EIFFAGE - 2012 sales

PR Newswire/Les Echos/ 
                                                       27 February 2013 
* Sales: EUR14bn (+2.2%, +2.6% like-for-like)
* Operating profit on ordinary activities: EUR1.2bn (+8.6%)
* Net profit (group share): EUR220m (+7.3%)
* Net financial debt: EUR176m reduction in 2012 (EUR744m reduction since 
  31 December 2010) 
The Board of Directors of Eiffage met on 27 February 2013 to approve the
financial statements for the year ended 31 December 2012. The audit procedures
have been completed and the auditors' report on the financial statements is in
the process of being issued. 
2012 SALES 
Eiffage recorded another increase in its sales in the year ended 31 December
2012, up 2.2% to EUR14bn (equivalent to a 2.6% increase like-for-like, bearing
in mind a number of loss-making subsidiaries were wound up in 2011). 
The Construction division recorded a 0.4% increase in sales to EUR3.8bn, buoyed
by upbeat activity in France (4% increase) in contrast to European subsidiaries
which are down 12.9%). As regards the Property Development business, activity
held up, with sales of EUR599m (4.2% increase), thanks notably to housing, which
is one of the division's strengths. 
The Public Works division recorded a 1.3% increase in sales to EUR3.9bn,
reflecting 2.5% growth in France (which was particularly strong for all
businesses in the fourth quarter) and a 6.9% contraction at subsidiaries in
Europe, due mai nly to the weakness of the Spanish market. 
The Energy division recorded a 2.7% increase in sales to EUR3.2bn, with growth
of 1.4% in France and 8.5% in the rest of Europe where increases were recorded
by the division in its principal markets. 
As expected, the Metal division recorded a 15.1% rebound in sales to EUR0.9bn in
2012, with notably the completion of the Ofon offshore platform for Total in
Note that, at the level of the Group, business outside Europe increased by 42.9%
and although the top line contribution remains modest at EUR243m, this is a new
avenue of development for the Group. 
Revenue contributed by the Concessions increased by 1.4% to EUR2.2bn. APRR
recorded a 0.8% increase in sales despite a 1.7% decrease in traffic over the
year as a whole. The other concessions and Public Private Partnerships recorded
an 11.7% increase in sales to EUR137m, of which EUR18m was contributed by
projects brought into service recently. 
Operating profit on ordinary activities increased by 8.6% to a record high of
EUR1,199m, the operating margin improving from 8.0% in 2011 to 8.5% in 2012. 
The Contracting division posted by far the stronger increase in operating profit
on ordinary activities, with a 25% increase, the operating margin improving from
2.3% in 2011 to 2.8% in 2012. The Construction division made another solid
contribution (4.2% operating margin). The reorganisations and efforts to raise
worksite productivity at the Public Works division yielded results in 2012,
paving the way for an improvement in the operating margin (1.3% compared with
0.2% in 2011). At the Energy division, the efforts made since 2011 continued in
the year ended, bringing about an improvement in the operating margin (3%
compared with 2.5% in 2011). Finally, at the Metal division, the high level of
activity lifted the operating margin to 3.1%, compared with 2.2% in 2011. 
Operating profit on ordinary activities contributed by the Concessions division
increased by 3.1% to EUR893m, the operating margin improving from 40.4% in 2011
to 41.1% thanks to the excellent performance achieved by APRR (EBITDA margin
increased from 69.2% in 2011 to 70% in 2012) and to the contribution made by
Public Private Partnerships brought into service at the end of 2011 and in 2012. 
Net finance costs increased by EUR96m, mainly as a result of the refinancing of
Eiffarie's debt in February 2012, the loan terms not being as favourable as
those negotiated when this refinancing was first put into place. 
Despite the higher net finance costs, the net profit (group share) increased to
EUR220m in 2012, up 7.3% from EUR205m in 2011, bolstered by the turnaround in
the operating margin, especially at the Contracting division, in line with the
roadmap drawn up by the Group. 
In January 2012, APRR issued EUR500m of six-year bonds offering a coupon of
5.125%. APRR also arranged a seven-year loan amounting to EUR75m with the EIB,
which will be used to fund the company' s investment programme. 
On 20 February 2012, Eiffarie and its subsidiary APRR signed two loan agreements
with a pool of 17 international banks. These agreements renewed for five years a
EUR0.7bn standby credit for APRR and a EUR2.8bn structured credit for Eiffarie.
This refinancing will enable APRR to distribute to its shareholders dividends
representing 50% of average free cash flows over the term of the loan, at the
same time strengthening its credit rating. Accordingly, on 26 September 2012,
Fitch Ratings assigned APRR a long-term credit rating of BBB+ with a stable
For its part, Eiffage SA i mproved its liquidity and diversified its sources of
financing thanks to a EUR75m private placement for five years. 
These operations, along with the long-term financing secured for the public
private partnerships awarded in 2012 (eight secondary schools in
Seine-Saint-Denis and "GreEn-ER" in Grenoble, part of the Campus plan), bear
testimony to the confidence of the banks and markets in the Group's
Net debt, excluding the marked to market value of the CNA debt and of the swaps
- amounted to EUR12.5bn, a decrease of EUR176m over 12 months (and of EUR744m
over 24 months). Note that most of the Group's EUR12.3bn of net debt, almost all
of which bears fixed rates, is held by the Concessions division, without
recourse against Eiffage. The net debt of the Holding company and Contracting
division is stable at EUR131m. After the decrease recorded in 2011, there was
another reduction in working capital requirements in 2012, down EUR138m,
underlining the tight cash management at the level of the Contracti ng division.
The Group has significant liquidity, amounting to EUR1.5bn and consisting of
available net cash of EUR760m and an unused credit line of EUR700m. 
Eiffage SA recorded a net profit of EUR178m in 2012 compared with EUR164m in
2011. At the General Meeting convened on 17 April 2013, the Board of Directors
will propose distributing an unchanged dividend of EUR1.20 per share. This
dividend will be paid on 30 April 2013 on the 87.162.131 shares of EUR4 nominal
each that make up the capital as well as on the shares to be issued in
connection with the capital i ncrease reserved for employees decided by the
Board of Directors on 27 February 2013. 
The order book came to EUR12.2bn at 1 January 2013, down by 9.7% compared with 1
January 2012. It is up 13% from 1 January 2011 and remains at an historically
high level. Group sales are expected to increase to EUR14.2bn in 2013, with the
Group remai ning in a position to be selective in the order intake. For this
reason, and given continuing efforts to achieve cost efficiencies and improve
work site productivity, operating profit on ordinary activities and net profit
(group share) can be expected to increase further in 2013, while there should be
another decrease in net debt. 
A more detailed presentation of the financial statements for the year ended 
31 December 2012, in French and English, is available on the company's website:
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-0- Feb/28/2013 08:25 GMT
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