DGAP-News: Powerland AG / Key word(s): Final Results Powerland AG: Powerland publishes Annual Report for full year 2013 30.04.2014 / 07:14 --------------------------------------------------------------------- Powerland publishes Annual Report for full year 2013 - Audited results for FY 2013 published; Company reporting returns to regular financial communication calendar - Full year 2013 revenue down 12.5% to EUR 167.1 million; EBIT down 65.1% to EUR 12.3 million. Product mix improved: Luxury segment contributes 62.4% to Group revenue in full year 2013 (FY 2012: 59.1%) - Returning growth momentum in Q4 2013: Group revenue in Q4 2013 up 45.9% to EUR 45.6 million in comparison to Q3 2013; Q4 2013 EBIT achieved EUR 1.1 million after loss in Q3 2013 (EUR -0.9 million) - Solid equity ratio of 68.9% as at 31 December 2013 (69.2% as at 31 December 2012) - Management team focusses on return to profitable growth track, cautiously optimistic outlook for 2014 Frankfurt/Main, 30 April 2014 - Powerland AG (ISIN DE000PLD5558 / Prime Standard), the leading Chinese manufacturer of handbags, leather goods and accessories, today presents the Annual Report for the financial year 2013, with an unqualified audit opinion and adoption by the Supervisory Board. Yachen Jiang, CFO of Powerland, comments: "We managed to present the audited annual report 2013 only four weeks after the Annual General Meeting approved the financial statements for the full year 2012. This shows our commitment towards our shareholders to enhance transparency and fulfill the obligations required of a listed company." 2013 was a challenging year for Powerland. During the reporting period, the Company tried hard throughout the entire year, but still failed to publish the financial statements for the previous year. Combined with the negative impact from weak market conditions, Powerland achieved revenue and earnings that were below the performance of 2012. Due to minor adaptions in foreign exchange rates, slight modifications emerged compared to the preliminary and unaudited figures published at the beginning of March 2014. Powerland achieved revenues of EUR 167.1 million in full year 2013, down 12.5% from EUR 191.0 million in 2012. Over the course of 2013, Powerland successfully continued its strategy to migrate towards its high-profit-margin segment: The Luxury segment now contributes 62.4% of revenues to the Company, in contrast to 59.1% for 2012. In Q4 2013, Powerland achieved revenue of EUR 45.6 million, up by 45.9% in comparison to Q3 2013 (EUR 31.2 million). This strong revenue increase was mainly due to an improved contribution of Powerland's Luxury segment which doubled in Q4 2013 compared to the previous quarter. During the very strong Q4 2012, revenues achieved EUR 49.8 million.

in EUR million  Q3 2013  Q4 2013  Change (%)  2012    2013    Change (%)
Revenue         31.2     45.6     45.9%       191.0   167.1   -12.5%
Luxury          15.7     32.4     106.4%      112.8   104.2   -7.6%
Casual          15.5     13.2     -14.8%      78.2    62.9    -19.6%
Luxury %        50%      71%                  59%     62%
Casual %        50%      29%                  41%     38%
Gross profit    9.8      16.4     67.3%       83.1    60.8    -26.8%
EBIT1           -0.9     1.1      -           35.3    12.3    -65.1%

1 EBIT represents earnings before net finance cost and tax Continued expansion of distribution network In order to further strengthen the Company's market position in mainland China, Powerland continued to expand its distribution network in 2013 from 180 stores as of 31 December 2012 to 214 stores as of 31 December 2013. In total, 62 stores were opened in 2013 while 28 underperforming stores were closed in the same period. A net of 34 stores were added to Powerland's network in mainland China, 24 of which are distributor-operated. This demonstrates Powerland's and the Company's distributor partner's strong confidence in Powerland's upside potentials as well as the near-term market growth. Powerland's total sales area increased by 39% from 8,936 m2 as of 31 December 2012 to 12,418 m2 as of 31 December 2013. However, due to the decrease in revenue and gross profit and flat SG&A expenses, operating earnings before interest and taxes (EBIT) decreased from EUR 35.3 million to EUR 12.3 million in full year 2013 (-65.1%). Nevertheless, Powerland was able to return to its profitable growth path in Q4 2013 with an increased EBIT of EUR 1.1 million compared to EUR -0.9 million in Q3 2013 (Q4 2012: EUR 10.1 million). Profit before tax for the full year decreased from EUR 33.6 million in 2012 to EUR 9.6 million in 2013. Net profit stood at EUR 6.8 million in 2013 after EUR 24.0 million in 2012. Solid equity ratio Equity increased from EUR 147.5 million as at 31 December 2012 to EUR 152.7 million as at 31 December 2013 mainly resulting from the profit generated in 2013. The equity ratio remained at a solid level of 68.9% as at 31 December 2013 (69.2% as at 31 December 2012). Cash and cash equivalents stood at EUR 15.4 million at year end 2013 after EUR 64.1 million at year end 2012. This decrease resulted from high investing and operating activities that exceeded the positive cash flow from and financing activities. Cautiously optimistic outlook for 2014 Having solved the 2012 audit issue, the management team is now able to refocus on daily operations with the goal to bring the Company back on a profitable growth track. In 2013, the Company was actively adapting itself to the changing market environment. The Q4 2013 achievements illustrate that the Company is about to regain profitable growth momentum. The Management Board maintains a cautiously optimistic outlook for 2014. Powerland anticipates that sales will see moderate growth in comparison to 2013 while Luxury segment's contributions to the Group will be further enhanced. The operating expenses will be maintained at a similar level to 2013's so that earnings of 2014 are expected to be improved. Operation-wise, Powerland aims to further grow its distribution network and expects to operate approximately 250 stores by the end of 2014. Powerland does not plan any major capital expenditure apart from expenses associated with new store openings. Meanwhile, the Company will continue its efforts in stringent net working capital management and keep inventory and accounts receivable at a reasonable level. However, systematic risks still prevail during China's intended economic transition and Powerland will proactively adapt to the changing environment. As a further step in returning to a regular financial communications calendar, Powerland will invite its shareholders for its Annual General Meeting for the financial year 2013 in the near term future. For the annual report for full year 2013 and further information about the Company please refer to: www.powerland.ag For more information, please contact: Powerland AG Investor Relations Lyoner Strasse 14 60528 Frankfurt am Main Germany Phone: +49 (0) 69 66 554 - 459 Fax: +49 (0) 69 66 554 - 276 E-mail: [email protected] Home: http://www.powerland.ag End of Corporate News --------------------------------------------------------------------- 30.04.2014 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: Powerland AG Lyoner Straße 14 60528 Frankfurt am Main Germany Phone: +49 69 - 66554-459 Fax: +49 69 - 66554-276 E-mail: [email protected] Internet: www.powerland.ag ISIN: DE000PLD5558 WKN: PLD555 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 265580 30.04.2014