Wulff-Yhtiöt Oyj - Interim report (Q1 and Q3)

WULFF GROUP PLC’S INTERIM REPORT FOR JANUARY 1 – MARCH 31, 2017

INTERIM REPORT     May 4, 2017 at 9.00 A.M.

Wulff’s profitability improved, the decrease in net sales ended and remained at
previous year’s level

This is a summary of Wulff Group Plc’s interim report for January-March 2017.
Wulff Group’s interim report for January-March 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.

KEY POINTS JANUARY – MARCH 2017

  · Net sales totalled EUR 15.3 million (EUR 15.5 million). Net sales decreased
by 1.0 percentages from the previous year.
  · EBITDA was EUR 0.2 million (EUR -0.2 million) being 1.4 percentages (-1.3 %)
of net sales.
  · Operating profit (EBIT) amounted to EUR 0.1 million (EUR -0.3 million) being
0.8 percentages (-2.0 %) of net sales.
  · Earnings per share (EPS) was EUR 0.01 (EUR -0.06) in January-March.
  · Kimmo Laaksonen, M.Sc., was appointed as the new CEO of Wulff Group Plc
beginning on March 13, 2017.
  · Wulff Group’s outlook for the 2017 comparable operating result remains
unchanged; Wulff estimates that its 2017 comparable operating profit will
increase.

WULFF GROUP PLC’S CEO KIMMO LAAKSONEN

I am pleased with our good start to this year. We have succeeded in improving
our result by developing and strengthening our sales and continuing to adhere to
our long-standing cost-saving measures. Our traditional operating market has
decreased in the past years which has affected the decrease of our net sales
too. Right now, our net sales show the positive effects of the strategic
investments that we have made in the development of our range of workplace
products.

Wulff has 100 000 customers. This means 200 000 customer encounters every year
and opportunities to develop our business together with our clients. Our theme
for 2017, ”Everyone grows”, means growth and renewal as a company but also as
individuals. What kinds of products and services are used in future workplaces?
Digitalization, automatization, new working environments and mobile work are a
chance for Wulff to grow in a new market. That is why it is important for us to
invest in future’s growth business. Due to the developing economic situation and
our own strong performance, I believe that 2017 will be a year of positive
improvement for us.

GROUP’S NET SALES AND RESULT PERFORMANCE

In January-March 2017 net sales totalled EUR 15.3 million (EUR 15.5 million).
Net Sales declined by 1.0 percentages from the previous year, while Net Sales
decreased by 19.2 percentages in the previous year. Wulff has strongly invested
in sales and its development. The increasing demand in operating countries and
the strategic investments made in the development of Wulff’s range of workplace
products have had a positive effect on the business and result.

In January-March 2017 gross margin amounted to EUR 5.2 million (EUR 5.1 million)
being 34.0 percentages (32.9 %) of net sales. The increase in gross margin was
especially affected by the international fair services’ positive gross margin
development during the first quarter of 2017. One of the important, ongoing,
measures to improve profitability is the streamlining of procurement processes.

In January-March 2017 employee benefit expenses amounted to EUR 3.2 million (EUR
3.5 million) being 21.1 percentages of net sales (22.3 %). Other operating
expenses amounted to EUR 1.8 million (EUR 2.0 million) in January-March 2017,
being 11.8 percentages of net sales (12.6 percentages). The decrease in other
operating expenses was due to the successful optimization measures implemented
in logistics and administration. To improve its profitability, the Wulff Group
continues to examine its cost structure as part of ongoing reforms.

In January-March 2017 EBITDA was EUR 0.2 million (EUR -0.2 million) being 1.4
percentages (-1.3 %) of net sales. Depreciations amounted to EUR 0.1 million
(EUR 0.1 million) in January-March 2017. In January-March 2017 the operating
profit (EBIT) amounted to EUR 0.1 (EUR -0.3 million) being 0.8 percentages (-2.0
percentages) of net sales. January-March did not include items affecting the
comparability in 2017 nor 2016. Typically, in the industry and in the Group, the
annual profit is made in the last quarter of the year.

In January-March 2017 the financial income and expenses totalled (net) EUR -0.03
million (EUR -0.01 million) including interest expenses of EUR 0.02 million (EUR
0.03 million) and other financial items (net) EUR 0.05 million (EUR 0.06
million).

In January-March the result before taxes was EUR 0.1 million (EUR -0.4 million).
In January-March the net profit after taxes was EUR 0.1 million (EUR -0.4
million). Earnings per share (EPS) was EUR 0.01 (EUR -0.06) in January-March.

KEY FIGURES

+-----------------------------------------+---------+---------+---------+
|                                         |I        |I        |I-IV     |
+-----------------------------------------+---------+---------+---------+
|EUR 1000                                 |2017     |2016     |2016     |
+-----------------------------------------+---------+---------+---------+
|Net sales                                |15 332   |15 490   |59 304   |
+-----------------------------------------+---------+---------+---------+
|Change in net sales, %                   |-1,0 %   |-19,2 %  |-13,8 %  |
+-----------------------------------------+---------+---------+---------+
|EBITDA                                   |217      |-194     |998      |
+-----------------------------------------+---------+---------+---------+
|EBITDA margin, %                         |1,4 %    |-1,3 %   |1,7 %    |
+-----------------------------------------+---------+---------+---------+
|Operating profit/loss                    |119      |-312     |583      |
+-----------------------------------------+---------+---------+---------+
|Operating profit/loss margin, %          |0,8 %    |-2,0 %   |1,0 %    |
+-----------------------------------------+---------+---------+---------+
|Profit/Loss before taxes                 |85       |-365     |351      |
+-----------------------------------------+---------+---------+---------+
|Profit/Loss before taxes margin, %       |0,6 %    |-2,4 %   |0,6 %    |
+-----------------------------------------+---------+---------+---------+
|Net profit/loss for the period           |50       |-362     |302      |
|attributable to equity holders of the    |         |         |         |
|parent company                           |         |         |         |
+-----------------------------------------+---------+---------+---------+
|Net profit/loss for the period, %        |0,3 %    |-2,3 %   |0,5 %    |
+-----------------------------------------+---------+---------+---------+
|Earnings per share, EUR (diluted = non   |0,01     |-0,06    |0,05     |
|-diluted)                                |         |         |         |
+-----------------------------------------+---------+---------+---------+
|Return on equity (ROE), %                |0,5 %    |-2,8 %   |2,5 %    |
+-----------------------------------------+---------+---------+---------+
|Return on investment (ROI), %            |0,7 %    |-2,0 %   |2,9 %    |
+-----------------------------------------+---------+---------+---------+
|Equity-to-assets ratio at the end of     |48,6 %   |49,0 %   |50,5 %   |
|period, %                                |         |         |         |
+-----------------------------------------+---------+---------+---------+
|Debt-to-equity ratio at the end of period|24,8 %   |25,1 %   |19,6 %   |
+-----------------------------------------+---------+---------+---------+
|Equity per share at the end of period,   |1,79     |1,79     |1,78     |
|EUR *                                    |         |         |         |
+-----------------------------------------+---------+---------+---------+
|Net cash flow from operating activities  |-541     |-193     |679      |
+-----------------------------------------+---------+---------+---------+
|Investments in non-current assets        |215      |14       |319      |
+-----------------------------------------+---------+---------+---------+
|Investments in non-current assets, % of  |1,7 %    |0,0 %    |0,5 %    |
|net sales                                |         |         |         |
+-----------------------------------------+---------+---------+---------+
|Treasury shares held by the Group at the |79 000   |79 000   |79 000   |
|end of period                            |         |         |         |
+-----------------------------------------+---------+---------+---------+
|Treasury shares, % of total share capital|1,2 %    |1,2 %    |1,2 %    |
|and votes                                |         |         |         |
+-----------------------------------------+---------+---------+---------+
|Number of total issued shares at the end |6 607 628|6 607 628|6 607 628|
|of period                                |         |         |         |
+-----------------------------------------+---------+---------+---------+
|Personnel on average during the period   |203      |222      |214      |
+-----------------------------------------+---------+---------+---------+
|Personnel at the end of period           |195      |218      |203      |
+-----------------------------------------+---------+---------+---------+

* Equity attributable to the equity holders of the parent company / Number of
shares excluding the acquired own shares

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 material 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
has a good opportunity 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:

Half-year Report, January-June 2017     Thursday August 3, 2017
Interim Report, January-September 2017  Thursday November 2, 2017

In Vantaa on May 3, 2017

WULFF GROUP PLC
BOARD OF DIRECTORS

Further information:
CEO Kimmo Laaksonen
tel. +358 300 870 414 or mobile: +358 50 469 3060
e-mail: kimmo.laaksonen@wulff.fi

DISTRIBUTION
NASDAQ OMX Helsinki Oy
Key media
www.wulff-group.com

Priedai:

05039897.pdf