Press Release 28 September 2007 Financial results for the first half of 2007 •
Revenue € 1,216 million, an overall increase of 15.8%, and a like-for-like increase of 7%
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Operating income of € 151 million, an overall increase of 8.6%, and a like-for-like increase of 5.2%
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Favourable trading conditions in most of Europe especially in industrial & utilities sectors
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After several years of strong performance, weaker trading in North America due to downturn in housing market and in new residential construction
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On-going integration of new Latin American businesses, and good level of activity despite slow post-election recovery in Mexico
The unaudited condensed consolidated accounts for the first half of the year 2007 were presented to the Board of Directors at its meeting held on 21 September.
COMMENTS On 14 February 2007, Aliaxis completed a transaction to acquire a 51% interest in a new company named Aliaxis Latinoamérica Coőperatief U.A. (“Aliaxis Latinoamérica”), which combined the Group’s existing businesses in Latin America with the newly-acquired Durman Esquivel S.A. (“Durman”). The new entity has a major market position in most countries in the Latin American region, which will provide a platform for future growth. The former controlling shareholders of Durman have a 49% interest in Aliaxis Latinoamérica, which is subject to the possible exercise of general put and call options beginning in 2011. The results of Aliaxis Latinoamérica have been consolidated into the Group’s results from 1 January 2007, and represent the only significant change in scope of the consolidation during the first half of the year. At 30 June 2007, the restatement of the assets and liabilities of Durman at their fair value required by IFRS had not been fully completed, and there may be a further impact on the Income Statement for the full year 2007 and the Balance Sheet as at 31 December 2007. Profit and loss account Aliaxis’ results for the first half of 2007 are reported under IFRS. The comparative results for 2006 were reported under Belgian GAAP and have not been restated except for revenue, which has been adjusted to reclassify certain deductions from sales into cost of sales. Revenue in the first half of 2007 was € 1,216 million (2006: € 1,050 million), an overall increase of 15.8%. Changes in the scope of the consolidation accounted for 11.6% of this increase. Adverse exchange rate movements reduced revenue by 2.8%, mainly as a result of a weakening of both the Canadian and US dollars during the period. The organic increase in revenue was thus 7.0%. Operating income was € 151 million (2006: € 139 million), an overall increase of 8.6%. At constant exchange rates, and excluding the impact of the change in scope of the consolidation, the increase in operating income was 5.2%.