EANS-News: Wolford AG / Turnaround in 2014/15 financial year

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annual result

- Revenues rise by approx. 1% - Positive operating results and net
earnings for the first time after two years - Special dividend of
EUR 0.20 per share proposed - Transformation process continues - Goal
for 2015/16: further revenue growth and positive operating results

Vienna/Bregenz, July 17, 2015:Wolford AG, which is listed on the
Vienna Stock Exchange, closed the 2014/15 financial year (May 2014 to
April 2015), as expected, with positive results. Revenues recorded by
the Wolford Group rose by roughly 1% to EUR 157.35 million, recently
also supported by positive foreign exchange effects. In addition, the
company recorded a profit for the first time after two loss-making
years: EBITDA, adjusted for non-recurring income and expenses, rose
from EUR 7.11 million to EUR 10.33 million and adjusted EBIT improved
from EUR -0.97 million to EUR 1.56 million. Including non-recurring
items, EBIT increased by EUR 6.89 million to EUR 2.17 million
(2013/14: EUR - 4.72 million). Earnings after tax were also positive
at EUR 1.03 million, compared with a loss of EUR 2.81 million in the
previous year.

"Wolford's transformation process is continuing, but our strategy to
refocus on the company's core expertise and the systematic
optimization of our own points of sale have brought the first
positive results", indicated Ashish Sensarma, Chief Executive Officer
since January 2015. "During the past financial year Wolford has
created an important foundation for sustainable and profitable
growth", added Sensarma.

Slight growth in retail, successful online business, decline in
wholesale

The slight 1% increase in revenues was generated in spite of the EUR
6.14 million negative effect caused by the closing of 20 unprofitable
points of sale during 2013/14 and 2014/15. Declines during the first
half-year (May to October 2014) due to difficult market conditions
were followed by the stabilization of revenues at the prior year
level in the third quarter. The fourth quarter (February to April
2015) brought a sound 12% increase in revenues, which was also
supported by positive foreign exchange effects from the devaluation
of the euro and by an increased focus on the optimization of
company-owned points of sale and the online business.

Wolford's own retail locations (own boutiques, concession
shop-in-shops and factory outlets) recorded revenue growth of 1% in
total and on a like-for-like basis. The online business continued its
successful development with an increase of 24% in revenues. The
wholesale business (partner-operated boutiques, department stores and
multi-brand retailers) declined by 2%, among others due to problems
with individual trading partners and the Ukraine crisis. However,
this sales channel also stabilized during the fourth quarter after
recording a minus of 8% for the first half-year.

Substantially different developments in the regional Business

The regional analysis of revenues for the reporting year shows very
different developments. The USA, currently the largest single market
for the Wolford Group, generated revenue growth of 5% despite the
closing of various retail locations. Revenues were lower than the
previous year in Germany (-2%) and France (-3%) due to weakness in
the wholesale business. Business in Austria (- 7%) was negatively
influenced by the closing of points of sale. In Switzerland, the
revaluation of the Swiss franc led to a decline of 9% in revenues. In
contrast, Wolford recorded sound top-line growth in Great Britain
(+7%), Spain (+11%) and Italy (+9%) which was supported, above all,
by the Wolford-owned points of sale. Revenues in Central and Eastern
Europe fell by 14%, in particular due to the Ukraine crisis. In Asia,
Wolford recorded a sound 20% increase in revenues.

Positive earnings, special dividend planned

The refocusing of the collection led to an increase of EUR 4.72
million in the cost of materials to EUR 30.33 million in 2014/15.
Personnel expenses were EUR 2.06 million higher at EUR 74.15 million
(2013/14: EUR 72.09 million), primarily due to wage and salary
increases resulting from collective agreementsand voluntary raises.
Other operating expenses rose from EUR 50.57 million to EUR 54.63
million due to additional rental costs for the opening of new
boutiques and index adjustments (+ EUR 1.04 million) as well as
higher marketing expenses of approx. EUR 3 million to strengthen the
Wolford brand. However, an increase in other operating income from
the sale of lease options supported an improvement in adjusted EBITDA
from EUR 7.11 million to EUR 10.33 million. Adjusted EBIT turned
positive from EUR -0.97 million to EUR +1.56 million. Including
non-recurring items (expenses of EUR 2.76 million and income of EUR
3.37 million), EBIT improved by EUR 6.89 million to EUR 2.17 million
(2013/14: EUR -4.72 million). Earnings after tax were positive for
the first time since the business year 2011/12 at EUR 1.03 million
(2013/14: EUR -2.81 million) as were earnings per share at EUR 0.21
(2013/14: EUR -0.57).

"The sale of land during 2014/15 was followed by the sale of
company-owned apartments at the beginning of May, in other words
during the 2015/16 financial year. That marked the end of our program
to sell non-operating assets, which generated in total approx. EUR 8
million", explained outgoing Chief Financial Officer Thomas Melzer.
"During the past financial year we spent additional EUR 3 million of
the proceeds to strengthen the brand and we financed part of the
refocusing strategy", continued Melzer. The Management Board also
wants shareholders to participate in this extraordinary income and
will recommend that the annual general meeting approve a special
dividend of EUR 0.20 per share for the 2014/15 financial year.

Continued solid balance sheet structure

The Wolford Group had Group equity of EUR 74.83 million as of April
30, 2015 (2013/14: EUR 74.38 million). The positive effects from
earnings and foreign exchange differences were substantially reduced
by actuarial losses: the interest rate used to calculate the
provisions for long-term employee benefits fell sharply further from
3.1% to 1.6% due to the sovereign debt crisis and the flight to
benchmark corporate bonds. However, Wolford's equity ratio equaled a
solid 51% as of April 30, 2015 (April 30, 2014: 54%). Net debt
remained at the prior year level of EUR 17.12 million as did gearing
(the ratio of net debt to equity) with 23%.

Revised corporate strategy

With the appointment of Ashish Sensarma as Chief Executive Officer,
the strategy to refocus on the company's core expertise and the
status of its implementation were reevaluated and the major elements
were confirmed. However, over the medium term further steps will be
required to meet the targeted EBIT margin of 10% and to pay
appropriate dividends.

The activities undertaken to revitalize the brand, adjust the product
line, refocus market communications and optimize controlled
distribution will continue. This also includes the implementation of
a new Go-to-Market model: in order to better utilize the strengths of
its Monobrand points of sale, Wolford is focusing its business model
on the requirements of retail. All processes in the Go-to-Market
model - starting with the initial product idea - will be closely
integrated based on the management of retail space. "Product
development will take place in substantially shorter cycles, which
will allow us to react faster to specific developments and current
demand. This will also help to optimize capacity utilization and
inventories - with positive effects on manufacturing costs and cash
flow", explained Axel Dreher, Deputy CEO.

Outlook

Wolford started the new financial year on a promising note: the
retail business recorded double-digit growth during the first two
months (May to June 2015). In particular, the online business remains
on a success course with high double- digit growth rates. Management
has therefore set a goal to further increase revenues and again
record positive operating results in 2015/16. The company is
targeting an EBIT margin of 10% over the medium-term. The strategic
refocusing is still in progress and will also require Wolford's
undivided attention during the current year. Wolford can finance the
measures planned as part of the revised corporate strategy from cash
flow and available credit lines.

The annual report 2014/15 and the annual financial report 2014/15 are
available in the Internet under company.wolford.com/Investor
Relations.
http://company.wolford.com/wp-content/uploads/2014/07/Wolford_Annual-
Report_2014_15.pdf http://company.wolford.com/wp-content/uploads/2015
/07/Wolford-Annual-financial- report_14_15.pdf

For additional information contact:
Axel Dreher (Management Board)
Regine Petzsch (Interim Head of Corporate Communications)
Tel.: +43 5574 690 1359 | investor@wolford.com | company.wolford.com

Wolford Group Key Data

Earnings Data

2014/15 2013/14 Chg. in %
Revenues in EUR mill. 157.35 155.87 +0.9
EBITDA adjusted in EUR mill. 10.33 7.11 +45
EBIT adjusted in EUR mill. 1.56 -0.97 >100
EBIT in EUR mill. 2.17 -4.72 >100
Earnings before tax in EUR mill. 1.21 -5.89 >100
Earnings after tax in EUR mill. 1.03 -2.81 >100
Capital expenditure in EUR mill. 10.97 7.87 +39
Free cash flow in EUR mill. -0.54 -0.97 +43
Employees (on average) FTE 1574 1562 +1

Balance Sheet Data

30.04.2015 30.04.2014 Chg. in %
Equity in EUR mill. 74.83 74.38 +1
Net debt in EUR mill. 17.12 17.04 +1
Working capital in EUR mill. 38.14 33.72 +13
Balance sheet total in EUR mill. 147.04 138.12 +7
Equity ratio in % 51 54 -
Gearing in % 23 23 -

Stock Exchange Data

2014/15 2013/14 Chg. in %
Earnings per share in EUR 0,21 -0.57 >100
Share price high in EUR 24.12 22.77 +6
Share price low in EUR 18.75 16.81 +12
Share price at end of period in EUR 24.00 19.10 +26
Shares outstanding (weighted) in 1,000 4900 4900 -
Market capitalization (ultimo) in EUR mill. 120.00 95.48 +26

On Wolford AG

Wolford AG, which is headquarters in Bregenz on Lake Constance
(Austria) has 16 subsidiaries and markets its products in more than
60 countries through 270 Monobrand points of sale (company-owned and
partner-operated), approx. 3,000 distribution partners and online.
The company, which has been listed on the Vienna Stock Exchange since
1995, generated revenues of EUR 157.4 million in the 2014/15
financial year (May 1, 2014 - April 30, 2015) with roughly 1,570
employees. Since its founding in 1950, Wolford has grown to become
the leading global brand for luxurious legwear, exclusive lingerie
and high-quality bodywear.

Further inquiry note:
Wolford AG
Regine Petzsch
Tel.: +43 5574 690 1359
mailto:investor@wolford.com
Web: company.wolford.com

end of announcement euro adhoc
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company: Wolford Aktiengesellschaft
Wolfordstrasse 1
A-6900 Bregenz
phone: +43 (0) 5574 690-1268
FAX: +43 (0) 5574 690-1219
mail: investor@wolford.com
WWW: company.wolford.com
sector: Textiles & Clothing
ISIN: AT0000834007
indexes: ATX Prime, ATX Global Players
stockmarkets: free trade: Frankfurt, regulated dealing: Wien, ADR: New York
language: English