• Negative 1.5% currency impact on sales but
positive 0.3% impact in H2; negative 2.4% Group structure impact
with the disposal of Verallia North America (VNA)
*2013 figures restated in this document to reflect the impacts
of IFRS 10 and IFRS 11, and of IFRIC 21 (Levies) for the half-year
analysis.
1. Excluding capital gains and losses on disposals,
asset write-downs and material non-recurring provisions.
2. Excluding the tax impact of capital gains and
losses on disposals, asset write-downs and material non-recurring
provisions.
Volumes moved up 1.1% over the year despite retreating 0.7% in
the second half. Sales prices rose 1.1% over the year, in spite of
a less inflationary environment and declining prices for Exterior
Products in the US in the second half.
All of the Group's businesses reported organic growth in 2014.
In the second half, Exterior Solutions were affected by the
contraction in the Roofing business, while Building Distribution
and Interior Solutions were hit by the downturn in construction in
France and Germany.
- sales prices increased despite a less inflationary
environment;
- costs were scaled back by €450 million in 2014 compared to
2013, with a significant impact in Flat Glass which saw its margin
rally at 5.9% versus 2.6% in the previous year;
- capital expenditure remained in check at €1.4 billion, with a
strong focus on growth capex outside Western Europe;
- net debt was reduced to €7.2 billion thanks to an ongoing tight
rein on cash.
Performance of Group Business Sectors
Innovative Materials sales moved up 3.9% in 2014 on a
like-for-like basis, and advanced 4.2% in the second half. The
operating margin for the Business Sector widened, from 7.2% to 9.4%
(9.6% in the second half), driven by the improved performance for
Flat Glass.
- Like-for-like, Flat Glass sales were up 3.4% both over
the full year and in the second half. In Western Europe, construction markets remained
fragile with prices for commodity products - float glass - stable,
but an improved price effect owing to the growing share of high
value-added products; the automotive Flat Glass business continued
to report small gains. Healthy trading was confirmed in
Asia and emerging countries,
despite the slowdown in Brazil,
fuelled in particular by the downturn in the automotive market.
Thanks to increased cost cutting efforts, the operating margin
rallied, at 5.9% of sales in 2014 (6.3% in the second half) from
2.6% in the previous year.
- High-Performance
Materials (HPM) delivered a 4.5%
year-on-year improvement, up 5.0% in the second half. Performance
gains were recorded in all regions, particularly in North America, buoyed by continued upbeat
trends in industrial markets. All HPM businesses delivered good
organic growth, including Ceramics with a favorable basis for
comparison. The operating margin for the year widened to 13.4% from
12.7% in 2013.
Boosted by its first-half performance,
Construction Products (CP) sales
moved up 2.9% on a like-for-like basis in 2014 and 0.4% in the
second half, owing chiefly to a deterioration in the US Exterior
Solutions market. The operating margin improved slightly, at 9.0%
versus 8.8% in 2013.
- Interior Solutions reported 4.7% organic growth, on the
back of continued strong volume and price momentum in the US and a
good performance in Asia and
emerging countries. In Western
Europe, after a first quarter buoyed by mild winter weather,
trading proved resilient thanks to our strategic positioning in
energy efficiency and despite the downward pressure on prices in a
deflationary environment. The operating margin advanced during both
halves of the year, coming out at 8.8% for 2014 compared to 8.3%
one year earlier.
- Exterior Solutions posted 1.0% organic growth, advancing
3.9% in the first half but retreating 1.6% in the second following
a downturn in both volumes and prices for US Exterior Products.
Pipe was boosted by export contracts and continued to improve,
despite a tougher basis for comparison in the second half and the
closure of cast iron production capacity in China in the middle of the year. Mortars
posted double-digit growth in Asia
and emerging countries, but continued to suffer from the
macroeconomic climate in Western
Europe. The operating margin held firm at 9.1% of sales
despite the sharp deterioration in Exterior Products: margin growth
was strong in both Mortars and Pipe, spurred by a positive
price-cost spread (commodities and energy).
Building Distribution posted 0.8% organic growth, helped
by mild winter weather in the first quarter and despite a 1.8%
decline in the second half due to the downturn in the French and
German markets.
In France, sales declined over
the year despite increased market share, hurt by the sharp
contraction in the new-build market and sluggish renovation
activity. Germany, which was
stable over the year, retreated in the second half amid a
persistently uncertain economic climate. The upbeat momentum in the
UK and Scandinavia was confirmed over the year as a whole.
Brazil continued to report good
growth despite the general economic slowdown in the country.
Operating income for the Business Sector improved, at €661
million compared to €638 million in 2013, owing to strict cost
discipline and a resilient commercial margin. Although the
operating margin fell to 4.2% in the second half (versus 4.6% in
2013), hit by slack volumes in France and Germany, Building Distribution still managed
to deliver annual margin growth, at 3.5% versus 3.4% in 2013.
Packaging (Verallia) sales were up 1.6% on a
like-for-like basis. In Europe,
volumes rose 1.4% over the year, thereby confirming the recovery
begun in the six months to June 30 in
a competitive pricing environment. Latin
America continued to deliver good growth, with price trends
reflecting the impact of inflation.
Excluding VNA, which was sold on April
11, 2014, the operating margin came in at 9.6%. The margin
was 10.6% in the second half, confirming the upturn in results in
line with expectations, after a first half affected by
non-recurring items.
Analysis by geographic area
Over the year as a whole, the Group's organic growth was powered
by Asia and emerging markets.
Profitability improved despite a slowdown in France and the deterioration in the US,
attributable solely to Exterior Products.
- France posted negative
1.3% organic growth as volumes declined in the construction market,
even though the Group continues to outperform its markets. Despite
a further decline in volumes, the operating margin held firm at
4.7% (5.0% in 2013).
- Other Western European countries reported 2.6%
like-for-like sales growth, with sales stable in the second half
due to the strong downturn in Germany. The recovery over the year reflects
good market conditions in the UK and to a lesser extent in
Scandinavia. Trading improved in Southern European countries and
particularly Spain, while volumes
in Benelux were hit by restructuring operations in Flat Glass. The
operating margin rallied, at 5.3% from 4.3% previously.
- North America saw
continued brisk trading on the construction market and a
significant improvement in the Group's industrial activities, as
the region posted 2.8% organic growth. Only Exterior Products had a
negative impact on sales and margin. The operating margin came in
at 10.4% in 2014 (excluding VNA: 10.1% versus 11.7% in 2013).
- Asia and emerging
countries reported good 7.7% organic growth over the year, and
4.9% growth in the second half. This slower pace of growth was
mainly seen in Brazil,
Eastern Europe (Poland and the Czech
Republic) and in China,
which was hit by a plant closure. In contrast, trading in
India and Mexico picked up pace during the year. The
operating margin was up from 8.0% to 9.3% in 2014.
2014 consolidated financial statements
The Group's consolidated financial statements were approved and
adopted by Saint-Gobain's Board of Directors at its meeting of
February 25, 2015. The comparative
income statement for 2013 shown below has been restated to reflect
the impacts of IFRS 10 (Consolidated Financial Statements) and IFRS
11 (Joint Arrangements) and of IFRIC 21 (Levies) for the
half-year analysis.
Key consolidated data are shown below:
2013 % 2013
restated* 2014 change published
EURm (A) (B) (B)/(A)
Sales and ancillary revenue 41,761 41,054 -1.7% 42,025
Operating income 2,754 2,797 1.6% 2,764
Operating depreciation and amortization 1,407 1,354 -3.8% 1,425
EBITDA (operating income + operating
depr./amort.) 4,161 4,151 -0.2% 4,189
Non-operating costs (490) (190) -61.2% (492)
Capital gains and losses on disposals,
asset write-downs, corporate acquisition
fees and earn-out payments (381) (398) 4.5% (381)
Business income 1,883 2,209 17.3% 1,891
Net financial expense (790) (696) -11.9% (795)
Income tax (463) (513) 10.8% (476)
Share in net income of associates 2 0 n.s. 11
Income before minority interests 632 1,000 58.2% 631
Minority interests 37 47 27.0% 36
Net income 595 953 60.2% 595
Earnings per share[2] (in EUR) 1.08 1.70 57.4% 1.08
Recurring[1] net income 1,027 1,103 7.4% 1,027
Recurring[1] earnings per share[2] (in
EUR) 1.86 1.97 5.9% 1.86
Cash flow from operations[3] 2,520 2,510 -0.4% 2,537
Cash flow from operations excl. capital
gains tax[4] 2,493 2,439 -2.2% 2,511
Capital expenditure 1,317 1,437 9.1% 1,354
Free cash flow 1,176 1,002 -14.8% 1,157
(excluding capital gains tax)[4]
Investments in securities 102 95 -6.9% 100
Net debt 7,513 7,221 -3.9% 7,521
* 2013 figures restated to reflect the
impacts of IFRS 10 and IFRS 11.
- Excluding capital gains and losses on disposals, asset
write-downs and material non-recurring provisions.
- Calculated based on the number of shares outstanding (excluding
treasury stock) at December 31
(560,385,966 shares in 2014 versus 551,417,617 shares in 2013)
following the cancellation of 6,100,000 shares on November 28, 2014.
- Excluding material non-recurring provisions.
- Excluding the tax impact of capital gains and losses on
disposals, asset write-downs and material non-recurring provisions.
The comments below were drawn up based on restated 2013
figures.
Consolidated sales were down 1.7%. The currency
impact was a negative 1.5%, resulting primarily from the fall
in Latin American and Scandinavian currencies against the euro. The
currency impact breaks down as a negative 3.2% impact in the first
half and a positive 0.3% effect in the second, owing mainly to the
depreciation of the euro against the US dollar. The impact
of changes in Group structure was a negative
2.4%, primarily reflecting the disposal of VNA on April 11, 2014, along with the sale of certain
non-core Exterior Solutions and Building Distribution businesses.
Like-for-like (comparable Group structure and exchange rates),
sales moved up 2.2%, with both sales prices and
volumes gaining 1.1%.
Operating income rose 1.6%, despite the negative currency
and Group structure impact (up 7.0% like-for-like excluding VNA).
This drove a rise in the operating margin, which came in at 6.8% of
sales from 6.6% in the prior-year period, bolstered by cost cutting
efforts. Excluding Building Distribution, the operating margin
increased from 8.9% to 9.3% in 2014.
The EBITDA margin (EBITDA = operating income
plus operating depreciation and amortization) stood at 10.1% of
sales (10.0% in 2013).
Non-operating costs fell sharply to €190 million (€490
million in 2013), reflecting a provision write-back in the first
half linked to the reduction in the automotive Flat Glass fine,
along with lower restructuring costs, particularly in second-half
2014. Non-operating costs include a €90 million accrual to the
provision for asbestos-related litigation involving CertainTeed in
the US, unchanged from 2013.
The net balance of capital gains and losses on disposals,
asset write-downs and corporate acquisition fees was a negative
€398 million, versus a negative €381 million in 2013. This line
includes €408 million in gains on disposals of assets relating
mainly to the VNA divestment, and €802 million in asset
write-downs, of which €350 million was recorded in the second half.
Most of the write-downs taken in the six months to December 31 reflect restructuring plans in
Europe and the €235 million
write-down recorded against goodwill and brands relating to Lapeyre
(Building Distribution) following the deterioration in the French
market in the second half. Business income jumped 17.3%.
Net financial expense improved sharply, at €696 million
versus €790 million in 2013, with the cost of gross debt falling to
4.3% at December 31, 2014 from 4.4%
at end-2013. Income tax expense on recurring net income came out at
34% versus 32% in 2013. Income tax increased from €463
million to €513 million, chiefly as a result of the improvement in
pre-tax earnings.
Recurring net income (excluding capital gains and losses,
asset write-downs and material non-recurring provisions) jumped
7.4% to €1,103 million.
Net income soared 60.2% to €953 million.
Capital expenditure totaled €1,437 million, in line with
forecasts, representing 3.5% of sales (3.2% in 2013).
Cash flow from operations held firm at €2,510 million
(€2,520 million in 2013). Before the tax impact of capital gains
and losses on disposals, asset write-downs and material
non-recurring provisions, cash flow from operations retreated 2.2%
to €2,439 million.
Due to the acceleration in the capital spending program compared
to the low point in 2013, free cash flow (cash flow from
operations less capital expenditure) was down 10.8% to
€1,073 million. Before the tax impact of capital gains and
losses on disposals, asset write-downs and material non-recurring
provisions, free cash flow dropped 14.9% to €1,002 million, at
2.4% of sales (2.8% of sales in 2013).
Operating working capital requirements (WCR) continued to
improve in value terms (down €61 million to €3,356 million),
representing 30 days' sales or 29 days' sales at constant exchange
rates. This equals the record 29-day low at end-2013 and testifies
to the Group's ongoing efforts to main strict cash discipline.
Investments in securities totaled just €95 million (€102
million in 2013) for small acquisitions focused on the Group's
strategic growth drivers.
Net debt continues to fall, down 3.9% (to €7.2 billion)
versus December 31, 2013, after
decreasing 11.4% in the prior-year period. Net debt represents 39%
of consolidated equity, versus 42% at end-2013.
The net debt to EBITDA ratio was 1.7 compared to 1.8 at
December 31, 2013.
Update on asbestos claims in the US
Some 4,000 claims were filed against CertainTeed in 2014,
slightly less than in 2013 (4,500). At the same time, some 6,500
claims were settled (versus 4,500 in 2013) and around 3,500 claims
were placed in inactive dockets. As a result, the total number of
outstanding claims at December 31, 2014 was around 37,000, a
decrease of approximately 6,000 compared to end-2013.
A total of USD 68 million in
indemnity payments were made in the 12 months to
December 31, 2014, down on the USD
88 million paid out in 2013 due to certain settlements
relating to 2012 that were postponed to 2013. In light of these
trends and of the €90 million provision accrual in 2014, the total
provision for CertainTeed's asbestos-related claims amounted to
USD 571 million at December 31, 2014 compared to USD 561 million at December 31, 2013.
Dividend
At its meeting of February 25,
Compagnie de Saint-Gobain's Board of Directors decided to recommend
to the June 4, 2015 Shareholders'
Meeting a dividend of €1.24 per
share, 50% payable in cash and 50% in cash or in
shares, at
shareholders' discretion.
For the payment of dividends in shares, the Board will recommend
that the shareholders set the issue price for the new shares by
applying a 10% discount to the average opening share price during
the 20 trading days preceding the June 4,
2015 Shareholders' Meeting, after having deducted the
dividend amount.
The dividend represents 62%of
recurring net income, and a dividend yield of 3.5%
based on the closing share price at December
31, 2014 (€35.230).
The ex-date, set at June 10, will
be followed by an option period of 15 days, running from
June 10 to June 24.
Consequently, the dividend will be paid in cash or in shares on
July 3, 2015.
2015 strategic priorities
2015 will be dedicated to firmly rolling out the strategy
defined at the Group's November 27,
2013 Investor Meeting according to its three main goals:
- Improving the Group's growth potential by focusing more sharply
on high value-added, asset-light activities; expanding its
footprint in emerging countries; and further strengthening its
business portfolio;
- Creating a stronger presence in differentiated products and
solutions, with R&D efforts focused on local and co-developed
projects with its customers and on the fast-growing markets of
sustainable habitat and industrial applications. Marketing
initiatives will also be stepped up, with an ambitious digital
strategy and the development of ever stronger brands;
- Continuing to work towards management's priorities of achieving
operational excellence, and further progress in Corporate Social
Responsibility (CSR); attractive returns for shareholders; and a
persistently solid financial structure.
The Group's plan to acquire a controlling interest in Sika
announced on December 8, 2014 is
fully aligned with this strategy. Sika's range of niche products
presents an excellent fit with Saint-Gobain's own product offer,
particularly chemical products for the construction market and
adhesives. Sika's products and services draw on extensive
technological expertise in waterproofing, soundproofing, sealing
and bonding, and protecting and reinforcing structures. The
transaction is subject to clearance from the competent anti-trust
authorities.
Over the past few years, Sika has delivered remarkable growth
(more than 8% average annual growth between 2007 and 2013) and
capacity for development in emerging countries (38% of its sales
are made in emerging countries). This strategic move therefore
meets Saint-Gobain's dual aim of continuing to develop in emerging
markets, Asia and the US (where
Sika has a strong presence) and focusing on highly technical
solutions offering significant value added.
Saint-Gobain wishes to continue developing the company with
respect for its corporate culture, reputation and historical roots.
Given the complementary nature of both groups' activities, the deal
is expected to generate a large number of growth synergies, thanks
chiefly to the geographic fit of our industrial sites and the
combination of very strong brands. The synergies are estimated at
€100 million as from the second year (2017) and at €180 million per
year as from 2019.
On the same date as it announced its plan to acquire a
controlling interest in Sika (December 8,
2014), the Group also unveiled its intention to divest its
entire Packaging business (Verallia). This move is in line with
Saint-Gobain's aim to reorganize its portfolio in order to increase
its growth potential.
Following these two transactions, the Group's profile will be
greatly enhanced and refocused on its target markets.
2015 outlook
In 2015, the Group should benefit from continued upbeat trading
in the US as well as in Asia and
emerging markets. In Western
Europe, the recovery will be dampened by the decline in
France. The first half will be
impacted by a tough 2014 basis for comparison. Household
consumption is expected to remain firm.
Saint-Gobain will continue to keep a close watch on cash and
financial strength and aims to maintain a high level of free cash
flow. In particular, it will:
- keep its priority focus on increasing sales prices
amid a small rise in raw material costs and energy deflation;
- unlock additional savings of €400 million (calculated on
the 2014 cost base) thanks to its ongoing cost cutting
program;
- pursue a capital expenditure program of under €1,600
million, focused on growth capex outside Western Europe;
- renew its commitment to invest in R&D in order
to support its differentiated, high value-added strategy.
In this setting, the Group is targeting a further
like-for-like improvement in operating income for 2015 and a
continuing high level of free cash flow.
In line with its strategy, Saint-Gobain will firmly pursue
its plan to divest Verallia and also intends to finalize the
acquisition of a controlling interest
in Sika in the second half of 2015, as announced in
December 2014.
Financial calendar
- Sales for the first quarter
of 2015:
April 28, 2015,
after close of trading on the Paris Bourse.
- First-half
2015 results: July
29, 2015, after close of trading on
the Paris Bourse.
An information meeting for analysts and investors will be
held at 8:30 a.m. (GMT+1) on February 26, 2015
and will be webcast live on Saint-Gobain's website,
at:
http://www.saint-gobain.com
Important disclaimer -forward-looking
statements:
This press release contains forward-looking statements with
respect to Saint-Gobain's financial condition, results, business,
strategy, plans and outlook. Forward-looking statements are
generally identified by the use of the words "expect",
"anticipate", "believe", "intend", "estimate", "plan" and similar
expressions. Although Saint-Gobain believes that the expectations
reflected in such forward-looking statements are based on
reasonable assumptions as at the time of publishing this document,
investors are cautioned that these statements are not guarantees of
its future performance. Actual results may differ materially from
the forward-looking statements as a result of a number of known and
unknown risks, uncertainties and other factors, many of which are
difficult to predict and are generally beyond the control of
Saint-Gobain, including but not limited to the risks described in
Saint-Gobain's registration document available on its website
(http://www.saint-gobain.com). Accordingly, readers of this
document are cautioned against relying on these forward-looking
statements. These forward-looking statements are made as of the
date of this document. Saint-Gobain disclaims any intention or
obligation to complete, update or revise these forward-looking
statements, whether as a result of new information, future events
or otherwise.
This press release does not constitute any offer to purchase
or exchange, nor any solicitation of an offer to sell or exchange
securities of Saint-Gobain.
For further information, please visit
http://www.saint-gobain.com.
Appendix 1: Results by business sector and geographic area -
Full Year
2013: restated accounts including IFRS 10, 11 and IFRIC 21
Change on
a
Change on comparable
2013 Change on a structure
Restated 2014 an actual comparable and
(in EUR (in structure structure currency
m) EUR m) basis basis basis 2013
I. SALES
Published Impact
by sector and division:
Innovative Materials [1] 8.893 9.115 +2.5% +2.2% +3.9% 9,070 (177)
Flat Glass 4.818 4.893 +1.6% +2.0% +3.4% 4.996 (178)
High-Performance Materials 4.086 4.232 +3.6% +2.3% +4.5% 4.086 0
Construction Products [1] 11.427 11.361 -0.6% +0.5% +2.9% 11,525 (98)
Interior Solutions 5,905 6.056 +2.6% +2.5% +4.7% 5.905 0
Exterior Solutions 5,579 5,370 -3.7% -1.7% +1.0% 5.678 (99)
Building Distribution 18,773 18.806 +0.2% +0.5% +0.8% 18.773 0
Packaging (Verallia) 3,616 2.705 -25.2% -2.1% +1.6% 3.616 0
Including VNA [(a)] 1,181 314 1.181 0
Internal sales and misc. (948) (933) n.m. n.m. n.m. (959) 11
Group Total 41.761 41.054 -1.7% +0.7% +2.2% 42.025 (264)
[1]including intra-sector
eliminations
by geographic area:
France 11.682 11.526 -1.3% -1.3% -1.3% 11.743 (61)
Other Western
European countries 17.537 17.971 +2.5% +2.6% +2.6% 17.587 (50)
North America 5.896 5.038 -14.6% +2.1% +2.8% 5.917 (21)
Emerging countries
and Asia 8.406 8.455 +0.6% +0.7% +7.7% 8.564 (158)
Internal sales (1,760) (1,936) n.m. n.m. n.m. (1,786) 26
Group Total 41.761 41.054 -1.7% +0.7% +2.2% 42.025 (264)
2013 2014 Change on 2013
Restated (in an actual (in % 2014
(in EUR EUR structure of (in % of
m) m) basis sales) sales) 2013
II. OPERATING INCOME
Published Impact
by sector and division:
Innovative Materials 643 854 +32.8% 7.2% 9.4% 658 (15)
Flat Glass 123 289 +135.0% 2.6% 5.9% 138 (15)
High-Performance Materials 520 565 +8.7% 12.7% 13.4% 520 0
Construction Products 1.002 1,020 +1.8% 8.8% 9.0% 999 3
Interior Solutions 488 533 +9.2% 8.3% 8.8% 480 8
Exterior Solutions 514 487 -5.3% 9.2% 9.1% 519 (5)
Building Distribution 638 661 +3.6% 3.4% 3.5% 638 0
Packaging (Verallia) 463 275 -40.6% 12.8% 10.2% 462 1
Including VNA [(a)] 196 45 196 0
Misc. 8 (13) n.m. n.m. n.m. 7 1
Group Total 2.754 2.797 +1.6% 6.6% 6.8% 2.764 (10)
by geographic area:
France 582 540 -7.2% 5.0% 4.7% 582 0
Other Western
European countries 748 946 +26.5% 4.3% 5.3% 746 2
North America 750 524 -30.1% 12.7% 10.4% 751 (1)
Emerging countries
and Asia 674 787 +16.8% 8.0% 9.3% 685 (11)
Group Total 2.754 2.797 +1.6% 6.6% 6.8% 2.764 (10)
2013 2014 Change on 2013
Restated (in an actual (in % 2014
(in EUR EUR structure of (in % of
m) m) basis sales) sales) 2013
III. BUSINESS INCOME
Published Impact
by sector and division:
Innovative Materials 237 717 +202.5% 2.7% 7.9% 249 (12)
Flat Glass (223) 245 +209.9% -4.6% 5.0% (210) (13)
High-Performance Materials 460 472 +2.6% 11.3% 11.2% 459 1
Construction Products 914 769 -15.9% 8.0% 6.8% 912 2
Interior Solutions 446 483 +8.3% 7.6% 8.0% 439 7
Exterior Solutions 468 286 -38.9% 8.4% 5.3% 473 (5)
Building Distribution 329 186 -43.5% 1.8% 1.0% 329 0
Packaging (Verallia) 424 629 +48.3% 11.7% 23.3% 422 2
Including VNA [(a)] 191 43 191 0
Misc. [(b)] (21) (92) n.m. n.m. n.m. (21) 0
Group Total 1.883 2.209 +17.3% 4.5% 5.4% 1.891 (8)
by geographic area:
France 294 691 +135.0% 2.5% 6.0% 294 0
Other Western
European countries 405 603 +48.9% 2.3% 3.4% 403 2
North America [(b)] 606 286 -52.8% 10.3% 5.7% 606 0
Emerging countries and Asia 578 629 +8.8% 6.9% 7.4% 588 (10)
Group Total 1.883 2.209 +17.3% 4.5% 5.4% 1.891 (8)
(b) after asbestos-related charge (before tax) of €90m in
2013 and in 2014
2013 2014 Change on 2013
Restated (in an actual (in % 2014
(in EUR EUR structure of (in % of
m) m) basis sales) sales) 2013
IV. CASH FLOW
Published Impact
by sector and division:
Innovative Materials 566 717 +26.7% 6.4% 7.9% 580 (14)
Flat Glass 119 237 +99.2% 2.5% 4.8% 133 (14)
High-Performance Materials 447 480 +7.4% 10.9% 11.3% 447 0
Construction Products 719 780 +8.5% 6.3% 6.9% 722 (3)
Building Distribution 420 486 +15.7% 2.2% 2.6% 420 0
Packaging (Verallia) 436 274 -37.2% 12.1% 10.1% 436 0
Including VNA [(a)] 116 27 116 0
Misc. [(b)] 379 253 n.m. n.m. n.m. 379 0
Group Total 2,520 2,510 -0.4% 6.0% 6.1% 2.537 (17)
by geographic area:
France 333 345 +3.6% 2.9% 3.0% 350 (17)
Other Western
European countries 899 900 +0.1% 5.1% 5.0% 902 (3)
North America [(b)] 526 409 -22.2% 8.9% 8.1% 526 0
Emerging countries and Asia 762 856 +12.3% 9.1% 10.1% 759 3
Group Total 2,520 2,510 -0.4% 6.0% 6.1% 2.537 (17)
(b) after asbestos-related charge (after tax) of €55m in 2013
and in 2014
2013 2014 Change on 2013
Restated (in an actual (in % 2014
(in EUR EUR structure of (in % of
m) m) basis sales) sales) 2013
V. CAPITAL EXPENDITURE
Published Impact
by sector and division:
Innovative Materials 384 418 +8.9% 4.3% 4.6% 412 (28)
Flat Glass 206 235 +14.1% 4.3% 4.8% 234 (28)
High-Performance Materials 178 183 +2.8% 4.4% 4.3% 178 0
Construction Products 424 521 +22.9% 3.7% 4.6% 433 (9)
Interior Solutions 246 282 +14.6% 4.2% 4.7% 246 0
Exterior Solutions 178 239 +34.3% 3.2% 4.5% 187 (9)
Building Distribution 205 264 +28.8% 1.1% 1.4% 205 0
Packaging (Verallia) 270 213 -21.1% 7.5% 7.9% 270 0
Including VNA [(a)] 81 19 81 0
Misc. 34 21 n.m. n.m. n.m. 34 0
Group Total 1.317 1.437 +9.1% 3.2% 3.5% 1.354 (37)
by geographic area:
France 247 300 +21.5% 2.1% 2.6% 252 (5)
Other Western
European countries 371 452 +21.8% 2.1% 2.5% 373 (2)
North America 245 220 -10.2% 4.2% 4.4% 245 0
Emerging countries and Asia 454 465 +2.4% 5.4% 5.5% 484 (30)
Group Total 1.317 1.437 +9.1% 3.2% 3.5% 1.354 (37)
2013 2014 Change on 2013
Restated (in an actual (in % 2014
(in EUR EUR structure of (in % of
VI. EBITDA m) m) basis sales) sales) 2013
Published Impact
by sector and division:
Innovative Materials 1,100 1.302 +18.4% 12.4% 14.3% 1.129 (29)
Flat Glass 425 586 +37.9% 8.8% 12.0% 454 (29)
High-Performance Materials 675 716 +6.1% 16.5% 16.9% 675 0
Construction Products 1.486 1.472 -0.9% 13.0% 13.0% 1.487 (1)
Interior Solutions 801 839 +4.7% 13.6% 13.9% 793 8
Exterior Solutions 685 633 -7.6% 12.3% 11.8% 694 (9)
Building Distribution 899 920 +2.3% 4.8% 4.9% 899 0
Packaging (Verallia) 638 442 -30.7% 17.6% 16.3% 637 1
Including VNA [(a)] 196 45 196 0
Misc. 38 15 n.m. n.m. n.m. 37 1
Group Total 4.161 4.151 -0.2% 10.0% 10.1% 4.189 (28)
by geographic area:
France 941 883 -6.2% 8.1% 7.7% 948 (7)
Other Western
European countries 1.241 1,410 +13.6% 7.1% 7.8% 1.241 0
North America 906 677 -25.3% 15.4% 13.4% 907 (1)
Emerging countries and Asia 1.073 1.181 +10.1% 12.8% 14.0% 1.093 (20)
Group Total 4.161 4.151 -0.2% 10.0% 10.1% 4.189 (28)
[(a)]VNA was sold on
April 11, 2014
Appendix 2: Results by business sector and geographic area -
Second Half
H2-2013: restated accounts including IFRS 10. 11 and IFRIC
21
Change on
a
H2 Change on comparable
2013 H2 Change on a structure
Restated 2014 an actual comparable and
(in EUR (in structure structure currency
m) EUR m) basis basis basis H2 2013
I. SALES
Published Impact
by sector and division:
Innovative Materials [1] 4.349 4.631 +6.5% +5.5% +4.2% 4.447 (98)
Flat Glass 2.380 2.495 +4.8% +4.5% +3.4% 2.477 (97)
High-Performance Materials 1.975 2.141 +8.4% +6.5% +5.0% 1.975 0
Construction Products [1] 5.750 5.718 -0.6% +0.3% +0.4% 5.801 (51)
Interior Solutions 3.035 3.102 +2.2% +2.2% +2.3% 3.035 0
Exterior Solutions 2.744 2.651 -3.4% -1.6% -1.6% 2.796 (52)
Building Distribution 9.674 9.519 -1.6% -1.3% -1.8% 9.674 0
Packaging (Verallia) 1.803 1.205 -33.2% -1.9% +1.6% 1.803 0
Including VNA [(a)] 576 0 576 0
Internal sales and misc. (466) (465) n.m. n.m. n.m. (471) 5
Group Total 21.110 20.608 -2.4% +0.5% +0.2% 21.254 (144)
[1]including intra-sector
eliminations
by geographic area:
France 5.790 5.578 -3.7% -3.5% -3.5% 5.824 (34)
Other Western
European countries 9.081 9.136 +0.6% +0.8% +0.1% 9.110 (29)
North America 2.828 2.397 -15.2% +7.7% +3.7% 2.839 (11)
Emerging countries and Asia 4.299 4.431 +3.1% +2.5% +4.9% 4.382 (83)
Internal sales (888) (934) n.m. n.m. n.m. (901) 13
Group Total 21.110 20.608 -2.4% +0.5% +0.2% 21.254 (144)
H2 H2 H2 H2
2013 2014 Change on 2013 2014
Restated (in an actual (in % (in %
(in EUR EUR structure of of
m) m) basis sales) sales) H2 2013
II. OPERATING INCOME
Published Impact
by sector and division:
Innovative Materials 344 445 +29.4% 7.9% 9.6% 346 (2)
Flat Glass 96 158 +64.6% 4.0% 6.3% 100 (4)
High-Performance Materials 248 287 +15.7% 12.6% 13.4% 246 2
Construction Products 521 512 -1.7% 9.1% 9.0% 514 7
Interior Solutions 270 282 +4.4% 8.9% 9.1% 262 8
Exterior Solutions 251 230 -8.4% 9.1% 8.7% 252 (1)
Building Distribution 440 396 -10.0% 4.6% 4.2% 423 17
Packaging (Verallia) 223 128 -42.6% 12.4% 10.6% 219 4
Including VNA [(a)] 91 0 91 0
Misc. 2 (14) n.m. n.m. n.m. 2 0
Group Total 1.530 1.467 -4.1% 7.2% 7.1% 1.504 26
by geographic area:
France 321 293 -8.7% 5.5% 5.3% 290 31
Other Western European countries 484 504 +4.1% 5.3% 5.5% 482 2
North America 345 226 -34.5% 12.2% 9.4% 346 (1)
Emerging countries and Asia 380 444 +16.8% 8.8% 10.0% 386 (6)
Group Total 1.530 1.467 -4.1% 7.2% 7.1% 1.504 26
H2 H2 H2
2013 2014 Change on 2013 H2
Restated (in an actual (in % 2014
(in EUR EUR structure of (in % of
m) m) basis sales) sales) H2 2013
III. BUSINESS INCOME
Published Impact
by sector and division:
Innovative Materials 150 358 n.m. 3.4% 7.7% 151 (1)
Flat Glass (52) 114 n.m. -2.2% 4.6% (48) (4)
High-Performance Materials 202 244 +20.8% 10.2% 11.4% 199 3
Construction Products 407 446 +9.6% 7.1% 7.8% 399 8
Interior Solutions 253 248 -2.0% 8.3% 8.0% 246 7
Exterior Solutions 154 198 +28.6% 5.6% 7.5% 153 1
Building Distribution 173 81 -53.2% 1.8% 0.9% 156 17
Packaging (Verallia) 205 114 -44.4% 11.4% 9.5% 201 4
Including VNA [(a)] 87 0 87 0
Misc. [(b)] 9 (50) n.m. n.m. n.m. 10 (1)
Group Total 944 949 +0.5% 4.5% 4.6% 917 27
by geographic area:
France 121 (5) -104.1% 2.1% -0.1% 90 31
Other Western
European countries 299 363 +21.4% 3.3% 4.0% 298 1
North America (a) 191 176 -7.9% 6.8% 7.3% 190 1
Emerging countries and Asia 333 415 +24.6% 7.7% 9.4% 339 (6)
Group Total 944 949 +0.5% 4.5% 4.6% 917 27
(b) after asbestos-related charge (before tax) of €45m in
H2-2013 and in H2-2014
H2 H2 H2
2013 2014 Change on 2013 H2
Restated (in an actual (in % 2014
(in EUR EUR structure of (in % of
m) m) basis sales) sales) H2 2013
IV. CASH FLOW
Published Impact
by sector and division:
Innovative Materials 314 373 +18.8% 7.2% 8.1% 319 (5)
Flat Glass 97 132 +36.1% 4.1% 5.3% 102 (5)
High-Performance Materials 217 241 +11.1% 11.0% 11.3% 217 0
Construction Products 421 411 -2.4% 7.3% 7.2% 418 3
Building Distribution 308 287 -6.8% 3.2% 3.0% 297 11
Packaging (Verallia) 223 151 -32.3% 12.4% 12.5% 221 2
Including VNA [(a)] 53 0 54 (1)
Misc. [(b)] 136 90 n.m. n.m. n.m. 136 0
Group Total 1.402 1.312 -6.4% 6.6% 6.4% 1.391 11
by geographic area:
France 181 211 +16.6% 3.1% 3.8% 170 11
Other Western
European countries 542 461 -14.9% 6.0% 5.0% 544 (2)
North America (a) 270 173 -35.9% 9.5% 7.2% 270 0
Emerging countries and Asia 409 467 +14.2% 9.5% 10.5% 407 2
Group Total 1.402 1.312 -6.4% 6.6% 6.4% 1.391 11
(b) after asbestos-related charge (after tax) of €28m in
H2-2013 and in H2-2014
H2 H2 H2
2013 2014 Change on 2013 H2
Restated (in an actual (in % 2014
(in EUR EUR structure of (in % of
m) m) basis sales) sales) H2 2013
V. CAPITAL EXPENDITURE
Published Impact
by sector and division:
Innovative Materials 215 289 +34.4% 4.9% 6.2% 219 (4)
Flat Glass 117 160 +36.8% 4.9% 6.4% 121 (4)
High-Performance Materials 98 129 +31.6% 5.0% 6.0% 98 0
Construction Products 294 371 +26.2% 5.1% 6.5% 301 (7)
Interior Solutions 165 203 +23.0% 5.4% 6.5% 165 0
Exterior Solutions 129 168 +30.2% 4.7% 6.3% 136 (7)
Building Distribution 137 188 +37.2% 1.4% 2.0% 137 0
Packaging (Verallia) 160 127 -20.6% 8.9% 10.5% 160 0
Including VNA [(a)] 38 0 38 0
Misc. 18 13 n.m. n.m. n.m. 18 0
Group Total 824 988 +19.9% 3.9% 4.8% 835 (11)
by geographic area:
France 177 220 +24.3% 3.1% 3.9% 181 (4)
Other Western
European countries 244 313 +28.3% 2.7% 3.4% 246 (2)
North America 132 137 +3.8% 4.7% 5.7% 132 0
Emerging countries and Asia 271 318 +17.3% 6.3% 7.2% 276 (5)
Group Total 824 988 +19.9% 3.9% 4.8% 835 (11)
H2 H2 H2
2013 2014 Change on 2013 H2
Restated (in an actual (in % 2014
(in EUR EUR structure of (in % of
VI. EBITDA m) m) basis sales) sales) H2 2013
Published Impact
by sector and division:
Innovative Materials 566 676 +19.4% 13.0% 14.6% 577 (11)
Flat Glass 240 312 +30.0% 10.1% 12.5% 252 (12)
High-Performance Materials 326 364 +11.7% 16.5% 17.0% 325 1
Construction Products 760 740 -2.6% 13.2% 12.9% 755 5
Interior Solutions 425 436 +2.6% 14.0% 14.1% 417 8
Exterior Solutions 335 304 -9.3% 12.2% 11.5% 338 (3)
Building Distribution 569 526 -7.6% 5.9% 5.5% 552 17
Packaging (Verallia) 310 212 -31.6% 17.2% 17.6% 306 4
Including VNA [(a)] 91 0 91 0
Misc. 17 0 n.m. n.m. n.m. 16 1
Group Total 2.222 2.154 -3.1% 10.5% 10.5% 2.206 16
by geographic area:
France 502 464 -7.6% 8.7% 8.3% 475 27
Other Western
European countries 727 736 +1.2% 8.0% 8.1% 726 1
North America 423 305 -27.9% 15.0% 12.7% 424 (1)
Emerging countries and Asia 570 649 +13.9% 13.3% 14.6% 581 (11)
Group Total 2.222 2.154 -3.1% 10.5% 10.5% 2.206 16
[(a)]VNA was sold on
April 11, 2014
Appendix 3: Sales by business sector and geographic area -
Fourth Quarter
Q4 2013: restated accounts including IFRS 10, 11 and IFRIC
21
Change on
a
Q4 Change on comparable
2013 Q4 Change on a structure
Restated 2014 an actual comparable and
(in EUR (in structure structure currency
m) EUR m) basis basis basis Q4 2013
I. SALES
Published Impact
by sector and division:
Innovative Materials [1] 2.155 2.345 +8.8% +7.7% +5.0% 2.205 (50)
Flat Glass 1.193 1.272 +6.6% +6.1% +4.6% 1.243 (50)
High-Performance Materials 965 1.076 +11.5% +9.3% +5.2% 965 0
Construction Products [1] 2.786 2.818 +1.1% +2.2% +1.2% 2.808 (22)
Interior Solutions 1.520 1.551 +2.0% +2.0% +1.2% 1.520 0
Exterior Solutions 1.279 1.285 +0.5% +2.5% +1.4% 1.302 (23)
Building Distribution 4.796 4.722 -1.5% -1.4% -1.8% 4.796 0
Packaging (Verallia) 876 589 -32.8% -4.3% -0.9% 876 0
Including VNA 261 0 261 0
Internal sales and misc. (231) (236) n.m. n.m. n.m. (233) 2
Group Total 10.382 10.238 -1.4% +1.3% +0.5% 10.452 (70)
[1]including intra-sector
eliminations
by geographic area:
France 2.974 2.854 -4.0% -3.7% -3.7% 2.993 (19)
Other Western
European countries 4.440 4.463 +0.5% +0.7% +0.1% 4.451 (11)
North America 1.302 1.163 -10.7% +12.9% +4.3% 1.308 (6)
Emerging countries and Asia 2.121 2.214 +4.4% +3.4% +5.0% 2.162 (41)
Internal sales (455) (456) n.m. n.m. n.m. (462) 7
Group Total 10.382 10.238 -1.4% +1.3% +0.5% 10.452 (70)
Appendix 4: Consolidated balance sheet
2013: restated accounts including IFRS 10, 11 and IFRIC 21
Dec 31, 2013 Dec 31, 2014 Dec 31, 2013
in EUR million Restated Published Impact
Assets
Goodwill 10.401 10.462 10.413 (12)
Other intangible assets 3.128 3.085 3.131 (3)
Property, plant and equipment 12.438 12.657 12.635 (197)
Investments in associates 384 386 216 168
Deferred tax assets 1.125 1.348 1.125 0
Other non-current assets 454 646 407 47
Non-current assets 27.930 28.584 27.927 3
Inventories 5.953 6.292 5.997 (44)
Trade accounts receivable 4.857 4.923 4.882 (25)
Current tax receivable 236 156 238 (2)
Other accounts receivable 1.315 1.356 1.317 (2)
Assets held for sale -
Discontinued operations 974 0 974 0
Cash and cash equivalents 4.350 3.493 4.391 (41)
Current assets 17.685 16.220 17.799 (114)
Total assets 45.615 44.804 45.726 (111)
Liabilities and Shareholders' equity
Capital stock 2.221 2.248 2.221 0
Additional paid -
in capital and legal reserve 6.265 6.437 6.265 0
Retained earnings and net income for the year 10.677 10.411 10.661 16
Cumulative translation adjustments (1,481) (953) (1,481) 0
Fair value reserves 7 (63) 7 0
Treasury stock (147) (67) (147) 0
Shareholders' equity 17.542 18.013 17.526 16
Minority interests 345 405 344 1
Total equity 17.887 18.418 17.870 17
Long-term debt 9.362 8.713 9.395 (33)
Provisions for pensions
and other employee benefits 2.783 3.785 2.785 (2)
Deferred tax liabilities 715 634 712 3
Provisions for other liabilities and charges 2.185 1.225 2.189 (4)
Non-current liabilities 15.045 14.357 15.081 (36)
Current portion of long-term debt 1.707 1.389 1.721 (14)
Current portion of provisions for
other liabilities and charges 477 409 479 (2)
Trade accounts payable 5.897 6.062 5.928 (31)
Current tax liabilities 66 97 67 (1)
Other accounts payable 3.269 3.460 3.311 (42)
Liabilities held for sale -
Discontinued operations 473 0 473 0
Short-term debt and bank overdrafts 794 612 796 (2)
Current liabilities 12.683 12.029 12.775 (92)
Total equity and liabilities 45.615 44.804 45.726 (111)
Appendix 5: Consolidated cash flow statement
2013: restated accounts including IFRS 10, 11 and IFRIC 21
(in EUR million) 2013 2014 2013
Restated Published Impact
Net income attributable to equity holders of
the parent 595 953 595 0
Minority interests in net income 37 47 36 1
Share in net income of associates, net of
dividends received (3) (29) (3) 0
Depreciation, amortization and impairment of
assets 1,879 2,132 1,897 (18)
Gains and losses on disposals of assets (99) (408) (99) 0
Unrealized gains and losses arising from
changes in fair value and share-based payments 34 2 34 0
Changes in inventories (133) (270) (135) 2
Changes in trade accounts receivable and
payable, and other accounts receivable and
payable 23 70 22 1
Changes in tax receivable and payable (8) 45 (8) 0
Changes in deferred taxes and provisions for
other liabilities and charges (154) (1,179) (153) (1)
Net cash from operating activities 2,171 1,363 2,186 (15)
Purchases of property, plant and equipment [
2013: (1,317), 2014: (1,437) ] and intangible
assets (1,419) (1,568) (1,456) 37
Purchases of property, plant and equipment in
finance lease (18) (12) (18) 0
Increase (decrease) in amounts due to suppliers
of fixed assets (8) 12 (12) 4
Acquisitions of shares in consolidated
companies [ 2013: (65), 2014: (69) ], net of
debt acquired (84) (131) (66) (18)
Acquisitions of other investments (37) (7) (37) 0
Increase in investment-related liabilities 6 17 6 0
Decrease in investment-related liabilities (3) (6) (3) 0
Investments (1,563) (1,695) (1,586) 23
Disposals of property, plant and equipment and
intangible assets 190 93 191 (1)
Disposals of shares in consolidated companies,
net of cash divested 153 1,034 153 0
Disposals of other investments and other
divestments 0 0 0 0
Divestments 343 1,127 344 (1)
Increase in loans and deposits (59) (157) (54) (5)
Decrease in loans and deposits 42 67 42 0
Net cash used in investing activities /
divestments (1,237) (658) (1,254) 17
Issues of capital stock 662 412 662 0
Minority interests' share in capital increases
of subsidiaries 4 12 4 0
(Acquisitions) disposals of minority interests 13 (19) 13 0
Changes in investment related liabilities
following the exercise of put options of
minority 0 4 0 0
(Increase) decrease in treasury stock 31 (137) 31 0
Dividends paid (654) (685) (654) 0
Dividends paid to minority shareholders of
consolidated subsidiaries and increase
(decrease) in dividends payable (58) (37) (61) 3
Cash flows from (used in) financing activities (2) (450) (5) 3
Increase (decrease) in net debt 932 255 927 5
Net effect of exchange rate changes on net debt 49 30 48 1
Net effect from changes in fair value on net
debt (7) 7 (7) 0
Net debt classified as assets and liabilities
held for sale 1 0 1 0
Net debt at beginning of year (8,488) (7,513) (8,490) 2
Net debt at end of year (7,513) (7,221) (7,521) 8
Appendix 6: External sales by business sector and by
geographic area
FY 2014, in % of total sales
Innovative Construction Building Packaging
Materials Products Distribution Verallia Holdings Total
France 2.4% 3.6% 18.9% 1.7% 0.1% 26.7%
Germany 2.1% 2.0% 4.9% 1.0% - 10.0%
United Kingdom 0.7% 1.8% 7.4% - - 9.9%
Scandinavia 0.6% 1.9% 8.7% - - 11.2%
other Western European countries 2.6% 3.1% 3.1% 2.2% - 11.0%
North America 4.4% 5.8% 0.8% 0.8% - 11.8%
Latin America 3.2% 2.3% 1.1% 0.6% - 7.2%
Asia 3.8% 2.1% - - - 5.9%
Eastern Europe 1.9% 1.8% 0.8% 0.3% - 4.8%
Middle East & Africa 0.2% 1.3% - - - 1.5%
Total 21.9% 25.7% 45.7% 6.6% 0.1% 100%
Analyst/Investor relations Press relations
Gaetano Terrasini +33-1-47-62 32-52 Sophie Chevallon +33-1-47-62-30-48
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Marine Huet +33-1-47-62-30-93