PRESS RELEASE
Good business performance negatively impacted by a strong euro Aliaxis S.A. 2014 Half Year Results
Brussels, September 12, 2014 Aliaxis, a leading global manufacturer and distributor of plastic fluid handling systems, released its 2014 half year results today. Yves Mertens, Chief Executive Officer, commented: “We are pleased with the results for the period despite tough market conditions and the strong euro. In addition, in August we completed the acquisition of Vinidex in Australia. This marks a major milestone in our global development and geographical diversification.” The unaudited interim financial information for the first half of 2014 was presented to the Board of th Directors on September 9 , 2014.
Highlights
Revenue of € 1.25 billion in the first half of 2014: sales growth of 4.8% on a like-for-like basis, offset by strong negative currency effect of € - 72 million (-6.0%)
Current EBITDA of € 156 million (12.5% margin on sales) 4 Current EBIT of € 113 million (9.0% margin on sales)
Operating income (EBIT) of € 107 million, up +0.8% on a like-for-like basis, but severely impacted by a negative currency effect of € - 8 million (-7.2%)
Group’s net profit of € 61 million, compared to € 69 million
Acquisition of Vinidex in Australia, closed on August 1 , marks an important milestone in the development of Aliaxis in Australasia and a strengthening of the Group’s geographical diversification
1
2
3
1
st
Trading review Aliaxis performed well across its global footprint in the first half of 2014. At the beginning of the year, the Group reorganized into six divisions (EMEA, North America, Latin America, Asia, Australasia and Aliaxis Utilities & Industries), supported by six central functions. In Europe, Aliaxis improved its results in the first half of the year despite a difficult economic environment, supported by favourable weather conditions in the first quarter. In Germany, the Group is embarking on a major upgrade to its logistics platform in Friatec Technical Plastics.
1
All comparisons are made relative to the First Half of 2013, except where stated differently Like-for-like being at constant exchange rate and excluding the impact of changes in scope of consolidation Current EBITDA being EBITDA before non-recurring items 4 Current EBIT being profit from operations (EBIT) before non-recurring items 2 3
Results from North America manufacturing were impacted by the bad weather in the first quarter; however, some catch up was evident in the second quarter. The substantial investments underway in Western Canada to increase production capacity for new products and extend the product range are progressing to plan. The industrial distribution business in the US performed well. The recent acquisition of E&S Technologies – a premier distributor of high purity gas, fluid handling and clean room products – extends Aliaxis’ geographic and product reach in the US. Aliaxis significantly improved its overall performance in Latin America. Some markets were impacted by a slowdown in demand from the mining industry. The Group has purchased a new manufacturing facility in Uruguay and will transfer from its existing rented site in early 2015. In Asia, the Group performed very well. In India, the foundation stone was laid in June for the new Ashirvad Technology and Experience Center in Bangalore during a visit by the Aliaxis S.A. Board of Directors. Capital expenditure remained at a high level in order to meet strong market growth and underpin new product introductions. Australasia was again a consistent performer. The recent acquisition of Vinidex was closed on August st 1 . As a result, Aliaxis’ revenues are expected to increase by approximately € 340 million on an annual basis. Australasia will now represent around one fifth of the Group’s global sales.
Financial review Revenue from sales in the first half of 2014 reached € 1,252 million, up 4.8% on a like-for-like basis. This, however, was offset by strong negative currency effect of € - 72 million (- 6.0%), caused by the further strengthening of the euro against currencies of many countries in which the Group operates. Sales were therefore down 1.2% on a reported basis. There were no material changes in the scope of consolidation. The Group’s operating income (EBIT) amounted to € 107 million, an increase of + 0.8% on a like-forlike basis, but EBIT was severely impacted by a negative currency effect of € - 8 million (- 7.2%). So EBIT was down - 6.4%. EBIT margin on sales was 8.5%. EBIT included € 7 million non-recurring items, mainly related to industrial reorganization projects. Current EBITDA amounted to € 156 million (12.5% margin on sales) and current EBIT was € 113 million (9.0% margin on sales). The Group’s net profit totaled € 61 million.
Outlook The challenges across the different regions will remain, as individual markets and sectors are developing at their own pace. In Europe, the economic environment will remain weak. In North America, markets in the US are expected to perform well while in Canada housing starts will slow. In Latin America markets will remain very competitive, while Asia, and in particular India are expected to deliver growth as a result of improving economic confidence and new products. In Australasia Vinidex will be included in the Group’s results from August 1. Overall Aliaxis expects that the full year will match the level of 2013 on a like-for-like basis.
Aliaxis S.A. - Half Year results 2014 - 2/4
Condensed Interim Consolidated Statement of Comprehensive Income (in â‚Ź million) Sales Current EBITDA
3
as % on sales
1HY2014
1,267
Change
1,252
-1.2%
5
156
-4.7%
12.9%
12.5%
164
1
Change
1
(like for like)
FY2013
2
+4.8%
2,507 304 12.1%
118
5
113
9.3%
9.0%
114
107
9.0%
8.5%
Profit before income taxes
96
91
-5.3%
164
Net Result
69
61
-11.5%
112
3
0
4
66
61
108
Current EBIT
4
1HY2013
as % on sales
Operating income (EBIT) as % on sales
-4.2%
215 8.6%
-6.4%
+0.8%
194 7.7%
attributable to: - non controlling interests - Group equity holders 1
Comparisons are made relative to the First Half of 2013
2
Like-for-like being at constant exchange rate and excluding the impact of changes in scope of consolidation
3
Current EBITDA being EBITDA before non-recurring items
4
Current EBIT being profit from operations (EBIT) before non-recurring items
5
Includes reclassification of non-recurring items in line with Annual Report 2013
Earnings per share (in â‚Ź) Basic earnings per share
1HY2013
1HY2014
FY2013
0.82
0.76
1.35
Aliaxis S.A. - Half Year results 2014 - 3/4
Summary of consolidated financial position (in € million)
30 June 2013
31 Dec 2013
30 June 2014
Intangible assets
781
738
748
Property, Plant and Equipment
650
675
689
Non-current Investments
15
15
13
Deferred Tax Assets
19
22
22
Employee Benefits
10
33
36
Derivatives
26
13
18
Other non-current assets
26
22
22
Total non-current assets
1,527
1,518
1,548
612
444
593
TOTAL
2,139
1,962
2,141
Equity (attributable to the Group)
1,288
1,265
1,328
57
52
54
1,345
1,317
1,382
Deferred Tax Liabilities
77
78
79
Employee Benefits
75
72
76
Derivatives
18
12
17
Other non- current liabilities
117
109
116
Net Financial Debt
507
374
471
2,139
1,962
2,141
Non-cash working capital
Non-controlling interests Total Equity
TOTAL
About Aliaxis Aliaxis is a leading global manufacturer and distributor of primarily plastic fluid handling systems, generating 5 € 2.85 billion in annual sales . Present in over 40 countries with more than 100 manufacturing and commercial entities, the Group totals 16,300 employees around the globe, serving customers in residential and commercial construction, as well as in industrial and public infrastructure applications. Aliaxis’ well-known brands such as Ashirvad, Durman, Friatec, IPEX, Marley, Nicoll and Vinidex have a strong identity and are firmly established in the geographic markets they serve. Thanks to the entrepreneurial spirit of its people, balanced with the strengths, knowhow and international reach of the Group, Aliaxis continues to develop and improve its positions in key construction applications throughout the world. More on www.aliaxis.com
Contact Françoise VANTHEMSCHE Group Communications Director +32 2 775 50 50 – communications@aliaxis.com Aliaxis S.A. – Avenue de Tervueren 270 – 1150 Bruxelles
5
Annualized sales after Vinidex acquisition (pro forma)
Aliaxis S.A. - Half Year results 2014 - 4/4