Wulff-Yhtiöt Oyj - Half Year financial report

WULFFGROUP PLC’S HALF-YEAR FINANCIAL REPORT FOR JANUARY 1 – JUNE 30, 2017

HALF-YEAR FINANCIAL REPORT            August 3, 2017 at 9:00 A.M.

Net sales declined and profitability decreased – the outlook for the comparable
operating result remains unchanged

This is a summary of Wulff Group Plc’s half-year financial report for January
-June 2017. Wulff Group’s half-year financial report for January-June 2017 is
attached as a  PDF file to this stock exchange release and is also available on
the company’s website at the address www.wulffyhtiot.fi.

JANUARY – JUNE 2017 BRIEFLY

  ·  Net sales totalled EUR 28.9 million (EUR 30.1 million). Net sales decreased
by 4.1 percentages from the previous year.
  ·  EBITDA was EUR 0.0 million (EUR 0.3 million). Comparable EBITDA was EUR 0.0
million (EUR 0.1 million).
  ·  Operating profit (EBIT) was EUR -0.2 (EUR 0.1 million). Comparable
operating profit (EBIT) amounted to EUR -0.2 million (EUR -0.1 million).
  ·  Earnings per share (EPS) were EUR -0.05 (EUR -0.01).
  ·  Equity-to-assets ratio was to 44.5 percentages (December 31, 2016: 50.5 %).
  ·  The outlook for the 2017 comparable operating profit remains unchanged.
Comparable operating profit 2017 is estimated to grow.

APRIL – JUNE 2017 BRIEFLY

  ·  Net sales totalled EUR 13.5 million (EUR 14.6 million). Net sales decreased
by 7.3 percentages from the previous year.
  ·  EBITDA was EUR -0.2 million (EUR 0.5 million). Comparable EBITDA was EUR
-0.2 million (EUR 0.4 million).
  ·  Operating profit (EBIT) was EUR -0.3 million (EUR 0.4 million). Comparable
operating profit (EBIT) was EUR -0.3 million (EUR 0.3 million).
  ·  Earnings per share (EPS) were EUR -0.06 (EUR 0.04).

WULFF GROUP’S CEO KIMMO LAAKSONEN

“I believe that the developing economic situation will affect Wulff’s business
positively during the rest of the year even though the market situation has
remained challenging. Typically for the industry, a significant portion of the
annual profit is made in the last quarter of the year. Wulff’s aim is to further
improve the profitability of its operations and its competitiveness. Among other
things, strengthening our competitiveness requires significant investments in
building a winning strategy for the future, developing our sales and customer
service, reacting quickly in our customer interface, and utilizing
digitalization to our benefit.

Investing in tomorrow’s growth businesses is important for us, and renewal also
requires that we sharpen our strategy. The initiated development projects are
investments that will affect our result as expenses in 2017. Digitalization,
automatization, new working environments and mobile work are a chance for Wulff
to grow in a new market. Due to our own strong performance and our development
projects, I believe that 2017 will be a year of positive development for us that
will also lay a strong foundation for the upcoming years.”

GROUP’S NET SALES AND RESULT PERFORMANCE

In January-June 2017 net sales totalled EUR 28.9 million (EUR 30.1 million), and
EUR 13.5 million (EUR 14.6 million in the second quarter. Net sales decreased by
4.1 percentages in January-June and 7.3 percentages in the second quarter. The
decline in net sales is a result of lost contracts and trimming of the product
range, among other things. Wulff has invested significantly in developing its
range of products for the workplace which is believed to have a positive effect
on the net sales during the rest of the year.

In January-June 2017 gross margin amounted to EUR 9.7 million (EUR 10.7 million)
being 33.7 percentages (35.4 percentages), and EUR 4.5 million (EUR 5.6 million)
in the second quarter being 33.4 percentages (38.2 percentages). The gross
margin% decreased due to write-downs of inventories that were larger than during
the previous year. Furthermore, the gross margin was affected by the
concentration of demand on low margin products during the first half-year
period. The continuous streamlining of procurement processes is one of Wulff’s
most important measures to improve profitability.

In January-June 2017 employee benefit expenses amounted to EUR 6.4 million (EUR
6.8 million) being 22.0 percentages (22.7 percentages) of Net Sales, and EUR 3.1
million (EUR 3.4 million) in the second quarter being 23.2 percentages (23.1
percentages) of Net Sales. Other operating expenses amounted to EUR 3.4 million
(EUR 3.8 million) in January-June 2017 being 11.9 percentages (12.7 percentages)
of Net Sales, and EUR 1.6 million (EUR 1.9 million) in the second quarter being
12.0 percentages (12.8 percentages) of Net Sales. Employee benefit and other
operating expenses were still affected by the implemented successful cost-saving
measures. To improve its profitability, Wulff Group continues to examine its
cost structure as part of ongoing reforms.

In January-June 2017 EBITDA was EUR 0.0 million (EUR 0.3 million) being 0.1
percentages (1.1 %) of net sales, and EUR -0.2 million (EUR 0.5 million) in the
second quarter. In January-June 2017 the comparable EBITDA amounted to EUR 0.0
million (EUR 0.1 million) and EUR -0.2 million (EUR 0.4 million) in the second
quarter. 2016 EBITDA included a car sales profit of EUR 0.2 million in January
-June and of EUR 0.1 million in the second quarter that affected comparability.
2017 EBITDA did not include items affecting the comparability.

In January-June 2017 the operating profit (EBIT) amounted to EUR -0.2 million
(EUR 0.1 million) being -0.6 percentages (0.4 percentages) of net sales, and EUR
-0.3 million (EUR 0.4 million) in the second quarter. In January-June 2017 the
comparable operating profit (EBIT) amounted to EUR -0.2 million (EUR -0.1
million) and EUR -0.3 million (EUR 0.3 million) in the second quarter. The
January-June 2016 operating profit included a car sales profit of EUR 0.2
million and EUR 0.1 million in the second quarter that affected comparability.

In January-June 2017 the financial income and expenses totalled (net) EUR -0.1
million (EUR -0.2 million) including interest expenses of EUR 0.0 million (EUR
0.1 million) and mainly currency-related other financial items (net) EUR -0.1
million (EUR -0.1 million). In the second quarter, the financial income and
expenses (net) totalled EUR -0.1 million (EUR -0.1 million).

In January-June 2017 the result before taxes was EUR -0.3 million (EUR -0.0
million), and EUR -0.4 million (EUR 0.3 million) in the second quarter.

In January-June 2017 the net profit was EUR -0.4 million (EUR -0.1 million), and
EUR -0.4 million (EUR 0.3 million) in the second quarter. Earnings per share
(EPS) were EUR -0.05 (EUR -0.01) in January-June 2017, and EUR -0.06 (EUR 0.04)
in the second quarter.

KEY FIGURES

+-------------------------------------------+-----+-----+-----+-----+-----+
|                                           |II   |II   |I-II |I-II |I-IV |
+-------------------------------------------+-----+-----+-----+-----+-----+
|EUR 1000                                   |2017 |2016 |2017 |2016 |2016 |
+-------------------------------------------+-----+-----+-----+-----+-----+
|Net   sales                                |13   |14   |28   |30   |59   |
|                                           |530  |595  |862  |085  |304  |
+-------------------------------------------+-----+-----+-----+-----+-----+
|Change   in net sales, %                   |-7,3 |-10,3|-4,1 |-15,1|-13,8|
|                                           |%    |%    |%    |%    |%    |
+-------------------------------------------+-----+-----+-----+-----+-----+
|EBITDA                                     |-196 |519  |21   |325  |998  |
+-------------------------------------------+-----+-----+-----+-----+-----+
|EBITDA   margin, %                         |-1,4 |3,6 %|0,1 %|1,1 %|1,7 %|
|                                           |%    |     |     |     |     |
+-------------------------------------------+-----+-----+-----+-----+-----+
|Operating   profit/loss                    |-293 |419  |-174 |106  |583  |
+-------------------------------------------+-----+-----+-----+-----+-----+
|Operating   profit/loss margin, %          |-2,2 |2,9 %|-0,6 |0,4 %|1,0 %|
|                                           |%    |     |%    |     |     |
+-------------------------------------------+-----+-----+-----+-----+-----+
|Profit/Loss   before taxes                 |-368 |318  |-283 |-47  |351  |
+-------------------------------------------+-----+-----+-----+-----+-----+
|Profit/Loss   before taxes margin, %       |-2,7 |2,2 %|-1,0 |-0,2 |0,6 %|
|                                           |%    |     |%    |%    |     |
+-------------------------------------------+-----+-----+-----+-----+-----+
|Net   profit/loss for the period           |-395 |280  |-345 |-81  |302  |
|attributable to equity holders of the      |     |     |     |     |     |
|parent   company                           |     |     |     |     |     |
+-------------------------------------------+-----+-----+-----+-----+-----+
|Net   profit/loss for the period, %        |-2,9 |1,9 %|-1,2 |-0,3 |0,5 %|
|                                           |%    |     |%    |%    |     |
+-------------------------------------------+-----+-----+-----+-----+-----+
|Earnings   per share, EUR (diluted = non   |-0,06|0,04 |-0,05|-0,01|0,05 |
|-diluted)                                  |     |     |     |     |     |
+-------------------------------------------+-----+-----+-----+-----+-----+
|Return   on equity (ROE), %                |-3,7 |2,4 %|-3,2 |-0,5 |2,5 %|
|                                           |%    |     |%    |%    |     |
+-------------------------------------------+-----+-----+-----+-----+-----+
|Return   on investment (ROI), %            |-2,2 |3,1 %|-1,6 |0,1 %|2,9 %|
|                                           |%    |     |%    |     |     |
+-------------------------------------------+-----+-----+-----+-----+-----+
|Equity-to-assets   ratio at the end of     |44,5 |48,6 |44,5 |48,6 |50,5 |
|period, %                                  |%    |%    |%    |%    |%    |
+-------------------------------------------+-----+-----+-----+-----+-----+
|Debt-to-equity   ratio at the end of period|37,2 |24,7 |37,2 |24,7 |19,6 |
|                                           |%    |%    |%    |%    |%    |
+-------------------------------------------+-----+-----+-----+-----+-----+
|Equity   per share at the end of period,   |1,62 |1,73 |1,62 |1,73 |1,78 |
|EUR *                                      |     |     |     |     |     |
+-------------------------------------------+-----+-----+-----+-----+-----+
|Net   cash flow from operating activities  |-541 |587  |-858 |-62  |679  |
+-------------------------------------------+-----+-----+-----+-----+-----+
|Investments   in non-current assets        |179  |0    |317  |26   |319  |
+-------------------------------------------+-----+-----+-----+-----+-----+
|Investments   in non-current assets, % of  |1,3 %|0,0 %|1,1 %|0,1 %|0,5 %|
|net sales                                  |     |     |     |     |     |
+-------------------------------------------+-----+-----+-----+-----+-----+
|Treasury   shares held by the Group at the |79   |79   |79   |79   |79   |
|end of period                              |000  |000  |000  |000  |000  |
+-------------------------------------------+-----+-----+-----+-----+-----+
|Treasury   shares, % of total share capital|1,2 %|1,2 %|1,2 %|1,2 %|1,2 %|
|and votes                                  |     |     |     |     |     |
+-------------------------------------------+-----+-----+-----+-----+-----+
|Number   of total issued shares at the end |6 607|6 607|6 607|6 607|6 607|
|of period                                  |  628|  628|  628|  628|  628|
+-------------------------------------------+-----+-----+-----+-----+-----+
|Personnel   on average during the period   |197  |217  |201  |221  |214  |
+-------------------------------------------+-----+-----+-----+-----+-----+
|Personnel   at the end of period           |199  |216  |199  |216  |203  |
+-------------------------------------------+-----+-----+-----+-----+-----+

RISKS AND UNCERTAINTIES IN THE NEAR FUTURE

The demand for office supplies is strongly affected by the general economic
development. Half of the Group’s net sales come from other than euro-currency
countries. Fluctuation of the currencies affect the Group’s net result, however
the effect of the fluctuation is expected to be moderate.

EVENTS AFTER THE REPORTING PERIOD

The Group has not had any significant events after the reporting period.

MARKET SITUATION AND FUTURE OUTLOOK

Wulff is the most significant Nordic player in its field. Wulff’s mission is to
help its corporate customers to succeed in their own business by providing them
with leading-edge products and services in a way best suitable to them. Wulff is
prepared to carry out new strategic acquisitions and as a listed company, Wulff
is in a good position to be a more active player than its competitors.

The developing economic situation affects Wulff’s business positively. Wulff’s
aim is to further improve the profitability of its operations. Wulff estimates
that its 2017 comparable operating profit will increase. In the industry, it is
typical that the result and cash flow are generated in the last quarter.

WULFF GROUP PLC’S FINANCIAL REPORTING


Wulff Group Plc will release the following financial reports in 2017:

Interim Report, January-September 2017  Thursday November 2, 2017

In Vantaa on August 2, 2017

WULFF GROUP PLC

BOARD OF DIRECTORS

Further information:

CEO Kimmo Laaksonen

tel. 0300 870 414 or 050 469 3060

e-mail: kimmo.laaksonen@wulff.fi

DISTRIBUTION

NASDAQ OMX Helsinki Oy

Key media

www.wulff-group.com

Viðhengi:

08024898.pdf