Consolidated H results: A good first half; the Sperian era begins

Transcription

1 Consolidated H results: A good first half; the Sperian era begins Organic sales moved up High operating margin sustained Net income sharply higher Improvement in working capital requirements Paris, August 29, 2007: The Sperian Protection group today announced its consolidated results for the first half of Most worthy of note during the first half were the change in the Group's name, the stepped-up strategy of expansion with the acquisition of Nacre and production capacity increases at two plants in France (anti-contamination suits and gloves for electricians). in million H H at 2006 exch rate H excl. Sunoptics* Sales Income of operating activities in % of sales 15.6% 15.7% 16.0% Net income from continuing operations in % of sales 9.3% 9.3% 6.7% Net debt First-half sales in line with full-year target Consolidated sales for the first half of 2007 were million, 0.7% higher on a like-for-like basis than in H The dollar's depreciation against the euro during the period trimmed nearly 14 million (3.6%) from reported revenue. First-half figures do not include the contribution of Nacre, which was first consolidated on 30 June As anticipated, estimated shipments of disposable respiratory masks in connection with the potential avian flu pandemic were lower in H than in H Organic growth over the first six months excluding the avian flu factor is estimated at 2.6%. Most businesses delivered organic growth over the period. Only the respiratory segment posted a decline in head protection segment, owing to temporary effects due to a change in regulations in the United States, which slowed down orders of new respiratory systems for firefighters, and due to a downturn in shipments of disposable masks in Europe, as mentioned above. In body protection, only the clothing segment posted a significant decline as sales of image wear contracted.

2 High operating margin Income of operating activities was 57.6 million in H1 2007, compared with the exceptional level of 60.6 million in H1 2006, excluding the impact of Sunoptics, which was sold in September The operating margin 1 was 15.6% compared with 16.0% in prior-year period. At comparable exchange rates, income of operating activities was about the same level as in H at 60.2 million (operating margin: 15.7%). This solid operating margin reflects a mix of factors: an upturn in the gross margin driven by sales growth at constant exchange rates and benefits of manufacturing optimisation plans implemented in several business segments; an increase in selling and administrative costs (up 4% at constant exchange rates), which is in keeping with the Group's growth strategy; and higher research and development costs due to efforts to step up innovation. EBITDA 2 was 66.1 million and the EBITDA margin was 17.9%. Robust growth in net income The Group's net income advanced by more than 35% year-on-year (41% at constant exchange rates) to 34.4 million. Other income mainly includes a net charge of 2.7 million in connection with the Group's name change and partial impairment of some Group brands, which will become product names under the plan to rationalize the brand portfolio. In H1 2006, this item mainly included a 12.7 million charge for impairment of intangible assets in the gloves segment. Net financial income was slightly higher: the improvement in interest on the debt owing to the fall in average debt over the first half (decrease of 48 million) was offset by a 0.4 million currency loss booked during the period compared with a 1 million currency gain in the same year-ago period. The tax charge was 13.5 million, giving an effective tax rate of 28.2%, compared with 13.8 million and 35.2% in H The Group is benefiting from the favourable effect of its tax loss carry-forward in France. Diluted net income per share moved up 35% to 4.43 from 3.28 in H Solid financial structure Net debt stood at 298 million at June 30, 2007, including the acquisition of Nacre last June for 93 million. The net debt-to-ebitda ratio 3 was 2.52x as of June 30, 2007 and the net debt-to-equity ratio was 53%. Working capital requirements improved by comparison with June 30, 2006 ( 176 million against 195 million) owing to the action plans carried out to improve average working capital requirements over the year. It came to 88 days of sales at 30 June 2007 compared with 99 days of sales at June 30, Income of operating activities / Revenue 2 Earnings before interest, tax, depreciation, amortization and exceptional items 3 Annualised EBITDA over 1 July June 2007 reported, ie excluding Nacre acquisition impact

3 Positive Outlook Sperian Protection continues to work towards achieving its vision : to become world reference leader in its business by Thus, the Group confirms its target for the year, i.e. organic sales growth between 2%-3% and an operating margin of around 14.3%, at comparable exchange rate. «Our change of name from Bacou-Dalloz to Sperian Protection stands out as the key event in the first half of It signals the start of a new era for our Group, a reflection of our new dimension and an affirmation of our ambition: to become the world reference leader in personal protection in the workplace. The Group's new corporate identity will be a formidable growth driver in the medium term and is generating a great deal of enthusiasm within the company.» said Henri-Dominique Petit, Chairman and CEO of Sperian Protection. About Sperian Protection With nearly 6000 employees worldwide, Sperian Protection is resolutely geared towards international markets. The world leader in personal protective equipment (hearing, eye, respiratory and fall protection, gloves, clothing and footwear), the Group offers innovative products adapted to high-risk environments so that all workers in the manufacturing and services industries can work with confidence. Sperian Protection is listed on Euronext s Eurolist and on the SBF120. It is eligible for the SRD deferred settlement system. Investor relations Véronique Boca Tel: +33 (0) InvestorRelations@sperianprotection.com Press relations Christophe Mathy Tel: +33 (0) cmathy@sperianprotection.com Naina Rambatomanga, Franca Vissière Tel: + 33 (0) / n.rambato@harrison-wolf.com f.vissiere@harrison-wolf.com

4 Consolidated balance sheet In thousands June 2007 Dec 2006 ASSETS Non-current assets Goodwill on acquisition 560, ,105 Other intangible assets 76,107 81,050 Total intangible assets 637, ,155 Property, plant and equipment 81,266 83,316 Deferred tax assets 24,217 21,921 Other financial assets 5,680 5,294 Total non-current assets 748, ,686 Current assets Inventories and work in progress 125, ,242 Trade receivables 151, ,058 Other operating receivables 20,092 15,372 Derivative financial instruments 3,038 4,172 Cash and cash equivalent 17,175 21,673 Total current assets 316, ,517 TOTAL ASSETS 1 065, ,203 EQUITY AND LIABILITIES Equity attributable to equity holders of the parent Share capital 15,408 15,330 Share premium 445, ,221 Currency translation differences (25,119) (16,956) Gains or losses on cash-flow hedges 1,054 1,945 Income from the period 34,279 40,963 Reserves and retained earnings 91,040 58,139 Total shareholders equity 561, ,642 Minority interests 1, Total equity 562, ,603 Non-current liabilities Deferred tax liabilities 12,129 13,096 Long term financial liabilities 264, ,109 Retirement benefit obligation 13,136 12,948 Provisions 31,402 30,777 Total non-current liabilities 321, ,930 Current liabilities Trade payables and other operating payables 108,293 98,365 Current tax liabilities 12,862 5,875 Short-term financial instruments 50,260 49,595 Derivative financial instruments 3,351 2,767 Provisions 6,389 11,068 Total current liabilities 181, ,670 Total liabilities 502, ,600 TOTAL EQUITY AND LIABILITIES 1,065, ,203

5 Consolidated income statement In thousands June 2007 June 2006 CONTINUING OPERATIONS Revenue 369, ,455 Cost of sales (222,464) (229,875) Gross profit 147, ,580 Sales & Marketing expenses (45,900) (46,377) General & Administrative expenses (36,692) (35,936) R&D expenses (7,269) (6,657) Income of operating activities 57,562 60,610 Other income (2,705) (14,673) Income before tax & finance costs 54,857 45,937 Financial income (6,922) (6,729) Income before tax 47,935 39,208 Income tax (13,511) (13,800) NET INCOME FROM CONTINUING OPERATIONS 34,424 25,408 Net income from discontinued operations 0 2 NET INCOME 34,424 25,410 Attributable to : Equity holders of the parent 34,279 25,328 Minority interest ,424 25,410 Earnings per share Basic earning per share (net income) Diluted earning per share (net income) Weighted average number of shares in issue 7,669,041 7,629,700 Weighted average number of shares fully diluted 7,745,621 7,716,094

6 Consolidated statement of cash-flows In thousands June 2007 June 2006 Operating activities Attributable net income before tax 47,790 39,128 Minority interests Non-cash income and expense : Share-based payment Depreciation and amortization 12,130 23,873 Change in provisions (1,549) (1,155) Change in financial instruments (242) 828 Gains or losses on divestment of assets (308) 5 Income tax paid (7,337) (14,781) Operating cash-flow before change in working capital 51,411 48,608 (Increase)/Decrease in inventories and work in progress (7,172) (17,866) (Increase)/ Decrease in trade receivables (15,517) (18,978) Increase /(Decrease) in trade payables 2,644 6,535 Change in other operating assets/(liabilities) (6,991) (2,223) Change in working capital (27,036) (32,532) Net cash provided by operating activities 24,375 16,076 Invest ing activities Acquisitions of intangible, tangible and financial assets (9,607) (12,165) Acquisition of investments in consolidated companies (93,652) - Cash / (Debt) of acquired companies Cash / (Debt) of divested companies (1,483) - Divestment of intangible and tangible assets 1, Net cash provided/(used) by investing activities (102,815) (12,119) Financing activities Increase in financial liabilities 93,282 Decrease in borrowings (9,801) (8,615) Capital increase 3,101 1,383 Purchase of treasury shares (liquidity contract) 26 (885) Dividends paid to parent company shareholders (8,062) (6,872) Dividends paid to minority interests in consolidated companies (40) Net cash provided/(used) by financing activities 78,506 (14,989) Effect of exchange rate changes on cash and cash equivalent 1 (788) Change in cash and cash equivalents 67 (11,820) Opening net cash and cash equivalents (9,583) 897 Closing net cash and cash equivalents (9,516) (10,923) Movement in net cash and cash equivalents 67 (11,820)