Ad hoc announcement pursuant to section 15 WpHG: DF Deutsche Forfait AG projects consolidated loss for the fiscal year 2013

12Feb2014

One-time expenses caused by value-added tax repayments and as a result of DF Deutsche Forfait AG being added to US OFAC sanctions list

On 12 February, DF Deutsche Forfait AG (Prime Standard, ISIN: DE0005488795) decided, for special reasons, to establish a provision for retrospective tax payments for past years of approx. EUR 2.2 million in the context of the preparation of the consolidated financial statements. Due to this and other one-time effects as well as significantly slower-than-expected business in the fourth quarter of 2013, the company is now projecting a consolidated loss after tax of between EUR 3.0 Mio. and EUR 3.3 Mio.

The provision for retrospective tax payments has primarily been established in the light of new findings regarding the accrual of value-added tax amounts whose eligibility for offsetting or charging to third parties has not been definitively established. In case these value-added tax  amounts cannot be offset or charged to third parties, the retrospective tax payments will be fully recognised in profit/loss. Besides the provisions for the retrospective value-added tax payments, the increased level of trade receivables at the end of the year required higher risk provisions. The increased receivables and the lower earnings are attributable to delays in outplacement. As a result, the forfaiting volume, at EUR 85 Mio., and the margin clearly fell short of the company’s expectations in the fourth quarter. The fact that the company has been added to the sanction list of the US Office of Foreign Assets Control (OFAC) retroactively impaired the company’s result for 2013, as it became clear yesterday that receivables in the amount of EUR 1.6 million have to be derecognised. OFAC has accused DF Deutsche Forfait AG of having violated the trade sanctions against Iran. DF Group categorically denies these charges and is presently in the process of refuting the allegations. Total one-time expenses amount to approx. EUR 3.8 Mio. Equity capital of approximately EUR 23 million as of 31 December 2013 (after EUR 26.5 million as of 30 September 2013) means that the company is still sufficiently and solidly financed in spite of the anticipated loss.

The preliminary consolidated figures for the 2013 financial year will be published as planned on 7 March 2014.

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