DGAP-Ad-hoc: Gesco AG / Key word(s): Investment/Profit Warning Gesco AG optimizes portfolio, revises guidance for current financial year and provides positive outlook for new financial year 02-Feb-2017 / 13:02 CET/CEST Disclosure of an inside information acc. to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Wuppertal, 02.02.2017 - GESCO AG decided to put its majority holding in Protomaster GmbH, Wilkau-Haßlau, for sale. As already explained, this subsidiary has burdened the Group accounts in the last two financial years as well as in the current financial year as a restructuring case. Against the background of the intended sale, GESCO AG revises its guidance for the current financial year 2016/2017. The company's most recent forecast for Group net income after minority interest from November 2016 amounted to EUR 11.5 million to EUR 12.5 million. Since in the fourth quarter operating business developed better than expected, the company now expects Group net income after minority interest on an operating basis to come in at between EUR 12.5 million and EUR 13.5 million. Based on the information available now, putting Protomaster for sale will have a negative one-off effect on Group earnings of around EUR 6.5 million. Therefore the new guidance for Group net income after minority interest for financial year 2016/2017 amounts to around EUR 6.0 million to EUR 7.0 million. The outlook for Group sales of around EUR 480 million is not affected. The effects from the intended sale will mainly not influence cash flow. The quarterly statement for the nine months period will be published on 14 February 2017. In the Group accounts of the nine months period the effects of the intended sale on the balance sheet and on the profit and loss statement will not yet be included, since today's decision of the exit was made in the current fourth quarter of the financial year. For the new financial year 2017/2018 starting on 1 April, the company expects growth in terms of sales and earnings on an organic basis as well as profitable external growth provided by Pickhardt & Gerlach group which had been acquired in December 2016. Investor Relations, Oliver Vollbrecht Tel. +49 202 24820-18, Fax +49 202 24820-49 Email: [email protected], Internet: www.gesco.de --------------------------------------------------------------------------- 02-Feb-2017 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: Gesco AG Johannisberg 7 42103 Wuppertal Germany Phone: +49 (0)202 248200 Fax: +49 (0)202 2482049 E-mail: [email protected] Internet: www.gesco.de ISIN: DE000A1K0201 WKN: A1K020 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange End of Announcement DGAP News Service --------------------------------------------------------------------------- 541313 02-Feb-2017 CET/CEST