Gascogne · EURONEXT:ALBI
Gascogne — H1 2008 Earnings Presentation
29 slides from Gascogne's earnings presentation, Jul 29, 2008
Slide 1: First-half 2008 results
First- First-half 2008 results 29 July 2008 information meeting www.groupe- www.groupe-gascogne.com 1
Slide 2: Highlights
Highlights First half 2008 WG Gascogne
Slide 3: First-half 2008 highlights
First- First-half 2008 highlights Economic situation: difficult and uncertain Global slowdown Limited growth in France Ongoing weakness in consumer spending Faster increases in raw materials costs Unfavourable euro/dollar exchange rate 3
Slide 4: Key indicators
Key indicators Economic indicators 2002 2003 2004 2005 2006 2007 H1 07 H1 08 Selling prices* 97 94 89 86 89 93 92 97 Euro/dollar $1.07 $1.13 $1.25 $1.25 $1.26 $1.38 $1.33 $1.53 Brent crude $24.9 $28.9 $38.2 $54.5 $65.1 $72.4 $68.2 $109.2 Paper 101 98 91 89 92 96 95 101 Plastic materials* 87 89 106 1
Slide 5: First-half 2008 highlights
First- First-half 2008 highlights Improved operating performance offsetting a serious deterioration in external factors Stable sales Higher selling prices across all divisions Improved margins Further cost reductions Positive underlying operating profit in all divisions 5
Slide 6: First-half 2008 highlights
First- First-half 2008 highlights Responsive financial management Improvement in the operating WCR Firm grip on capex Higher free cash flow Reduction in net debt Improved gearing 6
Slide 7: First-half 2008 highlights
First- First-half 2008 highlights Innovation and developments: Wood: investments in the project to make wooden structural panels for houses Paper: development of barrier products Sacks: development of single- single-layer sacks Laminates: high- high-value- value-added products Distribution: initiati
Slide 8: Figures
Figures for the first half of 2008 8
Slide 9: First-half figures: Consolidated sales
First- First-half figures Consolidated sales +0.3% 324.9 325.9 Paper Wood €45.3m €56.8m Sacks €60.8m Distribution €70.8m Laminates €92.2m H1 07 H1 08 Consolidated sales (€ m) Consolidated sales by division (€ m) 9
Slide 10: First-half figures: Sales
First- First-half figures Sales Heavy industry Africa/Middle Asia 17.6% East 3.7% 1.3% Distribution Americas 21.7% 2.8% Central and Eastern Europe 2.0% Western France Europe (ex 59.1% France) 31.1% Processing 60.7% Sales by type of industry (€ m) Consolidated sales by geographical zone (€ m) 10
Slide 11: First-half figures: Underlying operating profit
First- First-half figures Underlying operating profit +54% 8.3 5.4 H1 07 H1 08 Consolidated underlying operating profit (€ (€ m) 11
Slide 12: First-half figures: Underlying operating profit
First- First-half figures Underlying operating profit €m H1 07 H1 08 Change Sales 324.9 325.9 +0.3% Underlying operating profit 5.4 8.3 +53.7% Breakdown of change Impact in € m Price / Mix +10.0 Dollar -1.5 Energy / raw materials -9.1 Volume / Costs +0.8 Provisions/depreciation -0.8 Sub- Sub-total -
Slide 13: First-half figures: Net profit
First- First-half figures Net profit €m H1 07 H1 08 Change Underlying operating profit 5.4 8.3 +53.7% Other operating income and expenses 0.6 0.1 NM Operating profit 6.0 8.4 +40.0% Net financial items (3.7) (4.1) +10.8% Tax (0.5) (0.9) NM Net profit 1.8 3.4 +88.9% 13
Slide 14: First-half figures: Financial position
First- First-half figures Financial position €m H1 07 H1 08 Change Operating WCR 135.0 128.0 -5.2% Capital expenditure 10.3 8.4 -18.4% Free cash flow 6.1 15.2 x2.3 Shareholders' equity 176.0 184.9 +5.1% Net debt 122.8 119.6 -2.6% Gearing (%) 69.7 64.7 -7.2% * Cyclical increase in inventories (€16.4m
Slide 15: Firm grip on CTO, operating WCR and capex
First- First-half figures Firm grip on CTO, operating WCR and capex +3% -5% -18% 135.0 10.3 42.4 43.8 128.0 8.4 H1 07 H1 08 H1 07 H1 08 H1 07 H1 08 CTO (cost take out), Operating WCR (€ (€ m) Capital expenditure (€ (€ m) base 2002 (€ (€ m) 15
Slide 16: Improvements in debt, equity, gearing and NAV/share
First- First-half figures Improvements in debt, shareholders' equity, gearing and NAV/share -2.6% +5% -7% +4% 184.9 122.8 119.6 69.7 176.0 64.7 89 € 93 € 115.6 H1 07 H1 08 H1 07 H1 08 H1 07 H1 08 H1 07 H1 08 Debt (€ (€ m) Shareholders' equity Gearing (%) NAV per share (€ m) Dividend: €4m 16
Slide 17: First-half 2008 business overview
First- First-half 2008 business overview 17
Slide 18: First-half 2008 Wood
First- First-half 2008 Wood Consolidated sales -2.8% Stable or falling markets Forestiè Forestière de Gascogne: strong sales growth 58.4 56.8 Higher industrial wood sales Launch of Gascogne Wood Products Decoration: Selective commercial policy and range focused on high- high-value- value-added produ
Slide 19: First-half 2008 Wood
First- First-half 2008 Wood Underlying operating profit 29 June fire affecting part of the St Symphorien site: no impact on earnings Underlying operating profit: €4.3m -€0.2m Increases in raw materials costs (€ (€1m) and depreciation (€ (€1m) 4.5 4.3 offset by Improved margins Lower production costs
Slide 20: First-half 2008 Paper
First- First-half 2008 Paper Consolidated sales Slight contraction in markets Sales: +13.1% (+5.4% (+5.4% excluding scheduled +13.1% stoppage in 2007) Higher selling prices: +6% 45.3 Dollar impact: –1% 40.0 H1 07 H1 08 Sales (€ m) 20
Slide 21: First-half 2008 Paper
First- First-half 2008 Paper Underlying operating profit Underlying operating profit up €3.2m • No production stoppage • Further increase in selling prices • Improvement in the product mix +€3.2m Despite: • Higher costs (raw materials and energy): €2m 0.4 • Adverse dollar impact (- (-€0.5m) H1 07 H1
Slide 22: First-half 2008 Sacks
First- First-half 2008 Sacks Consolidated sales +1.1% Sales: +1.1% Stable volumes despite a weak operating 60.2 60.8 environment Moderate growth in selling prices Firm performance in industrial sacks Growth in consumer sacks (excluding pinch sacks) H1 07 H1 08 Sales (€ m) 22
Slide 23: First-half 2008 Sacks
First- First-half 2008 Sacks Underlying operating profit Underlying operating profit down €0.8m Further increase in raw materials costs (-€3m), partly offset by higher selling prices -€0.8m 2.0 1.2 Cost increases yet to be passed on to customers H1 07 H1 08 Underlying operating profit (€ m) 23
Slide 24: First-half 2008 Laminates
First- First-half 2008 Laminates Consolidated sales -0.7% Uncertain and patchy operating environment Sales –0.7% 92.9 92.2 Adverse dollar impact (- (-€1m) Termination of subcontracting (- (-€0.8m) Further price rises Withdrawal from dollar zone H1 07 H1 08 Sales (€ m) 24
Slide 25: First-half 2008 Laminates
First- First-half 2008 Laminates Underlying operating profit Underlying operating profit positive again at €0.2m Improvement in the Dax site's operating efficiency Confirmed recovery at the Swiss subsidiary +€0.6m Strong performance at the German subsidiary Disappointing results at the Givet site 0.
Slide 26: First-half 2008 Distribution
First- First-half 2008 Distribution Consolidated sales -3.6% Difficult commercial conditions Sales down 3.6% 73.4 70.8 Reorganisation of travelling sales force Initiation of distance selling Launch of e- e-commerce site Wider margins H1 07 H1 08 Sales (€ m) 26
Slide 27: First-half 2008 Distribution
First- First-half 2008 Distribution Underlying operating profit Underlying operating profit stable at €1.8m Despite Higher purchasing costs Lower sales 1.8 1.8 Uptrend in margins H1 07 H1 08 Underlying operating profit (€ m) 27
Slide 28: Outlook
2008 Outlook 28
Slide 29: Outlook
Outlook Uncertainty about economic developments Ongoing efforts to pass higher raw materials costs on to customers, made possible by firm demand Further initiatives to improve operational performance Developments in the project to develop wooden structural panels for houses and preparations for Pape