EANS-News: Delticom publishes preliminary figures for FY 2012

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Financial Figures/Balance Sheet

Hanover (euro adhoc) - 23 January 2013 - For Delticom (German
Securities Code (WKN) 514680, ISIN DE0005146807, stock market symbol
DEX), Europe's leading online tyre dealer, 2012 was a challenging
year. In a difficult market environment the company generated
revenues of EUR 456.4 million, according to today's preliminary
figures (2011: EUR 480.0 million). EBIT amounted to EUR 32.5 million
(2011: EUR 52.9 million). Earnings per share were EUR 1.86 (2011: EUR
3.04).

Q4 12: Successful quarter despite poor market conditions

During the first nine months of 2012 the European tyre trade showed
growing signs of a cyclical downturn. Weak tyre demand in the final
quarter confirmed the trend. As a result, industry experts indicate
that winter tyre sales disappointed in 2012, dropping below the
already weak 2011 levels.

This did not leave Delticom's Q4 12 business with commercial
customers unaffected. Both B2B sales in the E-Commerce division as
well as wholesale revenues shrunk double-digit. Total quarterly
revenues amounted to EUR 175.9 million (Q4 11: EUR 182.3 million,
-3.5 %). Due to robust sales to end-customers, divisional E-Commerce
revenues for Q4 12 stood at EUR 172.7 million, only slightly below
last year (Q4 11: EUR 176.5 million, -2.1 %).

In an environment characterised by mild winter conditions and
increasing competitive pressure, Delticom was yet again able to grow
its business with private end-customers (B2C). More than 80 % of the
revenues in the E-Commerce division came from B2C sales. The company
was therefore able to at least partially insulate itself from the
overall weak market conditions.

In order to increase volume Delticom had to offer more attractive
prices for its customers. According to the German tyre trade
association (BRV), selling prices for winter tyres had to be reduced
by a few percentage and thus forfeiting profits, as weak demand met
fully stocked warehouses. Consequently, Delticom's Q4 12 gross margin
(trade margin ex other operating expenses) of 25.0 % came in
significantly lower than in the prior-year period (Q4 11: 28.8 %).
This was compounded by the planned increase in fixed costs, resulting
in a Q4 12 EBIT margin of 8.5 % (Q4 11: 13.6 %).

Fiscal year 2012

Revenues

Across all divisions, Delticom was able to generate revenues of EUR
456.4 million, 4.9 % less than prior-year's EUR 480.0 million. Due to
the difficult market conditions, sales in the more cyclical business
segments decreased significantly. Wholesale revenues for 2012
collapsed by 38.6 % to EUR 15.0 million, after prior-year revenues of
EUR 24.4 million.

Also in the E-Commerce segment with commercial customers (B2B)
revenues came under significant pressure. Thanks to the stable sales
to our private end customers (B2C) the total sales in the E-Commerce
segment only came down by 3.1 % from EUR 455.6 million in 2011 to EUR
441.4 million. The divisional share of group revenues amounted to
96.7 %, compared to 94.9 % in the previous year.

First estimates of the BRV point to a 10,1 % decline in the German
tyre trade for 2012. Against this trend, Delticom was able to
increase sales in its core B2C E-Commerce business, helping the
company to outperform the general tyre market significantly.

Gross margin

The cost of goods sold decreased in the reporting period by 2.7 %,
from EUR 348.4 million in 2011 to EUR 338.9 million. Due to the
sluggish demand for summer and winter tyres in Europe, the full-year
gross margin came down from 27.4 % to 25.7 %.

Other operating income

Other operating profit decreased by -54.9 % to EUR 3.8 million (2011:
EUR 8.3 million). This was mainly due to lower exchange rate gains in
the order of EUR 1.6 million (2011: EUR 6.3 million). FX losses have
to be accounted for as line item in the other operating expenses. For
the period under review, the balance of FX income and losses totalled
EUR -2.2 million or -0.5 % of revenues. In 2011 the balance had been
EUR 0.5 million (0.1 % of revenues). Altogether, the gross profit
shrunk in the reporting period by 13.4 % year-on-year, from EUR 139.9
million to EUR 121.2 million.

Personnel expenses

In the reporting period on average 144 staff members were employed at
Delticom (2011: 116). The reason for this increase was the buildup of
qualified staff for our warehouse facility opened in 2011. Personnel
expenses amounted to EUR 8.8 million (previous year: EUR 7.2
million). This equates to a personnel expenses ratio (staff
expenditures as percentage of revenues) of 1.9 % (2011: 1.5 %).

Other operating expenses

Overall the other operating expenses for the past financial year
totalled EUR 77.2 million, a decrease of 0.6 % over the prior-year
value of EUR 77.7 million.

Among the other operating expenses, transportation costs is the
largest line item. It registered a slight step-up by 2.0 %, from EUR
37.4 million to EUR 38.2 million. The share of transportation costs
against revenues went up from 7.8 % in 2011 to 8.4 % in 2012.

Due to the expansion of warehouse capacity, rents and overheads
increased by 25.8 %, from EUR 4.9 million to EUR 6.2 million.
Stocking costs came in at EUR 3.6 million, 30.0 % lower than
prior-year's EUR 5.1 million. This was mainly due to taking qualified
temporary workers on the payroll.

According to marketing plans, Delticom spent in Q4 12 with 2.6 % of
revenues slightly more on customer acquisition than in the previous
year (Q4 11: 2.3 %). For the reporting period as a whole, advertising
costs totalled EUR 11.3 million. This equates to a ratio of marketing
expenses to revenues of 2.5 % (2011: EUR 10.0 million or 2.1 %).

Depreciation

In line with our gradual warehouse capacity expansion and the
parallel investments into warehousing infrastructure, depreciation
rose by 28.0 % from EUR 2.1 million in 2011 to EUR 2.7 million. The
low absolute level of depreciation underlines the low capital
intensity of Delticom's business.

Earnings performance

For 2012 Delticom was able to achieve an EBIT of EUR 32.5 million.
The drop of 38.6 % from previous year's EUR 52.9 million was
primarily due to a lower gross margin, higher fixed costs and
negative FX effects. The EBIT margin was 7.1 % (2011: 11.0 %).

Financial income for the reporting period amounted to EUR 45 thousand
(2011: EUR 128 thousand). On the back of higher funding needs for
inventories financial expenses increased to EUR 182 thousand (2011:
EUR 127 thousand), leading to a financial result of EUR -137 thousand
(2011: EUR 0 thousand).

The expenditure for income taxes was EUR 10.3 million (previous year:
EUR 16.9 million). The tax rate was 31.8 % (2011: 32.0 %).
Consolidated net income for 2012 decreased from EUR 36.0 million to
EUR 22.1 million. This corresponds to earnings per share (EPS) of EUR
1.86 (undiluted, 2011: EUR 3.04).

Working capital

Among the current assets, inventories is the biggest line item. Stock
value at year end amounted to EUR 74.1 million or 47.4 % of assets
(31.12.2011: EUR 106.5 million, 64.0 %). Over the course of the year
inventories have therefore been reduced down by EUR 32.4 million. In
the corresponding prior-year period the inventory value had increased
by EUR 54.3 million. The company is well positioned for the upcoming
summer business.

Accounts payable increased from EUR 68.2 million by EUR 6.6 million
or 9.6 % to EUR 74.8 million (31.12.2011: EUR 68.2 million). Taken
together with accounts receivable of EUR 9.6 million (31.12.2011: EUR
10.1 million), the net working capital on 31.12.2012 amounted to EUR
3.2 million (31.12.2011: EUR 44.4 million).

Cash flow and liquidity position

Due to the favourable working capital development, the 2012 cash flow
from ordinary business activities (operating cash flow) of EUR 62.2
million was significantly better than in the comparison period (2011:
EUR -9.6 million).

The majority of racks, forklifts and packaging machines for the new
warehouse were purchased in 2011. Last year's investments into
property, plant and equipment have therefore been only EUR 1.1
million (2011: EUR 8.5 million).

In the reporting period, Delticom recorded a cash flow from financing
activities amounting to EUR -37.1 million, thereof the dividend
payout for the last financial year of EUR -34.9 million and
disbursements due to redemption of loans of EUR -0.9 million. The
balance of utilisation and redemption of short-term credit lines was
EUR -1.2 million.

Liquidity (cash and cash equivalents plus liquidity reserve) as of
31.12.2012 totalled EUR 46.2 million (31.12.2011: EUR 22.2 million).
The company's net cash position (liquidity less liabilities from
current accounts) amounted to EUR 43.9 million (31.12.2011: EUR 17.8
million).

Outlook

Consensus among economists sees the economic headwinds in the
Eurozone to persist in 2013. Increasing unemployment figures as well
as the uncertainty stemming from the European debt crises should
continue to burden European consumer sentiment.

Experts from the tyre industry are in disagreement as to whether the
European replacement tyre dealers are able to show growth in the
coming months, and if yes to which extent. At this point in time,
Delticom does not have enough visibility to supply a reliable
quantitative guidance for the sales and earnings development for the
full year 2013.

Independent of those short-term developments, the share of online
sales in the tyre market continues to be comparatively low. More and
more drivers are turning to the Internet in search of lower-priced
alternatives. Delticom as the leading online tyre dealer will be able
to capitalise on this trend.

The full report for the fiscal year 2012 will be published on 21
March 2013 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 42 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 34,000 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
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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: free trade: Berlin, München, Düsseldorf, Stuttgart, regulated
dealing/prime standard: Frankfurt
language: English