ADC African Development Corporation GmbH & Co. KGaA: Q1 Report 2012

ADC publishes Q1 Report 2012
ADC African Development Corporation GmbH & Co. KGaA ('ADC'), ISIN DE000A1E8NW9, a fast growing pan-African Banking Group focused on the frontier markets of sub-Saharan Africa has published its interim report for the first quarter of 2012.

In Q1 2012, ADC earned consolidated revenues and other income of EUR 784k versus EUR 516k in Q1 2011. The group recognized non cash-relevant EUR 7.2 million in fair value losses in the first quarter due to BancABC's volatility in share price, which has affected ADC's Q1 financial results.

As of 31 March 2012, ADC had shares in associated companies on the balance sheet valued at EUR 42.5 million (31 December 2011: 49.2 million). Besides that, ADC had cash and cash equivalents of EUR 14.1 million at the end of the quarter (31 December: 20.1 million). The company's total equity reached EUR 78.2 million compared to EUR 88.3 million at year-end 2011.

In general due to ADC's business model, Q1 results are expected to be lower than at year-end as major revaluations in non-listed assets take place by the end of fiscal year. In Q1 2012, ADC recorded a net loss of EUR 10.2m (Q1 2011: - EUR 2.1m).

The Q1 2012 Report is available for investors and other interested parties via the following link on the ADC website:
http://www.african-development.com/files/120531_adc_q1_en_ohne_s.pdf

Olaf Meier, CFO of ADC, commented on the results: 'Despite BancABC's continued growth and success as a pan-African Banking Group, the share price has decreased in the first quarter of 2012. Even though we need to recognize fair value losses in the first quarter, we have the advantage of participating in BancABC's upcoming rights issue on current stock price level which gives us an excellent position to increase our stake on a price level far below our own projections on BancABC's fair value. This opinion is shared by independent analysts who recently valued BancABC with a price target of BWP 8.14 (USD 1.09). With the planned consolidation of new and existing investments this temporary effect of mark-to-market valuations will be eliminated and our quarterly results will provide a much higher level of stability once expected consolidation will take place.'

Dirk Harbecke, CEO of ADC added on the operational performance: 'BancABC, ADC's core banking asset, reported strong earnings in 2011 with a profit of USD 12.8 million, a 27% increase from 2010, which is excellent given the large expenditures made over the year in growing the retail business operation. Furthermore, the Group's balance sheet increased by 53%, crossing the billion dollar threshold with total assets reaching USD 1.2 billion in 2011. Based on this success, BancABC announced that it will increase its dividend payments to USD 2.3 cents per share, a year-on-year increase of 36%.'

About ADC
ADC African Development Corporation (ISIN: DE000A1E8NW9; Bloomberg: AZC.GR, www.african-development.com), a member of the Angermayer, Brumm & Lange Group (www.abl-group.de), was established in September 2007 and aims to become one of the leading banking groups in sub-Saharan Africa, active in corporate and retail banking and proprietary investments. The company's success is primarily due to its local management team, which follows international best practice principles to further develop its operational companies and implements conventional international processes to increase their profitability. As the second international emerging market investor in the world, ADC was integrated into the insurance solution offered by the Multilateral Investment Guarantee Agency ('MIGA'), a member of the World Bank Group, primarily due to its strong operational approach and adherence to the highest ethical standards. This insurance offers protection against a variety of political risks, in particular the risk of radical political change.

Contact:
Investor Relations
investor-relations@african-development.com
T +49 69 719 12 80 119

This release was published on openPR.