Quarterly Report • Nov 25, 2015
Quarterly Report
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Year to date 2015 (9M15)
CORTICEIRA AMORIM; S.G.P.S., S.A. Sociedade Aberta
Capital Social: EUR 133 000 000,00 C.R.C. Sta. Maria da Feira NIPC e Matrícula n.º: PT 500 077 797 Edifício Amorim I Rua de Meladas, n.º 380 Apartado 20 4536-902 MOZELOS VFR PORTUGAL
Tel.: 22 747 54 00 Fax: 22 747 54 07
Internet: www.corticeiraamorim.com E-mail: [email protected]
According to Law, as adopted by CORTICEIRA AMORIM, SGPS, S.A, a public company, presents:
Despite the ups and downs recorded in different countries, the world economy will have had during the third quarter (Q3) a rate of growth only marginally lower than that recorded in the first half of the year. Believing in the statistics released, the much-touted breakdown of the Chinese economy turned out to be materialized in a few tiny decimals. The most important in its evolution it will be a qualitative change of this growth, now less focused on exports and investment. Maintaining this standard could have important consequences in the coming quarters for exporters targeting that market.
In addition to this macroeconomic context, the permanence of a strong USD and continued commercial dynamic of CORTICEIRA AMORIM led to another good quarter in terms of sales and in terms of results
| Sales | Quarterly | Accumulated | |||
|---|---|---|---|---|---|
| 1Q15 | 2Q15 | 3Q15 | 6M15 | 9M15 | |
| +6.3% | +7.6% | +9.3% | +7.0% | +7.7% |
The currency impact continued to be crucial in this performance, especially for the USD. To point out, however, that this importance has been decreasing over the quarters. So while in the first half the exchange rate effect justified about three-quarters of the increase in sales in the third quarter that effect justified only slightly more than half of the growth. In cumulative terms, excluding the exchange rate effect, sales would have increased by about 2.6%.
A relevant fact is that the 3Q15 sales of all BU were higher than the same quarter of 2014, both in total sales, and sales to end customers. This record is especially important for the Floor & Wall Coverings BU, as in Q3 this BU managed to reverse the negative trend of the first half of the year. This signal change was not, however, enough to turn positive the accumulated variation of its sales.
Cumulative sales reached 462.9 million euros (M €), plus about 33 M € in the same period of 2014 (+ 7.7%).
The dynamics of sales continued to be driven by the Business Unit (BU) Stoppers (+ 9.4%) and Composite Cork BU (+ 19.4%). Although these two BU being the most benefited by the exchange rate evolution, organic growth presented by these two BU is still remarkable (Stoppers: + 4.4% and Composites: + 10.2%).
The insulation continued to show a gradual recovery of its sales, having finished the 9 months with growth of about 5.7% in sales to end customers. As mentioned Floor & Wall Coverings, in spite of a recovery in the third quarter, still had a negative accumulated variation of about 5%.
The good operating performance enabled EBITDA to reach in the quarter 25.8 M €, representing a ratio on sales of 16.8%. This ratio compares favorably with the first quarter and unfavorably with the semester. In accumulated terms, EBITDA reached 80.2 M €, a growth of 21% compared to 2014. The cumulative ratio of sales was 17.3%, which compares with 15.4% for the nine months 2014.
The exchange effect also impacted favorably EBITDA. Expunged this effect growth would be 4%.
The financial results recorded further improvement, the result of lower indebtedness and best comparative interest rates. To emphasize the increase in the contribution of results of associate companies, which have more one million euros that the same period 2014.
In the third quarter net profit reached 15.388 M € (+ 45%), an increase that is in line with the presented in previous quarters.
The cumulative net profit amounted to 41.610 M €, up 43.3% over the nine months of 2014 (29.034 M €).
During the third quarter the activity of Raw Materials BU has slightly decreased, not pulling away, however, the growth trend registered in the first half of the year. Cumulative sales reached 101.7 M € (+ 3.3%), of which more than 95% went to other BU, and of these the share of sales for Stoppers is about 90%.
In the second quarter the BU began labouring cork of the 2014 campaign, which have a relationship price / quality less favourable. Nevertheless, the benefits derived from the measures aimed at increasing the efficiency of the BU managed to more than make up for that effect. Thus, at the end of the third quarter, the EBITDA (€ 13.4 million) showed a rise of 14.2%, returning to the pace of growth seen in the first three months of 2015.
At the time of this report the cork campaign 2015 is almost complete. Cork purchase objectives, both in bulk and in price, have been achieved.
This BU continues a broad set of actions and investments for operational improvement.
Sales of Cork Stoppers BU surpassed 300 M €, an increase of 9.4% at the end of the third quarter. A currency effect slightly less favourable was the main cause of the slight slowdown in sales growth of this BU (Q3: + 8%).
The currency effect on sales continued to be important. Excluding this effect, growth would have been in the order of 5%, nearly all justified by the volume effect.
As for products, Neutrocork ® stoppers and corks for champagne segment continue to present a good performance. These two products presented significant sales increases, both in value and in quantity.
As for markets, we must note the dynamics of the US market, where growth came not only from the appreciation of the USD, but also from volumes sold. As a result of such dynamics, the US managed to almost match the French market, traditionally the number one market of this BU. In the remaining markets, special note for the sales achieved in Italy and in almost all the so-called new markets, especially Argentina, Chile and South Africa.
EBITDA reached 48.4 M € a rise of 26.7% over the first nine months of 2014, a slight slowdown when compared to the over 30% of the semester.
The Floor & Wall Coverings BU managed to reverse in the third quarter, albeit slightly, the negative trend that had been observed in the first six months. The strong performance of new products (Hydrocork and Cork Design) was instrumental to the expected turn of the page. The growth of almost 2% was, however, not enough to drag to positive the deviation recorded in the first half. The sales drop in traditional products remained during the quarter.
Cumulative sales have reached 84.5 M €, 4.9% less than the first nine months of 2014.
Russia and the United States still contributing negatively to the BU activity.
Despite the continued effort to reduce operating costs, decreased activity, and contrary to what happened in other BU's, the unfavourable effect of the USD, led to a sharp drop (40%) of EBITDA recorded in the nine months (7.2 M €).
The Composite Cork BU has recorded successive increase quarters of its activity. The third quarter, by presenting a sales growth of 27%, largely contributed to the 75.1 M € accumulated sales (+ 19.4%).
Being the most exposed to exchange variation, in this case almost exclusively to the USD, this BU clearly benefited from the appreciation of this currency. However, only about half of the percentage increase in the accumulated sales resulted from this exogenous factor, which leaves a good 10% for organic growth. The volume effect explains almost all of this growth.
An important part of this performance comes from the US market. And it is not only by the exchange rate effect since the activity in the most important market of this BU increased far beyond the exchange effect.
In terms of products, it is important to mention that all families registered sales growth. The exception was the Transportation, which is naturally subject to the cycles of major projects that fits this activity.
A special note for sales related to the IKEA project and sales related with sports activity.
Reaching a cumulative value of 11.5 M €, EBITDA registered a significant increase (+ 68%). Without the benefit of exchange rate this growth is still about 22%.
Insulation BU's sales continued to recover from an early anaemic year. Although consolidated sales of 7.6 M € are marginally below the three quarters of 2014 (-0.6%), sales to end customers grew by about 5.7%.
Third quarter sales (+ 12%) contributed to this growth. The increase in the sale of specialties offset decrease in expanded agglomerated cork.
The value reached by EBITDA (1.2 M €) fell by 6% and was affected by an unusually high register of impairments in the third quarter.
As mentioned in the summary of the activity, sales amounted to 462.9 M €, representing an increase of 7.7% compared to the first nine months of 2014. It was also referred the important contribution of currency appreciation of non-euro currencies in that increase, in particular the effect USD. Aside from this effect, growth was estimated at 2.6%, a more favourable variance than the 2% in the first half.
The increase in sales in almost 33 M € has been transposed into Gross Margin (29 M €), being the increased activity responsible for the growth in operating costs of 15 M € (+ 10.3%). This growth, almost equalling 11% of the increase in production, is justified by the significant effect that currency valuations had in operating costs of Sales, particularly in the four North American distributors. The total currency effect on the increase in operating costs represented 2.2%. Also the need for hiring workers in the Composites and capsulated corks explains important part of this increase (more 137 in the average number of employees than in the same period of 2014). It should be noted also the register of one-off costs, of which we must emphasize those related to research and development in Cork Stoppers BU, a better assessment of finished goods impairments in Composites and a stiffer criteria regarding the impairment of the balances of customers. These variations and registers have been described in greater detail in the first half report. Total of these records reached 2.7 M €.
EBITDA reached thus 80.2 M €, up 21.3% over the nine months of 2014. Excluding the exchange rate effect, the increase would have been 4%.
In terms of EBITDA / Sales ratio, the amount recorded in Q3 (16.8%), brought down the accumulated until September to 17.3%. Comparisons with the corresponding periods 2014 are, however, favourable (9M14: 15.4% and 3Q14: 16%).
To highlight the ratio concerning integrated units Raw Materials + Cork Stoppers, which reached at the end of nine months the value of 20.2%.
In terms of EBIT, the accumulated value was 61.4 M €, an increase of 24.4%.
As mentioned in the respective report in the first quarter it was recognized a non-recurring expense amounting to 2.9 M € related to Goodwill impairment. After this register the amount of this account was reduced to zero.
For the third consecutive quarter this year, the amount of financial expenses dropped, reaching a cumulative net expense of 1.7 M €, a decrease of 1.4 M € compared to the same period of 2014. Low interest bearing debt and a significant reduction in the interest rate, continue to justify such development.
In the third quarter gains related to associates accelerated. The cumulative value of 2 M € is 1.1 M € higher than the value recorded in September previous year. The main contribution in the quarter and year-to-date comes from the associate US Floors.
After 17.1 M € on the income tax estimate, the net profit attributable to shareholders of CORTICEIRA AMORIM amounted to 41.61 M €, approximately 43.3% above 29.034 M € in the first nine months of 2014.
Regarding the third quarter, net income was 15.387 M €, representing an increase of 45% over the same quarter of 2014.
For a better understanding of the balance sheet as of September 2015, it should be noted that by the middle of this month CORTICEIRA AMORIM sold all the treasury stock that has held for long in its portfolio. This operation took place in the form of a particular offer for sale of 7,399,262 shares, representing 5.56% of its share capital at a price of 4.45 euros per share. The gross revenue was 32.9 M €. Since we are in the presence of an operation involving shareholders without company control change, the gain on the sale was recorded directly in equity (25.7 M €).
Total balance reached 717 M €, an increase of € 100 million compared with December and 60 M € in relation to September 2014. Of the variations to any of these two periods, we must note the inflation of about 30 M € in the balance sheet September 2015. This inflation has to do with the unusually high cash and equivalents as of September 2015 (37 M € versus about 7 M € in the other two comparative dates). The explanation for this unusually high value derives from the cash inflow resulting from the sale of treasury stock referred above. This value has not been used to reduce interest bearing debt since it is the intention of the Board of Directors to propose to the shareholders of CORTICEIRA AMORIM an exceptional distribution of dividends for an amount almost equal to the cash inflow of the treasury stock sale.
Apart from the above inflated figures, the remaining increase results largely from the increased activity (see the increase of 22 M € in the balance of customers between December and September) and a cork acquisition campaign in 2015 abnormally high, which had a material impact on the value of the raw materials inventories. Still to be referred the increase in stocks of finished products as seen in the Change in manufactured inventories.
Comparing to September 2014, the note goes especially to the increase in inventories (both raw materials and finished products).
As mentioned Equity was impacted both by the results, and by the dividends paid effect. But the great variation comes from the aforementioned register of the 25.7 M € gain from the sale of the treasury stock. With the expected payment in the fourth quarter of dividends to be approved at the General Shareholders Meeting convened for 13 November, this variation will be largely cancelled in December 2015. As of September 2015 Equity totalled 373 M €, a rise of around 57 M € compared to December and September 2014.
Not taking into account the cash inflow resulting from the sale of treasury stock, net debt dropped to 86.3 M €, a decrease of more than 8 M € relative to twelve months ago and almost equalling debt at the end of 2014.
The Equity / Net Assets ratio reached 52.1% (December 2014: 51.1%).
| 9M15 | 9M14 | Variation | 3Q15 | 3Q14 | Variation | ||
|---|---|---|---|---|---|---|---|
| Sales | 462,889 | 429,685 | 7.7% | 153,692 | 140,641 | 9.3% | |
| Gross Margin – Value | 242,339 | 213,126 | 13.7% | 77,080 | 66,508 | 15.9% | |
| 1) | 50.7% | 49.5% + 1.2 p.p. | 52.0% | 48.1% + 3.9 p.p. | |||
| Operating Costs - current | 180,899 | 163,729 | 10.5% | 55,961 | 48,243 | 16.0% | |
| EBITDA - current | 80,155 | 66,083 | 21.3% | 25,777 | 22,470 | 14.7% | |
| EBITDA/Sales | 17.3% | 15.4% + 1.9 p.p. | 16.8% | 16.0% + 0.8 p.p. | |||
| EBIT - current | 61,440 | 49,397 | 24.4% | 21,120 | 18,265 | 15.6% | |
| Non-current costs | 2) | 2,907 | 3,514 | N/A | -5 | 779 | N/A |
| Net Income | 41,610 | 29,034 | 43.3% | 15,388 | 10,614 | 45.0% | |
| Earnings per share | 0.330 | 0.230 | 43.3% | 0.122 | 0.084 | 45.0% | |
| Net Bank Debt | 3) | 86,277 | 94,753 | - 8,476 | - | - | - |
| Net Bank Debt/EBITDA (x) | 4) | 0.86 | 1.14 | -0.28 x | - | - | - |
| EBITDA/Net Interest (x) | 5) | 69.5 | 29.1 | 40.45 x | 62.5 | 32.5 | 30.03 x |
| Equity/Net Assets | 52.1% | 48.3% + 3.8 p.p. | - | - | - |
1) Related to Production
2) Due to property investment impairment and to industrial restructuring expenses
3) 9M 15: Excluding the value of the dividend proposal of the Board of Directors to the GSM amounting to 32.6 M € to be paid in November
4) Current EBITDA of the last four quarters
5) Net interest includes interest from loans deducted of interest from deposits (excludes stamp tax and commissions)
After September 30, 2015 and up to the date of this report, no other relevant events have occurred which might materially affect the financial position and future profit or loss of CORTICEIRA AMORIM and its subsidiaries included in the consolidation taken as a whole.
| Mozelos, November 2, 2015 | |
|---|---|
| The Board of CORTICEIRA AMORIM, S.G.P.S., S.A. | |
| António Rios de Amorim | |
| Chairman | |
| Nuno Filipe Vilela Barroca de Oliveira | |
| Vice-President | |
| Fernando José de Araújo dos Santos Almeida | |
| Member | |
| Cristina Rios de Amorim Baptista | |
| Member | |
| Luísa Alexandra Ramos Amorim | |
| Member | |
| Juan Ginesta Viñas | |
| Member | |
| thousand euros | |||
|---|---|---|---|
| September | December | September | |
| 2015 | 2014 | 2014 | |
| Assets | |||
| Property, plant and equipment | 181,529 | 182,893 | 180,848 |
| Investment property | 4,997 | 5,190 | 5,244 |
| Goodwill | 0 | 2,911 | 5,255 |
| Investments in associates | 12,998 | 10,841 | 10,444 |
| Intangible assets | 1505 | 1,091 | 687 |
| Other financial assets | 3,946 | 3,631 | 3,193 |
| Deferred tax assets | 8,066 | 6,708 | 7,768 |
| Other non current assets | 213,041 | 213,265 | 213,438 |
| Inventories | 286,153 | 247,633 | 257,934 |
| Trade receivables | 144,287 | 122,606 | 137,649 |
| Current tax assets | 9,539 | 2,233 | 9,500 |
| Other current assets | 26,962 | 25,673 | 29,468 |
| Cash and cash equivalents | 36,889 | 6,036 | 7,469 |
| Current assets | 503,830 | 404,181 | 442,019 |
| Total Assets | 716,871 | 617,446 | 655,457 |
| Equity | |||
| Share capital | 133,000 | 133,000 | 133,000 |
| Treasury stock | 0 | -7,197 | -7,197 |
| Other reserves | 185,670 | 140,617 | 148,740 |
| Net Income | 41,610 | 35,756 | 29,034 |
| Non-Controlling Interest | 12,938 | 13,393 | 13,074 |
| Equity | 373,217 | 315,569 | 316,650 |
| Liabilities | |||
| Interest-bearing loans | 61,521 | 26,225 | 33,806 |
| Other borrowings and creditors | 13,134 | 11,533 | 11,449 |
| Provisions | 28,653 | 27,951 | 24,596 |
| Deferred tax liabilities | 6,962 | 6,970 | 7,451 |
| Non-current liabilities | 110,270 | 72,678 | 77,303 |
| Interest-bearing loans | 29,059 | 67,369 | 68,416 |
| Trade payables | 142,109 | 115,303 | 125,948 |
| Other borrowings and creditors | 45,292 | 44,007 | 52,274 |
| Tax liabilities | 16,923 | 2,520 | 14,866 |
| Current liabilities | 233,384 | 229,199 | 261,504 |
| Total Liabilities and Equity | 716,871 | 617,446 | 655,457 |
| thousand euros | ||||
|---|---|---|---|---|
| 3Q15 | 3Q14 | 9M15 | 9M14 | |
| 153,692 | 140,641 | Sales | 462,889 | 429,685 |
| 71,171 | 71,886 | Costs of goods sold and materials consumed | 235,399 | 217,199 |
| -5,441 | -2,248 | Change in manufactured inventories | 14,849 | 639 |
| 25,011 | 22,471 | Third party supplies and services | 76,425 | 71,731 |
| 23,918 | 21,934 | Staff costs | 81,127 | 76,169 |
| 1,865 | 1,236 | Impairments of assets | 2,692 | 1,315 |
| 2,890 | 2,990 | Other gains | 6,523 | 6,562 |
| 3,399 | 1,386 | Other costs | 8,462 | 4,389 |
| 25,776 | 22,470 | Current EBITDA | 80,155 | 66,083 |
| 4,657 | 4,206 | Depreciation | 18,715 | 16,687 |
| 21,120 | 18,265 | Current EBIT | 61,441 | 49,397 |
| -5 | 779 | Non-current itens | 2,907 | 3,514 |
| 513 | 1,042 | Financial costs | 1,721 | 3,278 |
| -44 | 3 2 |
Financial income | 2 6 |
124 |
| 956 | 181 | Share of (loss)/profit of associates | 2,040 | 926 |
| 21,523 | 16,657 | Profit before tax | 58,879 | 43,655 |
| 6,006 | 5,781 | Income tax | 17,088 | 13,926 |
| 15,517 | 10,875 | Profit after tax | 41,791 | 29,728 |
| 128 | 261 | Non-Controlling Interest | 181 | 695 |
| 15,388 | 10,615 | Net Income attributable to the equity holders of Corticeira Amorim |
41,610 | 29,034 |
| 0.122 | 0.084 | Earnings per share - Basic e Diluted (euros per share) | 0.330 | 0.230 |
3 RD QUARTER AND 9 MONTHS (NON AUDITED)
| thousand euros | ||||
|---|---|---|---|---|
| 3Q15 | 3Q14 | 9M15 | 9M14 | |
| 15,517 | 8,741 | Net Income (before Min. Interest) | 41,791 | 29,728 |
| Itens that could be reclassified through income statement: | ||||
| 132 | 238 | Change in derivative financial instruments fair value | 351 | -263 |
| 25,729 | 0 | Gain in the sale of treasury stock | 25,729 | 0 |
| -1,634 | -753 | Change in translation differences | 445 | 880 |
| 24,228 | -515 | Net Income directly registered in Equity | 26,525 | 617 |
| 39,745 | 8,226 | Total Net Income registered | 68,316 | 30,345 |
| Attributable to: | ||||
| 40,166 | 8,297 | Corticeira Amorim Shareholders | 68,491 | 29,919 |
| -421 | -71 | Non-Controlling Interest | -175 | 426 |
| thousand euros | ||||
|---|---|---|---|---|
| 3Q15 | 3Q14 | 9M15 | 9M14 | |
| (non audited) | (non audited) | (non audited) | (non audited) | |
| OPERATING ACTIVITIES | ||||
| 174,294 | 168,678 | Collections from customers | 482,526 | 458,744 |
| -138,981 | -131,996 | Payments to suppliers | -386,491 | -380,502 |
| -27,661 | -35,260 | Payments to employees | -79,882 | -77,561 |
| 7,652 | 1,422 | Operational cash flow | 16,153 | 681 |
| -7,846 | -2,097 | Payments/collections - income tax | -9,705 | -4,710 |
| 11,762 | 19,416 | Other collections/payments related with operational activities | 29,963 | 47,331 |
| 11,568 | 18,741 | CASH FLOW BEFORE EXTRAORDINARY ITEMS | 36,411 | 43,302 |
| INVESTMENT ACTIVITIES | ||||
| Collections due to: | ||||
| 133 | 194 | Tangible assets | 406 | 665 |
| 49 | 2 | Investment property | 49 | 2 |
| 66 | 25 | Other assets | 145 | 103 |
| 8 | 23 | Interests and similar gains | 31 | 67 |
| 0 | - 1 |
Investment subsidies | 0 | 0 |
| 162 | 173 | Dividends | 162 | 173 |
| Payments due to: | ||||
| -6,215 | -5,208 | Tangible assets | -17,044 | -14,589 |
| 47 | -976 | Financial investments | -61 | -1,887 |
| -226 | -99 | Intangible assets | -420 | -110 |
| -5,977 | -5,867 | CASH FLOW FROM INVESTMENTS | -16,733 | -15,576 |
| FINANCIAL ACTIVITIES | ||||
| Collections due to: | ||||
| 32,927 | 0 | Sale of treasury stock | 32,927 | 0 |
| 730 | 354 | Others | 1,535 | 1,558 |
| Payments due to: | ||||
| -7,229 | -11,942 | Loans | -5,657 | -14,351 |
| -570 | -1,500 | Interests and similar expenses | -1,934 | -3,725 |
| -281 | -147 | Dividends | -17,912 | -15,513 |
| -122 | -77 | Others | -332 | -324 |
| 25,454 | -13,312 | CASH FLOW FROM FINANCING | 8,626 | -32,355 |
| 31,046 | -438 | Change in cash | 28,305 | -4,629 |
| -91 | 58 | Exchange rate effect | -52 | - 8 |
| -8,501 | -10,452 | Cash at beginning | -5,799 | -6,195 |
| 22,453 | -10,832 | Cash at end | 22,453 | -10,832 |
| thousand euros | |||||||
|---|---|---|---|---|---|---|---|
| Balance Beginning |
Appropriation of N-1 profit |
Dividends Net Profit N |
Increases / Decreases |
Translation Differences |
End Balance |
||
| September 30, 2015 | |||||||
| Equity: | |||||||
| Share Capital | 133,000 | - | - | - | - | - 133,000 | |
| Treasury Stock - Face Value | -7,399 | - | - | - | 7,399 | - | 0 |
| Treasury Stock - Discounts and Premiums | 201 | - | - | - | -201 | - | 0 |
| Paid-in Capital | 38,893 | - | - | - | - | - | 38,893 |
| Hedge Accounting | -45 | - | - | - | 351 | - | 306 |
| Reserves | |||||||
| Legal Reserve | 12,243 | 2,051 | - | - | - | - | 14,294 |
| Other Reserves | 89,300 | 33,705 | -17,584 | - | 25,790 | - 131,211 | |
| Translation Difference | 226 | - | - | - | -46 | 785 | 965 |
| 266,419 | 35,756 | -17,584 | 0 | 33,293 | 785 318,670 | ||
| Net Profit for the Year | 35,756 | -35,756 | - | 41,610 | - | - | 41,610 |
| Minority interests | 13,393 | - | -280 | 181 | 4 | -360 | 12,938 |
| Total Equity | 315,569 | 0 | -17,864 | 41,791 | 33,297 | 425 373,218 | |
| September 30, 2014 | |||||||
| Equity: | |||||||
| Share Capital | 133,000 | - | - | - | - | - 133,000 | |
| Treasury Stock - Face Value | -7,399 | - | - | - | - | - | -7,399 |
| Treasury Stock - Discounts and Premiums | 201 | - | - | - | - | - | 201 |
| Paid-in Capital | 38,893 | - | - | - | - | - | 38,893 |
| Hedge Accounting | 10 | - | - | - | - | -263 | -253 |
| Reserves | |||||||
| Legal Reserve | 12,243 | - | - | - | - | - | 12,243 |
| Other Reserves | 82,886 | 30,339 | -15,072 | - | 104 | - | 98,257 |
| Translation Difference | -1,445 | - | - | - | -45 | 1,090 | -400 |
| 258,389 | 30,339 | -15,072 | 0 | 59 | 827 274,543 | ||
| Net Profit for the Year | 30,339 | -30,339 | - | 29,034 | - | - | 29,033 |
| Minority interests | 13,009 | - | -360 | 695 | -13 | -256 | 13,074 |
| Total Equity | 301,737 | 0 | -15,432 | 29,728 | 46 | 571 316,650 |
At the beginning of 1991, Corticeira Amorim, S.A. was transformed into CORTICEIRA AMORIM, S.G.P.S., S.A., the holding company for the cork business sector of the Amorim Group. In this report, CORTICEIRA AMORIM will be the designation of CORTICEIRA AMORIM, S.G.P.S., S.A., and in some cases the designation of CORTICEIRA AMORIM, S.G.P.S. together with all of its subsidiaries.
CORTICEIRA AMORIM, directly or indirectly, holds no interest in land properties used to grow and explore cork tree. Cork tree is the source of cork, the main raw material used by CORTICEIRA AMORIM production units. Cork acquisition is made in an open market, with multiple agents, both in the demand side as in the supply side.
CORTICEIRA AMORIM is mainly engaged in the acquisition and transformation of cork into a numerous set of cork and cork related products, which are distributed worldwide through its network of sales company.
CORTICEIRA AMORIM is a Portuguese company with a registered head office in Mozelos, Santa Maria da Feira. Its share capital amounts to 133 million euros, and is represented by 133 million shares, which are publicly traded in the Euronext Lisbon – Sociedade Gestora de Mercados Regulamentados, S.A.
Amorim Capital - Sociedade Gestora de Participações Sociais, S.A. held 67,830,000 shares of CORTICEIRA AMORIM as of September 30, 2015 corresponding to 51.00 % of its share capital (December 2014: 67,830,000 shares). Amorim Capital - Sociedade Gestora de Participações Sociais, S.A. is fully owned by Amorim family.
These financial statements were approved in the Board Meeting of November 2, 2015.
Except when mentioned, all monetary values are stated in thousand euros (Thousand euros = K euros = K€).
Some figures of the following notes may present very small differences not only when compared with the total sum of the parts, but also when compared with figures published in other parts of this report. These differences are due to rounding aspects of the automatic treatment of the data collected.
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented.
Consolidated statements were prepared based on a going concern basis and using the records as stated in the companies' books, which adopted Portuguese general accepted accounting principles. Accounting adjustments and reclassifications were made in order to comply with accounting policies followed by the IFRS, as adopted by the European Union (IAS – International Accounting Standards and the IFRS – International Financial Reporting Standards) and legal for use as of September 30, 2015, namely IAS 34.
Group companies, often designated as subsidiaries, are entities over which CORTICEIRA AMORIM has a shareholding of more than one-half of its voting rights, or has the power to govern its management, namely its financial and operating policies.
Group companies are consolidated line by line, being the position of third-party interests in the shareholding of those companies stated in the consolidated financial position in the "Non-controlling interest" account. Date of first consolidation or de-consolidation is, in general, the beginning or the end of the quarter when the conditions for that purpose are fulfilled.
Profit or loss is allocated to the shareholders of the mother company and to the non-controlling interest in proportion of their correspondent parts of capital, even in the case that non-controlling interest become negative.
IFRS 3 is applied to all business combinations past January 1, 2010, according to Regulamento no. 495/2009, of June 3, as adopted by the European Commission. When acquiring subsidiaries the purchasing method will be followed. According to the revised IFRS, the acquisition cost will be measured by the given fair value assets, by the assumed liabilities and equity interest issued. Transactions costs will be charged as incurred and the services received. The exceptions are the costs related with debt or capital issued. These must be registered according to IAS 32 and IAS 39. Identifiable purchased assets and assumed liabilities will be initially measured at fair value. The acquirer shall recognized goodwill as of the acquisition date measured as the excess of (i) over (ii) below:
In the case that (ii) exceeds (i), a difference must be registered as a gain.
Inter-company transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealized losses are also eliminated but considered an impairment indicator of the asset transferred.
Non-controlling Interest are recorded at fair value or in the proportion of the percentage held in the net asset of the acquire, as long as it is effectively owned by the entity. The others components of the non-controlling interest are registered at fair value, except if other criteria is mandatory.
Transactions with Non-controlling interests are treated as transactions with Group Equity holders.
In any acquisition from non-controlling interests, the difference between the consideration paid and the accounting value of the share acquired is recognised in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.
When the Group ceases to have control or significant influence, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognised in profit or loss.
Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding between 20% and 50% of voting rights. Investments in associates are accounted for using the equity method of accounting and are initially recognised at cost. The Group's investment in associates includes goodwill. Future impairments of goodwill will be adjusted against the carrying amount of investments The Group's share of its associates post-acquisition profits or losses is recognised in the income statement, in the "Gain/(losses) in associates" account, and its share of post-acquisition movements in reserves is recognised in reserves. The carrying amount is also adjusted by dividends received. When the Group's share of losses in an associate equals or exceeds its interest in the associate, the group does not recognise further losses, unless it has incurred obligation on behalf of the associate, in this case the liabilities will be recorded in a "Provisions" account.
Euro is the legal currency of CORTICEIRA AMORIM, S.G.P.S., S.A., and is the currency in which two thirds of its business is made and so Euro is considered to be its functional and presentation currency.
In non-euro subsidiaries, all assets and liabilities denominated in foreign currency are translated to euros using yearend exchange rates. Net exchange differences arising from the different rates used in transactions and the rate used in its settlements is recorded in the income statement.
Assets and liabilities from non-euro subsidiaries are translated at the balance sheet date exchange rate, being its costs and gains from the income statement translated at the average exchange rate for the period / year.
Exchange differences are registered in an equity account "Translation differences" which is part of the line "Other reserves".
Whenever and a non-euro subsidiary is sold or liquidated, accumulated translation differences recorded in equity is registered as a gain or a loss in the consolidated income statement by nature.
Tangible fixed assets are originally their respective historical cost (including attributable expenses) or production cost, including, whenever applicable, interest costs incurred throughout the respective construction or start-up period, which are capitalised until the asset is ready for its projected use.
Tangible fixed assets are subsequently measured at acquisition cost, deducted from cumulative depreciations and impairments.
Depreciation is calculated on the straight-line basis, over the following years, which represent a reasonable estimate of the useful lives:
| Number of years | |
|---|---|
| Buildings | 20 to 50 |
| Plant machinery | 6 to 10 |
| Motor vehicles | 4 to 7 |
| Office equipment | 4 to 8 |
Depreciation is charged since the beginning of the moment in which the asset is ready to use. The asset's residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.
Current maintenance on repair expenses are charged to the actual income statement in which they occurred. Cost of operations that can extend the useful expected life of an asset, or from which are expected higher and significative future benefits, are capitalized.
An asset's carrying amount is written down to its recoverable amount and charged to the income statement if the asset's carrying amount is greater than its estimated recoverable amount.
Gains and losses and disposals are included in the income statement.
Research expenditures are recognised in the income statement as incurred.
Development expenditure is recognised as intangible asset when the technical feasibility being developed can be demonstrated and the Group has the intention and capacity to complete their development and start trading or using them and that future economic benefits will occur.
Amortisation of the intangible assets is calculated by the straight-line method, and recorded as the asset qualifies for its required purpose:
| Number of years | |
|---|---|
| Industrial Property | 10 to 20 |
| Software | 3 to 6 |
The estimated useful life of assets are reviewed and adjusted when necessary, at the balance sheet date.
Investment property includes land and buildings not used in production.
Investment property are initially registered at acquisition cost plus acquisition or production attributable costs, and when pertinent financial costs during construction or installation. Subsequently are measured at acquisition cost less cumulative depreciations and impairment.
Periods and methods of depreciation are as follows in c) note for tangible fixed asset.
Properties are derecognized when sold. When used in production are reclassified as tangible fixed asset. When land and buildings are no mores used for production, they will be reclassified from tangible fixed asset to investment property.
Goodwill arises from acquisition of subsidiaries and represents the excess of the cost of an acquisition over the fair value of the net identifiable assets of the acquired at the date of acquisition. If positive, it will be included as an asset in the "goodwill" account. If negative, it will be registered as a gain for the period.
In Business combinations after January 1, 2010, Goodwill will be calculated as referred in b).
For impairment tests purposes, goodwill is allocated to the cash-generating unit or group of cash-generating units that are expected to benefit from the upcoming synergies.
Goodwill will be tested annually for impairment, or whenever an evidence of such occurs; impairment losses will be charged to the income statement and, consequently, its carrying amount adjusted.
Assets with indefinite useful lives are not amortised but are annually tested for impairment purposes.
Assets under depreciation are tested for impairment purposes whenever an event or change of circumstances indicates that its value cannot be recovered. Impairment losses are recognized as the difference between its carrying amount and its recoverable amount. Recoverable corresponds to the higher of its fair value less sales expenses and its value for use. Non-financial assets, except goodwill, that generated impairment losses are valued at each reporting date regarding reversals of said losses.
Relates, mainly, to financial applications corresponding to equity instruments measured at cost.
Inventories are valued at the lower of acquisition cost or production cost and net realisable value. Acquisition cost includes direct and indirect expenses incurred in order to have those inventories at its present condition and place. Production cost includes used raw material costs, direct labour, other direct costs and other general fixed production costs (using normal capacity utilisation).
Where the net realisable value is lower than production cost, inventory impairment is registered. This adjustment will be reversed or reduced whenever the impairment situation no longer takes place.
Year-end quantities are determined based on the accounting records, which are confirmed by the physical inventory taking. Raw materials, consumables and by-products are valued at weighted average cost, and finished goods and work-in-progress at the average production cost which includes direct costs and indirect costs incurred in production.
Trade and other receivables are registered initially at cost, adjusted for any subsequent impairment losses which will be charged to the income statement.
Medium and long-term receivables will be measured at amortised cost using the effective interest rate of the debtor for similar periods.
At each reporting date, the impairment of financial assets at amortised cost is evaluated.
Financial asset impairment occurs if after initial register, unfavourable cash flows from that asset can be reasonably estimated.
Impairment losses are recognized as the difference between its carrying amounts and expected future cash flows (excluding future losses that yet have not occurred), discounted at the initial effective interest rate of the asset. The calculated amount is deducted to the carrying amount and loss recognised in the earnings statement.
Cash includes cash in hand, deposits held at call in banks, time deposits and other no-risk short-term investments with original maturities of three months or less. In the Consolidated Statement of Cash Flow, this caption includes Bank overdrafts.
Debts to suppliers and other borrowings and creditors are initially registered at fair value. Subsequently are measured at amortised cost using effective interest rate method. They are classified as current liabilities, except if CORTICEIRA AMORIM has full discretion to defer settlement for at least another 12 months from the reporting date.
This line includes interest bearing loans amounts. Any costs attributable to the lender, will be deducted to the loan amount and charged, during its life, using the effective interest rate.
Interests are usually charged to the income statement as they occur. Interests arising from loans related with capital expenditure for periods longer than 12 months will be capitalised and charged to the specific asset under construction. Capitalisation will cease when the project is ready for use or suspended.
Income tax includes current income tax and deferred income tax. Except for companies included in groups of fiscal consolidation, current income tax is calculated separately for each subsidiary, on the basis of its net result for the period adjusted according to tax legislation. Management periodically addresses the effect of different interpretations of tax law.
Deferred taxes are calculated using the liability method, reflecting the temporary differences between the carrying amount of consolidated assets and liabilities and their correspondent value for tax purposes.
Deferred tax assets and liabilities are calculated and annually registered using actual tax rates or known tax rates to be in vigour at the time of the expected reversal of the temporary differences.
Deferred tax assets are recognized to the extent that it is probable sufficient future taxable income will be available utilisation. At the end of each year an analysis of the deferred tax assets is made. Those that are not likely to be used in the future will be derecognised.
Deferred taxes are registered as an expense or a gain of the year, except if they derive from values that are booked directly in equity. In this case, deferred tax is also registered in the same line.
CORTICEIRA AMORIM Portuguese employees benefit exclusively from the national welfare plan. Employees from foreign subsidiaries (about 25% of total CORTICEIRA AMORIM) or are covered exclusively by local national welfare plans or benefit from complementary contribution plans.
As for the defined contribution plans, contributions are recognised as employee benefit expense when they are due.
CORTICEIRA AMORIM recognises a liability and an expense for bonuses attributable to a large number of directors. These benefits are based on estimations that take in account the accomplishment of both individual goals and a preestablished CORTICEIRA AMORIM level of profits.
Provisions are recognised when CORTICEIRA AMORIM has a present legal or constructive obligation as a result of past events, when it is more likely than not an outflow of resources will be required to settle the obligation and when a reliable estimation is possible.
Provisions are not recognised for future operating losses. Restructuring provisions are recognised with a formal detail plan and when third parties affected are informed.
When there is a present obligation, resulting from a past event, but it is not probable that an out flow of resources will be required, or this cannot be estimated reliably, the obligation is treated as a contingent liability. This will be disclosed in the financial statements, unless the probability of a cash outflow is remote.
Revenue comprises the value of the consideration received or receivable for the sale of goods and finished products. Revue is shown, net of value-added tax, returns, rebates, and discounts, including cash discounts. Revenue is also adjusted by any prior period's sales corrections.
Services rendered are immaterial and, generally, are refunds of costs related with finish product sales.
Sales revenue is recognised when the significant risk and rewards of ownership of the goods are transferred to the buyer and its amount can be reliably measured. Revenue receivable after one year will be discounted to its fair value.
Grants received are related generally with fixed assets expenditure. No-repayable grants are present in the balance sheet as deferred income, and recognised as income on a systematic basis over the useful life of the related asset. Repayable interest bearing grants are presented as interests bearing debt; if no-interest bearing, they are presented as "Other borrowings". Reimbursable grants with "out of market" interest rates are measured at fair value when they are initially recognised. Difference between nominal and fair value at initial recognition is treated as an income to be recognised. This will be presented in other gains during the useful life span of the said asset. Subsequently, these grants are measured at amortised cost.
When a contract indicates that the significant risks and rewards of the ownership of the asset are transferred to CORTICEIRA AMORIM, leasing contracts will be considered as financial leases.
All other leasing contracts are treated as operating leases. Payments made under operating leases are charged to the income statement.
CORTICEIRA AMORIM uses derivatives financial instruments as forward and spot exchange rate contracts, options and swaps; these are intended to hedge its business financial risks and are not used for speculative purposes. CORTICEIRA AMORIM accounts for these instruments as hedge accounting, following all its standards. Dealing is carried out by a central treasury department (dealing room) on behalf of the subsidiaries, under policies approved by the Board of Directors. Derivatives are initially recorded at cost in the consolidated statements of financial position and subsequently re-measured at their fair value. The method of recognising is as follows:
Changes in the fair value of derivatives that qualify as fair value hedges and that are expected to be highly effective, are recorded in the income statement, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
Changes in the fair value of derivatives that qualify as cash flow edges and that are expected to be highly effective, are recognised in equity; the gain or loss relating to the ineffective portion is recognised immediately in the income statement.
For the moment, CORTICEIRA AMORIM is not considering any foreign exchange hedge over its net investments in foreign units (subsidiaries).
CORTICEIRA AMORIM has fully identified the nature of its activities' risk exposure and documents entirely and formally each hedge; uses its information system to guarantee that each edge is supported by a description of: risk policy, purpose and strategy, classification, description of risk, identity of the instrument and of the risk item, description of initial measurement and future efficiency, identification of the possible derivative portion which will be excluded from the efficiency test.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, or the forecasted transaction no longer remains highly provable or simply is abandoned, or the decision to consider the transaction as a hedge, the company will de-recognised the instrument.
Ordinary shares are included in equity.
When CORTICEIRA AMORIM acquires own shares, acquisition value is recognised deducting from equity in the line treasury stock.
| COMPANY | HEAD OFFICE | COUNTRY | 9M15 2014 | ||
|---|---|---|---|---|---|
| Raw Materials | |||||
| Amorim Natural Cork, S.A. | Vale de Cortiças - Abrantes | PORTUGAL | 100% | 100% | |
| Amorim Florestal, S.A. | Ponte de Sôr | PORTUGAL | 100% | 100% | |
| Amorim Florestal España, SL | San Vicente Alcántara | SPAIN | 100% | 100% | |
| Amorim Florestal Mediterrâneo, SL | Cádiz | SPAIN | 100% | 100% | |
| Amorim Tunisie, S.A.R.L. | Tabarka | TUNISIA | 100% | 100% | |
| Augusta Cork, S.L. | San Vicente Alcántara | SPAIN | 100% | 100% | |
| Comatral - C. de Marocaine de Transf. du Liège, S.A. | Skhirat | SPAIN | 100% | 100% | |
| SIBL - Société Industrielle Bois Liége | Jijel | ALGERIA | 51% | 51% | |
| Société Nouvelle du Liège, S.A. (SNL) | Tabarka | TUNISIA | 100% | 100% | |
| Société Tunisienne d'Industrie Bouchonnière | (b) | Tabarka | TUNISIA | 45% | 45% |
| Vatrya - Serviços de Consultadoria, Lda | Funchal - Madeira | PORTUGAL | 100% | 100% | |
| Cork Stoppers | |||||
| Amorim & Irmãos, SGPS, S.A. | Santa Maria Lamas | PORTUGAL | 100% | 100% | |
| Agglotap, SA | Girona | SPAIN | 91% | 91% | |
| Amorim & Irmãos, S.A. | Santa Maria Lamas | PORTUGAL | 100% | 100% | |
| Amorim Argentina, S.A. | Buenos Aires | ARGENTINA | 100% | 100% | |
| Amorim Australasia Pty Ltd | Adelaide | AUSTRALIA | 100% | 100% | |
| Amorim Bartop, S.A. | (f) | Mozelos | PORTUGAL | 100% | - |
| Amorim Cork América, Inc. | California | U. S. AMERICA | 100% | 100% | |
| Amorim Cork Beijing Ltd | Beijing | CHINA | 100% | 100% | |
| Amorim Cork Bulgaria EOOD | Plovdiv | BULGARIA | 100% | 100% | |
| Amorim Cork Deutschland GmbH & Co KG | Mainzer | GERMANY | 100% | 100% | |
| Amorim Cork España, S.L. | San Vicente Alcántara | SPAIN | 100% | 100% | |
| Amorim Cork Itália, SPA | Conegliano | ITALY | 100% | 100% | |
| Amorim Cork South Africa (Pty) Ltd | Cape Town | SOUTH AFRICA | 100% | 100% | |
| Amorim France, S.A.S. | Champfleury | FRANCE | 100% | 100% | |
| Amorim Top Series, SA | Vergada - Mozelos | PORTUGAL | 100% | 100% | |
| Bouchons Prioux | Epernay | FRANCE | 91% | 91% | |
| Carl Ed. Meyer Korken | Delmenhorst | GERMANY | 100% | 100% | |
| Chapuis, S.L. | Girona | SPAIN | 100% | 100% | |
| Corchera Gomez Barris | Santiago | CHILE | 50% | 50% | |
| Corchos de Argentina, S.A. | (b) | Mendoza | ARGENTINA | 50% | 50% |
| Equipar, Participações Integradas, Lda. | Coruche | PORTUGAL | 100% | 100% | |
| FP Cork, Inc. | California | U. S. AMERICA | 100% | 100% | |
| Francisco Oller, S.A. | Girona | SPAIN | 92% | 92% | |
| Hungarocork, Amorim, RT | Budapeste | HUNGARY | 100% | 100% | |
| Indústria Corchera, S.A. | (c) | Santiago | CHILE | 50% | 50% |
| Korken Schiesser Ges.M.B.H. | Viena | AUSTRIA | 69% | 69% | |
| Olimpiadas Barcelona 92, S.L. | Girona | SPAIN | 100% | 100% | |
| Portocork América, Inc. | California | U. S. AMERICA | 100% | 100% | |
| Portocork France, S.A.S. | Bordéus | FRANCE | 100% | 100% | |
| Portocork Internacional, S.A. | Santa Maria Lamas | PORTUGAL | 100% | 100% | |
| Portocork Itália, s.r.l | Milão | ITALY | 100% | 100% | |
| Sagrera et Cie | Reims | FRANCE | 91% | 91% | |
| S.A. Oller et Cie | Reims | FRANCE | 92% | 92% | |
| S.C.I. Friedland | Céret | FRANCE | 100% | 100% | |
| S.C.I. Prioux | Epernay | FRANCE | 91% | 91% | |
| Société Nouvelle des Bouchons Trescases | (b) | Perpignan | FRANCE | 50% | 50% |
| Trefinos Australia | Adelaide | AUSTRALIA | 91% | 91% | |
| Trefinos Italia, s.r.l | Treviso | ITALY | 91% | 91% | |
| Trefinos USA, LLC | Fairfield, CA | U. S. AMERICA | 91% | 91% | |
| Trefinos, S.L | Girona | SPAIN | 91% | 91% | |
| Victor y Amorim, Sl | (c) | Navarrete - La Rioja | SPAIN | 50% | 50% |
| Wine Packaging & Logistic, S.A. | (b) | Santiago | CHILE | 50% | 50% |
| COMPANY | HEAD OFFICE | COUNTRY | 9M15 2014 | ||
|---|---|---|---|---|---|
| Floor & Wall Coverings | |||||
| Amorim Revestimentos, S.A. | Lourosa | PORTUGAL | 100% | 100% | |
| Amorim Benelux, BV - AR | Tholen | NETHERLANDS | 100% | 100% | |
| Amorim Deutschland, GmbH - AR | (a) | Delmenhorts | GERMANY | 100% | 100% |
| Amorim Flooring (Switzerland) AG | Zug | SWITZERLAND | 100% | 100% | |
| Amorim Flooring Austria GesmbH | Vienna | AUSTRIA | 100% | 100% | |
| Amorim Flooring Investments, Inc. | Hanover - Maryland | U. S. AMERICA | 100% | 100% | |
| Amorim Flooring North America Inc | Hanover - Maryland | U. S. AMERICA | 100% | 100% | |
| Amorim Japan Corporation | Tokyo | JAPAN | 100% | 100% | |
| Amorim Revestimientos, S.A. | Barcelona | SPAIN | 100% | 100% | |
| Cortex Korkvertriebs GmbH | Fürth | GERMANY | 100% | 100% | |
| Dom KorKowy, Sp. Zo. O. | (c) | Kraków | POLAND | 50% | 50% |
| Timberman Denmark A/S | Hadsun | DENMARK | 51% | 51% | |
| US Floors, Inc. | (b) | Dalton - Georgia | U. S. AMERICA | 25% | 25% |
| Zodiac Kork- und Holzprodukte GmbH | (d) | Fürth | GERMANY | - | 100% |
| Composites Cork | |||||
| Amorim Cork Composites, S.A. | Mozelos | PORTUGAL | 100% | 100% | |
| Amorim (UK) Ltd. | Horsham West Sussex | UNITED KINGDOM | 100% | 100% | |
| Amorim Compcork, Lda | Mozelos | PORTUGAL | 100% | 100% | |
| Amorim Cork Composites Inc. | Trevor Wisconsin | U. S. AMERICA | 100% | 100% | |
| Amorim Deutschland, GmbH - ACC | (a) | Delmenhorts | GERMANY | 100% | 100% |
| Amorim Industrial Solutions - Imobiliária, S.A. | Corroios | PORTUGAL | 100% | 100% | |
| AmorLink | (b) | Istambul | TURKEY | 25% | 25% |
| Amosealtex Cork Co., Ltd | (b) | Shanghai | CHINA | 30% | 30% |
| Chinamate (Xi'an) Natural Products Co. Ltd | Xi'an | CHINA | 100% | 100% | |
| Chinamate Development Co. Ltd | Hong Kong | CHINA | 100% | 100% | |
| Corticeira Amorim - France SAS - ACC | Lavardac | FRANCE | 100% | 100% | |
| Florconsult – Consultoria e Gestão, Lda | Mozelos | PORTUGAL | 100% | 100% | |
| Postya - Serviços de Consultadoria, Lda. | Funchal - Madeira | PORTUGAL | 100% | 100% | |
| Insulation Cork | |||||
| Amorim Isolamentos, S.A. | Vendas Novas | PORTUGAL | 80% | 80% | |
| Holding | |||||
| Corticeira Amorim, SGPS, S.A. | Mozelos | PORTUGAL | 100% | 100% | |
| Ginpar, S.A. (Générale d' Invest. et Participation) | Skhirat | MOROCCO | 100% | 100% | |
| Amorim Cork Research, Lda. | Mozelos | PORTUGAL | 100% | 100% | |
| Amorim Cork Services, Lda. | Mozelos | PORTUGAL | 100% | 100% | |
| Amorim Cork Ventures, Lda | Mozelos | PORTUGAL | 100% | 100% | |
| Corkyn Composites, Lda | (e) (b) Mozelos | PORTUGAL | 25% | - | |
| Ecochic portuguesas – footwear and fashion products, Lda |
(e) (b) Mozelos | PORTUGAL | 24% | - | |
| Soc. Portuguesa de Aglomerados de Cortiça, Lda | Montijo | PORTUGAL | 100% | 100% |
(a) – One single company: Amorim Deutschland, GmbH & Co. KG.
(b) – Equity method consolidation.
(c) – CORTICEIRA AMORIM controls the operations of the company – line-by-line consolidation method.
(d) – Merged with Cortex during 1H15
(e) – Associate set-up during 2015
(f) – Subsidiary set-up during 2015
| Exchage rates | 30/Set/15 | Average Jan- Sep 2015 |
Average 2014 |
Year end 2014 |
|
|---|---|---|---|---|---|
| Argentine Peso | ARS | 10.52970 | 9.99740 | 10.77468 | 10.12833 |
| Australian Dollar | AUD | 1.59390 | 1.46308 | 1.47188 | 1.48290 |
| Lev | BGN | 1.95580 | 1.95570 | 1.95471 | 1.95580 |
| Brazilian Real | BRL | 4.48080 | 3.52573 | 3.12113 | 3.22070 |
| Canadian Dollar | CAD | 1.50340 | 1.40384 | 1.46614 | 1.40630 |
| Swiss Franc | CHF | 1.09150 | 1.06211 | 1.21462 | 1.20240 |
| Chilean Peso | CLP | 778.070 | 713.111 | 756.917 | 733.560 |
| Yuan Renminbi | CNY | 7.12060 | 6.96414 | 8.18575 | 7.53580 |
| Danish Krone | DKK | 7.45980 | 7.45809 | 7.45482 | 7.44530 |
| Algerian Dinar | DZD | 118.2987 | 109.185 | 106.6354 | 106.1185 |
| Euro | EUR | 1 | 1 | 1 | 1 |
| Pound Sterling | GBP | 0.73850 | 0.72713 | 0.80612 | 0.77890 |
| Hong Kong Dollar | HDK | 8.6613 | 8.6458 | 10.2999 | 9.3798 |
| Forint | HUF | 313.450 | 309.092 | 308.706 | 315.540 |
| Yen | JPY | 134.690 | 134.778 | 140.306 | 145.230 |
| Moroccan Dirham | MAD | 10.8738 | 10.8121 | 11.1387 | 10.93 |
| Norwegian Krone | NOK | 9.52450 | 8.81743 | 8.35438 | 9.04200 |
| Zloty | PLN | 4.24480 | 4.15706 | 4.18426 | 4.27320 |
| Ruble | RUB | 72.9950 | 66.4232 | 51.0224 | 67.2950 |
| Swedish Kronor | SEK | 9.40830 | 9.37092 | 9.09852 | 9.39300 |
| Tunisian Dinar | TND | 2.19950 | 2.16740 | 2.25012 | 2.25770 |
| Turkish Lira | TRL | 3.39030 | 2.97081 | 2.90650 | 2.83200 |
| US Dollar | USD | 1.12030 | 1.11436 | 1.32850 | 1.21410 |
| Rand | ZAR | 15.49840 | 13.70104 | 14.40373 | 14.03530 |
CORTICEIRA AMORIM is organised in the following Business Units (BU):
For purposes of this Report, the Business approach was selected as the primary segment. This is consistent with the formal organization and evaluation of business. The following table shows the main indicators of the said units, and, whenever possible, the reconciliation with the consolidated indicators (values in thousand EUR):
| thousand euros | ||||||||
|---|---|---|---|---|---|---|---|---|
| 9M2015 | Raw Materials |
Cork Stoppers |
Floor & Wall Coverings |
Composite Cork |
Insulation Cork |
Holding | Adjustments Consolidated | |
| Trade Sales | 4,815 | 298,657 | 82,688 | 70,213 | 6,504 | 12 | 0 | 462,889 |
| Other BU Sales | 96,881 | 3,100 | 1,777 | 4,923 | 1,073 | 1,373 | -109,126 | - |
| Total Sales | 101,696 | 301,756 | 84,465 | 75,136 | 7,577 | 1,385 | -109,126 | 462,889 |
| Current EBITDA | 13,407 | 48,419 | 7,192 | 11,495 | 1,196 | -2,613 | 1,059 | 80,155 |
| Assets | 173,099 | 322,893 | 91,861 | 79,355 | 12,494 | 31,775 | 5,393 | 716,871 |
| Liabilities | 58,016 | 116,705 | 31,936 | 27,684 | 2,293 | 30,581 | 76,439 | 343,654 |
| Capex | 2,254 | 9,303 | 1,922 | 2,676 | 161 | 364 | 0 | 16,681 |
| Depreciation | -1,996 | -8,887 | -3,482 | -3,881 | -443 | -26 | 0 | -18,715 |
| Non-cash cost | -112 | -3,926 | -711 | -446 | -351 | 0 | 0 | -5,546 |
| Gains/Losses in associated companies |
-7 | 905 | 1,165 | -23 | 0 | 0 | 0 | 2,040 |
| 9M2014 | Raw Materials |
Cork Stoppers |
Floor & Wall Coverings |
Composite Cork |
Insulation Cork |
Holding | Adjustments Consolidated | |
|---|---|---|---|---|---|---|---|---|
| Trade Sales | 3,598 | 273,123 | 86,551 | 59,450 | 6,151 | 812 | 0 | 429,685 |
| Other BU Sales | 94,891 | 2,718 | 2,249 | 3,469 | 1,471 | 5,269 | -110,066 | - |
| Total Sales | 98,490 | 275,841 | 88,800 | 62,918 | 7,622 | 6,081 | -110,066 | 429,685 |
| Current EBITDA | 11,736 | 38,229 | 12,064 | 6,827 | 1,278 | -2,080 | -1,971 | 66,083 |
| Assets | 159,302 | 301,248 | 97,979 | 82,123 | 13,418 | 7,834 | -6,448 | 655,457 |
| Liabilities | 50,514 | 114,121 | 36,193 | 24,022 | 2,340 | 25,868 | 85,749 | 338,807 |
| Capex | 2,503 | 8,875 | 1,080 | 1,967 | 492 | 107 | 0 | 15,023 |
| Depreciation | -2,550 | -8,059 | -3,399 | -2,141 | -439 | -99 | 0 | -16,687 |
| Non-cash cost | 4 | -490 | 788 | -1,547 | 3 1 |
-99 | 0 | -1,313 |
| Gains/Losses in associated companies |
-6 | 716 | 215 | 0 | 0 | 0 | 0 | 926 |
Adjustments = eliminations inter-BU and amounts not allocated to BU
EBITDA =Profit before depreciation and amortisation, interests, non-controlling interests and income tax.
Provisions and asset impairments were considered the only relevant material cost.
Segments assets do not include DTA (deferred tax asset) and non-trade group balances.
Segments liabilities do not include DTL (deferred tax liabilities), bank loans and non-trade group balances.
The decision to report EBITDA figures allows a better comparison of the different BU performances, disregarding the different financial situations of each BU. This is also coherent with the existing Corporate Departments, as the Financial Department is responsible for the bank negotiations, being the tax function the responsibility of the Holding Company, like the use of tax advantages coming from tax consolidation instruments (RETGS).
Cork Stoppers BU main product is the different kinds of existing cork stoppers. The main markets are the bottling countries, from the traditional ones like France, Italy, Germany, Spain and Portugal, to the new markets like USA, Australia, Chile, South Africa and Argentina.
Raw Materials BU is, by far, the most integrated in the production cycle of CORTICEIRA AMORIM, with more than 95% of its sales to others BU, specially to Cork Stoppers BU. Main products are bark and discs.
The remaining BU produce and sell a vast number of cork products made from cork stoppers waste. Main products are cork floor tiles, cork rubber for the automotive industry and antivibratic systems, black agglomerates for insulation and acoustic purposes, technical agglomerates for civil construction and shoe industry, as well as granulates for agglomerated, technical and champagne cork stoppers.
Major markets for flooring and insulation products are in Europe and for cork rubber products the USA. Major production sites are in Portugal, where most of the invested capital is located. Products are distributed in practically all major markets through a fully owned network of sales companies. About 70% of total consolidated sales are achieved through these companies.
Data to be included in the interim notes, materially relevant, which is not included in prior chapters:
Mozelos, November 2, 2015
The Board of Directors of CORTICEIRA AMORIM, S.G.P.S., S.A.
| António Rios de Amorim | |
|---|---|
| Chairman | |
| Nuno Filipe Vilela Barroca de Oliveira | |
| Vice-President | |
| Fernando José de Araújo dos Santos Almeida | |
| Member | |
| Cristina Rios de Amorim Baptista | |
| Member | |
| Luísa Alexandra Ramos Amorim Member |
|
| Juan Ginesta Viñas | |
| Member |
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