AG: adjusts outlook for 2016

 In Ad-hoc releases AG  / Key word(s): Change in Forecast/Forecast

18.05.2016 00:30

Dissemination of an Ad hoc announcement according to ยง 15 WpHG, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

--------------------------------------------------------------------------- adjusts outlook for 2016 group expects not to reach the revenues and earnings forecasts for the financial year 2016. After record revenues in March, revenues with customers in China in April and May are below expectations. Based on an updated forecast, the Management Board decided to adjust its outlook for the financial year 2016 today. group now expects an increase in revenues of approximately 30 percent year over year and an adjusted EBIT margin between -10  to -12 percent in 2016. The gross margin is still expected to be at least 28 percent.

On April 8th 2016, the Chinese government changed import and customs regulations for the delivery of goods to China.'s shipments to China are not affected except for a moderate increase in customs. The new regulations particularly aim at reducing uncontrolled shipments of goods to China by unauthorized traders by starting to tax them. As a result, the Management Board of sees additional upside potential for its Chinese business in the medium-term. Among other initiatives plans to exploit this by opening a "tmall" shop in the second half of the year. Currently however, uncertainty and reluctance to purchase exist among Chinese customers as details of the revised regulation and its practical impact have not yet been clarified.

In addition to the initiatives for the Chinese business, the Management Board has initiated further measures to support the company's growth and to further improve profitability:
  - The migration of the ERP system to Microsoft AX is the basis to improving operational performance and allows scalability. At this point, the implementation of AX has largely been  completed. As expected, the conversion temporarily affects results in April and May

  - The integration of's foreign subsidiaries is progressing as planned - especially in IT, marketing and purchasing. This will lead to significant synergies within the next 12 to 24 months at continued strong growth.

Further information will be published with the announcement of our results for the first quarter 2016.

18.05.2016 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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Language:     English
Company: AG
              81379 Munich
Phone:        089 / 416 17 15-0
Fax:          089 / 416 17 15-11
ISIN:         DE000WNDL110
WKN:          WNDL11
Listed:       Regulated Market in Frankfurt (Prime Standard); Regulated
              Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart,
              Tradegate Exchange
End of Announcement                             DGAP News-Service
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