DGAP-News: A.S. Création Tapeten AG: Sales and earnings reached new record levels in 2007


A.S. Création Tapeten AG / Final Results

13.03.2008 

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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A.S. Création Tapeten AG, Gummersbach/Germany

(ISIN DE0005079909)

Sales and earnings reached new record levels in 2007

In the fiscal year 2007, A.S. Création Tapeten AG, Europe's leading
wallpaper manufacturer achieved the highest sales in the history of the
company. This was announced by the Managing Board at today's annual
accounts press conference. At € 167.6 million, Group sales were up 10.0% on
the previous year's € 152.4 million.

The higher sales are the result of the 16.6% rise in international
business. A.S. Création was able to achieve balanced growth in the
individual sales regions, which means that sales increased on a broad
basis. The Group’s domestic sales were more or less on a par with the
previous year. A.S. Création thus isolated itself from the general industry
trend of declining domestic sales. Foreign markets accounted for a higher
share of the Group's total sales. While 63.1% of the previous year's gross
sales were generated abroad, this figure rose to 66.8% in 2007.

Building on the increased sales, earnings before taxes also reached a new
record level in fiscal 2007. At € 14.6 million, they were up 14.9% on the
previous year’s € 12.7 million. As a result, the pre-tax return on sales
improved moderately from the previous year’s 8.3% to 8.7%. A more
pronounced increase in earnings, which would normally have been expected
against the background of the strong sales growth, was precluded by the
sharp rise in raw material and energy prices. Increased wage management and
maintenance costs as well as higher marketing expenses also weighed on
earnings.

As a result of special tax effects in 2006 and 2007, consolidated net
profit declined moderately from the previous year’s € 10.2 million to €
10.0 million in 2007. In 2006, net profit increased by € 1.9 million due to
the first-time capitalisation of the apportionable corporate income tax
credit. In 2007, the adoption of the corporate income tax reform in Germany
led to an adjustment of deferred taxes, which caused a € 1.1 million rise
in net profit. Adjusted for these special effects, net profit reflects the
higher earnings achieved by A.S. Création. At € 8.9 million, it was up 7.2%
on the previous year’s € 8.3 million.

The Managing Board and the Supervisory Board will propose to the General
Meeting of Shareholders to pay out a dividend of € 1.60 per share (2006: €
1.65). Based on earnings per share of € 3.59 (2006: € 3.65), this
represents a payout ratio of 44.6% (2006: 45.2%). A.S. Création thus sticks
to its dividend policy, which provides for a high payout ratio as long as
this is justified by the company’s financial situation, and underlines the
good reputation of A.S. Création as a high-dividend share.

The company’s growth strategy was again underpinned by high capital
expenditures in 2007. At € 11.2 million, they were up 50.9% on the previous
year’s € 7.4 million and allowed the A.S. Création Group to create new
jobs. As a result, the headcount increased sharply to a new record level of
675 on an annual average (2006: 653). The Managing Board plans to continue
the expansive capital expenditure programme and has announced investments
totalling approx. € 30 million for 2008 and 2009 with a view to expanding
its leading position in the European wallpaper market. Capital expenditures
will focus on additional production and logistics capacity.

The company’s projections for fiscal 2008 provide for sales of approx. €
185 million and net profit of between € 10.5 million and € 11.0 million.

The Group’s key figures for 2007 at a glance:

                                                       2007     2006 Change
--------------------------------------------------  -------  ------- ------
Sales                                     EUR '000  167,633  152,373  10.0%
Earnings before interest and taxes (EBIT) EUR '000   15,005   13,747   9.2%
Earnings before income taxes              EUR '000   14,562   12,672  14.9%
Net profit                                EUR '000    9,982   10,174  -1.9%
Earnings per share                       EUR/share     3.59     3.65  -1.6%
Cash-flow                                 EUR '000   17,926   16,199  10.7%
Capital expenditures                      EUR '000   11,232    7,443  50.9%
Depreciation                              EUR '000    8,397    7,985   5.2%
Number of employees (average)                           675      653   3.4%


Gummersbach, March 13, 2008

A.S. Création Tapeten AG

The Managing Board

Inquiries:

Maik Krämer, Director of Finance, phone +49-(0)22 61/542-387, fax +49-(0)22
61/542-304,
e-mail: m.kraemer@as-creation.de

The full annual report is available at:

www.as-creation.de 

or from:
A.S. Création Tapeten AG, Mrs. Börngen, Südstr. 47, D - 51645 Gummersbach,
phone +49-(0)22 61/542-350,

e-mail: investor@as-creation.de
DGAP 13.03.2008 
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Language:     English
Issuer:       A.S. Création Tapeten AG
              Südstraße 47
              51645 Gummersbach
              Deutschland
Phone:        +49 (0)22 615 42-0
Fax:          +49 (0)22 6154 2-3 04
E-mail:       investor@as-creation.de
Internet:     http://www.as-creation.de
ISIN:         DE0005079909
WKN:          507990
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Stuttgart, München, Hamburg, Düsseldorf
End of News                                     DGAP News-Service
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