Saint-Gobain: First-half 2014 results
Strong upswing in performance
PARIS, July 30, 2014 /PRNewswire/ --
- Organic growth at 4.1% (including a positive 1.2% price impact)
- Strong negative currency impact of 3.2% on sales and negative 1.9% Group structure impact with the disposal of Verallia North America
- Operating income up 14.8% like-for-like
- Stronger balance sheet: net debt reduced by almost €1 billion compared to June 30, 2013
(EURm) H1 2013* H1 2014 Change Change
(like-for-like)
Sales 20,651 20,446 -1.0% +4.1%
EBITDA 1,939 1,997 +3.0%
Operating income 1,224 1,330 +8.7% +14.8%
Recurring[1] net income 402 511 +27.1%
Net income 313 671 +114.4%
Free cash flow[2] 644 713 +10.7%
Pierre-André de Chalendar, Chairman and Chief Executive Officer of Saint-Gobain, commented:
"After a first quarter boosted by favorable weather conditions in Europe, the second quarter confirmed the slight uptrend in our markets first seen in second-half 2013 across all of our regions; only France remains down. Besides the continuing strong negative currency effect during this first half and the impact of the Verallia North America sale, these results − along with our ongoing tight rein on costs − support our objective of a clear like-for-like improvement in operating income for full-year 2014."
* 2013 figures restated to reflect the impacts of IFRS 10, IFRS 11 and IFRIC 21.
1. Excluding capital gains and losses on disposals, asset write-downs and material non-recurring provisions.
2. Excluding the tax impact of capital gains and losses on disposals, asset write-downs and material non-recurring provisions
Operating performance
Sales were up 4.1% in first-half 2014 on a like-for-like basis (comparable structure and exchange rates) and rose 1.6% in the second quarter, with volumes gaining 0.5% (including a negative 0.9% impact resulting from fewer working days) and prices advancing 1.1%. The upbeat trends observed as from second-half 2013 continued throughout the six months to June 30, 2014 (volumes up 2.9%), with favorable weather conditions boosting the first-quarter performance. Growth was confirmed in our main regions over the first half, even though France was down slightly in the second quarter. Despite a less inflationary cost environment, sales prices gained 1.2% over the first half.
Exchange rates continued to have a strong negative impact of 3.2%. Changes in Group structure had a negative 1.9% impact and include the disposal of Verallia North America (VNA) as of April 11. Sales were therefore down 1.0% on a reported basis.
Thanks to good operating leverage, the Group's like-for-like operating income rose 14,8%. The consolidated operating margin widened to 6.5%, compared to 5.9% in first-half 2013 (based on comparable accounting standards).
Performance of Group Business Sectors
Innovative Materials like-for-like sales continued to improve up 3.7%, lifting the Business Sector's operating margin to 9.1% from 6.6% one year earlier.
- Like-for-like Flat Glass sales were up 3.4%. Construction markets remain weak in Western Europe but are on the mend (with a slight rise in the price of commodity products such as float glass) and performed well in Asia and emerging countries despite a slowdown in Latin America. Automotive glass proved less buoyant, particularly in Brazil in the second quarter.
Thanks to cost cutting measures and an improved product mix, the operating margin continued to widen compared to the two previous half-year periods, up to 5.5% of sales (versus 1.1% of sales in first-half 2013 and 4.0% of sales in second-half 2013).
- High-Performance Materials (HPM) sales moved up 4.0% like-for-like. Excluding Ceramics, HPM businesses (Plastics, Abrasives, Textile Solutions) continued to report organic growth in all regions despite the recent volume downturn in Brazil.
The operating margin edged up to 13.3% from 12.9%, owing to an improved performance from Plastics, Abrasives and Textile Solutions.
Construction Products (CP) like-for-like sales advanced 5.5%. The operating margin came in at 9.0% versus 8.5% in the same year-ago period.
- Interior Solutions posted 7.1% organic growth. In Western Europe, volumes stabilized in the three months to June 30 after increasing in the first quarter, while prices dipped slightly. The US, Asia and emerging countries continued to deliver double-digit growth, powered by volumes with good price momentum.
The operating margin widened to 8.5% versus 7.6% in first-half 2013.
- Exterior Solutions reported 3.9% organic growth. Exterior Products in the US retreated over the first half, with the slight second-quarter improvement against weak prior-year comparatives failing to offset the first-quarter decline. Pipe enjoyed a sharp rise in organic growth, buoyed by the rally in Exports. Industrial Mortars posted good growth in terms of both volumes and prices, driven by Asia and emerging countries.
Despite the decline in Exterior Products in the US, the operating margin came in at 9.5% of sales versus 9.3% of sales in first-half 2013.
Building Distribution sales were up 3.6% on a like-for-like basis (up 2.1% on a reported basis, or €188 million). Sales stabilized in the second quarter after the bullish growth reported in the first three months of the year, aided by mild winter weather and a weak comparison basis. The UK, Brazil, Nordic countries and Germany contributed to the good first-half growth performance, while trading in France was virtually stable despite a good first quarter.
Thanks to good management of its trade margin and costs, operating income for the Business Sector improved sharply, up to €265 million versus €198 million in first-half 2013. The operating margin rose to 2.9% from 2.2% in the same period one year earlier.
Packaging (Verallia) sales advanced 1.7% on a like-for-like basis, taking into account the disposal of VNA with effect from April 11. Volumes were up slightly in Europe, although prices declined and the mix deteriorated. Latin America posted good organic growth, buoyed chiefly by price trends reflecting the impact of inflation.
The operating margin bottomed out at 9.8% due to narrowing margins in Europe and a one-off inventory adjustment.
Analysis by geographic area
The Group reported positive organic growth in all of its main regions in first-half 2014, driven by Asia and emerging countries as well as by North America. Western Europe also advanced, boosted by a favorable weather impact in the first quarter.
Profitability improved in Western Europe and in Asia and emerging countries, but retreated in North America due to the downturn in trading for Exterior Products in the US.
- France continued to be affected by the decline in the market for new-builds in the second quarter, posting negative organic growth of 1.0%. Thanks to the first quarter performance, organic growth over the six months to June 30 remains slightly positive (+0.8%).
The operating margin proved resilient, at 4.2% based on comparable accounting standards (IFRIC 21).
- Other Western European countries saw like-for-like sales climb 5.3%, including a 1.5% rise in the second quarter. This advance reflects healthy market conditions in the UK and Scandinavia. Germany reported 5.1% organic growth for the first half and a decline in the second quarter due to business having been brought forward to the first three months of the year. Trading in Southern European countries improved in the six months to June 30 and stabilized in the second quarter.
The operating margin rallied sharply, at 5.0% versus 3.1% in first-half 2013, powered by volume growth.
- North America saw confirmation of the positive momentum in construction and industrial markets, posting 2.2% organic growth over the first half and 6.5% in the second quarter. Interior Solutions reported further double-digit growth, which also reflects the uptrend in sales prices. In contrast, Exterior Products contracted over the first half despite small growth gains in the second quarter. Industrial businesses returned to organic growth, despite Ceramics which was down slightly.
The operating margin narrowed to 11.3% due to a negative mix effect, versus 13.2% in first-half 2013.
- Asia and emerging countries continued to deliver good organic growth at 10.6% against a tougher basis for comparison as from the second quarter of 2013. Asia and Latin America put in satisfactory growth, despite volumes contracting in the second quarter in Brazil. Eastern Europe improved sharply, delivering double-digit growth over the six-month period.
Operating leverage drove a rise in the operating margin, which increased to 8.5% of sales from 7.2% of sales one year earlier.
Analysis of the consolidated financial statements for first-half 2014
The unaudited interim consolidated financial statements were subject to a limited review by the statutory auditors. They were approved and adopted by the Board of Directors on July 30, 2014.
The comparative income statement presented below for first-half 2013 has been restated to reflect the impacts of IFRS 10 "Consolidated Financial Statements", IFRS 11 "Joint Arrangements", and IFRIC 21 "Levies".
H1 2013 % H1 2013
Restated* H1 2014 change Published
EURm (A) (B) (B)/(A)
Sales and ancillary revenue 20,651 20,446 -1.0% 20,771
Operating income 1,224 1,330 8.7% 1,260
Operating depreciation and amortization 715 667 -6.7% 723
EBITDA (op.inc. + operating depr./amort.) 1,939 1,997 3.0% 1,983
Non-operating costs (259) (16) -93.8% (260)
Capital gains and losses on disposals,
asset write-downs, corporate acquisition
fees and earn-out payments (26) (54) 107.7% (26)
Business income 939 1,260 34.2% 974
Net financial expense (400) (354) -11.5% (403)
Income tax (214) (212) -0.9% (231)
Share in net income of equity-accounted
companies 3 (1) -133.3% 7
Income before minority interests 328 693 111.3% 347
Minority interests (15) (22) 46.7% (15)
Net income 313 671 114.4% 332
Earnings per share[2] (in EUR) 0.57 1.19 108.8% 0.61
Recurring[1] net income 402 511 27.1% 422
Recurring[1] earnings per share[2] (in
EUR) 0.73 0.91 24.7% 0.77
Cash flow from operations[3] 1,118 1,198 7.2% 1,146
Cash flow from operations excl. capital
gains tax[4] 1,137 1,162 2.2% 1,165
Capital expenditure 493 449 -8.9% 519
Free cash flow 644 713 10.7% 646
(excluding capital gains tax)[4]
Investments in securities 43 48 11.6% 41
Net debt 9,482 8,519 -10.2% 9,497
* 2013 figures have been restated to reflect the impacts of IFRS 10, IFRS 11 and IFRIC 21.
1 Excluding capital gains and losses on disposals, asset write-downs and material non-recurring provisions.
2 Calculated based on the number of shares outstanding (excluding treasury shares) at June 30 (564,079,733 shares in 2014, including the increase in capital following the payment of the stock dividend on July 4, 2014, versus 548,470,319 in 2013).
3 Excluding material non-recurring provisions.
4 Excluding the tax effect of capital gains and losses on disposals, asset write-downs and material non-recurring provisions.
The comments below refer to the restated financial statements for 2013.
Consolidated sales slipped 1.0%. Despite easing towards the end of the first half, the currency impact had a negative 3.2% impact on sales, due chiefly to the rise in the value of the euro against major Latin American and Scandinavian currencies along with the US dollar. Changes in Group structure had a negative 1.9% impact, resulting mainly from the disposal of VNA as from April 11, and from the sale of certain non-core Exterior Solutions and Building Distribution businesses. Like-for-like (comparable structure and exchange rates), sales were up 4.1%, with prices gaining 1.2% and volumes up 2.9%.
Operating income advanced 8.7% on a reported basis, hampered by the negative currency impact and the disposal of VNA. The operating margin improved to 6.5% of sales compared with 5.9% of sales in first-half 2013, thanks to cost cutting measures (€240 million impact over the first half) and operating leverage.
EBITDA (operating income + operating depreciation and amortization) was up 3.0%. The consolidated EBITDA margin came out at 9.8% of sales (13.8% excluding Building Distribution) versus 9.4% of sales (13.4% excluding Building Distribution) in first-half 2013.
Non-operating costs totaled €16 million, down from €259 million in first-half 2013, following the €202 million write-back from the provision to reflect the reduction in the automotive Flat Glass fine and the decrease in restructuring costs. Non-operating costs include a €45 million accrual to the provision for asbestos-related litigation involving CertainTeed in the US (unchanged from the last few half-year periods).
The net balance of capital gains and losses on disposals, asset write-downs and corporate acquisition fees was a negative €54 million versus a negative €26 million in first-half 2013. This line includes €398 million of capital gains on disposals of assets relating mainly to VNA, and €452 million in asset write-downs. These write-downs relate to ongoing restructuring plans, mainly in Flat Glass in Europe and Pipe in China and Spain. The write-downs also relate to goodwill, mainly in the Building Distribution Business Sector in the US and Spain. Business income was up 34.2% to €1,260 million.
Net financial expense improved, down 11.5% to €354 million from €400 million, reflecting the decrease in average net debt and the fall in the cost of gross debt to 4.5% at June 30, 2014 from 4.7% at June 30, 2013.
The income tax rate on recurring net income remained stable at 32%. Income tax expense totaled €212 million, versus €214 million in the same period one year earlier.
Recurring net income (excluding capital gains and losses, asset write-downs and material non-recurring provisions) rose 27.1% to €511 million.
Net income jumped 114.4% to €671 million.
Capital expenditure totaled €449 million (€493 million in first-half 2013), representing 2.2% of sales (2.4% of sales in first-half 2013).
Cash flow from operations rose 7.2% to €1,198 million. Before the tax impact of capital gains and losses on disposals, asset write-downs and material non-recurring provisions, cash flow from operations rose 2.2% to €1,162 million, while free cash flow (cash flow from operations less capital expenditure) advanced 10.7% to €713 million (3.5% of sales versus 3.1% of sales in first-half 2013).
The difference between EBITDA and capital expenditure increased to €1,548 million, up 7.1% on first-half 2013 (€1,446 million), representing 7.6% of sales (7.0% of sales in first-half 2013).
Operating working capital requirements (WCR) remained at a good level (€4,888 million), representing 43.3 days' sales versus 42.4 days' sales at end-June 2013. Investments in securities totaled just €48 million (€43 million in first-half 2013) and relate to small-scale acquisitions in Building Distribution and High-Performance Materials.
Net debt was down 10.2% year-on-year to €8.5 billion, in line with the decrease recorded at end-2013. Net debt represents 46% of consolidated equity, compared to 52% at June 30, 2013.
The net debt to EBITDA ratio came in at 2.0 versus 2.3 one year earlier.
Update on asbestos claims in the US
Some 2,000 claims were filed against CertainTeed in the first half of 2014 (as in first-half 2013). At the same time, around 3,000 claims were settled (versus 2,000 in first-half 2013) and around 4,000 claims were transferred to inactive dockets, bringing the total number of outstanding claims to around 38,000 at June 30, 2014, compared to 43,000 at December 31, 2013.
A total of USD 65 million in indemnity payments were made in the US in the 12 months to June 30, 2014, versus USD 88 million in the year to December 31, 2013.
2014 action plan priorities and outlook
The Group is maintaining its action plan priorities for the year and will keep a close watch on its cash and financial strength:
- priority focus on increasing sales prices amid a small rise in raw material and energy costs;
- €450 million in additional cost savings (calculated on the 2013 cost base), including €240 million in the first half;
- capital expenditure program of around €1,500 million, the priority being growth capex outside Western Europe (around €550 million);
- renewed commitment to invest in R&D in order to support its differentiated, high value-added strategy;
- selective acquisitions and divestments policy.
The outlook for full-year 2014 is in line with the improving trends first noted in the second half of 2013:
- In Western Europe, our markets should continue to improve gradually, spurred by growth in the UK, while France is expected to remain down.
- In North America, construction should remain upbeat and industrial markets should improve.
- In Asia and emerging countries, our businesses are expected to deliver satisfactory organic growth.
- Lastly, household consumption markets could continue to be affected by competitive pressure on prices.
Saint-Gobain is confirming its objectives for full-year 2014 of a clear improvement in operating income on a comparable structure and currency basis and a continuing high level of free cash flow.
Financial calendar
- Sales for the first nine months of 2014: October 23, 2014, after close of trading on the Paris Bourse.
For further information, please visit http://www.saint-gobain.com
Important disclaimer - forward-looking statements:
This press release contains forward-looking statements with respect to Saint-Gobain's financial condition, results, business, strategy, plans and outlook. Forward-looking statements are generally identified by the use of the words "expect", "anticipate", "believe", "intend", "estimate", "plan" and similar expressions. Although Saint-Gobain believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions as at the time of publishing this document, investors are cautioned that these statements are not guarantees of its future performance. Actual results may differ materially from the forward-looking statements as a result of a number of known and unknown risks, uncertainties and other factors, many of which are difficult to predict and are generally beyond the control of Saint-Gobain, including but not limited to the risks described in Saint-Gobain's registration document available on its website (http://www.saint-gobain.com). Accordingly, readers of this document are cautioned against relying on these forward-looking statements. These forward-looking statements are made as of the date of this document. Saint-Gobain disclaims any intention or obligation to complete, update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
This press release does not constitute any offer to purchase or exchange, nor any solicitation of an offer to sell or exchange securities of Saint-Gobain.
Appendix 1 : Results by business sector and geographic area
H1 2013: restated accounts including IFRS 10 and 11, and IFRIC 21 impact
H1 H1 Change on
I. SALES 2013 2014 an actual
Restated structure
(in EUR m) (in EUR m) basis
By sector and division:
Innovative Materials [1] 4544 4484 -0.0132
Flat Glass 2438 2398 -0.01641
High-Performance Materials 2111 2091 -0.00947
Construction Products [1] 5677 5643 -0.00599
Interior Solutions 2870 2954 0.029268
Exterior Solutions 2835 2719 -0.04092
Building Distribution 9099 9287 0.020662
Packaging (Verallia) 1813 1500 -0.17264
Including VNA 605 314
Internal sales and misc. -482 -468 n.m.
Group Total 20651 20446 -0.00993
[1] including intra-sector eliminations
By geographic area:
France 5892 5948 0.009504
Other Western European countries 8456 8835 0.04482
North America 3068 2641 -0.13918
Emerging countries and Asia 4107 4024 -0.02021
Internal sales -872 -1002 n.m.
Group Total 20651 20446 -0.00993
Change on Change on H1 2013
I. SALES a comparable a comparable
structure structure and Published Impact
basis currency basis
By sector and division:
Innovative Materials [1] -0.01 0.037 4623 -79
Flat Glass -0.005 0.034 2519 -81
High-Performance Materials -0.017 0.04 2111 0
Construction Products [1] 0.006 0.055 5724 -47
Interior Solutions 0.029 0.071 2870 0
Exterior Solutions -0.017 0.039 2882 -47
Building Distribution 0.025 0.036 9099 0
Packaging (Verallia) -0.022 0.017 1813 0
Including VNA 605 0
Internal sales and misc. n.m. n.m. -488 6
Group Total 0.009 0.041 20771 -120
[1] including intra-sector eliminations
By geographic area:
France 0.008 0.008 5919 -27
Other Western European countries 0.046 0.053 8477 -21
North America -0.026 0.022 3078 -10
Emerging countries and Asia -0.012 0.106 4182 -75
Internal sales n.m. n.m. -885 13
Group Total 0.009 0.041 20771 -120
H1 H1 Change on
II. OPERATING INCOME 2013 2014 an actual
Restated structure basis
(in EUR m) (in EUR m)
By sector and division:
Innovative Materials 299 409 0.367893
Flat Glass 27 131 3.851852
High-Performance Materials 272 278 0.022059
Construction Products 481 508 0.056133
Interior Solutions 218 251 0.151376
Exterior Solutions 263 257 -0.02281
Building Distribution 198 265 0.338384
Packaging (Verallia) 240 147 -0.3875
Including VNA 105 45
Misc. 6 1 n.m.
Group Total 1224 1330 0.086601
By geographic area:
France 261 247 -0.05364
Other Western European countries 264 442 0.674242
North America 405 298 -0.2642
Emerging countries and Asia 294 343 0.166667
Group Total 1224 1330 0.086601
H1 H1 H1 2013
II. OPERATING INCOME 2013 2014
(in % of sales) (in % of sales) Published Impact
By sector and division:
Innovative Materials 0.065801 0.091213 312 -13
Flat Glass 0.011075 0.054629 38 -11
High-Performance Materials 0.128849 0.132951 274 -2
Construction Products 0.084728 0.090023 485 -4
Interior Solutions 0.075958 0.08497 218 0
Exterior Solutions 0.092769 0.09452 267 -4
Building Distribution 0.021761 0.028535 215 -17
Packaging (Verallia) 0.132377 0.098 243 -3
Including VNA 105 0
Misc. n.m. n.m. 5 1
Group Total 0.059271 0.065049 1260 -36
By geographic area:
France 0.044297 0.041527 292 -31
Other Western European countries 0.03122 0.050028 264 0
North America 0.132008 0.112836 405 0
Emerging countries and Asia 0.071585 0.085239 299 -5
Group Total 0.059271 0.065049 1260 -36
H1 H1 Change on
III. BUSINESS INCOME 2013 2014 an actual
Restated structure basis
(in EUR m) (in EUR m)
By sector and division:
Innovative Materials 87 359 3.126437
Flat Glass -171 131 1.766082
High-Performance Materials 258 228 -0.11628
Construction Products 507 323 -0.36292
Interior Solutions 193 235 0.217617
Exterior Solutions 314 88 -0.71975
Building Distribution 156 105 -0.32692
Packaging (Verallia) 219 515 1.351598
Including VNA 104 43
Misc. (a) -30 -42 n.m.
Group Total 939 1260 0.341853
By geographic area:
France 173 696 3.023121
Other Western European countries 106 240 1.264151
North America (a) 415 110 -0.73494
Emerging countries and Asia 245 214 -0.12653
Group Total 939 1260 0.341853
(a) after asbestos-related charge (before tax) of EUR45m in H1 2013 and in H1 2014
H1 H1 H1 2013
III. BUSINESS INCOME 2013 2014
(in % of sales) (in % of sales) Published Impact
By sector and division:
Innovative Materials 0.019146 0.080062 98 -11
Flat Glass -0.07014 0.054629 -162 -9
High-Performance Materials 0.122217 0.109039 260 -2
Construction Products 0.089308 0.057239 513 -6
Interior Solutions 0.067247 0.079553 193 0
Exterior Solutions 0.110758 0.032365 320 -6
Building Distribution 0.017145 0.011306 173 -17
Packaging (Verallia) 0.120794 0.343333 221 -2
Including VNA 104 0
Misc. (a) n.m. n.m. -31 1
Group Total 0.04547 0.061626 974 -35
By geographic area:
France 0.029362 0.117014 204 -31
Other Western European countries 0.012535 0.027165 105 1
North America (a) 0.135267 0.041651 416 -1
Emerging countries and Asia 0.059654 0.053181 249 -4
Group Total 0.04547 0.061626 974 -35
(a) after asbestos-related charge (before tax) of EUR45m in H1 2013 and in H1 2014
H1 H1 Change on
IV. CASH FLOW 2013 2014 an actual
Restated structure basis
(in EUR m) (in EUR m)
By sector and division:
Innovative Materials 252 344 0.365079
Flat Glass 22 105 3.772727
High-Performance Materials 230 239 0.03913
Construction Products 298 369 0.238255
Interior Solutions 0
Exterior Solutions -2
Building Distribution 112 199 0.776786
Packaging (Verallia) 213 123 -0.42254
Including VNA 63 27
Misc. (a) 243 163 n.m.
Group Total 1118 1198 0.071556
By geographic area:
France 152 134 -0.11842
Other Western European countries 357 439 0.229692
North America (a) 256 236 -0.07813
Emerging countries and Asia 353 389 0.101983
Group Total 1118 1198 0.071556
(a) after asbestos-related charge (after tax) of EUR27m in H1 2013 and in H1 2014
H1 H1 H1 2013
IV. CASH FLOW 2013 2014
(in % of sales) (in % of sales) Published Impact
By sector and division:
Innovative Materials 0.055458 0.076717 261 -9
Flat Glass 0.009024 0.043786 31 -9
High-Performance Materials 0.108953 0.114299 230 0
Construction Products 0.052493 0.065391 304 -6
Interior Solutions 0
Exterior Solutions -0.00071 -2
Building Distribution 0.012309 0.021428 123 -11
Packaging (Verallia) 0.117485 0.082 215 -2
Including VNA 63 0
Misc. (a) n.m. n.m. 243 0
Group Total 0.054138 0.058593 1146 -28
By geographic area:
France 0.025798 0.022529 180 -28
Other Western European countries 0.042219 0.049689 358 -1
North America (a) 0.083442 0.08936 256 0
Emerging countries and Asia 0.085951 0.09667 352 1
Group Total 0.054138 0.058593 1146 -28
(a) after asbestos-related charge (after tax) of EUR27m in H1 2013 and in H1 2014
H1 H1 Change on
V. CAPITAL EXPENDITURE 2013 2014 an actual
Restated structure basis
(in EUR m) (in EUR m)
By sector and division:
Innovative Materials 169 129 -0.23669
Flat Glass 89 75 -0.1573
High-Performance Materials 80 54 -0.325
Construction Products 130 150 0.153846
Interior Solutions 81 79 -0.02469
Exterior Solutions 49 71 0.44898
Building Distribution 68 76 0.117647
Packaging (Verallia) 110 86 -0.21818
Including VNA 43 19
Misc. 16 8 n.m.
Group Total 493 449 -0.08925
By geographic area:
France 70 80 0.142857
Other Western European countries 127 139 0.094488
North America 113 83 -0.26549
Emerging countries and Asia 183 147 -0.19672
Group Total 493 449 -0.08925
H1 H1 H1 2013
V. CAPITAL EXPENDITURE 2013 2014
(in % of sales) (in % of sales) Published Impact
By sector and division:
Innovative Materials 0.037192 0.028769 193 -24
Flat Glass 0.036505 0.031276 113 -24
High-Performance Materials 0.037897 0.025825 80 0
Construction Products 0.022899 0.026582 132 -2
Interior Solutions 0.028223 0.026743 81 0
Exterior Solutions 0.017284 0.026113 51 -2
Building Distribution 0.007473 0.008183 68 0
Packaging (Verallia) 0.060673 0.057333 110 0
Including VNA 43 0
Misc. n.m. n.m. 16 0
Group Total 0.023873 0.02196 519 -26
By geographic area:
France 0.011881 0.01345 71 -1
Other Western European countries 0.015019 0.015733 127 0
North America 0.036832 0.031427 113 0
Emerging countries and Asia 0.044558 0.036531 208 -25
Group Total 0.023873 0.02196 519 -26
VI. EBITDA H1 H1 Change on
2013 2014 an actual
Restated structure basis
(in EUR m) (in EUR m)
By sector and division:
Innovative Materials 534 626 0.172285
Flat Glass 185 274 0.481081
High-Performance Materials 349 352 0.008596
Construction Products 726 732 0.008264
Interior Solutions 376 403 0.071809
Exterior Solutions 350 329 -0.06
Building Distribution 330 394 0.193939
Packaging (Verallia) 328 230 -0.29878
Including VNA 105 45
Misc. 21 15 n.m.
Group Total 1939 1997 0.029912
By geographic area:
France 439 419 -0.04556
Other Western European countries 514 674 0.311284
North America 483 372 -0.22981
Emerging countries and Asia 503 532 0.057654
Group Total 1939 1997 0.029912
VI. EBITDA H1 H1 H1 2013
2013 2014
(in % of sales) (in % of sales) Published Impact
By sector and division:
Innovative Materials 0.117518 0.139607 552 -18
Flat Glass 0.075882 0.114262 202 -17
High-Performance Materials 0.165324 0.168341 350 -1
Construction Products 0.127884 0.129718 732 -6
Interior Solutions 0.13101 0.136425 376 0
Exterior Solutions 0.123457 0.121 356 -6
Building Distribution 0.036268 0.042425 347 -17
Packaging (Verallia) 0.180916 0.153333 331 -3
Including VNA 105 0
Misc. n.m. n.m. 21 0
Group Total 0.093894 0.097672 1983 -44
By geographic area:
France 0.074508 0.070444 473 -34
Other Western European countries 0.060785 0.076287 515 -1
North America 0.157432 0.140856 483 0
Emerging countries and Asia 0.122474 0.132207 512 -9
Group Total 0.093894 0.097672 1983 -44
Appendix 3: Consolidated balance sheet
2013 restated accounts including IFRS 10 and 11, and IFRIC 21 impact
Dec 31, Dec 31,
2013 2013
(in EUR million) June 30, 2014 Restated Published Impact
ASSETS
Goodwill 10,276 10,401 10,413 (12)
Other intangible assets 3,161 3,128 3,131 (3)
Property, plant and equipment 12,304 12,438 12,635 (197)
Investments in associates 398 384 216 168
Deferred tax assets 1,192 1,125 1,125 0
Other non-current assets 527 454 407 47
Non-current assets 27,858 27,930 27,927 3
Inventories 6,455 5,953 5,997 (44)
Trade accounts receivable 5,991 4,857 4,882 (25)
Current tax receivable 151 236 238 (2)
Other accounts receivable 1,394 1,315 1,317 (2)
Assets held for sale - Discontinued operations 0 974 974 0
Cash and cash equivalents 3,262 4,350 4,391 (41)
Current assets 17,253 17,685 17,799 (114)
Total assets 45,111 45,615 45,726 (111)
Liabilities and Shareholders' equity
Capital stock 2,271 2,221 2,221 0
Additional paid-in capital and legal reserve 6,623 6,265 6,265 0
Retained earnings and net income for the year 10,577 10,677 10,661 16
Cumulative translation adjustments (1,260) (1,481) (1,481) 0
Fair value reserves (46) 7 7 0
Treasury stock (147) (147) (147) 0
Shareholders' equity 18,018 17,542 17,526 16
Minority interests 374 345 344 1
Total equity 18,392 17,887 17,870 17
Long-term debt 9,666 9,362 9,395 (33)
Provisions for pensions and other employee benefits 2,990 2,783 2,785 (2)
Deferred tax liabilities 657 715 712 3
Provisions for other liabilities and charges 1,160 2,185 2,189 (4)
Non-current liabilities 14,473 15,045 15,081 (36)
Current portion of long-term debt 1,143 1,707 1,721 (14)
Current portion of provisions for other
liabilities and charges 451 477 479 (2)
Trade accounts payable 5,878 5,897 5,928 (31)
Current tax liabilities 87 66 67 (1)
Other accounts payable 3,715 3,269 3,311 (42)
Liabilities held for sale - Discontinued operations 0 473 473 0
Short-term debt and bank overdrafts 972 794 796 (2)
Current liabilities 12,246 12,683 12,775 (92)
Total equity and liabilities 45,111 45,615 45,726 (111)
Appendix 4: Consolidated cash flow statement
2013 restated accounts including IFRS 10 and 11, and IFRIC 21 impact
H1 2013
(in EUR million) Restated H1 2014
Net income attributable to equity holders of the parent 313 671
Minority interests in net income 15 22
Share in net income of associates, net of dividends received (3) (11)
Depreciation, amortization and impairment of assets 824 1,119
Gains and losses on disposals of assets (85) (399)
Unrealized gains and losses arising from changes in fair value and
share-based payments 10 (17)
Changes in inventories (380) (475)
Changes in trade accounts receivable and payable, and other
accounts receivable and payable (1,160) (1,199)
Changes in tax receivable and payable 15 34
Changes in deferred taxes and provisions for other liabilities and
charges (37) (1,129)
Net cash from operating activities (488) (1,384)
Purchases of property, plant and equipment [ H1-2013: (493),
H1-2014: (449) ] and intangible assets (528) (499)
Acquisitions of property, plant and equipment in finance leases (9) (5)
Increase (decrease) in amounts due to suppliers of fixed assets (175) (140)
Acquisitions of shares in consolidated companies [ H1-2013: (27),
H1-2014:(29) ], net of debt acquired (42) (89)
Acquisitions of other investments (16) (19)
Increase in investment-related liabilities 10 1
Decrease in investment-related liabilities (2) (1)
Investments (762) (752)
Disposals of property, plant and equipment and intangible assets 38 35
Disposals of shares in consolidated companies, net of net debt
divested 141 999
Disposals of other investments and other divestments 0 0
Divestments 179 1,034
Increase in loans and deposits (39) (57)
Decrease in loans and deposits 17 34
Net cash used in investing activities / divestments (605) 259
Issues of capital stock 582 408
Minority interests' share in capital increases of subsidiaries 3 8
Increase (decrease) in investment-related liabilities (put on
minority interests) 0 0
Disposals of minority interests without loss of control 12 0
(Increase) decrease in treasury stock 11 0
Dividends paid (654) (685)
Increase (decrease) in dividends payable 179 441
Dividends paid to minority shareholders of consolidated
subsidiaries (55) (35)
Net Cash from (used in) financing activities 78 137
Increase (decrease) in net debt (1,015) (988)
Net effect of exchange rate changes on net debt 46 (5)
Net effect from changes in fair value on net debt (25) (13)
Net debt at beginning of period (8,488) (7,513)
Net debt at end of period (9,482) (8,519)
H1 2013
(in EUR million) Published Impact
Net income attributable to equity holders of the parent 332 (19)
Minority interests in net income 15 0
Share in net income of associates, net of dividends received (2) (1)
Depreciation, amortization and impairment of assets 832 (8)
Gains and losses on disposals of assets (85) 0
Unrealized gains and losses arising from changes in fair value and
share-based payments 10 0
Changes in inventories (387) 7
Changes in trade accounts receivable and payable, and other
accounts receivable and payable (1,198) 38
Changes in tax receivable and payable 17 (2)
Changes in deferred taxes and provisions for other liabilities and
charges (25) (12)
Net cash from operating activities (491) 3
Purchases of property, plant and equipment [ H1-2013: (493),
H1-2014: (449) ] and intangible assets (555) 27
Acquisitions of property, plant and equipment in finance leases (9) 0
Increase (decrease) in amounts due to suppliers of fixed assets (177) 2
Acquisitions of shares in consolidated companies [ H1-2013: (27),
H1-2014:(29) ], net of debt acquired (24) (18)
Acquisitions of other investments (16) 0
Increase in investment-related liabilities 10 0
Decrease in investment-related liabilities (2) 0
Investments (773) 11
Disposals of property, plant and equipment and intangible assets 39 (1)
Disposals of shares in consolidated companies, net of net debt
divested 141 0
Disposals of other investments and other divestments 0 0
Divestments 180 (1)
Increase in loans and deposits (39) 0
Decrease in loans and deposits 17 0
Net cash used in investing activities / divestments (615) 10
Issues of capital stock 582 0
Minority interests' share in capital increases of subsidiaries 3 0
Increase (decrease) in investment-related liabilities (put on
minority interests) 0 0
Disposals of minority interests without loss of control 12 0
(Increase) decrease in treasury stock 11 0
Dividends paid (654) 0
Increase (decrease) in dividends payable 179 0
Dividends paid to minority shareholders of consolidated
subsidiaries (55) 0
Net Cash from (used in) financing activities 78 0
Increase (decrease) in net debt (1,028) 13
Net effect of exchange rate changes on net debt 46 0
Net effect from changes in fair value on net debt (25) 0
Net debt at beginning of period (8,490) 2
Net debt at end of period (9,497) 15
Analyst/Investor relations
Gaetano Terrasini, +33-1-47-62-32-52
Vivien Dardel, +33-1-47-62-44-29
Marine Huet, +33-1-47-62-30-93
Press relations
Sophie Chevallon, +33-1-47-62-30-48
Susanne Trabitzsch, +33-1-47-62-43-25
SOURCE Saint-Gobain
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