Main Financial Data 2008
organisation chart of the group - DECEMBer 31, 2008 DELACHAUX S.A. FRANCE 89,50% 90% 99,38% CONDUCTIX-WAMPFLER Wuhan Ltd China CONDUCTIX-WAMPFLER Srl Italy CONDUCTIX-WAMPFLER AG Germany CONDUCTIX-WAMPFLER Inc. CONDUCTIX-WAMPFLER Pte Ltd Singapore ETS RAOUL LENOIR SAS M.E.C. Srl Italy 10.50% DELACHAUX METAL inc. TAMARIS INDUSTRIES SAS FONDERIE NICOLAS SAS 83,44% CONDUCTIX-WAMPFLER Ltd Ireland CONDUCTIX-WAMPFLER SAS CONDUCTIX-WAMPFLER B.V. Netherlands CONDUCTIX-WAMPFLER AG Switzerland CONDUCTIX-WAMPFLER Ltda Brazil CONDUCTIX-WAMPFLER Shanghaï Ltd China CONDUCTIX-WAMPFLER Sdn Bhd Malaysia CONDUCTIX-WAMPFLER O.O.O. Russia CONDUCTIX-WAMPFLER Pty Ltd Australia CONDUCTIX-WAMPFLER Corp. Canada CONDUCTIX-WAMPFLER S. de RL de CV Mexico CONDUCTIX-WAMPFLER Ltd 16.56% 65% 85% 99,99% 99,70% 80% 51% 51% RAILTECH ALGERIE SARL Algeria RAILTECH MAROC SARL Morocco RAILTECH CHINA Ltd China RAILTECH ZHUQIAO Ltd China SUFRETA-TRANOSA SA Spain RAILTECH AUSTRALIA Ltd Australia Les Industries RAILWEL Inc. Canada RAILTECH CALOMEX Srl Mexico RAILTECH BOUTET Inc. RAILTECH CONTRACTING Corp. MATWELD Inc. RAILTECH UK Ltd RAILWELD SAS RAILTECH SCHLATTER SYSTEMS SAS RAILTECH ALU SINGEN SAS C.S.A. Srl Italia RAILTECH SLAJVANA Sro Czech Republic 99,99% RAILTECH VOLGA O.O.O. Russia RAILTECH STEDEF Ltd Thailand 60% RAILTECH PORSOL Lda Portugal H.R.T. SAS RAILWAY CONDUCTIX METALS SPECIAL PRODUCTS 99,55% RAILTECH INTERNATIONAL SA H.R.T. UK Ltd PANDROL HOLDING LTD UK 90% 60,60% PANDROL AUSTRALIA Pty Australia IAT Fixacoes Elasticas Ltd Brazil PANDROL CANADA Ltd Canada PANDROL INDONESIA PT Indonesia PANDROL ITALIA Spa Italia PANDROL KOREA Ltd Korea PANDROL U.K. Ltd PANDROL LP VORTOK Ltd 36% PANDROL SOUTH AFRICA Ltd South Africa PANDROL Ltd 70% PANDROL 1520 Llc Russia ROSENQVIST RAIL AB Sweden
GROUP PERFORMANCE The strong results posted in 2008 and the improvement in our operating margin reflect the Group s strength and the aptness of its strategy of organic growth and acquisitions in high added-value markets. Our global leadership positioning in all our businesses: Railways Conductic Metals 56% of the Group 31% of the Group 10% of the Group 2008 Reflects our innovative power in high value-added products and the strength of the DELACHAUX teams. The fact that our business portfolio is well diversified across various industries and markets also enables us to lessen the impact of market cycles. 2008 sales were up 19.6% to 775.6 million. At constant exchange rates, sales amounted to 810 million, representing an increase of 24.9%. The Group posted sustained growth in these main businesses in 2008: in Railways: in Conductic: and in Metals: +23.4% to 433.2 million +10.1% to 240.8 million +38.3% to 81.2 million 2008 Current operating profit amounted to 101.3 million, representing 13.1% of sales and up 24.9% on 2007. The Group also continued to improve operating profitability despite strong volatility in commodity prices and exchange rates. The Group s net profit amounted to 66.2 million, up 27.4% on 2007. The Group s net debt at the end of 2008 was 97.2 million on shareholders equity of 377.2 million, representing gearing of 25.8%. The net debt / EBITDA ratio was 0.87. The Group s combined operating and financial performance is the result of a clear strategy and strict control across all our businesses. Two of our businesses, Conductic and Chrome, are currently experiencing a dramatic change in market conditions as a result of the sharp deterioration in the global economy. Anticipating a fall in sales in 2009, we immediately responded by reviewing production levels and overheads. Over the past few years, DELACHAUX has been completely transformed and now enjoys significant advantages. The long-term fundamentals of our markets remain unaffected. Our Group is determined to continue investing for the future, to stay close to its customers, to improve its competitiveness, and to provide innovative solutions, while making any acquisitions that present themselves. While visibility continued to be difficult at the start of the year, the Group firmly believes that its long-term fundamentals are unaffected and that it will come through the crisis stronger. 3
MAIN CONSOLIDATED DATA Euro s 000 omitted consolidated data except Compared to actual2007** Compared to actual 2006 Earning per share, employees and percentages 31/12/08 31/12/07 Variation 31/12/06 Variation Net sales 775 623 648 629 19.6% 504 215 28.6% - Domestic sales 96 003 82 993 15.6% 73 560 12.8% - Export sales 679 620 565 636 20.2% 430 655 31.3% % of export sales 87.6% 87.2% 85.0% 2.6% Current operating profit (COP) 101 307 81 109 24.9% 60 165 34.8% % of net sales 13.1% 12.5% 11.9% 5.0% EBITDA (1) 111 185 88 612 25.5% 67 216 31,8% Income before tax of continuing activities 66 836 53 655 24.6% 42 192 27.2% Income before tax of discontinued activities -638-1 715-62.8% -4 356-60.6% Net profit 66 198 51 940 27.5% 37 836 37.3% Group interest 65 532 51 586 27.0% 36 955 39.6% Minority interest 666 354 88.1% 881-59.8% Consolitade stockholders equity 377 196 351 450 7.3% 231 318 51.9% Group share 373 925 348 494 7.3% 228 374 52.6% Minority interest 3 271 2 956 10.7% 2 944 0.4% Earnings per share 5.05 4.08 24.2% 3.43 19.0% Cash flow generated 77 209 58 222 32.6% 39 464 47.5% Cash flow generated by continuing activities 77 807 59 138 31.6% 42 875 37.9% Depreciation 8 662 8 516 1.7% 7 582 12.3% Financial investments 17 535 110 270 Industrial investments 11 353 8 908 27.5% 7 951 12.0% Dividend proposed by the parent Company(2) 11 028 9 731 13.3% 7 754 25.5% Average number employees 2 794 2 650 5.4% 2 048 29.4% Parent company 224 247-9.3% 253-2.4% Subsidiaries 2 570 2 403 7.0% 1 795 33.9% ** sales, net profit, Ebitda and investments 2007 restated with the reclassification of Injection business in discontinued activity following to its disposal in september 30, 2008 (1) EBITDA = Operating profit before tax and exceptional items treated with allowance for depreciation and charges to depreciation except current assets (2) Dividend: subject to approval from the shareholder s general meeting of June 5, 2009 Ne t s a l e s 775 623 800000 700000 648 629 600000 504 215 500000 400000 300000 200000 100000 (Euros 000) 0 2006 2007 2008 80000 70000 60000 50000 40000 30000 20000 10000 0 (Euros 000) Ne t p r o f i t 66 198 51 940 37 836 2006 2007 2008 80000 70000 60000 50000 40000 30000 20000 10000 0 (Euros 000) Ca s h f l o w g en e rated of continuing activities 77 807 42 875 59 138 2006 2007 2008
OPERATING STATEMENT at December 31, 2008 Consolidated income statement (euros 000 omitted) 2008 2007 (*) Sales 775 623 648 629 Other income of the activity 1 545 2 263 Consumed purchases (427 193) (347 177) Variation of raw material, work in progress, finished goods 12 203 8 809 Staff cost (125 028) (121 316) Other external services (119 524) (96 855) Taxes and other taxes (6 665) (5 412) Depreciation & amortization (8 662) (8 516) Charges to provisions (5 664) (4 345) Recovery of depreciation and provisions 4 672 5 029 Current operating profit 101 307 81 109 Other operational income 228 (41) Other operational expenses (263) (99) Operating profit before financial expense 101 272 80 969 Finance income on positive treasury 2 598 2 723 Cost of financial indebtedness (9 628) (11 015) Cost the net financial indebtedness (7 030) (8 292) Other financial income 1 852 6 090 Other financial expenses (3 129) (3 025) Other financial income and expenses (1 277) 3 065 Income tax 1 963 2 353 Profit from associates accounted for using the equity method (28 092) (24 440) Net profit from continuing activities 66 836 53 655 Net profit from discontinued activities (638) (1 715) NET PROFIT 66 198 51 940 Attributable to equity holders of the parent 65 532 51 586 Attributable to minority interests 666 354 Earnings per share of continuing activities (euros) 5.15 4.24 Diluted earnings per share (euros) 5.12 4.22 Earnings per share (euros) 5.05 4.08 Diluted earnings per share (euros) 5.02 4.05 (*)Figures restated in 2007 for disposal of the Injection business. STATEMENT OF CHANGES IN CONSOLIDATED EQUITY (Euros 000 omitted) Capital Share Consolidated Result directly Consolidated Minority Total capital Reserves and Affected in equity interests premium results equity Group share Equity at 12/31/2006 6 892 4 949 213 215 3 318 228 374 2 944 231 318 Dividends paid (7 753) (7 753) (570) (8 323) Increase in capital 1 412 93 598 (33) 94 977 297 95 274 Charges/expenses funded from shares 1 179 1 179 1 179 Total transactions with shareholders 1 412 93 598 (7 786) 1 179 88 403 (273) 88 130 Gains and losses recognized directly in equity (19 869) (19 869) (69) (19 938) Consolidated profit 2007 51 586 51 586 354 51 940 Total of income and expenses 51 586 (19 869) 31 717 285 32 002 Equity at 12/31/2007 8 304 98 547 257 015 (15 372) 348 494 2 956 351 450 Dividends paid (9 731) (9 731) (274) (10 005) Increase/decrease in capital (60) (60) Charges/expenses funded from shares 2 149 2 149 2 149 Total transactions with shareholders (9 731) 2 149 (7 582) (334) (7 916) Gains and losses recognized directly in equity (32 519) (32 519) (17) (32 536) Consolidated profit 2008 65 532 65 532 666 66 198 Total of income and expenses 65 532 (32 519) 33 013 649 33 662 Equity at 12/31/ 2008 8 304 98 547 312 816 (45 743) 373 925 3 271 377 196 5
CONSOLIDATED BALANCE SHEET at December 31, 2008 Consolidated assets (Euros 000 omitted) 2008 2007 Goodwill 297 904 318 654 Intangible assets 3 083 2 453 Property, plant & equipment 53 910 55 223 Investment in associate 1 175 1 458 Financial assets available for sale 4 021 5 896 Other financial assets 416 691 Deferred tax assets 6 557 6 715 Total non current assets 367 066 391 090 Inventories and work-in-progress 125 813 101 812 Accounts receivable 167 723 136 639 Recoverable tax assets 172 705 Other receivables 13 297 15 100 Cash and marketable securities 84 914 94 763 Trade investments available for sale 2 038 979 Total current assets 393 957 349 998 TOTAL CONSOLIDATED ASSETS 761 023 741 088 Consolidated equity and liabilities (Euros 000 omitted) 2008 2007 Capital 8 304 8 304 Statutory reserves 98 548 98 548 Reserves and retained earnings 251 947 209 125 Net profit for the year 65 532 51 586 Translation adjustment (50 406) (19 069) Stockholder s equity Group Share 373 925 348 494 Minority interests 3 271 2 956 Consolidated stockholders equity 377 196 351 450 Provisions 21 749 20 576 Deferred tax liabilities 5 784 4 275 Borrowing and financial debts > 1 year 134 847 157 448 Other non current liabilities 3 323 3 677 Not current liabilities 165 703 185 976 Accounts payable 113 742 96 812 Tax Payable 3 992 5 740 Other debts 50 017 57 594 Borrowing and financial debts < 1 year 47 277 39 356 Derivative financial instruments 1 017 Provisions 2 079 4 160 Current liabilities 218 124 203 662 TOTAL CONSOLIDATED EQUITY & LIABILITIES 761 023 741 088
CASH FLOW STATEMENT at December 31, 2008 Cash Flow statement (Euros 000 omitted) 2008 2007 Consolidated net income of continuing activities 66 836 53 655 Consolidated net income of discontinued activities (638) (1 715) Income from associate (1 963) (2 352) Net dividend from associate 2 023 2 054 Depreciation 8 560 8 466 Provisions 1 116 (953) Elimination of capital gains/losses 444 484 Disposal of assets (220) (3 395) Other charges (income) without effect on cash flow 1 011 1 179 Cash Flow related to discontinued activities 40 799 Cash flow for operating activities (before elimination of cost net indebtedness and income taxes) 77 209 58 222 (whose continuing activities) 77 807 59 138 Cost of net financial indebtedness 6 945 8 210 Tax charge (payable and deferred) 28 212 25 119 Flow related to discontinued activities (211) (761) Cash flow for operating activities (after elimination of cost net indebtedness and income taxes) 112 155 90 790 Interest paid (6 773) (7 873) Income tax paid (27 905) (25 328) Effect of change in working capital requirements (34 537) (12 837 Cash Flow related to discontinued activities 1 072 1 915 Net cash inflow/outflow from operations 44 012 46 667 (amount generated from continuing activities)) 43 749 46 429 Acquisition of consolidated companies, cash obtained deducted (17 535) (110 270) Capital expenditure (11 353) (8 908) Disposal of assets 220 3 395 Other flows from investment operations 338 (6 338) Flows related to discontinued activities (261) (656) Net cash inflow from investments (28 591) (122 777) Dividends allocated to shareholders (parent) (9 731) (7 753) Dividends paid to minority of consolidated company (272) (570) Increase in capital 95 259 Income from bond issued 6 915 117 163 Repayment of loans (21 560) (119 259) Other flow from funding operations 470 Flow related to discontinued activities (727) 6 543 Net cash flow from financing activities (24 905) 91 383 Effect of foreign exchange rate change (829) (1 166) Changes in cash position (10 313) 14 107 Opening cash and marketable securities position 94 762 75 054 Opening overdraft position (22 402) (16 801) Opening cash and cash equivalents 72 360 58 253 Closing cash and marketable securities position 84 914 94 762 Closing overdraft position (22 867) (22 402) Closing cash and cash equivalents 62 047 72 360 CHANGE IN CASH POSITION (10 313) 14 107 STATEMENT OF RECOGNIZED INCOME AND EXPENSES OF THE YEAR ENDED (Euros 000 omitted) 2008 2007 Exchange differences on translation of foreign operations (31 345) (18 447) Cash flow hedge gains (losses) taken to equity 17 596 Remeasurement of available-for-sale financial assets (1 236) (2 230) Remeasurement of assets 28 143 Income and expenses recognized directly through equity (32 536) (19 938) Net profit for the period 66 198 51 940 Total recognized income and expenses for the period 33 662 32 002 -Equity holders of the company 33 013 31 717 -Minority interests 649 285 7
BOARD OF DIRECTORS Chairman of the Board: Mr François DELACHAUX Directors: Mr Patrick BOMMART Mrs Marie DELACHAUX Mr Stéphane DELACHAUX Mr Michel SARAZIN Mr Emmanuel THILLAYE DU BOULLAY GENERAL MANAGEMENT Managing Director: Mr Jean-Pierre COLLIAUT FINANCIAL COMMUNICATION Chairman of the Board Mr François DELACHAUX Managing Director Mr Jean-Pierre COLLIAUT AUDITORS KPMG MAZARS DISTRIBUTION OF CAPITAL AND VOTING RIGHTS at December 31, 2008 capital VOTING RIGHTS SOGREPAR 57,69 % 71,53 % ( DELACHAUX Holding family) Others nominative shares 0,68 % 0,60 % Public 41,63 % 27,87 % 119, avenue Louis Roche - B.P. 152 92231 GENNEVILLIERS CEDEX - FRANCE Tél. + 33 (0)1 46 88 15 00 - Fax + 33 (0)1 46 88 15 01 delachomgt@delachaux.fr ComFinance & Partners - Michigan Design - + 33 (0)1 53 43 94 56 - photo : Ayvengo- fotolia