PARIS--(BUSINESS WIRE)--Regulatory News:
The Board of Directors of Teleperformance (Paris:RCF), the global leader in outsourced multichannel customer experience management, met today and reviewed the consolidated and parent company financial statements for the year ended December 31, 2015. The Group also announced its financial results for the year.
GROWTH IN RESULTS AND MARGINS IN 2015
-
Revenue: €3,398 million
up + 23.2% as reported
up + 7.5% like-for-like*
- EBITA before non-recurring items: €351 million
- EBITA margin before non-recurring items: 10.3% versus 9.7% in 2014
- Diluted earnings per share: €3.45, up + 31.7% on 2014
- Dividend per share: €1.20**, up + 30.0% on 2014
- Net free cash flow: €219 million
SIGNIFICANT STRENGTHENING OF THE GROUP'S GLOBAL MARKET LEADERSHIP
- Unique global presence in 65 countries
- Continued expansion of the Group's worldwide footprint with the addition of 12,000 new workstations, notably in the United States and Asia.
GOVERNANCE
- Continuation of the same governance structure, with Daniel Julien, Chairman of the Board of Directors with executive functions, and Paulo César Salles Vasques, Chief Executive Officer.
- Appointment** of three women to the Board of Directors to replace three outgoing members, lifting the percentage of women on the Board to more than 40%.
2016 OBJECTIVES: CONTINUED PROFITABLE GROWTH
- Like-for-like revenue growth of between 5% and 7%.
- EBITA margin before non-recurring items of at least 10.3%.
- Strong cash flow generation.
*at constant exchange rates and scope of consolidation
**submitted
to shareholder approval at the annual general meeting on April 28, 2016
***by
decision of the Board of Directors at its meeting of February 24, 2016
2015 FINANCIAL HIGHLIGHTS
€ millions | 2015 | 2014 | % change | |||
€1=US$1.11 | €1 = US$1.33 | |||||
Revenue | 3,398 | 2,758 | + 23.2% | |||
Like-for-like growth | + 7.5% | |||||
EBITDA before non-recurring items | 492 | 376 | + 31.0% | |||
% of revenue | 14.5% | 13.6% | ||||
EBITA before non-recurring items(1) | 351 | 267 | + 31.6% | |||
% of revenue | 10.3% | 9.7% | ||||
Operating profit | 308 | 237 | + 30.0% | |||
Net profit – Group share | 200 | 150 | + 33.3% | |||
Diluted earnings per share (€) | 3.45 | 2.62 | + 31.7% | |||
Dividend per share (€) | 1.20 | 0.92 | ||||
Net free cash flow | 219 | 48 | > x 4 |
(1) Operating profit before amortization of
acquisition-related intangibles, loss of goodwill value and excluding
non-recurring items.
*submitted to shareholder approval at the
annual general meeting on April 28, 2016
Paulo César Vasques, Chief Executive Officer of Teleperformance, said: “Despite the many challenges Teleperformance faced in 2015, notably geo-political instabilities and cybersecurity concerns, we were able to not only outperform the market once again, but also significantly strengthen our number one global industry leadership position. So I am particularly pleased to report we delivered another record year with 7.5% organic revenue growth on a like-for-like basis and all regions growing at a good pace, not only in the Americas and in Asia, but also in Europe with the recovery trend confirmed in France this year, plus an 60-basis point improvement in the EBITA margin. We also delivered a strong increase in our free cash flow.
These tangible results show the effectiveness of our development strategy based on people, innovation, discipline and expertise, which are clear differentiators for us. We continued to expand our footprint so that we now physically operate in 65 countries and serve the world’s very top brands in over 160 markets. In 2016, we intend to step up the consolidation of this industry leadership position and are targeting like-for-like growth of between 5% and 7% per year with a margin of at least 10.3%. We begin 2016 in an enviable position with a strong management team. I am especially happy Daniel Julien and I are going to continue our dynamic collaboration because it makes our Group stronger and Teleperformance’s future that much brighter.”
“To say 2015 was tougher than normal from a business conditions perspective would be a big understatement”, said Daniel Julien, Executive Chairman of Teleperformance. “But Teleperformance once again reached its objectives and I would like to thank and congratulate Paulo César and our entire Teleperformance family for this accomplishment in a very hard year. 2015 was also a critical preparatory year for us as the world transitioned full-steam-ahead toward a new age economy. This digital dawn, requiring integrated omnichannel expertise, and ever more stringent security standards are an advantage for Teleperformance because new and formidable barriers to entry are emerging.”
“From a corporate management perspective, our Board will become younger and more feminized and Paulo César and I will continue our great voyage together as decided by the Board as of today. We are maintaining our successful governance structure, and in view of our solid market dynamics, we can be confident in the Group’s long-term outlook. We are targeting €5 billion in revenues in 2020, fueled by commercial wins and highly-selective acquisitions and alliances in view of the persistent market fragmentation.” he added.
CONSOLIDATED REVENUE
Consolidated revenue stood at €3,398 million for 2015, a year-on-year increase of + 7.5% at constant exchange rates and scope of consolidation (like-for-like).
On a reported basis, growth amounted to + 23.2%, lifted by the €217 million positive contribution from the consolidation of Aegis USA Inc. since August 7, 2014 and City Park Technologies (CPT) since July 1, 2014. Reported growth also reflects a €201 million positive currency effect arising from the increase in the US dollar, pound sterling and certain other currencies against the euro.
REVENUE BY REGION
The geographic mix remains robust and balanced across all regions.
In 2015, the English-speaking market & Asia-Pacific region accounted for 50% of consolidated revenue, Ibero-LATAM 24% and Continental Europe & MEA 26%.
The pace of growth was sustained in all regions during the period, outpacing the global outsourcing market (growth of + 4% a year according to IDC in 2015).
ANNUAL REVENUE BY REGION
€ millions | 2015 | 2014 | % change | |||||
Reported |
Like-for-like | |||||||
English-speaking market & Asia-Pacific | 1,688 | 1,209 | + 39.6% | + 4.4% | ||||
Ibero-LATAM | 834 | 770 | + 8.4% | + 7.8% | ||||
Continental Europe & MEA | 876 | 779 | + 12.4% | + 12.8% | ||||
TOTAL | 3,398 | 2,758 | + 23.2% | + 7.5% |
- English-speaking market & Asia-Pacific
Revenue in the English-speaking market & Asia-Pacific region rose by + 4.4% like-for-like and by + 39.6% as reported, led mainly by the acquisition in the United States and a positive currency effect.
Business growth in the United States continued to be driven chiefly by the gradual ramp-up of major domestic contracts signed in the healthcare, financial services, insurance, and hospitality and leisure sectors. The Group also saw a sharp increase in business with existing clients in the consumer electronics sector.
Growth was dampened, however, by a temporary reduction in business volume with a client in the telecommunications industry for certain product lines due to an incident involving data security. This sector, which includes pay-TV, only accounted for 26% of the region's revenue stream compared with 30% in 2014.
In the United Kingdom, revenue was lifted by stronger business in the second half of the year, which bodes well for the coming quarters.
In the Asia-Pacific region, the pace of growth remained strong in China, where Teleperformance provides solutions on behalf of locally based North American multinationals, thanks to a good consumer environment, particularly in consumer electronics. The Group is continuing to broaden its footprint in China with the opening of a new site in the southern part of the country.
- Ibero-LATAM
Revenue in the Ibero-LATAM region rose by a strong + 7.8% like-for-like and by + 8.4% as reported. The difference is primarily attributable to a generally favorable currency effect stemming from the US dollar's rise against the euro, which offset the decline of currencies like the Brazilian real.
Despite a still challenging economic environment, activities in Brazil remained dynamic, particularly in the second half of the year. Teleperformance continued to win new contracts with existing premium clients in the financial services, Internet and retail industries, notably through recently opened sites in the northern part of the country.
Operations in Portugal continued to deliver satisfactory growth, still powered by the success of the Lisbon-based multilingual platforms serving major multinationals
Good performances in Argentina and Colombia offset lower activity in telecommunications sector activities in Mexico.
- Continental Europe & MEA
Regional revenue rose by + 12.8% like-for-like and by + 12.4% as reported.
The Group continues to post solid business gains with global clients in a number of markets in Northern, Southern and Eastern Europe (Russia, Poland and Romania). Growth gained momentum in Northern Europe in the second half, reflecting strong performances in e-commerce and consumer electronics.
In this buoyant environment, the Group opened new sites, most of them offshore, in Dubai, Egypt, Suriname and Lithuania (serving the Scandinavian and Russian market for the latter).
Thanks to healthy growth in offshore business in Morocco and Tunisia in the second half, and renewed expansion in the domestic market, revenue from the French-speaking market returned to growth during the year. Action plans aimed primarily at restoring profitability in France helped reduce losses, in line with the Group's targets.
Germany and, to a lesser extent, the Nordic countries, remain highly competitive markets where developing the Group's solutions profitably is more challenging.
The rapid expansion of subsidiary TLScontact, which provides visa application management services for governments, continued to have a very positive impact on the region's growth, spurred by a still high volume of visa applications from China and North Africa for travel to the Schengen area.
RESULTS
EBITDA before non-recurring items amounted to €492 million, up + 31.0% year-on-year and representing 14.5% of revenue, a further + 0.9-point improvement on 2014.
EBITA before non-recurring items rose by + 31.6% to €351 million from €267 million in 2014, while EBITA margin before non-recurring items widened by +0.6 point to 10.3% from 9.7% a year earlier, in line with the Group's target. This significant increase is largely attributable to the successful integration of Aegis USA Inc., acquired in August 2014, as well as to improved performance in Europe, including outsourced visa application management services (TLScontact). The margin trend also takes into account the substantial security measures taken by the Group in response to the current environment. Teleperformance estimates the full-year impact of these measures on operating margin at-0.5 point.
EBITA BEFORE NON-RECURRING ITEMS BY REGION – EXCLUDING HOLDING COMPANIES
€ millions | 2015 | 2014 | ||
English-speaking market & Asia-Pacific |
170 |
135
|
||
% of revenue | 10.1% | 11.2% | ||
Ibero-LATAM |
105 |
83
|
||
% of revenue | 12.6% | 10.8% | ||
Continental Europe & MEA |
43 |
17
|
||
% OF REVENUE | 5.0% | 2.2% | ||
Total – including holding companies |
351 |
267
|
||
% OF REVENUE | 10.3% | 9.7% |
The English-speaking market & Asia-Pacific region achieved EBITA before non-recurring items of €170 million in 2015. This strong 26% increase from €135 million in 2014 reflects growth in existing activities, the contribution of Aegis USA Inc., acquired in August 2014, and the US dollar's significant rise against the euro. EBITA margin before non-recurring items contracted, however, to 10.1% from 11.2% in 2014 mainly due to security costs, the slower-than-expected ramp up of certain domestic contracts, an unfavorable mix effect stemming from business trend with some clients, and the impact on payroll costs of the Patient Protection and Affordable Care Act (Obama Care) in the United States.
EBITA before non-recurring items in the Ibero-LATAM region rose to €105 million in 2015 from €83 million in 2014. EBITA margin before non-recurring items remained high, rising to 12.6% versus 10.8% in 2014, mainly due to strong, profitable growth in the Brazilian market, coupled with favorable currency trends for offshore business in Mexico serving the US market.
With EBITA before non-recurring items of €43 million, for a margin of 5.0% (up significantly from 2.2% in 2014), the Continental Europe & MEA region remained on the steady upward trend in profitability observed for the past four years. During the year, the Group's margin in the region benefited in particular from strong growth in operations in a certain number of countries in Southern and Northern Europe, as well as the positive process of recovery in France. The margin was also supported by the dynamic performance of TLScontact.
Reported EBIT amounted to €308 million, versus €237 million in 2014. EBIT is stated after amortization of intangible assets on acquisitions in an amount of €23 million, up from the previous year due to the acquisition of Aegis USA Inc., and after the following non-recurring expenses:
- €17 million in accounting expenses on the performance share plans set up in 2013.
- €3 million in other non-recurring expenses.
The financial result stood at €27 million, versus €19 million in 2014.
Income tax expense amounted to €78 million, corresponding to an effective tax rate of 27.7%, versus 30.5% in the prior year.
After €3 million in minority interests, net profit attributable to shareholders stood at €200 million for the year, up + 33.3% from the €150 million reported in 2014. Diluted earnings per share rose by + 31.7% year-on-year to €3.45.
The Board of Directors will recommend that shareholders at the annual general meeting on April 28, 2016 approve an increase in the 2015 dividend to €1.20 per share from the €0.92 paid in respect of 2014. This would correspond to a payout ratio of 35%, unchanged from the prior year.
CASH FLOWS AND FINANCIAL STRUCTURE
Cash flow before interests paid and after tax amounted to €400 million, versus €321 million in 2014.
Consolidated working capital requirement outflow was €9 million over the year compared with an outflow of €116 million in 2014. This change reflects the Group's successful policy to improve liquidity through steady, disciplined management of working capital requirement over the year. An action plan helped reduce average days sales outstanding (DSO) by one day. In addition, termination of a factoring program set up by Aegis USA Inc. before its acquisition by the group had increased working capital requirement in 2014 by an estimated €50 million.
Net capital expenditure was virtually stable in euros, at €172 million versus €157 million in 2014, but significantly lower as a percentage of revenue, at 5.0% versus 5.7% the year before. These investments were primarily committed to create or expand contact centers serving key markets in the Group's three regions.
Consolidated net free cash flow before interests paid improved significantly to €219 million from €48 million in 2014 thanks to revenue growth and higher margins, as well as to satisfactory management of working capital requirement and capital expenditure. Cash conversion (net free cash flow divided by EBITDA before non-recurring items) stood at 45%, a significant improvement from 13% in 2014.
After the payment of €53 million in dividends and net financial expense of €17 million, net debt stood at €363 million at December 31, 2015, down noticeably from €423 million at the previous year end.
The Group's financial structure remains very solid, with a net debt-to-equity ratio of 21%. The net debt-to-EBITDA ratio also contracted significantly to 0.7 from 1.1 at December 31, 2014.
Backed by this favorable situation, the Group finalized the renegotiation of its €300 million line of credit with its banking partners in mid-February 2016, obtaining an extended maturity date and more advantageous terms.
GOVERNANCE
In May 2013, the Board of Directors decided to separate the functions of Chairman and Chief Executive Officer to prepare the Group's future governance and comply with good governance guidelines. Following this decision, Daniel Julien was appointed Executive Chairman of the Board of Directors and Paulo César Salles Vasques was appointed Chief Executive Officer. The Board unanimously agreed that a period of three years was necessary and indispensable for the transmission of knowledge about the Group's internal and external environment.
After regularly monitoring the way this two-tiered governance structure operated over the period, the Board of Directors concluded that this type of governance system was particularly well suited to the Group's needs and created value for shareholders. The Board of Directors unanimously decided at its meeting of February 24, 2016 to continue with the same governance structure as long as it is suitable for the two top leaders, Daniel Julien, Executive Chairman of the Board of Directors, and Paulo César Salles Vasques, Chief Executive Officer.
At the same meeting, the Board of Directors also proposed to appoint* three women (Pauline de Robert, Wai Ping and Leigh Ryan) to replace three members (Daniel Bergstein, Philippe Ginestié and Mario Sciacca), thereby lifting the percentage of women on the Board to more than 40%, in line with AFEP-MEDEF guidelines.
SIGNIFICANT STRENGTHENING OF THE GROUP'S GLOBAL MARKET LEADERSHIP
- Extending and creating new facilities, notably offshore
Teleperformance continued to extend and open contact centers in its three linguistic regions in 2015. Over the year, it opened eight new contact centers.
*submitted to shareholder approval at the annual general meeting on April 28, 2016
To support the fast growth in its business, the Group enhanced its offshore capacity during the year and broadened its footprint in fast-growth markets in its three linguistic regions.
In all, sixteen new contact centers were opened and the number of workstations was increased at sixteen existing sites, for a total of 12,000 additional workstations.
The breakdown by region was as follows:
- Eight new centers in the English-speaking market & Asia-Pacific, located in the United States, Canada, the United Kingdom, Indonesia, China, the Philippines and Guyana. Most of the investments were committed to the fast-growing Asian market.
- Two new sites in the Ibero-LATAM region, one in Lisbon, Portugal and the other in Medellin, Colombia.
- Six new centers in Continental Europe & MEA, most of them offshore. Centers were opened in Surinam, to serve the Dutch market, Dubai, Albania, Egypt and Lithuania. In addition, the Group developed new Work at Home solutions in Germany.
- Recognition for the Group's strategy
In 2015, Teleperformance again garnered numerous awards from prestigious institutions and well-known independent research firms around the globe, in recognition of its leadership and excellent service in its market, as well as for its human capital development strategy, its innovation capabilities and its commitment to social and environmental responsibility.
Teleperformance was recognized, for the third year in a row, by the Everest Group as the top-performing leader in Contact Center Outsourcing (CCO) delivery capability.
The Group also obtained Verego SRS certification in five categories: leadership, ethics, people, community and environment.
In 2015 Frost & Sullivan honored Teleperformance with six awards:
- Offshore Market Leadership – Latin America.
- Technology Innovation Leadership – North America.
- Service Provider of the Year – Asia-Pacific.
- Competitive Strategy Innovation and Leadership – Continental Europe & MEA.
- Product Leadership – Chile.
- Company of the Year – North America.
Teleperformance Portugal and Teleperformance India were included in the list of Great Place to Work® Best Companies.
Lastly, in 2015 Teleperformance was certified by Aon Hewitt's Global Best Employers™ Program for its operations in Albania, Chile, China, Egypt, India, Lebanon, Portugal, Slovakia, Switzerland and Ukraine.
2016 OUTLOOK
Backed by the ongoing expansion of its global footprint, especially with new contact centers in the United States and Asia, Teleperformance should enjoy continued growth in its market in 2016. It should also benefit from sustained measures to boost its operations in Europe.
In this favorable environment, the Group plans to pursue its substantial investments in the future, notably in the areas of data security and employee protection – a key differentiating factor in its business and in an increasingly complex and unstable world.
Teleperformance expects to deliver another year of growth in 2016, with the following full-year targets:
- Like-for-like revenue growth of between 5% and 7%.
- EBITA margin before non-recurring items superior or equal to 10.3%.
- Strong cash flow generation.
DISCLAIMER
The consolidated financial statements have been audited and certified.
All forward-looking statements are Teleperformance management’s present expectations of future events and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. For a detailed description of these factors and uncertainties, please refer to the section “Risk Factors” section of our Registration Document, available at www.teleperformance.com. Teleperformance undertakes no obligation to publicly update or revise any of these forward-looking statements.
ANALYST AND INVESTOR INFORMATION MEETING
Date: Thursday, November 25, 2016 at 9:00 AM CET
The
meeting, which will be held in Paris, will be simultaneously webcast on www.teleperformance.com.
The related presentation may also be downloaded from the site.
INVESTOR CALENDAR
First-quarter 2016 revenue April 26, 2016
Annual general meeting
April 28, 2016
First-half 2016 results: July 27, 2016
Third-quarter
2016 revenue: November 14, 2016
ABOUT TELEPERFORMANCE
Teleperformance (RCF - ISIN: FR0000051807 - Reuters: ROCH.PA - Bloomberg: RCF FP), the worldwide leader in outsourced multichannel customer experience management, serves companies around the world with customer care, technical support, customer acquisition and debt collection programs. In 2014, it reported consolidated revenue of €3.4 billion ($3.7 billion, based on €1 = $1.11).
The Group operates 147,000 computerized workstations, with close to 190,000 employees across 311 contact centers in 65 countries and serving more than 160 markets. It manages programs in 75 languages and dialects on behalf of major international companies operating in a wide variety of industries.
Teleperformance shares are traded on the Euronext Paris market, Compartment A, and are eligible for the deferred settlement service. They are included in the following indices: STOXX 600, SBF 120, Next 150, CAC Mid 60 and CAC Support Services. They also have been included in the Euronext Vigeo Eurozone 120 index since December 2015, with regard of the Group’s performance in corporate responsibility
For more information: www.teleperformance.com
Follow
us: Twitter @teleperformance
APPENDICES
REVENUE BY REGION
€ millions | 2015 | 2014 | % change | |||||
Reported | Like-for-like | |||||||
FOURTH QUARTER | ||||||||
English-speaking market & Asia-Pacific | 451 | 395 | + 14.4% | + 2.0% | ||||
Ibero-LATAM | 218 | 208 | + 4.7% | + 10.8% | ||||
Continental Europe & MEA | 233 | 202 | + 15.2% | + 16.0% | ||||
TOTAL | 902 | 805 | + 12.1% | + 7.4% | ||||
THIRD QUARTER | ||||||||
English-speaking market & Asia-Pacific | 422 | 319 | + 32.0% | + 4.0% | ||||
Ibero-LATAM | 194 | 195 | - 0.2% | + 4.1% | ||||
Continental Europe & MEA | 222 | 194 | + 14.4% | + 15.5% | ||||
TOTAL | 838 | 708 | + 18.3% | + 7.0% | ||||
SECOND QUARTER | ||||||||
English-speaking market & Asia-Pacific | 399 | 249 | + 59.8% | + 3.0% | ||||
Ibero-LATAM | 214 | 188 | + 13.8% | + 7.9% | ||||
Continental Europe & MEA | 214 | 198 | + 8.4% | + 7.8% | ||||
TOTAL | 827 | 635 | + 30.2% | + 5.7% | ||||
FIRST QUARTER | ||||||||
English-speaking market & Asia-Pacific | 416 | 245 | + 69.7% | + 9.9% | ||||
Ibero-LATAM | 209 | 180 | + 16.3% | + 8.3% | ||||
Continental Europe & MEA | 206 | 185 | + 11.5% | + 12.0% | ||||
TOTAL | 831 | 610 | + 36.3% | + 10.0% |
CONSOLIDATED INCOME STATEMENT
€ millions
2015 | 2014 | |||
Revenues | 3,398 | 2,758 | ||
Other operating revenues | 6 | 7 | ||
Personnel | (2,269) | (1,883) | ||
External expenses | (626) | (493) | ||
Taxes other than income taxes | (17) | (14) | ||
Depreciation and amortization | (141) | (109) | ||
Amortization of intangible assets acquired as part of a business combination | (23) | (15) | ||
Share-based payments | (17) | (7) | ||
Other operating income and expenses | (3) | (7) | ||
Operating profit | 308 | 237 | ||
Income from cash and cash equivalents | 1 | 2 | ||
Interest on financial liabilities | (23) | (14) | ||
Net financing costs | (22) | (12) | ||
Other financial net expenses | (5) | (7) | ||
Financial result | (27) | (19) | ||
Profit before taxes | 281 | 218 | ||
Income tax | (78) | (66) | ||
Net profit | 203 | 152 | ||
Net profit - Group share | 200 | 150 | ||
Net profit attributable to non-controlling interests | 3 | 2 | ||
Basic earnings per share (in €) | 3.51 | 2.62 | ||
Diluted earnings per share (in €) | 3.45 | 2.62 |
CONSOLIDATED BALANCE SHEET
€ millions
ASSETS | 12.31.2015 | 12.31.2014 | ||
Non-current assets | ||||
Goodwill | 1,123 | 1,019 | ||
Other intangible assets | 281 | 323 | ||
Property, plant and equipment | 428 | 391 | ||
Financial assets | 34 | 43 | ||
Deferred tax assets | 36 | 41 | ||
Total non-current assets | 1,902 | 1,817 | ||
Current assets | ||||
Current income tax receivable | 36 | 37 | ||
Accounts receivable - Trade | 754 | 693 | ||
Other current assets | 107 | 113 | ||
Other financial assets | 43 | 51 | ||
Cash and cash equivalents | 257 | 216 | ||
Total current assets | 1,197 | 1,110 | ||
Total assets | 3,099 | 2,927 | ||
EQUITY AND LIABILITIES | 12.31.2015 | 12.31.2014 | ||
Shareholders' equity | ||||
Share capital | 143 | 143 | ||
Share premium | 575 | 575 | ||
Translation reserve | 69 | 32 | ||
Other reserves | 971 | 845 | ||
Equity attributable to owners of the company | 1,758 | 1,595 | ||
Non-controlling interests | 7 | 5 | ||
Total shareholder's equity | 1,765 | 1,600 | ||
Non-current liabilities | ||||
Provisions | 10 | 10 | ||
Financial liabilities | 469 | 425 | ||
Deferred tax liabilities | 110 | 125 | ||
Total non-current liabilities | 589 | 560 | ||
Current liabilities | ||||
Provisions | 70 | 43 | ||
Current income tax | 46 | 49 | ||
Accounts payable - Trade | 117 | 123 | ||
Other current liabilities | 361 | 338 | ||
Other financial liabilities | 151 | 214 | ||
Total current liabilities | 745 | 767 | ||
Total equity and liabilities | 3,099 | 2,927 |
CONSOLIDATED CASH FLOW STATEMENT
€ millions
Cash flows from operating activities | 2015 | 2014 | ||
Net profit - Group share | 200 | 150 | ||
Net profit attributable to non-controlling interests | 3 | 2 | ||
Income tax expense | 78 | 66 | ||
Net financial expense | 17 | 6 | ||
Expense (income) without effect on cash | 183 | 150 | ||
Income tax paid | (81) | (53) | ||
Internally generated funds from operations | 400 | 321 | ||
Change in working capital | (9) | (116) | ||
Net cash flow from operating activities | 391 | 205 | ||
Cash flows from investing activities | ||||
Acquisition of intangible assets and property, plant and equipment | (174) | (160) | ||
Loans made | (1) | |||
Proceeds from disposals of intangible assets and property, plant and equipment | 2 | 3 | ||
Repayment of loans | 10 | 1 | ||
Investments in subsidiaries | (471) | |||
Net cash flow from investing activities | (162) | (628) | ||
Cash flows from financing activities | ||||
Acquisition/disposal of treasury shares | (5) | |||
Change in ownership interest in controlled entities | (5) | (7) | ||
Dividends paid to parent company shareholders | (53) | (46) | ||
Financial income/expense* | (17) | (5) | ||
Increase in financial liabilities | 749 | 918 | ||
Repayment of financial liabilities | (806) | (355) | ||
Net cash flow from financing activities | (137) | 505 | ||
Change in cash and cash equivalents | 92 | 82 | ||
Effect of exchange rates on cash held - | (52) | (28) | ||
Net cash at January 1st | 214 | 160 | ||
Net cash at June 30th | 254 | 214 | ||
0 | 0 | |||
* In light of the amount of financial expense paid by the Group following the acquisition of Aegis USA Inc., this data has been included in cash flows from financing activities. As a result, 2014 data has been restated accordingly. |
NB: The consolidated financial statements have been audited and certified