EANS-News: Delticom publishes 3-Monthly Report 2012

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quarterly report

Hanover (euro adhoc) - 10 May 2012 - Delticom (German Securities Code
(WKN) 514680, ISIN DE0005146807, stock market symbol DEX), Europe's
leading online tyre dealer, has published its full report for the
first three months of 2012. In Q112 the company recognised revenues
of EUR 85.5 million, a plus of 0.2%. Earnings before interest and
taxes (EBIT) amounted to EUR 3.4 million.

Business in the first quarter

Revenues

Due to the lack of snow, sales of winter tyres lagged behind
expectations at the start of the year. This was compounded by the
fact that prior to Easter it was too cold for a good start into the
changeover season. The low temperatures are likely to have prevented
many drivers from making an early switch to summer tyres.

Despite difficult market conditions revenues in Q112 came in flat
year-on-year. Quarterly revenues increased by 0.2% to EUR 85.5
million (Q111: EUR 85.4 million). Revenues in the E-Commerce division
were up year-on-year by 0.5%, from EUR 80.5 million to EUR 80.9
million. The revenues of the Wholesale division decreased by 5.8% to
EUR 4.5 million, after prior-year revenues of EUR 4.8 million.

Gross margin

The cost of goods sold increased in the reporting period by 0.3%,
from EUR 63.2 million in Q111 to EUR 63.4 million. The gross margin
for the first quarter was set to 25.8%, more or less flat from
prior-year's 25.9%.

Other operating income

Other operating profit decreased by 48.2% to EUR 0.7 million (Q111:
EUR 1.3 million), thereof gains from exchange rate differences to the
order of EUR 0.4 million (Q111: EUR 1.0 million). FX losses have to
be accounted for as line item in the other operating expenses (Q112:
EUR 1.5 million, Q111: EUR 1.7 million). The balance of FX income and
losses totalled EUR -1.1 million (Q111: EUR -0.7 million).
Altogether, the gross profit worsened in the reporting period by
-3.0% year-on-year, from EUR 23.5 million to EUR 22.7 million.

Personnel expenses

In the reporting period on average 142 staff members were employed at
Delticom (Q111: 108). The reason for the increase was the build up of
qualified staff for our new warehouse facility which was opened in Q2
last year. Personnel expenses amounted to EUR 2.2 million (Q111: EUR
1.7 million). The Q112 personnel expenses ratio stood at 2.6% (staff
expenditures as percentage of revenues, Q111: 2.0%).

Other operating expenses

Overall the other operating expenses totalled EUR 16.4 million in the
past quarter, an increase of 6.7% over the prior-year value of EUR
15.4 million.

Among the other operating expenses, transportation costs is the
largest line item. It grew from EUR 6.8 million by +3.7% to EUR 7.0
million. The share of transportation costs against revenues went up
from 7.9% in Q111 to 8.2% in Q112.

Due to the expansion of warehouse capacity, rents and overheads
increased by 63.9%, from EUR 1.0 million to EUR 1.6 million. Stocking
costs came in at EUR 1.0 million, 15.0% higher than prior-year's EUR
0.9 million.

In the reporting period, costs for advertising totalled EUR 2.1
million, after EUR 2.0 million in Q111. The ratio of marketing
expenses to revenues was with 2.4% basically flat year-on-year.

Depreciation

In line with our gradual warehouse capacity expansion and the last
year's investments into warehousing infrastructure, depreciation rose
by 83.0% from EUR 0.4 million in Q111 to EUR 0.7 million.

Earnings performance

EBIT came down from EUR 5.9 million to EUR 3.4 million, primarily due
to higher fixed costs.

Financial income amounted to EUR 6.4 thousand (Q111:EUR 42.3
thousand) while financial expenses in Q112 increased to EUR 43.4
thousand (Q111:EUR 2.9 thousand). At the reporting date the financial
result totalled EUR -37.1 thousand after EUR 39 thousand the previous
year.

The expenditure for income taxes was EUR 1.1 million (previous year:
EUR 1.9 million). The tax rate was 31.6% (Q111: 32.2%). Consolidated
net income for Q112 came down from EUR 4.1 million to EUR 2.3
million. This corresponds to earnings per share (EPS) of EUR 0.20
(undiluted, Q111: EUR 0.34).

Balance sheet

Among the current assets, inventories is the biggest line item. They
grew from the beginning of the year by 26.4%, totalling EUR 134.7
million on 31.03.2012. This corresponds to a share of 66.3% of total
assets (31.12.2011: 64.0%, 31.03.2011: 49.9%).

In the wake of this inventory build-up, the accounts payable
increased from EUR 68.2 million by EUR 35.6 million or 52.1% to EUR
103.8 million.

Cash flow and liquidity position

The net working capital came down by 7.6%, from EUR 44.4 million at
31.12.2011 to EUR 41.1 million at 31.03.2012. In the last year the Q1
net working capital had increased by EUR +22.2 million. Consequently,
in Q112 the cash flow from ordinary business activities (operating
cashflow) of EUR 5.6 million was significantly stronger than in the
comparison period (Q111: EUR -18.5 million).

Liquidity (cash and cash equivalents plus liquidity reserve) as of
31.03.2012 totalled EUR 26.8 million (31.03.2011: EUR 47.5 million).
The company's net cash position (liquidity less liabilities from
current accounts) amounted to EUR 23.2 million.

Outlook

Experts continue to regard the European economic outlook with
caution. After the elections in Greece and France it is looking less
likely that European states will agree on a common strategy for
managing public deficits in the near future. In addition, high petrol
and energy prices are unsettling European consumers. This will weigh
on consumer sentiment in coming months.

Due to unfavourable weather conditions, the European tyre trade had a
relatively soft start into the year. At the beginning of the second
quarter, the picture is still mixed throughout Europe. Demand shifts
between quarters are quite common in the tyre trade, though. Assuming
that the market environment for the tyre business continues to
improve then volumes in the second quarter should benefit from
catch-up effects.

All in all, our forecast of a rise in revenues of 10% year-on-year
remains unchanged. Assuming margins at prior-year levels, earnings
should grow in line with revenues.

The full report for the first three months 2012 stands ready for
download 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 41 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 30,000 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