Financial information for the third quarter of the 2012/2013 financial year
PR Newswire/Les Echos/
Release Paris, 14 February 2013
Financial information third quarter
Sharp rise in third quarter revenues * Global Financial Advisory third quarter revenue particularly strong in Europe as well as in Asia and Latin America * Wealth and Asset Management third quarter revenue slightly increased in challenging market conditions * Positive development in Merchant Banking, including the launch of a new fund initiative in November to capture opportunities in the European high yielding junior credit market In EURm Third quarter Nine months Revenues Revenues
2012/2013 2011/2012 2012/2013 2011/2012 Global Financial Advisory and Specialist Finance 256.8 210.1 585.8 586.1
Wealth and Asset Management 74.5 72.1 215.7 223.7
Merchant Banking 26.6 13.3 66.4 76.4
Total Group Revenues 357.9 295.5 867.9 886.2
Global Financial Advisory and Specialist Finance
Global Financial Advisory and Specialist Finance revenues in the third quarter 2012/2013 were EUR256.8 million, up 38% and 22%, respectively, compared to the second quarter and last year's third quarter. This was the highest quarterly revenue since 2007/2008.
For the nine months to December 2012, Global Financial Advisory revenue was flat compared to the same period in the previous year against the backdrop of a 6% decline in Global market activity and a 23% decline in the European market (1).
Revenues for the third quarter were particularly strong in our core European markets, as well as in Asia and Latin America, as we advised on many of the largest and most complex M&A and Financing Advisory transactions completed in the period.
Rothschild advised the following clients on significant M&A transactions:
* Nestlé on the acquisition of Pfizer Nutrition (US$1 1.8 billion);
* ThyssenKrupp on the sale of its Inoxum stainless steel business to Outokumpu (EUR2.7 billion);
* Bright Food on the acquisition of a 60% interest in Weetabix (US$ 1.1 billion);
* Toyota Tsusho on the public tender offer for CFAO (EUR2.3 billion);
* Cookson on the demerger of its Performance Materials Division (GBP 2.1 billion);
* Hong Kong Exchanges & Clearing on the acquisition of The London Metal Exchange (GBP 1.4 billion); and
* Schiff Nutrition on its sale to Reckitt Benckiser (US$ 1.45 billion).
Financing Advisory (debt advisory, restructuring and equity advisory) has continued to perform well despite industry-wide low levels of activity. Notable restructuring transactions completed in the third quarter include the debt restructurings of Deutsche Annington (EUR4.3 billion) and Rede Energia (BRL 1.5 billion). In addition, the Debt Advisory team advised Pages Jaunes (EUR2.3 billion) and Peel Ports (£1 .6 billion). Completed Equity Advisory assignments in the period included advising on the Portuguese State's injection of capital into Banif (EUR1 .4 billion), Queensland Treasury's partial selldown in QR National (AUD 1.5 billion) and Talanx's IPO (EUR0.5 billion).
Despite strong revenues during this quarter, we remain cautious in the short term for Global Financial Advisory given the on-going uncertain economic environment.
Specialist Finance, which includes the Corporate Banking business in the UK, reduced its legacy loan portfolio by a further £57 million in the third quarter and £168 million since April 2012, as planned.
(1) Completed M&A by value of deals for the 9 months to December 2012 compared to the same period in 2011 (Source - Thom pson Reuters as at 30 January 2013)
Wealth and Asset Management
Wealth and Asset Management revenues were EUR74.5 million for the third quarter, up 10% and 3%, respectively, compared to the second quarter and last year's third quarter. Third quarter revenues were positively impacted by revenue from the acquisition of HDF Finance multi-management activities and by performance fees.
For the nine months to December 2012, revenues were below last year's level by 4% in a challenging market environment. Clients' risk aversion resulted in lower transaction fees and to a change in product mix towards less risky assets. Moreover, continuing low interest rates adversely impacted revenue on monetary assets.
At the end of December 2012, the Group's assets under management amounted to EUR39 billion, unchanged since 30 September 2012, and increased compared to end of March 2012 (EUR37.1 billion).
The merger of Rothschild & Cie Gestion multi-management activity and HDF Finance, to form Rothschild HDF Investment Solutions, is expected to benefit the Group's performance, especially through the launch of new products.
During the third quarter, Merchant Banking generated revenues of EUR26.6 million compared to EUR4.7 million the second quarter and EUR13.3 million in the same period last year. Those revenues include EUR13.2 million of profits from the disposal of the Paprec investment - (French waste recycling company).
Merchant Banking launched a new fund initiative in November, Five Arrows Credit Solutions. This is a fund targeted at capturing opportunities in the European high yielding junior credit market. The division also realised a first closing (at EUR130 million) for Oberon, its European senior credit fund.
During the first nine months of 2012/2013, Merchant Banking activities generated revenues of EUR66.4 million, compared to revenues of EUR76.4 million for the same period last year. Disposals amounted to EUR96.5 million generating capital gains of EUR39.7 million. Moreover, this division invested EUR80.2 million, of which EUR19.2 million was in proprietary investments and EUR61 million was in equity funds managed by Merchant Banking.
Despite continuing global economic uncertainty and ever evolving regulation, the Group continues to focus on developing synergies between its three main businesses and a strict cost discipline. These factors will allow it to benefit from improved market conditions, as and when they arise, particularly in respect of mergers and acquisitions.
About Paris Orléans, the parent company of the Rothschild group
Paris Orléans operates in three main areas:
* Global Financial Advisory provides advisory services for mergers and acquisitions, debt financing and restructuring, and equity capital markets;
* Wealth Management and Asset Management, including institutional asset management; and
* Merchant Banking which comprises third party private equity business and proprietary investments.
Paris Orléans SCA is a French partnership limited by shares (société en commandite par actions) with a share capital of EUR141,806,058. Paris trade and companies registry 302 519 228. Registered office: 23 bis avenue de Messine, 75008 Paris, France. Paris Orléans is listed on NYSE Euronext in Paris, Compartment A - ISIN Code: FR0000031684
For information, please contact:
Paris Orléans Investor relations:
23 bis, avenue de Messine Marie-Laure Becquart 75008 Paris firstname.lastname@example.org Internet: www.paris-orleans.com Tel.: +33 (0)1 53 77 65 10
UK Press and Media French Press and Media Smithfield - +44 (0)20 7360 4900 DGM Conseil - + 33 1 40 70 11 89 John Kiely - email@example.com Michel Calzaroni - Alex Simmons - firstname.lastname@example.org@smithfieldgroup.com Olivier Labesse - +44 (0)7970 174 353 email@example.com
27 June 2013 Financial year 201 2/2013 results
Quarterly progression of revenues
In EURm Quarterly progression
2012/2013 2011/2012 Global Financial Advisory and 1st quarter 142.9 212.5 Specialist Finance 2nd quarter 186.1 163.5
3rd quarter 256.8 210.1
YTD 585.8 586.1 Wealth and Asset Management 1st quarter 73.3 79.5 2nd quarter 67.9 72.1 3rd quarter 74.5 72.1 YTD 215.7 223.7 Merchant Banking 1st quarter 35.1 15.2 2nd quarter 4.7 47.9 3rd quarter 26.6 13.3 YTD 66.4 76.4 Total Group Revenues 1st quarter 251.3 307.2 2nd quarter 258.7 283.5 3rd quarter 357.9 295.5 YTD 867.9 886.2
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