DGAP-News: Powerland AG / Key word(s): Interim Report/Quarter Results Powerland AG: Performance in line with expectations / Outlook for FY 2015 confirmed 05.08.2015 / 09:51 --------------------------------------------------------------------- Frankfurt/Main, 5 August 2015 - Against the background of a challenging market environment, Powerland AG generated Group revenues of EUR 30.0 million in the first quarter of 2015. This corresponds to a decrease of 24% compared to the last year's figure. Both the Luxury as well as the Casual segment played a major part in contributing to this development: Revenues in the Luxury segment were down 23% to EUR 23.2 million, whereas in the Casual Segment, revenues of EUR 6.8 million were generated (-25%). At EUR 3.1 million, Group EBIT decreased by 17% as against the first quarter of 2014. EBIT margin slightly improved from 9.6% to 10.3%. Earnings before taxes amounted to EUR 2.5 million (-41%). Net profit of Powerland Group came in significantly lower at EUR 1.9 million, representing a 44% decrease compared to Q1-2014. Based on 15 million shares, this figure is equivalent to earnings per share of EUR 0.13 (-43%). Cash and cash equivalents went up from EUR 8.7 million at year-end 2014 to EUR 25.8 million as at 31 March 2015. While cash generated from operations was negative at EUR -11.8 million, the increase is mainly due to higher net borrowings. Operation-wise, the Powerland Group launched its new product series and is constantly enhancing its online and offline brand awareness. Despite the achievements, Powerland faces substantial challenges: As the Chinese economy slows down and the competition in the Luxury segment becomes increasingly intensive, Powerland has to lower down unit selling prices and offer deeper discounts for distributors; at the same time, the price war in the casual segment remains unchanged. So far, the business performance is generally in line with the company's expectations. Consequently, Powerland maintains its conservative outlook for 2015. The company expects to generate revenues of EUR 112.0 million in the financial year 2015. Although Powerland will close down more stores and implement more cost-effective marketing campaigns so as to reduce operating expenses, Group EBIT will fall as well to supposedly EUR 6.0 million. Meanwhile, Powerland will continue to adopt a stringent working capital management to ensure a healthier cash flow situation.

in EUR million             Q1 2015             Q1 2014              Change
Revenue                       30.0                39.3                -24%
Luxury                        23.2                30.3                -23%
Casual                         6.8                 9.0                -25%
Luxury                         76%                 77%
Casual                         24%                 23%
Net profit                     1.9                 3.5                -44%
Gross profit                  11.4                14.4                -21%
Luxury                        10.3                12.6                -19%
Casual                         1.2                 1.8                -34%
EBIT                           3.1                 3.8                -17%
Luxury                         3.1                 3.6                -14%
Casual                        0.01                 0.2                -92%
EBIT margin                  10.3%                9.6%
Luxury                       13.3%               11.9%
Casual                           -                1.7%

The full financial report for the first quarter of 2015 is now available at http://www.powerland.ag/en/investor-relations/financial-reports For further information, please contact: Powerland AG c/o GFD - Gesellschaft für Finanzkommunikation mbH Fellnerstrasse 7-9 60322 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 --------------------------------------------------------------------- 05.08.2015 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP 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 c/o GFD mbH, Fellnerstr. 7-9 60322 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: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 383713 05.08.2015