Ad-hoc | 16 February 2005 08:03

UNITEDLABELS records higher earnings in 2004

Ad hoc announcement §15 WpHG Preliminary Figures 2004 UNITEDLABELS records higher earnings in 2004 Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— – Revenue growth of 8.4% to EUR 39.2 million – EBIT increases to EUR 1.5 million – Above-average fourth quarter (Münster, February 16, 2005) – Based on preliminary figures, UNITEDLABELS AG (DE 0005489561), an enterprise specialising in comicware sold under licence, increased consolidated revenues by 8.4% to EUR 39.2 million in the 2004 financial year (FY 2003: EUR 36.2 million). At the same time, EBIT was propelled upwards to EUR 1.5 million (FY 2003: loss before interest and taxes of EUR 0.4 million). This corresponds to an EBIT margin of 3.9%. At EUR 0.8 million, consolidated net profit for FY 2004 was also above par (FY 2003: net loss of EUR 1.0 million). Based on this performance, earnings per share (EPS) were EUR 0.20 (FY 2003: loss per share of EUR 0.26). Thus, UNITEDLABELS AG exceeded its original forecast for FY 2004 by 5.9% in terms of revenue and 53% with regard to EBIT. The company’s solid annual results were attributable mainly to above-average business in the fourth quarter of 2004, which saw revenues increase by 36.1% to EUR 14.7 million (Q4 2003: EUR 10.8 million) and an EBIT figure of EUR 1.1 million (Q4 2003: loss of EUR 0.5 million). Thus, the company’s EBIT margin for the fourth quarter stood at 7.5%. The order backlog, i.e. orders in hand, as at December 31, 2004, was EUR 12.1 million (FY 2003: EUR 9.0 million). This represents a year-on-year increase of 34%. The revenue target for the full 2005 financial year stands at approx. EUR 40 million, while EBIT is expected to be approx. EUR 1.8 million. The audited financial statements for the financial year just ended will be published as part of the annual results press conference to be held in Münster/Germany in March 2005. For further information, please visit http://www.unitedlabels.com or contact the following member of staff: UNITEDLABELS AG Holger Pentz D – 48157 Münster, Gildenstr. 6 Tel.: +49 (0) 251-3221-405 Fax: +49 (0) 251-3221-965 hpentz@unitedlabels.com United Labels AG Gildenstr. 6 48157 Münster Deutschland ISIN: DE0005489561 WKN: 548956 Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart End of ad hoc announcement (c)DGAP 16.02.2005 Issuer’s information/explanatory remarks concerning this ad hoc announcement: Press Release – UNITEDLABELS AG dated February 16, 2005 WKN: 548956, Ticker Symbol: ULC FY 2004 earnings surge at UNITEDLABELS – Revenue growth of 8.4% to EUR 39.2 million – EBIT increases to EUR 1.5 million – Above-average fourth quarter (Münster, February 16, 2005) – Based on preliminary figures, UNITEDLABELS AG (DE 0005489561), an enterprise specialising in comicware sold under licence, increased consolidated revenues by 8.4% to EUR 39.2 million in the 2004 financial year (FY 2003: EUR 36.2 million). At the same time, EBIT was propelled upwards to EUR 1.5 million (FY 2003: loss before interest and taxes of EUR 0.4 million). This corresponds to an EBIT margin of 3.9%. At EUR 0.8 million, consolidated net profit for FY 2004 was also above par (FY 2003: net loss of EUR 1.0 million). Based on this performance, earnings per share (EPS) were EUR 0.20 (FY 2003: loss per share of EUR 0.26). Thus, UNITEDLABELS AG exceeded its original forecast for FY 2004 by 5.9% in terms of revenue and 53% with regard to EBIT. The company’s solid annual results were attributable mainly to above-average business in the fourth quarter of 2004, which saw revenues increase by 36.1% to EUR 14.7 million (Q4 2003: EUR 10.8 million) and an EBIT figure of EUR 1.1 million (Q4 2003: loss of EUR 0.5 million). Thus, the company’s EBIT margin for the fourth quarter stood at 7.5%. Benefiting from this dynamic performance, UNITEDLABELS managed to buck the overall trend in year-end business, which was generally characterised by relatively subdued trading. The order backlog, i.e. orders in hand, as at December 31, 2004, was EUR 12.1 million (FY 2003: EUR 9.0 million). This represents a year-on-year increase of 34%. Peter M. Boder, CEO of UNITEDLABELS, pointed out: “We recorded a particularly encouraging level of incoming orders in the final months of the year. Not only are our trading partners placing larger orders for comicware, they are actually scheduling their orders much earlier. Therefore, we are in a position to plan our financial year with greater accuracy.” The revenue target for the full 2005 financial year stands at approx. EUR 40 million, while EBIT is expected to be approx. EUR 1.8 million. This corresponds to a moderate increase in both revenue and earnings. “Orders for the second half of the year, which is a particularly important period, will be placed in the coming months. We will have a more detailed picture of annual business once these orders have come in,” said Boder optimistically. Tailor-made concepts for specialist retailers to be extended The company’s premium brand “Best Of”, featuring Mickey and Snoopy, continued its meteoric rise to fame in the financial year just ended. Indeed, the number of trading partners was more than doubled within this specific area. The high-quality chinaware range, which continues to thrive in Germany, Europe and Asia, has been extended to include two new lines and several complementary products. “With ‘Best Of’, we are offering specialist retailers a concept that is tailored precisely to their requirements – an offering that is suited to demand structures in this segment,” said Boder and added, “Applying a selective approach to distribution, we have built stable partnerships with retailers. Together, we are able to offer the discerning consumer base a fascinating range of products centred around the most popular cartoon characters.” All operational subsidiaries are working profitably The operational subsidiaries of UNITEDLABELS AG also performed well over the course of the 2004 financial year. Particularly Spain and France produced solid results in the specialist retail and key-account segments. Alongside Germany’s United Labels AG, Spain’s United Labels Iberica, French-based United Labels France, Belgium’s Colombine as well as Hong Kong’s United Labels Ltd. also operated above par. UNITEDLABELS AG is one of Europe’s leading specialists for comicware sold under licence. The licensing partners working in cooperation with the independent media company include global players from the world of media and entertainment, such as Disney and 20th Century Fox. UNITEDLABELS is able to reach all age groups within the European market of licensed products, thanks to its successful portfolio of well-established classics, such as Mickey, Snoopy and Sesame Street, and popular stars like The Simpsons and SpongeBob SquarePants. UNITEDLABELS has established a comprehensive European sales network for comicware, distributing its products through more than 30,000 retail partners. The audited financial statements for the financial year just ended will be published as part of the annual results press conference to be held in Münster/Germany in March 2005. For further information and photographs/images, please visit http://www.unitedlabels.com or contact the following member of staff: UNITEDLABELS AG Holger Pentz D – 48157 Münster, Gildenstr. 6 Tel.: +49 (0) 251-3221-405 Fax: +49 (0) 251-3221-965 hpentz@unitedlabels.com End of message (c)DGAP 160803 Feb 05