Kilkis, March 29^th 2013

INCREASE OF KLEEMANN GROUP TURNOVER & PROFITABILITY

For the year 2012, the Group of Kleemann presents positive results in respect to turnover and both gross and net profit.

The Group's internationalization strategy and extraversion enabled it to enter new markets in 2012 and thus be present in 90 countries, as opposed to 75 in 2011. Also, in 2012 the Group managed to increase its international sales by 17% compared to the previous year, which raised the percentage of international sales to 78% of the total turnover as compared to 68% in 2011.

It should be noted that Kleemann established in late 2012 a subsidiary company in Moscow, where the company already held a representative office, in order to further benefit from the dynamic of the Russian market. In 2012, Russia was the largest international market for the parent company with total sales amounting to 11.5 mln euros, doubled in respect to the previous year.   

Regarding the Group's financial figures, turnover increased by 1.3%, to 92.3 mln euros from 91.2 mln euros in 2011. Gross Profit Margin for the year was 31.0%, while in 2011 it was 30.6%. Furthermore the gross margin of the fourth quarter was even higher, reaching 32.6%. This improvement, which can be seen in the second half of 2012, was a result of successfully implemented cost reducing strategic projects throughout the year. The Group's net profit before tax was 2.5 mln euros from 2.4 mln euros in the previous year, while the parent company returned to profitability with net profit before tax amounting to 38 thous euros from 2.2 mln euros loss in 2011. Profit after tax and non-controlling interest was -78 thous euros from 73 thous euros in the previous year.

For the fiscal year 2012, the Board of Directors does not intend to propose dividend distribution.

It is noted that the Group's financial results include a provision of 5.6 mln euros for doubtful debtors, from 3.3 mln euros in 2011. Such a high provision was made in context with the Group's prudent policy and concern clients in the Greek market, who were affected from the economic crisis. Moreover, the result was affected by the loss of 1.1 mln euros from the two new subsidiary companies in China and England,  the one-off costs of 0.6 mln euros for representative offices and commercial growth, and finally 117 thous euros (cost) from exchange differences of the subsidiary in Turkey compared to 604 thous euros (profit)  in 2011.  Finally, because of fixed assets revaluation at fair value a difference of 736 thousand euros was accounted, of which 195 thousand aggravated the results and 541 thous euros the equity. Without taking into account the above, the Group's profit before tax would be 10.1 mln euros. 

Furthermore, the Group has an excellent capital structure, with cash flow from operating activities being positive and amounting to 11.8 mln euros. As a result, net bank loans amount to merely 2.7 mln euros, a significant achievement highlighting the Group's financial self-reliance. Moreover, equity to debt ratio was 1.58 for the year 2012, which is considerably high and confirms the healthy economic status of the Group and its limited exposure.

For 2013, the Group of Kleemann expects an even better performance, having as its main target international expansion and the penetration of markets which present growth perspectives. Τhe Management, judging by the Group's growth ability, which in a few years managed to successfully change its field of activity from the local to the global market, expects a continuation of its successful course in 2013.