REXEL : FULL-YEAR 2014 RESULTS
(Thomson Reuters ONE) -
FULL-YEAR 2014 RESULTS
2014 PERFORMANCE IN LINE WITH TARGETS
SOUND FINANCIAL STRUCTURE
PROPOSED STABLE DIVIDEND AT ?0.75 PER SHARE
2014 PERFORMANCE IN LINE WITH TARGETS
* Sales of ?13.081bn, up 1.1% on a constant and same-day basis (vs. target
"broadly stable")
* Adjusted EBITA(1) margin of 5.0% (vs. target "at least 5.0%")
* Solid free cash-flow at 77% of EBITDA before interest and tax (vs. target
"at least 75%") and 44% of EBITDA after interest and tax (vs. target "around
40%")
SOUND FINANCIAL STRUCTURE
* Broadly stable net debt of ?2.2bn at Dec. 31, 2014
* Broadly stable indebtedness ratio of 2.7x at Dec. 31, 2014
2015 OUTLOOK
* Organic sales growth of between -2% and +2% (on a constant and same-day
basis)
* Adjusted EBITA(1) margin of between 4.8% and 5.2% (vs. 5.0% in 2014)
* Solid free cash-flow of at least 75% of EBITDA, before interest and tax, and
of around 40% of EBITDA, after interest and tax
PROPOSED STABLE DIVIDEND AT ?0.75 PER SHARE
-------------------------------------------------------------------
Key figures(1) FY 2014 YoY change
-------------------------------------------------------------------
Sales ?13,081.2m
On a reported basis +0.5%
On a constant and actual-day basis +1.1%
On a constant and same-day basis +1.1%
-------------------------------------------------------------------
Adjusted EBITA ?649.4m -6.9%
As a percentage of sales 5.0%
Change in bps as a % of sales -40bps
-------------------------------------------------------------------
Reported EBITA ?646.8m -5.8%
-------------------------------------------------------------------
Operating income ?495.8m -4.8%
-------------------------------------------------------------------
Net income ?200.0m -5.2%
-------------------------------------------------------------------
Free cash-flow before interest and tax ?562.4m -6.4%
-------------------------------------------------------------------
Net debt at end of period ?2,213.1m +1.0%
-------------------------------------------------------------------
1 See definition in the Glossary section of this document
Rudy PROVOOST, Chairman of the Management Board and CEO, said:
"Rexel's 2014 results were in line with the targets we announced in July: we
posted organic sales growth of 1%, our margin stood at 5% and we generated
strong free cash flow.
With respect to the 2015 outlook, the current economic environment leads us to
be cautious. In this context, we will relentlessly focus efforts and resources
on our key drivers of profitable organic growth and operational efficiency,
while completing our business transformation program and reinforcing our market
positions. In that respect, targeted bolt-on acquisitions should continue to
fuel our growth.
We are also taking measures to rationalize our business portfolio and are
streamlining the European management structure to further increase our
organizational effectiveness.
Reflecting our confidence in the soundness of our business model, we will
propose to our shareholders to maintain the dividend to be paid in 2015 at last
year's level of 0.75 euros per share."
FINANCIAL REVIEW FOR THE PERIOD ENDED DECEMBER 31, 2014
Financial statements as of December 31, 2014 were authorized for issue by Board
of Directors held on February 11, 2015. They have been audited by statutory
auditors.
Financial statements as of December 31, 2013 have been restated for changes in
accounting policies, following the adoption of IFRIC Interpretation 21 "levies";
this restatement had no significant impact on operating income and net income
for the full year.
The following terms: EBITA, Adjusted EBITA, EBITDA, Free Cash Flow and Net Debt
are defined in the Glossary section of this document. Unless otherwise stated,
all comments are on a constant and adjusted basis and, for sales, at same number
of working days.
SALES
Sales of ?3,468m in Q4, up 5.5% year-on-year on a reported basis; up 1.1% year-
on-year on a constant and same-day basis, driven by North America
Sales of ?13,081m in FY 2014, up 0.5% year-on-year on a reported basis; up 1.1%
year-on-year on a constant and same-day basis
In the fourth quarter, Rexel posted sales of ?3,468.0 million, up 5.5% on a
reported basis and up 1.1% on a constant and same-day basis. Excluding the 0.4%
negative impact due to the change in copper-based cable prices, sales were up
1.6% on a constant and same-day basis.
The 5.5% increase in reported sales included:
* A net positive currency effect of ?85.6 million (mainly due to the
appreciation of the US dollar and British pound against the euro),
* A net positive effect of ?23.3 million from changes in the scope of
consolidation,
* A positive calendar effect of 1.0 percentage point.
In the full-year, Rexel posted sales of ?13,081.2 million, up 0.5% on a reported
basis and up 1.1% on a constant and same-day basis. Excluding the 0.6% negative
impact due to the change in copper-based cable prices, sales were up 1.7% on a
constant and same-day basis.
The 0.5% increase in reported sales included:
* A net negative currency effect of ?138.2 million (mainly due to the
depreciation of the Australian and Canadian dollars against the euro, partly
offset by the appreciation of the British pound against the euro),
* A net positive effect of ?61.4 million from changes in the scope of
consolidation,
* A neutral calendar effect.
Europe (55% of Group sales): -0.8% in Q4 and +0.5% in FY on a constant and same-
day basis
In the fourth quarter, sales in Europe increased by 1.1% on a reported basis and
were down by 0.8% on a constant and same-day basis.
* In France, sales decreased by 5.1%, reflecting continued tough market
conditions and low construction activity, as well as the challenging base
effect of Q4 2013 (which posted a drop of 0.1% after a drop of 3.8% in Q3
2013). With sales down 2.3% on a constant and same-day basis in the full-
year, Rexel nevertheless continued to outperform the market throughout the
year, thanks to large projects activity and multi-energy offer.
* In the UK, sales were down 1.7%, reflecting the challenging base effect of
Q4 2013 (which posted a 1.9% drop after a 7.5% drop in Q3 2013). Over 2
years, sales evolution in Q4 improved sequentially.
* In Germany, sales were down 1.9% in Q4, reflecting the challenging base
effect of Q4 2013 (which posted a 3.9% drop after a 7.6% drop in Q3 2013).
Over 2 years, sales evolution in Q4 improved sequentially.
* In Scandinavia, sales grew by 7.8%. This performance reflected solid growth
in all three countries: sales were up 10.7% in Sweden, 6.1% in Norway and
3.9% in Finland.
* Benelux posted mix performance with Belgium strongly up (+ 8.4%), while
sales in the Netherlands dropped by 5.8%.
* In Switzerland, sales decreased by 1.5%, whereas sales in Austria increased
by 1.8%.
* Southern European countries posted a 1.0% growth in sales: Spain was up
4.4%, mainly driven by export activity, while Italy and Portugal dropped
respectively by 3.4% and 2.8%.
North America (34% of Group sales): +5.1% in Q4 and +2.9% in FY on a constant
and same-day basis
In the fourth quarter, sales in North America were up 12.8% on a reported basis
including a positive currency effect of ?68.6m (mainly due to the appreciation
of the USD against the euro) and were up 5.1% on a constant and same-day basis.
* In the US, sales grew by 5.6% in the quarter, confirming the recovery in
non-residential construction (around 50% of Rexel's US sales) and reflecting
a strong increase in photovoltaic sales (+20%).
* In Canada, sales were up 3.5% in the quarter, reflecting gradual recovery in
project activity.
Asia-Pacific (9% of Group sales): -1.1% in Q4 and -1.0% in FY on a constant and
same-day basis
In the fourth quarter, sales in Asia-Pacific were up 9.5% on a reported basis,
including positive effects of ?11.7m from currency (mainly due to the
appreciation of the Yuan and the Australian dollar against the euro) and of
?17.8m from change in scope of consolidation (acquisitions of Lenn International
in Singapore, Quality Trading and 4 Knights International in Thailand and
Beijing Ouneng in China).
On a constant and same-day basis, sales were down 1.1%.
* In China (c. 35% of the region's sales), sales were slightly down (-0.7%) in
the quarter, but posted solid growth throughout the year (+3.5%), driven by
solid activity in the industrial automation segment.
* In South-East Asia (c. 10% of the region's sales), sales continued to show
strong dynamism and grew by 22.2% in the quarter.
* In Australia (c. 45% of the region's sales), sales were down 3.7% in Q4,
reflecting continued challenging environment, while improving sequentially
(in Q3 2014, sales dropped by 5.0%). Excluding the impact of branch
closures, sales were down 2.0%.
* In New Zealand (c. 10% of the region's sales), sales reflected market
slowdown and delay in Christchurch reconstruction, decreasing by 11.0% in
Q4; they were down 4.6% in the full-year.
Latin America (2% of Group sales): -2.8% in Q4 and -3.5% in FY on a constant and
same-day basis
In the fourth quarter, sales in Latin America were down 5.8% on a reported
basis, including a negative currency effect of ?1.9m.
On a constant and same-day basis, sales decreased by 2.8%, reflecting mixed
performance:
* In Brazil (c. 60% of the region's sales), sales were slightly up (+0.7%) and
improved over the previous quarters, but full-year sales were down 6.9%,
reflecting the country's economic slowdown.
* In Chile (c. 30% of the region's sales), sales were down 17.3% in the
quarter, continuing to reflect low sales to the mining industry. Excluding
sales to the mining industry, sales were up 16.5% in the quarter.
* In Peru (c. 10% of the region's sales), sales increased by 28.7%, still
driven by strong economic growth and project activity.
PROFITABILITY
Adjusted EBITA of ?649.4m, at 5.0% of sales, down 40bps year-on-year
Profitability impacted by unfavorable mix effects on gross margin while opex
remained under control
In the full-year, adjusted EBITA margin stood at 5.0%, down c. 40 basis points
year-on-year, of which:
* A negative effect of c. 45 basis points resulting from lower adjusted gross
margin (from 24.8% in 2013 to 24.3% in 2014),
* A positive effect of c. 5 basis points resulting from an improvement in
distribution and administrative expenses (including depreciation) as a
percentage of sales, driven by solid cost control (from 19.4% in 2013 to
19.3% in 2014).
The c. 45 basis-point drop in adjusted gross margin included two unfavorable mix
effects, each accounting for c. 10 basis points:
* An unfavorable geographic mix, due to cumulative effects of (i) the reduced
weight of countries whose gross margin is above Group average and (ii) the
increased weight of countries whose gross margin is below Group average,
* An unfavorable project mix, due to the increased weight of large projects
whose gross margin is below Group average.
By geography, the drop in adjusted gross margin can be broken down as follows:
* In Europe, adjusted gross margin was down 30 basis points, representing
around one third of the c. 45 basis-point drop at Group level,
* In North America, adjusted gross margin was down 60 basis points,
representing around half of the c. 45 basis-point drop at Group level,
* In Asia-Pacific, adjusted gross margin was down 75 basis points,
representing around 10% of the c. 45 basis-point drop at Group level,
* In Latin America, adjusted gross margin was down 125 basis points, impacted
by the 2013 base effect that benefited from a one-off tax refund (ICMS) in
Brazil; restated for that base effect, adjusted gross margin was up 45 basis
points year-on-year.
In the full-year, reported EBITA stood at ?646.8 million, down 5.8% year-on-
year.
NET INCOME
Reported net income of ?200.0 million, down 5.2% year-on-year
In the full year, operating income stood at ?495.8 million, down 4.8%.
* Amortization of intangibles resulting from purchase price allocation
amounted to ?16.1 million (vs. ?19.7 million in 2013).
* Other income and expenses amounted to a net charge of ?134.8 million (vs. a
net charge of ?146.2 million in 2013). They included ?58.9 million of
restructuring costs (vs. ?63.6 million in 2013) and ?48.5 million of
goodwill impairment (vs. ?67.3 million in 2013), mainly related to
operations in Brazil and the Netherlands.
In the full year, net financial expenses amounted to ?188.9 million (vs. ?213.5
million in 2013 that included a one-off cost of ?23.5 million related to Q1
2013 refinancing operations). The average effective interest rate was reduced
year-on-year by 50 basis points, from 5.4% of gross debt in 2013 to 4.9% in
2014.
In the full year, income tax represented a charge of ?106.9 million. The
effective tax rate was 34.8% (vs. 31.5% in 2013), mainly reflecting unrecognized
tax losses in Spain and Brazil, the impact of goodwill impairment and the
increasing tax pressure in France.
In the full-year, reported net income was down 5.2%, at ?200.0 million (vs.
?210.9 million in 2013).
FINANCIAL STRUCTURE
Solid generation of free cash-flow before interest and tax of ?562.4m (77% of
EBITDA)
Broadly stable net debt of ?2.2bn at Dec. 31, 2014
Broadly stable indebtedness ratio of 2.7x at Dec. 31, 2014
In the full-year, free cash flow before interest and tax was an inflow of ?562.4
million (vs. an inflow of ?600.6 million in 2013 that included ?22.9 million
from disposal of fixed assets). This net inflow included:
* Gross capital expenditure of ?105.9 million (vs. ?102.3 million in 2013),
* An inflow of ?17.6 million from change in working capital (vs. an outflow of
?1.1 million in 2013).
At December 31, 2014, net debt stood at ?2,213.1 million (vs. ?2,192.0 million
at December 31, 2013). Net debt was reduced by ?114.7 million before the
unfavorable impact of currency and was broadly stable after this impact. It took
into account:
* ?155.9 million of net interest paid during the year,
* ?84.3 million of income tax paid during the year,
* ?135.8 million of unfavorable currency effect during the year,
* ?65.6 million of dividend paid in cash in the third quarter.
At December 31, 2014, the indebtedness ratio (Net financial debt / EBITDA), as
calculated under the Senior Credit Agreement terms, stood at 2.7x, broadly
stable vs. December 31, 2013. This is in line with the Group's objective of
maintaining its indebtedness ratio at or below 3 times EBITDA at year-end.
Active balance-sheet management
Rexel actively manages its balance sheet in order to continuously optimize its
financing structure and further reduce its financial expenses.
Last November, Rexel renegotiated its ?1 billion Senior Credit Agreement to
extend its maturity to Nov. 2019, and to improve its pricing terms by c. 60bps,
yielding annual savings of c. ?5 million.
In December, Rexel also extended its US securitization program, pushing back
maturity to Dec. 2017 and increasing its amount by USD75 million to USD545
million while slightly improving its pricing.
Market conditions permitting, Rexel envisions significantly reducing the cost of
the notes issued in 2011 and 2012 through:
* Straight repayment of its 7% Euro notes due Dec. 2018, with potential
savings of ?34 million in interest payment on a full year basis as from
2016 and
* Option to redeem its 6.125% USD notes due Dec. 2019; this will be considered
later in the year.
PROPOSED STABLE DIVIDEND OF ?0.75 PER SHARE
Rexel will propose to shareholders a dividend of ?0.75 per share, representing
78% of the Group's recurring net income (vs. 64% last year). It will be paid in
cash or shares, subject to approval at the Annual Shareholders' Meeting to be
held in Paris on May 27, 2015.
This is in line with Rexel's policy of paying out at least 40% of recurring net
income, reflecting the Group's confidence in its structural ability to generate
strong cash-flow throughout the cycle.
UPDATE ON PORTFOLIO REVIEW
In the second half of 2014, Rexel conducted a portfolio review in order to
determine the best course of action for the Group's less profitable operations.
Rexel's Board of Directors approved the decision to launch a divestment process.
Disposals will primarily target underperforming countries, in which Rexel is
sub-scale.
Based on full-year 2014 consolidated accounts, total divestments, once fully
completed, should have the following financial impacts:
* A reduction of around 5% in the Group's consolidated sales,
* A positive contribution of c. 20bps to the Group's adjusted EBITA margin,
* A moderate increase in the Group's FCF before interest and tax.
Divestment process should be completed by the end of 2016 and proceeds from
disposals will primarily be allocated to targeted acquisitions.
OUTLOOK
Context
* The economic outlook in Europe (55% of Group sales) remains uncertain,
especially in France (1/3 of European sales).
* The US (25% of Group sales) should continue to post solid growth, driven by
continued recovery in the non-residential construction.
* Outlook in emerging markets is mixed: Asia (4% of Group sales) should
continue to post growth, with China driven by industrial automation, while
Latin America (2% of Group sales) should continue to be impacted by
challenging conditions in Brazil.
* In addition, lower copper prices should impact our cable business (c. 14% of
Group sales), while decreasing oil prices should weigh on our Oil & Gas
activity (c. 4% of Group sales).
In this context, Rexel aims at delivering in 2015:
* Organic sales growth of between -2% and +2% (on a constant and same-day
basis),
* Adjusted EBITA margin of between 4.8% and 5.2% (vs. 5.0% recorded in 2014),
* Solid free cash flow of:
* At least 75% of EBITDA before interest and tax,
* Around 40% of EBITDA after interest and tax.
In addition, Rexel confirms its dividend policy of paying out at least 40% of
recurring net income.
Rexel remains committed to achieving its medium-term ambitions, which are
unchanged, even if, in light of the current environment, the timeframe for
achieving the targeted medium-term adjusted EBITA margin of close to 6.5% of
sales may take longer than initially announced.
CALENDAR
April 30, 2015 First-quarter results
May 27, 2015 Shareholders' Meeting in Paris
July 29, 2015 Second-quarter and Half-year
results
October 29, 2015 Third-quarter and 9-month results
FINANCIAL INFORMATION
The financial report for the period ended December 31, 2014 is available on the
Group's website (www.rexel.com), in the "Regulated information" section, and has
been filed with the French Autorité des Marchés Financiers.
A slideshow of the fourth-quarter & full-year 2014 results is also available on
the Group's website.
ABOUT REXEL GROUP
Rexel, a global leader in the professional distribution of products and services
for the energy world, addresses three main markets - industrial, commercial and
residential. The Group supports customers around the globe, wherever they are,
to create value and run their businesses better. With a network of some 2,200
branches in 38 countries, and c. 30,000 employees, Rexel's sales were ?13
billion in 2014.
Rexel is listed on the Eurolist market of Euronext Paris (compartment A, ticker
RXL, ISIN code FR0010451203). It is included in the following indices: SBF 120,
CAC Mid 100, CAC AllTrade, CAC AllShares, FTSE EuroMid, STOXX600. Rexel is also
part of the following SRI indices: DJSI Europe, FTSE4Good Europe & Global, EURO
STOXX Sustainability, Euronext Vigeo Europe 120 and ESI Excellence Europe.
Finally, Rexel is included on the Ethibel EXCELLENCE Investment Registers in
recognition of its performance in corporate social responsibility (CSR). For
more information, visit Rexel's web site at www.rexel.com
CONTACTS
FINANCIAL ANALYSTS / INVESTORS
Marc MAILLET +33 1 42 85 76 12 marc.maillet(at)rexel.com
Florence MEILHAC +33 1 42 85 57 61 florence.meilhac(at)rexel.com
PRESS
Pénélope LINAGE +33 1 42 85 76 28 penelope.linage(at)rexel.com
Brunswick: Thomas KAMM +33 1 53 96 83 92 tkamm(at)brunswickgroup.com
GLOSSARY
REPORTED EBITA (Earnings Before Interest, Taxes and Amortization) is defined as
operating income before amortization of intangible assets recognized upon
purchase price allocation and before other income and other expenses.
ADJUSTED EBITA is defined as EBITA excluding the estimated non-recurring net
impact from changes in copper-based cable prices.
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is
defined as operating income before depreciation and amortization and before
other income and other expenses.
RECURRING NET INCOME is defined as net income adjusted for non-recurring copper
effect, other expenses and income, non-recurring financial expenses, net of tax
effect associated with the above items.
FREE CASH FLOW is defined as cash from operating activities minus net capital
expenditure.
NET DEBT is defined as financial debt less cash and cash equivalents. Net debt
includes debt hedge derivatives.
APPENDICES
Appendix 1: Segment reporting - Constant and adjusted basis*
* Constant and adjusted = at comparable scope of consolidation and exchange
rates, excluding the non-recurring effect related to changes in copper-based
cables price and before amortization of purchase price allocation; the non-
recurring effect related to changes in copper-based cables price was, at the
EBITA level:
- A loss of ?2.0 million in Q4 2013 and a profit of ?0.8 million in Q4 2014,
- A loss of ?15.3 million in FY 2013 and a loss of ?2.6 million in FY 2014.
GROUP
+--------------------------+-------+-------+-------+---------+---------+-------+
| Constant and |Q4 2013|Q4 2014|Change | FY 2013 | FY 2014 |Change |
| adjusted basis (?m) | | | | | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
|Sales |3,396.6|3,468.0| +2.1%| 12,934.7| 13,081.2| +1.1%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | +1.1%| | | +1.1%|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Gross profit | 842.6| 831.0| -1.4%| 3,202.9| 3,177.8| -0.8%|
| | | | | | | |
| as a % of sales | 24.8%| 24.0%| -85bps| 24.8%| 24.3%| -45bps|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Distribution & adm. | | | | | | |
|expenses (incl. | | | | | | |
|depreciation) |(643.9)|(650.8)| +1.1%|(2,505.4)|(2,528.4)| +0.9%|
+--------------------------+-------+-------+-------+---------+---------+-------+
|EBITA | 198.7| 180.2| -9.3%| 697.5| 649.4| -6.9%|
| | | | | | | |
| as a % of sales | 5.9%| 5.2%| -65bps| 5.4%| 5.0%| -40bps|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Headcount (end of period) | 30,257| 29,933| -1.1%| | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
EUROPE
+--------------------------+-------+-------+-------+---------+---------+-------+
| Constant and |Q4 2013|Q4 2014|Change | FY 2013 | FY 2014 |Change |
| adjusted basis (?m) | | | | | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
|Sales |1,867.8|1,872.6| +0.3%| 7,098.5| 7,145.2| +0.7%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | -0.8%| | | +0.5%|
| | | | | | | |
|o/w France | 648.1| 624.4| -3.7%| 2,423.7| 2,376.4| -2.0%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | -5.1%| | | -2.3%|
| | | | | | | |
| United Kingdom | 248.0| 243.7| -1.7%| 999.0| 1,005.2| +0.6%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | -1.7%| | | +0.6%|
| | | | | | | |
| Germany | 201.9| 206.4| +2.3%| 804.0| 803.2| -0.1%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | -1.9%| | | -0.6%|
| | | | | | | |
| Scandinavia | 228.4| 247.0| +8.1%| 848.4| 906.5| +6.8%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | +7.8%| | | +6.9%|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Gross profit | 508.8| 494.2| -2.9%| 1,928.9| 1,920.5| -0.4%|
| | | | | | | |
| as a % of sales | 27.2%| 26.4%| -85bps| 27.2%| 26.9%| -30bps|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Distribution & adm. | | | | | | |
|expenses (incl. | | | | | | |
|depreciation) |(368.9)|(363.8)| -1.4%|(1,460.9)|(1,466.8)| +0.4%|
+--------------------------+-------+-------+-------+---------+---------+-------+
|EBITA | 140.0| 130.4| -6.8%| 467.9| 453.7| -3.0%|
| | | | | | | |
| as a % of sales | 7.5%| 7.0%| -50bps| 6.6%| 6.3%| -25bps|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Headcount (end of period) | 16,804| 16,490| -1.9%| | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
NORTH AMERICA
+--------------------------+-------+-------+-------+---------+---------+-------+
| Constant and |Q4 2013|Q4 2014|Change | FY 2013 | FY 2014 |Change |
| adjusted basis (?m) | | | | | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
|Sales |1,149.2|1,220.7| +6.2%| 4,353.4| 4,477.9| +2.9%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | +5.1%| | | +2.9%|
| | | | | | | |
|o/w United States | 853.3| 914.5| +7.2%| 3,211.3| 3,315.4| +3.2%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | +5.6%| | | +3.2%|
| | | | | | | |
| Canada | 295.9| 306.1| +3.5%| 1,142.1| 1,162.5| +1.8%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | +3.5%| | | +1.8%|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Gross profit | 256.8| 262.9| +2.4%| 968.5| 969.2| +0.1%|
| | | | | | | |
|as a % of sales | 22.3%| 21.5%| -80bps| 22.2%| 21.6%| -60bps|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Distribution & adm. | | | | | | |
|expenses (incl. | | | | | | |
|depreciation) |(199.1)|(206.1)| +3.5%| (740.7)| (763.1)| +3.0%|
+--------------------------+-------+-------+-------+---------+---------+-------+
|EBITA | 57.7| 56.8| -1.5%| 227.8| 206.1| -9.5%|
| | | | | | | |
| as a % of sales | 5.0%| 4.7%| -30bps| 5.2%| 4.6%| -65bps|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Headcount (end of period) | 8,613| 8,653| 0.5%| | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
ASIA-PACIFIC
+--------------------------+-------+-------+-------+---------+---------+-------+
| Constant and |Q4 2013|Q4 2014|Change | FY 2013 | FY 2014 |Change |
| adjusted basis (?m) | | | | | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
|Sales | 311.5| 308.9| -0.8%| 1,215.5| 1,200.9| -1.2%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | -1.1%| | | -1.0%|
| | | | | | | |
|o/w China | 99.5| 100.4| +0.9%| 371.7| 383.4| +3.2%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | -0.7%| | | +3.5%|
| | | | | | | |
| Australia | 136.1| 131.0| -3.8%| 566.4| 532.3| -6.0%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | -3.7%| | | -5.9%|
| | | | | | | |
| New Zealand | 31.6| 28.1| -11.0%| 126.3| 120.4| -4.6%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | -11.0%| | | -4.6%|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Gross profit | 61.9| 59.9| -3.3%| 243.7| 231.8| -4.9%|
| | | | | | | |
| as a % of sales | 19.9%| 19.4%| -50bps| 20.0%| 19.3%| -75bps|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Distribution & adm. | | | | | | |
|expenses (incl. | | | | | | |
|depreciation) | (49.8)| (49.7)| -0.2%| (194.5)| (196.0)| +0.8%|
+--------------------------+-------+-------+-------+---------+---------+-------+
|EBITA | 12.1| 10.2| -16.0%| 49.2| 35.8| -27.2%|
| | | | | | | |
| as a % of sales | 3.9%| 3.3%| -60bps| 4.0%| 3.0%|-105bps|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Headcount (end of period) | 3,057| 3,135| 2.5%| | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
LATIN AMERICA
+--------------------------+-------+-------+-------+---------+---------+-------+
| Constant and |Q4 2013|Q4 2014|Change | FY 2013 | FY 2014 |Change |
| adjusted basis (?m) | | | | | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
|Sales | 67.8| 65.7| -3.1%| 267.0| 256.8| -3.8%|
| | | | | | | |
| on a constant basis | | | -2.8%| | | -3.5%|
| and same days | | | | | | |
| | | | | | | |
|o/w Brazil | 38.1| 38.5| +1.0%| 160.6| 148.5| -7.6%|
| | | | | | | |
| on a constant basis | | | +0.7%| | | -6.9%|
| and same days | | | | | | |
| | | | | | | |
| Chile | 23.4| 19.1| -18.4%| 83.1| 81.3| -2.2%|
| | | | | | | |
| on a constant basis | | | -17.3%| | | -2.6%|
| and same days | | | | | | |
| | | | | | | |
| Peru | 6.3| 8.1| +28.7%| 23.3| 27.1| +16.3%|
| | | | | | | |
| on a constant basis | | | +28.7%| | | +16.3%|
| and same days | | | | | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
|Gross profit | 14.8| 13.9| -6.0%| 61.6| 56.1| -8.9%|
| | | | | | | |
| as a % of sales | 21.8%| 21.2%| -60bps| 23.1%| 21.8%|-125bps|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Distribution & adm. | | | | | | |
|expenses (incl. | (15.3)| (15.2)| -0.8%| (60.8)| (59.4)| -2.3%|
|depreciation) | | | | | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
|EBITA | (0.5)| (1.3)| n.a.| 0.8| (3.3)| n.a.|
| | | | | | | |
| as a % of sales | -0.7%| -1.9%|-120bps| 0.3%| -1.3%|-160bps|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Headcount (end of period) | 1,552| 1,395| -10.1%| | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
Appendix 2: Extract of Financial Statements
Consolidated Income Statement
+----------------------------+-------+-------+------+---------+---------+------+
| Reported basis (?m) |Q4 2013|Q4 2014|Change| FY 2013 | FY 2014 |Change|
+----------------------------+-------+-------+------+---------+---------+------+
|Sales |3,287.7|3,468.0| +5.5%| 13,011.6| 13,081.2| +0.5%|
+----------------------------+-------+-------+------+---------+---------+------+
|Gross profit | 812.4| 831.9| +2.4%| 3,188.5| 3,174.9| -0.4%|
| | | | | | | |
| as a % of sales | 24.7%| 24.0%| | 24.5%| 24.3%| |
+----------------------------+-------+-------+------+---------+---------+------+
|Distribution & adm. expenses| | | | | | |
|(excl. depreciation) |(602.6)|(630.5)| +4.6%|(2,424.7)|(2,447.3)| +0.9%|
+----------------------------+-------+-------+------+---------+---------+------+
|EBITDA | 209.8| 201.4| -4.0%| 763.8| 727.5| -4.8%|
| | | | | | | |
| as a % of sales | 6.4%| 5.8%| | 5.9%| 5.6%| |
+----------------------------+-------+-------+------+---------+---------+------+
|Depreciation | (18.5)| (20.4)| | (77.0)| (80.7)| |
+----------------------------+-------+-------+------+---------+---------+------+
|EBITA | 191.4| 181.0| -5.4%| 686.8| 646.8| -5.8%|
| | | | | | | |
| as a % of sales | 5.8%| 5.2%| | 5.3%| 4.9%| |
+----------------------------+-------+-------+------+---------+---------+------+
|Amortization of intangibles | | | | | | |
|resulting from purchase | | | | | | |
|price allocation | (3.9)| (4.2)| | (19.7)| (16.1)| |
+----------------------------+-------+-------+------+---------+---------+------+
|Operating income bef. other | | | | | | |
|inc. and exp. | 187.5| 176.7| -5.8%| 667.1| 630.6| -5.5%|
| | | | | | | |
| as a % of sales | 5.7%| 5.1%| | 5.1%| 4.8%| |
+----------------------------+-------+-------+------+---------+---------+------+
|Other income and expenses | (51.4)| (61.4)| | (146.2)| (134.8)| |
+----------------------------+-------+-------+------+---------+---------+------+
|Operating income | 136.1| 115.3|-15.3%| 520.9| 495.8| -4.8%|
+----------------------------+-------+-------+------+---------+---------+------+
|Financial expenses (net) | (50.0)| (50.4)| | (213.5)| (188.9)| |
+----------------------------+-------+-------+------+---------+---------+------+
|Share of profit (loss) in | | | | | | |
|associates | 0.0| 0.0| | 0.4| 0.0| |
+----------------------------+-------+-------+------+---------+---------+------+
|Net income (loss) before | | | | | | |
|income tax | 86.1| 64.9|-24.6%| 307.8| 306.9| -0.3%|
+----------------------------+-------+-------+------+---------+---------+------+
|Income tax | (25.0)| (22.4)| | (96.9)| (106.9)| |
+----------------------------+-------+-------+------+---------+---------+------+
|Net income (loss) | 61.2| 42.5|-30.7%| 210.9| 200.0| -5.2%|
+----------------------------+-------+-------+------+---------+---------+------+
|Net income (loss) attr. to | | | | | | |
|non-controlling interests | 0.0| 0.6| | 0.4| 0.3| |
+----------------------------+-------+-------+------+---------+---------+------+
|Net income (loss) attr. to | | | | | | |
|equity holders of the parent| 61.2| 41.9|-31.5%| 210.5| 199.7| -5.1%|
+----------------------------+-------+-------+------+---------+---------+------+
Bridge Between Operating Income Before Other Income And Other Expenses And
Adjusted EBITA
+----------------------------------------------+-------+-------+-------+-------+
|in ?m |Q4 2013|Q4 2014|FY 2013|FY 2014|
+----------------------------------------------+-------+-------+-------+-------+
|Operating income before other income and other| | | | |
|expenses | 185.7| 176.7| 667.2| 630.6|
+----------------------------------------------+-------+-------+-------+-------+
|Adoption of IFRIC 21 | 1.7| | (0.1)| |
| | | | | |
|Change in scope of consolidation | 1.2| | 2.5| |
| | | | | |
|Foreign exchange effects | 4.2| | (7.1)| |
| | | | | |
|Non-recurring effect related to copper | 2.0| (0.8)| 15.3| 2.6|
| | | | | |
|Amortization of intangibles assets resulting | | | | |
|from PPA | 3.9| 4.2| 19.7| 16.1|
+----------------------------------------------+-------+-------+-------+-------+
|Adjusted EBITA on a constant basis | 198.7| 180.2| 697.5| 649.4|
+----------------------------------------------+-------+-------+-------+-------+
Recurring Net Income
+---------------------------+-------+-------+------+-------+-------+------+
| In millions of euros|Q4 2013|Q4 2014|Change|FY 2013|FY 2014|Change|
+---------------------------+-------+-------+------+-------+-------+------+
|Reported net income | 61.2| 42.5|-30.7%| 210.9| 200.0| -5.2%|
| | | | | | | |
|Non-recurring copper effect| 1.9| -0.8| | 15.3| 2.6| |
| | | | | | | |
|Other expense & income | 51.4| 61.4| | 146.2| 134.8| |
| | | | | | | |
|Financial expense | 2.2| 0.0| | 23.5| 0.0| |
| | | | | | | |
|Tax expense | (14.2)| -47.0| | (67.8)| (59.3)| |
| | | | | | | |
|Recurring net income | 102.3| 56.1|-45.2%| 328.1| 278.1|-15.2%|
+---------------------------+-------+-------+------+-------+-------+------+
Sales And Profitability By Segment
+---------------------+-------+-------+------+--------+--------+------+
| Reported basis (?m)|Q4 2013|Q4 2014|Change|FY 2013 |FY 2014 |Change|
+---------------------+-------+-------+------+--------+--------+------+
|Sales |3,287.7|3,468.0| +5.5%|13,011.6|13,081.2| +0.5%|
| | | | | | | |
| Europe |1,853.0|1,872.6| +1.1%| 7,078.6| 7,145.2| +0.9%|
| | | | | | | |
| North America |1,082.6|1,220.7|+12.8%| 4,441.1| 4,477.9| +0.8%|
| | | | | | | |
| Asia-Pacific | 282.1| 308.9| +9.5%| 1,196.8| 1,200.9| +0.3%|
| | | | | | | |
| Latin America | 69.8| 65.7| -5.8%| 294.8| 256.8|-12.9%|
+---------------------+-------+-------+------+--------+--------+------+
|Gross profit | 812.4| 831.9| +2.4%| 3,188.5| 3,174.9| -0.4%|
| | | | | | | |
| Europe | 499.1| 495.9| -0.6%| 1,897.4| 1,919.7| +1.2%|
| | | | | | | |
| North America | 240.3| 262.0| +9.0%| 978.5| 966.7| -1.2%|
| | | | | | | |
| Asia-Pacific | 57.6| 59.9| +3.9%| 244.8| 231.8| -5.3%|
| | | | | | | |
| Latin America | 15.2| 14.0| -7.6%| 67.5| 56.3|-16.6%|
+---------------------+-------+-------+------+--------+--------+------+
|EBITA | 191.4| 181.0| -5.4%| 686.8| 646.8| -5.8%|
| | | | | | | |
| Europe | 137.1| 131.9| -3.8%| 455.4| 452.9| -0.5%|
| | | | | | | |
| North America | 54.2| 56.0| +3.3%| 230.2| 204.0|-11.4%|
| | | | | | | |
| Asia-Pacific | 11.2| 10.2| -8.9%| 48.9| 35.8|-26.8%|
| | | | | | | |
| Latin America | (0.5)| (1.3)| n.a.| 0.8| (3.3)| n.a.|
+---------------------+-------+-------+------+--------+--------+------+
Consolidated Balance Sheet(1)
+-----------------------------------------+-----------------+-----------------+
|Assets (?m) |December 31, 2013|December 31, 2014|
+-----------------------------------------+-----------------+-----------------+
|Goodwill | 4,111.2| 4,243.9|
| | | |
|Intangible assets | 1,038.3| 1,084.0|
| | | |
|Property, plant & equipment | 278.1| 287.1|
| | | |
|Long-term investments | 51.7| 24.8|
| | | |
|Deferred tax assets | 161.6| 175.2|
+-----------------------------------------+-----------------+-----------------+
|Total non-current assets | 5,640.9| 5,815.0|
+-----------------------------------------+-----------------+-----------------+
|Inventories | 1,389.5| 1,487.2|
| | | |
|Trade receivables | 2,062.8| 2,206.0|
| | | |
|Other receivables | 486.1| 508.7|
| | | |
|Assets classified as held for sale | 3.4| 3.7|
| | | |
|Cash and cash equivalents | 957.8| 1,159.8|
+-----------------------------------------+-----------------+-----------------+
|Total current assets | 4,899.7| 5,365.4|
+-----------------------------------------+-----------------+-----------------+
|Total assets | 10,540.5| 11,180.4|
+-----------------------------------------+-----------------+-----------------+
+-----------------------------------------+-----------------+-----------------+
|Liabilities (?m) |December 31, 2013|December 31, 2014|
+-----------------------------------------+-----------------+-----------------+
|Total equity | 4,227.1| 4,343.4|
+-----------------------------------------+-----------------+-----------------+
|Long-term debt | 2,908.2| 2,995.9|
| | | |
|Deferred tax liabilities | 172.1| 196.9|
| | | |
|Other non-current liabilities | 351.4| 437.9|
+-----------------------------------------+-----------------+-----------------+
|Total non-current liabilities | 3,431.7| 3,630.7|
+-----------------------------------------+-----------------+-----------------+
|Interest bearing debt & accrued interests| 216.8| 371.2|
| | | |
|Trade payables | 2,009.9| 2,126.8|
| | | |
|Other payables | 655.1| 708.3|
+-----------------------------------------+-----------------+-----------------+
|Total current liabilities | 2,881.7| 3,206.3|
+-----------------------------------------+-----------------+-----------------+
|Total liabilities | 6,313.4| 6,837.0|
+-----------------------------------------+-----------------+-----------------+
|Total equity & liabilities | 10,540.5| 11,180.4|
+-----------------------------------------+-----------------+-----------------+
1 Net debt includes Debt hedge derivatives for ?25.1m at December 31, 2013 and
?6.5m at December 31, 2014. It also includes accrued interest receivables for
?(0.7)m at December 31, 2014.
Change in Net Debt
+---------------------------------------+-------+-------+-------+-------+
|?m |Q4 2013|Q4 2014|FY 2013|FY 2014|
+---------------------------------------+-------+-------+-------+-------+
|EBITDA | 209.8| 201.4| 763.8| 727.5|
+---------------------------------------+-------+-------+-------+-------+
|Other operating revenues & costs((1)) | (29.4)| (25.8)| (89.9)| (80.0)|
+---------------------------------------+-------+-------+-------+-------+
|Operating cash flow | 180.4| 175.6| 673.9| 647.5|
+---------------------------------------+-------+-------+-------+-------+
|Change in working capital((2) ) | 256.1| 381.5| (1.0)| 17.6|
| | | | | |
|Net capital expenditure, of which: | (24.0)| (30.9)| (72.1)|(102.8)|
| | | | | |
| Gross capital expenditure| (34.5)| (37.8)|(102.3)|(105.9)|
| | | | | |
| Disposal of fixed assets & other| 10.5| 6.9| 30.1| 3.2|
+---------------------------------------+-------+-------+-------+-------+
|Free cash flow before interest and tax | 412.4| 526.2| 600.6| 562.4|
+---------------------------------------+-------+-------+-------+-------+
|Net interest paid / received((3) ) | (40.3)| (40.4)|(169.3)|(155.9)|
| | | | | |
|Income tax paid | (13.4)| (15.9)| (94.2)| (84.3)|
+---------------------------------------+-------+-------+-------+-------+
|Free cash flow after interest and tax | 358.7| 469.8| 337.2| 322.1|
+---------------------------------------+-------+-------+-------+-------+
|Net financial investment | (1.0)| (11.2)| (5.4)| (43.0)|
| | | | | |
|Dividends paid | 0.0| 0.0| (53.1)| (65.6)|
| | | | | |
|Other | 54.1| 1.5| 25.3| (98.9)|
| | | | | |
|Currency exchange variation | 40.1| (18.4)| 103.2|(135.8)|
+---------------------------------------+-------+-------+-------+-------+
|Decrease (increase) in net debt | 451.9| 441.7| 407.2| (21.1)|
+---------------------------------------+-------+-------+-------+-------+
|Net debt at the beginning of the period|2,643.9|2,654.8|2,599.2|2,192.0|
+---------------------------------------+-------+-------+-------+-------+
|Net debt at the end of the period |2,192.0|2,213.1|2,192.0|2,213.1|
+---------------------------------------+-------+-------+-------+-------+
1 Includes restructuring outflows of ?71.5m in 2013 and ?56.5m in 2014
2 Working Capital adjustment to reflect supplier's payments scheduled on Dec.
31, 2013 and executed only on Jan. 2nd, 2014 for ?51.9m
3 Excluding settlement of fair value hedge derivatives
Appendix 3: Working Capital Analysis
+---------------------+--------------------+-----------------+-----------------+
|Constant basis | |December 31, 2013|December 31, 2014|
+---------------------+--------------------+-----------------+-----------------+
|Net inventories | as a % of sales 12 | | |
| | rolling months| 11.0%| 11.0%|
| | | | |
| | as a number of days| 49.4| 48.8|
+---------------------+--------------------+-----------------+-----------------+
|Net trade receivables| as a % of sales 12 | | |
| | rolling months| 16.8%| 17.4%|
| | | | |
| | as a number of days| 55.4| 55.9|
+---------------------+--------------------+-----------------+-----------------+
|Net trade payables | as a % of sales 12 | | |
| | rolling months| 15.3%| 15.8%|
| | | | |
| | as a number of days| 61.6| 61.7|
+---------------------+--------------------+-----------------+-----------------+
|Trade working capital| as a % of sales 12 | | |
| | rolling months| 12.5%| 12.6%|
+---------------------+--------------------+-----------------+-----------------+
|Total working capital| as a % of sales 12 | | |
| | rolling months| 11.3%| 11.4%|
+---------------------+--------------------+-----------------+-----------------+
Appendix 4: Headcount and branches by geography
+--------------------------------+----------+----------+-------------------+
|FTEs at end of period comparable|31/12/2013|31/12/2014|Year-on-Year Change|
+--------------------------------+----------+----------+-------------------+
|Europe | 16,804| 16,490| -1.9%|
+--------------------------------+----------+----------+-------------------+
|USA | 6,234| 6,298| 1.0%|
+--------------------------------+----------+----------+-------------------+
|Canada | 2,379| 2,355| -1.0%|
+--------------------------------+----------+----------+-------------------+
|North America | 8,613| 8,653| 0.5%|
+--------------------------------+----------+----------+-------------------+
|Asia-Pacific | 3,057| 3,135| 2.5%|
+--------------------------------+----------+----------+-------------------+
|Latin America | 1,552| 1,395| -10.1%|
+--------------------------------+----------+----------+-------------------+
|Other | 232| 261| 12.5%|
+--------------------------------+----------+----------+-------------------+
|Group | 30,257| 29,933| -1.1%|
+--------------------------------+----------+----------+-------------------+
+--------------------------------+----------+----------+-------------------+
| Branches comparable |31/12/2013|31/12/2014|Year-on-Year Change|
+--------------------------------+----------+----------+-------------------+
|Europe | 1,307| 1,280| -2.1%|
+--------------------------------+----------+----------+-------------------+
|USA | 401| 398| -0.7%|
+--------------------------------+----------+----------+-------------------+
|Canada | 216| 207| -4.2%|
+--------------------------------+----------+----------+-------------------+
|North America | 617| 605| -1.9%|
+--------------------------------+----------+----------+-------------------+
|Asia-Pacific | 267| 260| -2.6%|
+--------------------------------+----------+----------+-------------------+
|Latin America | 90| 90| 0.0%|
+--------------------------------+----------+----------+-------------------+
|Group | 2,281| 2,235| -2.0%|
+--------------------------------+----------+----------+-------------------+
Appendix 5: Calendar, scope and change effects on sales
To be comparable to 2014 sales, 2013 sales must take into account the following
impacts:
Datum: 12.02.2015 - 07:32 Uhr
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