DGAP-Adhoc: Asian Bamboo announces FY 2012 results

Asian Bamboo AG / Key word(s): Final Results/Forecast

30.04.2013 06:41

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Hamburg, 30 April 2013 - Asian Bamboo AG ('Asian Bamboo', 'the Company',
ISIN: DE000A0M6M79, ticker symbol: '5AB', ADR ticker symbol 'ASIBY'), an
integrated company in the bamboo industry, regrets that the conditions for
running an agriculture business in Fujian province were far from ideal in
FY 2012. During the year the Company was hit by a string of unfortunate
events, including weather and harvesting related issues, low production
volumes of bamboo fibre and an overall weak macro-economic environment.
Consequently, revenue per hectare fell, while plantation costs, such as
cultivation costs and amortisation, increased due to a larger plantation
size. The negative operating performance led to a decrease in the value of
biological assets of EUR 19.1 million on the balance sheet and a very
significant loss in the fair value less estimated costs to sell of
biological assets ('FVBA') of EUR 56.8 million in the P&L, which led to a
net loss of EUR 19.8 million.

However, most importantly, the Company generated positive operating cash
flows of EUR 17.6 million and maintained a healthy financial structure. The
Management Board is pleased that the Company's business model has proved to
be resilient in these very challenging circumstances.

The results for FY 2012, which are below the previously stated guidance in
terms of revenue and significantly above in terms of operating cash flow,
were as follows (percentage numbers are year-on-year comparisons):

* Revenue decreased 19% to EUR 72.9 million (2011: EUR 89.8 million)
* Loss in FVBA of EUR 56.8 million (2011: EUR 18.9 million)
* Negative gross profit, including FVBA-changes, of EUR 10 million (2011:
Positive gross profit of EUR 26.2 million)
* Net loss of EUR 19.8 million (2011: Net profit of EUR 16.2 million)
* Operating cash flow decreased 37% to EUR 17.6 million (2011: EUR 27.9
million)

The Company's balance sheet remains strong (year-end numbers):

* Biological assets were EUR 83.9 million (2011: EUR 103 million)
* Lease prepayments were EUR 193.4 million (2011: EUR 208.8 million)
* Cash and cash equivalents were EUR 38.6 million (2011: EUR 42 million).
* Total assets were EUR 348.4 million (2011: EUR 391.8 million)
* Total bank borrowings were EUR 46.5 million (2011: EUR 14 million)
* Total equity was EUR 288 million (2011: EUR 315.9 million)
* Total liabilities and equity were EUR 348.4 million (2011: EUR 391.8
million)

Business outlook and guidance for FY 2013

Recent economic data suggest that the Chinese and world economies are
beginning to stabilise. However, they are unlikely to return to the same
growth levels as in the past decade due to the structural change that the
Chinese economy is going through, while at the same time government
spending will have to decrease and overall debt-levels will have to be
reduced in many more mature economies.

Due to the adverse impact of weather and problems recruiting enough farm
labour, the Management Board expects to achieve revenues of at least EUR 50
million. Due to the low expected revenue, the Management Board decided not
to conduct any reclamation work this year, which will reduce the yearly
costs in FY 2013 by around EUR 20 million compared to FY 2012. Furthermore,
the Management Board believes that the Company will achieve close to
positive operating cash flows and that the Company will record a net loss
of around EUR 13 million. The difference between the expected net loss and
the close to positive operating cash flows is largely made up by the
amortisation charges, which are non-cash items, of around EUR 10 million.
FVBA, which is another non-cash item, may have an impact on the earnings,
but the Management Board deems it impossible to forecast that impact.

In FY 2013, the Company plans to make the final payment on the existing
plantation leases of EUR 9.9 million. There are no major investments
planned for 2013 and beyond for the time being.

The Management Board and Supervisory Board will not propose a dividend for
FY 2012. However both the Management Board and Supervisory Board intend to
resume dividend payments once the Company's operational and financial
performances improve.

For enquiries, please contact:

Asian Bamboo AG:

Peter Sjovall +852-9385 3868
Chief Financial Officer peter.sjovall@asian-bamboo.com

Anja Holst +49-(0)40 37644 798
Investor Relations Director anja.holst@asian-bamboo.com

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Language: English
Company: Asian Bamboo AG
Stadthausbrücke 1-3
20355 Hamburg
Germany
Phone: +49 40 37644 798
Fax: +49 40 37644 500
E-mail: info@asian-bamboo.de
Internet: www.asian-bamboo.de
ISIN: DE000A0M6M79, DE000A0M6M79
WKN: A0M6M7, A0M6M7
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Stuttgart

End of Announcement DGAP News-Service

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