EANS-News: Wolford AG / Earnings for the Past Financial Year in Line with Expectations

Corporate news transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is responsible for the content of this announcement.

Annual Result

Bregenz -

  • Revenue down 5%
  • Earnings after tax of EUR -17.88 million in line with the last adjusted forecast
  • Prior-year earnings adjusted following routine review by the Austrian Financial Reporting Enforcement Panel
  • Medium-term forecast confirmed

Vienna/ Bregenz, August 8, 2017: Wolford AG announces the most important business results for the 2016/17 financial year (May 2016 to April 2017) before publishing its complete consolidated annual financial statements. Earnings are in line with expectations. Revenue in the past financial year fell by 5% year-on-year to EUR 154.28 million (-4.1% adjusted for currency effects). Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR - 3.39 million compared to EUR 8.38 million (adjusted 2015/16 EBITDA). As a consequence of various one-off effects, EBIT totaled EUR -15.72 million (adjusted 2015/16 EBIT: EUR -2.92 million). Excluding these effects (e.g. unscheduled depreciations due to impairments, restructuring expenses and one-off effects in other operating expenses), EBITDA in the 2016/17 financial year was about EUR 4.17 million. Depreciation and amortization totaled EUR 12.33 million (2015/16 adjusted: EUR 11.30 million). Earnings after tax equaled EUR - 17.88 million (2015/16 adjusted: EUR - 10.66 million) and thus corresponds to the forecast. Earnings per share were EUR - 3.64 (2015/16 adjusted: EUR - 2.17). All relevant details on business results for the past financial year will be presented within the context of the publication of Wolford's consolidated annual financial statements on August 24, 2017.

Adjusted prior-year figures Within the context of a random sampling carried out by the Austrian Financial Reporting Enforcement Panel (AFREP), the consolidated financial statements as at April 30, 2016 as well as the half-year reports as at October 31, 2015 and October 31, 2016 of the Wolford Group were selected and subject to a review pursuant to Section 2 Para. 1 (2) Austrian Financial Reporting Enforcement Act (audit without particular cause). The conclusion was that the consolidated financial statements as at April 30, 2016 contained flawed assumptions underlying cash flow forecasts for determining the value in use of impairment tests implemented in accordance with IAS 36. In addition, the review by AFREP also uncovered misrepresentations in several detailed items (e.g. netting) in the cash flow statement for the period May 1, 2015 to April 30, 2016. Errors made in earlier periods were retroactively adjusted. These retroactive adjustments did not have any impact on information contained in the balance sheet at the beginning of the prior-year period on May 1, 2015. The effects of these retroactive adjustments on individual items are presented in the notes to the consolidated financial statements in section II. Adjustments pursuant to IAS 8.

Outlook confirmed In the first three months of the current financial year (May to July 2017), Wolford succeeded in raising revenue by about 3% adjusted for currency effects. However, management only plans to generate slight revenue growth in the current 2017/18 financial year compared to the previous year. A time frame of two years has been designated for implementing the planned restructuring measures. These measures will first take full effect starting in the 2018/19 financial year. Against this backdrop, Wolford still expects negative operating earnings in the current 2017/18 financial year, as it already communicated on April 12, 2017. The company anticipates positive operating earnings again starting in the 2018/19 financial year.

Income statement (condensed) 2016/17 2015/16* change in % in EUR million Revenue 154.28 162.40 -5 Other operating 0.95 2.30 -59 income Changes in inventories of 1.58 4.40 -64 finished goods and work in process Own work 0.14 0.09 +56 capitalized Operating output 156.95 169.19 -7 Cost of materials and purchased -27.63 -27.38 +1 services Personnel expenses -75.22 -73.86 +2 Other operating -57.49 -59.57 -3 income Depreciation and -12.33 -11.30 +9 amortization EBIT -15.72 -2.92 >100 Financial result -0.86 -0.93 +8 Earnings before tax -16.57 -3.85 >100 Income tax -1.31 -6.81 -81 Earnings after tax -17.88 -10.66 +68

*adjusted

results in TEUR 30.04.2017 30.04.2016*

Property, plant and 45,553 50,240 equipment Goodwill 188 686 Other intangible asets 10,681 11,570 Financial assets 1,283 1,305 Non-currrent receivables 1,891 1,931 and assets Deferred tax assets 1,891 2,898 Non-current assets 61,487 68,630 Inventories 49,392 47,836 Trade receivables 11,190 8,758 Other receivables and 3,261 5,111 assets Prepaid expenses 2,744 3,262 Cash and cash equivalents 10,312 3,870 Current assets 76,899 68,837 Total assets 138,386 137,467 Share capital 36,350 36,350 Capital reserves 1,817 1,817 Other reserves 7,375 26,321 Currency translation -660 -674 differences Equity 44,882 63,814 Financial liabilities 214 974 Other liabilities 924 972 Provisions for long-term 17,546 17,896 employee benefits Other non-current 2,347 2,018 provisions Deferred tax liabilities 53 60 Non-current liabilities 21,084 21,920 Financial liabilities 42,645 25,060 Trade payables 5,035 5,086 Other liabilities 13,076 13,476 Income tax liabilities 520 1,464 Other provisions 11,144 6,647 Current liabilities 72,420 51,733 Total equity and 138,386 137,467 liabilities

*adjusted

Cash flow in TEUR 2016/17 2015/16* Earnings before tax -16,574 -3,851 Depreciation and 12,331 11,303 amortization Gains/losses from disposal of property, plant and 331 -1,011 equipment Other non-cash expenses 375 833 and income Changes in inventories -1,557 -5,370 Changes in trade -2,431 1,455 receivables Changes in other 1,850 1,628 receivables and assets Changes in trade payables -52 432 Changes in other provisions and personnel 4,478 37 obligations Changes in other -446 -957 liabilities Gross cash flow -1,695 4,499 Net interest received 43 26 Net interest paid -575 -601 Net of income taxes paid -711 -968 and received Net cash flow from -2,938 2,956 operating activities Investments in property, plant and equipment and -6,658 -7,667 other intangible asets Proceeds from the disposal of property, plant and 153 1,472 equipment and other intangible assets Changes in securities and 0 258 other financial assets Cash flow from investing -6,505 -5,937 activities Proceeds from current and non-current financial 23,522 5,673 liabilities Repayment of current and non-current financial -6,697 -3,150 liabilities Dividends paid -982 -980 Changes in treasury shares 0 250 Cash flow from financing 15,843 1,793 activities Change in cash and cash 6,400 -1,188 equivalents Cash and cash equivalents at the beginning of the 3,870 4,785 period Currency-related change in 42 273 cash and cash equivalents Cash and cash equivalents 10,312 3,870 at the end of the period

*adjusted

About Wolford AG Wolford AG, which has its headquarters in Bregenz on Lake Constance (Austria), has 16 subsidiaries and markets its products in more than 60 countries via 267 mono-brand points of sales (company-owned and partner-operated), around 3,000 distribution partners, and online. Listed on the Vienna Stock Exchange since 1995, in the 2016/17 financial year (May 1, 2016 - April 30, 2017) the company had around 1,544 employees and generated revenues of EUR 154.28 million. Founded in 1950, Wolford has since grown to become the leading global brand for luxurious legwear, exclusive lingerie, and high-quality bodywear.

end of announcement euro adhoc

issuer: Wolford Aktiengesellschaft Wolfordstrasse 1 A-6900 Bregenz phone: +43(0) 5574 690-1268 FAX: +43(0) 5574 690-1219 mail: investor@wolford.com WWW: http://company.wolford.com ISIN: AT0000834007 indexes: ATX GP stockmarkets: Wien, New York, Frankfurt language: English

Digital press kit: http://www.ots.at/pressemappe/16324/aom

Rückfragen & Kontakt:

Brigitte Kurz (Board)

Maresa Hoffmann (Investor Relations & Corporate Communications)

Tel.: +43 5574 690 1258
investor@wolford.com | company.wolford

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