EANS-Adhoc: Valora Holding AG / Valora Group reports stable results in the face of demanding market conditions. Growth prospects favourable

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28.03.2012

Valora Group reports stable results in the face of demanding market
conditions. Growth prospects favourable

- External sales increased in 2011 - adjusted net revenues in line
with 2010 levels - Systematic implementation of Valora 4 Growth
strategy continues - Significant new initiatives taken to secure
future growth - Board to recommend unchanged dividend at 2012
Ordinary General Meeting - Improvement on previous year´s results
expected for 2012, despite further acceleration of press volume
decline and weak Swiss retail market

External sales increased in 2011 - adjusted net revenues in line with
2010 levels

In a year marked by major challenges for the Swiss retail sector, the
Valora Group increased its external sales (including franchisee
turnover) by +0.5% to CHF 2 961.9 million. In local currency terms
and after adjusting for the non-recurrence of 2010 football picture
card sales, external sales were +6.3% up on their 2010 levels. The
Retail division turned in a positive performance, expanding in all
the national markets in which it operates. Valora Services,
conversely, was adversely affected by the sharp decline in the
overall press market. Valora Trade advanced substantially thanks to
its acquisitions, though its sales in Switzerland declined due to the
strength of the Swiss franc and the resulting increase in parallel
imports by retailers.

The Valora Group´s reported operating profit for 2011 was CHF 70.5
million. After adjusting for exchange rate fluctuations and the
non-recurrence of earnings from the distribution and sale of football
picture cards from which it benefited in 2010, Valora´s 2011 EBIT was
CHF 0.4 million up on its previous year´s level, which equates to an
EBIT margin of 2.6%, slightly below the 2.7% achieved in 2010.

The Group´s 2011 net profit was CHF 57.4 million (CHF 63.6 million in
2010). Despite an acquisition-related financing requirement of some
CHF 40 million, Valora´s net debt remains modest, at CHF 41.0
million. The successful completion of new syndicated loan facilities
and a new bond issue mean that the Group has the financing it will
need to support its operational business needs and its Valora 4
Growth strategy over the next few years. With shareholders´ equity
accounting for 41.9% of total assets, Valora continues to maintain a
sound balance sheet structure.

Divisions

Valora Retail further increases its profitability

Valora Retail successfully mastered the market challenges facing it
in 2011, further increasing its market share through a combination of
organic and acquisition-led growth. The division´s 2011 external
sales totalled CHF 1 760.8 million, +4.9% up on their level a year
earlier. Reported net revenues were CHF 1 613.2 million. Reported
operating profit, at CHF 41.8 million, was CHF +0.1 million up on its
2010 level. Stripping out the effects of exchange rates and the
non-recurrence of 2010 football picture card earnings, Valora
Retail´s 2011 operating profit advanced +11.1% on the year to CHF 4.4
million, which equates to an EBIT margin of 2.7%, compared to 2.5% in
2010.

Valora Services - sharp contraction of press volumes

The Group´s Services division generated net revenues of CHF 599.7
million in 2011, -14.9% lower than a year earlier. The principal
cause of this decline was the sharp contraction of press volumes in
all its country units, those in Switzerland being the worst affected
with a shortfall of -7%. Exchange rates were an additional adverse
factor, reducing the division´s revenues by CHF 19.2 million. Valora
Services´ reported operating profit for 2011 was CHF 20.0 million,
CHF 8.3 million lower than in 2010. After adjusting for exchange rate
and football picture card effects, Valora Services´ 2011 operating
profit was CHF 3.0 million lower than the year before. While the
various cost-cutting measures the division implemented and the new
services it introduced counteracted the effects of declining press
volumes, they did not fully offset them.

Valora Trade benefits from successful acquisitions

At CHF 744.5 million, the Trade division´s reported net revenues for
2011 were +3.1% ahead of their 2010 levels, or +11.0% in local
currency terms. Thanks to their acquisitions of cosmetics
distributors EMH and ScanCo, Trade Norway and Trade Sweden achieved
the most notable increases in local currency sales while Trade
Germany benefited from its acquisition of Salty Snacks Delicatessen.
The most demanding challenges in 2011 were those faced by the
division´s Swiss country unit, which came under increasing pressure
from parallel imports by retailers. Valora Trade´s reported operating
profit for 2011 was CHF 16.3 million. In local currency terms, this
equates to an improvement of CHF 0.2 million on 2010 levels.

Systematic implementation of Valora 4 Growth strategy continues

The Group made significant progress in the implementation of its
Valora 4 Growth (V4G) expansion strategy, paving the way for
achievement of its objectives.

- The G1 (organic margin growth) initiatives have seen adoption of
the agency business model progress faster than originally planned,
with 180 k kiosks now operating as agencies. Profitability at these
outlets has improved, with sales growing an average of 3% while costs
have declined by an average of 6%. Implementation of centralised
purchasing procedures has made it possible to upgrade the contract
and terms management system and increase professionalism in this area
of Valora´s operations.

- The G2 (organic revenue growth) initiatives are also achieving
positive results, particularly as far as enhancement of the Retail
divison´s product mix is concerned. Initial test results at the pilot
site for the new k kiosk format, for example, have seen food sales
advance 15%. During 2012, the new k kiosk format will be refined
further and rolled out to additional sites. Valora´s extension of the
range of logistics services it offers, principally based on
exploiting its competitive advantages in start-of-day logistics, got
off to a good start with a major mandate for small package
distribution and now already has eleven mail order houses under
contract. This service is meeting with substantial customer demand
and should prove effective in offsetting the effects of declining
press volumes over the next few years. Equally strong performance is
being achieved by Valora´s avec. convenience format, which is
benefiting from enhancements to store layout and the stores´ fresh
produce and food product ranges.

- On the G3 (acquisition-led growth at Retail/Services) front,
transformation of the tabacon outlets purchased in 2010 to Valora´s k
kiosk format is progressing well. Valora Retail´s 2012 acquisition of
the outlets operated by Schmelzer Bettenhausen, Austria´s leading
railway station bookseller, marks the division´s entry into the
Austrian market. These stores, sited at major Austrian railway
stations and Vienna airport, will shortly be transformed to Valora´s
successful Press&Books (P&B) format.

- Implementation of the G4 (acquisition-led growth at Trade)
initiatives saw Valora Trade add cosmetics to its category porftolio
through its acquisition of cosmetics distributors EMH in Norway and
ScanCo in Sweden, both attractive companies. In Germany, Valora
Trade´s acquisition of niche distributor Salty Snacks Delicatessen
enabled it to add the profitable savoury baked goods category to its
portfolio.

Significant new initiatives taken to secure future growth

2011 demonstrated that Valora is on the right track with its V4G
strategy. The initiatives defined in the plan are the right ones for
achieving the growth and sustained improvement in profitability
Valora is targeting. The acquisition of the Lekkerland subsidiary
Convenience Concept with its 1 300 German outlets represents a major
milestone in this regard. The transaction significantly strengthens
Valora´s status as a micro-retailer not only in Germany itself but
throughout Europe´s German-speaking region as well. It also means
that the Group´s objective of operating more than 1 000 kiosks in
Germany by 2015 has already been reached in early 2012. Acquisitions
of additional travel retail formats remain a strategic focus. Valora
Trade has purchased three excellent companies and will continue to
pursue a strategy of adding further profitable categories to its
portfolio in future. Regional expansion of the division´s classical
trade business, conversely, will be ascribed a lower priority in the
short term, given the weakness of consumer confidence, and
initiatives here will, for the time being, be pursued on an
opportunistic basis only. In aggregate, Valora expects its strategic
initiatives to increase consolidated external sales to some CHF 3.9
billion by 2015, with operating profit projected in the CHF 110
million to CHF 130 million range.

Board to recommend unchanged dividend at 2012 Ordinary General
Meeting

At the Ordinary General Meeting to be held on April 19, 2012,
Valora´s Board of Directors will recommend a dividend of CHF 11.50
per share. Once again, shareholders will also be given the
opportunity of casting a consultative vote on the remuneration report
for the most recent financial year. All Board members will stand for
re-election.

Improvement on previous year´s results expected for 2012, despite
further acceleration of press volume decline and weak Swiss retail
market

Across European markets, but particularly in Switzerland, business
conditions affecting Valora´s core business will remain very
challenging in 2012. The further acceleration in the decline of the
press market is impacting both the Services and the Retail divisions.
This is a factor over which Valora can exercise little influence, as
indeed is the weakness of retail spending in Switzerland, itself
exacerbated by the strength of the Swiss franc and the ongoing
shopping tourism in which Swiss consumers are engaging. Despite the
adverse effects which these conditions will continue to exert, it is
Valora´s objective to increase its operating profit above 2011 levels
this year. In the words of Thomas Vollmoeller, Valora´s CEO, "We are
on the right trajectory with our V4G strategy, and this has enabled
us to secure a basis from which to achieve our medium-term growth
objectives."

Valora Group key financial data

Income statement

in CHF million 2011 2010

External sales 2`961.9 2`946.5
Adjusted* external sales 3`093.4 2`909.2
Net revenues 2`817.9 2`877.7
Adjusted* net revenues 2`936.4 2`840.4
Gross profit 876.4 875.2
Gross profit margin 31.1% 30.4%
Operating costs, net -805.9 -793.9
Operating profit (EBIT) 70.5 81.3
EBIT margin 2.5% 2.8%
Adjusted* operating profit (EBIT) 75.8 75.4
Adjusted* EBIT margin 2.6% 2.7%
Group net profit 57.4 63.6

* Adjusted for currency fluctuations and World Cup 2010 picture cards

Liquidity, balance sheet

in CHF million 31.12.2011 31.12.2010
Cash and cash equivalents 109.6 130.5
Shareholders´ equity 462.3 478.1
Equity cover 41.9% 43.6%
Net debt 41.0 14.1

Valora divisions´ key financial data

Key metrics Retail Services Trade
in CHF million 2011 2010 +/- 2011 2010 +/- 2011 2010 +/-

External sales1 1,760.8 1`678.8+4.9%

Adjusted* external
sales1 1,819.0 1`669.1+9.0%

Net revenues1 1,613.2 1`606.5+0.4% 599.7 705.1-14.9% 744.5 721.8 3.1%

Adjusted* net
revenues1 1,658.3 1´596.9+3.8% 618.9 677.5-8.6% 801.2 721.8+11.0%

Operating profit
(EBIT) 41.8 41.7+0.2% 20.0 28.3-29.6% 16.3 17.7 -7.9%
Adjusted* operating
profit (EBIT) 44.1 39.7+11.1% 21.4 24.5-12.4% 17.9 17.7 +1.1%

EBIT margin 2.6% 2.6%+0.0pP 3.3% 4.0%-0.7pP 2.2% 2.5%-0.3pP

Adjusted* EBIT
margin 2.7% 2.5%+0.2pP 3.5% 3.6%-0.1pP 2.2% 2.5%-0.3pP

* Adjusted for currency fluctuations and World Cup 2010 picture cards
| 1) before inter-company eliminations

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The following documents are available on www.valora.com

Annual Report 2011

http://www.valora.com/media/documents/english/reports/2011/valora_gb2
011_en_gesamt.pdf

Press release
http://www.valora.com/en/media/newsinformation/news_00437.php

2011 results presentation http://www.valora.com/media/documents/engli
sh/presentations/2011/valora_gb2011_en_praesentation.pdf
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++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Valora Telephone Conference - Analysts´ and Media Conference 2012
Wednesday, March 28, 2012 | 15:00 CET

Thomas Vollmoeller, CEO of Valora Holding AG, and Lorenzo Trezzini,
CFO, will provide information about the Group´s 2011 results during a
telephone conference. This dial-in conference call will be held in
English.

To participate in the conference: call the following number
(please call 10 to 15 minutes before the hour):

+41 (0) 91 610 56 00 (Europe)
+44 (0) 203 059 58 62 (UK)
+ 1 (1) 866 291 41 66 (USA - toll-free)

The playback will be available one hour after the conference and will
remain accessible for 24 hours thereafter (till the same time on
March 29th, 2012). Participants wishing to listen to the digital
playback should dial:

+41 (0) 91 612 43 30 (Europe)
+44 (0) 207 108 62 33 (UK)
+ 1 (1) 866 416 25 58 (USA)

and should enter the code 13443 followed by the # sign when prompted.
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO
THE UNITED STATES THIS DOCUMENT IS NOT BEING ISSUED IN THE UNITED
STATES OF AMERICA AND SHOULD NOT BE DISTRIBUTED TO U.S. PERSONS OR
PUBLICATIONS WITH A GENERAL CIRCULATION IN THE UNITED STATES. THIS
DOCUMENT DOES NOT CONSTITUTE AN OFFER OR INVITATION TO SUBSCRIBE FOR
OR PURCHASE ANY SECURITIES. IN ADDITION, THE SECURITIES OF VALORA
HOLDING AG HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR DELIVERED WITHIN THE
UNITED STATES OR TO U.S. PERSONS ABSENT REGISTRATION UNDER OR AN
APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE UNITED
STATES SECURITIES LAWS

This document contains forward-looking statements about Valora which
may incorporate an element of uncertainty and risk. The reader must
therefore be aware that such statements may diverge from actual
future events. These forward-looking statements are projections
relating to future possible developments. All the forward-looking
statements contained in this document are based on data available to
Valora at the time this document was prepared. Valora makes no
commitment whatsoever to update forward-looking statements in this
document at a later date, or to adapt them to reflect new
information, future events or the like.

Further inquiry note:
Investor Relations: Tel: +41 58 789 12 20
Mladen Tomic E-Mail: mladen.tomic@valora.com

Media Relations: Tel: +41 58 789 12 01
Stefania Misteli E-Mail: stefania.misteli@valora.com

end of announcement euro adhoc
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issuer: Valora Holding AG
Hofackerstrasse 40
CH-4132 Muttenz
phone: +41 61 467 20 20
FAX: +41 58 789 12 12
mail: info@valora.com
WWW: www.valora.com
sector: Retail
ISIN: CH0002088976
indexes:
stockmarkets: Main Standard: SIX Swiss Exchange, stock market: BX Berne eXchange
language: English