Worms & Cie results. Paris, March 21,

Transcription

1 Worms & Cie 2001 results Paris, March 21,

2 Agenda I - Group presentation Main 2001 issues / Simplified organization chart Asset breakdown / NAV and share price II - Subsidiaries activity Industry : ArjoWiggins, Carbonless Europe Services : Antalis,, SGS, Permal III results Consolidated accounts Individual accounts IV - Conclusion

3 I - Group presentation 2001 main issues Simplified organization chart Asset breakdown NAV and share price - 3 -

4 2001 main issues After the developments during year 2000 (AWA takeover, increase of the SGS stake), 2001 has been the year of a large reorganization on Worms assets : Legal, financial and operational split of the ex-awa group into three independent companies : ArjoWiggins, Antalis, Carbonless Europe Focus on the high potential activities/sectors with the sale of 40% in Soporcel,, 100% in Appleton, 47% in FFR and 0,8 % in Danone. Reinforcement in our core activities : focused acquisitions by ArjoWiggins and Antalis increase of our shareholdings in SGS - 4 -

5 Worms & Cie 2001 : key figures 2001 : a contrasted year m D Pre exceptionnal Net Results 108,0 273,0-60% Net Result (after exceptionnals) 233,0 95,0 +145% Shareholders' Equity 2 405, ,0 +10% Pro Forma Net Debt (952,0) (1 375,0) +423 Group's Net Debt (1 119,0) (2 115,0)

6 2001 : main issues In 2001, Worms & Cie has shown its ability to resist to a difficult economic environment : Strong increase of the consolidated net profit. The major part comes from the capital gains on the asset sale ( ( 233m in 2001 vs. 95m in 2000) Rapid decrease of the group's debt ( ( 1 bn between 12/2000 and 12/2001) Good NAV resistance (-9%) in a very difficult environment Continuation of a good performance of the share (+17% in 15 months versus -23% for the SBF 250 index) and perceptible reduction of the share discount - 6 -

7 Current structure 75% of our assets are controlled, non listed companies and leader in their sectors Worms & Cie Industry (43% (1) ) Services (39% (1) ) 100% 100% 100% 15% 100% Carbonless Europe ArjoWiggins Antalis SGS Permal European N 1 World N 1 European N 2 World N 1 World N (1) :% of the total assets Danone 3,4% 1,2% Accor

8 Asset breakdown by value Focus on the core assets : ArjoWiggins, Antalis,, SGS and Permal Total assets - march 2001 ( 5,7 bn) Quasi-liquidity 16% Autres 1% SGS 4% Permal Group 4% Antalis 29% ArjoWiggins 22% Carbonless papers * 17% Total assets - march 2002 ( 4,0 bn) Autres 2% SGS 6% Permal Group 6% Quasi-liquidity 18% ArjoWiggins 41% * : Appleton + Carbonless Europe SLS - FFR 7% Antalis 25% Carbonless Europe 2%

9 A stable NAV but better quality In the past 2 years, the ANV remained stable but the quality and the potential has effectively improved : m March March 2001 March 2000 Total /share Total /share /share Total assets value , ,0 21,9 Net Debt - Holding (478) (1 230) Net Debt - Subsidiaries (598) (730) Investments 350 Provisions (330) NAV before taxes , ,2 28,9 Taxes on capital gains (127) (612) Net NAV after taxes , ,9 24,7-9 -

10 Evolution of share price This strategy is well supported by the market Worms & Cie : SBF 250 : + 17% in 15 months - 23 % in 15 months

11 Evolution of share price Worms & Cie and CAC 40 since the IPO

12 II - Subsidiaries activity Industry (43% of the total asset) ArjoWiggins Carbonless Europe Service (39% of the total asset) Antalis - B to B distribution SGS - Certification - Inspection Permal Group - Funds of Hedge Funds manager

13 ArjoWiggins Creation, communication and security papers N 1, 2 or 3 worldwide in its markets 2 bn turnover Specialty 22% Security 7% Creation & Comm. 40% 30 industrial sites worldwide employees Art & Drawing 10% Coated US 21%

14 ArjoWiggins Creation and Communication Worldwide leader of communication papers Creation & Comm. 40% Worldwide leader of tracing papers

15 ArjoWiggins Art & Drawing Worldwide leader of drawing papers Worldwide leader of Art papers Art & Drawing 10%

16 ArjoWiggins Specialty Worldwide leader of synthetic card Specialty 22% Worldwide leader of medical papers

17 ArjoWiggins Security Security 7% Worldwide leader of security papers

18 2001 : a very good year for ArjoWiggins Stable turnover in a very weak global market (decrease of stocks in the paper chain and crisis in advertisement) Strong increase of the EBIT due to a better cost control and to a decrease in pulp price. m D Turnover 2 012, ,0-1% EBIT 158,2 118,7 +33% EBIT margin 7,9% 5,8% Capital Employed 1 063, ,0-7% ROCE +15% +10%

19 Results for 2001 Decrease in fixed costs due to the closure of the Dover and Newton Falls mills in year 2000 and to the improvement in the implementation of the productivity programs. Strong decrease in direct costs from the cheaper pulp and recycled papers prices and the better productivity. m % % Fixed costs * Direct costs * * at unchanged perimeter and exchange rate

20 Results for 2001 Carrying on acquisitions in our best know-how fields... Banknotes, security, fine Salto Brazil Déc Banknotes VHP Holland Fév Tracing papers Chartham UK June 2000 Security, fine Witcel Argentina June 2001 Synthetic papers Arjobex France, UK, USA Déc which represent a turnover 158m and a EBIT 16m in a full year

21 Results for 2001 EBIT increase 33% to 158m, i.e EBIT margin of 7,9% Except for Coated US, which increased in 2001 but remained negative, operating margin is 10,2%. m EBIT % 158, ,7 7,9% 80 5,8%

22 Results for 2001 The significant decrease in the working capital and the Capex control have generated a sharp increase in the operating cash- flow * m x Operating cash flow * before acquisitions, exceptionnal charges, interests and taxes

23 Synthesis of A steady progress since four years 250 m Résultat d'exploitation Free cash flow d'exploitation In the paper cycle which started in 1998, the EBIT increased on average of 17%, and 23% for the free cash flow. These figures confirm the strength and quality of ArjoWiggins business model.

24 2002 Forecasts The end of decline in inventories should be a good factor for sales The pulp prices should remain at a lower level than those of 2001 The global restructuring in trademarks and distribution networks for the creative papers will deliver its first results in H2 The restructuring programs are still under way in order to obtain a lower breakeven point, especially in the US. The global results should continue to increase

25 Carbonless Europe European leader of carbonless papers with 35% market share 2001 : A difficult market after the building up of anticipative inventories in 2000 Pressed margins in an over-capacity market. A restructuring plan launched in the beginning of 2002 to lower the breakeven point

26 Carbonless Europe m D Turnover 350,0 419,0-16% EBIT (36,3) 5,5 EBIT margin -10,4% 1,3% Capital Employed 235,0 251,8-7% ROCE -15% +2% 2002 should be the recovery year for Carbonless Europe, with a return to positive results due to an increase in demand and to the current restructuring plan

27 Who is Antalis? A leader in the B to B distribution of communication supports - papers, packaging, promotional products - Five major activities : Print Paper distribution to printers, publishers, and communication agencies Office Professional communication products distribution (papers, envelopes...) to companies, administrations and selling points Visual Communication Packaging Specific supports (papers, cardboard, plastics) for visual communication specialists Secondary packaging products for protection and conditioning Promotional Products Personalization and distribution of promotional products

28 Our products

29 Antalis key figures 2,5 bn turnover, Europe N 2, N World N 4N employees, including more than 2000 sales reps clients in 34 countries daily deliveries in Europe paper references 22 million tons of paper distributed each year warehouses in Europe, including the largest in Europe in Melun SénartS ( sq.. meters)

30 Antalis : leader in the main European countries Denmark #5 Belgium #1 Sweden n.s Holland #5 Finland #3 Baltics #3 United Kingdom #2 Poland #1 Czech Republic #3 Ireland #2 Slovakia #3 France #1 Romania #1 Portugal #3 Spain # Switzerland #1 Italy #2

31 2001 : a year of in depth transformation for Antalis Goal : Establish a more efficient customer oriented organization to help anticipate changes of the market Achievements : Merger of 37 companies in Europe to create an integrated group A market & geographical oriented organization instead of the pure geographical one More optimal commercial teams and focus on customer segments Re-engeneering engeneering of the information & logistic systems

32 Difficult market conditions in 2001 Lower volumes : Average decrease of 5% in the western european market (ie 80% of the group's turnover) and of 12% in France Pressed gross margins : Decreased selling prices and tougher purchase conditions with the manufacturers

33 2001 : a deteriorated performance m D Turnover 2 541, ,0-2% EBIT (39,4) 111,2 EBIT margin -1,6% 4,3% Capital Employed 497,0 563,0-12% ROCE -8% +20%

34 Antalis : medium term EBIT The global performance from 1995 remains very good in spite of the poor 2001 performance

35 The difficulties are mainly concentrated in 3 countries UK, essentially : merger of 2 companies with very different cultures End of process : mid-2001 France, also : Merger of 3 commercial teams reorganization with an unique logistic center (Melun Sénart) End of process : end of 2001 Italie, also : Merger of 7 companies End of process : mid

36 2001 : the new basis Logistic : Opening of the largest european warehouse in Melun Sénart Sales/Marketing : Commercial networks dedicated to customers' segments with specific approaches Implementation and fast growth of the e-commerce Development abroad : New activities in Germany (largest european market) and South America

37 Antalis goals for 2002 Return to positive results through Restored margins as a result of product mix improvement and negotiations for better purchase conditions with the suppliers Lower cost basis by reduced central structures and better project programs Progressive customer regains by a better service But the market remains weak

38 Société Générale de Surveillance Advanced world leader in quality-inspection and testing Operates in 140 countries through 850 offices, 330 laboratories and employees Activities in 7 fields Agriculture Minerals Petro- chemicals Consumer products Industrial products Certification Government contracts Positionned to take advantage of the growing demand for security and tracing (industrial services, public opinion )

39 Société Générale de Surveillance SGS accounts published Friday, March 22nd

40 Permal Group In spite of very difficult markets : a year of disappointing and unstable global markets (MSCI World -16,5%, Nikkei -23,5%) Investors have been more careful to invest which was unfavorable for funds subscriptions Permal has shown its resistance in this difficult situation Stable income Very good performances, compared with the index Development of new products : new funds have been launched Stable assets under management (Net subscriptions of +285M$, counter-balanced by global negative performances)

41 Permal Group m D Turnover 83,7 94,4-11% EBIT 22,0 26,3-16% EBIT margin 26,3% 27,9% Capital Employed 22,0 22,4-2% ROCE +100% +117% AUM % The goal for 2002 is to generate a growth of the AUM (favorable in first quarter)

42 III results Pro Forma consolidated accounts P&L Balance sheet Cash Flow Individual accounts Proposed dividend

43 Accounts transaprency In the actual risky context, it seems necessary to emphasize the following points: Worms & Cie accounts reflect exactly its debt (no debt is de- consolidated) The potential risks are fully provisioned, following the most prudential estimates (Fox River = 125 m$, DG IV = 184 m ) m Hedges are essentially in options and/or linked to under-lying The group accounts are audited by two worldwide known CPA firms

44 Pro Forma consolidated result (Equity method) m D Paper activities * Permal Group SLS-FFR Others Finance / Holding (45) (15) Operating Net result % Exceptional Net Result 263 (124) Goodwill amortization (138) (54) Net result % * : 40% consolidated in H1 and fully consolidated in H2-44 -

45 Worms & Cie - Exceptionnal net result m SLS-FFR disposal Appleton disposal 7 - Danone disposal Soporcel disposal 44 - Restructurations (21) (161) DHG IV provision (144) - SGS provision - (54) Taxes and others 136 (20) Exceptional Net Result 264 (124)

46 Worms & Cie - Pro forma cash flow evolution 31/12/ m (1 375) Dividends 219 Operational and financial costs (59) Taxes (243) Operating cash flow (83) Assets disposals 651 Acquisitions (40) Others (47) Exceptionnal cash flow 564 Paid dividends (58) 31/12/2001 cash (952)

47 Worms & Cie - Estimated cash at end of March 2002 m au 31/03/2002 (E) au 31/12/2001 Worms Pro Forma (2001 closing) (480) (952) Corporate AWA Worms new Pro Forma 2002 (300) (522) Total operating subsidiaries (620) (597) Total Group cash (920) (1 119)

48 Worms & Cie - Consolidated assets (equity method) m D Paper activities FFR Permal Group % Danone % Other assets % FFR seller credit % Goodwill % Total investments % Other assets % Total assets %

49 Worms & Cie - Consolidated liabilities (equity method) m D Equity % Provisions % Net debt % Other debts % Total liabilities %

50 Proposed dividend Dividende en / action (hors avoir fiscal) 0,60 +12% 0,56 0,50 +15% 0,46 +9% 0,50 0,40 0,40 0,30 0,

51 Proposed dividend Dividend to pay # of shares Dividend / share 0,56 net ; ie 0,84 brut Total dividend to pay 65,4 m Pay-Out Ratio on Net consolidated results 28% Yield (on a 20 share price basis) 4,2% gross ; 2,8% net

52 IV - Conclusion With a good dynamic management of its assets, Worms & Cie has well resisted the difficult environment in 2001 The group's debt has been largely reduced ( ( -1bn in 12 months) We will continue to focus on the external development of our assets in order to strengthen their worldwide leadership in the coming years

53 IV - Conclusion In 2002 we expect : Return to NAV growth Return to profit of the subsidiaries that have posted losses this year A confirmation of good performances from ArjoWiggins, SGS and Permal group A continuing decrease in Worms' debt as well as its subsidiaries debt An increase of the pre-exceptional net result and a confirmation of the financial strength of the group

54 Worms & Cie