EANS-News: Delticom AG: Q1 2011 on track

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Hannover (euro adhoc) - Hanover, 19 April 2011 - Delticom (German Securities
Code (WKN) 514680, ISIN DE0005146807, stock market symbol DEX), Europe's leading
online tyre dealer, looks back on another successful quarter. According to
todays preliminary figures, revenues in the first quarter of 2011 increased by
14.6% to EUR 85.4 million and EBIT by 4.6% to EUR 6.1 million. EBIT margin
decreased to 7.2% (Q110: 7.9%). Earnings per share grew 4.8% to EUR 0.35.

Due to a lower amount of snowfall this winter, sales were initially weaker than
in the previous year. On top of this, Easter does not fall until the second half
of April this year; traditionally, many drivers change to their summer tyres
before this holiday. Last year, business in March was able to benefit from this
effect, whereas this year will see relatively more summer tyre sales happen in
the second quarter. However, demand did not gather significant momentum until
springlike temperatures took hold in March.

Revenues

In spite of of the previous year's basis, Delticom was able to generate revenues
of EUR 85.4 million, a plus of 14.6% from prior-year's EUR 74.5 million.
Revenues in the E-Commerce division were up year-on-year by 13.9%, from EUR 70.7
million to EUR 80.5 million. The revenues of the Wholesale division lifted by
28.6% to EUR 4.8 million, after prior-year revenues of EUR 3.7 million. Other
operating income increased in Q111 by 3.1% to EUR 1.3 million (previous year:
EUR 1.3 million).

Gross profit

The cost of sales increased in the reporting period by 15.0%, from EUR 54.8
million in 2010 to EUR 63.0 million. In an environment of rising purchasing
prices and further supply bottlenecks, Delticom was to a good extent able to
cushion the hikes by purchasing early. As a result, the gross profit advanced in
the reporting period by 13.0% year-on-year, from EUR 21.0 million to EUR 23.7
million. The gross profit margin (gross profit in relation to total income)
decreased from 27.7% to 27.3%.

Personnel expenses

In the reporting period on average 108 staff members were employed at Delticom
(Q110: 94). Personnel expenses amounted to EUR 1.7 million (previous year: EUR
1.6 million). Compared to the prior-year period, the personnel expenses ratio
(staff expenditures as percentage of revenues) remained almost unchanged (2.0%,
Q110: 2.1%).

Other operating expenses

Overall the other operating expenses totalled EUR 15.4 million in the past
quarter, an increase of EUR 2.2 million or 16.7% over the prior-year value of
EUR 13.2 million.

Among the other operating expenses, transportation costs is the largest line
item. Tyres sold online are picked up at the delivery points by parcel services
which then transport the tyres to the customers or fitting stations. As business
volume increases, so too do these transportation costs, from EUR 6.4 million by
5.8% to EUR 6.8 million. The share of transportation costs against revenues
decreased from 8.6% in Q110 to 7.9% in Q111, partly driven by relatively
stronger revenue growth coming from higher selling prices.

Marketing expenses amounted to EUR 2.0 million, after EUR 1.7 million in Q110.
Although this represents an increase of 17.0%, the relationship to revenues
remained on a level with last year, with a share of 2.3%.

Depreciation

In line with the gradual expansion of warehouse capacity and the parallel
investments into warehousing infrastructure, scheduled depreciation rose by
24.6% from EUR 0.3 million in Q110 to EUR 0.4 million. The low absolute level of
depreciation underlines the low capital intensity of Delticom's business.

Earnings performance

Although EBIT had risen steeply in the first quarter of last year (+122.3%),
EBIT for Q111 saw a year-on-year increase once again, by 4.6% to EUR 6.1 million
(Q110: EUR 5.9 million). This translated to an EBIT margin of 7.2% (Q110: 7.9%).

The continually low Euro money market rates led to a poor financial result of
EUR 39 thousand (Q110: EUR 26 thousand). The expenditure for income taxes was
EUR 2.0 million (previous year: EUR 1.9 million). The tax rate of 32.2% was
almost flat at the previous year's level.

Consolidated net income for the period grew from EUR 4.0 million to EUR 4.2
million. This corresponds to earnings per share (EPS) of EUR 0.35 (undiluted,
Q110: EUR 0.34), a step-up of 4.8%.

Cash flow and liquidity position

Following the reversal of year-end effects and the scheduled buildup of stock
levels to EUR 83.3 million (31.12.2010: EUR 51.7 million), net working capital
increased to EUR 23.7 million (31.12.2010: EUR 1.3 million). As a consequence,
cash flow from ordinary business activities (operating cash flow) for the period
under review came in lower than last year, at EUR -18.5 million (Q110: EUR 4.7
million). Delticom's reporting-date liquidity amounted to EUR 47.5 million; it
was slightly higher than in the previous year (31.03.2010: EUR 45.0 million).

Frank Schuhardt (CFO) is satisfied with the progress of business so far: "The
success seen in the equivalent quarter of last year placed the bar very high. So
of course that makes me all the more pleased to see that Delticom has managed to
once again increase revenues and its result. We´re absolutely on track." For
2011, Delticom AG´s management continues to anticipate an increase in revenues
of approximately 10%, with an EBIT margin around one percent lower than in 2010.

The full report for the first quarter of 2011 will be published by Delticom AG
on 10 May 2011 on its website www.delti.com within the "Investor Relations"
section.

Company profile:
Delticom, Europe's leading online tyre retailer, was founded in Hanover in 1999.
With more than 100 online shops in 39 countries, the company offers its private
and business customers an unequalled assortment of excellently priced car tyres,
motorcycle tyres, bicycle tyres, truck tyres, bus tyres, special tyres, rims,
complete wheels (pre-mounted tyres on rims), selected replacement car parts and
accessories, motor oil and batteries. The independent website reifentest.com
contains impartial information about tyre tests and helps the customers choose
from more than 100 tyre brands and more than 25,000 tyre models. Delticom
delivers either directly to the customer's home address, or to one of more than
28,000 service partners - affiliated garages which take delivery of tyres and
then install these on the customer's vehicle. Delticom's Wholesale division also
sells tyres to wholesalers domestically and abroad.
On the Internet at: www.delti.com
Selected online shops: www.reifendirekt.de, www.123pneus.fr, www.mytyres.co.uk,
www.reifendirekt.ch

Contact:

Melanie Gereke
Brühlstraße 11
30169 Hannover
Tel.: +49 (0)511-936 34-8903
Fax: +49 (0)89-208081147
Email: [email protected]

Further inquiry note:
Delticom AG Investor Relations
Melanie Gereke
Brühlstraße 11
30169 Hannover
Tel.: +49 (0)511-936 34-8903
Fax: +49 (0)89-208081147
e-mail: [email protected]
end of announcement euro adhoc
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company: Delticom AG
Brühlstraße 11
D-30169 Hannover
phone: +49 (0)511 93634 8903
FAX: +49 (0)511 336116 55
mail: [email protected]
WWW: http://www.delti.com
sector: Electronic Commerce
ISIN: DE0005146807
indexes: SDAX, CDAX, Classic All Share, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Stuttgart, Düsseldorf, München
language: English

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