Investor Relations/Publications. * 2012 revenues adjusted to the new rebate formula to enhance comparability Notes on comparisons with 2012 figures The following effect should be borne in mind when comparing the revenue and earnings figures for the present year and the prior year: Before the transition to IFRS, VanCamel made shop fittings available to its distributors free of charge, capitalized the associated costs and depreciated the shop fittings over three years. That is not permitted under IFRS and all shop fittings have been written down retrospectively in the year of investment. To continue to support distributors in the ongoing modernisation of their stores, Van Camel has introduced sales rebates. The rebate will be 8% from 2014 with preceding stepwise increases. The rebate was 1.2% in 2012 and increased to 4.5% in 2013. Sales revenue decreases by the same amount as the increase, but the impact on operating income is lower because depreciation is no longer recognised for shop fittings. About VanCamel VanCamel AG is the German holding company of an established Chinese fashion label, which employs more than 200 workers in the design, marketing and distribution of own branded apparel, footwear and accessories. VanCamel products address the young, well-funded urban middle-class, particularly targeting male consumers aged between 25 and 40 primarily residing in tier 2 and tier 3 cities, aspiring after upper middle class fashion styles. The prizewinning design of VanCamel's apparel is made in-house whereas the design of the footwear is outsourced based on the conceptual ideas of VanCamel. The production of both apparel and footwear is completely outsourced to local contract manufacturers. VanCamel is an established national brand with a PRC-wide reach. More than 40 regional distributors supply VanCamel's products to more than 2,200 authorized retail outlets in 26 provinces throughout China. Since 2010, VanCamel has grown at an average annual growth rate of 21 percent. For further information about the company visit: www.vancamel.de/en For enquiries: VanCamel AG Lester Eng Ann Soh Member of the Management Board and CFO E-Mail: [email protected] Tel.: +86 155 5911 7996 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 VanCamel 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 --------------------------------------------------------------------- 24.02.2014 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: VanCamel AG Ferdinandstraße 25 20095 Hamburg Germany Phone: 040 689999-0 Fax: 040 689999-10 E-mail: [email protected] Internet: www.vancamel.de ISIN: DE000A1RFMM9 WKN: A1RFMM Listed: Regulierter Markt in Frankfurt (Prime Standard) End of News DGAP News-Service --------------------------------------------------------------------- 253921 24.02.2014