INTERIM FINANCIAL REPORT first half-year 2016

THE POWER

of convergence

SAFT, AT THE INTERSECTION OF CUSTOMER NEEDS AND MAJOR GLOBAL TRENDS

Contents

  1. Interim management report 1

  2. 2016 first half revenue and consolidated results highlights 2

  3. Results by division 3

  4. Other items of consolidated income 5

  5. Main cash flows over the period 6

  6. Group balance sheet 6

  7. Other significant events during the first half of 2016 7

  8. Related-party transactions 7

  9. Risks and uncertainties with regard to the second half of 2016 7

  10. Outlook 8

  11. Financial calendar 8

  12. Condensed interim consolidated

    financial statements 9

  13. Consolidated income statement 10

  14. Consolidated statement of comprehensive income 10

  15. Consolidated statement of cash flows 11

  16. Consolidated statement of financial position 12

  17. Consolidated statement of changes in equity 14

  18. Notes to the Condensed Interim consolidated financial statements 15

  19. Statutory Auditors' review report

    on the 2016 interim financial information 25

  20. Certificate by the persons responsible

  21. for the interim report 26

    Important legal information and cautionary statements:

    The condensed interim consolidated financial statements for the six months ended 30 June 2016 presented in this document have been approved by the Management Board, reviewed by the Audit Committee and approved by the Supervisory Board of Saft.

    Certain statements contained herein are forward-looking statements relating, in particular, to future events, trends, plans or objectives. By their nature, these forward- looking statements involve known or unknown risks and uncertainties that could cause Saft's actual results and objectives to differ materially from those expressed or implied in these forward-looking statements.

    1

    Interim management report

    First half-year 2016

    1. 2016 first half revenue

      and consolidated results highlights 2

    2. Results by division 3

    3. Other items of consolidated income 5

    4. Main cash flows over the period 6

    5. Group balance sheet 6

    6. Other significant events

      during the first half of 2016 7

    7. Related-party transactions 7

    8. Risks and uncertainties with regard

      to the second half of 2016 7

    9. Outlook 8

    10. Financial calendar 8

      11. SAFT - INTERIM FINANCIAL REPOR T 2016 / 1

      1

      INTERIM MANAGEMENT REPORT FIRST HALF-YEAR 2016

      2016 first half revenue and consolidated results highlights

      1.1 2016 FIRST HALF REVENUE AND CONSOLIDATED RESULTS HIGHLIGHTS

      Published Restated

      (in € million)

      First half

      2016

      First half 2015

      Change in%(1)

      First half 2016(2)

      First half 2015

      Change in%(1)

      Revenue

      367.8

      370.8

      (0.4)%

      367.8

      370.8

      (0.4)%

      Gross profit

      106.4

      110.8

      (4.0)%

      106.4

      110.8

      (4.0)%

      Gross profit margin %

      28.9%

      29.9%

      28.9%

      29.9%

      EBITDA(3)

      44.7

      57.5

      (22.3)%

      52.6

      57.5

      (8.5)%

      EBITDA margin %

      12.2%

      15.5%

      14.3%

      15.5%

      EBIT(4)

      26.5

      38.2

      (30.6)%

      34.5

      38.2

      (9.7)%

      EBIT margin %

      7.2%

      10.3%

      9.4%

      10.3%

      Operating profit

      15.3

      38.3

      (60.0)%

      32.8

      38.3

      (14.4)%

      Net profit for the period

      3.5

      30.1

      (88.4)%

      21.1

      30.1

      (29.9)%

      EPS (€ per share)

      0.14

      1.12

      (87.5)%

      0.82

      1.12

      (26.8)%

      1. Percentage changes are at actual exchange rates except for revenue growth which is at constant exchange rates. The average euro/dollar exchange rate during H1 2016 was €1 to US$1.11, compared with €1 to US$1.12 during H1 2015.

      2. H1 2016 is restated for non-recurring items related to the takeover bid.

      3. EBITDA is defined as operating income, before depreciation, amortisation, restructuring costs and other operating income and expenses.

      4. EBIT is defined as operating income, before restructuring costs and other operating income and expenses.

      Group first half salesfor 2016 amounted to €367.8 million, down by 0.8% as compared to the first half of 2015 at current exchange rates and down by 0.4% at constant exchange rates.

      Revenue for the second quarter was up 3.6% at constant exchange rates, after a decline in the first quarter (4.4% compared to the first quarter of 2015) due to a slowdown in investments in the oil sector which impacted the performance of the Industrial Standby division and the Group as a whole.

      The other Group divisions recorded solid revenue growth compared to the first half of 2015. The continued increase in revenue in H1 2016 Civil Electronics division (+3%), Space and Defense (+15.8%) and Transport, Telecom & Grid (+3.6%) was driven mainly by performance in the civil electronics, military aviation and telecom.

      Gross profit for the first half stood at €106.4 million, down by

      €4.4 million or 4.0%, as compared to H1 2015. The gross profit margin was 28.9% in the first half of 2016 versusa gross profit margin of 29.9% for the same period in the previous year. This slight decrease in the gross profit margin is mainly due to lower sales in Industrial Standby division.

      EBITDA for the first half of 2016 amounted to €52.6 million (restated with non-recurring items related to the takeover bid for an amount of €7.9 million), representing an EBITDA margin

      of 14.3%, compared with EBITDA of €57.5 million or 15.5% of revenue in H1 2015.

      Sales growth in three of the Group's divisions with improved EBITDA margin did not fully offset the decrease in Industrial Standby division.

      After amortisation, depreciation and provisions of €18.2 million (versus€19.3 million in H1 2015), EBIT marginin the first half stood at €34.5 million (restated with non-recurring items related to the takeover bid), representing a margin of 9.4% of revenue, compared with an EBIT margin of €38.2 million or 10.3% of revenue in H1 2015.

      After restructuring costs and other operating income and expenses, Group restated operating profitfor H1 2016 was

      €32.8 million, down by 14.4% on the same period in the previous year. The operating margin thus amounted to 8.9% of revenue in the first half of 2016, in decrease compared to that recorded in the first half of 2015 which stood at 10.3%.

      Net financial expenses in the first half of 2016 amounted to

      €4.7 million versusa net expense of €1.8 million in the first half of 2015. This €2.9 million increase is mainly due to the lower contribution of the foreign exchange result (gain of €0.4 million in the first half of 2016 versusa gain of €3.1 million in first half of 2015).

      The total cost of net debt was broadly stable at €3.6 million.

      2 / SAFT - INTERIM FINANCIAL REPOR T 2016

    Saft Groupe SA published this content on 28 July 2016 and is solely responsible for the information contained herein.
    Distributed by Public, unedited and unaltered, on 28 July 2016 08:56:05 UTC.

    Public permalinkhttp://www.publicnow.com/view/9240D6148518193F72929A367AB56E80B4312972