EXACOMPTA CLAIREF : Statement - Full Year 2015 results

Communiqué 300316_Anglais

Dear Shareholders,

At its 30 March 2016 meeting in Paris, the EXACOMPTA CLAIREFONTAINE Board of Directors, chaired by Mr François Nusse, reviewed and approved the Company and Group financial statements for the financial year ended 31 December 2015.

 Consolidated results

(€000)	2015	2014
Income from continuing activities (Revenue)	571,110	550,972
Operating income	16,425	21,454
Net income before tax	15,089	19,140
Net income after tax	10,965	11,875
Minority interests	592	479
Group share	10,373	11,396

• The consolidated financial statements are impacted by the application of IFRIC 21 - Levies. Given that changes in accounting methods must be applied retrospectively, 2014 net income, initially reported as €11,911,000, was therefore adjusted to €11,875,000.

• Goodwill impairment is recorded under 2014 and 2015 net income, amounting to €2,150,000 and €2,769,000 respectively.

 Segment information

(€000)	Paper	Processing	Inter-segment transactions	Total
Revenue	260,335	434,718	(123,943)	571,110
Operating income (before goodwill impairment)	5,157	11,045	223	16,425
Goodwill impairment	2,150

(€000)	France	Europe	Outside Europe	Total
Revenue	369,058	173,028	29,024	571,110

Paper

In 2015, European consumption of uncoated printing and writing papers appears to have picked up slightly, while efforts to streamline production units continued. Demand was therefore relatively strong throughout the year.

At our four factories, sales increased in printing, filing and fine arts papers. Reeled paper production by our five machines increased by 3.3% to 228,000 tonnes.

Regarding paper made from new fibres, the sharp increase in pulp prices due to the fall in the euro against the dollar was only marginally passed on to consumers.

Processing

The French stationery and office supplies market more or less levelled out after the downward trend seen in recent years (source: I+C). However, sales to general customers once again appear more buoyant than office supplies.

As the market reorganises, the Group is in the process of joining the leaders in the filing segment whilst maintaining its dominant position in school supplies, luxury correspondence articles, diaries and calendars. Furthermore, new markets in games and creative arts, and more recently in photo development, have given our business an additional boost.

 Group financial results

As at 31 December 2015, with revenue of €571,110,000, Group borrowings amounted to

€101,322,000 and shareholders' equity totalled €379,837,000.

In order to provide for its growth, the Group has negotiated several lines of credit with its banks. At the balance sheet date, commercial paper issued by the Group amounted to €10 million out of a global programme of €125 million.

Group cash and cash equivalents amounted to €98,490,000 and the Group was able to fund capital expenditure from cash flow. Group net borrowings stood at €2,832,000 at 31 December 2015.

The 2015 financial statements have been audited and the certification reports are currently being prepared.

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• The Board is calling an Ordinary General Meeting to be held on 25 May 2016, at which it will recommend a dividend of €2 per share. It is also convening an Extraordinary General Meeting in order to decide on a capital increase reserved for members of a company savings plan.

  
  

• The next release will be made after the Board meeting called to approve the first half 2016 financial statements, scheduled for 8 September 2016.

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Business has been bolstered by the fall in raw material and energy prices as well as by the Group's professional restructuring programme. Two acquisitions were recently completed in the online photo development and filing sectors.

THE BOARD OF DIRECTORS

Head of Financial Reporting

Jean-Marie Nusse - Executive Vice President