HEERENVEEN, Netherlands – Accell Group N.V. has, as expected, realised continued growth in turnover and profit in the first half of 2006. Turnover in the first six months of the year was up 12% at EUR 242 million. Organic turnover growth was more than 7%, from 1% in the first half of 2005. Net profit was up 10% at € 10.6 million, from € 9.6 million in the first half of 2005. This raised earnings per share to € 1.16, up 6% compared with € 1.10 earnings per share in the first half of 2005.
René Takens, Chairman of Accell Group’s Executive Board: we are very satisfied with our organic
turnover growth of more than 7% in the first half of the year. The deliberate emphasis on marketing
and a tighter pricing policy have resulted in higher turnover. The total turnover growth of 12% has
resulted in an increase in the operating result of 9.1% to € 17.5 million. With a view to the future,
we have taken various measures in the past six months to keep our cost levels competitive. We are
continuously assessing the extent to which we have to keep things in-house or partly contract them out to lower-wage countries. The outlook for the remainder of the year remains positive. For the full year 2006, we expect a further increase in turnover and a profit rise of 5 to 15%.
Key developments in the first half of 2006
The sustainable consumer trend towards healthier living and more exercise remains an issue in 2006
and is one of the driving forces behind the demand for bicycles and fitness equipment. The bicycle is
also becoming less of a commodity and much more a product with which consumers wish to
distinguish themselves. The discussion about consumers willingness to buy continues. The late start
to the spring meant the bicycle season also started later this year. Turnover in June in Germany and
France in particular were negatively affected by the football World Cup.
Partly as a result of the stronger emphasis on marketing and a tighter pricing policy, organic growth in
the first half of the year was more than 7%. Accell Group s turnover also increased as a result of the
acquisition of Seattle Bike Supply, which has been a step in the interesting North American bicycle
and bicycle parts market.
In the first half of 2006, Accell Group also introduced several measures to ensure that cost levels also
remain competitive in the future. For instance, the Tunturi bicycle production in Finland is terminated
and the production is moved to the facility in Hungary, where Hercules and Winora bikes are also
assembled. The production of fitness equipment will be moved largely to Estonia. To this end, Accell
Group has entered into a joint venture with a local partner. In France, the production of Mercier will
be reduced. Mercier s production activities will be integrated with the activities of Lapierre. The
various measures have had some effect on efficiency in the first half. To finance the extra expenditure
This press release is translated into English. The original Dutch text is leading.
relating to the execution of these various measures, Accell Group has taken a provision of
approximately € 0.5 million.
Turnover specification :geographic Per product group
Turnover in this segment rose by 11% to € 223.3 million in the first half of 2006, from € 202.1
million in the first half of 2005. Accell Group sold 541,000 bicycles, an increase of around 8% on the
501,000 sold in the first half of 2005, which is partly due to the acquisition of SBS. The average price
per bicycle remained stable at around EUR 345. Accell Group focuses its bicycle collections on the
middle and higher segments of the market, with the product range varying widely from relatively
cheap children s bikes to comfortable and luxury city bicycles and exclusive trekking and racing
bicycles. The segment result increased to € 20.8 million, from € 19.1 million.