Restamax Oyj - Financial Statement Release

RESTAMAX PLC INTERIM REPORT FOR 1 JANUARY-30 DECEMBER 2016: Turnover increased by 14.5 per cent and profitability improved

Restamax Plc

INTERIM REPORT 21 February 2017 at 8:00 a.m.

RESTAMAX PLC INTERIM REPORT FOR 1 JANUARY-30 DECEMBER 2016:
Turnover increased by 14.5 per cent and profitability improved

TURNOVER AND INCOME

Group's result for October-December 2016

Entire Group:
The Group's turnover was MEUR 34.4 (MEUR 31.5), growth of 9.2 per cent. EBITDA
was MEUR 5.9 (MEUR 5.5), growth of 7.1 per cent. Operating profit was MEUR 3.5
(MEUR 3.0), growth of 18.4 per cent.

Restaurant business:
The turnover of the restaurant business segment was MEUR 28.5 (MEUR 27.5),
growth of 3.5 per cent. EBITDA was MEUR 5.1 (MEUR 5.3), decrease of 3.4 per
cent. Operating profit was MEUR 3.0 (MEUR 3.0), growth of 0.6 per cent.

Labour hire business:
The turnover of the labour hire business was MEUR 8.6 (MEUR 6.6), growth of
29.6 per cent. EBITDA was MEUR 1.0 (MEUR 0.3), growth of 188.9  per cent.
Operating profit was MEUR 0.5 (MEUR 0.0), growth of 3781.7 per cent.

Group's result for January-December 2016

Entire Group:
The Group's turnover was MEUR 130.1 (MEUR 113.6), growth of 14.5 per cent.
EBITDA was MEUR 19.4 (MEUR 16.5), growth of 17.3 per cent. Operating profit was
MEUR 9.0 (MEUR 7.3), growth of 23.8 per cent.

Restaurant business:
The turnover of the restaurant business segment was MEUR 107.5 (MEUR 100.3),
growth of 7.2 per cent. EBITDA was MEUR 16.5 (MEUR 14.8), growth of 11.3 per
cent. Operating profit was MEUR 7.4 (MEUR 6.5), growth of 14.0 per cent.

Labour hire business:
The turnover of the labour hire business was MEUR 34.1 (MEUR 24.2), growth of
41.3 per cent. EBITDA was MEUR 3.4 (MEUR 2.2), growth of 59.3 per cent.
Operating profit was MEUR 1.6 (MEUR 0.8), growth of 106.1 per cent.

Figures in parentheses refer to the same period last year, unless otherwise
stated.

In the period October-December 2016, the development of the restaurant business
did not fully meet the company's growth expectations. In terms of profitability,
October was exceptionally weak, as was the case generally in the tourism and
restaurant sector. In spite of this, the Group's result for 2016 was
considerably better than the previous year. The turnover of the entire Group
increased by 14.5 per cent from the previous year, EBITDA by 17.3 per cent and
operating profit by 23.8 per cent.

Due to the seasonal nature of both the restaurant and labour hire businesses,
most of the profits are made at the end of the year.

Prospects for 2017

Profit guidance (as of 21/02/2017):

Restamax expects the Group's turnover to increase and profitability to remain on
a good level in the 2017 financial year.

The company's goal is to reach a turnover of MEUR 180 by the end of 2018.

+------------------------------------+----------+----------+---------+---------+
|KEY FIGURES                         |          |          |         |         |
+------------------------------------+----------+----------+---------+---------+
|Restamax Group in total             |          |          |         |         |
+------------------------------------+----------+----------+---------+---------+
|(TEUR)                              |10-12/2016|10-12/2015|1-12/2016|1-12/2015|
+------------------------------------+----------+----------+---------+---------+
|KEY FIGURES, entire Group           |          |          |         |         |
+------------------------------------+----------+----------+---------+---------+
|Turnover                            |    34,355|    31,470|  130,072|  113,618|
+------------------------------------+----------+----------+---------+---------+
|EBITDA                              |     5,940|     5,548|   19,399|   16,536|
+------------------------------------+----------+----------+---------+---------+
|EBITDA, %                           |     17.3%|    17.6 %|   14.9 %|   14.6 %|
+------------------------------------+----------+----------+---------+---------+
|Operating profit                    |     3,522|     2,975|    8,998|    7,266|
+------------------------------------+----------+----------+---------+---------+
|Operating profit, %                 |    10.3 %|     9.5 %|    6.9 %|    6.4 %|
+------------------------------------+----------+----------+---------+---------+
|Review period result                |     2,621|     2,049|    5,864|    4,809|
+------------------------------------+----------+----------+---------+---------+
|To shareholders of the parent       |     2,485|     2,019|    5,608|    5,050|
|company                             |          |          |         |         |
+------------------------------------+----------+----------+---------+---------+
|Minority shareholders               |       137|        30|      256|     -241|
+------------------------------------+----------+----------+---------+---------+
|Earnings per share (euros) to the   |      0.15|      0.12|     0.35|     0.31|
|shareholders of the parent company  |          |          |         |         |
+------------------------------------+----------+----------+---------+---------+
|Interest-bearing net liabilities    |          |          |   30,377|   29,313|
+------------------------------------+----------+----------+---------+---------+
|Gearing ratio, %                    |          |          |   69.1 %|   73.2 %|
+------------------------------------+----------+----------+---------+---------+
|Equity ratio, %                     |          |          |   45.2 %|   44.4 %|
+------------------------------------+----------+----------+---------+---------+
|Return on investment, % (p.a.)      |          |          |   11.9 %|   10.8 %|
+------------------------------------+----------+----------+---------+---------+
|Net financial expenses              |          |          |      953|    1,195|
+------------------------------------+----------+----------+---------+---------+

+-------------------+----------+----------+---------+---------+
|Restaurant business|          |          |         |         |
+-------------------+----------+----------+---------+---------+
|(TEUR)             |10-12/2016|10-12/2015|1-12/2016|1-12/2015|
+-------------------+----------+----------+---------+---------+
|Turnover           |    28,474|    27,516|  107,544|  100,315|
+-------------------+----------+----------+---------+---------+
|EBITDA             |     5,131|     5,311|   16,475|   14,801|
+-------------------+----------+----------+---------+---------+
|EBITDA, %          |    18.0 %|    19.3 %|   15.3 %|   14.8 %|
+-------------------+----------+----------+---------+---------+
|Operating profit   |     2,980|     2,961|    7,401|    6,492|
+-------------------+----------+----------+---------+---------+
|Operating profit, %|    10.5 %|    10.8 %|    6.9 %|    6.5 %|
+-------------------+----------+----------+---------+---------+
|                   |          |          |         |         |
+-------------------+----------+----------+---------+---------+
|KEY FIGURES        |          |          |         |         |
+-------------------+----------+----------+---------+---------+
|Material margin, % |    76.9 %|    76.1 %|   74.6 %|   74.3 %|
+-------------------+----------+----------+---------+---------+
|Staff expenses, %  |    27.9 %|    26.7 %|   28.1 %|   28.5 %|
+-------------------+----------+----------+---------+---------+

+--------------------+----------+----------+---------+---------+
|Labour hire business|          |          |         |         |
+--------------------+----------+----------+---------+---------+
|(EUR thousand)      |10-12/2016|10-12/2015|1-12/2016|1-12/2015|
+--------------------+----------+----------+---------+---------+
|Turnover            |     8,614|     6,647|   34,129|   24,151|
+--------------------+----------+----------+---------+---------+
|EBITDA              |       988|       342|    3,441|    2,161|
+--------------------+----------+----------+---------+---------+
|EBITDA, %           |    11.5 %|     5.1 %|   10.1 %|    8.9 %|
+--------------------+----------+----------+---------+---------+
|Operating profit    |       543|        14|    1,597|      775|
+--------------------+----------+----------+---------+---------+
|Operating profit, % |     6.3 %|     0.2 %|    4.7 %|    3.2 %|
+--------------------+----------+----------+---------+---------+
|                    |          |          |         |         |
+--------------------+----------+----------+---------+---------+
|KEY FIGURES         |          |          |         |         |
+--------------------+----------+----------+---------+---------+
|Staff expenses, %   |    83.9 %|    86.0 %|   85.5 %|   85.2 %|
+--------------------+----------+----------+---------+---------+

CEO MARKKU VIRTANEN

Growth in line with strategy in the 2016 financial period

In January-December 2016, the turnover of our Group increased by 14.5 per cent,
EBITDA by 17.3 per cent and operating profit by almost 24 per cent in comparison
with the previous financial period. 2016 supported our strategic growth: we
strengthened our present marketplaces and expanded our operations northwards.

Although the final quarter of the year did not completely meet our growth
expectations in terms of the restaurant business, we can be satisfied with the
figures for the 2016 financial period, which are quite good compared to the
sector in general. Our 2016 turnover was MEUR 130.1, EBITDA MEUR 19.4, and
operating profit MEUR 9.0. We succeeded in improving the sales and material
margin in the restaurant business, and in reducing staff costs.

Turnover in October-December 2016 increased by more than 9 per cent in
comparison with the previous year. Our comprehensive restaurant portfolio with
its diverse concepts and top-class artists offered customers tailored events and
exciting moments. At the same time, the flexible and customer-centred service of
our staff and their quick reactions in changing situations were the cornerstones
of our efficient operations. An active end to the year ensured that our staff
were busy throughout the country.

A difference from the corresponding quarter in 2015 was, however, a later start
to the Christmas party season - the consumption of services did not
significantly pick up until the end of November. The result for October 2016 was
considerably weaker than the previous year, which was also generally evident
throughout the tourism and restaurant sector. When examining October, it is also
justifiable to compare it to the same month in 2015, which contained five
weekends. The clear focusing on December of 2016 Christmas party sales is partly
a result of there being five weekends in December. Also, Christmas sales were
boosted by Christmas Eve falling on a Saturday, as a result of which a reduction
in customers going home to their families the weekend before Christmas was not
yet noticeable.

Towards the end of the year, we strengthened our positions in the North and in
the Helsinki area. In November, we bought the Colorado Bar & Grill restaurants
in Ruka, Levi, Pyhä and Helsinki, the Mura Sushi restaurant in Ruka and the
Kuura and Pizza Block restaurants in Levi. In East Ruka, we also opened
Vuosseli, a new family pizzeria. In November-December, opening parties were held
in Helsinki for Wayne's Coffee Lönkka and Wayne's Coffee Lauttis, which operate
on the franchising principle. In the same way, the eighth restaurant of the
Classic American Diner concept began operations in Citykäytävä in Helsinki at
the beginning of December.

Success fuelled by the ability to adapt to trends

In 2016, clear themes were evident in the restaurant industry. According to a
trends survey of restaurant dining published in December 2016 by the Finnish
Hospitality Association (MaRa), customers value fast, high-quality and
convenient food as shown, for example, by the growth in takeaway culture, cafés,
pizzerias and hamburger restaurants. At the same time, lunchtime dining in
restaurants has decreased and moved more towards the evenings and leisure time.
All in all, the share of adults and young adults regularly visiting restaurants
and cafés is increasing in Finland.

Trends that emerged in the survey are also clearly perceptible in our Group's
events in 2016. During the year, we concluded a cooperation agreement with,
among others, Wolt and Foodora home delivery services and the Lunchie service
that aims to reduce food waste from restaurants. Also the 2016 financial period,
we opened the hamburger-oriented Classic American Diner restaurant at the Jumbo
shopping centre in Vantaa, at Linnanmäki and in downtown Helsinki, the pizzeria
Bella Roma in Jyväskylä, the chicken wings restaurant Hook, two Wayne's Coffee
cafés in Helsinki and the Vuosseli pizzeria in Ruka. We continuously monitor
consumer behaviour and the market, and adapt our concepts and services to the
wishes of the customers.

Growth in the tourism and restaurant sector slows towards the end of the year -
recovery on the horizon

According to an economic forecast published by MaRa in February 2017, the
turnover of the tourism and restaurant sector increased by 4.9 per cent between
January and November 2016 and that of restaurants by 4.7 per cent. According to
MaRa's seasonal survey, about 60 per cent of companies increased their sales
during the Christmas party season. According to a turnover forecast, in the last
quarter of 2016 the turnover of restaurants increased by 3.4 per cent, even
though growth in the January-November period was 4.7 per cent. The slowing of
growth is based on the exceptionally bad October, when turnover growth in the
sector was just 1.8 per cent.

Generally speaking, the economic situation of the sector has improved but is
still below average. The companies in the tourism and restaurant sector,
however, have an optimistic attitude to the future. According to MaRa,
restaurant food sales will continue to increase and the decline in sales of
alcohol will continue. All in all, an increase in purchasing power has continued
thanks to slow price development, and consumer confidence has increased to the
highest level in five years.

If the new bill announced in November 2016 concerning a new Alcohol Act enters
into force in 2018, in spite of the previous positive forecasts it will also
present challenges for the restaurant sector. According to MaRa, the most
problematic points include the strict requirement for doormen relating to the
extension of licensing hours and permitting customers to bring their own alcohol
to restaurants available for hire, which may ultimately weaken the profitability
and employment situation for restaurants.

According to MaRa, the sector will grow rapidly in the coming years. A challenge
will be, however, difficulties with recruitment, which are already evident,
particularly in restaurants' seasonal needs. Through our subsidiary, Smile
Henkilöstöpalvelut Oy, we have the possibility to prepare for the changing
staffing needs of the different seasons and to react efficiently to changing
situations.

Smile Henkilöstöpalvelut continues to grow

The labour hire segment was successful in 2016 and turnover climbed to MEUR
34.1. Although growth was strong, the level of profitability remained good.
Compared to the previous financial period, turnover increased by over 41 per
cent, EBITDA by almost 60 per cent and operating profit by over 106 per cent. In
the final quarter of 2016, turnover increased by nearly 30 per cent from the
previous year, EBITDA by almost 189 per cent and operating profit by over 3,700
per cent. The segment's EBITDA percentage, which in 2016 was more than 10 per
cent, is quite good for the sector.

The successful acquisition of new customers and the positively growing business
of our customers have an impact on the segment's result for the review period.
Turnover continued to increase in the restaurant sector, and we significantly
strengthened our position in our new areas of industry, construction and health
care. The purchase of a majority holding in Ostrobothnia-headquartered Make My
Solutions Oy (MMS Henkilöstöpalvelut) in April 2016 also increased our volume.
During the third quarter of 2016, we also launched a system- and process
development project, the aim of which is to simplify and streamline the
company's operating practices.

The labour hire sector is a significant employer and an area of future growth.
According to the Confederation of Finnish Industries, in comparison with the
previous year, the total turnover of the labour hire sector increased in
November 2016 by 20.3 per cent, and the turnover of labour hire services by
20.2 per cent, over the previous year. The cumulative turnover for the period
January-November 2016 was more than MEUR 773, an increase of 14.4 per cent over
the previous year. Our development is proceeding in line with the favourable
prospects of the sector, although our growth is substantially stronger than the
average development for the sector.

Growth fuelled by stock exchange listing

During the 2016 financial period, our Group recorded turnover of MEUR 130, and
we maintained good profitability. We are well on our way to reaching the
turnover target of MEUR 180 set by our Board of Directors for the 2018 financial
period. In the future, we also intend to expand our restaurant business overseas
through corporate acquisitions and organically. At the same time we will
continue profitable growth in Finland in both business segments.

Although since our establishment the business of our Group has been growth-
oriented, our stock exchange listing in November 2013 was a significant
milestone. In the past three years, we have expanded into new market areas in
Finnish growth centres, and have created a diverse range of new restaurant
concepts in the areas of food, entertainment and nightlife. During this period,
our earnings per share have increased strongly, our share price has increased by
more than 50%, and our turnover has doubled from MEUR 65 to MEUR 130.

I believe strongly that the development of Group's turnover will continue to be
upbeat, general market development will strengthen and profitability will remain
on a good level in 2017.

Markku Virtanen, CEO

DIVIDEND

On 31 December 2016, Restamax Plc's distributable assets were EUR
53,026,343.97, of which the share from the profit for the financial period is
EUR 6,814,342.05. There have been no significant changes to the company's
financial situation since the end of the financial period.

Restamax Plc's Board of Directors proposes to the Annual General Meeting to be
held on 26 April 2017 that EUR 0.30 (EUR 0.27) per share, a total of EUR
4,985,886.00 (16,619,620 shares), be paid as dividend for the financial period
ended on 31 December 2016 based on the adopted balance sheet.

CASH FLOW, INVESTMENTS AND FINANCING

The Group's operating net cash flow in January-December 2016 was MEUR 13.5 (MEUR
12.4).

Growth investments made during the current review period include the purchase of
seven restaurants in Helsinki, Levi, Ruka and Pyhä, the opening of the Classic
American Diner restaurant in downtown Helsinki, the opening of Pizzeria Vuosseli
in Ruka and the opening of two Wayne's Coffee cafés in Helsinki.

The Group's interest-bearing net liabilities at the end of December 2016 were
MEUR 30.4 (MEUR 29.3). The net financial expenses in January-December 2016 were
EUR 952,800 (EUR 1,195,000). Equity ratio was 45.2 per cent (44.4 per cent) and
gearing ratio was 69.1 per cent (73.2 per cent).

RESTAMAX PLC'S FINANCIAL REPORTING IN 2017

Restamax Group's 2016 annual report will be published during week 14. The
interim reports for 2017 will be published as follows:

January-March on Tuesday 09/05/2017 at 8:00am
January-June on Tuesday 08/08/2017 at 8:00am
January-September on Tuesday 07/11/2017 at 8:00am

Restamax Plc's Annual General Meeting will be held in Tampere on Wednesday
26/04/2017. The invitation to the general meeting will be published during week
14.

The full Restamax interim report for January-December 2016 is appended to this
release in PDF format. The interim report is also available on the company's
website at www.restamax.fi.

Tampere 21/02/2017

RESTAMAX PLC

Board of Directors

APPENDIX: Restamax Plc Interim Report 2016

Additional information:
Markku Virtanen, CEO, tel. +358 400 836 477
Jarno Suominen, CFO, tel. +358 40 721 5655

Restamax Plc is a Finnish group established in 1996, specialising in restaurant
services and labour hire. The company, which listed on NASDAQ OMX Helsinki in
2013 and became the first Finnish listed restaurant company, has continued to
grow strongly throughout its history. The Group companies include some 120
restaurants, nightclubs and entertainment centres all over Finland. Well-known
restaurant concepts of the group include Stefan's Steakhouse, Viihdemaailma
Ilona, Classic American Diner and Colorado Bar & Grill. In 2016, Restamax Plc's
turnover was MEUR 130.1 and EBITDA MEUR 19.4. Depending on the season, some
1,100 persons converted into full-time employees work at the Group. The
workforce of Restamax subsidiary Smile Henkilöstöpalvelut Oy is about 4,500.

Restamax company website: www.restamax.fi, Restamax consumer website:
www.ravintola.fi, Smile Henkilöstöpalvelut: www.smilepalvelut.fi

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Attachments:

Restamax_Plc_Interim_Report_2016.pdf