Sustained strong, profitable growth in first-half 2012
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Full-year targets confirmed
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Improved free cash flow
(Paris - 11 September 2012 - 5:35 pm) - The Supervisory Board of Assystem S.A. (ISIN: FR0000074148 - ASY), a leading innovation and engineering consultancy, met on 10 September and reviewed the financial statements for the six months ended 30 June 2012.
The Statutory Auditors have conducted a limited review of the interim financial statements.
| (in € millions) | First-half 2012 | First-half 2011 |
Income statement highlights
| Revenue Operating profit on business activity[1] % of revenueOperating profit (OP) % of revenue Net profit - Group Share | 427.1 28.2 6.6% 26.9 6.3% 14.6 | 374.3 25.4 6.8% 26.6 7.1% 14.5 |
Cash flow highlight
| Operating free cash flow[2] | 1.6 | (16.6) |
Balance sheet highlight
| Net debt[3] | 12.3 | 8.4 |
Per share data (€)
| Basic earnings per share Diluted earnings per share | 0.76 0.69 | 0.75 0.70 |
"In 2012, Assystem is pursuing its strategy of strong, profitable expansion in leading industries enjoying long-term growth dynamics and where we can leverage powerful competitive advantages, particularly aerospace and energy," commented Dominique Louis, Chairman of the Management Board.
"In the latter market, we have stepped up deployment in the Oil & Gas segment, thanks to our recent entry into the Middle East. Assystem has already submitted bids to a large number of international tenders, where its expertise in safety and complex project management has made all the difference.
Based on the dynamic that we've built up in recent years, we are confident that we will meet our full-year targets of organic growth in excess of 5% and an operating profit (OP) of 7% to 7.5% of revenue."
ANALYSIS OF THE FIRST-HALF 2012 INCOME STATEMENT
Geographical breakdown of Operating Profit (OP)
| €m | First-half 2012 | % of revenue | First-half 2011 | % of revenue | |
| France | 16.9 | 6.4% | 18 | 7.2% | |
| International | 10.0 | 6.2% | 8.6 | 6.9% | |
| Total | 26.9 | 6.3% | 26.6 | 7.1% |
Consolidated revenue stood at €427.1 million in first-half 2012, up 14.1% as reported and 5.7% at constant scope of consolidation thanks to strong expansion outside France and in promising new markets.
Operating profit was stable at €26.9 million for the period, reflecting the investments committed to drive future growth and attesting to the solid performance by the nuclear and aerospace businesses.
Despite a relatively unfavourable business environment, in particular due to the troubled auto industry, operating profit in France amounted to 6.4% of revenue.
Outside France, operating profit rose during the period. Consolidated operating margin was impacted by the consolidation of MPH in the first half. Performance in the United Kingdom remains as robust as ever, as well as in the embedded systems business in Germany.
The operating margin on business activity was 6.6% in the first half, compared to 6.8% in the year-earlier period.
Net financial expense reflected low net borrowing costs (€1.8 million). The effective tax rate stood at 29%, comparable to full-year 2011.
Net profit Group Share ended the period stable, at €14.6 million.
The Group is continuing to generate operating free cash flow, which rose by €18.2 million over the first half compared to first-half 2011.
OUTLOOK
Thanks to its clear visibility on the second half, Assystem has confirmed its full-year target of more than 5% organic growth and anticipates that reported growth will exceed 10%. The Group also expects its second-half operating margin on business activity comparable to the year-earlier figure, and is aiming for a full-year operating profit (OP) of between 7% and 7.5%, in line with its normalised target.
In addition, Assystem is continuing to review possible acquisition opportunities. In today's economy, it is taking a particularly selective approach to this process, even as it retains its overall growth objectives, notably in the global marketplace.
2012 INVESTOR CALENDAR
Assystem's interim results will be presented at 8:30 am on 12 September. The presentation, as well as all of the interim financial report, may be downloaded from www.assystem.com.
12 November 2012, after close of trading: Quarterly business review, third-quarter 2012.
Assystem is an international Engineering and Innovation Consultancy. As a key participant in the industry for more than 40 years, Assystem supports its customers in developing their products and managing their capital expenditure throughout the product life cycle. Assystem employs more than 10,200 people worldwide and reported nearly €850 million in pro forma revenue in 2011. The Company is listed on NYSE Euronext Paris - Compartment B - Code ISIN: FR0000074148 - ASY. For more information: www.assystem.com
CONTACTS
| Gilbert Vidal Chief Financial Officer Phone: +33 (0)1 55 65 03 10 | Agnès Villeret/Lucie Larguier Citigate Dewe Rogerson Phone: : +33 (0)1 53 32 78 95 / 84 75 - lucie.larguier@citigate.fr |
| Pauline Bucaille Vice President, Corporate Communications and Investor Relations Phone: : +33 (0)1 55 65 03 08 - pbucaille@assystem.com |
APPENDICES
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Operating profit by business unit
| €m | First-half 2012 | First-half 2011 |
| Infrastructure Engineering & Operations* | 11.0 | 10.0 |
| Aerospace Mechanical Engineering | 9.5 | 6.6 |
| Technology & Product Engineering | 6.8 | 9.7 |
| Other businesses | (0.4) | 0.3 |
| Total | 26.9 | 26.6 |
* Previously known as Plant Engineering & Operations
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Share capital at 31 August 2012
Shares outstanding
| Ordinary shares outstanding | 20 734 278 | |
| Treasury stock | 1 744 825 | |
| BSAR 2013 redeemable share warrants outstanding1 | 4 892 734 | Prix d'exercice : 35,00 € |
| BSAR 2015 redeemable share warrants outstanding2 | 3 155 419 | Prix d'exercice : 11,10 € |
| Stock awards and performance stock awards outstanding | 233 760 | |
| Weighted average shares outstanding (at 30 June 2012) | 19 096 691 | |
| Diluted weighted average shares outstanding (at 30 June 2012) | 24 258 196 | |
1Parity: 1.0; Expire: 31 July 2013; Enforcement call starting date: 31 July 2010; Enforcement call share price: €52.50.
2Parity: 2.0; Expire: 9 July 2015; Enforcement call starting date: 9 July 2013; Enforcement call share price: €15.54.
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Ownership structure at 31 August 2012
| % | Shares | Effective voting rights3 |
| Dominique Louis/HDL/H2DA4/CEFID5/EEC | 26.8 | 31.0 |
| CDC Group6 | 16.2 | 24.5 |
| Members of the Supervisory and Management Boards | 3.6 | 5.4 |
| Employee Mutual Fund | 1.1 | 1.8 |
| Free float (including employees) | 43.9 | 37.3 |
| Treasury stock | 8.4 | 0.0 |
3 These voting rights differ from the theoretical voting rights used in the calculation of threshold crossing.
4 Held by HDL (60.5%) and certain members of the Management Board.
5 Held by HDL, Dominique Louis and Michel Combes.
6 13,7% held by FSI and 2.5% by CDC EVM.
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consolidated balance sheet
In millions of euros
| ASSET | 30 June 2012 | 31 Dec. 2011 | 30 June 2011 |
| Goodwill | 118.6 | 114.0 | 92.7 |
| Intangible assets | 5.2 | 5.4 | 5.8 |
| Property, plant and equipment | 20.2 | 16.5 | 15.0 |
| Investment properties | 1.4 | 1.4 | 1.4 |
| Investments in associates | 0.7 | 0.6 | 0.6 |
| Available-for-sale assets | 3.3 | 3.4 | 3.3 |
| Other non-current financial assets | 7.3 | 7.1 | 4.8 |
| Deferred tax assets | 3.8 | 6.1 | 1.9 |
| Total non-current assets | 160.5 | 154.5 | 125.5 |
| Available-for-sale-assets | 1.0 | ||
| Trade receivables | 272.4 | 250.3 | 242.0 |
| Other receivables | 28.4 | 26.7 | 23.6 |
| Corporate income tax receivables | 5.4 | 1.1 | 3.9 |
| Other financial assets | 0.1 | ||
| Cash and cash equivalents | 129.7 | 151.8 | 63.9 |
| Total current assets | 437.0 | 429.9 | 334.4 |
| TOTAL ASSETS | 597.5 | 584.4 | 459.9 |
| Equity and Liabilities | 30 June 2012 | 31 Dec. 2011 | 30 June 2011 |
| Share capital | 20.7 | 20.4 | 20.4 |
| Share premiums | 69.1 | 66.2 | 66.0 |
| Consolidated reserves | 74.3 | 42.5 | 47.7 |
| Profit for the period | 14.6 | 41.0 | 14,6 |
| Equity, attributable to Assystem SA | 178.7 | 170.1 | 148.7 |
| Minority interests | 4.6 | 2.9 | 2.8 |
| Consolidated equity | 183.3 | 173.0 | 151.5 |
| Bond loans | 105.3 | 103.9 | 47.7 |
| Other non-current financial and derivative liabilities | 7.0 | 6.5 | 2.1 |
| Provisions | 0.8 | 0.8 | 0.6 |
| Employee benefits | 14.5 | 14.3 | 14.9 |
| Other non-current liabilities | 7.4 | 0.4 | 8.0 |
| Deferred tax liabilities | 0.5 | 0.4 | 0.1 |
| Non-current liabilities | 135.5 | 126.3 | 73.4 |
| Bond loans | 24.4 | 24.4 | 16.3 |
| Other current financial and derivative liabilities | 5.4 | 4.7 | 6.2 |
| Provisions | 8.4 | 10.8 | 6.7 |
| Trade payables and related accounts | 43.6 | 40.5 | 35.6 |
| Corporate income tax liability | 2.4 | 2.6 | 2.6 |
| Other current liabilities | 194.5 | 202.1 | 167.6 |
| Current liabilities | 278.7 | 285.1 | 235.0 |
| TOTAL EQUITY AND LIABILITIES | 597.5 | 584.4 | 459.9 |
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Consolidated income statement
| In millions of euros | 30 June 2012 | 30 June 2011 | 30 June 2010 | |
| Revenue | 427.1 | 374.3 | 312.4 | |
| Employee benefit expense | (304.7) | (263.9) | (232.5) | |
| Taxes and duties other than income tax | (1.0) | (0.7) | (0.8) | |
| Amortization, depreciation and provision expense | (3.7) | (4.8) | (5.9) | |
| Other ordinary operating revenue and expense | (89.5) | (79.5) | (57.1) | |
| Operating profit from business activity | 28.2 | 25.4 | 16.1 | |
| Expenses related to stock grants and stock options | (0.5) | (0.3) | (0.4) | |
| Acquisition costs and gains or losses on disposals of activities | (0.8) | 1.5 | - | |
| Non-current operating expenses and incomes | - | - | - | |
| Operating profit | 26.9 | 26.6 | 15.7 | |
| | 0.1 | 0.1 | ||
| Net borrowing costs | (1.8) | (0.6) | (1.0) | |
| Other financial revenue and expense | (4.0) | (2.4) | (1.8) | |
| Profit for the period from continuing operations before tax | 21.2 | 23.7 | 12.9 | |
| Income tax expense | (6.2) | (8.7) | (4.9) | |
| Profit for the period from continuing operations | 15.0 | 15.0 | 8.0 | |
| Profit for the period from discontinued operations | (0.1) | (0.3) | ||
| Consolidated profit for the period | 14.9 | 14.7 | 8.0 | |
| Attributable : | ||||
| To Assystem SA | 14.6 | 14.5 | 7.3 | |
| To minority interests | 0.3 | 0.2 | 0.7 | |
| In € Basic earnings per share | 0.76 | 0.75 | 0.38 |
| Diluted earnings per share | 0.69 | 0.70 | 0.38 |
| Basic earnings per share from continuing operations | 0.77 | 0.75 | 0.38 |
| Diluted earnings per share from continuing operations | 0.69 | 0.70 | 0.38 |
| Basic earnings per share from discontinued operations | (0.005) | (0.015) | |
| Diluted earnings per share from discontinued operations | (0.004) | (0.015) | |
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[1] Operating margin on business activity (in on % of revenues): operating income, before expenses related to stock grants and stock options, acquisition costs and gains or losses on disposals of activities and income and expenses related to unusual or infrequent events.
[2] Net cash flow from operating activities, less capital expenditure, net of disposals.
[3] Long-term and short-term debt less cash and cash equivalents and fair value of interest-rate and currency hedging instruments.
[4] Gearing is measured as the ratio of net debt to consolidated equity plus provisions and contingent liabilities (including employee benefits).
