FNG N : sets strong first half year – REBITDA increases by 30.2% to EUR 25.1 million

Mechelen, September 24, 2018, 07.00h - FNG N.V. (FNG, Euronext Amsterdam, Euronext Brussels) ('FNG') announces its half-year figures and presents a strong performance again.

FNG, the Benelux fashion group which designs and distributes branded clothes and shoes, realised during the first 6 months of 2018 revenue of EUR 251.1 million and an REBITDA of EUR 25.1 million, an increase by 30.2% compared to the first half of 2017 (EUR 19.3 million). Sales increased by 10.0%.

Dieter Penninckx, CEO of FNG: 'FNG achieves for the first time sales of EUR 500 million on an annual basis and a REBITDA margin exceeding 10% for the entire group. This is achieved by focussing on digitalisation, in-depth vertical integration and the development and rollout of new retail concepts. Miss Etam and the new Brantano are back on the radar. The unusual market circumstances emphasises the strengths of FNG in the back and front office, with an outcome that is to be applauded.'

Group revenue for the first 6 months of 2018 amounts to EUR 251.1 million, of which almost half (48.3%) was generated by FNG Roots, the brand portfolio of FNG. Miss Etam contributed revenue of EUR 51.9 million and Brantano [1] revenue of EUR 77.9 million, respectively 20.7% and 31.0% of the Group revenue. Revenue of FNG Roots also increased compared to the first half of 2017 (+1.1%).

For the first half of 2018, Miss Etam and Brantano reported respectively a REBITDA of EUR 2.5 million and EUR 5.8 million, an increase of respectively 63.3% and 166.3%. Furthermore, FNG Roots reported also strong performance and increased REBITDA to EUR 16.8 million (+7.8%).

The leverage ratio (net financial debt / REBITDA) decreased from 3.19 to 2.81 during the first 6 months of 2018, considering the REBITDA over 12 months (EUR 51.2 million). Net financial debt for the period does not take into account the resources raised through the capital increase of beginning July.

[1] Including revenue of Concept Fashion Group and Suitcase, acquired end 2017

Statement from the Management Board

I, the undersigned, Dieter Penninckx, CEO, declare to the best of my knowledge, that:

a) the set of condensed financial statements prepared in accordance with the applicable accounting standards gives a true and fair view of the assets, liabilities, financial position and results of the issuer and the undertakings included in the consolidation.

b) the interim report is giving a true overview of the important events and the most important transactions with related parties that have occurred during the first six months of the accounting year, and the effect thereof on the condensed financial overviews, as well as a description of the most important risks and uncertainties for the remaining months of the accounting year.

General disclosures

General

The condensed consolidated interim financial statements of FNG N.V. (Mechelen, Belgium) included in this interim report, consisting of the condensed consolidated statement of financial position as at 30 June 2018; the consolidated statement of comprehensive income; the consolidated cash-flow statement and the consolidated statement of changes in equity for the period from 1 January 2018 to 30 June 2018, plus the disclosures, have not been reviewed by our external auditor.

The Company's Management Board is responsible for drafting and disclosing the interim financial statements in accordance with IAS 34, 'Interim Financial Reporting', as adopted by the European Union. The disclosures are an integral part of this condensed consolidated interim report.

FNG is located in Mechelen, Belgium and listed on Euronext Amsterdam and Euronext Brussels.

The consolidated interim report of FNG N.V. (the 'Company') for the first half of 2018 includes the Company and its operating subsidiaries (collectively referred to as the 'Group'). This condensed consolidated interim report has been prepared in accordance with International Financial Reporting Standards (IFRS) IAS 34, 'Interim Financial Reporting'. It does not include all the information required for full financial statements and is to be read in conjunction with the Group's consolidated financial statements for 2017.

Accounting policies and principles for the determination of the result

The accounting policies and principles for the determination of the result are identical to those included in the 2017 consolidated financial statements. The application of new standards has not resulted in any significant changes in the figures and notes included in these half-year statements for 2018.

Related party transactions

In the first half year of 2018, there was no significant change in the nature of transactions with related parties as those disclosed in the consolidated financial statements of the Group as at and for the year ended December 31, 2017.

Estimates

The preparation of interim reports requires that the management makes a judgement and uses estimates and assumptions that affect the application of financial reporting standards, the reported value of assets and liabilities and the level of income and expenses. Actual results may vary from these estimates.

Unless otherwise specified, in the preparation of this condensed consolidated interim report the significant judgements formed by the management in the application of the Group's financial reporting standards and the main sources of estimation used are identical to the judgments and sources used in preparing the consolidated financial statements for the 2017 financial year.

Risk

The risks recognised by the company and the internal control environment do not vary significantly from the information contained on this subject in the 2017 annual report.

Events after the reporting date

On 9 July 2018, the conditional capital increase in the framework of the authorised capital, as announced in the first half of 2018, was realised. In the context of this capital increase, 2,220,771 new shares were issued, in order to increase the capital of FNG NV by EUR 177,661.68 and a share premium of EUR 59,783,155.32. As a result of this transaction, the registered share capital of FNG amounts to EUR 896,053.04, represented by 11,200,663 shares. The new and existing shares are listed in Euronext Brussels and Euronext Amsterdam.

On 18 July 2018, FNG announced that it selected Belgium as its home member state.

On 13 August 2018, FNG Benelux Holding NV, an indirect subsidiary of FNG NV, issued a Euro Medium Term Note Programme for a total amount of EUR 100,000,000. The EMTN Programme allows FNG Benelux Holding NV to issue notes (i.e. bonds) at different times. On 17 August 2018, FNG Benelux Holding NV issued a first series of notes in the context of the EMTN Programme for a total amount of EUR 10,000,000. The notes have a maturity of 5 years and offer a gross actuarial yield of 5%. The notes have a nominal value of EUR 100,000 per note and are unlisted.

On 16 July 2018, FNG Group NV, an indirect subsidiary of FNG NV, prematurely redeemed part of the bond loan it had issued for a total amount of EUR 5,000,000 and an interest rate of 7.45%, for an amount of EUR 4,350,000. The remaining amount of EUR 650,000 of the bond loan is still outstanding.

On 31 August 2018, at the request of Coltaparte B.V., part of the subordinated loan of EUR 5,000,000 granted by Coltaparte B.V. to Miss Etam Holding B.V., an indirect subsidiary of FNG NV, was prematurely redeemed for an amount of EUR 2,500,000. The remaining amount of EUR 2,500,000 of the loan is still outstanding.

On 6 September 2018 FNG announced that it was accorded the following new Legal Entity Identifier Code ('LEI Code'): 894500DNMOR5GNJF6722.

For more information:

Dieter Penninckx
Director and CEO

FNG NV
Bautersemstraat 68A
2800 Mechelen
Belgium

Trade register number:
0697.824.730

Tel: [phone]
[e-mail]