euro adhoc: ESCADA AG / Financial Figures/Balance Sheet / ESCADA records significant rise in profits for 2004/2005 (E)

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Disclosure announcement transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
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21.12.2005

Aschheim/Munich, December 21st, 2005 - ESCADA AG completes the fiscal year
2004/2005 (closing date: October 31st) fully on target with its forecast and a
significant improvement in profitability. According to preliminary figures sales
are up by 3.7%. Despite a persistently sluggish market for ladies luxury fashion
the Group’s sales rose from 625.5 million Euro to 648.6 million Euro. Allowing
for currency adjustments the growth rate was 4.3%. Sales for the ESCADA brand
increased by 5.8% to 436.5 million Euro (2003/2004: 412.7 million Euro).
Revenues for the PRIMERA-Group rose by 2.8% from 205.8 million Euro to 211.5
million Euro. Allowing for the effects of de-consolidation, sales at the PRIMERA
Group were up by 5.7%.

In 2004/2005 the Group’s earnings before interest, taxes, depreciation and
amortization (EBITDA) rose by 17.8 million to 65.1 million Euro. Compared with
last year’s EBITDA of 47.3 million Euro this increase of 37.6% clearly exceeded
the targeted EBITDA-improvement of at least 10 million Euro. The improvement in
profitability, which outstrips the growth in turnover, is, above all, due to a
1.3%-rise in the gross profit margin to 61.9%. The positive effects of process
optimizations and efficiency improvements could be felt in all business
divisions of the Group. The ESCADA Group’s earnings before taxes recorded 28.9
million Euro after 6.5 million Euro the year before. Earnings after taxes and
before minority interests stands at 14.0 million Euro (2003/2004: 4.5 million
Euro). Thus, ESCADA has regained its capacity to pay out dividends.

The Group lifted its equity ratio from 20.0% to 23.4% per closing date October
31st 2005, while net debt totaled 207.8 million Euro (October 31st 2004: 208.7
million Euro).

For the current fiscal year 2005/2006 the Board of Management’s outlook is
optimistic. Given the continued positive and - compared with last year -
significantly higher level of incoming orders plus the growth measures now
introduced, ESCADA seeks to expand Group sales and to achieve an
over-proportional increase in the Group’s EBITDA and net income.

Further inquiry note:
Viona Brandt
Tel.: +49 (0)89 9944 1336
E-Mail: [email protected]

end of announcement euro adhoc 21.12.2005 06:45:00
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emitter: ESCADA AG
Margaretha-Ley-Ring 1
D-85609 München
phone: +49 (0)89 9944 1336
FAX: +49 (0)89 9944 1500
mail: [email protected]
WWW: http://www.escada.com
ISIN: DE0005692107, XS0215685115, DE000AOFAQF2
indexes: SDAX, CDAX, Classic All Share, Prime All Share
stockmarkets: official dealing/prime standard: Frankfurter Wertpapierbörse, free
trade: Hamburger Wertpapierbörse, Baden-Württembergische
Wertpapierbörse, Börse Düsseldorf, Berliner Wertpapierbörse,
Hamburger Wertpapierbörse, Baden-Württembergische Wertpapierbörse,
Börse Düsseldorf, Bremer Wertpapierbörse (BWB), official dealing:
Bayerische Börse, Frankfurter Wertpapierbörse, Bayerische Börse
sector: Clothing
language: English

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