PARGESA HOLDING PRESS RELEASE NO. 5/2016
Geneva, 3 May 2016
Annual General Meeting of 3 May 2016:
Dividend of CHF 2.38 per bearer share approved, for a total distribution of CHF 201.5 million to be paid on 10 May 2016.
All other resolutions approved by shareholders.
Q1 2016 financial results:
Economic operating income stood at CHF 76.8 million, compared with CHF 53.7 million in Q1 2015. Q1 2016 operating income mainly reflects:
The impact of GBL's sale of Total shares in Q 1 2016.
The lack of a contribution from Lafarge, which was deconsolidated in 2015.
The non-cash impact of the derivative financial instruments embedded in the exchangeable and convertible bonds issued by GBL being marked to market, for a net amount of +CHF 38.0 million (+CHF 10.9 million in Q1 2015). Excluding this impact, economic operating income would have amounted to CHF 38.8 million, compared with CHF 42.8 million in Q1 2015.
Non-operating income: −CHF 448.1 million, compared with +CHF 33.0 million in Q1 2015. In 2016, this line item included a CHF 818.3 million charge relating to the impairment recorded by GBL on its holding in LafargeHolcim, in accordance with IFRS. This was partially offset by a capital gain of CHF 398.8 million at the level of Pargesa, resulting from GBL's sale of 1.1% of Total's share capital in early 2016. In Q1 2015, this line item included a capital gain of CHF 34.6 million at the level of Pargesa, resulting from GBL's sale of 0.1% of Total's share capital.
As a result of the above, Pargesa recorded a net loss of CHF 371.3 million in Q1 2016, compared with a net profit of CHF 86.7 million in Q1 2015.
-
Highlights of Q1 2016
In Q1 2016, GBL sold an additional 27.5 million Total shares, representing 1.1% of the company's capital, both in the market and through a private placement by way of an accelerated bookbuilding process to institutional investors. These transactions represented a total amount of EUR 1 billion and generated a capital gain for GBL of EUR 428 million. As a result of these transactions, GBL held 1.3% of Total's capital at 31 March 2016. Given the high dividend yield on this holding, the impact that these recent disposals will have on Total's contribution to Pargesa's operating income will be visible throughout 2016. However, the proceeds from the sales will be used to make investments that will gradually contribute to income, depending on when these proceeds will be reinvested and the level of return from the new investments.
Expanding its "incubator" investments, GBL continued to increase its stakes in adidas, Umicore and Ontex.
adidas: At 31 March 2016, GBL held 6.1% of adidas' capital (4.7% at 31 December 2015), representing a market value of EUR 1.3 billion. The appointment of a GBL representative to adidas' Supervisory Board will be put to shareholders for approval at the Annual General Meeting on 12 May 2016. adidas would then become a strategic shareholding.
Umicore: At 31 March 2016, GBL held 17.0% of Umicore's capital (16.6% at 31 December 2015), representing a market value of EUR 833 million. At the Annual General Meeting on 26 April 2016, shareholders approved the appointment of a second director representing GBL.
Ontex: At 31 March 2016, GBL held 13.5% of Ontex' capital (7.6% at 31 December 2015), representing a market value of EUR 291 million.
Sienna Capital (GBL's "financial pillar"):
In Q1 2016, Ergon Capital Partners III (ECP III) acquired an indirect majority stake in Financière Looping S.A.S, a European theme-park operator.
On 25 March 2016, a group of investors led by Sagard announced that they had signed an agreement with the founder and majority shareholder of Prosol to acquire a minority stake in that company, the parent company of Grand Frais, a chain of French supermarkets that specialises in fresh food.
At 31 March 2016, debt fund Kartesia had made capital calls of EUR 426 million (approximately 84% of the fund's commitments) invested in primary and secondary financing transactions.
In March 2016, a group of investors, including BDT Capital Partners, a private equity fund to which Sienna Capital committed EUR 113 million in 2015, finalised the acquisition of Keurig Green Mountain, Inc., a group specialised in personal beverage systems.
At 31 March 2016, GBL's commitments under its Financial Pillar amounted to EUR 350 million (EUR 413 million at 31 December 2015).
- Consolidated Q1 2016 financial results (unaudited figures)
Pargesa Holding SA's Board of Directors met today and reviewed the unaudited Q1 2016 consolidated financial results.
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Presentation of results in accordance with IFRS
The simplified income statement in accordance with IFRS is as follows:
CHF millions
Q1 2016
Q1 2015
Operating income
1'243.8
1'138.7
Operating expenses
(1'122.4)
(1'041.1)
Other income and expenses
(859.1)
83.7
Operating profit
(737.7)
181.3
Dividends and interest from long-term investments
63.1
71.8
Other financial income and expenses
33.2
(5.7)
Taxes
(40.0)
(32.3)
Income from associates and joint ventures
7.5
(5.7)
Consolidated net profit (before minority interests)
(673.9)
209.4
Attributable to minority interests
(302.6)
122.7
Attributable to Pargesa shareholders (Group share)
(371.3)
86.7
Average number of shares in circulation (in thousands)
84'659
84'659
Basic earnings per share attributable to Pargesa shareholders (CHF)
(4.39)
1.02
Average EUR/CHF exchange rate
1.096
1.070
Operating income and expenses are primarily the revenues and operating expenses of Imerys, whose accounts are fully consolidated.
Other income and expenses includes net capital gains and losses as well as impairments and reversals of previous impairments on Group shareholdings and operations. In Q1 2016, this line item mainly comprised the impairment recorded by GBL on its holding in LafargeHolcim, together with the capital gain recorded on GBL's sale of 1.1% of Total's share capital. In Q1 2015, this line item mainly included the capital gain recorded on GBL's sale of 0.1% of Total's share capital.
The dividends and interest from long-term investments item comprises the net dividends recorded by the Group from its non-consolidated investments. In Q1 2016, this item included the SGS annual dividend received by GBL, while most of the dividends from other holdings will be recorded from Q2 onwards.
The other financial income and expenses and taxes items provide consolidated figures for Pargesa, GBL and Imerys. The first of these two line items includes the non-cash impact of GBL's derivative financial instruments being marked to market.
Income from associates and joint ventures represents the share of the consolidated net profit contributed by shareholdings accounted for in the Pargesa financial statements using the equity method. In 2015, this line item was composed primarily of Lafarge's contribution, which was accounted for using the equity method until 30 June 2015.
The item minority interests mainly relates to the share of income due to the minority shareholders of GBL and Imerys, these two companies being fully consolidated into the Pargesa Group financial statements.
- Economic presentation of Pargesa financial results
In addition to the accounts drawn up in accordance with IFRS, Pargesa continues to publish an economic presentation of its results, in order to provide continuous information over the long term about the contribution of each of its major shareholdings to its results. IFRS require different accounting treatments depending on the Group's percentage holding in each of its investments (full integration for Imerys, equity method for Lafarge up to 30 June 2015, with other major Group holdings being booked as financial investments), so this continuous view would be interrupted without this additional economic presentation of the Group's results.
The economic presentation shows, in terms of the Group's share of results, the contribution of the main shareholdings to the consolidated income of Pargesa, together with the income from the operations of the holding companies (Pargesa and GBL), which highlight in particular the income from private-equity activities and other investment funds (combined under Sienna Capital at GBL) and the impact of net financial income. The analysis also draws a distinction between the operating and non-operating items in the income, the non- operating part being composed of net capital gains and losses in connection with disposals and any restructuring costs and impairments or reversals of previous impairments.
According to this approach, the economic results for Q1 2016 were as follows:
CHF millions | Q1 2016 | Q1 2015 |
Operating contribution of the main shareholdings
Imerys share of operating income Laf arge share of operating income Total net dividend SGS net dividend ENGIE net dividend Pernod Ricard net dividend LafargeHolcim net dividend | 25.6 | 23.3 |
- | (7.2) | |
(8.7) | - | |
41.5 | 37.3 | |
- | - | |
- | - | |
- | - | |
Operating contribution of the main shareholdings | 58.4 | 53.4 |
per share (CHF) | 0.69 | 0.63 |
Contribution from private-equity activities and other funds | (1.6) | 2.1 |
Net f inancial income and expenses | 26.3 | 6.2 |
Other operating income from holding company activities | - | - |
General expenses and taxes | (6.3) | (8.0) |
Econom ic operating income | 76.8 | 53.7 |
per share (CHF) | 0.91 | 0.63 |
Non-operating income (loss) from consolidated or equity-accounted companies | (3.2) | (6.9) |
Non-operating income (loss) from holding companies | (444.9) | 39.9 |
Net income (loss) | (371.3) | 86.7 |
per share (CHF) | (4.39) | 1.02 |
Average numb er of shares in circulation (thousands) | 84'659 | 84'659 |
Average EUR/CHF exchange rate | 1.096 | 1.070 |
Most income comes from GBL's contribution, which is denominated in euros. The average EUR/CHF exchange rate in Q1 2016 was 1.096, compared with 1.070 in Q1 2015, a 2.4% change.
Pargesa Holding SA published this content on 03 May 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 03 May 2016 16:13:04 UTC.
Original documenthttp://www.pargesa.ch/images/stories/communiques/en/2016/cp0516en.pdf
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