Press release
SABCA
INTERIM FINANCIAL REPORT AS OF JUNE 30, 2019
Regulated information - Inside information, published on 24/09/2019 at 18.00 h
Corporate information
The Board of 24thSeptember 2019 approved and authorized the publication of the consolidated financial statements of SABCA Group for the six months ended 30 June 2019.
Interim management report
The results for the six months ending 30 June 2019 illustrate the progress of the implementation of the Project of the Century. The new organisation put in place over the past years, the changes made to the processes of SABCA, and the improvements in the global efficiency have allowed significant increase of on-time delivery performance to its customers, while achieving cost reductions both in its production processes and in its overall cost structure.
The half-year financial result is consistent with the forecast.
- The company has experienced adverse impacts indefence-related activities, and specific action plans have been put in place to mitigate such difficulties, with positive results over the last weeks of the semester.
- The company has experienced strong operational and commercial performance notably with the A330 and A350 programs while the volumes have decreased for the A380 and for the business jets segment. Margin improvements in the aviation programs have offset impacts ondefence-related activities.
- In the space domain, the development phase of actuation systems for the Ariane 6 andVega-C launchers is running. SABCA has been impacted by the temporary stoppage of the Vega program following the premature conclusion of the VV15 mission in July. Vega return to flight, is now expected in the first quarter of 2020.
Key figures for the first half of 2019
(in thousands of euros) | 30.06.2019 | 30.06.2018 |
Revenues | 98.331 | 100.285 |
Operating result | 2.959 | 2.261 |
Operating margin as % of Turnover | 3,5% | 2,4% |
Finance result including fair value adjustment of hedging instruments | -1.137 | -1.900 |
Taxes | -456 | -97 |
Net result for the period | 1.366 | 264 |
Adjusted net result (without fair value adjustment of hedging instruments) | 1.912 | 1.921 |
Cash and cash equivalents | 85.694 | 91.021 |
______________________________________________________________________________________________________
SOCIETE ANONYME BELGE DE CONSTRUCTIONS AERONAUTIQUES
Chaussée de Haecht 1470 - B-1130 BRUXELLES | Haachtsesteenweg 1470 - B-1130 Brussel | |
RPM Bruxelles | T.V.A. BE 0405 770 992 B.T.W. | RPR Brussel |
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Press release
Update on strategic roadmap
The management of SABCA remains committed to its strategic roadmap with a view to pursue the development of its three main markets.
- For the aviation market, the focus remains of the efficient and profitable delivery of existing programs. The management is fully committed to the business development of the activity to offset the decline of some mature platforms, including the A380 following the program stoppage announced on February 14, 2019.
- For thedefence-related activities, the F16 market is expected to remain strong based on existing customer relationships and some opportunities in new geographies.
- For the space market, the focus will be on the successful pursuit of Vega activity and the smooth transitioning from Ariane 5 to Ariane 6.
Guidance
For the full year 2019, the operating result is expected to reach the same level as in 2018 in absolute terms.
Shareholders
The Company refers to the announcement on April 10, 2019 that the board of directors had been informed of the decision of its shareholder, Dassault Belgique Aviation SA, a wholly-owned subsidiary of the Groupe Industriel Marcel Dassault, to sell its stake of 96.85% in the share capital of SABCA and to appoint, for this purpose, the investment bank Rothschild & Co. Further information will be provided as soon as a definitive agreement will be reached.
______________________________________________________________________________________________________
SOCIETE ANONYME BELGE DE CONSTRUCTIONS AERONAUTIQUES
Chaussée de Haecht 1470 - B-1130 BRUXELLES | Haachtsesteenweg 1470 - B-1130 Brussel | |
RPM Bruxelles | T.V.A. BE 0405 770 992 B.T.W. | RPR Brussel |
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Press release
Appendix - Details on interim results for the six months ended 30 June 2019
Basis of preparation
The condensed consolidated interim financial statements of the SABCA group for the six months ended June 30, 2019 have been prepared in accordance with IAS 34 Interim Financial Reporting. The condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements of the SABCA group for the financial year ended on December 31, 2018, which was prepared in accordance with International Financial Reporting Standards as approved for use in the European Union (endorsed IFRS), on the basis of the same principles, calculation methods and presentations as in the SABCA group's financial statements on December 31, 2018,except for the new standards and interpretations which have been adopted as of January 1st, 2019 (see section "Accounting Principles" below) and which had an impact on the interim condensed consolidated financial statements.
Condensed consolidated statement of financial position
(in thousands of euros) | 30.06.2019 | 01.01.2019 | IFRS16 | 31.12.2018 |
ASSETS | 334.837 | 340.509 | 333.823 | |
Non-current assets | 106.722 | 116.951 | 110.265 | |
Intangible assets | 38.535 | 40.890 | 40.890 | |
Property, plant and equipment | 65.592 | 68.211 | +6.686 | 61.525 |
Affiliated enterprises | 112 | 112 | 112 | |
Financial assets and other non-current assets | 2.483 | 7.738 | 7.738 | |
Current assets | 228.115 | 223.558 | 223.558 | |
Inventories | 29.791 | 31.329 | 31.329 | |
Work-in-progress | 47.372 | 35.809 | 35.809 | |
Trade and other receivables | 63.884 | 62.200 | 62.200 | |
Cash and cash equivalents | 85.693 | 93.427 | 93.427 | |
Other current assets | 1.375 | 793 | 793 | |
EQUITY AND LIABILITIES | 334.837 | 340.509 | 333.823 | |
Total equity | 89.860 | 90.640 | 90.640 | |
Attributable to shareholders of the parent | 89.397 | 90.162 | 90.162 | |
company | ||||
Capital | 12.400 | 12.400 | 12.400 | |
Consolidated reserves | 76.997 | 77.762 | 77.762 | |
Non-controlling interests | 463 | 478 | 478 | |
Non-current liabilities | 179.482 | 174.318 | 168.672 | |
Long-term borrowings | 141.110 | 137.097 | +5.646 | 131.451 |
Non-current provisions | 34.113 | 32.723 | 32.723 | |
Deferred tax liabilities | 4.259 | 4.498 | 4.498 | |
Current liabilities | 65.495 | 75.551 | 74.511 | |
Trade and other payables | 28.366 | 39.470 | 39.470 | |
Tax and social liabilities | 13.292 | 13.316 | 13.316 | |
Other current liabilities | 4.164 | 3.820 | +1.040 | 2.840 |
Current provisions | 19.673 | 18.885 | 18.885 |
______________________________________________________________________________________________________
SOCIETE ANONYME BELGE DE CONSTRUCTIONS AERONAUTIQUES
Chaussée de Haecht 1470 - B-1130 BRUXELLES | Haachtsesteenweg 1470 - B-1130 Brussel | |
RPM Bruxelles | T.V.A. BE 0405 770 992 B.T.W. | RPR Brussel |
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Press release
Condensed consolidated statement of profit and loss
(in thousands of euros) | 30.06.2019 | 30.06.2018 | ||||
Revenues | 98.331 | 100.285 | ||||
Turnover | 83.522 | 92.947 | ||||
Increase (+), decrease (-) in work in progress | 11.564 | 2.990 | ||||
Own construction capitalized | 1.760 | 2.402 | ||||
Other operating income | 1.485 | 1.946 | ||||
Operating expenses | -95.372 | -98.024 | ||||
Raw materials and consumables used | 22.871 | 20.432 | ||||
Services and other goods | ||||||
31.275 | 37.228 | |||||
Wages and salaries, social security costs and pensions | 32.709 | 31.942 | ||||
Depreciation and amortization of intangible and tangible assets | 7.787 | 7.278 | ||||
Write offs on inventories and trade debtors | 40 | 40 | ||||
Provisions for liabilities and charges | -540 | 577 | ||||
Other operating expenses | 1.230 | 527 | ||||
Result from continuing operations | 2.959 | 2.261 | ||||
Finance income | 1.695 | 1.405 | ||||
Finance costs | -2.832 | -3.305 | ||||
Result from continuing operations after finance result | 1.822 | 361 | ||||
Income taxes | -456 | -97 | ||||
Net result for the period | 1.366 | 264 | ||||
whereof | Attributable to shareholders of the parent | 1.381 | 313 | |||
Share of non-controlling interests | -15 | -49 | ||||
Result per share in EUR | 30.06.2019 | 30.06.2018 | ||||
(number of shares : 2.400.000) | ||||||
- basic | 0,57 | 0,11 | ||||
- diluted | 0,57 | 0,11 |
Condensed consolidated statement of comprehensive income
(in thousands of euros) | 30.06.2019 | 30.06.2018 |
Net result for the period | 1.366 | 264 |
Other comprehensive income (+) / loss(-) after tax impact | -2.145 | -165 |
Other comprehensive income to be reclassified to profit/loss in subsequent | ||
periods, net of taxes | -82 | -165 |
Fair value adjustment of hedging instruments | -99 | -225 |
Income tax impact | 17 | 60 |
Other comprehensive income not to be reclassified to profit/loss in | ||
subsequent periods, net of taxes | -2.063 | |
Actuarial gains/losses on post-employment benefits | -2.707 | |
Income tax impact | 644 | |
Total comprehensive income (+)/loss (-), net of taxes, for the period | -779 | 99 |
Attributable to : | -779 | 99 |
Shareholders of the parent | -764 | 148 |
Share of non-controlling interests | -15 | -49 |
______________________________________________________________________________________________________
SOCIETE ANONYME BELGE DE CONSTRUCTIONS AERONAUTIQUES
Chaussée de Haecht 1470 - B-1130 BRUXELLES | Haachtsesteenweg 1470 - B-1130 Brussel | |
RPM Bruxelles | T.V.A. BE 0405 770 992 B.T.W. | RPR Brussel |
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Press release
Condensed consolidated statement of cash flow
(in thousands of euros) | 30.06.2019 | 30.06.2018 |
Cash flow from operating activities | -4.937 | -6.808 |
Net income before tax | 1.822 | 361 |
Fair value adjustment of derivatives | 826 | 2.490 |
Depreciation and amortization on fixed assets | 7.787 | 7.263 |
Change in working capital | -14.710 | -17.251 |
Change in provisions, deferred taxes and reserves | -662 | 329 |
Cash flow from investing activities
Acquisition of intangible, tangible and financial non-current assets
Increase and decrease of receivables
Cash flow from financing activities | |
Change in short-term liabilities | (except trade and financial debts) |
Change in long-term liabilities | (except trade and financial debts) |
Change in short-term financial liabilities
Interests
- earned
- paid
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, at the beginning of the period (1stJanuary)
Cash and cash equivalents, at the end of the period (30thJune)
-2.803-3.277
-2.802-3.276
-1-1
7 -808
-50-318
717-58
-735-452
10552
-30-32
-7.733-10.893
93.427 101.914
85.694 91.021
Condensed consolidated statement of changes in equity
(in thousands of euros) | Consolidated reserves | Actuarial gains / losses | Hedging instruments on | Total attributable to shareholders of the parent | Non-controlling interests | ||
Capital | Total equity | ||||||
Balance as of 1stJanuary 2018 | 12.400 | 75.851 | -6.080 | 82.171 | 123 | 82.294 | |
Result for the period | 313 | 313 | -49 | 264 | |||
Other comprehensive income (+)/loss (-) | -165 | -165 | -165 | ||||
Total comprehensive income | 313 | -165 | 148 | -49 | 99 | ||
Balance as of 30thJune 2018 | 12.400 | 76.164 | -6.080 | -165 | 82.319 | 74 | 82.393 |
Balance as of 1stJanuary 2019 | 12.400 | 81.044 | -2.641 | -642 | 90.161 | 478 | 90.639 |
Result for the period | 1.381 | 1.381 | -15 | 1.366 | |||
Other comprehensive income to be | |||||||
Reclassified to profit (+)/loss (-) | -82 | -82 | -82 | ||||
Other comprehensive income not to be | |||||||
reclassified to profit (+)/loss (-) | -2.063 | -2.063 | -2.063 | ||||
Total comprehensive income | 1.381 | -2.063 | -82 | -764 | -15 | -779 | |
Balance as of 30thJune 2019 | 12.400 | 82.425 | -4.704 | -724 | 89.397 | 463 | 89.860 |
______________________________________________________________________________________________________
SOCIETE ANONYME BELGE DE CONSTRUCTIONS AERONAUTIQUES
Chaussée de Haecht 1470 - B-1130 BRUXELLES | Haachtsesteenweg 1470 - B-1130 Brussel | |
RPM Bruxelles | T.V.A. BE 0405 770 992 B.T.W. | RPR Brussel |
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Press release
Notes to the condensed consolidated financial statements
A. Profit and loss
The operating resultfor the first half of 2019 is +2.959 K€compared to +2.261K€ for the first half of 2018. Despite the decrease in revenues, this improvement is generated by lower operating costs.
The financial resultfor the first half of 2019 is -1.137K€compared to -1.900 K€ for the first half of 2018.
This negative result includes a fair value adjustment of currency hedging instruments for an amount of -727 K€ which does not reflect the future financial results upon settlement of such financial instruments. In the first half of 2018, the fair value adjustment of currency hedging instruments was -2.265 K€.
Deferred taxes are recalculated in accordance with the Belgian tax reform, which implies an average tax rate of 25 %.
The net resultfor the first half of 2019 is +1.366 K€compared to +264 K€ for the first half of 2018.
Without taking into account the negative variation of the Mark-to-Market value of the currency hedging instruments not settled as of 30/06/2019, the net result is +1.912 k€, to be compared with +1.921 K€ for the first half of 2018.
B. Balance sheet
The Group's cash flow on the first half of 2019 is -7.733 K€. This decrease is explained by the increase in working capital requirements.
C. Accounting principles
The financial statements for the first half of 2019 are presented in accordance with the accounting principles described in the Group's Annual Report for the year ended as of 31 December 2018, except for the new standards and interpretations which have been adopted as of January 1st, 2019 which had an impact on the interim condensed consolidated financial statements.
Changes in basis of accounting
As from 1stJanuary 2019, the Group has applied for the first time IFRS 16 "Leases". As required by IAS 34, the nature and effect of these changes are disclosed below.
The Group adopted IFRS 16 using the modified retrospective transition approach. Therefore, the opening balance sheet as of December 31, 2018 has been restated on January 1, 2019 taking into account the right-of- use of identified underlying assets on one side and the obligations to make lease payments on the other side.
As of June 30, 2019, lease costs were booked taking into the depreciation of the right-of-use of the underlying assets as well as a financing cost, against reversal of the corresponding rental costs incurred.
The principal risks and uncertainties faced by the Group are outlined below:
Liquidity and Cash Flow Risks
Financial debts do not pose a significant risk for the Group. The Group's cash position enables it to meet its commitments without liquidity risk.
Credit Risks
The Group carries out its treasury and foreign exchange transactions with recognised financial institutions.
The Group mitigates the risks related to the default of the customer counterparties by making the majority of its sales in cash and by guaranteeing the credit granted by credit insurer or by real guarantees.
Given the method of depreciation of trade receivables used for the preparation of the financial statements, the risk-bearing portion of non-depreciated receivables due at closing is insignificant.
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SOCIETE ANONYME BELGE DE CONSTRUCTIONS AERONAUTIQUES
Chaussée de Haecht 1470 - B-1130 BRUXELLES | Haachtsesteenweg 1470 - B-1130 Brussel | |
RPM Bruxelles | T.V.A. BE 0405 770 992 B.T.W. | RPR Brussel |
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Press release
Market and Currency Risks
The Group is exposed to a foreign exchange risk for sales denominated in USD, the major share of expenses being incurred in EUR, despite the intensification of purchases in USD.
The Group hedges this risk by using forward sales contracts and, where applicable, currency options.
It only covers its future net cash flows if they are recognised as sufficient to exercise the currency hedges put in place. The amount of the hedge can be adjusted according to the evolution over time of the expected net flows.
Value in consolidated | |||||||||||
statement of financial | |||||||||||
position on 30/06/2019 | |||||||||||
Net carrying | Fair value | ||||||||||
value | |||||||||||
Market value of hedging instruments included in "other current liabilities" | 1.078 | 1.078 | |||||||||
Market value variation: impact on result and on equity | |||||||||||
Market value | Market value | ||||||||||
on | on | ||||||||||
30/06/2019 | 31/12/2018 | ||||||||||
Hedging instruments not-qualifying for hedge accounting | -113 | 614 | |||||||||
Hedging instruments qualifying for hedge accounting | -965 | -867 | |||||||||
Total hedging instruments | -1.078 | -253 | |||||||||
Impact on result | |||||||||||
Impact on | result from | finance | Total | ||||||||
equity | continuing | result | |||||||||
operations | (*) | ||||||||||
Market value variation of hedging instruments | -99 | -727 | -826 |
(*) Change in market-value of hedging instruments not-qualifying for hedge accounting as defined in IFRS9
Risks on Long-Term Programmes
The Group is exposed to a risk on Long-Term Programmes because of their technical, economic and financial evolutions, which can put their profitability in jeopardy. These risks are typically related to the ability to deliver products and services in accordance with customer needs (quality and timeliness), constant pressure on prices that could lead to margin degradation, lack of capacity in machinery or human resources, etc.
Operational Risks
Following the work done by the Risk Management and Internal Control managers, the operational risks were identified and mapped according to their acceptability:
- Variations in production rates in the needs expressed by customers under existing contracts, and the uncertainty related to obtaining new contracts, lead to a variable charge and - in the long term - one that is lower than the internal capacity of the company; this could lead to a need to adapt capacity.
- The age distribution within the workforce, and particularly the high average age, makes succession to key positions, training, and transmission of skills particularly difficult, especially in the complex regulatory and technological environment of the aerospace industry.
- The reorganisation of the SABCA Group via the Project of the Century (POTC) represents a challenge that is closely monitored by the Management.
Related-party transactions
Sales and purchases are at market price.
Balances outstanding at half-year are not guaranteed and payments are made in cash. No guarantees were provided or received for related-party receivables.
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SOCIETE ANONYME BELGE DE CONSTRUCTIONS AERONAUTIQUES
Chaussée de Haecht 1470 - B-1130 BRUXELLES | Haachtsesteenweg 1470 - B-1130 Brussel | |
RPM Bruxelles | T.V.A. BE 0405 770 992 B.T.W. | RPR Brussel |
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Press release
Declaration of the persons responsible for the report
In the name and on behalf of SABCA Group, we hereby certify that to our knowledge :
- the condensed set of financial statements prepared in accordance with applicable accounting standards gives a fair view of the assets, financial position and results of the company and entities included in the consolidation.
- the interim management report includes a fair review of important events and principal transactions with related parties during the first half year, their impact on the set of financial statements and a description of principal risks and uncertainties for the remaining months of the year.
- no significant events after the interim period, that have not been reflected in the interim financial reporting, have to be reported.
Dimitri Duray | Thibauld Jongen |
Chief Financial Officer | Chief Executive Officer |
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SOCIETE ANONYME BELGE DE CONSTRUCTIONS AERONAUTIQUES
Chaussée de Haecht 1470 - B-1130 BRUXELLES | Haachtsesteenweg 1470 - B-1130 Brussel | |
RPM Bruxelles | T.V.A. BE 0405 770 992 B.T.W. | RPR Brussel |
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Press release
Auditor's report
Statutory auditor's report to the board of directors of S.A.B.C.A. SA on the review of the condensed consolidated interim financial information as at June 30th, 2019 and for the six- month period then ended
Introduction
We have reviewed the accompanying interim condensed consolidated balance sheet of S.A.B.C.A. SA and its subsidiaries as of June 30th, 2019 and the related interim condensed consolidated income statement, the interim condensed consolidated statement of changes in equity, the interim condensed consolidated of comprehensive income and the interim condensed consolidated cash flow statement for the six-month period then ended, as well as the explanatory notes.
The board of directors is responsible for the preparation and fair presentation of this condensed consolidated interim financial information in accordance with IAS 34 "Interim Financial Reporting" as adopted by the European Union. Our responsibility is to express a conclusion on this condensed consolidated interim financial information based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity." A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial information as at June 30th, 2019 and for the six-month period then ended is not prepared, in all material respects, in accordance with IAS 34 as adopted by the European Union.
Brussels, September 24th, 2019
Mazars Réviseurs d'Entreprises SCRL
Represented by
Lieven ACKE
Registered Auditor
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SOCIETE ANONYME BELGE DE CONSTRUCTIONS AERONAUTIQUES
Chaussée de Haecht 1470 - B-1130 BRUXELLES | Haachtsesteenweg 1470 - B-1130 Brussel | |
RPM Bruxelles | T.V.A. BE 0405 770 992 B.T.W. | RPR Brussel |
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Press release
Financial calendar
- Annual report 31 December 2019 : April 2020
- General meeting : 28thMay 2020
- Half-yearresults 30 June 2020 : September 2020
Financial information
The company makes available its financial information on its website : www.sabca.be
Contact
Accounting and financial data
Dimitri DURAY
Chief Financial Officer 02/729 55 20
General
Angeles AGUILILLA MONTERO Assistant General Management 02/729 57 01
___________________
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SOCIETE ANONYME BELGE DE CONSTRUCTIONS AERONAUTIQUES
Chaussée de Haecht 1470 - B-1130 BRUXELLES | Haachtsesteenweg 1470 - B-1130 Brussel | |
RPM Bruxelles | T.V.A. BE 0405 770 992 B.T.W. | RPR Brussel |
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Disclaimer
SABCA - Société Anonyme Belge de Constructions Aéronautiques published this content on 24 September 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 September 2019 20:02:01 UTC