Warimpex Finanz und Beteiligungs : Russia crisis expected to hit 2014 earnings hard

• Measurement and foreign currency losses in Russia were the key reasons for the loss of the period of EUR 35.3 million
• Positive operating performance in countries not impacted by the Russia crisis, NOP per hotel room up by a total of 2 per cent to EUR 8,954
• Cash flow from operating activities up 7 per cent to EUR 19.8 million
• Sale of two office towers at AIRPORTCITY St. Petersburg completed in the first quarter of 2015
Vienna/Warsaw, 15 April 2015 - According to preliminary figures, Warimpex Finanz- und Beteiligungs AG's annual earnings for 2014 will prove considerably muted. This is because of - non-cash - foreign exchange losses due to a weak Russian rouble, lower property valuations in Russia and weaker operating performance, especially at hotels whose guests come primarily from Russia and Ukraine.
In 2014, operating business in the hotels segment was positive in the markets not impacted by the Russia crisis. Most of these hotels in the portfolio posted a good performance. Streamlining the portfolio as a result of the sale of the five-star hotels in Prague also impacted positively. This is evidenced by the 2 per cent increase in NOP per available room over the entire hotel portfolio.
However, the 2014 results of some hotels were characterised by the effects of the Russia crisis and rouble depreciation, suffering significant revenue declines as a result. For example, revenues at the Dvorak hotel in Karlovy Vary (Czech Republic) fell by 20 per cent due to the absence of Russian and Ukrainian guests. On a euro basis, revenues in the three Russian hotels were around 10 per cent lower than the previous year, which is less to do with lower occupancy than with the weak rouble and thus lower room rates. Due to these declines in revenues, which were not compensated for by revenue increases in other hotels, and to hotel sales in Prague and an accompanying reduction in the number of rooms, revenues in the Hotels segment fell by a total of 11 per cent year on year - 5 per cent when joint ventures are included on a proportionate basis - to EUR 61.6 million. Consolidated revenues decreased by 18 per cent to EUR 73.8 million.
EBITDA declined by 9 per cent to EUR 17.1 million. This is attributable primarily to the loss of profits from the sale of properties, as the Hotel Savoy in Prague was sold in June 2014 for roughly its carrying amount. The ultimately successful sale of two office towers at AIRPORTCITY St. Petersburg was not closed until March 2015. In total, EBIT fell by EUR 35.7 million in 2013 to EUR -5.2 million. This is because of impairment losses and a loss on remeasurement of office properties, which have been recognised at market value since 2013. The impairment relates primarily to Russian properties. Despite a 31 per cent decline, earnings from joint ventures are positive at

EUR 1.5 million. With a decline in the financial result compared to 2013 to EUR -31.6 million, there was a loss for the year of EUR -35.3 million (2013: EUR 7.1 million).
Franz Jurkowitsch: "Business in Russia has proven very difficult recently. Nonetheless, it is evident that, even in Russia, occupancy in Warimpex hotels remains constant, and a détente in the crisis is again likely to result in an increase. Thus since the reporting date, the rouble has already experienced a significant recovery with a current value of approximately 55 RUB/EUR. As of 30 December 2014, the exchange rate was close to 68 RUB/EUR. The recent successful sale of the Jupiter construction part of AIRPORTCITY St. Petersburg also showed that we are able to conclude and implement transactions in Russia even in times like these. In terms of our non-Russian assets, performance continues to be stable, and new projects are planned in Berlin, Krakow and Budapest, some of which are already being implemented."

Warimpex Finanz- und Beteiligungs AG is a real estate investment and development company. The company is headquartered in Vienna and listed on the stock exchanges in Vienna and Warsaw (WXF). As one of the largest hotel investors in Central and Eastern Europe, Warimpex currently owns, partially owns or operates eighteen business and luxury hotels with a total of over

4,600 rooms as well as five commercial and office buildings with a total useable area of roughly 43,000 square metres. Over the past twenty-five years, Warimpex has developed properties worth over EUR 1 billion. Warimpex believes in quality and sustainability as the basis for strong future growth.

The company operates in seven European countries. The highlights among the hotels that the company owns, partially owns, or operates are the andel's hotels in Berlin and Łódź, the angelo hotels in Prague, Plzen and Katowice, the angelo airport hotels in Bucharest and Ekaterinburg, the Crowne Plaza hotel at the AIRPORTCITY St. Petersburg, the Kempinski hotel in

Vienna and the InterContinental hotel in Warsaw.

Christoph Salzer, presse@warimpex.com

Daniel Folian, investor.relations@warimpex.com

Tel. +43 1 310 55 00 www.warimpex.com

Nele Renzenbrink, Barbara Hirsch presse@warimpex.com

Tel. +43 1 599 32 26

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