DGAP-Ad hoc: A.S. Création Tapeten AG

In its Interim Report for the period ended March 31, 2017, the Managing Board pointed out that effective sales growth in the coming quarters would be pivotal to the accomplishment of the Group's targets, namely Group sales revenues between EUR 155 million and EUR 160 million as well as earnings after income taxes between EUR 4 million and EUR 5 million. The Interim Report also explained that a positive development of the activities in Russia as well as a relatively stable exchange rate of the Russian rouble against the euro would be an important prerequisite for attaining those targets.

According to the preliminary Q2 2017 figures now available, the Managing Board's expectations have not materialised. Rather, Group sales declined by another 8.3%, the production capacities of the Russian joint venture remained underutilised and the Russian rouble depreciated by more than 11% against the euro in the course of the second quarter, particularly during the month of June. In addition, the prices of raw materials advanced at an unexpected rate. The combined impact of these negative developments means that A.S. Création incurred a loss for the second quarter.

The preliminary figures for the full first half of 2017 show a 7.3% contraction in sales revenues from EUR 81.7 million in the prior-year period to EUR 75.7 million in the reporting period. As a result of the business performance in the second quarter, A.S. Création is reporting a loss after taxes of EUR 2.2 million for the first half of 2017, compared to a profit of EUR 5.6 million for the same period of the previous year. Excluding the exchange losses of EUR 1.4 million recognised in the reporting period and the exchange gains of EUR 2.2 million included in the profit for the prior-year period, A.S. Création incurred a loss after taxes of EUR 0.8 million in the first half of 2017 (previous year: profit in the amount of EUR 3.4 million). Having discussed and analysed the available figures, the Managing Board today came to the conclusion that its sales and earnings targets for the full year 2017 are unlikely to be accomplished during the remainder of the financial period, even though orders received during the current month of July have been clearly higher than in July 2016.

More details will be disclosed in the Interim Report for the period ended June 30, 2017 which is planned to be published on July 27, 2017.

Gummersbach, July 21, 2017

A.S. Création Tapeten AG

The Managing Board

Contact:
Maik Krämer
Chairman of the Managing Board
Director of Finance and Controlling
Südstr. 47
D-51645 Gummersbach
Phone +49-2261-542 387
Fax +49-2261-542 304
E-Mail: m.kraemer@as-creation.de