EANS-News: Delticom AG: 2011 on track so far, Q4 off to a good start

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

9-month report

Hanover (euro adhoc) - 18 October 2011 - Delticom (German Securities
Code (WKN) 514680, ISIN DE0005146807, stock market symbol DEX),
Europe's leading online tyre dealer, has published preliminary
figures for the first nine months of the current year. In the first
nine months the company was able to increase its revenues by 15.8% to
EUR 297.7 million and the EBIT by 23.3% to EUR 28.2 million, despite
the strong prior-year base. The winter tyre season has started off
well.

Revenues

Good summer tyre sales and an early start in the winter tyre season
helped third quarter revenues to grow substantially year-on-year. It
shows that winter tyres are increasingly in demand, not only in the
countries where car drivers traditionally change over from summer to
winter tyres but also elsewhere in Europe.

In the third quarter, Delticom was able to generate revenues of EUR
99.4 million (Q310: EUR 79.7 million) - a plus of 24.7%, in spite of
the previous year's strong base. As a result, year-to-date revenues
amounted to EUR 297.7 million (9M10: EUR 257.0 million, +15.8%). Q3
revenues in the E-Commerce division were up year-on-year by 18.4% to
EUR 89.1 million (9M11: +14.0% to EUR 279.2 million). The quarterly
revenues of the Wholesale division grew by to EUR 10.3 million, after
prior-year revenues of EUR 4.4 million (9M11: EUR 18.5 million,
+53.2%).

Gross margin

In the reporting period the cost of goods sold totalled EUR 218.6
million period (9M10: EUR 187.3 million, +16.7%). EUR 73.7 million
were recognised in the third quarter (Q310: EUR 57.8 million,
+27.4%).

Initially, the summer tyre business had lagged behind expectations
until Q2. Starting from August, though, market-wide demand for summer
tyre sales strengthened. In the course of the third quarter winter
tyre sales stepped up noticeably. This presented Delticom with the
opportunity to grow volume with better prices. As a result, Q3 gross
margin (trade margin ex other operating expenses) was taken down from
previous quarter's 27.7% to 25.8%. Q3 gross margin was also lower
than in the prior-year period (Q310: 27.4%, -1.6%p). The main reason
for this development has been the strong ramp-up of inventories. This
year Delticom has enough stock to offer more tyres at better prices,
to win more customers.

For the full nine months the gross margin amounted to 26.6% or -0.6%p
year-on-year (9M10: 27.1%).

Personnel expenses

In the reporting period an average of 111 staff members were employed
at Delticom (9M10: 99). Personnel expenses for Q311 were EUR 1.7
million (Q310: EUR 1.6 million), for the nine months in total EUR 5.2
million (9M10: EUR 4.7 million). Compared to the prior-year period,
the personnel expenses ratio (staff expenditures as percentage of
revenues) for the reporting period came down slightly from 1.8% to
1.7%.

Other operating expenses

In Q311 other operating expenses totalled EUR 16.7 million, an
increase of 18.1% over the prior-year value of EUR 14.1 million.

Among the other operating expenses, transportation costs is the
largest line item. Tyres sold online are picked up at the delivery
points by parcel services which then transport the tyres to the
customers or service partners. In line with the higher volume in Q311
the quarterly transportation costs increased by 22.7%, from EUR 6.5
million to EUR 8.0 million. Due to higher selling prices the ratio of
transportation costs in relation to revenues came down slightly to
8.0% (Q310: 8.2%).

Marketing expenses in Q311 amounted to EUR 1.9 million after EUR 1.7
million in Q310, an increase of just 9.2%. As a result, marketing in
percent of revenues decreased substantially from 2.2% to 1.9%.

Depreciation

In line with the significant expansion of warehouse capacity and the
parallel investments into warehousing infrastructure, scheduled
depreciation for the past quarter rose by 82.2%, from EUR 0.3 million
in Q310 to EUR 0.6 million. For the nine months the total amount was
EUR 1.4 million (9M10: EUR 0.9 million, +51.1%). The low absolute
level of depreciation underlines the low capital intensity of
Delticom's business.

Earnings performance

Q311 Earnings before interest and taxes (EBIT) improved by 51.5% to
EUR 9.5 million (Q310: EUR 6.3 million). This translates into an EBIT
margin (EBIT in percent of revenues) of 9.5% (Q310: 7.9%). The EBIT
for the total nine months came in at EUR 28.2 million (9M10: EUR 22.9
million), a plus of 23.3% and an EBIT margin of 9.5% (9M10: 8.9%).

In line with the softer gross margin, however, the Q311 EBIT margin
adjusted for FX income and losses (8.5%) would have been lower than
in the prior-year period (Q310 adjusted: 9.7%). For the full nine
months the adjusted EBIT margin would have been 9.2% flat
year-on-year.

Inventories and liquidity position

Delticom opened a new large-scale warehouse in the second quarter.
Back by this additional capacity the inventory value moved up to EUR
122.9 million towards the end of the third quarter (30.09.2010: EUR
76.5 million, 31.12.2010: EUR 52.2 million). As a result the net
working capital increased to EUR 42.5 million (30.09.2010: EUR 25.8
million, 31.12.2010: EUR 1.8 million). In line with the higher stock
levels Delticom had to invest into additional racks, forklifts and
packaging machines. The investments into property, plant and
equipment were EUR 8.0 million year-to-date (9M10: EUR 1.9 million).

As of 30.09.2011 the cash and cash equivalents stood at EUR 11.7
million (30.09.2010: EUR 23.3 million, 31.12.2010: EUR 66.8 million).
The company´s net cash position amounted to EUR 1.8 million (cash
less interest-bearing liabilities, 9M10: EUR 24.3 million).

Rainer Binder (CEO): "We are pleased with the course of business so
far. Obviously last year's spectacular winter has raised the bar for
the closing quarter. Despite this, we want to beat last year's winter
tyre sales, even with less winterly weather conditions." Although the
market for winter tyres from certain brands and dimensions might
tighten yet again, prices and margins will most likely not rise as
much as last year.

Frank Schuhardt (CFO) adds: "For the remaining months we do not
target the extraordinarily high prior-year margins, but rather want
to gain additional market share. Assuming a normal course of business
our plan is unchanged: a revenue growth of 10%, at an EBIT margin of
around one percentage point lower than in 2010."

The full report for the first nine months of 2011 will be published
on 08 November 2011 within the "Investor Relations" section of the
website www.delti.com. ________________________________________

Company profile: Delticom, Europe's leading online tyre retailer, was
founded in Hanover in 1999. With more than 100 online shops in 40
countries, the company offers its private and business customers an
unequalled assortment of excellently priced car tyres, motorcycle
tyres, bicycle tyres, truck tyres, bus tyres, special tyres, rims,
complete wheels (pre-mounted tyres on rims), selected replacement car
parts and accessories, motor oil and batteries. The independent
website reifentest.com contains impartial information about tyre
tests and helps the customers choose from more than 100 tyre brands
and more than 25,000 tyre models. Delticom delivers either directly
to the customer's home address, or to one of more than 29,000 service
partners - affiliated garages which take delivery of tyres and then
install these on the customer's vehicle. Delticom's Wholesale
division also sells tyres to wholesalers domestically and abroad.

On the Internet at: www.delti.com

Selected online shops: www.reifendirekt.de, www.123pneus.fr,
www.mytyres.co.uk, www.reifendirekt.ch

Further inquiry note:
Delticom AG Investor Relations
Melanie Gereke
Brühlstraße 11
30169 Hannover
Tel.: +49 (0)511-936 34-8903
Fax: +49 (0)89-208081147
e-mail: melanie.gereke@delti.com

end of announcement euro adhoc
--------------------------------------------------------------------------------

company: Delticom AG
Brühlstraße 11
D-30169 Hannover
phone: +49 (0)511 93634 8903
FAX: +49 (0)511 336116 55
mail: info@delti.com
WWW: http://www.delti.com
sector: Electronic Commerce
ISIN: DE0005146807
indexes: SDAX, CDAX, Classic All Share, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Stuttgart, Düsseldorf, München
language: English