Restamax Oyj - Financial Statement Release

RESTAMAX PLC INTERIM REPORT FOR 1 JANUARY-31 DECEMBER 2017: Turnover increased by almost 43% and profitability remained at a good level

Restamax Plc

INTERIM REPORT 20 February 2018 at 8:00 a.m.

RESTAMAX PLC INTERIM REPORT FOR 1 JANUARY-31 DECEMBER 2017:
Turnover increased by almost 43% and profitability remained at a good level

TURNOVER AND INCOME

The Group's result for October-December 2017

Entire Group:

The Group's turnover was MEUR 54.4 (MEUR 34.4), growth of 58.3 per cent. EBITDA
was MEUR 7.7 (MEUR 5.9), growth of 30.4 per cent. Operating profit was MEUR 4.3
(MEUR 3.5), growth of 23.1 per cent.

Restaurant business:

The turnover of the restaurant business segment was MEUR 34.4 (MEUR 28.5),
growth of 20.7 per cent. EBITDA was MEUR 5.9 (MEUR 5.1), growth of 15.3 per
cent. Operating profit was MEUR 3.5 (MEUR 3.0), growth of 19.1 per cent.

Labour hire business:

The turnover of the labour hire business segment was MEUR 23.4 (MEUR 8.6),
growth of 171.5 per cent. EBITDA was MEUR 1.9 (MEUR 1.0), growth of 96.5 per
cent. Operating profit was MEUR 0.8 (MEUR 0.5), growth of 44.7 per cent.

The Group's result for January-December 2017

Entire Group:

The Group's turnover was MEUR 185.9 (MEUR 130.1), growth of 42.9 per cent.
EBITDA was MEUR 22.4 (MEUR 19.4), growth of 15.5 per cent. Operating profit was
MEUR 10.8 (MEUR 9.0), growth of 19.7 per cent.

Restaurant business:

The turnover of the restaurant business segment was MEUR 122.2 (MEUR 107.5),
growth of 13.6 per cent. EBITDA was MEUR 16.3 (MEUR 16.5), decrease of 0.9 per
cent. Operating profit was MEUR 6.9 (MEUR 7.4), decrease of 6.5 per cent.

Labour hire business:

The turnover of the labour hire business segment was MEUR 75.6 (MEUR 34.1),
growth of 121.5 per cent. EBITDA was MEUR 6.6 (MEUR 3.4), growth of 91.9 per
cent. Operating profit was MEUR 3.8 (MEUR 1.6), growth of 140.1 per cent.

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

Restamax Plc's result for January-December 2017 was clearly better than the
previous year, as had been expected. The turnover of the entire Group increased
by 42.9 per cent from last year, EBITDA by 15.5 per cent and operating profit by
19.7 per cent.

Abnormally cold and rainy weather in the summer put a strain on the Group's
restaurant business in the second and third quarter of the year, affecting the
result and relative profitability of the 2017 financial period of the entire
Group. The growth rate of business operations accelerated towards the end of the
year, and with a successful Christmas party season the Group's October-December
2017 result was rather good.

The turnover increased due to acquisitions, and especially in the last part of
the year, the increased focus and investments in sales and marketing. The whole
Group EBITDA and EBIT increased compared to last year in the last quarter.

Job Services One Oy (currently Smile Job Services Oy), which was acquired to the
labour hire business, executed a stronger than expected result. This increased
the purchase price of the company through the earn-out mechanism, leading to a
significant non-recurring item of MEUR 1.7 in the financial expenses. EBITDA for
the labour hire segment also includes capital transfer taxes of EUR 300,000 as
non-recurring costs related to the acquisition of the businesses.

In terms of the level of profitability, Restamax's restaurant business and
labour hire business are at the spearhead of their sectors. The relative
profitability of the labor hire business is slightly lower than the restaurant
business. As the labour hire business is growing relatively faster than the
restaurant business, the overall group relative profitability is influenced due
to this change.

Especially in the restaurant business, most of the profits are made in the
second half of the year due to the seasonal nature of the business.

PROSPECTS FOR 2018

Profit guidance (as of 20 February 2018):

In accordance with its strategy, Restamax expects the Group's turnover to
increase and profitability to remain on a good level in both segments in the
2018 financial year. The restaurant segment is expected to reach a turnover of
approximately MEUR 140 and in labour hire a turnover of approximately MEUR 110
is expected, the total turnover being some MEUR 240 after eliminations.

Restamax's goal is to reach a turnover of approximately MEUR 400 by the end of
2020 after internal eliminations. The goal of the restaurant segment is to reach
a turnover of approximately MEUR 200, and the goal of the labour hire segment is
to reach a turnover of approximately MEUR 220 by the end of 2020.

KEY FIGURES

+------------------------------------+----------+----------+---------+---------+
|Restamax Group in total             |          |          |         |         |
+------------------------------------+----------+----------+---------+---------+
|(EUR thousand)                      |10-12/2017|10-12/2016|1-12/2017|1-12/2016|
+------------------------------------+----------+----------+---------+---------+
|KEY FIGURES, entire Group                      |          |         |         |
+------------------------------------+----------+----------+---------+---------+
|Turnover                            |    54,391|    34,355|  185,856|  130,072|
+------------------------------------+----------+----------+---------+---------+
|EBITDA                              |     7,748|     5,940|   22,404|   19,399|
+------------------------------------+----------+----------+---------+---------+
|EBITDA, %                           |     14.2%|     17.3%|    12.1%|    14.9%|
+------------------------------------+----------+----------+---------+---------+
|Operating profit                    |     4,334|     3,522|   10,767|    8,998|
+------------------------------------+----------+----------+---------+---------+
|Operating profit, %                 |      8.0%|     10.3%|     5.8%|     6.9%|
+------------------------------------+----------+----------+---------+---------+
|Review period result                |     1,485|     2,621|    5,492|    5,864|
+------------------------------------+----------+----------+---------+---------+
|To shareholders of the parent       |     1,635|     2,485|    5,058|    5,608|
|company                             |          |          |         |         |
+------------------------------------+----------+----------+---------+---------+
|To minority shareholders            |      -150|       137|      434|      256|
+------------------------------------+----------+----------+---------+---------+
|Earnings per share (euros) to the   |      0.10|      0.15|     0.30|     0.35|
|shareholders of the parent company  |          |          |         |         |
+------------------------------------+----------+----------+---------+---------+
|Interest-bearing net liabilities    |          |          |   43,649|   30,377|
+------------------------------------+----------+----------+---------+---------+
|Gearing ratio, %                    |          |          |    93.1%|    69.1%|
+------------------------------------+----------+----------+---------+---------+
|Equity ratio, %                     |          |          |    35.3%|    45.2%|
+------------------------------------+----------+----------+---------+---------+
|Return on investment, % (p.a.)      |          |          |    10.7%|    11.9%|
+------------------------------------+----------+----------+---------+---------+
|Net financial expenses              |          |          |    2,810|      953|
+------------------------------------+----------+----------+---------+---------+
|                                    |          |          |         |         |
+------------------------------------+----------+----------+---------+---------+
|Restaurant business                 |          |          |         |         |
+------------------------------------+----------+----------+---------+---------+
|(EUR thousand)                      |10-12/2017|10-12/2016|1-12/2017|1-12/2016|
+------------------------------------+----------+----------+---------+---------+
|Turnover                            |    34,378|    28,474|  122,174|  107,544|
+------------------------------------+----------+----------+---------+---------+
|EBITDA                              |     5,918|     5,131|   16,325|   16,475|
+------------------------------------+----------+----------+---------+---------+
|EBITDA, %                           |     17.2%|     18.0%|    13.4%|    15.3%|
+------------------------------------+----------+----------+---------+---------+
|Operating profit                    |     3,548|     2,980|    6,920|    7,401|
+------------------------------------+----------+----------+---------+---------+
|Operating profit, %                 |     10.3%|     10.5%|     5.7%|     6.9%|
+------------------------------------+----------+----------+---------+---------+
|                                    |          |          |         |         |
+------------------------------------+----------+----------+---------+---------+
|KEY FIGURES                         |          |          |         |         |
+------------------------------------+----------+----------+---------+---------+
|Material margin, %                  |     76.0%|     76.9%|    74.1%|    74.6%|
+------------------------------------+----------+----------+---------+---------+
|Staff expenses, %                   |     27.8%|     27.9%|    28.0%|    28.1%|
+------------------------------------+----------+----------+---------+---------+
|                                    |          |          |         |         |
+------------------------------------+----------+----------+---------+---------+
|Labour hire business                |          |          |         |         |
+------------------------------------+----------+----------+---------+---------+
|(EUR thousand)                      |10-12/2017|10-12/2016|1-12/2017|1-12/2016|
+------------------------------------+----------+----------+---------+---------+
|Turnover                            |    23,384|     8,614|   75,612|   34,129|
+------------------------------------+----------+----------+---------+---------+
|EBITDA                              |     1,940|       988|    6,603|    3,441|
+------------------------------------+----------+----------+---------+---------+
|EBITDA, %                           |      8.3%|     11.5%|     8.7%|    10.1%|
+------------------------------------+----------+----------+---------+---------+
|Operating profit                    |       785|       543|    3,834|    1,597|
+------------------------------------+----------+----------+---------+---------+
|Operating profit, %                 |      3.4%|      6.3%|     5.1%|     4.7%|
+------------------------------------+----------+----------+---------+---------+
|                                    |          |          |         |         |
+------------------------------------+----------+----------+---------+---------+
|KEY FIGURES                         |          |          |         |         |
+------------------------------------+----------+----------+---------+---------+
|Staff expenses, %                   |    84.4 %|    83.9 %|   83.7 %|   85.5 %|
+------------------------------------+----------+----------+---------+---------+

CEO JUHA HELMINEN

A record year for growth

We have a strong year of growth behind us. During January-December 2017, the
turnover of our Group increased by almost 43 per cent, EBITDA by 15.5 per cent
and operating profit by almost 20 per cent in comparison with the previous
financial period. Once again we reached our long-term strategic goals and,
during 2017 we already exceeded the turnover target of MEUR 180 that we set for
2018.

In 2017, we served up to 7 million customers and our restaurant portfolio grew
from 110 to more than 130 restaurants. Although the second and third quarters of
2017 were challenging, which affected our EBITDA and EBIT margins, we were able
to keep our key efficiency figures, such as our staff expenses and material
margin, at a good level.

The final quarter of the year was quite successful and culminated in the
busiest-ever Christmas party season. In October-December, we opened more than
10 new restaurants and, despite their opening costs, we succeeded in catching up
with the results of the second and third quarters that were influenced by poor
summer weather. We continued to strengthen our position in our familiar market
areas, and opened restaurants in new cities, Vaasa and Rovaniemi. Increased
focus and additional investment in sales, marketing and streamlining operating
practices improved customer flow and increased average purchase. Smile
Henkilöstöpalvelut Oy's rate of growth accelerated as a result of corporate
acquisitions, and the company became a leading player in the field.

A busy Christmas party season creates confidence in the recovery of the
restaurant industry

Although chilly summer weather halted the growth of restaurants seen early in
the year, the situation brightened up towards the end of the year - the
Christmas party season was the best for years for the whole restaurant industry.
According to the Finnish Hospitality Association (MaRa), in the period January-
November 2017 the turnover of the tourism and restaurant industries increased by
5.5 per cent. The economy strengthened during the autumn and, according to
forecasts, the growth in Finnish GDP was about 3.2 per cent in 2017. Consumer
confidence also strengthened towards the end of the year and, in January 2018,
rose to the highest in its history.

The reform of the Alcohol Act, which partially entered into force in January
2018, is a much-needed boost for the industry, and will allow happy hour
marketing, among other things. The Act, which will be fully implemented at the
beginning of March 2018, will also make extended opening hours possible. We will
utilize the reform in our operations, and we believe that it will both
strengthen customer flows and increase the average size of customer purchases.
The reform will also play a significant role both in our own restaurant
operations and in the development of the whole sector.

Smile Henkilöstöpalvelut one of the major players in the sector

2017 was also a record year for our labour hire business. The turnover of Smile
Henkilöstöpalvelut increased over 121 per cent from the previous year, EBITDA by
almost 92 per cent and operating profit by 140 per cent. The growth in customer
purchases has been positive, and the acquisition of new customers successful.
The corporate acquisitions of Banssi Henkilöstöpalvelut, Job Services One and
Active People carried out during the year spurred on the company's growth, which
is clearly faster than that of the market. The growth of Job Services One,
currently operating under the name of Smile Job Services Oy, clearly exceeded
our expectations, and its positive result is booked as a non-recurring earn-out
item of MEUR 1.7 in the financial expenses of the segment's review period.
Capital transfer taxes resulting from corporate acquisitions (EUR 300,000) also
affected the result. By the end of 2020, Smile will be targeting a turnover of
MEUR 220.

During 2017, Smile strengthened its position particularly in the construction,
industrial and logistics sectors. Smile's organic growth has been supported by
strong investment in marketing and brand work. Implementing a new IT system and
the integration of acquired companies into the business will be completed early
in 2018, as a result of which operations will be harmonised and made more
efficient than ever. At the end of 2017, Smile also established Smile Education
Oy, which provides training services, in particular focusing on producing
training and recruitment services for graduating students with the aim of
improving the availability of manpower for customers. During 2018, Smile will
invest in its corporate management culture, organisational expertise and the
development of new digital services.

As a result of an increase in demand for financial and labour hire services, the
market looks very positive. In 2017, labour hire was Finland's strongest growing
sector - the number of employees increased by more than 10 per cent over the
previous year. In January-November 2017, the labour hire sector in Finland
achieved a turnover of MEUR 1,163.6, 18 per cent up on the previous year, and
turnover in labour hire services climbed to more than MEUR 978.5, an increase of
23 per cent over the previous year.

Expanding beyond Finland and new targets

In 2017, we enjoyed the strong confidence of investors and the market. The
development of our share price was stronger than ever before, rising from the
year end 2016 level of approximately EUR 6 to above EUR 8. Kauppalehti ranked
Restamax as the 14th most profitable listed company, based on its gross yield of
49.1 per cent.

During 2018, we will expand our restaurant business abroad. Our main focus area
will be Northern Europe where the restaurant market is fragmented, we see
enormous potential in it. There are three models for our expansion: corporate
acquisitions, exporting our own concepts and a hybrid of the two. We are
currently in active negotiations in several countries outside the borders of
Finland.

At the end of 2017, we published new long-term financial goals and strategy. Our
goal is to reach a turnover of approximately MEUR 400 by the end of 2020. Active
work to reach these goals has begun. In January 2018, we announced that we would
be revamping our organisation and management. We will invest more strongly in
the management of business units, the boosting of acquisitions and in the
satisfaction of our customers and staff. We will, for example, expand the
opportunities for training provided by Restamax Academy for our staff. Sales,
marketing and market knowledge will be given increasing value in our operations,
and for this we will strengthen our Executive Team during the spring with a
Chief Commercial Officer (CCO).

Juha Helminen, CEO

DIVIDEND

Restamax Plc's distributable assets on 31 December 2017 were EUR 54,569,557.59,
EUR 6,529,099.62 of which was the share of profit for the financial period.
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 25 April 2018 that EUR 0.33 (0.30) per share, a total of EUR
5,484,474.60 (16,619,620 shares), be paid as dividend for the financial period
ended on 31 December 2017 based on the adopted balance sheet.

CASH FLOW, INVESTMENTS AND FINANCING

The Group's operating net cash flow in January-December 2017 was MEUR 17.8 (MEUR
13.5).

Growth-related investments made during the review period included the openings
of Guru's Kitchen & Bar, Colorado Bar & Grill, the Purpur restaurant and
Pyynikki Brewhouse in Tampere, Stefan's Steakhouse and the Teatro nightclub in
Vaasa, Classic American Diner and Wayne's Coffee in Helsinki, the Colorado
Express and Villisika restaurants in Ruka, Stefan's Steakhouse in Levi, Classic
American Diner in Rovaniemi, the Hunaja nightclub in Lappeenranta, and the
acquisition by Smile Henkilöstöpalvelut of the restaurant labour hire business
of Active People Oy.

The Group's interest-bearing net liabilities at the end of December were MEUR
43.7 (MEUR 30.4). The net financial expenses in January-December were MEUR 2.8
(EUR 952,800). Equity ratio was 35.3 per cent (45.2 per cent) and gearing ratio
was 93.1 per cent (69.1 per cent).

RESTAMAX PLC'S FINANCIAL REPORTING IN 2018

Restamax Group's 2017 annual report will be published during week 13. The
interim reports for 2018 will be published as follows:

January-March on Tuesday 8/5/2018 8:00 am
January-June on Tuesday 7/8/2018 8:00 am
January-September on Tuesday 6/11/2018 at 8:00 am

Restamax Plc's Annual General Meeting will be held in Tampere on Wednesday
25/04/2018. The invitation to the general meeting will be published during week
13.

The full Restamax interim report for January-December 2017 is appended to this
release in PDF format. The interim report is also available on the company's
website at www.restamax.fi.

RESTAMAX PLC

Board of Directors

APPENDIX: Restamax Plc Interim Report 2017

Additional information:
Juha Helminen, CEO, Restamax Plc, tel. +358 40 535 5560
Jarno Suominen, CFO, Restamax Plc, tel. +358 40 721 5655

Distribution:
NASDAQ Helsinki
Major media
www.restamax.fi

Restamax Plc is a Finnish group established in 1996, specialising in restaurant
services and labour hire. The company, which was listed on NASDAQ Helsinki in
2013 and became the first Finnish listed restaurant company, has continued to
grow strongly throughout its history. The Group companies include more than 130
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 2017, Restamax Plc's
turnover was MEUR 185.9 and EBITDA MEUR 22.4. Depending on the season, the Group
employs some 2,250 persons, converted into full-time employees. Restamax
subsidiary Smile Henkilöstöpalvelut Oy employs approximately 9,000 people on a
monthly basis.

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_2017.pdf