DGAP-Adhoc: ADC's 2012 results driven by consolidation of BancABC, increasing balance sheet to EUR 1.4 bn++ADC proposes capital increase to implement expansion plans++Strengthening of Supervisory Boar

ADC African Development Corporation GmbH & Co. KGaA / Key word(s): Final
Results/Corporate Action

20.06.2013 17:11

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

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ADC African Development Corporation GmbH & Co. KGaA (ADC), ISIN
DE000A1E8NW9, announces that the Supervisory Board approved the audited
financial statements with a final consolidated net loss for the 2012
financial year of EUR -10.3 million, compared to a net profit of EUR 8.7
million in 2011, significantly reducing the net loss of EUR -25.9 million
accrued for the first nine months of 2012. At year-end, ADC had assets
totaling EUR 1,414.1 million, up from EUR 103.0 million at the end of 2011
mainly due to the first time consolidation of BancABC.

The Annual Report 2012 and a results presentation will be made available on
ADC's website:
www.african-development.com/en/investor-relations/investor-information/fin
ancial-reports/.

In order to continue the group's growth and expansion into key markets in
sub-Saharan Africa, the Supervisory Board will put forward a decision to
the Annual General Meeting (AGM) on 14 August 2013 to approve a significant
capital increase of up to 43,033,820 new shares. Management and Supervisory
Board target a minimum price of EUR 11.00 per share.

In addition, the Supervisory Board will put forward a decision to the AGM
to increase the number of Supervisory Board members from three to six
people. The Supervisory Board nominates Arnold Ekpe, former CEO of Ecobank
Group, Verna Eggleston, of Bloomberg Philanthropies and Oltmann Siemens,
former representative of the World Bank Group in Europe for election in the
AGM.

The invitation to the Annual General Meeting will be made available on
ADC's website www.african-development.com/agm in due course.

--End of the ad-hoc announcement and explanations--

In order to accelerate ADC's planned expansion into selected additional
sub-Saharan African core markets and to strengthen its existing banking
operations, a significant capital increase of up to 43 million new shares
will be put forward for decision at the AGM. Management and Supervisory
Board target a minimum price of EUR 11.00 per share.

Dirk Harbecke, CEO of ADC, commented: 'ADC's vision is to strengthen its
existing banking operations and expand into further attractive banking
markets in the near future in order to establish a leading pan-African
banking group active in key markets over the next 3 years. To finance the
expansion and to become a top tier bank in terms of services and
profitability, minimum scale is necessary.'

In addition, the Supervisory Board will put forward the decision to the AGM
to increase the number of Supervisory Board members from three to six
people, to attract further highly skilled individuals to oversee the group
who bring with them a wide-ranging network and the capacity to form
committees in order to properly oversee a large banking balance sheet and
to further accelerate ADC's expansion.

The Supervisory Board nominates Arnold Ekpe, Verna Eggleston and Oltmann
Siemens for election as additional Supervisory Board members in the AGM.

Arnold Ekpe has over 30 years of banking experience and has held several
senior positions in African and international banks. He was CEO of the
Ecobank Group from 2005 to 2012 and previously from 1996 to 2001,
successfully building one of the leading pan-African banks during his time
in office. Prior to that, he played a leading role in building Citibank's
corporate finance business in Africa and was a Managing Director at United
Bank for Africa.

Verna Eggleston has worked for more than three decades in social
development in the USA and Africa. She was appointed twice as Commissioner
of Social Development in New York, managing a budget of USD 45 billion in
public funds. Verna Eggleston is currently researching and developing
philanthropic investments in Africa for Bloomberg Philanthropies at the
request of the founder, Michael Bloomberg.

Oltmann Siemens has been active in emerging markets since 1976, working as
a lawyer with DEG and continuing his career with the IFC from 1979. Mr.
Siemens was the World Bank Group Representative in Germany and Special
Representative of the IFC in Europe from 1997 - 2007 and has most recently
worked as General Counsel a.i. of the International Fund for Agricultural
Development (IFAD). He has worked in approximately 65 countries around the
world over the course of his career and is familiar with the development
and changes within the banking system in Africa.

Alastair Newton, Chairman of the Supervisory Board of ADC explained: 'We
are delighted that we have found strong partners and new potential
Supervisory Board members who share our belief that there is room for an
additional major force in pan-African banking and who stand ready to join
us on the next stages to the realization of this vision.'

Financial results:

Following ADC's strategic repositioning in March 2012, to focus on
establishing a pan-African banking group in sub-Saharan Africa, ADC
acquired a controlling stake in BancABC on 27 July 2012 and has since
consolidated BancABC into its financial statements. Due to the
consolidation of the bank, ADC's profit and loss accounts and balance sheet
grew significantly this year, thereby transforming it into a banking group.

Net interest income of EUR 29.9 million was realized in 2012, resulting in
a net interest margin of 6.7%. Net losses on financial instruments
designated at fair value came in at EUR -12.7 million in 2012 compared to a
gain of EUR 17.2 million in 2011 mainly due to the revaluation of BancABC
before consolidation (EUR -8.1 million) and of the former portfolio company
BANGE (EUR -7.3 million). Other non-interest income of EUR 22.4 million in
2012 (EUR 4.5 million in 2011) mainly consists of release of negative
goodwill of EUR 17.1 million relating to acquisition and first time
consolidation of BancABC. Total operating income came in at EUR 54.6
million in 2012 compared to EUR 22.2 million in 2011.

Operating expenses were EUR 58.5 million in 2012 compared to EUR 13.4
million in 2011 and reflect mainly the consolidation of BancABC's business.
However, due to the change of the organizational structure and the
transformation to a stock corporation, ADC had additional reorganization
expenses of EUR 4.3 million in 2012.

As a result, consolidated loss before tax came in at EUR -8.2 million
compared to a profit of EUR 8.7 million in 2011 with a net loss for the
year of EUR -10.3 million in 2012.

The group held EUR 183.2 million in cash and cash equivalents compared to
EUR 43.3 million at year-end 2011. Net loans and advances amounted to EUR
886.6 million at year-end 2012, which reflects an increase of 41% compared
to BancABC's standalone loan book of EUR 627.5 million in 2011. Investments
in associates amounted to EUR 54.1 million at balance sheet date compared
to EUR 49.2 million at year-end 2011. On 31 December 2012, the position
includes EUR 35.0 million relating to ADC's investment in Union Global
Partners Limited (UGPL) measured in accordance with the equity method
compared to a purchase price of EUR 23.8 million at the beginning of the
year. UGPL itself controls and fully consolidates Union Bank of Nigeria. In
2012, ADC had total assets of EUR 1,414.1 million versus EUR 103.0 million
at the end of 2011.

Deposits at balance sheet date came in at EUR 1,041.9 million a 37% growth
compared to BancABC's standalone deposits of EUR 761.4 million at the end
of 2011.

Total equity increased from EUR 88.3 million at year-end 2011 to EUR 154.6
million at the end of the 2012 fiscal year.

Dirk Harbecke, CEO of ADC, commented: 'The group achieved major milestones
in 2012 including the market entry into Nigeria as well as the takeover and
subsequent consolidation of BancABC. ADC laid important foundations to
achieve its strategic targets including a streamlining of its operations.
We are therefore convinced that the transformation was very positive for
our shareholders and ensures a solid foundation for achieving strong
profitability in the years to come.'

About ADC
ADC African Development Corporation (ADC) (ISIN: DE000A1E8NW9; Bloomberg:
AZC.GR, www.african-development.com), is a German listed, emerging
pan-African banking group. ADC has a strong footprint in Southern Africa
via BancABC, a regional commercial banking platform operating in Botswana,
Mozambique, Tanzania, Zambia and Zimbabwe as well as in West Africa via
Union Bank of Nigeria. Parallel to its banking operations, ADC has a
private equity portfolio active in growth markets across sub-Saharan
Africa. ADC follows an active management approach with a team of experts
that comprise operational banking management, investment banking and
merchant banking expertise. ADC optimizes its risk-return profile through a
political risk insurance solution offered by the MIGA (World Bank Group).

Contact:
Investor Relations
investor-relations@african-development.com
T +49 69 719 12 80 119

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Language: English
Company: ADC African Development Corporation GmbH & Co. KGaA
Grüneburgweg 18
60322 Frankfurt/Main
Germany
Phone: +49 69 719 12 80 119
Fax: +49 69 719 12 80 999
E-mail: info@african-development.com
Internet: www.african-development.com
ISIN: DE000A1E8NW9
WKN: A1E8NW
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf

End of Announcement DGAP News-Service

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