Paris, 30 March 2016

ANNUAL RESULTS 2015
Targets and forecasts exceeded

594,000 customer sites acquired in France
+25.5% revenue growth to €1,016.5 M
+40% growth in Current Operating Income at €34 M
Proposed dividend per share of €0.20

        
in millions of euros  31/12/15   31/12/14 (restated*) Change
         
12 Month Revenue from Ordinary Business   1,016.5   809.9 +25.5%
Of which Revenue excluding Energy Management  1,016.9   809.6 -
Of which Margin on Energy Management business  (0.3)   0.4 -
           
Gross margin   148.5   120.3 +23.4%
           
Current operating income   34.0   24.2 +40.4%
           
Net income, Group share   27.2   15.2 +78.7%
Earnings per share   €0.67   €0.38 -

(*)Retrospective application of IFRIC 21

Today's Board of Directors has approved the 2015 annual consolidated accounts. The audit procedures on the consolidated accounts have been completed and the audit report for the certification of the financial statements is being issued.

Growing commercial success

Direct Energie, the 3rd French electricity and gas player, recorded revenue slightly over €1 billion, with strong growth of 25.5% compared to 2014. Over the entire 2015 financial year, the Group acquired 594,000 customer sites in France, including 179,000 just in the last quarter. This commercial performance, exceeding the initial objective then the revised objective, was supported by innovative commercial offers, tailored to customers' needs and by the Group's top-rate customer relations.

At 31 December 2015, the Group's portfolio in France was 1,591,000 customer sites, including 1,248,000 electricity customers and 343,000 gas customers. Professional customers represented 16% of the portfolio.

Strong improvement to net profitability

Despite a regulatory framework that still does not offer a level playing field for historical suppliers and new entrants, profitability is still improving thanks to:

  • The +23.4% increase in the gross margin, to €148.5 M under the effect of a sourcing strategy adapted to take advantage of falling wholesale prices
  • The solid performance of the sale of value added services
  • The further growth in the customer portfolio which continued to generate significant economies of scale, thus improving management costs
  • Rigorous management of acquisition costs and marketing expenses.

Current operating income shows an increase of +40.4%, at €34.0 M compared to €24.2 M for the previous year.

After integrating the impact of changes in the fair value of energy derivatives, and the increase in the cost of net debt following the setting up of additional financing for €120 M, net income was €27.2 M compared to €15.2 M at year-end 2014.

Financial and cash position

As a consequence of the decline of the wholesale market prices, especially since November 2015, the impact of the change in the fair value of hedging instruments, directly recognized in equity, sharply increased to reach (€110 M) by end of December 2015. They amount to (€29.3) M compared to €36 M on 31 December 2014. Restated from this temporary impact that will progressively extinguish as the energy is physically delivered, the Group's equity reached €80.6 M compared to €57.6 M at year-end 2014.

In a context of strong growth marked by strategic investments, notably in power production, Direct Energie has been able to secure the resources required for its growth. The acquisition of the Bayet plant for a total of €44.4 M and the increase in cash deposits (margin calls) as part of energy purchases (€55.5 M) have been financed by new bond debt for €60 M and the setting up of a syndicated loan for €60 M.

At 31 December 2015, the Group's cash amounted to €32 M (net cash and cash equivalents), compared to €31.3 M the previous year.

The ongoing decline in the market price of energy over the first quarter 2016, which will translate into future margins, had the consequence of significantly increasing the cash collateral deposited with counterparties (margin calls). To meet these requirements, Direct Energie has set up additional financing to consolidate its financial flexibility.

2016 Targets: further growth in revenue and current operating profit

With the effective end of regulated tariffs for companies and local authorities on 1st January 2016, the company has been able to capture significant market share in this new segment of large consumption customers (former yellow and green tariffs). Up until now, this segment had only limited competition. These customers, along with the Bayet plant, will significantly contribute to revenue growth.
In parallel, the Group will continue its commercial and marketing investments to further accelerate its expansion with residential and professional customers.

For 2016, the Group has set the following targets:

  • growth in excess of 20% of its customer portfolio in terms of number of sites ;
  • revenue growth over 35% at seasonal average temperatures ;
  • current operating income over 30% at seasonal average temperatures.

Proposed dividend raised to €0.20 per share

Confident in its growth outlook, the Board of Directors has decided to propose to the next General Shareholders' Meeting a dividend per share raised to €0.20 with respect to the fiscal year 2015. The payment should take place on 15 June 2016.

For Xavier Caitucoli, CEO of the Group: "the 2015 results confirm the Group's ability to continue its development in a context of energy transition that provides attractive growth opportunities".

Next publication:
Revenue for 1st quarter 2016 on 10 May 2016 after the markets close

Publications: The Group's annual activity report, along with the presentation used for the analyst meeting, are available on its internet site (www.direct-energie.com).

About Direct Energie
Third-largest French electricity and gas provider, the Direct Energie Group has already acquired and earned the trust of more than 1.6 million residential and professional customer sites in France and Belgium (under the Poweo brand). An integrated energy provider, Direct Energie is involved in the production and supply of electricity and the supply of gas and energy services to its customers. Direct Energie has based its success of over thirteen years on its technical expertise, its outstanding customer relations and its capacity for innovation.
In 2015, the Group generated consolidated revenue of just over €1 Bn and supplied 11.4 TWh of energy.
For more information: www.direct-energie.com

Press contact:        
Image Sept                                                                                                     
Grégoire Lucas - glucas@image7.fr  - Tel + 33 (0)1 53 70 74 94                      
Marie Artzner - martzner@image7.fr -  Tel + 33 (0)1 53 70 74 31 or + 33 (0)6 75 74 31 73

CM CIC Market Solutions
Stéphanie Stahr  - stephanie.stahr@cmcic.fr  - Tel + 33 (0)1 53 48 80 57 

Direct Energie
Mathieu Behar - mathieu.behar@direct-energie.com  - Tel +33 (0)6 12 48 85 85


Profit & Loss Account

In thousands of euros  2015  2014
Restated*
     
Revenues excluding Energy Management   1 016 870   809 554
Energy Management Margin   (335)   363
Revenue from ordinary activities  1 016 535   809 917
     
Cost of sales   (868 083)   (689 653)
Gross margin  148 452   120 263
     
Personnel expenses   (26 391)   (23 873)
Other operational income and expenses   (65 588)   (51 197)
Depreciation and amortization   (22 507)   (20 999)
Current operating income  33 965   24 195
     
Changes in fair value of Energy financial derivative instruments operational in nature   (11 636)   (5 163)
Disposals of non-current assets   (5 929)   (3 696)
Impairment of non-current assets   (550)   -
Income and expenses related to changes in scope of consolidation   (120)   -
Operating income  15 731   15 336
     
Cost of net debt   (3 743)   (1 541)
Other financial income and expenses   65   40
Financial income / (loss)  (3 678)   (1 501)
     
Corporate income tax   17 010   1 509
Share of net income from companies accounted for by the equity method   (62)   (99)
Net income from continuing operations  29 001   15 245
     
Net income from discontinued operations   (1 754)   -
     
Net income  27 247   15 245
     
of which Net income, Group share   27 247   15 245
of which Net income, minority interests   -   -
     
Earnings per share (in €)  0,67   0,38
Diluted earnings per share (in €)  0,64   0,36
     
Earnings per share from continuing operations   0,71   0,38
Diluted earnings per share from continuing operations   0,68   0,36
     
Earnings per share from discontinued operations   (0,04)   -
Diluted earnings per share from discontinued operations   (0,04)   -

* IFRIC 21 provides for retrospective application. Accordingly, 2014 data has been restasted, as explained in note 1.2 "Change in accounting standards »in the notes to the consolidated financial statement of 31 December 2015

Balance Sheet Assets

In thousands of euros  2015  2014
Restated*
     
Intangible assets   40 949   40 728
Property, plant and equipment   47 661   4 943
Investments in associates   902   5 741
Non-current derivative financial instruments   8 494   8 768
Other non-current financial assets   1 458   1 994
Other non-current assets   5 279   1 542
Deferred tax assets   40 780   10 662
     
Non-current assets  145 522   74 378
     
Inventory   36 245   26 894
Trade receivables   220 596   130 673
Current derivative financial instruments   35 843   30 486
Other current financial assets   70 688   48 799
Other current assets   69 500   23 701
Cash and cash equivalents   35 230   31 629
     
Current assets  468 102   292 182
     
TOTAL ASSETS  613 624   366 559

* IFRIC 21 provides for retrospective application. Accordingly, 2014 data has been restasted, as explained in note 1.2 "Change in accounting standards »in the notes to the consolidated financial statement of 31 December 2015


Balance Sheet Liabilities

In thousands of euros  2015  2014
Restated*
     
     
Share Capital and share premiums   9 003   9 003
Retained earnings and net income /(loss)   71 717   49 238
Treasury shares   (88)   (101)
Others comprehensive income / (loss)   (109 981)   (22 117)
     
Shareholders' equity, Group share  (29 350)   36 022
     
Non-controlling interests   -   -
     
TOTAL SHAREHOLDERS' EQUITY  (29 350)   36 022
     
Non-current provisions   5 051   1 865
Non-current derivative financial instruments   81 354   19 311
Other non-current financial liabilities   114 829   55 679
Other non-current liabilities   2 164   837
Deferred tax liabilities   21 130   8 071
     
Non-current liabilities  224 528   85 763
     
Current provisions   6 776   3 341
Trade payables   187 818   115 755
Current derivative financial instruments   83 851   43 761
Other current financial liabilities   69 113   8 163
Other current liabilities   70 887   73 753
     
Current liabilities  418 446   244 774
     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  613 624   366 559

* IFRIC 21 provides for retrospective application. Accordingly, 2014 data has been restasted, as explained in note 1.2 "Change in accounting standards »in the notes to the consolidated financial statement of 31 December 2015


Statement of changes in equity

   Share
Capital		 Share premiums Retained earnings and profit or loss Treasury shares Other comprehensive income  Total Shareholders' equity
In thousands of euros  Changes in fair value Other 
          
Restated Shareholders' equity at 31 December 2014  4 079 4 923 49 238 (101) (21 590) (527)   36 022
          
IFRIC 21 Impact  - - 704 (0) - -   704
          
Historical Shareholders' equity at 31 December 2014  4 079 4 923 48 534 (101) (21 590) (527)   35 319
          
Net income   - - 27 247 - - -   27 247
Other comprehensive income   - - - - (88 392) 527   (87 864)
          
Comprehensive income  - - 27 247 - (88 392) 527   (60 617)
          
Capital increase   - - - - - -   -
Options   - - 1 351 - - -   1 351
Treasury shares purchases / sales   - - - 13 - -   13
Dividends paid   - - (6 119) - - -   (6 119)
          
Shareholders' equity at 31 December 2015  4 079 4 923 71 717 (88) (109 981) 0   (29 350)


Cashflow table

In thousands of euros  2015  2014
Restated*
     
Consolidated net income   27 247   15 245
Tax expenses/income   (17 010)   (1 509)
Financial income / (loss)   3 678   1 501
Income before taxes and financial expenses  13 915   15 237
Depreciation and amortization   22 507   20 999
Impairment   550   -
Provisions   6 212   (341)
Effect of changes in consolidation scope and other gains and losses on disposals   234   -
Expenses related to share-based payments   1 351   1 593
Change in fair value of financial instruments   8 658   284
Other financial items with no cash impact   7 465   5 220
Share of income from affiliates   62   99
Items with no cash impact  47 040   27 853
Change in working capital requirement   (79 755)   (44 136)
Net cash flow from operating activities  (18 800)   (1 046)
     
Acquisition of fixed assets   (25 749)   (21 627)
Disposals of fixed assets   3   12
Change in deposits and guarantees   (55 511)   28
Acquisition of shares in companies not fully consolidated   -   (760)
Acquisition of available-for-sale securities   (26)   -
Acquisition of subsidiary and merger, net of cash acquired   (43 934)   -
Loss of control of subsidiaries net of cash and cash equivalents sold   3 672   -
Change in financial assets   27 871   (27 871)
Net change in loans originated by the company   3 803   (1 157)
Net cash flows used in investment activities  (89 872)   (51 374)
     
Treasury shares   13   (11)
Proceeds from borrowings   120 876   56 849
Repayment of borrowings   (840)   (1 344)
Interest paid   (5 220)   (1 804)
Interest received   647   698
Dividends paid   (6 119)   -
Net cash flows used in financing activities  109 357   54 388
     
Net change in cash and cash equivalents  685   1 968
Cash and cash equivalents at beginning of year  31 308   29 340
Cash and cash equivalents at end of year  31 993   31 308

* IFRIC 21 provides for retrospective application. Accordingly, 2014 data has been restasted, as explained in note 1.2 "Change in accounting standards »in the notes to the consolidated financial statement of 31 December 2015


Direct Energie: 2015 annual results


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Direct Energie via Globenewswire
HUG#1998785