Santa Fe Group
EAC Interim Report H1 2014 – Company announcement No. 10/2014

DGAP-News: A/S Det Østasiatiske Kompagni

21.08.2014 / 09:06

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IMPROVED EARNINGS AHEAD OF Q3 PEAK SEASON

Performance in the off-seasonal first half-year was on track with solid growth
in the higher-margin relocation services in EMEA and Australia, increased
contribution from corporate contracts as well as higher margins. The Santa Fe
Group furthermore continued to add new international corporate customers to the
portfolio. Business in Asia was affected by a drop in inbound relocations to
the region. 

  -- EAC Group Revenue
 of DKK 1,066m (DKK 1,129m) was unchanged in local currencies, but
     decreased 5.6 per cent in DKK due to adverse
developments in exchange rates
.
  -- EAC Group EBITDA
 of DKK 11m (DKK 6m) was improved despite the negative effect from DKK 3m
     one-off costs in H12014 related to the reorganisation of EAC Copenhagen.
  -- Santa Fe Group EBITDA
 improved by 44.6 per cent in local currencies  to DKK 26m (DKK 22m)
     corresponding to an EBITDA margin of 2.4 per cent (1.9 per cent).
     Disregarding one-offs of DKK 6m in H1 2013, EBITDA increased by DKK 10m or
     117.8 per cent in local currencies.
  -- Performance in June, leading up to the peak season in the northern
     hemisphere, and client bookings for the coming months support the
     expectations of significantly increased activity and improved performance.
  -- EAC initiates a controlled generational handover
 with the search for a new CEO for the consolidated operation. The new CEO
     will replace Niels Henrik Jensen, President and CEO of EAC, and Lars Lykke
     Iversen, CEO of the Santa Fe Group, who both have declared their intention
     to retire, when a new management is in place.
  -- Santa Fe Group full-year outlook is unchanged - EAC Parent affected by
     non-recurring restructuring expenses:
 EAC Group Revenue is expected in the range of DKK 2,355m - 2,550m. EAC
     Group EBITDA before special items is expected in the range of DKK 105m -
     125m of which the Santa Fe Group EBITDA is expected to be in the range of
     DKK 135m - 155m while EAC Parent costs before restructuring expenses are
     expected at approx. DKK 30m. Total non-recurring restructuring expenses in
     2014 are expected to be around DKK 18m, of which DKK 15m in H2. EAC Group
     EBITDA is expected to be in the range of DKK 87m - 107m (DKK 105m - 125m in
     the previous outlook).



Commenting on the results in H1, CEO and President Niels Henrik Jensen says:

'We experience an increasing impact from the large corporate tenders won during
2013, and we have continued to sign new significant global contracts in the
first half of 2014. With strong bookings leading up to the peak season during
summer, we remain confident of our expectations for the full year and the
realisation of the expected turn-around for Santa Fe. 



Our results are affected by a strong increase in relocation services in EMEA
and Australia as well as improving margins. The domestic market in Australia is
showing encouraging signs of improvement which has driven revenue, and combined
with continued cost containment we have secured a strong improvement of our
operational performance in local currencies.' 



Commenting on the generational handover, Niels Henrik Jensen says:



'The job that I undertook in 2006 is about to be completed: The conglomerate
has been unwound and EAC is now a one-business company - the Santa Fe Group.
Latest by this time next year, we expect that the full integration of Santa Fe
and EAC will be completed. Santa Fe has turned the corner on track for improved
profitability, ready to harvest the benefits of scale as the world economy
recovers. To realize the attractive potential that lies ahead, Santa Fe needs a
committed long-term management, and I have found that this is the right time
for me to announce my retirement. Obviously, I will remain focused on
fulfilling my responsibilities in the best interest of all our stakeholders
until a new management is effectively in place - which we expect to be within
the coming 12 months.' 



Chairman of the Board of EAC, Henning Kruse Petersen says:



'After the past years of successful transformation, we are now standing at the
threshold of a new phase, which will lead to a whole new corporate profile and
structure. Together with Niels Henrik Jensen and Lars Lykke Iversen, the Board
of Directors acknowledges that this is a good time to initiate the process of
finding the next generation management with the long-term commitment to
realising the new, global potential of our company. We are committed to finding
the best person for the job - and I am confident that the transition process
will be smooth with the full support from Niels Henrik Jensen, Lars Lykke
Iversen and the experienced corporate and regional management teams in the
Santa Fe Group, making sure that we maintain full momentum and keep our
strategic targets in focus on the way.' 





For further information, please contact:



Niels Henrik Jensen

President and CEO

Telephone: +45 3525 4300
News Source: NASDAQ OMX



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Language:    English                        
Company:     A/S Det Østasiatiske Kompagni  
 
 
             Denmark                        
ISIN:        DK0010006329                   
 
 
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