EXACOMPTA CLAIREFONTAINE (EPA:EXAC) - Financial statement - 30 june 2019

Transparency directive : regulatory news

17/09/2019 18:00

Dear Shareholders,

At its 12 September 2019 meeting in Paris, the EXACOMPTA CLAIREFONTAINE Board
of Directors, chaired by Mr François Nusse, reviewed and approved the Group
financial statements for the six months ended 30 June 2019.

- Consolidated results

(EUR000)                             H1 2019   H1 2018
Income from continuing activities
(Revenue)                            307,877   296,381
Operating income                       3,955     4,828
Net income before tax                  3,880     4,796
Net income after tax                   3,219     4,337
Group share                            3,219     4,337

The Group consolidated results are presented at constant consolidation scope.
They do not include the results of Eurowrap, Biella and their subsidiaries
acquired in spring 2019, given that these companies could not provide directly
exploitable financial statements for first half 2019. However, the costs of
these acquisitions (EUR1.2 million) are included in the Group consolidated
results.

Regarding the transition to IFRS 16, the Group has applied the simplified
retrospective approach which does not require restatement of the prior period
financial statements for comparative purposes. IFRS 16, which came into force
on 1 January 2019, has changed the Group's financial indicators via a EUR4.9
million increase in EBITDA, offset by an additional depreciation charge and
interest expense. Application of the standard had no material impact on first
half 2019 net income.

- Segment information

(EUR000)            Paper   Processing  Inter-segment  Total
                                        transactions

Revenue            149,588   226,587      (68,298)    307,877
Operating income/
(loss)              7,225    (3,147)       (123)       3,955

(EUR000)    France   Europe   Outside Europe  Total
Revenue    189,473   102,555      15,849     307,877

Paper

Sales of printing and writing papers in Western Europe fell 6% (Eurograph
statistics).
For Exacompta Clairefontaine, the period was marked by low demand for paper
made from new fibres and stronger demand for recycled fibre paper. Production
at our four paper mills remained stable at 125,000 tonnes of paper reel. Pulp
prices hovered around the same average as in first half 2018 and are trending
downwards. Meanwhile, energy prices are rising sharply.

Processing

According to GfK market research consultants, first half sales of manufactured
papers and filing articles in France fell 3.1% and 5.3% respectively
year-on-year.
At Exacompta Clairefontaine, stationery sales by volume held up overall despite
the uncertainty affecting some retailers. Margins reduced in some product
ranges.

The Group has begun to develop synergies with Eurowrap, Biella and their
subsidiaries, which are expected to kick in from 2020.

- Group financial results

As at 30 June 2019, with revenue of EUR307,877,000, Group gross borrowings
amounted to EUR243,956,000 and shareholders' equity totalled EUR402,849,000.

The Group has negotiated several lines of credit with its banks.
Outstanding commercial paper issued by the Group amounted to EUR80 million at
30 June 2019, out of a global programme of EUR125 million.
With gross cash and cash equivalents of EUR93,765,000 at 30 June 2019, Group
net borrowings amounted to EUR150,191,000.

The increase in debt is mainly due to two factors:
* The establishment of prefinancing arrangements for the Eurowrap and Biella
  group acquisitions in the form of commercial paper (EUR64 million).
* Application of IFRS 16, which led to all Group lease agreements being
  recognised on the consolidated balance sheet. This gave rise to a EUR36
  million financial liability as at 30 June 2019.

- Outlook

Over the year as a whole, paper margins are expected to increase while
processing margins continue to decline. At constant consolidation scope,
operating income for the year is expected to be close to last year's figure
(EUR14,922,000).
The consolidated financial statements for the year ended 31 December 2019 will
include the results of the Group's latest acquisitions.

THE BOARD OF DIRECTORS

Head of Financial Reporting
Jean-Marie Nusse - Executive Vice President

F 88480 ETIVAL-CLAIREFONTAINE - TEL. +33 (0)3 29 42 42 42 -
FAX +33 (0)3 29 42 42 00
SA WITH CAPITAL OF EUR4,525,920 - SIRET: 505 780 296 000 16 - NAF: 7010Z -
RCS EPINAL: B 505 780 296
WEBSITE WWW.EXACOMPTACLAIREFONTAINE.FR - EMAIL ACTIONNAIRE@CLAIREFONTAINE.COM

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EXACOMPTA CLAIREFONTAINE (EPA:EXAC) - Financial statement - 30 june 2019

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