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

WULFF GROUP PLC'S INTERIM REPORT FOR JANUARY 1 – SEPTEMBER 30, 2017

INTERIM REPORT  November 2, 2017 at 9.00 A.M.

Net sales declined and profitability decreased

This is a summary of Wulff Group Plc’s interim report for January-September
2017. Wulff Group’s interim report as a whole for January-September 2017 is
attached as a PDF file to this stock exchange release and it is also available
on the company’s website www.wulff-group.com.

1.1.-30.9.2017 BRIEFLY

  · Net sales totalled EUR 41.1 million (43,5). Net sales decreased by 5.5%
  · EBITDA was EUR -0.0 million (0.7). Comparable EBITDA was EUR -0.0 million
(0.5)
  · Operating profit (EBIT) was EUR -0.3 million (0.4). Comparable operating
profit (EBIT) amounted to EUR -0.3 million (0.2)
  · Earnings per share (EPS) were EUR -0.07 (0.01)
  · Equity-to-assets ratio was 44.9% (31.12.2016: 50.5)

1.7.-30.9.2017 BRIEFLY

  · Net sales totalled EUR 12.2 million (13.4). Net sales decreased by 8.7%
  · EBITDA was EUR -0.0 million (0.4). Comparable EBITDA was EUR -0.0 million
(0.4)
  · Operating profit (EBIT) was EUR -0.1 million (0.4). Comparable operating
profit (EBIT) was EUR -0.1 million (0.3)
  · Earnings per share (EPS) were EUR -0.02 (0.02)
  · The Board appointed Heikki Vienola as the new CEO after the resignation of
CEO Kimmo Laaksonen
  · Wulff adjusted its outlook for the comparable operating profit during the
financial period: the comparable operating profit for 2017 will not reach the
level of 2016

WULFF GROUP’S CEO HEIKKI VIENOLA

“In 2017, we have invested in our competitiveness. The current development
projects are important investments. The market situation has remained
challenging for us, hence it is likely that we will not reach our target result
and net sales. In this rapidly changing world, to better serve our customers in
the way they want to be served, it is necessary to invest in development. For
example, we need to constantly develop our selection of workplace products,
cafeteria and facility management products, and cleaning and hygiene supplies.
Wulff’s customers know and count on the fact that they can acquire the broadest
selection of products for the workplace from us, irrespective of their operating
field. For more and more companies, the wellbeing of their personnel and
workplace ergonomics are growing in importance: companies want to obtain these
services as easily as basic products. Wulff offers the same cost-effective and
time-saving channels for everything that you need at your workplace, now and in
the future.“

GROUP’S NET SALES AND RESULT PERFORMANCE

In January-September 2017 net sales totalled EUR 41.1 million (43.5), and EUR
12.2 million (13.4) million in the third quarter. Net sales decreased by 5.5% in
January-September and 8.7% in the third quarter. The decline in net sales is a
result of lost contracts and trimming of the product range. Wulff continues to
develop its range of workplace products.

In January-September 2017 the gross margin amounted to EUR 13.9 million (15.2)
being 33.9% (35.0), and EUR 4.2 million (4.6) in the third quarter being 34.2%
(34.0). The gross margin percent 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-September 2017 employee benefit expenses amounted to EUR 9.0 million
(9.4), 22.0% (21.6) of net sales and EUR 2.7 million (2.5), 21.8% (19.0) of net
sales in the third quarter. Other operating expenses amounted to EUR 5.0 million
(5.5) in January-September 2017 being 12.2% (12.6) of net sales and EUR 1.6
million (1.7), 12.9% (12.5) of net sales in the third quarter. Employee benefit
and other operating expenses were still affected by the implemented cost-saving
measures. To improve its profitability, Wulff Group continues to examine its
cost structure as part of ongoing reforms.

In January-September 2017 EBITDA was EUR -0.0 million (0.7) being -0.0% (1.6) of
net sales, and EUR -0.0 million (0.4) in the third quarter. In January-September
2017 the comparable EBITDA amounted to EUR -0.0 million (0.5) and EUR -0.0
million (0.4) in the third quarter. 2016 EBITDA included a profit of EUR 0.2
million from the sales of car stock in January-September. 2017 EBITDA did not
include items affecting comparability.

In January-September 2017 the operating profit (EBIT) amounted to EUR -0.3
million (0.4) being -0.7% (0.9) of net sales, and EUR -0.1 million (0.4) in the
third quarter. In January-September 2017 the comparable operating profit (EBIT)
amounted to EUR -0.3 million (0.2) and EUR -0.1 million (0.3) in the third
quarter. The January-September 2016 operating profit included profit of EUR 0.2
million and EUR 0.1 million in the third quarter from the sales of car stock
that affected comparability.

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

In January-September 2017 the result before taxes was EUR -0.4 million (0.2),
and EUR -0.1 million (0.2) in the third quarter.

In January-September 2017 the net profit was EUR -0.5 million (0.1), and EUR
-0.1 million (0.2) in the third quarter. Earnings per share (EPS) were EUR -0.07
(0.01) in January-September 2017, and EUR -0.02 (0.02) in the third quarter.

KEY FIGURES

+-----------------------------------------+-----+-----+------+------+---------+
|                                         |III  |III  |I-III |I-III |I-IV     |
|                                         |     |     |      |      |         |
+-----------------------------------------+-----+-----+------+------+---------+
|EUR 1000                                 |2017 |2016 |2017  |2016  |2016     |
+-----------------------------------------+-----+-----+------+------+---------+
|Net sales                                |12   |13   |41 102|43    |59 304   |
|                                         |240  |408  |      |493   |         |
+-----------------------------------------+-----+-----+------+------+---------+
|Change in net sales, %                   |-8,7%|-9,4%|-5,5% |-13,4%|-13,8%   |
|                                         |     |     |      |      |         |
+-----------------------------------------+-----+-----+------+------+---------+
|EBITDA                                   |-39  |365  |-18   |690   |998      |
+-----------------------------------------+-----+-----+------+------+---------+
|EBITDA margin, %                         |-0,3%|2,7% |0,0%  |1,6%  |1,7%     |
+-----------------------------------------+-----+-----+------+------+---------+
|Operating profit/loss                    |-134 |270  |-308  |376   |583      |
+-----------------------------------------+-----+-----+------+------+---------+
|Operating profit/loss margin, %          |-1,1%|2,0% |-0,7% |0,9%  |1,0%     |
+-----------------------------------------+-----+-----+------+------+---------+
|Profit/Loss before taxes                 |-134 |200  |-417  |153   |351      |
+-----------------------------------------+-----+-----+------+------+---------+
|Profit/Loss before taxes margin, %       |-1,1%|1,5% |-1,0% |0,4%  |0,6%     |
+-----------------------------------------+-----+-----+------+------+---------+
|Net profit/loss for the period           |-121 |153  |-467  |71    |302      |
|attributable to equity holders of the    |     |     |      |      |         |
|parent company                           |     |     |      |      |         |
+-----------------------------------------+-----+-----+------+------+---------+
|Net profit/loss for the period, %        |-1,0%|1,1% |-1,1% |0,2%  |0,5%     |
+-----------------------------------------+-----+-----+------+------+---------+
|Earnings per share, EUR (diluted = non   |-0,02|0,02 |-0,07 |0,01  |0,05     |
|-diluted)                                |     |     |      |      |         |
+-----------------------------------------+-----+-----+------+------+---------+
|Return on equity (ROE), %                |-1,1%|1,3% |-4,3% |0,8%  |2,5%     |
+-----------------------------------------+-----+-----+------+------+---------+
|Return on investment (ROI), %            |-0,7%|1,4% |-2,3% |1,4%  |2,9%     |
+-----------------------------------------+-----+-----+------+------+---------+
|Equity-to-assets ratio at the end of     |44,9%|48,0%|44,9% |48,0% |50,5%    |
|period, %                                |     |     |      |      |         |
+-----------------------------------------+-----+-----+------+------+---------+
|Debt-to-equity ratio at the end of period|38,9%|33,0%|38,9% |33,0% |19,6%    |
+-----------------------------------------+-----+-----+------+------+---------+
|Equity per share at the end of period,   |1,60 |1,75 |1,60  |1,75  |1,78     |
|EUR *                                    |     |     |      |      |         |
+-----------------------------------------+-----+-----+------+------+---------+
|Investments in non-current assets        |96   |114  |413   |116   |319      |
+-----------------------------------------+-----+-----+------+------+---------+
|Investments in non-current assets, % of  |0,8% |0,9% |1,0%  |0,3%  |0,5%     |
|net sales                                |     |     |      |      |         |
+-----------------------------------------+-----+-----+------+------+---------+
|Treasury shares held by the Group at the |79   |79   |79    |79    |79 000   |
|end of period                            |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 |6 607 628|
|of period                                |628  |628  |628   |628   |         |
+-----------------------------------------+-----+-----+------+------+---------+
|Personnel on average during the period   |199  |213  |198   |218   |214      |
+-----------------------------------------+-----+-----+------+------+---------+
|Personnel at the end of period           |199  |211  |199   |211   |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 and the market’s tight competition. Approximately 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.

SUBSEQUENT EVENTS

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

MARKET SITUATION AND FUTURE OUTLOOK

Wulff is the most significant Nordic player in its field. Wulff creates
workplaces and its mission is to help 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 will enable Wulff’s business to develop
positively in the long term. Wulff’s aim is to further improve the profitability
of its operations. Wulff estimated that its 2017 comparable operating profit,
which was 419 thousand euros, will increase. However, the Group decreased its
estimate on 20.9.2017 for the rest of the year. According to the Group
management’s forecast, it is likely that the comparable operating profit will
not reach the level of 2016. In the industry, it is typical that the result and
cash flow are generated in the last quarter.

In Vantaa on November 2, 2017

WULFF GROUP PLC
BOARD OF DIRECTORS

Further information:
CEO Heikki Vienola
tel. +358 300 870 414 or +358 50 65 110
e-mail: heikki.vienola@wulff.fi

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

Wulff enables working in environments where companies and entrepreneurs operate.
We offer the industry’s most comprehensive product and service range that can
help you create an office wherever you want it. What would you like? We offer
our customers office supplies, facility management products, catering solutions,
IT supplies, ergonomics, first aid, LED lighting solutions and innovative
products for worksites. Customers can also acquire international exhibition
services from Wulff. In addition to Finland, Wulff operates in Sweden, Norway,
and Denmark. Check out our products and services at wulff.fi.

Viðhengi:

11014758.pdf