RESTAMAX PLC'S INTERIM REPORT FOR 1 JANUARY-31 DECEMBER

Restamax Plc INTERIM REPORT 20 FEBRUARY 2015 at 10:00AM RESTAMAX PLC'S INTERIM REPORT FOR 1 JANUARY-31 DECEMBER 2014 Turnover increased by 33.2 per cent and profitability improved TURNOVER AND RESULT Group's result for October-December 2014 Entire Group: The Group's turnover was MEUR 26.4 (MEUR 17.9), growth of 46.9 per cent. EBITDA was MEUR 4.5 (MEUR 3.3), growth of 35.3 per cent. Operating profit was MEUR 2.3 (MEUR 2.0), growth of 13.1 per cent. Restaurant business: The turnover of the restaurant business segment was MEUR 24.6 (MEUR 17.9), growth of 36.9 per cent. EBITDA was MEUR 4.1 (MEUR 3.3), growth of 23.4 per cent. Operating profit was MEUR 2.2 (MEUR 2.0), growth of 5.4 per cent. Labour hiring business: The turnover of the labour hiring business segment was MEUR 4.2. EBITDA was MEUR 0.5. Operating profit was MEUR 0.2. (New business segment, no comparison figures.) Group's result for 2014 Entire Group: The Group's turnover was MEUR 86.7 (MEUR 65.0), growth of 33.2 per cent. EBITDA was MEUR 12.0 (MEUR 9.1), growth of 31.3 per cent. Operating profit was MEUR 5.3 (MEUR 4.1), growth of 30.0 per cent. Restaurant business: The turnover of the restaurant business segment was MEUR 83.7 (MEUR 65.0), growth of 28.7 per cent. EBITDA was MEUR 11.4 (MEUR 9.1), growth of 25.1 per cent. Operating profit was MEUR 5.0 (MEUR 4.1), growth of 22.4 per cent. Labour hiring business: The turnover of the labour hiring business segment was MEUR 6.8. EBITDA was MEUR 0.7. Operating profit was MEUR 0.3. (New business segment, no comparison figures.) As expected, the income of the review period was clearly better than that of last year. EBITDA for the entire Group also increased when compared to the same period last year. The reasons behind the increase in turnover are the investments made during the financial period. Non-recurring items from business acquisitions have affected the income for the period under review. The integration of a new business segment into the Group's business is starting, which can be seen in the level of profitability of the labour hiring business for the period under review. PROSPECTS FOR 2015 Result management (as of 20 February 2015): Restamax estimates that the Group's turnover will exceed EUR 100 million during the 2015 financial period, and the EBITDA and operating profit will relatively improve from the previous financial period. +----------------------------------------+---------+---------+--------+--------+ |KEY FIGURES |  |  |  |  | +----------------------------------------+---------+---------+--------+--------+ |Restamax Group in total |  |  |  |  | +----------------------------------------+---------+---------+--------+--------+ |(TEUR) | 10-12/14| 10-12/13| 1-12/14| 1-12/13| +----------------------------------------+---------+---------+--------+--------+ |  |  |  |  |  | +----------------------------------------+---------+---------+--------+--------+ |SIGNIFICANT FIGURES, |  |  |  |  | |entire group | | | | | +----------------------------------------+---------+---------+--------+--------+ |Turnover | 26,358| 17,947| 86,653| 65,033| +----------------------------------------+---------+---------+--------+--------+ |EBITDA | 4,519| 3,339| 12,008| 9,146| +----------------------------------------+---------+---------+--------+--------+ |EBITDA, % | 17.1%| 18.6%| 13.9%| 14.1%| +----------------------------------------+---------+---------+--------+--------+ |Operating profit | 2,308| 2,041| 5,265| 4,051| +----------------------------------------+---------+---------+--------+--------+ |Operating profit, % | 8.8%| 11.4%| 6.1%| 6.2%| +----------------------------------------+---------+---------+--------+--------+ |Review period result | 1,554| 1,727| 3,334| 2,908| +----------------------------------------+---------+---------+--------+--------+ |To shareholders of the parent company | 1,499| 1,556| 3,451| 2,565| +----------------------------------------+---------+---------+--------+--------+ |To minority shareholders | 55| 171| -117| 344| +----------------------------------------+---------+---------+--------+--------+ |Earnings per share (euros) to the | | | | | |shareholders of the parent company | 0.09| 0.11| 0.22| 0.24| +----------------------------------------+---------+---------+--------+--------+ |Interest-bearing net liabilities |  |  | 18,944| 6,184| +----------------------------------------+---------+---------+--------+--------+ |Gearing ratio, % |  |  | 48.1%| 21.9%| +----------------------------------------+---------+---------+--------+--------+ |Equity ratio, % |  |  | 47.2%| 60.9%| +----------------------------------------+---------+---------+--------+--------+ |Return on investment, % (p.a.) |  |  | 8.4%| 10.7%| +----------------------------------------+---------+---------+--------+--------+ |Dividend per share (euros)* |  |  | 0.22| 0.09| +----------------------------------------+---------+---------+--------+--------+ *Board of Directors' proposal +-------------------+---------+---------+--------+--------+ |Restaurant business|  |  |  |  | +-------------------+---------+---------+--------+--------+ |(TEUR) | 10-12/14| 10-12/13| 1-12/14| 1-12/13| +-------------------+---------+---------+--------+--------+ |  |  |  |  |  | +-------------------+---------+---------+--------+--------+ |Turnover | 24,565| 17,947| 83,666| 65,033| +-------------------+---------+---------+--------+--------+ |EBITDA | 4,122| 3,339| 11,444| 9,146| +-------------------+---------+---------+--------+--------+ |EBITDA, % | 16.8%| 18.6%| 13.7%| 14.1%| +-------------------+---------+---------+--------+--------+ |Operating profit | 2,151| 2,041| 4,957| 4,051| +-------------------+---------+---------+--------+--------+ |Operating profit, %| 8.8%| 11.4%| 5.9%| 6.2%| +-------------------+---------+---------+--------+--------+ |  |  |  |  |  | +-------------------+---------+---------+--------+--------+ |SIGNIFICANT FIGURES|  |  |  |  | +-------------------+---------+---------+--------+--------+ |  |  |  |  |  | +-------------------+---------+---------+--------+--------+ |Material margin, % |  |  | 74.0%| 73.9%| +-------------------+---------+---------+--------+--------+ |Staff expenses, % |  |  | 29.6%| 30.1%| +-------------------+---------+---------+--------+--------+ +----------------------+---------+---------+---------+--------+ |Labour hiring business|  |  |  |  | +----------------------+---------+---------+---------+--------+ |(TEUR) | 10-12/14| 10-12/13| 1-12/14*| 1-12/13| +----------------------+---------+---------+---------+--------+ |  |  |  |  |  | +----------------------+---------+---------+---------+--------+ |Turnover | 4,199|  | 6,833|  | +----------------------+---------+---------+---------+--------+ |EBITDA | 530|  | 696|  | +----------------------+---------+---------+---------+--------+ |EBITDA, % | 12.6%|  | 10.2%|  | +----------------------+---------+---------+---------+--------+ |Operating profit | 157|  | 308|  | +----------------------+---------+---------+---------+--------+ |Operating profit, % | 3.7%|  | 4.5%|  | +----------------------+---------+---------+---------+--------+ |  |  |  |  |  | +----------------------+---------+---------+---------+--------+ |SIGNIFICANT FIGURES |  |  |  |  | +----------------------+---------+---------+---------+--------+ |  |  |  |  |  | +----------------------+---------+---------+---------+--------+ |Staff expenses, % |  |  | 84.0%|  | +----------------------+---------+---------+---------+--------+ * Figures include a non-recurring asset transfer tax of approximately EUR 125,000 from a corporate transaction. The Staff Invest acquisition was finalised on 1 August 2014 and the Huippu Henkilöstöpalvelut acquisition was finalised on 15 September 2014. CEO MARKKU VIRTANEN The last quarter of 2014 as expected Restamax's growth speed has been upbeat throughout its history. The listing supporting our growth strategy and the related share issue that took place at the end of 2013 have made possible investments that bring significant competitive advantage; a large number of these were realised during 2014. The last quarter of 2014 met expectations. Despite the weak overall financial situation, the decline in the consumers' buying power and loss of demand, we have managed to retain our long-term profitability at a good level. Even though we lowered our profit guidance in October due to the poor September result, we achieved an excellent result this year under rather challenging market conditions. The strong growth of our Group resulted in more non-recurring items than expected during 2014, some EUR 600,000 in total. These included expert fees, the integration costs of the new labour hiring segment and asset transfer taxes. The result was also affected by the indirect integration costs of new business and the opening of new restaurants. The general increase in the cost level also affected the investments made more than was expected, and this in turn affected operating income. The business acquisitions made during 2014 were completed during the past financial period, which means that the purchased businesses are now fully available to us. The downturn of the business continued In 2014, the restaurant business experienced a downtrend. The sale of alcohol continued to decline and the growth in the sale of food has slowed down. Customer behaviour is also undergoing a change. Customers are consuming less than before and their average purchases are smaller. A turn for the positive can be seen in the partial reinstitution of deductible representation expenses that allows companies to deduct 50% of their representation expenses in their income taxation starting from the beginning of 2015. This decision will support the demand for tourism and restaurant services, increase employment and bring tax revenues to the State. Even though the restaurant industry is facing a number of challenges, the future appears bright in the longer term. I believe that the economic recovery and urbanisation will continue to increase demand for services in this field. The tourism and restaurant sector creates a substantial number of jobs and brings the State in excess of EUR 5 billion in tax revenues each year. I hope that the decision-makers acknowledge the importance of this sector and make good decisions concerning the value added tax and alcohol taxation in order to ensure the prerequisites for growth. A strong growth platform for labour hiring services We began operating in the labour hiring segment in August. Smile Henkilöstöpalvelut Oy will help us ensure the sufficient availability of personnel in the future and support the growth of our company. During the latter half of the year, we made a number of changes, investments and corporate arrangements in order to integrate the new segment into our activities. Labour hiring will remain a substantial part of our business, and the actions taken now will form a strong growth platform for the future. Motivated personnel and comprehensive partner network I am rather pleased with the level of commitment and operation of our personnel in 2014. The personnel resources that were released due to the listing are now fully available to us. During the last quarter we made a number of successful changes in the Executive Team that will support the implementation of our future growth plan. On 1 March 2015, Vice CEO Harri Niskanen will join us in developing our activities. His valuable professional expertise will strengthen the leadership of our Group. The significance of our partners has also increased further. We have expanded our partner network and boosted the cooperation with our contract suppliers. Supplementing the restaurant portfolio During the period under review, we expanded our operations towards the growing northern tourism centres in Ruka and Pyhä by opening five restaurants. We also added three new nightclubs into our portfolio. The purchase of the Apollo and Tivoli nightclubs expanded our operations into Oulu, a new market area; in Pori, we strengthened our current market position by purchasing the Cabaret nightclub. We also strengthened our cooperation with Hans Välimäki by opening the August von Trappe Belgian restaurant in Tampere; in early 2015, this restaurant chain expanded into Helsinki. Today, our Group comprises approximately 100 restaurants in different parts of Finland.Today, our Group comprises approximately 100 restaurants in different parts of Finland. Despite the challenging general economic situation, we were able to maintain good profitability in 2014; it was clearly above the average profitability within the industry. Our goal is to maintain good profitability and to exceed a turnover of MEUR 100 during the 2015 financial period. It seems that our turnover goal will be met clearly. Markku Virtanen CEO DIVIDEND, AND DIVIDEND POLICY Restamax Plc's distributable profits on 31 December 2014 were EUR 46,804,621.77, of which the share of the financial period is EUR 10,027,067.44. There have been no significant changes to the company's financial situation since the end of the financial period. Restamax Plc's Board of Directors proposes to the Annual General Meeting to be held on 22 April 2015 that EUR 0.22 per share, a total of EUR 3,603,516.40 (16,379,620 shares), be paid as dividend for the financial period ended on 31 December 2014 based on the adopted balance sheet. Restamax's goal is to pay a competitive dividend each year. When determining the dividend level, the amount of distributable unrestricted equity, the company's profit development and future prospects are considered. CASH FLOW, INVESTMENTS AND FINANCING The Group's operating net cash flow in 2014 was MEUR 8.2 (MEUR 2.9). During the review period ended, Restamax has made significant corporate acquisitions and growth investments, for example by expanding its operations into labour hiring services and opening new restaurants. The Group's interest-bearing net liabilities at the end of December were MEUR 18.9 (MEUR 6.2). The net financial expenses in January-December were EUR 548,400 (EUR 451,200). Equity ratio was 47.2 per cent (60.9 per cent) and gearing ratio 48.1 per cent (21.9 per cent). RESTAMAX PLC'S FINANCIAL REPORTING IN 2015 Restamax Plc will publish the 2014 interim report on 20 February 2015. Restamax Group's 2014 annual report will be published during week 14. The interim reports for 2015 will be published as follows: January-March 8 May 2015 January-June 7 August 2015 January-September 6 November 2015 Restamax Oyj's Annual General Meeting will be held in Tampere on Wednesday 22 April 2015. The invitation to the general meeting will be published during week 14. The full Restamax interim report for January-December 2014 is appended to this release in PDF format. The interim report is also available on the company's website at www.restamax.fi. Tampere, 20 February 2015 RESTAMAX PLC Board of Directors APPENDIX: Restamax Plc Interim Report 2014 More information: Markku Virtanen, Restamax Plc, CEO, tel. +358 400 836 477 Timo Laine, Restamax Plc, Chairman of the Board of Directors, tel. +358 400 626 064 Distribution: NASDAQ OMX Helsinki Major media www.restamax.fi Restamax Plc is a Finnish restaurant business group established in 1996 that also offers labour hire services. The company, which listed at NASDAQ OMX Helsinki Oy in 2013 and became the first Finnish listed restaurant company, has continued to grow steadily throughout its history. The Group companies include approximately 100 restaurants, cafés, pubs and nightclubs all over Finland. The Group's well-known restaurant concepts include, among others, the von Trappe restaurants, Bodega Salud, Viihdemaailma Ilona, American Diner, Daddy's Diner, Stefan's Steakhouse, and the Galaxie and Space Bowling & Billiards entertainment centres. Restamax Plc employs between 900 and 1,000 people depending on the season. The turnover for 2014 was MEUR 86.7 and EBITDA MEUR 12.0. Restamax company website: www.restamax.fi, Restamax consumer website: www.ravintola.fi [HUG#1895909]