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Asian Bamboo announces preliminary FY 2011 results


Hamburg, 29.02.12

Asian Bamboo AG (“Asian Bamboo”, “the Company”, ISIN: DE000A0M6M79, ticker symbol: “5AB”, ADR ticker symbol “ASIBY”), a world-leading integrated company in the bamboo industry, announced preliminary results which were affected by the negative macro-economic developments in FY 2011. As domestic and international markets were weak, revenue per hectare fell, while plantation costs, such as cultivation costs and amortisation, increased due to a larger plantation size. The preliminary results for FY 2011, which are below the previously stated guidance, were as follows (percentage numbers are year-on-year comparisons):

  • Revenue increased 18% to EUR 89.8 million (2010: EUR 75.9 million)
  • Gross profit increased 66% to EUR 45.1 million (2010: EUR 27.1 million), equivalent to a gross profit margin of 50% (2010: 36%)
  • Loss in the Fair Value of Biological Assets (“FVBA”) of EUR 18.9 million (2010: Gain of EUR 17.2 million)
  • Gross profit, including FVBA changes, decreased 41% to EUR 26.3 million (2010: EUR 44.3 million), equivalent to a gross profit margin, including FVBA changes, of 29% (2010: 58%)
  • Net profit decreased 46% to EUR 18.1 million (2010: EUR 33.5 million), equivalent to a net profit margin of 20% (2010: 44%)

The loss in FVBA was caused by adjustments of price, costs and volume assumptions, which are part of the FVBA calculation, to better reflect the current operating environment. The Management Board regrets the volatility in the Company’s P&L caused by the FVBA calculation and wishes to emphasise that the FVBA calculation is theoretical and does not result in any effect on the cash flow. The Company’s cash flows remained solid (percentage numbers are year-on-year comparisons):

  • Cash flow before working capital changes increased 4% to EUR 36.3 million (2010: EUR 34.9 million)
  • Net cash from operating activities decreased 13% to EUR 29.2 million (2010: EUR 33.5 million)

In addition, the Company’s balance sheet remains very strong (year-end numbers):

  • Biological assets were EUR 103 million (2010: EUR 99.8 million)
  • Total assets were EUR 389.8 million (2010: EUR 346.7 million)
  • Cash and cash equivalents were EUR 42 million (2010: EUR 56.7 million)
  • Total bank borrowings were EUR 14 million (2010: EUR 13.5 million)

The DEG and PROPARCO loan facilities, which were entered into in FY 2011, had not been disbursed by the end of FY 2011.

FY 2012 Guidance

The Management Board (“MB”) believes that the short to medium term outlook has improved as there are now indications that inflation rates in China are stabilising and that the Chinese government is adopting more supportive economic policies. Furthermore, there are signs of improvements in the US labour market, which may be a precursor to a broader recovery for the world economy.

Primarily driven by an increase in the mature plantation size, the MB expects an improved financial performance in FY 2012 including:

  • Revenue of at least EUR 120 million
  • A net profit margin of at least 40%
  • Free cash flow positive (operating cash flow being larger than capital expenditures)

The MB and Supervisory Board will propose a final dividend of EUR 40 cents per share to be confirmed by the AGM on 24 May 2012. The dividend, once confirmed, will be paid on the first working day following the AGM.

For enquiries, please contact:

Asian Bamboo AG:

Peter Sjovall
+852-9385 3868
Chief Financial Officer
peter.sjovall@asian-bamboo.com

Anja Holst
+49-(0)40 37644 798
Investor Relations Director
anja.holst@asian-bamboo.com

About Asian Bamboo AG:

Asian Bamboo is a leading integrated company in the bamboo industry. The Company currently owns long-term leasing rights for 43 bamboo plantations with a total size of 54,511 hectares (ha). In the longer term, Asian Bamboo expects to reach a total plantation size of more than 100,000 ha. In March 2011, the Company began producing Acetified Dissolving Bamboo Pulp (“ADBP”), a raw material primarily used for textile production. Asian Bamboo expects to reach an annual production capacity of 100,000 tonnes of ADBP in the future.

As a National Key Flagship Enterprise, Asian Bamboo is at the forefront of developing the agriculture industry in China, helping to raise farmers’ incomes and increase output. As part of its corporate and social responsibilities, the Company launched the “Xinrixian Village Development Fund” to financially support projects in the regions where the Company operates with the aim of improving living conditions and quality of life for farmers.

Asian Bamboo has obtained organic food accreditations in China, Japan, Europe and the United States in addition to its HACCP and ISO9001 certifications. Its plantation management has received GLOBALGAP (Global Good Agriculture Practices) certification by the Swiss based company SGS. The Company is a member of the United National Global Compact initiative and is the first Chinese company to participate in the Carbon Disclosure Project and the Water Disclosure Project.

Since 16 November 2007, Asian Bamboo has been listed on the Prime Standard of the Frankfurt Stock Exchange under the ticker symbol “5AB”. In addition, the stock is traded as an ADR under the ticker symbol “ASIBY”. The Company’s financial statements are audited by Deloitte and its registered office is located in Hamburg, Germany.


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