EXACOMPTA CLAIREF : Statement - H1 2015 results

Communiqué10092015_anglais

Dear Shareholders,

At its 10 September 2015 meeting in Paris, the EXACOMPTA CLAIREFONTAINE Board of Directors, chaired by Mr François Nusse, reviewed and approved the Group financial statements for the 6 months ended 30 June 2015.

 Consolidated results

(€000)	H1 2015	H1 2014
Revenue	277,033	265,549
Operating income	5,765	1,734
Net income before tax	6,801	1,980
Net income/(loss) after tax	4,700	751
Minority interests	95	(9)
Group share	4,605	760

• First half 2014 operating income was impacted by a €2 million goodwill impairment loss.

• The impact of the application of IFRIC 21 on the first half 2015 financial statements is estimated at €1,030,000, which will reduce net income after tax from €4,700,000 to

€3,670,000. An assessment of its full impact is currently under way and will appear in the half-year financial report, to be published at a later date.

 Segment information (excluding impact of IFRIC 21)

(€000)	France	Europe	Outside Europe	Total
Revenue	176,316	84,614	16,103	277,033

(€000)	Paper	Processing	Inter-segment transactions	Total
Revenue	137,545	207,708	(68,220)	277,033
Operating income/(loss)	5,131	683	(49)	5,765

Exacompta Clairefontaine's business covers two sectors: Paper

In Europe, production of uncoated printing and writing papers grew by 1.5% compared to the first half of 2014. Exports were boosted by the fall of the euro against other currencies. In addition, the recent closure of a number of production units helped us to improve efficiency at our other plants.

Although this situation has benefited our factories, profitability in this sector was hampered by the relative strengthening of the USD, the currency in which the pulp prices we pay are denominated.

First half revenue rose by 1.3%. Operating income amounted to €5,131,000 for first half 2015 compared to €7,092,000 in the previous year.

Processing

The consumption of stationery in France continues its downward trend of around 1% each year. Demand from professional customers, which seemed to be hit harder than general consumption, picked up in June (source I+C).

The results obtained by our processing departments are therefore linked to their continuing efforts to promote quality through brand products, as well as diversification in keeping with our expertise.

First half revenue increased by 7%. The division posted operating income of €683,000 compared to a €3,136,000 operating loss in first half 2014.

 Group financial items

As at 30 June 2015, with revenue of €277,033,000, Group borrowings amounted to €121,259,000 and shareholders' equity totalled €376,649,000.

The Group has negotiated lines of credit with its banks. The Group also issued commercial paper, which amounted to €50 million at 30 June 2015 out of a global programme of €125 million.

With cash of €68,659,000 at 30 June 2015, Group net borrowings amounted to €52,600,000.

 Outlook

The increase in pulp prices has confirmed our policy of systematically shifting our focus towards high- end papers and articles. At the same time, it is essential that we adjust our sales prices.

Global monetary upheavals over the past summer have made it difficult to produce accurate forecasts for the full financial year. Consolidated net income for the year is expected to fall somewhere between our 2013 and 2014 results, i.e. between €4.3 and €11.2 million.

THE BOARD OF DIRECTORS

Head of Financial Reporting Jean-Marie Nusse

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