Earnings Release • Feb 12, 2015
Earnings Release
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The Board of Directors of L'Oréal met on February 12th, 2015 under the chairmanship of Jean-Paul Agon and in the presence of the Statutory Auditors. The Board closed the consolidated financial statements and the financial statements for 2014.
Commenting on the annual results, Mr Jean-Paul Agon, Chairman and Chief Executive Officer of L'Oréal, said:
"As anticipated and announced, L'Oréal recorded in the fourth quarter its strongest growth of the year. In a volatile economic context and a less dynamic market, the Group posted growth in all its Divisions and regions of the world.
L'Oréal Luxe and Active Cosmetics achieved very good growth and outperformed their market significantly. The Professional Products Division continued to improve. Meanwhile, in a slowing market, the Consumer Products Division saw a temporary sag in its growth, particularly in the United States.
2014 was also a year of transformation for L'Oréal, in particular through the acceleration of our digital transformation and strategic acquisitions such as Magic, NYX, Decléor, Carita and Niely***, which complement our brand portfolio in key categories and regions of the world.
Despite adverse currency effects, operating margin increased once again in 2014 highlighting the strength of our business model. Following the capital gain realised upon the disposal of Galderma as part of the strategic transaction with Nestlé, net profit has grown strongly.
We are looking to the future with confidence, driven by our "Beauty for All" mission and our "Universalisation" strategy towards our ambition of winning one billion new consumers.
In an economic environment that is uncertain, but more favourable on the monetary front, all our teams are focused to ensure L'Oréal outperforms the market in 2015, and to deliver sales and profit growth."
The Board of Directors has decided to propose to the Annual General Meeting of Wednesday, April 22nd, 2015, the renewal of the tenure of Mr Charles-Henri Filippi.
After 8 years of active participation in the work of the Board, Mrs Annette Roux has decided not to seek the renewal of her tenure which expires at the end of the 2015 Annual General Meeting. The Board warmly thanks Mrs Roux for the quality of her contribution to the Board's debates and decisions.
The Board will propose to the Annual General Meeting the appointment as new Board Director of Mrs Sophie Bellon who is in charge of the Research, Development and Innovation Strategy of Sodexo and Vice Chairman of its Board of Directors.
* Diluted net earnings per share, based on net profit from continuing operations, excluding non-recurring items, attributable to owners of the company.
** Proposed at the Annual General Meeting of April 22nd, 2015.
*** Acquisition which is currently being finalised.
Like-for-like, i.e. based on a comparable structure and constant exchange rates, the sales trend of the L'Oréal Group was +3.7%.
The net impact of changes in consolidation amounted to +0.4%.
Currency fluctuations had a negative impact of -2.3%.
Growth at constant exchange rates was +4.1%.
Based on reported figures, the Group's sales, at December 31st, 2014, amounted to 22.53 billion euros, an increase of +1.8%.
The announcement on February 11th, 2014, of the disposal of 50% of Galderma leads to account for this business in accordance with IFRS 5 accounting rule on discontinued operations. In accordance with IFRS 11 accounting rule, Innéov has been consolidated under the equity method as of January 1st, 2014. All figures for earlier periods have been restated accordingly.
| th quarter 2014 4 |
At December 31st, 2014 | ||||||
|---|---|---|---|---|---|---|---|
| €m | Growth | €m | Growth | ||||
| Like-for-like | Reported | Like-for-like | Reported | ||||
| By Operational Division | |||||||
| Professional Products | 782.1 | 1.9% | 7.7% | 3,032.4 | 2.6% | 2.0% | |
| Consumer Products | 2,710.0 | 3.0% | 6.3% | 10,767.5 | 1.6% | -1.0% | |
| L'Oréal Luxe | 1,795.5 | 8.6% | 12.2% | 6,197.9 | 7.1% | 5.7% | |
| Active Cosmetics | 359.2 | 7.5% | 7.1% | 1,660.4 | 8.7% | 5.3% | |
| Cosmetics Divisions total | 5,646.7 | 4.8% | 8.3% | 21,658.2 | 3.8% | 1.7% | |
| By Geographic Zone | |||||||
| Western Europe | 1,921.9 | 4.3% | 6.7% | 7,697.7 | 2.4% | 3.1% | |
| North America | 1,443.4 | 1.9% | 11.1% | 5,389.4 | 1.1% | 0.6% | |
| New Markets, of which: | 2,281.4 | 7.2% | 8.1% | 8,571.1 | 6.9% | 1.3% | |
| - Asia, Pacific | 1,235.2 | 4.6% | 13.5% | 4,563.6 | 5.3% | 4.1% | |
| - Latin America | 511.3 | 13.9% | 8.6% | 1,853.7 | 10.0% | -1.7% | |
| - Eastern Europe(1) | 390.9 | 5.4% | -9.5% | 1,585.4 | 6.0% | -6.3% | |
| - Africa, Middle East(1) | 144.1 | 12.5% | 20.3% | 568.4 | 13.5% | 12.5% | |
| Cosmetics Divisions total | 5,646.7 | 4.8% | 8.3% | 21,658.2 | 3.8% | 1.7% | |
| The Body Shop | 319.6 | 6.0% | 11.4% | 873.8 | 1.6% | 4.6% | |
| Group total | 5,966.4 | 4.9% | 8.5% | 22,532.0 | 3.7% | 1.8% |
(1) As of July 1st, 2013, Turkey and Israel, which were previously included in the Africa, Middle East Zone, were transferred to the Eastern Europe Zone. All figures for earlier periods have been restated to allow for this change.
PROFESSIONAL PRODUCTS
The Professional Products Division recorded sales growth of +2.6% like-for-like and +2.0% based on reported figures in a market that remains difficult. The Division is strengthening its positions in Western Europe and continues to develop in the New Markets.
In a market that slowed in 2014, the Consumer Products Division posted +1.6% like-for-like and -1.0% based on reported figures, with an improvement at the end of the year.
Following accelerating sales in the final quarter, L'Oréal Luxe recorded growth of +7.1% likefor-like and +5.7% based on reported figures. The Division is continuing to clearly outperform the selective market. The make-up and women's fragrance categories are particularly dynamic.
In 2014, the Division accelerated its growth, with sales advancing by +8.7% like-for-like and +5.3% based on reported figures, outperforming a healthy market. Like-for-like growth rates were higher than in 2013 on every continent.
In a flat market, and a highly competitive environment between mass-market retailers, growth came out at +2.4% like-for-like and +3.1% based on reported figures. This increase is particularly encouraging because L'Oréal accelerated in the fourth quarter, and is growing both in Northern and Southern Europe, particularly in Germany, the United Kingdom and Spain. All Divisions are contributing to the sales increase, with a special mention for L'Oréal Luxe and Active Cosmetics.
After a strong momentum over the last few years, growth in 2014 was more moderate because of the Consumer Products Division. Sales increased by +1.1% like-for-like and +0.6% based on reported figures. The Professional Products Division, Active Cosmetics and L'Oréal Luxe are continuing to develop, thanks, among others, to the American brands Redken, SkinCeuticals, Urban Decay and Kiehl's. In a market that improved in the second half, the Consumer Products Division increased its sales, in particular from the contribution of L'Oréal Paris. The recent acquisitions of the very fastgrowing brands NYX and Carol's Daughter complement the Consumer Products Division, and boost its product offering.
Africa, Middle East: Sales rose by +13.5% like-for-like and +12.5% based on reported figures. All Divisions recorded double-digit growth and gained market share. South Africa, the Gulf states, as well as growth-relay countries like Egypt, Saudi Arabia and Pakistan posted strong performance. L'Oréal Paris, Maybelline, Lancôme, Giorgio Armani and Vichy contributed to the Zone's good score, along with the more recently launched brands Kiehl's and SkinCeuticals.
The Body Shop had a satisfactory end to the year in all its categories.
The brand recorded growth of +1.6% like-for-like and +4.6% based on reported figures. The strategic priority given to skincare is continuing to pay off, thanks in particular to the fourth quarter launch of Drops of Youth Eye Concentrate. The Americas' region that now includes the addition of the Emporio Body Store stores in Brazil, drove the highest growth.
Audited financial statements, certification in progress.
The announcement on February 11th, 2014, of the disposal of 50% of Galderma leads to account for this business in accordance with IFRS 5 accounting rule on discontinued operations. In accordance with IFRS 11 accounting rule, Inneov has been consolidated under the equity method of January 1 st, 2014. All figures for earlier periods have been restated accordingly.
Consolidated profit and loss account: from sales to operating profit.
(2013 figures restated in accordance with IFRS 5 and IFRS 11 accounting rules)
| 2013 | 2014 | |||
|---|---|---|---|---|
| €m | % sales | €m | % sales | |
| Sales | 22,124.2 | 100% | 22,532.0 | 100% |
| Cost of sales | -6,379.4 | 28.8% | -6,500.7 | 28.9% |
| Gross profit | 15,744.8 | 71.2% | 16,031.3 | 71.1% |
| R&D expenses | -748.3 | 3.4% | -760.6 | 3.4% |
| Advertising and promotion expenses | -6,621.7 | 29.9% | -6,558.9 | 29.1% |
| Selling, general and administrative expenses | -4,614.4 | 20.9% | -4,821.1 | 21.4% |
| Operating profit | 3,760.4 | 17.0% | 3,890.7 | 17.3% |
Gross profit, at 16,031 million euros, came out at 71.1% of sales, compared with 71.2% in 2013, that is a decrease of 10 basis points. Foreign exchange effects had a negative impact of 30 basis points: the other factors represented a positive impact of 20 basis points.
Research and Development expenses remained stable as a percentage of sales at 3.4%.
Advertising and promotion expenses, as announced one year ago, came out as a lower percentage of sales compared with 2013. At 29.1% of sales, that is a decrease of 80 basis points.
Selling, general and administrative expenses, at 21.4% of sales, have come out at a higher level, by 50 basis points compared with 2013, as they did in the first half of 2014.
Overall, the operating profit, at 3,890 million euros, has grown by 3.5% and amounts to 17.3% of sales. At constant exchange rates, operating profit growth would have been +5.5%.
(2013 figures restated in accordance with IFRS 5 and IFRS 11 accounting rules)
| 2013 | 2014 | ||||
|---|---|---|---|---|---|
| €m | % sales | €m | % sales | ||
| By Operational Division | |||||
| Professional Products | 609.5 | 20.5% | 608.8 | 20.1% | |
| Consumer Products | 2,166.7 | 19.9% | 2,186.2 | 20.3% | |
| L'Oréal Luxe | 1,174.2 | 20.0% | 1,269.2 | 20.5% | |
| Active Cosmetics | 342.6 | 21.7% | 376.4 | 22.7% | |
| Cosmetics Divisions total | 4,293.0 | 20.2% | 4,440.6 | 20.5% | |
| Non-allocated* | -604.5 | -2.8% | -615.2 | -2.8% | |
| The Body Shop | 71.9 | 8.6% | 65.3 | 7.5% | |
| Group | 3,760.4 | 17.0% | 3,890.7 | 17.3% |
* Non-allocated = Central Group expenses, fundamental research expenses, stock options and free grant of shares expenses and miscellaneous items. As a % of cosmetics sales.
The profitability of the Professional Products Division at 20.1% is down by 40 basis points, due mainly to the dilutive effect of the consolidation of Decléor and Carita.
The profitability of the Consumer Products Division once again improved very significantly at 20.3%, up by 40 basis points.
The profitability of L'Oréal Luxe grew by 50 basis points, at 20.5% in 2014.
At Active Cosmetics, there was a further increase in profitability at 22.7%. That is a 100 basis point improvement.
The profitability of The Body Shop weakened in 2014, to 7.5%.
(2013 figures restated in accordance with IFRS 5 and IFRS 11 accounting rules)
| 2013 | 2014 | ||||
|---|---|---|---|---|---|
| Operating profit | €m | % sales | €m | % sales | |
| Western Europe | 1,661.8 | 22.3% | 1,746.1 | 22.7% | |
| North America | 1,003.1 | 18.7% | 1,010.4 | 18.7% | |
| New Markets | 1,628.2 | 19.2% | 1,684.1 | 19.6% | |
| Cosmetics Zones total* | 4,293.0 | 20.2% | 4,440.6 | 20.5% |
* Before non-allocated.
Profitability in Western Europe improved by 40 basis points to reach 22.7%.
In North America, profitability remains stable at 18.7%.
And in the New Markets, profitability again increased this year, by 40 basis points, to reach 19.6%.
Consolidated profit and loss accounts: from operating profit to net profit excluding non-recurring items.
(2013 figures restated in accordance with IFRS 5 and IFRS 11 accounting rules)
| €m | 2013 | 2014 | % change |
|---|---|---|---|
| Operating profit | 3,760.4 | 3,890.7 | +3.5% |
| Financial revenues and expenses excluding dividends received | -31.4 | -24.1 | |
| Sanofi dividends | 327.5 | 331.1 | |
| Profit before tax excluding non-recurring items | 4,056.4 | 4,197.7 | +3.5% |
| Income tax excluding non-recurring items | -1,018.0 | -1,069.5 | |
| Net profit excluding non-recurring items of equity consolidated companies |
-3.0 | -3.0 | |
| Non-controlling interests | -3.2 | +0.1 | |
| Net profit excluding non-recurring items after non-controlling interests* |
3,032.4 | 3,125.3 | +3.1% |
| Net EPS** (€) | 4.99 | 5.34 | +7.1% |
| Net profit after non-controlling interests | 2,958.2 | 4,910.2 | +66% |
| Diluted net EPS after non-controlling interests (€) | 4.87 | 8.39 | |
| Diluted average number of shares | 608,001,407 | 585,238,674 |
* Net profit excluding non-recurring items after non-controlling interests does not include impairment of assets, restructuring costs, tax effects or non-controlling interests.
** Diluted net earnings per share excluding non-recurring items after non-controlling interests.
Finance expenses amounted to 24 million euros.
Sanofi dividends amounted to 331 million euros.
Income tax excluding non-recurring items amounted to 1,069 million euros. This represents a tax rate of 25.5%, slightly higher than that of 2013 which came out at 25.1%.
Net profit excluding non-recurring items amounted to 3,125 million euros.
Net Earnings per Share, at 5.34 euros, is up by 7.1%, compared to Net Earnings per Share for 2013 restated from discontinued operations.
Non-recurring items amounted to a charge net of tax of 357 million euros, due in part to the decision by the French Competition Authority.
After the capital gain on the disposal of Galderma, 2.1 billion euros, net profit came out at 4,910 million euros, which represents a large increase of 66%.
It is the comparison of net profit per share, excluding non-recurring items, attributable to owners of the company - as it was reported in 2013 - with the net profit per share, excluding non-recurring items, attributable to owners of the company, for the year 2014.
| In € million | 12/31/13 | 12/31/14 | Change |
|---|---|---|---|
| Net profit from continuing operations, excluding non recurring items, attributable to owners of the company |
3,032.4 | 3,125.3 | |
| 2013 contribution of Galderma to net profit excluding non-recurring items |
85.1 | ─ | |
| Reported net profit excluding non-recurring items, attributable to owners of the company |
3,117.5(1) | 3,125.3(2) | |
| EPS (€) | 5.13(3) | 5.34(4) | +4.1% |
| Diluted average number of shares used to calculate the EPS |
608,001,407 | 585,238,674 |
(1) Reported net profit excluding non-recurring items, attributable to owners of the company at Dec.31st, 2013.
(2) Net profit from continuing operations, excluding non-recurring items, attributable to owners of the company, for the year 2014. (3) Diluted earnings per share based on reported net profit excluding non-recurring items, attributable to owners of the company at Dec.31st, 2013.
(4) Diluted earnings per share based on net profit of continuing operations, excluding non-recurring items, attributable to owners of the company.
Gross cash flow amounted to 3,808 million euros.
The working capital requirement in 2014 was reduced by 55 million euros.
Investments, amounted to 1,008 million euros, representing 4.5% of sales, slightly less than in 2013, when it represented 4.6% of sales.
Finally, after payment of the dividend, acquisitions, and the purchase of shares from Nestlé, the net debt came out, at December 31st , 2014, at 671 million euros.
With a shareholders' equity amounting to 20 billion euros, the balance sheet remains particularly solid, after the purchase of 8% of the capital from Nestlé for 6 billion euros.
The Board of Directors has decided to propose that the Shareholders' Annual General Meeting of April 22nd, 2015 should approve a dividend of 2.70 euros per share, an increase of 8% compared with the dividend paid in 2014. The dividend will be paid on May 7th , 2015 (ex-dividend date May 5th, 2015 at 0:00 a.m., Paris time).
As of December 31st, 2014, the capital of the company is formed by 561,230,389 shares, each with one voting right.
"This news release does not constitute an off er to s ell, or a solicit ation of an offer to buy L 'Oréal shares. If you wish to obtain more comprehensive information about L'Oréal, please refer to the public documents registered in France with t he Aut orité de s Marchés Financiers, also available in English on our Internet site www.loreal-financ e.com.
This news release may contain s ome forward -looking statements. Although t he Company considers that thes e statements are bas ed on reasonable hypotheses at the dat e of publication of t his release, they are by their nature subject t o risks and uncertainties which c ould cause actual results to differ mat erially from those indic ated or projected in these statements."
This a f ree translation int o English of t he 2014 Annual Results news release issued in the French language and is provided solely for the convenience of English speaking readers. In case of discrepancy, the French version prevails.
Contacts at L'ORÉAL (Switchboard: +33 1 47 56 70 00)
Individual shareholders Financial analysts and and market authorities Institutional investors Journalists
Tel: +33 1 47 56 83 02 Tel: +33 1 47 56 86 82 Tel: +33 1 47 56 76 71
Mr Jean Régis CAROF Mrs Françoise LAUVIN Mrs Stephanie CARSON-PARKER [email protected] [email protected] [email protected]
For more information, please contact your bank, broker or financial institution (I.S.I.N. code: FR0000120321), and consult yo ur usual newspapers, and the Internet site for shareholders and investors, http://www.loreal-finance.com, alternatively, call +33.1.40.14.80.50.
The announcement on February 11th, 2014, of the disposal of 50% of Galderma leads to account for this business in accordance with IFRS 5 accounting rule on discontinued operations. In accordance with IFRS 11 accounting rule, Innéov has been consolidated under the equity method as of January 1st, 2014. All figures for earlier periods have been restated accordingly.
| 2013 | 2014 | |
|---|---|---|
| First quarter: | ||
| Cosmetics Divisions | 5,583.6 | 5,462.2 |
| The Body Shop | 181.9 | 176.4 |
| First quarter total | 5,765.5 | 5,638.6 |
| Second quarter: | ||
| Cosmetics Divisions | 5,390.0 | 5,348.5 |
| The Body Shop | 186.9 | 187.4 |
| Second quarter total | 5,576.9 | 5,536.0 |
| First half: | ||
| Cosmetics Divisions | 10,973.6 | 10,810.8 |
| The Body Shop | 368.8 | 363.8 |
| First half total | 11,342.4 | 11,174.6 |
| Third quarter: | ||
| Cosmetics Divisions | 5,103.2 | 5,200.7 |
| The Body Shop | 179.9 | 190.4 |
| Third quarter total | 5,283.1 | 5,391.1 |
| Nine months: | ||
| Cosmetics Divisions | 16,076.8 | 16,011.4 |
| The Body Shop | 548.7 | 554.2 |
| Nine months total | 16,625.5 | 16,565.7 |
| Fourth quarter: | ||
| Cosmetics Divisions | 5,211.7 | 5,646.7 |
| The Body Shop | 287.0 | 319.6 |
| Fourth quarter total | 5,498.7 | 5,966.4 |
| Full year | ||
| Cosmetics Divisions | 21,288.5 | 21,658.2 |
| The Body Shop | 835.8 | 873.8 |
| Full year total | 22,124.2 | 22,532.0 |
| € millions | 2014 | 2013 (1) | 2012 (1) |
|---|---|---|---|
| Net sales | 22,532.0 | 22,124.2 | 21,638.4 |
| Cost of sales | -6,500.7 | -6,379.4 | -6,388.3 |
| Gross profit | 16,031.3 | 15,744.8 | 15,250.1 |
| Research and development | -760.6 | -748.3 | -680.4 |
| Advertising and promotion | -6,558.9 | -6,621.7 | -6,531.6 |
| Selling, general and administrative expenses | -4,821.1 | -4,614.4 | -4,479.7 |
| Operating profit | 3,890.7 | 3,760.4 | 3,558.4 |
| Other income and expenses | -307.2 | -128.6 | -121.1 |
| Operational profit | 3,583.5 | 3,631.8 | 3,437.3 |
| Finance costs on gross debt | -31.4 | -23.1 | -27.3 |
| Finance income on cash and cash equivalents | 42.3 | 36.4 | 35.0 |
| Finance costs, net | 11.0 | 13.3 | 7.7 |
| Other financial income (expenses) | -35.1 | -44.7 | -6.0 |
| Sanofi dividends | 331.0 | 327.5 | 313.4 |
| Profit before tax and associates | 3,890.4 | 3,928.0 | 3,752.3 |
| Income tax | -1,111.0 | -1,043.6 | -985.4 |
| Share of profit in associates | -13.5 | -3.0 | -4.6 |
| Net profit from continuing operations | 2,765.9 | 2,881.4 | 2,762.3 |
| Net profit from discontinued operations | 2,142.7 | 80.0 | 108.1 |
| Net profit | 4,908.6 | 2,961.4 | 2,870.4 |
| Attributable to: | |||
| • owners of the company | 4,910.2 | 2,958.2 | 2,867.7 |
| • non-controlling interests | -1.6 | 3.2 | 2.7 |
| Earnings per share attributable to owners of the company (euros) | 8.51 | 4.95 | 4.79 |
| Diluted earnings per share attributable to owners of the company (euros) | 8.39 | 4.87 | 4.74 |
| Earnings per share of continuing operations attributable to owners of the company (euros) |
4.79 | 4.82 | 4.61 |
| Diluted earnings per share of continuing operations attributable to owners of the company (euros) |
4.73 | 4.73 | 4.56 |
| Earnings per share of continuing operations attributable to owners of the company, excluding non-recurring items (euros) |
5.41 | 5.07 | 4.78 |
| Diluted earnings per share of continuing operations attributable to owners of the company, excluding non-recurring items (euros) |
5.34 | 4.99 | 4.73 |
(1) The consolidated income statements for 2013 and 2012 have been restated to reflect the impacts of IFRS 5 concerning discontinued operations along with the impact of applying IFRS 11.
| € millions | 2014 | 2013 | 2012 |
|---|---|---|---|
| Consolidated net profit for the period | 4,908.6 | 2,961.4 | 2,870.4 |
| Financial assets available-for-sale | -172.7 | 677.4 | 1,730.9 |
| Cash flow hedges | -17.2 | 13.2 | 103.0 |
| Cumulative translation adjustments | 584.0 | -457.0 | -134.3 |
| Income tax on items that may be reclassified to profit or loss (1) | 7.3 | -32.1 | -116.9 |
| Items that may be reclassified to profit or loss | 401.4 | 201.5 | 1,582.7 |
| Actuarial gains and losses | -672.7 | 188.9 | -271.9 |
| Income tax on items that may not be reclassified to profit or loss (1) | 225.1 | -63.8 | 86.7 |
| Items that may not be reclassified to profit or loss | -447.6 | 125.1 | -185.2 |
| Other comprehensive income | -46.2 | 326.6 | 1,397.5 |
| Consolidated comprehensive income | 4,862.4 | 3,288.0 | 4,267.9 |
| Attributable to: | |||
| • owners of the company | 4,864.3 | 3,284.9 | 4,265.1 |
| • non-controlling interests | -1.9 | 3.1 | 2.8 |
| (1) The tax effect is as follows: |
|||
| € millions | 2014 | 2013 | 2012 |
| Financial assets available-for-sale | 7.2 | -28.0 | -90.0 |
| Cash flow hedges | 0.1 | -4.1 | -26.9 |
| Items that may be reclassified to profit or loss | 7.3 | -32.1 | -116.9 |
| Actuarial gains and losses | 225.1 | -63.8 | 86.7 |
| Items that may not be reclassified to profit or loss | 225.1 | -63.8 | 86.7 |
| Total | 232.4 | -95.9 | -30.2 |
| € millions | 12.31.2014 | 12.31.2013 (1) | 12.31.2012 (1) |
|---|---|---|---|
| Non-current assets | 23,288.4 | 21,489.3 | 20,902.7 |
| Goodwill | 7,525.5 | 6,206.0 | 6,270.1 |
| Other intangible assets | 2,714.6 | 2,105.4 | 2,164.0 |
| Property, plant and equipment | 3,141.1 | 2,891.2 | 2,832.4 |
| Non-current financial assets | 9,069.0 | 9,204.0 | 8,526.2 |
| Investments in associates | - | 435.2 | 414.8 |
| Deferred tax assets | 838.2 | 647.5 | 695.2 |
| Current assets | 8,774.6 | 9,389.6 | 8,331.4 |
| Inventories | 2,262.9 | 2,085.2 | 1,971.1 |
| Trade accounts receivable | 3,297.8 | 3,022.8 | 3,051.7 |
| Other current assets | 1,199.3 | 1,500.3 | 969.4 |
| Current tax assets | 97.6 | 122.1 | 104.0 |
| Cash and cash equivalents | 1,917.0 | 2,659.3 | 2,235.2 |
| Total | 32,063.0 | 30,878.9 | 29,234.1 |
(1) Includes the impact of applying IFRS 11.
| € millions | 12.31.2014 | 12.31.2013 (1) | 12.31.2012 (1) |
|---|---|---|---|
| Equity | 20,188.7 | 22,642.8 | 20,925.5 |
| Share capital | 112.3 | 121.2 | 121.8 |
| Additional paid-in capital | 2,316.8 | 2,101.2 | 1,679.0 |
| Other reserves | 9,765.1 | 14,220.8 | 13,679.7 |
| Other comprehensive income | 3,745.9 | 4,370.1 | 3,586.4 |
| Cumulative translation adjustments | 17.8 | -566.4 | -109.4 |
| Treasury stock | -683.0 | -568.1 | -904.5 |
| Net profit attributable to owners of the company | 4,910.2 | 2,958.2 | 2,867.7 |
| Equity attributable to owners of the company | 20,185.1 | 22,637.0 | 20,920.7 |
| Non-controlling interests | 3.6 | 5.8 | 4.8 |
| Non-current liabilities | 2,595.6 | 1,928.6 | 2,114.3 |
| Provisions for employee retirement obligations and related benefits | 1,479.7 | 939.6 | 1,191.2 |
| Provisions for liabilities and charges | 193.6 | 174.5 | 181.8 |
| Deferred tax liabilities | 855.2 | 730.6 | 694.3 |
| Non-current borrowings and debt | 67.1 | 83.9 | 47.0 |
| Current liabilities | 9,278.7 | 6,307.6 | 6,194.3 |
| Trade accounts payable | 3,452.8 | 3,249.7 | 3,230.7 |
| Provisions for liabilities and charges | 722.0 | 528.8 | 533.8 |
| Other current liabilities | 2,415.6 | 2,095.5 | 2,055.6 |
| Income tax | 167.1 | 178.3 | 134.0 |
| Current borrowings and debt | 2,521.2 | 255.3 | 240.2 |
| Total | 32,063.0 | 30,878.9 | 29,234.1 |
(1) Includes the impact of applying IFRS 11.
| Common | Additional | Retained earnings |
Other | Cumulative | Equity attributable to owners |
Non | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| € millions | shares outstanding |
Share capital |
paid-in capital |
and net profit |
comprehensive income |
Treasury stock |
translation adjustments |
of the company |
controlling interests |
Total equity |
| At 12.31.2012 | 598,356,662 | 121.8 | 1,679.0 | 16,547.4 | 3,586.4 | -904.5 | -109.4 | 20,920.7 | 4.8 | 20,925.5 |
| Consolidated net profit for the period | 2,958.2 | 2,958.2 | 3.2 | 2,961.4 | ||||||
| Financial assets available-for-sale | 649.5 | 649.5 | 649.5 | |||||||
| Cash flow hedges | 9.1 | 9.1 | -0.1 | 9.0 | ||||||
| Cumulative translation adjustments | -457.0 | -457.0 | -457.0 | |||||||
| Other comprehensive income that may be reclassified to profit and loss |
658.6 | -457.0 | 201.6 | -0.1 | 201.5 | |||||
| Actuarial gains and losses | 125.1 | 125.1 | 125.1 | |||||||
| Other comprehensive income that may not be reclassified to profit and loss |
125.1 | 125.1 | 125.1 | |||||||
| Consolidated comprehensive income | 2,958.2 | 783.7 | -457.0 | 3,284.9 | 3.0 | 3,288.0 | ||||
| Capital increase | 6,199,701 | 1.2 | 422.2 | 423.4 | 423.4 | |||||
| Cancellation of Treasury stock | -1.8 | -996.7 | 998.5 | - | - | |||||
| Dividends paid (not paid on Treasury stock) | -1,380.6 | -1,380.6 | -2.5 | -1,383.1 | ||||||
| Share-based payment | 97.2 | 97.2 | 97.2 | |||||||
| Net changes in Treasury stock | -4,762,333 | 1.4 | -662.1 | -660.7 | -660.7 | |||||
| Purchase commitments for minority interests | -48.3 | -48.3 | -0.9 | -49.2 | ||||||
| Changes in scope of consolidation | - | 1.4 | 1.4 | |||||||
| Other movements | 0.4 | 0.4 | 0.4 | |||||||
| At 12.31.2013 | 599,794,030 | 121.2 | 2,101.2 | 17,179.0 | 4,370.1 | -568.1 | -566.4 | 22,637.0 | 5.8 | 22,642.8 |
| Consolidated net profit for the period | 4,910.2 | 4,910.2 | -1.6 | 4,908.6 | ||||||
| Financial assets available-for-sale | -165.5 | -165.5 | -165.5 | |||||||
| Cash flow hedges | -17.0 | -17.0 | -0.1 | -17.1 | ||||||
| Cumulative translation adjustments | 584.2 | 584.2 | -0.2 | 584.0 | ||||||
| Other comprehensive income that may be reclassified to profit and loss |
-182.5 | 584.2 | 401.7 | -0.3 | 401.4 | |||||
| Actuarial gains and losses | -447.6 | -447.6 | -447.6 | |||||||
| Other comprehensive income that may not be reclassified to profit and loss |
-447.6 | -447.6 | -447.6 | |||||||
| Consolidated comprehensive income | 4,910.2 | -630.1 | 584.2 | 4,864.3 | -1.9 | 4,862.4 | ||||
| Capital increase | 3,828,502 | 0.8 | 215.6 | -0.1 | 216.3 | 2.3 | 218.6 | |||
| Cancellation of Treasury stock | -9.7 | -6,035.9 | 6,045.6 | - | - | |||||
| Dividends paid (not paid on Treasury stock) | -1,507.3 | -1,507.3 | -2.8 | -1,510.1 | ||||||
| Share-based payment | 113.5 | 113.5 | 113.5 | |||||||
| Net changes in Treasury stock | -49,380,654 | 0.2 | -6,160.5 | -6,160.3 | -6,160.3 | |||||
| Purchase commitments for minority interests | 21.0 | 21.0 | -2.3 | 18.7 | ||||||
| Changes in scope of consolidation | - | 2.5 | 2.5 | |||||||
| Other movements | -5.3 | 5.9 | 0.6 | 0.6 | ||||||
| At 12.31.2014 | 554,241,878 | 112.3 | 2,316.8 | 14,675.3 | 3,745.9 | -683.0 | 17.8 | 20,185.1 | 3.6 | 20,188.7 |
| € millions | 2014 | 2013 (1) | 2012 (1) |
|---|---|---|---|
| Cash flows from operating activities | |||
| Net profit attributable to owners of the company | 4,910.2 | 2,958.2 | 2,867.7 |
| Non-controlling interests | -1.6 | 3.2 | 2.7 |
| Elimination of expenses and income with no impact on cash flows: | |||
| • depreciation, amortisation and provisions | 856.2 | 767.8 | 623.4 |
| • changes in deferred taxes | 60.0 | 15.9 | 34.9 |
| • share-based payment (including free shares) | 113.5 | 97.2 | 86.4 |
| • capital gains and losses on disposals of assets | -0.9 | 0.1 | -4.3 |
| Net profit from discontinued operations | -2,142.7 | -80.0 | -108.1 |
| Share of profit in associates net of dividends received | 13.5 | -4.6 | 4.6 |
| Gross cash flow | 3,808.2 | 3,757.9 | 3,507.3 |
| Changes in working capital | 55.9 | -67.6 | -108.6 |
| Net cash provided by operating activities (A) | 3,864.1 | 3,690.3 | 3,398.7 |
| Cash flows from investing activities | |||
| Purchases of property, plant and equipment and intangible assets | -1,008.2 | -1,018.8 | -923.3 |
| Disposals of property, plant and equipment and intangible assets | 18.7 | 8.5 | 7.1 |
| Changes in other financial assets (including investments in non-consolidated companies) | 403.4 | -464.8 | 443.6 |
| Dividends received from discontinued operations | 41.7 | 56.3 | 48.0 |
| Effect of changes in the scope of consolidation | 1,194.0 | -138.4 | -464.7 |
| Net cash (used in) from investing activities (B) | 649.6 | -1,557.2 | -889.3 |
| Cash flows from financing activities | |||
| Dividends paid | -1,589.3 | -1,425.4 | -1,267.8 |
| Capital increase of the parent company | 216.4 | 423.4 | 408.8 |
| Capital increase of subsidiaries | 2.3 | - | 1.4 |
| Disposal (acquisition) of Treasury stock | -6,160.3 | -660.6 | -257.7 |
| Issuance (repayment) of short-term loans | 2,225.0 | 48.9 | -792.8 |
| Issuance of long-term borrowings | 0.2 | - | - |
| Repayment of long-term borrowings | -13.0 | -19.7 | -13.1 |
| Net cash (used in) from financing activities (C) | -5,318.7 | -1,633.4 | -1,921.2 |
| Net cash (used in) from discontinued operations (D) | - | 23.0 | -20.4 |
| Net effect of changes in exchange rates and fair value (E) | 62.7 | -75.6 | -17.2 |
| Change in cash and cash equivalents (A+B+C+D+E) | -742.3 | 447.1 | 550.6 |
| Cash and cash equivalents at beginning of the year (F) | 2,659.3 | 2,235.2 | 1,664.2 |
| Change in cash and cash equivalents of discontinued operations (G) | - | -23.0 | 20.4 |
| Cash and cash equivalents at end of the year (A+B+C+D+E+F+G) | 1,917.0 | 2,659.3 | 2,235.2 |
(1) The statements of cash flows for 2013 and 2012 have been restated to reflect the impacts of IFRS 5 concerning discontinued operations along with the impact of applying IFRS 11.
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