WULFF GROUP PLC’S ANNUAL ACCOUNTS FOR JANUARY 1 – DECEMBER 31, 2015

This is a summary of Wulff Group Plc’s annual accounts release for financial year January 1 – December 31, 2015.

Wulff Group’s annual accounts for January-December 2015 is a PDF file attachment to this stock exchange release and is available on the company’s website at the address http://www.wulff.fi/en/wulff+group+plc/home/.

WULFF GROUP: KEY POINTS JANUARY – DECEMBER 2015

  • In 2015, net sales totalled EUR 68.8 million (EUR 74.3 million). Net sales decreased by -7.3 percent (-11.1 %).
  • In 2015, EBITDA was EUR 2.0 million (EUR 2.1 million) being 2.9 percent (2.8 %) of net sales. In 2015, EBITDA included non-recurring write downs of inventories and fixed assets of EUR 0.2 million. In 2014, EBITDA included non-recurring income of EUR 1.4 million regarding sale of real estate and sale of subsidiary.
  • In 2015, EBITDA without non-recurring items was EUR 2.2 million (EUR 0.7 million) being 3.2 percent (1.0 %) of net sales.
  • In 2015, the operating result (EBIT) amounted to EUR 0.5 million (EUR 1.1 million). In 2015, EBIT included non-recurring items downs of EUR 1.0 million regarding goodwill impairment and inventory and fixed assets write downs. In 2014, EBIT included non-recurring income of EUR 1.4 million regarding sale of real estate and subsidiary.
  • In 2015, the operating result (EBIT) without non-recurring items amounted to EUR 1.5 million (EUR -0.3 million).
  • Earnings per share (EPS) was EUR -0.03 (EUR 0.11) in 2015. Earnings per share (EPS) without non-recurring items was EUR 0.16 (EUR -0.10) in 2015.
  • Topi Ruuska was appointed as the CEO of Wulff Group Plc starting 1st of September, 2015. Long-term CEO and board member Heikki Vienola continues developing the Group as a chairman of the Board of Directors.
  • Equity-to-assets ratio increased to 46.4 percent (31.12.2014: 39.5 %).
  • The Board of Directors proposes to the Annual General Meeting on April 7, 2016 that a dividend of EUR 0.10 per share will be paid.
  • Wulff estimates 2016 operating profit to be positive.
1-12/2015 1-12/2014 10-12/2015 12-12/2014
Net sales, EUR million 68.8 74.3 18.6 20.5
EBITDA, EUR million 2.0 2.1 0.8 2.1
EBITDA without non-recurring items, EUR million 2.2 0.7 0.8 0.7
Operating profit (EBIT), EUR million 0.5 1.1 0.5 1.8
Operating profit (EBIT) without non-recurring items, EUR million 1.5 -0.3 0.7 0.5
Profit before taxes, EUR million 0.4 0.5 0.6 1.5
Profit before taxes without non-recurring items, EUR million 1.4 -0.9 0.7 0.2
EPS, EUR 0,03 0,11 0,08 0,22
EPS without non-recurring items, EUR 0,16 -0,10 0,10 0,01

WULFF GROUP’S CEO TOPI RUUSKA

Wulff Group’s CEO Topi Ruuska:

We increased our profitability considerably in 2015. Group finances have developed due to improved operating efficiency and cost saving measures. Our most important goal is the continuous improvement of customer experiences and the ease of our customers’ everyday purchases with a more comprehensive service concept. The improvement of the service experience and customer profitability produced has been possible by intensifying cooperation between our purchase and sales operations.

Our strategy is to serve our customers using a multi-channel model. Our service channels include the non-exclusive webstore Wulff.fi, the Contract Customer model, a regional sales and service network and our stores. In an ever-changing operating environment the channels must be constantly improved and renewed. Digitalisation brings both possibilities and threats to the operating environment: this change inevitably also affects the office supplies industry.

The office supplies market has declined in recent years due to the general economic situation. Although a fast economical improvement is not to be expected, I trust that Wulff will be among future success stories because we strongly invest in development by also revising our own operations. The most significant on-going internal development project is the reform of our financial management services to make them more responsive and informative. This also further improves our reporting to our customers. We are ready to grow fast when the economy recovers: we have the industry’s best chance to do so thanks to our personnel that are knowledgeable, adaptable and development oriented and also due to our customers and partners that contribute to our development efforts.

KEY FIGURES

IV IV I-IV I-IV
EUR 1000 2015 2014 2015 2014
Net sales 18 585 20 471 68 820 74 262
Change in net sales, % -9,2 % -9,4 % -7,3 % -11,1 %
EBITDA 807 2 067 2 019 2 096
EBITDA margin, % 4,3 % 10,1 % 2,9 % 2,8 %
Operating profit/loss 521 1 831 505 1 109
Operating profit/loss margin, % 2,8 % 8,9 % 0,7 % 1,5 %
Profit/Loss before taxes 558 1 517 354 478
Profit/Loss before taxes margin, % 3,0 % 7,4 % 0,5 % 0,6 %
Net profit/loss for the period attributable to equity holders of the parent company 520 1 420 -195 696
Net profit/loss for the period, % 2,8 % 6,9 % -0,3 % 0,9 %
Earnings per share, EUR (diluted = non-diluted) 0,08 0,22 -0,03 0,11
Return on equity (ROE), % 4,3 % 12,5 % -1,6 % 4,4 %
Return on investment (ROI), % 3,4 % 7,5 % 2,7 % 3,5 %
Equity-to-assets ratio at the end of period, % 46,4 % 39,5 % 46,4 % 39,5 %
Debt-to-equity ratio at the end of period 23,8 % 36,9 % 23,8 % 36,9 %
Equity per share at the end of period, EUR * 1,84 1,95 1,84 1,95
Net cash flow from operating activities 1 965 2 483 1 693 -205
Investments in non-current assets 3 121 161 488
Investments in non-current assets, % of net sales 0,0 % 0,6 % 0,2 % 0,7 %
Treasury shares held by the Group at the end of period 79 000 79 000 79 000 79 000
Treasury shares, % of total share capital and votes 1,2 % 1,2 % 1,2 % 1,2 %
Number of total issued shares at the end of period 6 607 628 6 607 628 6 607 628 6 607 628
Personnel on average during the period 229 262 233 268
Personnel at the end of period 226 240 226 240

* 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 still affected by the organizations’ personnel lay-offs and cost-saving initiatives made during the economic downturn. The personnel lay-offs and cost-saving initiatives carried out in different organizations during the economic downturn affect the purchasing behaviour of our corporate customers. As economic uncertainty continues, the cost-saving measures continue to affect the purchasing behaviour of our corporate customers. The decreased amount of internationalization funding and the changes in the key for granting it by the Ministry of Employment and The Economy affect the companies’ chances to attend international fairs.

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 FINANCIAL YEAR

The Group sold a fleet of cars used by the personnel of Wulff Leasing Oy Finland’s subsidiaries and rented a fleet of cars with a service leasing agreement. The book value of the fleet of cars was EUR 0.3 million in December 31, 2015. The Group records a sales profit of EUR 0.1 million during the first half year period. The Group records the cars sold at a book value of EUR 0.3 million in assets held for sale in the balance sheet.

The Group has not had such events after the financial year which would have a material impact on 2015 financial statements.

BOARD OF DIRECTORS’ PROPOSAL FOR THE ANNUAL RESULT    

The Group’s parent company Wulff Group Plc’s distributable funds totalled EUR 3.1 million. The Group’s net result attributable to the parent company shareholders was EUR -0.2 million, i.e. EUR -0.03 per share (EUR 0.11 per share). The Board of Directors proposes to the Annual General Meeting to be held on April 7th, 2016 that a dividend of EUR 0.10 per share will be paid for the financial year 2015 that is EUR 0.65 million and the remaining distributable funds will be transferred in retained earnings in the shareholders’ equity.

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 suited to them. The markets have been consolidating in the past few years and the Nordic markets are expected to consolidate in the future as well. The Group is prepared to carry out new strategic acquisitions and as a listed company Wulff has a great opportunity to be a more active player than its competitors.

Wulff expects demand for office supplies not to increase rapidly in 2016. During these uncertain times it is important to continue considering our cost structure and improve operational efficiency. Wulff’s goal is to further improve the profitability of its business activities. Wulff estimates the operating profit (EBIT) for 2016 to be positive. It is typical of the business sector that the annual profit and cash flow accumulate in the last quarter of the year.

WULFF GROUP PLC’S FINANCIAL REPORTING AND ANNUAL GENERAL MEETING 2016

Wulff Group Plc will release the following financial reports in 2016:

Statutory Financial Statements 2015 Week 11/2016
Interim Report, January-March 2016 Friday May 6, 2016
Interim Report, January-June 2016 Thursday August 4, 2016
Interim Report, January-September 2016 Thursday November 3, 2016

Wulff Group Plc’s Annual General Meeting will be held on Thursday April 7, 2016. A separate notice to the Annual General Meeting will be published prior to the meeting.

In Vantaa on February 18, 2016

WULFF GROUP PLC

BOARD OF DIRECTORS

Further information:

Chairman of the Board of Directors Heikki Vienola

tel. +358 9 5259 0050 or mobile: +358 50 65 110

e-mail: heikki.vienola@wulff.fi

DISTRIBUTION

NASDAQ OMX Helsinki Oy

Key media

www.wulff-group.com

View release (PDF)