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Asian Bamboo announces FY 2011 results


Hamburg, 29.03.12

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, announces FY 2011 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 final results for FY 2011 were as follows (percentage numbers are year-on-year comparisons):

  • Revenue increased 18% to EUR 89.8 million (2010: EUR 75.9 million)
  • Cost of sales decreased 8% to EUR 44.7 million (2010: EUR 48.8 million)
  • 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 26.2 million (2010: EUR 44.3 million), equivalent to a gross profit margin, including FVBA changes, of 29% (2010: 58%)
  • Net profit decreased 52% to EUR 16.2 million (2010: EUR 33.5 million), equivalent to a net profit margin of 18% (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 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 decreased 2% to EUR 34.8 million (2010: EUR 35.6 million)
  • Net cash generated from operating activities decreased 17% to EUR 27.9 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 391.8 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. However, the PROPARCO loan was disbursed on 1 March 2012.

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 one of the first Chinese companies ever to participate in the Carbon Disclosure Project and the CDP 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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