DGAP-Adhoc

Asian Bamboo announces preliminary Q1-Q2 2014 results and adjusts its guidance for the year

Asian Bamboo AG / Key word(s): Preliminary Results

07.08.2014 16:14

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Asian Bamboo announces preliminary Q1-Q2 2014 results and adjusts its
guidance for the year

Hamburg, 7 August 2014 - Asian Bamboo AG ("Asian Bamboo", "the Company",
ISIN: DE000A0M6M79, ticker symbol: "5AB", ADR ticker symbol "ASIBY"),
announces the following preliminary results for the period Q1-Q2 2014
(percentage numbers are year-on-year comparisons):

- Revenue decreased 22% to EUR 10.8 million* (Q1-Q2 2013: EUR 13.7
million*)

- Gross profit including FVBA-changes** increased 204% to EUR 5 million
(Q1-Q2 2013: EUR 1.6 million), equivalent to a gross profit margin
including FVBA-changes of 46% (Q1-Q2 2013: restated: 12%)

- Net profit of EUR 8.1 million (Q1-Q2 2013 restated: net loss of EUR 2.2
million)

- Operating cash flow before movements in working capital was EUR 1.3
million (Q1-Q2 2013: EUR 4.5 million)

- Net cash generated from operating activities was positive EUR 4.2
million (Q1-Q2 2013: negative EUR 4 million)

- Cash and cash equivalents of EUR 26 million (31 December 2013: EUR 28.5
million)

* Revenue numbers do not include sales of bamboo fibre as it is treated as
a discontinued operation
**FVBA is an abbreviation for gains/(losses) arising from changes in the
fair value less estimated costs to sell of biological assets

In the first half of the year the performance remained unsatisfactory due
to the structural issues the plantation business is facing. In addition,
the spring bamboo shoot harvest was negatively affected by heavy rain
during the key harvesting weeks, which also had a negative impact on the
amount of dried bamboo shoots available for harvest. The Management Board
continued to exercise stringent cost control and the provisions made for
onerous plantation lease contracts have lowered the total amortisation
costs. In addition, on 22 April the Company announced an agreement to give
up the rights to certain plantations, which resulted in an accounting gain
of EUR 6.9 million in Q2. Most importantly, the business continued to be
net operating cash flow positive.

The Management Board expects the overall operating situation for the
plantation business to remain challenging. Due to the negative impact of