2012 Q4 revenue and annual results

PR Newswire/Les Echos/ 

                        Sèvres, February 21, 2013
                       2012 Fourth-Quarter Revenue
                          2012 Annual Results

* +8.3% surge in business in the fourth quarter

* Excellent revenue and recurring operating income in 2012 
    - Revenue of EUR3,585.2m, up +14.8% year on year
       - Recurring Operating Income: EUR290.3m, or 8.1% of revenue

In a statement, Alain Viry, Chairman of CFAO's Management Board said:
"CFAO reported excellent results in 2012 thanks to the tremendous commitment of
our employees, the sustained momentum of most of the African markets where we
posted growth of almost 20%, and the renewed trust of our customers.
We attained the growth and profitability objectives set by the Group for the
fiscal year, with strong growth of 14.8% and recurring operating income coming
in at EUR290.3 million, up 13.3% on last year. The major acquisitions carried
out by Eurapharma in 2012 and the potential of recently developed businesses
will contribute, among other factors, to reinforcing the Group's growth on the
African markets, which look set to remain favorable overall in 2013.
The main aim of the strategic alliance formed between CFAO and TTC in December
2012 is to step up the Group's expansion in Africa and to broaden the scope of
its activities. We are determined, by combining our strengths and experience, to
reinforce the leadership of CFAO as a brand distributor across all its existing
businesses and beyond." 
1. Fourth-quarter 2012 revenue  
Throughout the press release, "like-for-like" changes correspond to changes
observed on a constant Group structure and exchange rate basis. 
                            Fourth quarter
(in EURm)         Q4 2011     Q4 2012     Change       Change 
                                    (reported) (like-for-like) 
Automotive         521.4       552.6      +6.0%         +4.8%  
Eurapharma         225.5       258.6     +14.7%         +4.7% 
Equipment & 
Services          111.9        119.2      +6.6%         +5.3% 
Total CFAO        858.9        930.6      +8.3%         +4.9% 
            Full year
  2011       2012      Change       Change 

                     (reported) (like-for-like)

1,891.7    2,188.2     +15.7%       +13.0%
  864.5      969.2     +12.1%        +5.7%
  367.4      427.6     +16.4%       +14.3%
3,123.7    3,585.2     +14.8%       +11.1%

CFAO posted fourth-quarter revenue of EUR930.6 million, up 8.3% on the same
year-ago period. The positive impacts of changes in Group structure represented
EUR28 million in the last three months of 2012, while the impact of exchange
rates (translating subsidiaries' revenue into euros) was not significant.
Like-for-like, fourth-quarter revenue climbed +4.9% compared to the same period
in 2011.

CFAO Automotive posted fourth-quarter revenue of EUR552.6 million, up +6.0% on
the same prior-year period and +4.8% like-for-like. This performance is slightly
below the division's performance for the first three quarters due to a relative
slowdown of business in the French overseas territories and to a lesser extent
in French-speaking Sub-Saharan Africa. Sales in the Maghreb were up 24.6% on the
previous year in a market that remains buoyant. However, no improvement has been
reported in Nigeria.

Eurapharma posted growth of +14.7% during the fourth quarter, with revenue of
EUR258.6 million. The division's recent acquisitions (Missionpharma, Assene
Laborex) made a significant contribution to revenue. Like-for-like, growth came
to 4.7% with contributions from all geographic areas.

CFAO Industries, Equipment & Services posted fourth-quarter revenue of EUR119.2
million, up +6.6% on the same period one year ago and +5.3% like-for-like. This
performance is due to the steep rise in sales reported by the plastics business
as well as machinery sales and rental services.

2. 2012 financial and operating performance

On a reported basis, Group revenue climbed +14.8% for the year as a whole
(+11.1% like-for-like). 

Sales to the African continent are up +19.8% in 2012.

Changes in Group structure in 2012 resulted mainly from the consolidation of
Eurapharma's recent acquisitions (Missionpharma, Assene Laborex and Propharmal)
and the SICAM group in Madagascar.

These changes had a positive EUR80.5 million impact on revenue for the year.

Fluctuations in the exchange rates used to translate annual revenue into euros
resulted in a positive EUR23.7 million impact in 2012 (Kenya, Nigeria, the
Democratic Republic of the Congo, Malawi and Ghana).

(in EURm)                                          2011        2012     Change
Revenue                                         3,123.7     3,585.2     +14.8%
Cost of sales                                  (2,418.2)   (2,792.4)    +15.5%
Gross profit                                      705.5       792.8     +12.4%
as a % of revenue                                  22.6%       22.1%  -0.5 pts
Payroll expenses                                 (222.2)     (255.2)    +14.9%
Other recurring operating income and expenses    (227.0)     (247.3)     +8.9%
Recurring operating income                        256.3       290.3     +13.3%
as a % of revenue                                   8.2%        8.1%  -0.1 pts
Other non-recurring operating income 
and expenses(*)                                     9.8        (9.5)      -
Operating income                                  266.1       280.8      +5.5%
EBITDA(**)                                        304.9       345.2     +13.2%
as a % of revenue                                   9.8%        9.6%  -0.2 pts
Finance costs, net                                (29.6)      (37.8)    +27.8%
Income before tax                                 236.6       243.1      +2.8%
Income tax                                        (68.9)      (74.2)     +7.7%
Overall effective tax rate                         29.1%       30.5%  +1.8 pts
Share in earnings of associates                     2.9         2.3       -
Net income of consolidated companies              170.6       171.2      +0.4%
Net income attributable to non-controlling 
interests                                          49.5        57.2     +15.5%
Net income attributable to owners 
of the parent                                     121.1       114.0      -5.8%
Net income attributable to owners of the 
parent (restated for the expenses related 
to the TTC tender offer, net of income tax)(*)    121.1       122.4      +1.1%
Earnings per share                                 1.97        1.85      -5.8%
Earnings per share (restated for the expenses
related to the TTC tender offer, 
net of income tax)(*)                              1.97        1.99      +1.1%

(*) Expenses related to TTC's tender offer: EUR11.4 million (EUR8.4 million
after in come tax)
(**) EBITDA is defined as recurring operating income plus depreciation,
amortization and provisions for nonrecurring operating assets recognized in
recurring operating income.

CFAO Automotive posted 2012 revenue of EUR2,188.2 million up 15.7% year on year,
or 13.0% on a like-for-like basis. More than 95,000 new vehicles from about 30
car manufacturers were sold in 2012, outperforming the historic record of 2008
and up +16% versus 2011. Business remained upbeat in the Maghreb in 2012,
particularly in Morocco and Algeria where sales increased by +44% in the new
vehicle market of over 500,000 vehicles. In French-speaking Sub-Saharan Africa,
revenue was up +7.5% despite the recovery of Côte d'Ivoire. English-speaking
Sub-Saharan Africa posted +10.2% likefor-like growth but the performance in
Nigeria is not yet showing any sign of improvement. Sales in the French Overseas
Territories retreated, particularly in New Caledonia.

Eurapharma posted sales of EUR969.2 million, up +12.1% year on year and 5.7%
like-for-like. The division's recent acquisitions (Missionpharma, Assene Laborex
and Propharmal) contributed EUR48.8 million to consolidated revenue, or 5.6% of
growth. Like-for-like, growth was reported across all geographic regions, in
particular in English-speaking Sub-Saharan Africa and Algeria. In the French
Overseas Territories, revenue was up 1.8% on a like-for-like basis.

CFAO Industries, Equipment & Services posted growth of +16.4%. Like-for-like
growth came in at +14.3% thanks to the Industries business (beverages and
plastic products), which advanced +10.8% and the growing momentum of the new
construction machinery distribution and rental services businesses. CFAO
Technologies sales were down 1.8% due to project delays in Cameroon and Gabon.

Gross profit came in at EUR792.8 million, or 22.1% of consolidated revenue,
compared with 22.6% in 2011. This minor decline in the gross profit margin is
mainly due to the slight drop in CFAO Automotive's gross profit margin, which
was in turn attributable to a geographical mix with strong growth posted in the
Maghreb where the gross margin rate is historically lower than the average, and
a less favorable EUR/JPY exchange rate in 2012.

Payroll expenses and other recurring operating income and expenses increased by
+14.9% and +8.9% respectively in 2012, but less than the Group's gross profit

Recurring operating income came in at EUR290.3 million, up +13.3% on the same
prior-year period. This represents a recurring operating margin of 8.1% compared
with 8.2% in 2011.

By division, recurring operating income breaks down as follows:
                                2011                  2012
                        (in EURm)  as a % of  (in EURm)   as a % of     Change
                                    revenue                revenue

CFAO Automotive          141.1       7.5%       161.3        7.4%       +14.3%

Eurapharma                75.8       8.8%        84.0        8.7%       +10.9%

CFAO Industries,    
Equipment & Services      67.0      18.3%        78.3       18.3%       +16.8%

CFAO Holding             (27.6)       -         (33.3)        -        

- Group total            256.3       8.2%       290.3        8.1%       +13.3%

Net other non-recurring operating income and expenses represented an expense of
EUR9.5 million in 2012, versus income of EUR9.8 million one year earlier. In
2011, this item included the accounting treatment of the merger with the
Pentecost group in New Caledonia (non-cash impact of EUR8.4 million on the
revaluation of the minority shareholding in the Almameto group). In 2012, it was
mainly impacted by costs related to the tender offer initiated by TTC for CFAO's
shares in the amount of EUR1 1.4 million.

Operating income was up +5.5% during the year under review to EUR280.8 million.

EBITDA came in at EUR345.2 million and represented 9.6% of revenue, up +13.2%
year on year.

Net finance costs increased by +27.8% to EUR37.8 million, reflecting the
increase in average gross debt, particularly in relation to local subsidiaries
in Africa, due to growth in business activity and a significant increase in
working capital requirement during the last few months of 2012.

The overall effective tax rate for the year increased from 29.1% to 30.5%.

Net income attributable to owners of the parent amounted to EUR1 14.0 million in
2012, down 5.8% on 2011. Earnings per share came out at EUR1.85, down 5.8%.
Net costs related to the tender offer initiated by TTC for CFAO's shares,
amounted to EUR8.4 million. Consequently, restated net income attributable to
owners of the parent amounted to EUR122.4 million in 2012, up +1.1% on 2011,
and restated earnings per share came out at EUR1.99, also up +1.1%.

In view of the above, at the next General Shareholders' Meeting, shareholders
will be asked to approve a dividend payment of EUR0.90 per share, up 4.7%
compared with one year ago.

3. Cash flow and financial position 

Consolidated statement of cash flows (condensed) (in EURm)    2011       2012

Cash flow from operating activities before tax, 
dividends and interest                                       314.4      339.6
as a % of revenue                                             10.1%       9.5%
Change in working capital requirement                          0.8     (164.7)
Income tax paid                                              (74.2)     (74.7)
Operating capital expenditure, net                           (70.0)     (89.6)
Free operating cash flow                                     171.0       10.5

Due to a strong increase in cash flow from operating activities and a higher
than expected change in working capital requirement, in 2012 the Group recorded
a low level of free operating cash flow coming in at just EUR10.5 million after
operating capital expenditure. Working capital requirement increased
significantly during the last few months of the year, mainly due to CFAO
Automotive's high inventory levels.

In 2012, operating capital expenditure chiefly concerned the ongoing program to
modernize and extend the CFAO Automotive network for EUR32.1 million and
continued capacity extension within CFAO Industries for EUR26.0 million.

At December 31, 2012, net debt totaled EUR377 million, up EUR185 million on
end-2011, as a result of the significant increase in working capital requirement
during the last few months of the year.

The gearing ratio stood at 0.46 at year-end compared with 0.26 at the end of

4. Other highlights

- TTC's public tender offer for CFAO's shares was finalized on Decem ber 17,
2012. At the closing of the tender offer, TTC had secured 60,177,409 of CFAO's
shares, equivalent to 97.81% of the Company's outstanding share capital.
Although TTC acquired more than 95% of CFAO's voting rights shares, TTC is
currently considering whether to maintain CFAO's French listing on Euronext.
TTC's initial intention was not to delist CFAO. A final decision will be made
and announced before March 17, 2013.

- At its meeting of December 26, 2012, CFAO's Supervisory Board, chaired by
Jean-Charles Pauze, decided to appoint Ichiro Kashitani as a member of the
Management Board, chaired by Alain Viry, for a three-year term. Ichiro Kashitani
joined the CFAO teams in France as Executive Vice-President Corporate Planning
and Alliance Development.

5. Outlook for 2013

Growth prospects for the African continent predicted by the IMF remain favorable
for 2013 even if the recent events in the Sahel region have created a new
environment that could negatively impact the pace of business in 2013.

CFAO Automotive, which represents 61 % of Group revenue, should continue to
benefit from the vitality of most of the African markets. As in 2012, moderate
growth is expected in the French overseas territories.

Eurapharma, which accounts for 27% of Group revenue, is expected to continue its
steady growth in Africa in 2013. Projects to extend distribution capacities will
be launched in certain subsidiaries, resulting in more substantial operating
investments for Eurapharma than in 2012.

The businesses of CFAO Industries, Equipment & Services, which represent 12% of
Group revenue, should also enjoy continued growth in 2013, with CFAO Equipment
and rental services in particular going from strength to strength.

The Supervisory Board of CFAO met on February 14, 2013 under the chairmanship of
Jean-Charles Pauze and in the presence of the Statutory Auditors, to review the
2012 financial statements as approved by the Management Board on February 
12, 2013.

The financial information was subject to audit procedures and an audit report
certifying the financial statements is in the process of being issued. The 2012
financial statements will be submitted to the approval of the next General
Shareholders' Meeting.

The 2012 consolidated financial statements and today's presentation to analysts
and journalists can be found on www.cfaogroup.com.

Disclaimer on statements relating to the Company's prospects

The information contained in this press release does not represent historical
data. It expresses CFAO's medium-term expectations and objectives and includes
statements relating to the Group's prospects. These statements are based on
opinions and assumptions currently used by the Group and take into account a
certain number of identified and unidentified risks and uncertainties.
Consequently, reported results and performances may differ materially from
projected figures, due to several factors.
CFAO's prospects may be affected by un favorable changes in the macroeconomic
environment in emerging or pre-emerging countries in which the Group operates,
adverse changes in foreign exchange rates, and the emergence of social unrest or
the deterioration of existing social tensions causing a downturn in the economic
activity of certain countries. Any adverse change in these factors, or in the
risk factors set out in CFAO's 2011 Reference Document filed with the French
financial markets authority (Autorité des marchés financiers - AMF) on April
6, 2012 and in the Interim Financial Report for the six months ended June 30,
2012 published on July 30, 2012, could have a negative impact on the Company's

About CFAO 

CFAO is the foremost specialized retail brand in its main business areas -
vehicle and pharmaceuticals distribution - in Africa and the French overseas
territories. It is a leading player in these regions in the import and
distribution of vehicles and pharmaceutical products, and related logistical
services, and certain manufacturing operations and technological services. CFAO
is present in 34 countries, 31 of which are in Africa and seven in the French
overseas territories, and had a headcount of 11,400 at end-2012.
In 2012, CFAO generated consolidated revenue of EUR3,585 million and recorded
recurring operating income of EUR290.3 million.

CFAO is now a 97.8%-owned subsidiary of TTC (Japan).

CFAO is listed on NYSE Euronext in Paris.
Find CFAO on Bloomberg: CFAO:FP and Reuters: CFAO.PA

To find out more, go to www.cfaogroup.com 

Investor and Analyst Relations

Sébastien Desarbres
Director of Financial Communications and Investor Relations 
+33 1 46 23 56 51

Press Relations 
Laurence Tovi
Director of Communications
+33 1 46 23 58 80


1. Revenue trends by geographic area
                                            Fourth quarter
                              Q4 2011     Q4 2012     Change       Change
                              in EURm     in EURm   (reported) (like-for-like)

Sub-Saharan Africa             350.9       360.4      +2.7%        +2.1%

French Overseas 
Territories and Vietnam        195.2       182.8      -6.3%        -4.9%

Maghreb                        162.4       204.0     +25.6%       +24.3%

English- and Portuguese-
speaking Sub-Saharan Africa    105.7       127.8     +20.9%        +4.7%

Other Europe(*)                 44.7        55.8     +24.8%        -0.3%

Group total                    858.9       930.6      +8.3%        +4.9%

              Full year
 2011        2012       Change       Change
in EURm     in EURm   (reported) (like-for-like) 
1,239.9     1,357.9     +9.5%         +8.5%
  729.6       717.2     -1.7%         -1.3%
  599.6       809.3    +35.0%        +32.4%
  392.8       505.6    +28.7%        +11.5%
  161.8       195.1    +20.6%         +6.6%
3,123.7     3,585.2    +14.8%        +11.1%   
(*) France Export and Denmark (Missionpharma) 
2. Consolidated statement of financial position (condensed) 
(in EURm)                                  Dec. 31, 2011   Dec. 31, 2012 
Intangible assets                              180.9           231.4 
Property, plant and equipment                  319.6           365.9 
Working capital requirement                    397,0           572.1 
Other assets and liabilities                    33,5            26.5 
Capital employed                               931.0         1,195.9 
Equity (including equity attributable
to non-controlling interests)                  739.1           818.9 
Net debt                                       192.0           377.0 
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