Corporate | 6 May 2004 16:36

A.S. Création starts fiscal 2004 with a 15.5% increase in earnings

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– A.S. Création starts fiscal 2004 with a 15.5% increase in earnings. General Meeting of Shareholders decides to pay a dividend of EUR 0.75 per share At today’s General Meeting of Shareholders in Gummersbach, A.S. Création Tapeten AG, Germany’s largest wallpaper manufacturer, presented its interim report for the three-month period ended March 31, 2004. A summary of the report is provided below: Sales Due to the acquisition of three wallpaper wholesalers in France and the Netherlands, first-quarter sales increased by EUR 3.1 million or 9.3% from the previous year’s EUR 33.5 million to EUR 36.6 million. Of the total sales growth of EUR 3.1 million, EUR 2.3 million were attributable to the three acquisitions. The 9.3% sales growth in Q1 2004 thus consists of 7.0% external growth and 2.3% internal growth. Against the background of a persistently difficult economic environment, the Managing Board of A.S. Création Tapeten AG is satisfied with this internal sales growth. Financial and earnings position In conjunction with the cost-cutting measures implemented by the company, the higher sales led to a strong increase in earnings. At EUR 1.9 million, net profit was up 15.5% on the previous year’s EUR 1.6 million. Building on the improved earnings, A.S. Création increased its internal financing strength in the first three months of 2004. Gross cash flow climbed to EUR 4.1 million (2003: EUR 3.9 million) and was more than sufficient to finance the first-quarter capital expenditure volume of EUR 2.2 million. This amount includes goodwill and fixed assets totalling EUR 1.3 million, which were acquired in the context of the takeover of the three wallpaper wholesalers. Mainly as a result of the acquisitions, consolidated total assets increased by 6.1% from EUR 103.3 million on December 31, 2003 to EUR 109.7 million on March 31, 2004. At 51.5%, the equity ratio remains at a high level, reflecting A.S. Création’s very robust and healthy financial structure. Outlook Against the background of the successful first quarter of 2004, the Managing Board confirmed its full-year sales and net profit projections of approx. EUR 130 million and roughly EUR 6.0 million, respectively. A summary of the Group’s key figures for the first quarter of 2004 is provided below: 01.01. 01.01. -31.03. -31.03. 2004 2003 Change ————————————————— ——- ——- ——- Sales EUR ‘000 36,570 33,462 9,3 % Earnings before interest and taxes (EBIT) EUR ‘000 3,476 2,922 19,0 % Earnings before income taxes EUR ‘000 3,138 2,575 21,9 % Net profit EUR ‘000 1,862 1,613 15,5 % DVFA/SG earnings per share EUR/share 0.67 0.58 15,5 % Gross cash flow EUR ‘000 4,065 3,867 5,1 % Capital expenditures EUR ‘000 2,231 4,306 -48,2 % Depreciation EUR ‘000 1,901 1,887 0,7 % Number of employees (average) 633 617 2,6 % Dividend The General Meeting of Shareholders decided to pay out a dividend of EUR 0.75 per share (2003: EUR 0.90) from the net profit for 2003. This means that 44.4% of the result (2003: 40.0%) will be distributed to the shareholders. A.S. Création share thus again lives up to its reputation as a high-yield paper. Gummersbach, May 6, 2004 A.S. Création Tapeten AG The Managing Board Inquiries: Maik Krämer, Director of Finance, phone + 49 – (0)22 61/542-387, fax + 49 – (0)22 61/542-304, e-mail m.kraemer@as-creation.de The full interim report is available at http://www.as-creation.com/investor or from: A.S. Création Tapeten AG, Mrs. Börngen, Südstr. 47, D – 51645 Gummersbach, phone + 49 – (0)22 61/542-350 end of message, (c)DGAP 06.05.2004 ——————————————————————————– WKN: 507990; ISIN: DE0005079909; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 061636 Mai 04