PowerPoint presentation Half-Year Results

Transcription

1 PowerPoint presentation 2007 Half-Year Results 13 September 2007

2 Contents 1. Introduction 2. Interim financial results 3. Results by businesses 4. Strategy and Outlook Half-Year Results - 13 September 2007

3 First semester 2007 summary Results in progress despite a difficult environment Implementation of the strategy announced : strengthen sectors in which we are leaders Half-Year Results - 13 September 2007

4 First-half 2007: Highlights After focusing on the paper sector, Sequana Capital implements its new strategy Progress in our efforts to increase operational efficiency: Turnaround of Antalis UK and Antalis Promotional Products Closure of the Arjowiggins plant in Nivelles, Belgium by year-end 2007 (carbonless paper) Start-up of Arjowiggins production sites in the Czech Republic for medical and carbonless paper Grow in the sectors where we are leaders; exit markets where we are not competitive Acquisition of MAP Merchant Group, Europe's fourth largest distributor of communication products Acquisition of Dalum Papir (recycled coated graphic paper) Finalisation of the disposal of Canson and Canson Inc (US) Half-Year Results - 13 September 2007

5 First-half 2007: Highlights Two other key events also marked the group in the first half of 2007: Change in Sequana Capital's shareholding structure: DLMD, in which Pascal Lebard has a controlling interest, purchased a 22% stake in Sequana Capital from IFIL, reducing its stake to 27% IFIL and DLMD will take concerted action as part of a three-year shareholder pact Final settlement of DG4 dispute In compliance with the 26 April 2007 ruling, Sequana Capital must pay an additional 62m on top of the 92m fine already paid, which will have a positive impact on 2007 net income of 52.5m (including 10m in interest) through the write-back of provisions. The payment was made on 12 September Half-Year Results - 13 September 2007

6 Contents 1. Introduction 2. Interim financial results 3. Results by businesses 4. Strategy and Outlook Half-Year Results - 13 September 2007

7 Sequana: Simplified Consolidated Income Statement The overall operating performance increased slightly compared to the year-earlier period IFRS ( m) 30/06/ /06/2006 % chg Consolidated net sales 2 068, ,1 +2,8% Consolidated EBITDA 92,4 92,5 (0,1%) Current operating income (EBIT) 50,8 49,2 +3,3% Net financial income (expense) (10,0) (9,7) +3,1% Current taxes (16,2) (16,0) +1,3% Minority interests and other 0,4 0,5 (20,0%) Current net income 25,0 24,0 +4,2% Non-recurring income (expense) 70,8 45,6 +55,3% Discontinued operations 37,0 Consolidated net income 95,8 106,5 (10,0%) Half-Year Results - 13 September 2007

8 Sequana: Consolidated Balance Sheet vs 30 June 2006 A persistently solid balance sheet Exit from SGS Slight increase in WCR: Mainly for Antalis (cash payments to suppliers), which was offset by Arjowiggins' strong H performance Significant decline in pension fund provisions due to changes in the discount rate (higher interest rates) and WTPS payments (UK pension fund) Increase in the restructuring provision (already reported at 31/12/06, no new provision in H1 2007) IFRS ( m) 30/06/ /06/2006 Goodwill 775,6 809,4 Equity investments 739,8 816,8 Investments 244,4 858,5 Operating WCR 693,4 673,6 Non-operating WCR (203,0) (226,3) Other assets 5,2 2,5 Total Assets 2 255, ,5 Shareholders' equity 1 331, ,2 DG4 provision 154,1 202,8 Fox River provision 114,2 127,8 Pension fund provision 73,4 149,9 Restructuring provision 75,8 8,0 Other provisions 51,9 67,6 Net debt 454,8 471,2 Total Liabilities 2 255, , Half-Year Results - 13 September 2007

9 Holding company cash flow statement Non-recurring items have a negative impact on the holding company's net cash position: Payment of 21m in corporate taxes in 2006 Payment of expenses and carrying fees on SGS share exchange offer Exit tax payment Dividend payment IFRS ( m) H Net cash position at 31 December Péchel dividend 3 Investment and operating expenses (7) Taxes and other (16) Current cash flow (20) Taxes and expenses on share exchange offer (32) SGS disposal 4 Exit tax (19) Other (3) Non-recurring cash flow (50) Dividends paid (29) Net cash (debt 30/06/ Net cash of operating subsidiaries (505) Consolidated net cash (455) Half-Year Results - 13 September 2007

10 Consolidated cash flow statement Slight increase in consolidated debt: Most of the negative change in Group WCR is due to Antalis' cash payments to suppliers in exchange for discounts Taxes paid reflect taxes on the SGS share exchange offer and exit tax, in addition to regular corporate taxes Net acquisitions and disposals mainly reflect the remaining proceeds on the disposal of Canson and Antalis property assets, net of small acquisitions in packaging IFRS ( m) H Opening net cash (378) EBITDA 93 Change in "operating" WCR (55) Investments (49) Taxes and financing costs (71) Acquisitions and disposals 53 Other movements (19) Dividends paid (29) Closing net cash (455) Half-Year Results - 13 September 2007

11 Contents 1. Introduction 2. Interim financial results 3. Results by businesses 4. Strategy and Outlook Half-Year Results - 13 September 2007

12 Sequana Capital: Estimated pro-forma impact of acquisitions on H sales Breakdown of H1 sales: Antalis including MAP Breakdown of H1 sales: Arjowiggins including Dalum Dalum 5% Map 38% Total: 1,906m Total: 1,045m H sales of Sequana Capital, including acquisitions 2,951m (up 47% compared to H1 2006) Note: The H1 results of the newly acquired companies have not been consolidated in the figures below Half-Year Results - 13 September 2007

13 Arjowiggins and Antalis join forces in Asia 50/50 shareholding Image Paper Asia: 100m in sales, 400 employees, customers Half-Year Results - 13 September 2007

14 Results by businesses Half-Year Results - 13 September 2007

15 Arjowiggins: Market trends and environment A general improvement in our markets In H1 2007, commodity prices continued to rise sharply in euro terms, with pulp and other commodities up an average of 6%/t and 3.5%/t, respectively, compared to H Energy costs remain high, but declined 5.7%/t on average thanks notably to the return to regulated rates in France Despite cost-cutting efforts, the net impact of higher prices was 23/t in H compared to the year-earlier period, or a total impact of 18m Demand for our products remained strong throughout the first half in all regions. Growth by region is broken down as follows compared to H1 2006: +4.5% in EMEA ( ) +5.6% in North and South America ($) +6.4% in the Asia Pacific region ($) Note: The average /$ exchange rate for Arjowiggins was $1.33 in H vs $1.23 in H (+8.1%). As a result, growth was much weaker in euro terms Half-Year Results - 13 September 2007

16 Arjowiggins: Key figures from the financial statements IFRS ( m) 30/06/ /06/2006 % chg proforma1 Sales 993,0 971,7 +2,2% EBITDA 64,2 67,5 (4,9%) Operating income 34,7 32,9 +5,5% Margin (%) 3,5% 3,4% Net income 55,5 30,2 +83,8% Change in debt 50,5 38,2 +32,2% IFRS ( m) 30/06/ /12/2006 % chg Net cash (debt) (199,3) (249,8) +20,2% Capital employed 801,6 810,9 (1,1)% ROCE 8,1% 7,8% +0,3 pt Comments on H results Sales increased 2.2% in euro terms (+4.4% using a constant exchange rate) thanks to the combination of positive price and volume effects Operating income increased 5.5%, buoyed by the performance of the Communication and Security & Technology segments Net debt continued to contract to 199m from 250m at 31 December 2006 ROCE improved to 8.1% from 7.8% in Figures restated for Canson Half-Year Results - 13 September 2007

17 Arjowiggins: volume and prices improvement +10,8 +4,4 32,9 +4,6 +4,4 34,7-22,4 EBIT at June 2006 Volumes Price Pulp & Raw materials Energy Fixed costs EBIT at June Half-Year Results - 13 September 2007

18 Arjowiggins: Key figures from the cash flow statement IFRS ( m) 30/06/ /06/2006 Opening debt (cash) 249,8 291,0 EBITDA 64,2 67,5 Change in WCR (9,2) 11,0 Capex (36,7) (34,8) Other current movements (7,6) (0,3) Cash flow from operations 10,7 43,4 Tax, finance, forex and other (19,3) (10,9) Disposals (acquisitions) 59,1 5,7 Decrease (increase) in debt 50,5 38,2 Closing debt (cash) 199,3 252,8 Comments on H results Net debt was reduced again to 199m, bringing gearing to 49% WCR accounted for 9.2% of sales, vs 12.3% at 30 June 2006 Restructuring charges had a negative cash impact of 5m Co-generation contracts were restated as debt for 8.5m Debt was reduced by nearly 60m after receiving the remaining proceeds on the disposal of Canson's processing activities and other non-strategic assets (land, houses, etc.) Half-Year Results - 13 September 2007

19 Arjowiggins: Breakdown of H1 sales by segment Graphic (34%) Communication (31%) Security & Technology (35%) Coated fine paper US 45% Coated recycled fine paper 8% Coated fine paper Europe 47% Fine technical paper 39% Graphic arts 6% Luxury packaging 11% Promotion & Advertising 21% Corporate communication 23% Security 46% Medical & Hospital 16% Industrial 38% Segments in which Arjowiggins ranks among the Top 3 in the market Half-Year Results - 13 September 2007

20 EFFICIENCY BOOSTERS Arjowiggins: Strategic priorities GROWTH BOOSTERS INNOVATION For our customers ENVIRONMENT & GLOBAL SECURITY FAST GROWING MARKET LEADERSHIP in everything we do GRAPHIC SYNERGIES Sales,Technologies, Processes COMMUNICATION SECURITY & TECHNOLOGY Half-Year Results - 13 September 2007

21 Arjowiggins: Graphic Segment In millions of euros (except ROCE) Sales EBITDA Current operating income (1) H H H H H H Capital employed Cash flow from operating activities (1) ROCE (2) % 1.9% (1) H H H H H H Cash flow from operating activities: EBITDA Capital Expenditure Change in WCR 2. ROCE is defined as Current Operating Income/Capital Employed (year-on-year) Half-Year Results - 13 September 2007

22 Graphic Segment: Focus on coated paper Innovation: A new generation of premium graphic paper Arjowiggins research centres have developed a product combining FSC-certified virgin pulp and a high proportion of recycled fibres, with characteristics comparable to conventional coated paper in terms of whiteness, opacity, brilliance and printability Productivity: Europe: "Avenir" cost-cutting plan for coated paper calls for a 15% staff reduction by year-end 2007 with a 5% increase in volumes (in agreement with the unions) US: Productivity gains and the 1 July 2007 price increase of $60/t will not offset the $100/t increase in pulp prices over twelve months. The impact of anti-dumping measures and the development of a "Green" product offer will not be felt before Half-Year Results - 13 September 2007

23 Graphic Segment: Focus on recycled paper Acquisition of Dalum Papir Acquisition of 100% of Dalum Papir A/S, the Danish manufacturer of premium recycled graphic paper a fast-growing segment, up 10% a year Dalum Papir is the European leader in premium recycled graphic paper 2006 sales of 93m; 310 employees Sales in 23 countries in Europe, Asia and North America World-famous international brands: "Cyclus" Acquisition price of 63.4m Potential earn-out after two years, depending on the synergies generated by Dalum Papir's current management team Arjowiggins already produces 100% recycled graphic paper under the "Eural" brand at its Bourray plant in France The acquisition took effect on 30 August Half-Year Results - 13 September 2007

24 Arjowiggins: Communication Segment In millions of euros (except ROCE) Sales EBITDA Current operating income H H H H H H Capital employed Cash flow from operating activities (1) ROCE (2) % 14.7% 4 H H Cash flow from operating activities: EBITDA Capital Expenditure Change in WCR 2. ROCE is defined as Current Operating Income/Capital Employed (year-on-year) H H H H Half-Year Results - 13 September 2007

25 Communication Segment: Focus on fine technical paper Restructuring was tough, but is now over: H2 2007: First impact of restructuring Departure of 200 employees by year-end 2007 Closure of the Nivelles plant Start-up of paper transformation at the Czech Bor site: 10,000 t in 2007, 40,000 t in 2008 Simplification of logistics flows 2008 and beyond: Full-year impact of restructuring (net cost: 16m; annual savings: 10m) Industry consolidation (halting of Mondi, capacity reduction at Mitsubishi) New applications in micro-capsule technology Half-Year Results - 13 September 2007

26 Communication Segment: Focus on innovation H1 2007: Launch of "Skin" First success of process combinations set up in 2006: Artistic director with high innovation capacity Active back-selling (pull versus push) Distribution partnership Launched in February and already adopted by many of the big luxury brands H2 2007: expansion of green product offer 100% FSC-certified communication paper UK launch of "carbon neutral" Conqueror brand A strong differentiation factor that supports our upmarket positioning Half-Year Results - 13 September 2007

27 Communication Segment: Focus on lean manufacturing Example : Lean manufacturing at the Stoneywood plant in Scotland A management system based on delegation and visual performance indicators. Hourly monitoring to ensure standards are respected on the factory floor. Results: Cost reductions of 3.8m compared to 2006 standards, for equivalent annual production Flexibility allows 20% more changes with less waste, thanks to 25 best practices Stoneywood Paper Mill - Aberdeen Average Colour Change Time (mins) % Improvement 44% Improvement 39% Improvement Problem-solving loops were set up with maintenance Work on all transition phases, start-up, changes: save time, reduce waste Mobilisation around waste reduction % Improvement Jan 07 Jun 07 0 PM 09 PM 02 PM 08 PM Half-Year Results - 13 September 2007

28 Communication Segment: Focus on organic growth Start-up of the new Quzhou tracing paper plant in Q Half-Year Results - 13 September 2007

29 Arjowiggins: Security & Technology Segment In millions of euros (except ROCE) Sales EBITDA Current operating income H H H H H H Capital employed Cash flow from operating activities (1) ROCE (2) % 9.5% 3 H H H H Cash flow from operating activities: EBITDA Capital Expenditure Change in WCR 2. ROCE is defined as Current Operating Income/Capital Employed (year-on-year) H H Half-Year Results - 13 September 2007

30 Security & Technology: Focus on organic growth The Shouguang plant produces its first decorative paper rolls Half-Year Results - 13 September 2007

31 Arjowiggins Full-year outlook Encouraging operating prospects Commodity prices will continue to rise sharply in H2 with pulp prices up an estimated 5%/t, other commodities up 4%/t and energy up 1%/t in euro terms between H1 and H The Graphic segment will benefit from the integration of Dalum and strong demand for "green" recycled products, although it will be hard to offset higher commodity prices in "classic" fine coated papers in Europe and the US (80% of the segment after the integration of Dalum) The Communication and Security & Technology segments will continue to report growth in sales and operating income, thanks notably to the first impact of restructuring at the Rives and Nivelles facilities These factors, combined with cutbacks in fixed costs throughout Arjowiggins, should result in a better H performance than in H As a result, the full-year operating results (EBITDA and EBIT) will at least be in line with the 2006 performance Half-Year Results - 13 September 2007

32 Results by businesses Half-Year Results - 13 September 2007

33 Antalis: Market trends and environment Favourable volume and pricing trends Volumes and prices generally held up well compared to H1 2006, with strong increases in uncoated paper (photocopy and offset printing paper) Acquisition of Axelium in France and disposal of our Italian paper activities in accordance with our agreement with PaperlinX With the Paxor acquisition, we have obtained critical mass in the industrial packaging market in France Strong performances in Industrial Packaging and Visual Communication products Half-Year Results - 13 September 2007

34 Antalis: Key figures from the financial statements (proforma) IFRS ( m) 30/06/ /06/2006 % chg proforma Sales 1 178, ,0 +3,2% EBITDA 37,9 32,2 +17,7% Operating income 26,1 20,0 +30,5% Margin (%) 2,2% 1,8% Net income 20,1 0,0 Change in debt (34,9) 33,0 Comments on H results Sales are on the rise Strong EBITDA growth reflects: improvement in the margin impact of cash discounts from suppliers on the income statement tight cost management IFRS ( m) 30/06/ /12/2006 % chg Net cash (debt) (289,0) (254,0) (13,8%) Capital employed 547,4 584,3 (6,3%) ROCE 9,8% 8,2% +1,6 pt Restructuring plans are benefiting Antalis UK and Antalis Promotional Products Half-Year Results - 13 September 2007

35 Antalis: Positive effects of volumes and cash discounts +6,0 +1,0 +3,0 +3,5 26,2 20,0-5,4-1,9 EBIT at June 2006 Volumes Prices Net Cash discounts Inflation Productivity Other variable costs EBIT juin Half-Year Results - 13 September 2007

36 Antalis: Key figures from the cash flow statement IFRS ( m) 30/06/ /06/2006 Opening debt (cash) 254,0 316,0 EBITDA 37,9 32,2 Change in WCR (45,9) 37,4 Capex (12,4) (15,2) Cash flow from operating activities (20,4) 54,4 Tax, finance cost (17,1) (11,6) Disposals (acquisitions) 11,8 (2,2) Other (9,1) (7,9) Decrease (increase) in debt (34,8) 32,7 Closing debt (cash) 288,8 283,3 Comments on H results The change in WCR is largely due to the impact of cash discounts from suppliers ( 41m ) Capital expenditure declined due to the slowdown in computer investments The balance on the disposal of property assets (initiated in 2006) was received in early 2007, partially offsetting the cost of acquisitions in the industrial packaging sector Half-Year Results - 13 September 2007

37 Antalis: Breakdown of sales Europe (90%) Rest of world (10%) France 20% Asia 17% Central & Eastern Europe 9% South Africa 52% Western Europe excl. France 71% South America 31% Half-Year Results - 13 September 2007

38 Antalis: Europe Segment In millions of euros (except ROCE) Sales EBITDA Current operating income H1 1S 2006 H1 1S S S 2007 H H S S 2007 H H Capital employed Cash flow from operating activities (1) ROCE (2) ,7% 7,3% Including 41m in cash discounts (25) H H H1 1S S H Cash flow from operating activities: Current operating income + Depreciation - Investment - Change in WCR 2. ROCE is defined as Current Operating Income/Capital Employed 1S S 2007 H H Half-Year Results - 13 September 2007

39 Europe: Integration of Axelium in France The integration of Axelium is proceeding as planned Acquisition of PaperlinX's French paper activities on 1 May 2007: sales of 112m; 175 employees General restructuring of logistics and sales is currently underway At the end of September, the restructured business will be merged with Antalis France: increasing its presence in printing paper, office paper and visual communication products and boosting Antalis' leading position in this market Half-Year Results - 13 September 2007

40 Europe: Successful restructuring in the UK A plan to boost profitability at Antalis UK was launched in mid 2006 and covers the entire value-added chain New marketing approach: customer segmentation, pricing policy and reorganisation of sales teams Logistics: overhaul of warehouse locations (30% decline in storage areas) and the reorganisation of transport (optimisation of distribution routes) Review of product lines and optimisation of inventories Cost-cutting plan: return on investment expected as of year-end 2007 The MAP acquisition will provide critical mass in the UK market and should help fuel ongoing improvements in profitability Half-Year Results - 13 September 2007

41 Antalis: Rest of World Segment In millions of euros (except ROCE) Sales EBITDA Current operating income H1 1S 2006 H1 1S 2007 H1 1S 2006 H1 1S S H H1 1S 2007 Capital employed Cash flow from operating activities (1) ROCE (2) ,5% 3 4 8,9% H H H1 1S S H S H S H Cash flow from operating activities: Current operating income + Depreciation - Investment - Change in WCR 2. ROCE is defined as Current Operating Income/Capital Employed Half-Year Results - 13 September 2007

42 Rest of World: Development in fast-growing regions Greenfield installation in Brazil Start-up of paper merchanting activity in H to complement the Graphic Supplies business started in May 2006 Operations reached breakeven at 30 June 2007 Further developments in South Africa The 2006 acquisition of First Graphics has paid off as a means of strengthening our Graphic Supplies business The takeover of the business of Kodak Nexpress in H reinforces our presence in this strategic line of development Half-Year Results - 13 September 2007

43 Antalis MAP: The European leader in paper distribution Leader in Europe N 1 in 17 countries Market share >20% 15-20% 10-15% 5-10% 0-5% #3 #1 #1 #1 #1 #1 #2 #1 #2 #2 #1 #2 #2 #5 #1 #2 #1 #1 #1 #3 #1 #1 #1 #1 #1 23% Comments Antalis is now number two in value terms The leaders in each country generally have the best customer portfolios In a market in which the main leverages are purchasing and logistics, the creation of the European leader should generate high value in the medium to long term. 19% MAP + Antalis PaperlinX Market share in Europe 14% 12%11%10% 9% Papyrus Top 5 66% Antalis Map Igepa Inapa 5% 3% 3% 2% Burgo Torraspapel Top 10 83% Europapier Berberich 12% Others '000 tonnes 2,500 2,000 1,500 1, Half-Year Results - 13 September 2007

44 Antalis MAP: Key pro forma 2006 figures Creation of a leader in terms of growth and profitability ( m) Antalis MAP Combined entity Sales 2,309 1,446 3,755 EBITDA Margin (%) % % % EBIT Margin (%) % % % Half-Year Results - 13 September 2007

45 The MAP acquisition is proceeding as planned The proposal was sent for approval to the European Commission in Brussels on 5 September A response is expected by the end of October at the latest Some minor disposals may have to be made Talks with banks to finance the operation are advancing smoothly Sequana Capital will increase Antalis' share capital by at least 150m The most probable scenario is that the remainder will be financed through an extension of Antalis' current financing facilities: A partially redeemable, 5-year credit facility backed by group debtors, including some debtors from the MAP group Given Antalis' new, stronger leverage and the tightening of lending conditions, this credit facility will probably be considerably more costly than the 430m line currently in place. We do not foresee any major problems with financing, which should be obtained within the planned time frame Half-Year Results - 13 September 2007

46 Antalis Outlook H is looking good Another strong performance for Antalis in H The MAP acquisition occurs at a time when the pricing environment is looking more upbeat in the paper market There will still be a few more cash payments to suppliers in H2, but most have already been made now that the proceeds from the sale of buildings have been reinvested Half-Year Results - 13 September 2007

47 Contents 1. Introduction 2. Interim financial results 3. Results by businesses 4. Strategy and Outlook Half-Year Results - 13 September 2007

48 Outlook The Group's operating income should increase significantly in 2007 compared to 2006 Depending on year-end impairment tests, the following non-recurring items will have a positive impact on net income: Write-back of the DG IV provision, Permal earn-outs, Further insurance reimbursements for Fox River are likely Half-Year Results - 13 September 2007

49 Appendix Half-Year Results - 13 September 2007

50 Sequana Capital: Breakdown of H sales Production Distribution Sales: 993m Net consolidated sales: 2,068m Sales: 1,179m Breakdown of sales by segment Breakdown of sales by region AW - Communication 14% AW - Graphic 15% ANT - Print 31% United States 9% Rest of Europe 6% Rest of World 14% AW - Security & Technology 16% ANT - Other 11% ANT - Office 13% European Union 71% Half-Year Results - 13 September 2007

51 Share price performance Market capitalisation at 12 September 2007: 1 158,8 m Share price at 12 September 2007: 23,57 / share Share price ( ) Dividend payout: 3.3 per share Announcement of share exchange offer Offer closing Offer opening Announcement of the Dalum Papir acquisition Announcement of Antalis acquisition of MAP Merchant Group and DLMD's purchase of a 21.9% stake in Sequana Capital Volume janv- 06 févr- 06 mars- 06 avr- 06 mai- 06 juin- 06 juil- 06 août- 06 sept- 06 oct- 06 nov- 06 déc- 06 jan v- 07 févr- 07 mars- 07 avr- 07 mai- 07 juin- 07 juil- 07 août- 07 sept Half-Year Results - 13 September 2007

52 Sequana Capital: Consolidated balance sheet compared to 31 December 2006 Principal changes: IFRS ( m) 30/06/ /12/2006 % chg chg. Write-back of the DG IV provision for 52m Decline in net cash position due to: Dividend payment Payment of taxes and expenses on the SGS disposal Current tax payment Exit tax payment The decline in other liabilities is due to the same factors as the decline in net cash (provisions set aside at 31 December) Arjowiggins 895,3 859,5 +4,2% Antalis 429,9 395,5 +8,7% Other 14,8 19,3 (23,3%) Fox River deposit 81,0 85,2 (4,9%) DGIV deposit 92,1 92,1 +0,0% Other financial assets (Permal) 46,1 46,9 (1,7%) Other assets 21,1 14,2 +48,6% Net cash position 49,7 148,5 (66,5%) Total Assets 1 630, ,2 (1,9%) Stockholders' equity 1 321, ,3 +7,1% DG4 provision 154,1 205,0 (24,8%) Fox River provision 114,2 121,4 (5,9%) Other provisions 9,7 10,4 (6,7%) Other liabilities 30,9 91,1 (66,1%) Total Liabilities 1 630, ,2 (1,9%) Half-Year Results - 13 September 2007

53 Sequana Capital: Breakdown of non-recurring items Non-recurring items Net income is flat in H compared to the year-earlier year, thanks to the write-back of the DG IV provision and the disposal of non-strategic assets by our subsidiaries Disposal of SGS and Canson H H Arjowiggins non-recurring income 5,6 14,3 (60,8%) Antalis non-recurring income 10,7 (15,7) (168,2%) Legg Mason capital gain 24,7 SGS capital gain 2,2 DG IV provision write-back 52,1 Holdings and Others non-recurring income 0,2 22,3 (99,1%) Consolidated non-recurring income 70,8 45,6 +55,3% Discontinued operations 37,0 Consolidated net income 95,8 106,5 (10,0%) Half-Year Results - 13 September 2007

54 PowerPoint presentation 2007 Half-Year Results