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Robust performance in the strategic Nuclear and Aerospace segments
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Operating profit from business activity at 6.0% of revenue, with operating profit at 5.2%
(Paris - 9 September 2013 - 5:35 pm CET) - The Supervisory Board of Assystem S.A. (ISIN: FR0000074148 - ASY), a leading innovation and engineering consultancy, met on 6th September, and reviewed the consolidated financial statements for the six months ended 30 June 2013.
| €m | H1 2013 | H1 2012 |
Income statement highlights
| Revenue Operating profit from business activity[1] % of revenueOperating profit % of revenue Attributable net profit excluding change in fair value of the ORNANE derivative[2] Attributable net profit | 436.0 26.3 6.0% 22.9 5.2% 13.8 15.0 | 427.1 28.2 6.6% 26.9 6.3% 14.9 14.6 |
Cash flow highlight
| Operating free cash flow[3] | (10.3) | 1.6 |
Balance sheet highlight
| Net debt[4] | (23.5) | 12.3 |
Per share data (€)
| Basic earnings per share Diluted earnings per share | 0.81 0.65 | 0.76 0.69 |
* The comparative figures for first-half 2012 reflect the changes in scope of consolidation resulting from the disposal of Anafi in late May 2012 and the consolidation since 1 February 2012 of international operations managed from Dubai.
The Statutory Auditors have conducted a limited review of the interim financial statements.
ANALYSIS OF THE FIRST-HALF 2013 INCOME STATEMENT
In first-half 2013, Assystem achieved overall growth of 2.1% as reported and 1.6% on an organic basis, with revenue of €436.0 million. Excluding an unfavourable calendar effect, organic growth came to 4.5%. Assystem's two strategic businesses continued to enjoy robust expansion, with Nuclear up 15% and Aerospace up 9.6% for the period.
Geographic breakdown of operating profit
| €m | H1 2013 | % of revenue | H1 2012 | % of revenue | |
| France | 15.6 | 6.0% | 16.9 | 6.4% | |
| International | 7.3 | 4.1% | 10.0 | 6.2% | |
| Total | 22.9 | 5.2% | 26.9 | 6.3% |
In an environment shaped by slower growth, Assystem's operating profit held firm at €22.9 million. Although impacted by an adverse seasonal effect, the amount also reflected contrasting conditions in different countries and industries. The Group reported non recurring expenses for €3.4 million. Operating margin from business activity reached 6.0% as of 30 June 2013 compared with 6.6% a year earlier.
Operating margin in complex infrastructure engineering stood at 5.4%, hampered by reduced demand for on-site technical assistance services in the MPH Global Services segment and for design office services in France's conventional energy segment. The Nuclear business continued to perform well, with an operating margin that came in above the consolidated average.
Outsourced R&D operating margin represented 5.1%. Excluding the impact of initiatives underway in Germany to adjust the offering, the Aerospace business sustained a high margin that continued to exceed the Group average. Margins in the French auto industry eroded further, in line with a long-term downward trend. The Group recorded a provision for loss on completion of €1.2 million for an on-going contract in the Rail business.
The effective tax rate stood at 27.4%, versus 29.2% at 30 June 2012. Attributable net profit ended the period stable, at €15.0 million.
One-Off decrease of the free cash flow at 30 June, to a negative €10.3 million (seasonal effects and slight increase in DSO). Net debt for the first half of 2013 was limited to €23.5 million, despite the impact on cash of acquiring a block of shares held in the Company by FSI (renamed Bpifrance Participations SA) for €28.3 million.
OUTLOOK
In the coming years, Assystem will continue to implement its growth and acquisition plan, mainly in its two core strategic businesses, Nuclear and Aerospace, which both hold sustainable growth potential for the Group.
In a still uneven macroeconomic environment, Assystem confirms its full-year 2013 target of achieving organic revenue growth of between +2% and +5%. The Group remains confident in its 2013 operating performance objective to keep operating margin from business activity on a par with 2012 and in its operating profit margin target to between 6.0% and 6.5%.
Assystem's first-half 2013 results will be presented on 10 September at 8:30 am. The presentation, as well as the interim financial report, may be downloaded from www.assystem.com.
2013 INVESTOR CALENDAR
12 November 2013, after close of trading: Quarterly business review, third-quarter 2013.
Assystem is an international Engineering and Innovation Consultancy. As a key participant in the industry for more than 45 years, Assystem supports its customers in developing their products and managing their capital expenditure throughout the product life cycle. Assystem employs nearly 11,000 people worldwide and reported €855 million in revenue in 2012. The Company is listed on NYSE Euronext Paris.
For more information, please visit www.assystem.com - Follow Assystem on Twitter: @anewpath2growth
CONTACTS
| Gilbert Vidal Chief Financial Officer Phone: +33 (0)1 55 65 03 10 | Nicolas Castex - Agnès Villeret - Lucie Larguier Citigate Dewe Rogerson Phone: +33 (0)1 53 32 78 95 - +33 (0)1 53 32 84 75 agnes.villeret@citigate.fr / / 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
| In € million | First-half 2013 | First-half 2012 |
| Infrastructure Engineering & Operations | 9.8 | 11.0 |
| Aerospace Engineering | 8.0 | 9.5 |
| Technology & Product Engineering | 4.4 | 6.8 |
| Other businesses | 0.7 | (0.4) |
| Total | 22.9 | 26.9 |
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Share capital at 31 august 2013
Shares outstanding
| Ordinary shares outstanding | 19,219,965 | |
| Treasury stock | 1,880,311 | |
| BSAR 2015 redeemable share warrants outstanding1 | 3,105,564 | Strike price: €11.10 |
| Stock awards and performance stock awards outstanding | 247,823 | |
| Weighted average shares outstanding (at 30 June 2013) | 18,574,210 | |
| Diluted weighted average shares outstanding (at 30 June 2013) | 24,008,567 | |
1Parity: 1.0; Expire: 9 July 2015; Enforcement call starting date: 9 July 2013; Enforcement call share price: €15.54.
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breakdown of capital at 31 August 2013
| % | Shares | Effective voting rights2 |
| Dominique Louis / HDL | 28.9 | 29.9 |
| Members of the Supervisory board and managers 3 | 3.2 | 5.9 |
| Employee Mutual Fund FCP | 1.2 | 2.2 |
| Public | 57.0 | 62.0 |
| Treasury stock | 9.8 | 0.0 |
2 These voting rights differ from the theoretical voting rights used in the calculation of threshold crossing.
3 Excluding Dominique Louis.
consolidated balance sheet
| In € million | |||
| ASSETS | 30 June 13 | 31 Dec 12 | 30 June 12 |
| Goodwill | 119.8 | 120.1 | 118.6 |
| Intangible assets | 4.6 | 4.7 | 5.2 |
| Property, plant and equipment | 19.6 | 20.0 | 20.2 |
| Investment property | 1.4 | 1.4 | 1.4 |
| Investment in associates | 0.8 | 0.6 | 0.7 |
| Available-for-sale financial assets | 3.2 | 3.1 | 3.3 |
| Other non-current financial assets | 8.0 | 8.4 | 7.3 |
| Deferred tax assets | 5.3 | 5.3 | 3.8 |
| Total non-current assets | 162.7 | 163.6 | 160.5 |
| Trade receivables | 282.1 | 270.9 | 273.4 |
| Other receivables | 39.3 | 30.0 | 28.4 |
| Corporate income tax receivables | 10.0 | 3.9 | 5.4 |
| Other current financial assets | 0.1 | 0.6 | 0.1 |
| Cash and cash equivalents | 135.0 | 136.5 | 129.7 |
| Total current assets | 462.6 | 441.9 | 437.0 |
| TOTAL ASSETS | 625.3 | 605.5 | 597.5 |
| LIABILITIES | 30 June 13 | 31 Dec 12 | 30 June 12 |
| Share capital | 19.2 | 20.7 | 20.7 |
| Share premiums | 50.0 | 69.1 | 69.1 |
| Consolidated reserves | 90.2 | 74.1 | 74.3 |
| Net profit for the period | 15.0 | 33.2 | 14.6 |
| Equity, Group share | 174.4 | 197.1 | 178.7 |
| Non-controlling interests | 7.4 | 7.5 | 4.6 |
| Consolidated equity | 181.8 | 204.6 | 183.3 |
| Bond issues | 83.3 | 82.3 | 105.3 |
| Other non-current financial and derivative liabilities | 45.8 | 7.6 | 7.0 |
| Provisions | 0.5 | 0.5 | 0.8 |
| Employee benefits | 15.1 | 15.3 | 14.5 |
| Other non-current liabilities | 7.2 | 6.9 | 7.4 |
| Deferred tax liabilities | 0.9 | 0.3 | 0.5 |
| Non-current liabilities | 152.8 | 112.9 | 135.5 |
| Bond issues | 24.3 | 24.1 | 24.4 |
| Other current financial and derivative liabilities | 5.1 | 5.4 | 5.4 |
| Provisions | 7.1 | 6.0 | 8.4 |
| Trade payables | 41.1 | 43.7 | 43.6 |
| Corporate income tax liabilities | 4.2 | 1.8 | 2.4 |
| Other current liabilities | 208.9 | 207.0 | 194.5 |
| Current liabilities | 290.7 | 288.0 | 278.7 |
| TOTAL LIABILITIES | 625.3 | 605.5 | 597.5 |
CONSOLIDATED INCOME STATEMENT
| In € million | |||
| 30 June 13 | 30 June 12 | 30 June 11 | |
| Sales | 436.0 | 427.1 | 374.3 |
| Employee costs | (316.7) | (304.7) | (263.9) |
| Taxes and duties | (0.9) | (1.0) | (0.7) |
| Depreciation and provision expenses | (6.1) | (3.7) | (4.8) |
| Other operating incomes and expenses | (86.0) | (89.5) | (79.5) |
| Operating profit | 26.3 | 28.2 | 25.4 |
| Costs related to bonus shares | (0.6) | (0.5) | (0.3) |
| Acquisition costs and capital gains or losses on disposals | (0.4) | (0.8) | 1.5 |
| Other non-current operating incomes and expenses | (2.4) | ||
| Operating result | 22.9 | 26.9 | 26.6 |
| Net profit of equity affiliates | 0.2 | 0.1 | 0.1 |
| Net borrowing costs | (1.7) | (1.8) | (0.6) |
| Other financial incomes and expenses | (0.2) | (4.0) | (2.4) |
| Net profit for the period from continuing operations before tax | 21.2 | 21.2 | 23.7 |
| Income tax | (5.8) | (6.2) | (8.7) |
| Net profit for the period from continuing operations | 15.4 | 15.0 | 15.0 |
| Result for the period from discontinued operations | (0.1) | (0.1) | (0.3) |
| Consolidated net profit for the period | 15.3 | 14.9 | 14.7 |
| Attributable : | |||
| To Assystem SA | 15.0 | 14.6 | 14.5 |
| To non-controlling interests | 0.3 | 0.3 | 0.2 |
| In € | |||
| Basic earnings per share | 0.81 | 0.76 | 0.75 |
| Diluted earnings per share | 0.65 | 0.69 | 0.70 |
| Basic earnings per share from continuing operations | 0.81 | 0.77 | 0.76 |
| Diluted earnings per share from continuing operations | 0.66 | 0.69 | 0.72 |
| Basic earnings per share from discontinued operations | (0.005) | (0.005) | (0.015) |
| Diluted earnings per share from discontinued operations | (0.004) | (0.004) | (0.015) |
Consolidated cash flow statement
| In € million | |||
| 30 June 13 | 30 June 12 | 30 June 11 | |
| OPERATING ACTIVITIES | |||
| Net profit for the period from continuing operations | 15.4 | 15.0 | 15.0 |
| Elimination of non-cash and non-operating transactions | 15.2 | 15.7 | 13.3 |
| Change in operating working capital requirement | (26.4) | (15.4) | (31.2) |
| Income tax paid and change in CIT working capital | (9.9) | (9.2) | (10.8) |
| Net cash flow from discontinued operations | 0.1 | 1.0 | |
| Net cash flow from operating activities | (5.6) | 6.1 | (12.7) |
| INVESTING ACTIVITIES | |||
| Fixed assets acquisitions | (4.7) | (6.3) | (4.6) |
| Fixed assets disposals | 1.8 | 0.7 | |
| (4.7) | (4.5) | (3.9) | |
| Securities purchases | (0.1) | (15.8) | (15.7) |
| Securities disposals | 0.1 | ||
| (0.1) | (15.7) | (15.7) | |
| Loans repaid by companies classified as available-for-sale assets | (0.3) | ||
| Loans to companies classified as available-for-sale asset | 0.3 | ||
| Net cash flow from discontinued operations | |||
| Net cash flow from investing activities | (4.5) | (20.5) | (19.6) |
| FINANCING ACTIVITIES | |||
| New borrowings and other debt | 40.0 | 0.2 | |
| Bond and other borrowing repayments | 0.1 | (0.5) | (26.1) |
| Interest paid | (4.8) | (2.9) | (1.3) |
| Dividends paid to parent company's shareholders | (8.4) | (8.6) | |
| Capital increase | 0.6 | 3.2 | 2.0 |
| Purchases and disposals of treasury shares | (28.9) | (0.2) | (1.1) |
| Net cash flow from financing activities | 7.0 | (8.6) | (35.1) |
| Change in net cash | (3.1) | (23.0) | (67.4) |
| Net cash at beginning of the period | 136.3 | 151.4 | 127.2 |
| Impact of changes in exchange rates | (0.3) | 0.2 | |
| Change in net cash | (3.1) | (23.0) | (67.4) |
| Cash at end of the period | 132.9 | 128.6 | 59.8 |
[1]() Operating profit from business activity corresponds to operating profit before expenses related to stock grants and stock options, acquisition costs, gains or losses on asset disposals and income and expenses related to unusual or infrequent events.
[2]() The change in fair value of the ORNANE derivative represented income of €1.8 million in first-half 2013, or €1.2 million net of tax. In first-half 2012, the change in fair value led to the recognition of an expense of €0.4 million, or €0.3 million net of tax.
[3]() Net cash flow from operating activities, less capital expenditure, net of disposals.
[4]() Long-term and short-term debt less cash and cash equivalents and fair value of interest-rate and currency hedging instruments.
