Lloyd Fonds Aktiengesellschaft / Quarter Results 14.08.2008 Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - Financial market crisis hitting the financial services sector more severely than expected at the beginning of the year - Equity placements of around EUR 175 million in the first half of 2008 - Net profit of EUR 3.6 million for the first half - Reorganized sales structures now with a greater reach Hamburg, August 14, 2008. Lloyd Fonds AG, a specialist in closed-end investment funds and structured investment products, recorded equity placements of around EUR 175 million in the first half of 2008, down roughly EUR 119 million on the first six months of 2007. However, all companies in the financial services sector have found that the crisis afflicting the global capital market is proving to be more protracted and severe than expected even only a few months ago. In this environment, there has been a steady decline in investor interest in closed-end funds, which invest in tangible assets. As a result of the lower placement and fund-structuring income, Lloyd Fonds AGs consolidated net profit after tax - including interim profits and profits from the disposal of assets - came to EUR 3.6 million in the first half of 2008, down EUR 3.4 million on the same period one year earlier. In the second quarter of 2008, Lloyd Fonds achieved consolidated net profit of EUR 4.0 million, compared with EUR 2.9 million in the same period one year earlier. Sales restructuring efforts further reinforcements being implemented Of the total placements of EUR 175 million for the first half of 2008, the strongest asset class, closed-end ship funds, accounted for EUR 64 million and the open-end ship fund for EUR 9 million. Aircraft funds attracted equity of EUR 53 million, real estate EUR 29 million and traded UK endowment policies EUR 5 million in the same period. The new asset class secondary-market fund shares contributed EUR 15 million. Even so, at around EUR 155 million, the volume of equity not placed via exclusive arrangements widened substantially in the first half of the year. This trend reflects the mounting reach of Lloyd Fonds sales activities. At the same time, it testifies to the results of Lloyd Fonds efforts to reorganize its sales structures over the past few months despite the fact that the effects of these activities did not yet make themselves felt in the first half of 2008. Against this backdrop, Lloyd Fonds generated sales of EUR 28.2 million in the first half of 2008, down by around EUR 20.3 million on the same period one year earlier. The previous years figure had been inflated by income of EUR 17.6 million from the placement of Lloyd Fonds 'Schiffsportfolio II' via a major bank. At the same time, an effect arising from a change in the method for realizing income made itself felt in the first half of 2008: as of this year, sales from the arrangement of finance are being recognized in accordance with the progress in the completion of placement. Previously, they had been recognized in full upon completion of the prospectus. This change resulted in a decline of EUR 3.2 million in income from the arrangement of finance to EUR 0.8 million in the first half of 2008. As the cost-of-sales ratio was virtually unchanged, gross profit defined as the sum total of sales and changes in inventories net of the cost of sales declined by the same rate as sales by roughly 44 % to EUR 11.2 million. Whereas depreciation expense and other operating result in the first half were largely unchanged over the previous year, personnel costs climbed by 23 % to EUR 7.9 million due to a corresponding increase in headcount and the retirement of a member of the Management Board (and the related expenditure) during this period. In the second quarter, two shipping companies in which the Lloyd Fonds Group holds material shares sold shipbuilding contracts for 12,800 TEU container ships. The resulting income of EUR 5.3 million was reported within the share of profit of associates on a proportionate basis and made a substantial contribution to the increase in EBIT in the second quarter to EUR 5.2 million (first half of the year: EUR 3.4 million). As net financial result was balanced, consolidated net profit of EUR 4.0 million was achieved in the second quarter. More favorable conditions expected for the second half of the year Over the past few months, Lloyd Fonds has taken a number of steps to position itself more effectively in the more difficult market environment. It plans to improve equity placements in the third and fourth quarters by launching innovative investment products and by additionally strengthening its sales clout. Accordingly, it is preparing new products which stand apart from peer offerings in terms of both the assets selected and the structure of the investment products. For example, Lloyd Fonds is planning three exclusive ship funds as well as a fund investing in a hotel building for the third quarter. This is being accompanied by negotiations with banks and independent sales partners for further placement arrangements. As a result, Lloyd Fonds AG is confident of boosting placement figures in the second half of 2008 and most definitely in 2009. As well as this, it has started to review the efficiency of all of its processes and cost structures. Scaled-back full-year forecast for 2008 Recent developments show that the decline in demand caused by the turbulence in the financial markets is also exerting pressure on sales of closed-end fund products. Although some factors - e.g. the introduction of the definitive withholding tax in Germany, which will heighten the appeal of fund products - point to a recovery in demand in this market segment in the second half of 2008, this scenario assumes an imminent and sustained normalization of the financial markets as a whole. In any case, Lloyd Fonds AG has trimmed its full-year equity placement and net profit forecasts due to the combined absence of major institutional subscriptions and agreements for large-scale exclusive placements with a bank. On the basis of plans and the preliminary figures for the first half of the year, the Management Board had no choice but to revise its guidance downwards. Accordingly, Lloyd Fonds expects full-year equity placements of EUR 390 million for 2008 and net profit for the year of EUR 12 million. Figures at June 30, 2008 in EUR millions H1-2008 H1-2007 Δ Q2-2008 Q2-2007 Δ Sales 28.2 48.5 -41.9% 16.9 27.3 -38.1% Non-issuing income 10.6 9.3 14.0% 8.6 3.8 126.3% EBIT 3.4 9.2 -63.0% 5.2 4.0 30.0% Consolidated profit for the period 3.6 7.0 -48.6% 4.0 2.9 37.9% EBIT margin 12.8% 19.0% -6.2 pp 30.8% 14.8% 16.0 pp Return on sales 12.0% 14.5% -2.5 pp 23.7% 10.8% 12.9 pp Total assets 129.5 99.4 30.3% Equity 73.3 71.8 2.1% Equity ratio 56.7% 72.3% -15.6 pp Earnings per share (in EUR) 0.28 0.56 -50.0% 0.32 0.23 39.1% Headcount (average) 152 121 25.6% 156 126 23.8% Personnel costs 7.9 6.4 23.4% 4.4 3.5 24.4% Personnel expense ratio 28.0% 13.2% 14.8 pp 25.8% 12.8% 13.0 pp Fund performance in EUR millions H1-2008 H1-2007 Δ Q2-2008 Q2-2007 Δ Equity placements, first half/second quarter 175 294 -40.5% 96 178 -46.1% Equity placed, cumulative 1,798 1,465 22.7% Number of subscribers, cumulative 45,660 40,669 Assets held in trust, cumulative 1,391 1,224 13.6% Contact: Dr. Goetz Schlegtendal Lloyd Fonds AG Amelungstraße 8-10 20354 Hamburg Tel: +49-40-325678-0 Fax: +49-40-325678-99 Mail: ir@lloydfonds.de Contact: Dr. Goetz Schlegtendal Lloyd Fonds AG Amelungstraße 8-10 20354 Hamburg Tel: +49-40-325678-0 Fax: +49-40-325678-99 Mail: ir@lloydfonds.de DGAP 14.08.2008 --------------------------------------------------------------------------- Language: English Issuer: Lloyd Fonds Aktiengesellschaft Amelungstr. 8-10 20354 Hamburg Deutschland Phone: +49 (0)40 32 56 78-0 Fax: +49 (0)40 32 56 78-99 E-mail: info@lloydfonds.de Internet: www.lloydfonds.de ISIN: DE0006174873 WKN: 617487 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-News: Crisis in the financial markets also taking its toll on Lloyd Fonds
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