EXACOMPTA CLAIREFONTAINE (EPA:EXAC) - Financial statements - 31 december 2019

Transparency directive : regulatory news

30/03/2020 18:00

EXACOMPTA CLAIREFONTAINE

Dear Shareholders,

At its 26 March 2020 meeting in Paris, the EXACOMPTA CLAIREFONTAINE Board of
Directors, chaired by Mr François Nusse, reviewed and approved the Company and
Group financial statements for the financial year ended 31 December 2019.

* Consolidated results

(EUR000)                                     2019           2018

Income from continuing activities
(Revenue)                                  703,436        603,099
Operating income                            19,828         14,922
Net income before tax                       22,571         14,924
Net income after tax                        17,067         12,480
Minority interests                            0              0
Group share                                 17,067         12,480

The Group consolidated financial statements include Eurowrap and Biella, two
companies acquired in 2019, for 9 and 6 months of operation respectively. 2019
net income includes a EUR5,024,000 badwill gain on first-time consolidation and
a EUR708,000 goodwill impairment charge. The total impact of these items was a
EUR4,316,000 increase.

The application of IFRS 16 leading to the capitalisation of leases had no
material impact on net income but affected the Group's financial indicators.
The most noteworthy effects are a EUR10,400,000 increase in EBITDA, offsetting
additional depreciation charges and interest expense, and an increase in Group
debt.

* Segment information

                                              Inter-segment
(EUR000)        Paper        Processing        transactions        Total

Revenue        285,754        540,945           (123,263)        703,436
Operating
income          11,068          8,712              48             19,828

(EUR000)        France        Europe         Outside Europe        Total
Revenue        398,479        276,723             28,234         703,436

Paper

In 2019, deliveries of uncoated printing and writing papers from European
plants to Western Europe fell 6% (source: CEPI). Exacompta paper sales
increased 2.5% to 224,225 tonnes.
The decrease in pulp prices during the second half of 2019 was largely offset
by the increase in energy costs. There was strong demand for recycled paper and
high-end specialised products. Capital expenditure in the paper division
amounted to EUR15 million and was mainly invested in production lines.

Processing

The French stationery market posted an average decline of 1.4% for manufactured
papers and 4.8% for filing articles (source: GFK). The prices of our products
did not sufficiently reflect rising raw material costs. Our own sales were
largely maintained thanks to our adaptation to changes in distribution,
geographical expansion and the broadening of our product ranges. From this
perspective, the prospects for development and synergy that led us to purchase
Eurowrap and Biella are confirmed. Capital expenditure in the processing
division totalled EUR21 million.

* Outlook

The persistent demand for our products and margins generated over the first few
weeks of 2020 led us to forecast earnings growth for this year.
However, the new situation created by the current Covid-19 epidemic has
disrupted our economic forecasts. At the time of writing, all units are
continuing operations so as to meet customer requirements and safeguard our
employees' jobs. We are taking all possible precautions to protect their
health.

* Group financial results

The Group posted 2019 revenue of EUR703,436,000. At 31 December 2019, gross
borrowings stood at EUR258,895,000 and shareholders' equity totalled
EUR419,348,000.

The Group has negotiated several lines of credit with its banks.
At the balance sheet date, outstanding commercial paper issued by the Group
amounted to EUR30 million out of a global programme of EUR125 million.
With gross cash and cash equivalents of EUR179,250,000 at 31 December 2019,
Group net borrowings amounted to EUR79,645,000. Application of IFRS 16 led to
the recognition of a EUR36,843,000 financial liability.

The 2019 financial statements have been audited and the certification reports
are currently being prepared.

                                ***************

- The Board is calling an Ordinary General Meeting to be held on 27 May 2020,
   at which it will recommend a dividend of EUR3 per share.
- The next release will be made after the Board meeting called to approve the
   first half 2020 financial statements, scheduled for 10 September 2020.

                               ***************
                                                      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 statements - 31 december 2019

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