APRIL : - Operating profit on ordinary activities increased by 10.4 % in 2012

APRIL recorded consolidated sales of €773.52 million in the year ended 31 December 2012, corresponding to an increase of 2.1% on a reported basis and of 1.8% pro forma, brokerage commissions and fees increasing by 1.1% to €501.68 million and insurance premiums by 4% to €271.84 million.

After a significant one-off decline in 2011, financial income recovered by nearly €10 million to €23 million or 3% of sales, in line with the level in 2010. In accordance with management guidance of a sharper increase in operating profit in the second half of the year, the operating profit on ordinary activities reached €92.81 million in 2012, up 10.4% the operating margin improving by nearly 1 percentage point to 12%. This performance reflects the fact that the increase in external charges and personnel costs was kept in check, despite an increase in taxes on compulsory and discretionary employee profit sharing, which for the Group represented a variance of more than €2 million from one year to the next.

With growth of 1.6% in brokerage commissions and fees, Health & Personal Protection recorded an increase in its operating margin on ordinary activities of 2.6 points to 18.3% of sales. Favourable marketing momentum in France, tightly controlled underwriting performances in individual as well as group health and personal protection insurance and the recovery in financial income were the main drivers behind this performance, this despite the problems experienced in the Swiss and Italian markets.
With growth of 1% in brokerage commissions and fees, Property & Casualty recorded a more contrasted performance, the operating margin on ordinary activities declining by 1.8 point to 3.9% of sales. Much of this decrease was due to the weaker business generated by the integrated distribution network following the streamlining of its branch offices and its combination with the health network under the APRIL brand.

Consolidated operating profit increased by 11.3%, while corporate income tax increased by €11 million to €35.6 million due to the higher operating profit generated by the French entities as well as the lesser relief procured by tax losses carried forward. All in all, the group's share of net profit declined by 3.7% €53.4 million in 2012, equivalent to a net margin of 6.9%, earnings per share of €1.32 and return on capital employed of 10.08%. At the forthcoming Shareholders' Meeting, the Board of Directors will table a resolution proposing to distribute a net dividend of €0.33 per share, which corresponds to a 25% payout rate, consistent with the dividend policy.

As regards the consolidated balance sheet, consolidated shareholders' equity came to €514.5 million at 31 December 2012, while gross borrowings were minimal at €3.3 million (nearly exclusively commitments to buy out minority interests) and adjusted cash was €185.5 million.

In 2012 the Group recorded a significant improvement in its operating profitability. 2013 will be an opportunity for APRIL to press ahead with its international development and to strengthen its positioning as an innovative niche player for now 25 years, so as to stand out from competitors and lay the foundations for strong growth.

APRIL will publish sales for the first quarter of 2013 on 29 April after the market closes.

About APRIL
APRIL designs, manages and distributes insurance solutions and assistance services for individuals, professionals and businesses. Founded in 1988, APRIL has nearly 4,000 members of staff, is established in 37 countries and achieved a turnover of €773.52 M in 2012. APRIL is listed on Euronext Paris (Compartment B, SRD - deferred settlement service).

Contact
Jean-Marc ATLAN [ EKNO ] / Adviser to the Chairman
+33 (0)6 07 37 20 44
jean-marc [dot] atlan[at] ekno [dot] fr