MOLDEANDO ALIANZAS, PINTANDO FUTUROS
5.1. CONCLUSIONES GENERALES
In a sometimes diffi cult economy, especially in Europe, the fi nancial year 2013 was highlighted by excellent growth of activity, with revenue growth of 7.5% at constant perimeter(1)
and exchange rates and 4.4% as reported.
This good overall performance results from the contrasted performance of our diff erent markets as analysed hereinafter but also from a growth by more than 15% in the second half year following overall lacklustre activity during the fi rst half.
(1) Excluding non-recurring services provided to Johnson Controls Inc. in 2012 in the amount of €5.2 million.
The key fi gures in the 2013 income statement resulting from the evolution of the Group’s activity are the following:
(in € million)
Year ended 31 December
Restated data(1) Reported(3)
2013 2012 % Growth(2) 2013 2012 % Growth(2) Sales 624.2 592.8 7.5% 624.2 598.0 6.5% Gross profi t 170.8 175.4 (2.6)% 170.8 176.0 (3.0)% Gross profi t (%) 27.4% 29.6% 27.4% 29.4% EBITDA(4) 92.5 102.3 (9.6)% 92.5 102.5 (9.8)% EBITDA (%) 14.8% 17.3% 14.8% 17.1% EBIT(5) 54.5 69.8 (21.9)% 54.5 69.8 (21.9)% EBIT (%) 8.7% 11.8% 8.7% 11.7%
Operating profi t/(loss) 61.1 69.3 (11.8)% 61.1 69.3 (11.8)%
Net profi t for the period from continuing
operations 41.7 42.0 (0.7)% 41.7 42.0 (0.7)%
Net profi t for the period from discontinued
operations (5.2) (7.3) (5.2) (7.3)
Net profi t for the period 36.5 34.7 5.2% 36.5 34.7 5.2%
EPS total (€ per share) 1.44 1.38 4.3% 1.44 1.38 4.3%
EPS from continuing operations (€ per share) 1.64 1.67 (1.8)% 1.64 1.67 (1.8)%
(1) Only data for the 2012 fi nancial period have been restated by eliminating the impacts of €5.2 million in non-recurring services recorded in revenue following the agreements ending the joint venture with Johnson Controls.
(2) Changes are measured at current exchange rates except for the change in revenue, which is measured at constant exchange rates.
(3) 2012 and 2013 reported data were restated in order to separate the profi t (loss) from continued operations from discontinued activities. For both 2012 and 2013 the net profi t (loss) from discontinued activities is made up of the profi t (loss) of the SNB small nickel batteries activity that was disposed of on 28 June 2013. On the other hand, the 2012 data above are reported after taking into consideration the retrospective application of revised IAS 19 that applied on 1st January 2013 whose impacts are described in note 2.1 to the Group’s consolidated fi nancial statements.
(4) EBITDA is defi ned as operating profi t, before depreciation (net of the depreciation of deferred subsidies on assets) restructuring costs and other operating income and expenses.
COMMENTS ON THE 2013 FINANCIAL YEAR
5
Activity and consolidated results
Unless otherwise stated, the management comments presented below have been prepared using restated data, excluding 2012 revenue restated for the €5.2 million in non-recurring services recorded in revenue as part of the agreements ending the joint venture with Johnson Controls. The Group’s €170.8 million gross profi t in 2013 is slightly down by 2.6% compared to the fi nancial year 2012 and totals 27.4% of revenue, compared to gross profi t margin of 29.6% one year earlier. This drop results from:
on the one hand, a negative impact of product mix, sales of
the SBG division, the Group’s most profi table division having declined by nearly 6% in 2013 whereas less profi table sales of the IBG division had strong growth, in particular sales of telecommunication network products with lower margins;
on the other hand, the €5.5 million negative impact
on gross profi t resulting from the entry of the Nersac lithium-ion production unit into the consolidation scope on 1st January 2013; and
fi nally, the overall negative impact of changes in foreign
exchange rates and especially the decline of the US dollar versus the euro.
The Group’s EBITDA for the fi nancial year 2013 stood at €92.5 million, down by 9.6% compared to the year 2012. This results from the decline in gross profi t described above as well as the increase in other operating expenses, mainly research and development costs and administrative costs. The increase in research & development costs recorded in profi t and loss account comes mainly from lower capitalisation in the Group’s balance sheet of new product development costs. Over the fi nancial year 2013 these in fact totalled €5.8 million versus €9.1 million in the fi nancial year 2012. The increase in administrative expenses results, on the one hand, from the entry of the Nersac production unit in the consolidation scope for €0.8 million and on the other hand, from an unfavourable comparison base, as the administrative expenses for the year 2012 had been impacted by major reversals of provisions for employee benefi ts and health insurance in the US.
The 2013 EBITDA margin rate is thus 14.8% of revenue compared to a margin of 17.3% of 2012 revenue.
Depreciation, amortisation and impairment of the Group’s non-current assets(1) amounted to €38.0 million, an increase
of €5.3 million over the previous year. This increase mainly results from the start of the second production line of the Jacksonville unit as well as the addition of the Nersac lithium- ion unit starting 1st January 2013.
The EBIT margin of the fi nancial year 2013 totalled €54.5 million, i.e. 8.7% of revenue.
Taking account of other operating income and expenses in a net positive amount of €6.6 million, operating profi t reached €61.1 million in 2013, i.e. 9.8% of revenue. This profi t is down by 11.8% compared to the previous fi nancial year.
The fi nancial result for the 2013 fi nancial year is a net expense of €10.5 million, representing a €2.1 million improvement compared to the net expense recorded in 2012. This change results mainly from the €1.2 million reduction in net borrowing costs.
The tax expense related to continuing operations totalled €10.4 million for the fi nancial year 2013. This represents a net overall tax rate of 20.0% on continuing activities, compared to a tax rate of 27.0% in 2012.
The net profi t from continuing operations totalled €41.7 million in 2013, compared to net profi t of €42.0 million in 2012. The profi t per share of continuing activities is thus €1.64 in 2013, compared to €1.67 in 2012, i.e. a limited decline of 1.8%. The 2013 net loss from discontinued activities corresponds to the loss recorded for the disposal of the SNB small nickel batteries activity. This loss, net of taxes, includes the operating loss of the SNB activity until its disposal, i.e. €1.4 million and the loss on the disposal itself for the remainder.
The Group’s net profi t for the fi nancial year 2013 thus totals €36.5 million compared to a net reported profi t of €34.7 million for the fi nancial year 2012. 2013 earnings per share thus stands at €1.44, compared to earnings per share of €1.38 reported for 2012.
Net cash fl ows in 2013 from operating activities total €54.2 million, slightly down by €1.3 million compared to 2012. Taking into consideration the acquisition of the Nersac lithium- ion unit for €8.5 million, the €56.4 million in investments made in 2013 represent an increase of €3.4 million over the fi nancial year 2012.
Net cash fl ows from fi nancing activities in 2013 are a net cash generation of €1.8 million versus €152.3 million cash-out in 2012, a fi nancial year in which the Group reduced its fi nancial debt and paid an exceptional dividend to its shareholders. The 2013 free cash fl ow(2) was €16.6 million, compared to a
2012 free cash fl ow of €11.9 million.
At the close of the 2013 fi nancial year the Group’s cash position totalled €101.4 million. This will allow to propose to the Ordinary General Meeting of 12 May 2014 distribution of an ordinary dividend of €0.78, up 4%, representing 48% of 2013 net profi t from continuing operations.