A GLOBAL APPROACH TO SUSTAINABILITY 2016 Q1 REPORT CARMEUSE HOLDING S.A. AND SUBSIDIARIES NATURAL SOLUTIONS Twilight on Carmeuse Chicago Michelle Keim
Interim report For the 3 months period ended March 31, 2016 Page index Consolidated Financial Statements, comprising: 3-7 - Consolidated balance sheet 3-4 - Consolidated income statement 5 - Consolidated income statement pro forma 6 - Consolidated statement of cash flows 7 Contact person: Vincent De Busscher, Group Corporate Finance: vincent.debusscher@carmeuse.com 2
CONSOLIDATED BALANCE SHEETS AT MARCH 31, 2016 AND DECEMBER, 31 2015 (before proposed profit appropriation) ASSETS March 31, 2016 December 31, 2015 (non audited) (audited) Goodwill 100.964 106.765 Other intangibles 15.516 17.741 Intangible assets 116.480 124.506 Land and buildings 459.004 471.716 Machinery and equipment 513.230 534.859 Furniture and vehicles 27.563 29.697 Leasing and other similar rights 5.570 5.658 Other tangible assets 3.655 3.793 Assets under construction and advance payments 180.286 171.074 Tangible assets 1.189.308 1.216.797 Participating interests 9.765 9.770 Amounts receivable 752 938 Investments under the equity method 10.517 10.708 Participating interests 46.085 46.127 Amounts receivable 3.742 2.805 Other investments 49.827 48.932 Financial assets 60.344 59.640 FIXED ASSETS 1.366.132 1.400.943 Raw materials and consumables 55.742 65.042 Work in progress 1.856 2.128 Finished goods 64.394 64.260 Goods purchased for resale 544 790 Stocks and contracts in progress 122.536 132.220 Trade receivables 110.509 115.749 Deferred income tax assets 41.554 41.394 Other amounts receivable 19.954 26.518 Amounts receivable 172.017 183.661 Investments 1.787 1.796 Cash and cash equivalent 20.833 57.223 CURRENT ASSETS 317.173 374.900 Deferred charges and accrued income 22.700 18.620 TOTAL ASSETS 1.706.005 1.794.463 The accompanying notes form an integral part of these annual accounts. 3
CONSOLIDATED BALANCE SHEETS AT MARCH 31, 2016 AND DECEMBER, 31 2015 (before proposed profit appropriation) EQUITY AND LIABILITIES March 31, 2016 December 31, 2015 (non audited) (audited) Share capital (paid and called) 157.258 157.258 Share premium reserve 102.125 102.125 Legal reserves 15.726 15.726 Reserve for own shares or own corporate units 30.979 30.979 Cumulative translation adjustment -20.731-5.050 Retained earnings 284.726 251.538 Other reserves -38.522-39.279 Net income for the year -7.253 33.188 SHAREHOLDER'S EQUITY 524.308 546.485 MINORITY INTERESTS 6.477 7.407 Pensions and similar obligations 81.425 86.938 Other liabilities and charges 75.960 76.886 Provisions for liabilities and charges 157.385 163.824 Deferred income tax liabilities 69.945 74.143 PROVISIONS AND DEFERRED INCOME TAX 227.330 237.967 Subordinated loans 0 0 Unsubordinated debentures 50.000 50.000 Leasing and other similar obligations 1.630 1.712 Credit institutions 606.817 641.722 Other loans 746 1.117 Financial debts 659.193 694.551 Other amounts payable 78.545 70.847 NON-CURRENT LIABILITIES 737.738 765.398 Due within one year 572 645 Credit institutions 10.497 10.848 Other loans 1.363 1.038 Financial debts 11.860 11.886 Suppliers 126.240 155.440 Bills of exchange payable 142 144 Trade debts 126.382 155.584 Advances received on contracts in progress 956 1.762 Taxes 5.632 5.546 Remuneration and social security 35.334 32.113 Taxes, remuneration and social security 40.966 37.659 Other amounts payable 6.909 7.223 CURRENT LIABILITIES 187.645 214.759 Accrued charges and deferred income 22.507 22.447 TOTAL EQUITY AND LIABILITIES 1.706.005 1.794.463 The accompanying notes form an integral part of these annual accounts. 4
CONSOLIDATED INCOME STATEMENTS FOR THE YEAR ENDING MARCH 31, 2016 AND MARCH 31, 2015 Amounts in thousands of euros As of March 31, 2016 2015 (non audited) (non audited) Net turnover 238.627 262.865 Variation in stocks 5.241 Other operating income 32.610 38.110 Income from participating interests 0 1.667 Interest income and similar income 2.991 8.086 Exceptional income 17.084 Loss for the year attributable to minority interests 787 1 Current income tax credit on result on ordinary activities 2.131 2.698 Loss for the year attributable to the group 0 0 Total Income 282.387 330.511 Raw materials and consumables 106.106 119.245 Variation in stocks 0-3.925 Other external charges 65.863 70.081 Staff costs 58.701 60.123 Value adjustments in respect of formation expenses, 32.427 30.991 intangible assets and tangible assets Value adjustments in respect of current assets 720 352 Other operating charges 5.752 7.105 Loss from participating interests 4 0 Interest charges and similar charges 18.021 22.974 Exceptional charges 0 Current income tax charge on result on ordinary activitie 4.193 Deferred income tax charge 2.046 0 Profit for the year attributable to minority interests 0 66 Profit for the year attributable to the group -7.253 19.306 Total Charges 282.387 330.511 The accompanying notes form an integral part of these annual accounts. 5
CONSOLIDATED INCOME STATEMENTS - PRO FORMA FOR THE YEAR ENDING MARCH 31, 2016 AND MARCH 31, 2015 As of March 31, 2016 2015 (non audited) (non audited) NET TURNOVER 238.627 262.865 Movements in stocks of finished goods and work in process 5.241 3.925 Other operating income 32.610 38.110 37.851 42.036 TOTAL OPERATING INCOME 276.478 304.901 Costs of raw materials and consumables 106.106 119.245 Subcontracted work and other external charges 65.863 70.081 Wages and salaries and social security charges 58.701 60.123 Other operating expenses 7.395 7.189 EBITDA 38.414 48.263 Amortization of goodwill (incl. Impairment loss) 1.468 1.804 Amortization of other intangibles (incl. Impairment loss) 2.209 1.066 Depreciation and other amounts written off on tangible fixed assets (incl. Impairment loss) 28.750 28.121 Increase(+), decrease(-) in amounts written off on stocks and trade debtors 720 352 Increase in provisions for liabilities and charges -1.642-84 OPERATING PROFIT 6.909 17.004 Income from financial fixed assets 37 15 Income from current assets 583 1.852 Other financial income 2.371 6.220 Financial income 2.991 8.086 Interests and other debt charges 7.842 13.044 Other financial charges 10.179 9.930 Financial charges 18.021 22.974 RESULT ON ORDINARY ACTIVITIES BEFORE TAX -8.122 2.116 Extraordinary Result 0 17.084 Income taxes 85-1.496 Profit from investments under the equity method -4 1.667 RESULT AFTER TAX -8.040 19.373 Share of minority interests in the consolidated result 787-66 NET CONSOLIDATED RESULT OF THE GROUP -7.253 19.306 6
CONSOLIDATED CASH FLOW STATEMENTS FOR THE YEAR ENDING MARCH 31, 2016 AND MARCH 31, 2015 Amounts in thousands of euros As of March 31, 2016 2015 (non audited) (non audited) CASH FLOWS FROM OPERATING ACTIVITIES Operating profit 6.909 17.004 Depreciation of intangible and tangible assets (incl. impairment loss/(gain) 32.427 30.991 Increase (-) / decrease (+) in inventories 5.995 3.855 Increase (-) / decrease (+) in other operating assets -122-289 Increase (+) / decrease (-) in operating liabilities -23.954-18.504 Change in working capital -18.081-14.938 Capital gains/losses on assets disposals 125-15 Other cash operating movements and elimination of non cash items -2.472-6.324 Cash from operating results 18.908 26.718 Interest and financial income received 679 411 Interest and financial expenses paid -8.528-8.618 Income taxes paid 2.521-3.438 Cash from operating activities 13.580 15.073 CASH FLOWS FROM INVESTING ACTIVITIES Net additions in tangible and intangible assets (other -32.503-37.171 than goodwill) (1) Investments in /(disposals of) group companies 0 25.413 Increase (-) / decrease (+) in non current assets and liabilities -378-1.263 Net cash used in investing activities -32.881-13.021 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from long-term debts 815 45.685 Reimbursements of long-term debts -18.371-40.689 Proceed from short-term debts 0 0 Reimbursements of short-term debts 25-7.778 Net increase/decrease on finance lease liabilities -154-81 Acquisition of own shares -32 0 Dividend paid 0 0 Net cash (used in)/from financing activities -17.717-2.863 NET CASH FLOW -37.018-811 Translation differences on cash and change in consolidation method's impact 619 5.568 NET INCREASE(+)/DECREASE (-) IN CASH AND CASH EQUIVALENT AND INVESTMENTS -36.399 4.757 (1) Net additions in tangible and intangible assets (other than goodwill) less cash received from assets sold 7