Se remite comunicado de prensa, en lengua inglés, relativo a la aprobación del Informe Semestral 2008.
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PRESS RELEASE
THE BOARD OF DIRECTORS APPROVED THE HALF YEAR REPORT ON 30 JUNE 2008
• NET REVENUES: 241.2 MILLION EUROS (181.1 MILLION EUROS AT
JUNE 2007)
• EBITDA: 33 MILLION EUROS, 16.9 MILLION OF WHICH REFERRED TO
CURRENT OPERATIONS (17.6 MILLION EUROS AT JUNE 2007)
• EBIT: 23.7 MILLION EUROS (7.9 MILLION EUROS AT JUNE 2007)
• NET PROFIT: 12.7 MILLION EUROS (2.2 MILLION EUROS AT JUNE
2007)
Milan, 27 August 2008
The Board of Directors of Reno De Medici S.p.A., met today under the chairmanship of Mr.
Giuseppe Garofano, approved the Half Year Report on 30 June 2008 highlighting an
improvement of the financial and economic result.
Introduction
As already known, the first half of 2008 has been characterised by the merger of Cascades
Italia S.r.l. into Reno De Medici S.p.A., with effective date on 1 March 2008. Cascades Italia
S.r.l. owned, directly or indirectly, 100% of Cascades Arnsberg GmbH, Cascades
Blendecques S.a.s. and Cascades Cartonboard UK Ltd.. So, from that date, the economic
results of that companies are included in the consolidated results of RDM Group.
Again as part of the operations above-mentioned, on 28 March 2008, to the company Careo
S.r.l. (formerly known as Reno Cascades Sales S.r.l.) was contributed by Reno De Medici
S.p.A. and by the new partner Cascades S.A. their sales division, through a capital increase
from Euro 10 thousand to Euro 100 thousand of which Reno De Medici S.p.A. holds 70% and
Cascades S.A. 30%. Careo S.r.l. (definable Joint Venture in order to statutory governance
articles) carries on marketing and selling services of all goods produced in the factories of
RDM Group (recycled fibre) and Cascades S.A. (virgin fibre).
First half-year results
Demand is experiencing a weak phase at both a domestic and European level, resulting from
the generally negative performance of the demand for consumer goods in the continent as a
whole. Forecasts of market performance for the second half-year have been prepared with a
certain amount of prudence, given the continuing uncertain situation on the demand side and
trends of the waste paper and energy prices together with the trend of the exchange rate
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Euro/USD.
In terms of volumes sold, despatches totalled 447 thousand tonnes in the first six months of
2008 (including 121 thousand tonnes relating to the new mills) compared to 360 thousand
tonnes for the first half of 2007. On the sales price front average revenues per tonne for
despatches in the first half-year rose by 5% over the corresponding period of 2007.
The first half of 2008 is accordingly characterised by a contraction in demand in Europe and
the resulting increase in sales to non-EU markets, with lower than average prices. A policy of
adjusting supply to demand was adopted during the half-year, carried out by plants down
timing, also in order to contain net working capital levels.
Consolidated results
The following table sets out the highlights of the profit and loss accounts for the six months
ended 30 June 2008 and 2007:
Consolidated profit and loss account 30 June 2008 30 June 2007 (*)
Euro/000
Revenues from sales 241.248 181.081
EBITDA 33.012 17.409
EBIT 23.712 7.886
Result of operating activities before taxes 16.903 3.606
Current and deferred taxes (2.462) (633)
Result of operating activities after taxes 14.441 2.973
Discontinued operations (1.696) (781)
Profit (Loss) for the period 12.745 2.192
(*) Comparative figures for 2007 have been restated to take into account treatment of actuarial gains and losses in the calculation of the employees' leaving entitlement.
The RDM Group achieved net revenues of Euro 241.2 million in the first half of 2008,
compared to Euro 181.1 million in the corresponding period of the previous year (up 33.2%).
The increase registered was attributable for Euro 68.4 million to the new facilities.
Consolidated EBITDA reached Euro 33 million in the first half of 2008 compared to Euro
17.4 million in the corresponding period in 2007. This increase is mainly attributable to “Non-
recurring income (expense)” of Euro 16.1 million, which consists of the badwill of Euro 16.6
million emerging as the excess over cost of the aggregate of the fair values of the assets,
liabilities and contingent liabilities identified on a provisional basis at 30 June 2008, less non-
recurring charges connected with reorganisation activities amounting to Euro 0.5 million.
As a result EBITDA arising from current operations, meaning exclusive of non-operational
components having a non-recurring nature, amounted to Euro 16.9 million, compared to Euro
17.6 million in the first half of 2007.
The performance of EBITDA reflects the positive contribution produced by the new
production units and the negative effect of lower sales volumes and the energy prices
increases.
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Operating profit (EBIT) amounted to Euro 23.7 million for the six months ended 30 June
2008 against Euro 7.9 million for the corresponding period of 2007, which also take advantage
of non recurring income above-mentioned.
Pre-tax current profit amounted to Euro 16.9 million compared to the corresponding figure of
Euro 3.6 million for the for the corresponding period of 2007.
Profit for the period, as at 30 June 2008 amounted to Euro 12.7 million, compared to Euro
2.2 million for the same period in 2007, and includes costs from discontinued operation of
Euro 1.7 million resulting from write-down of Board Machine 1 at the Magenta facility to
align its carrying amount to its estimated realisable value.
The Group made capital expenditure of Euro 4.7 million during the six months ended 30 June
2008 compared to Euro 6.2 million on June 2007.
Consolidated net financial debt at 30 June 2008 amounted to Euro 114.4 million, compared to
Euro 128.4 million at 31 March 2008 and to Euro 114.1 million at 31 December 2007.
More specifically, gross financial debt at 30 June 2008, measured at amortized cost amounted
Euro 126.2 million (compared to Euro 123.2 million at December 2007) and consisted of the
non-current portion of long-term loans for about Euro 64.8 million, the current portion of
long-term loans for about Euro 10.3 million and bank credit facilities and other financial
liabilities of about Euro 51.1 million, consisting mostly of use of commercial facilities.
Derivative instruments acquired for cash flow hedging purposes are recognized in the
financial statements as an asset with a carrying amount of Euro 1.4 million.
At 30 June 2008, cash and cash equivalents and financial receivables having a due date not
exceeding 12 months amounted to Euro 10.4 million (compared to Euro 8.4 million at 31
December 2007) and include a restricted balance of Euro 3.5 million relating to the
engagement signed up by RDM Iberica during the month of June for machines and
installation purchasing. The amount of Euro 5 million previously deposited in a restricted
account has been released in June as a consequence of settling the dispute with Grupo Torras.
Risk factors and business outlook for current year
The way in which the market has been performing in July and the first days of August is
confirmation that we currently find ourselves in the midst of a weak period and it is difficult
to envisage that there will be a turnaround in trends on the demand side in the short term. The
synergies to be achieved in the second half of the year as a consequence of the combination
with the Cascades Group will enable us to contain the predictable increase in energy costs to
an extent that will however not allow the Group to obtain an increase in its margins.
This will be dealt with by carrying out a further rationalisation of industrial operations aimed
at achieving an additional retrieval of efficiency, and by taking steps at the same time to raise
sales prices. In all events, given the situation as it has been described and owing to the
uncertainties which will be a feature of the remaining months of the year, above all on the
demand side and as regards energy costs, it is difficult to foresee a pick-up in earnings from
operations this year. It is reasonable to assume that the planned measures will have their
effects in the first half of 2009.
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CONSOLIDATED FINANCIAL STATEMENTS 1
Consolidated profit and loss account 30 June 2008 30 June 2007
Euro/000
Revenues from sales 241.248 181.081
Other revenues 902 818
Changes in stocks of finished goods 2.964 (6.135)
Cost of raw materials and services (188.560) (131.990)
Staff costs (37.179) (24.456)
Other operating costs (2.480) (1.666)
Non recurring income (expense) 16.117 (243)
Gross Operating Profit (EBITDA) 33.012 17.409
Depreciation and amortisation (9.300) (9.523)
Operating Profit (EBIT) 23.712 7.886
Financial expense (5.190) (4.900)
Exchange differencies (307) (14)
Financial income 233 265
Net Financial income (expense) (5.264) (4.649)
Income (expense) from investments (2.122) 395
- of which non recurring write-down of Termica Boffalora S.r.l. (994) -
Other income (expense) 577 (26)
Taxation (2.462) (633)
Profit (loss) for the period before discontinued operations 14.441 2.973
Discontinued operations (1.696) (781)
Profit (loss) for the period 12.745 2.192
Attributable to:
Profit (loss) for the period pertaining to the group 12.596 2.072
Profit (loss) for the period pertaining to minority interests 149 120
Basic earnng per share (Euros) 0,04 0,01
Basic earnng per share before discontinued operations (Euros) 0,04 0,01
Diluted earnings per share (Euros) 0,04 0,01
Diluted earning per share before discontinued operations (Euros) 0,04 0,01
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The audit of these figures is currently being finalised.
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Consolidated balance sheet 30 June 2008 31 December 2007
Euro/000
ASSETS
Non-current assets
Tangible fixed assets 264.012 174.702
Goodwill 63 146
Other intangible assets 1.116 1.388
Investments and financial transactions currently 1.211 13.134
Deferred tax assets 1.782 1.681
Derivative financial instruments 998 418
Financial assets held for sale 437 482
Other receivables 2.354 5.321
Total non-current assets 271.973 197.272
Current assets
Stocks 97.337 64.624
Trade receivables 134.848 101.511
Group trade receivables 1.575 951
Other receivables 1.731 4.702
Derivative financial instruments 403 331
Liquid funds 9.730 8.248
Total current assets 245.624 180.367
Non-current assets held for sale 10.000 5.583
TOTAL ASSETS 527.597 383.222
LIABILITIES AND SHAREHOLDERS' EQUITY
Shareholders' equity attributable to the group 181.902 114.770
Minority interests 457 546
Shareholders' equity 182.359 115.316
Non-current liabilities
Bank loans and other financial liabilities 64.801 70.002
Other payables 1.069 627
Deferred tax liabilities 30.094 6.311
Employees' leaving entitlement 24.935 14.780
Non-current provisions for contingencies and charges 7.321 6.174
Total non-current liabilities 128.220 97.894
Current liabilities
Bank loans and other financial liabilities 60.634 52.544
Trade payables 126.439 93.964
Group trade payables 6.518 3.754
Other payables 16.117 19.142
Current taxation 7.310 608
Total current liabilities 217.018 170.012
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 527.597 383.222
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Net financial position 30 June 2008 31 December 2007 Variation
Euro/000
Cash 16 8 8
Funds available at banks 6,234 3,240 2,994
Restricted funds at banks 3,480 5,000 (1,520)
A. Cash and cash equivalents 9,730 8,248 1,482
Other current financial receivables 692 153 539
Derivatives - current financial assets 403 331 72
B. Current financial receivables 1,095 484 611
1. Bank overdrafts and short-term loans 50,341 42,875 7,466
2. Current portion of medium- and long-term loans 10,293 10,367 (74)
3. Other current financial liabilities 789 - 789
C. Current financial debt 61,423 53,242 8,181
D. Current financial debt, net ( C - A - B ) 50,598 44,510 6,088
Derivatives - non-current financial liabilities 998 418 580
E. Non-current financial debt 998 418 580
Other non-current financial receivables 64,801 70,002 (5,201)
F. Non-current financial receivables 64,801 70,002 (5,201)
G. Non-current financial debt, net ( F - E ) 63,803 69,584 (5,781)
H. Financial net debt ( D + G ) 114,401 114,094 307
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The manager in charge of the preparation of the company’s accounting records, pursuant
art.154 bis of “Testo Unico della Finanza”, Maurizio Fusetti, declare that all figures contained
in this press release correspond to the entries in the accounting books and records.
* * *
The Half-year Financial Report at 30 June 2008 together with the Report of the Independent
Auditors PricewaterhouseCoopers S.p.A. will be published on 29 August 2008 and made
available in the manner and form required by law from that date.
Per ulteriori informazioni si prega di contattare:
Reno De Medici carlobruno&associati
Guido Vigorelli Claudio Albanese
Tel. 02 979601 Fax 02 97960555 Tel. 02 89055101 Fax 02 89055112
E-mail investor.relations@renodemedici.it E-mail c.albanese@carlobrunoassociati.com
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Fuente: CNMV
