For release: November 6, 2013 08.00 hrs HUNTER DOUGLAS NINE MONTHS 2013 RESULTS Rotterdam, November 6, 2013 Hunter Douglas, the world market leader in window coverings (Luxaflex ) and a major manufacturer of architectural products, results for the first nine months 2013:. Sales: USD 1,955.5 million, 1.7% higher compared with USD 1,923.0 million in the first nine months of 2012.. Earnings before interest, tax, depreciation and amortization - EBITDA (before non-recurring restructuring expenses) were USD 184.4 million, 6.0% higher than USD 174.0 million in the first nine months of 2012.. Income from Operations (before non-recurring restructuring expenses): USD 115.6 million, 5.9% higher than USD 109.2 million in the first nine months of 2012. Results were better in all areas.. Non-recurring restructuring expenses: nil compared with USD 7.3 million in the first nine months of 2012, mainly in the European operations.. Net Result Investment Portfolio: USD 0.9 million compared with USD 10.6 million in the first nine months of 2012. The portfolio has been wound down.. Income before Tax: USD 100.1 million compared with USD 102.6 million in the first nine months of 2012.. Total Net Profit: USD 85.5 million (per share EUR 1.87) compared with USD 88.7 million in the first nine months of 2012 (per share EUR 1.94). Sales: The 1.7% sales increase reflects a 1.3% volume increase, a 0.8% increase from acquisitions and a 0.4% negative currency impact. Volume increased in all areas except in Europe where sales were lower. North America accounted for 42% of sales, Europe 38%, Latin America 10%, Asia 7% and Australia 3%. Window Coverings were 82% and Architectural and Other Products were 18% of sales. Operating cash flow: USD 108.0 million compared with USD 82.1 million in the first nine months of 2012. Capital expenditures were USD 45 million compared with USD 54 million in the first nine months of 2012, while depreciation was USD 63 million compared with USD 60 million. For the full year capital expenditures are expected to be approximately USD 70 million and depreciation USD 85 million. Shareholder s equity was USD 1,112 million compared with USD 1,093 million at the end of 2012, reflecting the first nine months results, offset by negative exchange translation and the payment of the dividend of EUR 1.25, totalling USD 58 million.
2 Q3 2013 Q3 Sales were USD 672.6 million, 1.9% higher than USD 660.1 million in the same period of 2012. The increase reflects a 1.6% volume increase, a 0.6% increase from acquisitions and a 0.3% negative currency impact. Third quarter local currency sales were higher in North and Latin America and Australia, and lower in Europe and Asia. Q3 Earnings before interest, tax, depreciation and amortization - EBITDA (before non-recurring restructuring expenses) was USD 64.1 million, 2.1% higher than USD 62.8 million in Q3 2012. Q3 Income from Operations (before non-recurring restructuring expenses) was USD 40.1 million compared with USD 40.2 million in Q3 2012. In local currencies European, Latin American and Australian results were better; North American results were level, while Asia had lower results. Q3 Non-recurring restructuring expenses were nil compared with USD 4.1 million in Q3 2012, which mainly related to the European operations. Q3 Income before Tax: USD 31.9 million compared with USD 35.6 million in Q3 2012. Q3 Total Net Profit: USD 25.7 million (per share EUR 0.56) compared with USD 31.0 million in Q3 2012 (per share EUR 0.69). First nine months 2013 by Region Europe European sales were USD 737 million, 4% lower than USD 765 million in the same period last year. This reflects a 5% volume decrease and a 1% positive currency impact. In EUR, sales were EUR 560 million compared with EUR 594 million in 2012. North America North American sales were USD 825 million, 6% higher than USD 779 mln in the same period last year due to a volume increase of 5% and a 1% contribution from acquisitions. Latin America Latin American sales were USD 185 million, 5% higher than USD 177 million in the same period last year. The sales increase reflects an 11% volume increase and a 6% negative currency impact. Asia Asian sales increased by 6% to USD 141 million. The higher sales were caused by a volume increase of 7% and a 1% negative currency impact. Australia Australian sales were USD 68 million compared with USD 69 million in the same period last year reflecting a 4% volume increase and a 5% negative currency impact.
3 Outlook Hunter Douglas expects gradually improving economic conditions in the US, Latin America and Asia, but an ongoing challenging economic environment in Europe. Hunter Douglas remains in a strong position in term of its products, distribution, finances and management. Profile Hunter Douglas Hunter Douglas is the world market leader in window coverings and a major manufacturer of architectural products. The Company has its Head Office in Rotterdam, the Netherlands, and a Management Office in Lucerne, Switzerland. The Group is comprised of 169 companies with 68 manufacturing and 101 assembly operations in more than 100 countries. Hunter Douglas employs about 17,000 people, and had sales in 2012 of USD 2.529 billion. The common shares of Hunter Douglas N.V. are traded on Amsterdam s Euronext and Deutsche Boerse. For further information: Leen Reijtenbagh Chief Financial Officer Tel. +31 10 486 9582 E-mail : l.reijtenbagh@hdnv.nl Website: www.hunterdouglasgroup.com A consolidated Statement of Income for the first nine months and Q3 (Annex 1+2), Balance Sheet (Annex 3), Cash Flow Statement (Annex 4) and Sales change attribution percentages by geographic region for the first nine months and Q3 (Annex 5) are attached.
4 Annex 1 CONSOLIDATED STATEMENT OF INCOME Nine months ended September 30 (amounts in USD/mln) 2013 % 2012 % Net sales 1,955.5 1,923.0 Cost of sales -1,140.6-1,113.8 Gross profit 814.9 41.7 809.2 42.1 Gross profit Metals Trading 14.7 13.9 Total gross profit 829.6 42.4 823.1 42.8 Expenses: -Selling and marketing -395.0-407.9 -General and administrative -250.2-241.2 Subtotal expenses -645.2-649.1 EBITDA 184.4 9.4 174.0 9.0 Depreciation and amortization -68.8-64.8 Income from operations before non-recurring restructuring expenses 115.6 5.9 109.2 5.7 Non-recurring restructuring expenses -7.3 Income from operations after non-recurring restructuring expenses 115.6 5.9 101.9 5.3 Interest received 0.6 2.5 Interest paid -16.7-15.2 Non-operational exchange result -0.3 2.3 Other financial income 0.5 Net result investment portfolio 0.9 10.6 Income before taxes 100.1 102.6 Taxes on income -14.8-13.1 Profit before minority interest 85.3 89.5 Minority interest 0.2-0.8 Net profit 85.5 4.4 88.7 4.6 Net profit per average common share 2.46 2.50 Net profit per average common share - fully diluted 2.46 2.50
5 Annex 2 CONSOLIDATED STATEMENT OF INCOME Q3 ended September 30 (amounts in USD/mln) 2013 % 2012 % Net sales 672.6 660.1 Cost of sales -395.3-385.5 Gross profit 277.3 41.2 274.6 41.6 Gross profit Metals Trading 3.9 4.3 Total gross profit 281.2 41.8 278.9 42.3 Expenses: -Selling and marketing -131.3-135.1 -General and administrative -85.8-81.0 Subtotal expenses -217.1-216.1 EBITDA 64.1 9.5 62.8 9.5 Depreciation and amortization -24.0-22.6 Income from operations before non-recurring restructuring expenses 40.1 6.0 40.2 6.1 Non-recurring restructuring expenses -4.1 Income from operations after non-recurring restructuring expenses 40.1 6.0 36.1 5.5 Interest received 0.1 0.5 Interest paid -7.6-6.4 Non-operational exchange result -0.5-0.5 Other financial income 0.5 Net result investment portfolio -0.2 5.4 Income before taxes 31.9 35.6 Taxes on income -6.5-4.8 Profit before minority interest 25.4 30.8 Minority interest 0.3 0.2 Net profit 25.7 3.8 31.0 4.7 Net profit per average common share 0.74 0.87 Net profit per average common share - fully diluted 0.74 0.87
6 Annex 3 CONSOLIDATED BALANCE SHEET As per September 30 (amounts in USD/mln) 2013 2012 ASSETS Fixed assets Intangible fixed assets 310.6 311.7 Tangible fixed assets 566.1 593.2 Other financial non-current assets 178.3 151.0 Total fixed assets 1,055.0 1,055.9 Current assets Inventories 661.6 671.7 Accounts receivable -Trade 405.8 404.1 -Other 163.5 222.1 Investment portfolio 2.7 125.9 Cash and other short-term deposits 30.6 52.7 Total current assets 1,264.2 1,476.5 2,319.2 2,532.4 SHAREHOLDERS' EQUITY AND LIABILITIES Shareholders' equity Capital stock 11.5 11.0 Additional paid-in capital 95.4 91.4 Retained earnings 1,005.1 998.1 Total shareholders' equity 1,112.0 1,100.5 Minority interest 29.3 29.4 Total Group equity 1,141.3 1,129.9 Non-current liabilities Interest-bearing loans and borrowings 383.5 344.9 Preferred shares 11.2 10.7 Provisions 157.1 143.1 Deferred income tax liabilities 2.5 2.2 Total non-current liabilities 554.3 500.9 Current liabilities Trade and other payables 560.7 591.7 Interest-bearing loans and borrowings 62.9 309.9 Total current liabilities 623.6 901.6 2,319.2 2,532.4
7 Annex 4 CONSOLIDATED CASH FLOW STATEMENT Nine months ended September 30 (amounts in USD/mln) 2013 2012 Net profit attributable to equity shareholders 85.5 88.7 Adjustments for: Depreciation property, plant & equipment 63.4 60.4 Amortization patents & trademarks 5.4 4.4 Decrease provisions -13.0-12.8 Non-cash items -10.4-12.7 Unrealized result investment portfolio -0.9-13.0 Operating cash flow before working capital changes 130.0 115.0 Changes in working capital: -increase trade and other receivables and prepayments -29.7-10.5 -decrease (increase) inventories 19.2-17.4 -decrease trade and other payables -11.5-5.0 Operating cash flow 108.0 82.1 Dividend paid -58.2-55.4 Net cash from operations 49.8 26.7 Cash flow from investing activities Investment subsidiaries, net of cash acquired -4.7 Investment intangible fixed assets -0.8 Investment property, plant and equipment -44.8-54.4 Divestment property, plant and equipment 5.4 3.7 Decrease investment portfolio 125.9 64.5 (Increase) decrease other financial non-current assets -1.3 1.4 Net cash from investing activities 85.2 9.7 Cash flow from financing activities Treasury shares -0.9-7.1 Decrease interest-bearing loans and borrowings -151.6-17.2 Net cash from financing activities -152.5-24.3 Net (decrease) increase in cash and cash equivalents -17.5 12.1 Change in cash and cash equivalents Balance at 1 January 49.7 42.1 Net (decrease) increase in cash and cash equivalents -17.5 12.1 Exchange difference cash and cash equivalents -1.6-1.5 Balance at 30 September 30.6 52.7
8 Annex 5 PERCENTAGE SALES CHANGE ATTRIBUTION Explanation by geographic area First nine months 2013 vs first nine months 2012 Area Volume Currency Acquisitions Total Europe -5 1 - -4 North America 5-1 6 Latin America 11-6 - 5 Asia 7-1 - 6 Australia 4-5 - -1 Total 1 0 1 2 PERCENTAGE SALES CHANGE ATTRIBUTION Explanation by geographic area Q3 2013 vs Q3 2012 Area Volume Currency Acquisitions Total Europe -3 4-1 North America 3-1 2 4 Latin America 11-9 - 2 Asia -2 - - -2 Australia 9-14 - -5 Total 1 0 1 2