Oeneo — Annual Report 2015

Jun 8, 2015

8 June 2015

2014-2015 ANNUAL RESULTS

Strong increase in profitability

Group net profit: +55%

Consolidated Profit & Loss statement (€m)	2013-2014	2014-2015	Change
Turnover	151.0	170.6	+13.0%
o/w Closures	93.4	102.3	+9.4%
o/w Aging	57.6	68.4	+18.7%
Current operating profit	26.7	32.1	+20.4%
o/w Closures	20.1	23.0	+14.4%
o/w Aging	8.5	11.2	+32.5%
o/w Corporate	(1.9)	(2.1)
Non-current operating profit	(0.6)	(2.3)
Operating profit	26.0	29.8	+14.5%
Financial profit	(2.3)	0.1
Tax	(9.5)	(8.7)
Net profit	14.3	21.2	+48.9%
Group net profit	13.6	21.1	+55.3%
Shareholders' equity	153.8	165.8	+7.8%
Net debt	1.4	25.2	NS

The consolidated financial statements have been audited in full. The Auditors' Report will be published once the due diligence procedures required for the publication of the yearly financial report are complete.

Oeneo's consolidated statements for financial year 2014-15 ending 31 March 2015 were approved by the Board of Directors' meeting of 5 June 2015.

2014-2015 was an exceptional vintage financial year for Oeneo, bringing new dynamic growth (+13%) and stronger economic results for both the Closures and Aging divisions. The Group's current operating margin reached a new record high at 18.8% of turnover for the period (compared with 17.7% in 2013-2014).

Group net profit climbed +55% to €21.1 million, boosted by the increase in activity and improvement in profitability, but also by the integration of a 49% stake in Boisé France following the acquisition of Vivelys.

These outstanding results and the virtuous cycle that continues to drive Oeneo's development more than justify the investments for growth made during the financial year (construction of a new Diam factory in Céret, acquisition of Vivelys and of a stave mill in the East of France).

Accounting for around €31 million over the period, investments were financed by the cash flow linked to operations generated by the Group (€20 million for the year) and through carefully-managed loans. With more than €165 million in equity and a net gearing of 15.2%, Oeneo's extremely healthy financial structure will enable it to take advantage of new opportunities for expansion.

Ideally placed to look forward to substantial new growth over the next year despite the wine industry's inherent dependence on uncertain weather conditions, Oeneo is able to draw upon a global reach, with sales in close to sixty countries.

Confident of its future prospects, the Group will be recommending the payment, with the possibility of opting for payment in cash and/or in new shares, of a dividend of €0.12 per share at its next Annual General Meeting, which is an increase of 20% on the previous financial year.

Performance and outlook by Division

CLOSURES: Record current operating margin of 22.5% (vs. 21.6% in 2013-2014)

2014-2015 saw Oeneo's Closures division achieve new record sales of close to 1.3 billion cork closures over the year, including 1.0 billion closures from its Diam range. This new growth in volumes (+13.6% for Diam) cements the Group's ranking as the world number 2 in cork closures.

The increasing success of its Diam range, for which production capacity is virtually at saturation, continues to have a positive effect on margins. With persistently high gross margins and carefully-managed structural costs that are not rising as quickly as turnover, the division's current operating margin is at an all-time high.

The current year will be marked by the commissioning of the new Diam factory, which will gradually take the Group's production capacity to 1.7 billion Diam closures per year.

Backed by an extremely loyal client base, Oeneo intends to actively develop its new market share and to continue to focus on activity in the United States, Europe and South America.

AGING: Strong increase in current operating margin to 16.4% (vs. 14.7% in 2013-2014)

Oeneo's Aging division (which regroups the activities of Seguin Moreau, Boisé France and Vivelys) enjoyed an excellent financial year in 2014-2015, with turnover increasing 19% over the full period (+12% in organic terms).

Allowing for the greater absorption of production costs, the increase in activity had a positive impact on the division's operating margin, which also benefited from the increase in the division's gross margin thanks to the improved performance of the Group's stave mills. Boisé France (alternative products) and Vivelys (consulting, winemaking and wine cellar solutions) both made significant contributions to the division's results.

OENEO SA

Today, Oeneo's Aging division continues to improve its operating profitability as the Seguin Moreau brand, which is the leader on its market, increasingly closes the gap on the sector's highest performers.

Oeneo intends to pursue its virtuous growth cycle in the coming years, with the integration of new business expertise in wine production from Vivelys and new market share around the world, particularly for its Aging activities (formerly Barrels). The Group will notably draw upon the success of its "ICONE" technology (to determine the precise oenological potential of casks to achieve the best results in terms of taste and smell), and the recent launch of new "alternative" products for aging wines.

Oeneo Group will publish its turnover for the first quarter of 2015-2016 on 22 July.

About Oeneo Group

Oeneo Group is a major wine industry player. It has a global presence and specializes in two complementary businesses:

• Closures, involving the manufacture and sale of high value-added technological closures, including the DIAM closure, an innovation with no equivalent on the market;
• Aging, providing high-end solutions for aging wines and spirits for leading market players and developing innovative solutions for the wine industry with Vivelys (R&D, consulting, systems).

Contacts
Oeneo:	Philippe Doray +33 (0)1 44 13 44 39
Actus Finance:	Guillaume Le Floch +33 (0)1 53 67 36 70 Analysts - Investors
	Alexandra Prisa +33 (0)1 53 67 36 90 Media Relations

OENEO SA

Appendices

1. BALANCE SHEET - ASSETS
---------------------------	--	--

In thousands of euros	31 March 2015	31/03/2014
Goodwill	14,271	14,090
Intangible fixed assets	1,466	202
Tangible fixed assets	96,201	70,022
Financial fixed assets	131	96
Deferred taxes	6,989	8,287
Other long-term assets	1,316	2,685
Total Non-Current Assets	120,374	95,382
Stocks and work in progress	83,430	64,187
Trade and other receivables	46,831	43,654
Tax receivables	2,027	150
Other current assets	2,244	944
Cash and cash equivalents	28,843	17,276
Total Current Assets	163,375	126,211
Assets held for sale	1,248	1,500
Total Assets	284,997	223,093

BALANCE SHEET - LIABILITIES

In thousands of euros	31 March 2015	31/03/2014
Paid-in capital	60,297	60,239
Share premium	6,803	6,791
Reserves and retained earnings	77,456	69,867
Profit for the year	21,081	13,572
Total Shareholders' Equity (Group share)	165,637	150,469
Minority interests	198	3,343
Total Shareholders' Equity	165,835	153,812
Borrowings and financial debt	40,716	8,994
Employee benefits	1,234	876
Other provisions	10	50
Deferred taxes	3,320	3,603
Other non-current liabilities	12,769	7,897
Total Non-Current Liabilities	58,049	21,420
Borrowings and short-term bank debt (portion	13,298	9,652
due in less than 1 year)
Provisions (portion due in less than 1 year)	717	1,004
Trade and other payables	44,413	31,321
Other current liabilities	2,685	5,884
Total Current Liabilities	61,113	47,861
Total Liabilities	284,997	223,093

OENEO SA

CONSOLIDATED PROFIT & LOSS STATEMENT

In thousands of euros	31 March 2015	31/03/2014
Turnover	170,634	151,012
Other income	1,052	984
Purchases consumed	(65,760)	(60,284)
External costs	(28,794)	(26,748)
Payroll costs	(36,804)	(32,138)
Tax	(1,802)	(1,617)
Depreciation and amortization	(7,018)	(6,396)
Provisions	(2,751)	(3,048)
Change in stocks of finished goods and work in progress	3,652	5,017
Other current income and expenses	(303)	(112)
Current Operating Profit	32,106	26,670
Other non-current operating income and expenses	(2,280)	(624)
Operating Profit	29,826	26,046
Income from cash and cash equivalents	33	42
Cost of gross financial debt	(574)	(947)
Cost of net financial debt	(541)	(905)
Other financial income and expenses	671	(1,430)
Pre-tax profit	29,956	23,711
Income tax	(8,727)	(9,460)
Profit after tax	21,229	14,251
Net income of companies accounted for by the equity method	-	-
Net profit	21,229	14,251
Minority interests	148	679
Group net profit	21,081	13,572
Earnings per share (in euros)	0.35	0.23
Diluted earnings per share (in euros)	0.35	0.22

French limited company with a capital of 60,296,942 euros Head Office: 123 avenue des Champs Elysées - 75008 PARIS

OENEO SA

CASH FLOW STATEMENT

In thousands of euros	31 March 2015	31/03/2014
CASH FLOW LINKED TO OPERATIONS
Consolidated net income	21,229	14,251
Elimination of the share in income of companies accounted for by the equity method	-	-
Elimination of amortization and provisions	6,989	6,060
Elimination of income from disposals and gains and losses on dilution	60	(96)
Expenses and income linked to share-based payments	292	162
Other income and expenses with no impact on cash flow	1,912	668
= Cash flow after cost of net financial debt and tax	30,482	21,045
Tax expense	8,727	9,460
Cost of net financial debt	541	905
= Cash flow before cost of net financial debt and taxes	39,750	31,410
Tax paid	(9,219)	(6,053)
Change in working capital requirement linked to activities	(10,123)	(6,214)
= Net cash flow linked to operations	20,408	19,143
NET CASH FLOW LINKED TO INVESTMENTS
Impact of changes in scope (1)	(810)	(629)
Acquisitions of tangible and intangible fixed assets	(30,857)	(12,806)
Acquisition of financial assets	-	-
Disposals of tangible and intangible fixed assets	215	615
Disposals of financial assets	1	-
Change in loans and advances	(38)	76
= Net cash flow linked to investments	(31,489)	(12,744)
NET CASH FLOW LINKED TO FINANCING
Transactions with minority interests (2)	(5,009)	(359)
Capital increase	-	-
Acquisitions and disposals of own shares	(1,160)	(205)
Loans issued	47,849	2,121
Repayment of loans	(10,321)	(6,086)
Net financial interest paid	(541)	(905)
Parent company dividends	(6,058)	-
Minority interest dividends	-	-
= Net cash flow linked to financing activities	24,760	(5,434)
Impact of changes in foreign exchange rate	920	(627)
Change in cash	14,599	338
Opening cash	10,804	10,466
Cash at year end	25,403	10,804
Change in cash	14,599	338

OENEO SA