Earnings Release • Nov 14, 2013
Earnings Release
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Issy-les-Moulineaux, November 14, 2013 - Sodexo (NYSE Euronext Paris FR 0000121220-OTC: SDXAY): at the November 12, 2013 Board of Directors meeting chaired by Pierre Bellon, Michel Landel, Chief Executive Officer, presented the performance for Fiscal 2013.
| Year ended August 31 | |||||
|---|---|---|---|---|---|
| In million of euro | 2013 | 2012 | (excluding currency effect) |
Currency effect |
Reported change |
| Revenues | 18,397 | 18,236 | +1.5% | -0.6% | +0.9% |
| Organic growth | 1.1% | 6.5% | |||
| Operating profit before exceptional items | 953 | 958 | +1.7% | -2.2% | - 0,5% |
| 1 Exceptional items |
(139) | 26 | |||
| Operating margin before exceptional items | 5.2% | 5.3% | |||
| Reported operating profit | 814 | 984 | -15.2% | -2.1% | -17.3% |
| Effective tax rate | 34.3% | 34.9% | |||
| Group net income 3 | 439 | 525 | -14.3% | -2.1% | -16.4% |
| Group net income | 530 | 505 | +7.3% | -2.3% | +5% |
| Net debt ratio at August 314 | 16% | 21% | |||
| 5 Dividend per share (in euro) |
1.62 | 1.59 |
1 Expenses related to the program to improve operational efficiency in Fiscal 2013 and the favorable accounting adjustment to pension plan costs in the United Kingdom in Fiscal 2012.
2 At constant exchange rates and before the impact of exceptional expenses related to the operational efficiency improvement and cost reduction program.
3 After the exceptional items mentioned above.
4 Net debt divided by shareholders' equity and non-controlling interests.
5 Subject to approval at the Annual Shareholders' meeting on January 21, 2014.
"Sodexo delivered a solid performance for Fiscal 2013. Our strategy is proving effective, as seen in the increased client demand for our facilities management services and the growth observed in our Benefits and Rewards Services. Every day, we demonstrate our resilience as well as our ability to adapt and respond to new client needs and a constantly changing environment.
Lastly, we are proud that our commitment to economic, social and environmental responsibility has been recognized by the Dow Jones Sustainability Index as the global industry leader in our sector for the ninth year in a row".
Sodexo's consolidated revenues for Fiscal 2013 increased by 0.9% to 18.4 billion euro.
Organic growth was 1.1% or 2.9% excluding the impacts of the Rugby World Cup, the Olympic Games and the inclusion of a 53rd week of revenue in North America.
Excluding these special events, organic growth for the On-site Services activity was 2.6%, due to increased demand for integrated Quality of Life Services offers in most regions and by Sodexo's leadership in emerging countries where it continued to enjoy growth of more than 5%. These solid performances offset the decline in foodservices volumes, particularly in Europe, and slower growth in site revenues in certain regions, as clients sought to decrease costs in the current economic environment.
Fiscal 2013 organic growth by client segment was as follows:
Organic growth in Benefits and Rewards Services revenues was 8.3%, roughly the same rate as in Fiscal 2012, reflecting both the sustained growth dynamic in Latin America and the continuing erosion of revenues in Hungary following the introduction of new regulations in January 2012.
During Fiscal 2013, Sodexo continued to invest in executing its strategy to develop Quality of Life Services. These investments primarily concerned three key drivers of sustainable growth for the Group:
The On-site Services activity's key growth indicators were as follows:
Group operating profit was 953 million euro, an increase of 1.7% compared to Fiscal 2012 excluding the currency effect and a slight 0.5% decrease at current currency exchange rates.
Operating profit generated by the Benefits and Rewards Services activity rose by close to 13% and that of the On-site Services activity in North America was up by nearly 7%. The contribution of Onsite Services in continental Europe and the Rest of the World region declined compared to Fiscal 2012 due to lower foodservices volumes, increased pricing pressure from clients seeking to cut costs, and inflationary pressure in emerging countries.
Sodexo's teams responded to these challenges by mobilizing around specific actions to strengthen competitiveness and reduce operating costs. This is illustrated by the year-on-year reduction in underlying administrative expenses, excluding currency effects and excluding the costs incurred for the program to improve operational efficiency and reduce costs. As a result, consolidated operating margin was unchanged from Fiscal 2012 (excluding currency effects).
Including currency effects, consolidated operating margin narrowed by 0.1 percent point to 5.2% at current currency exchange rates.
Reported operating profit amounted to 814 million euro, a decline of 17.3% at current currency exchange rates and 15.2% excluding the currency effect.
At the beginning of Fiscal 2013, Group senior management launched a program to improve operational efficiency and reduce costs. The objective of the program is to reduce on-site operating costs and achieve overhead cost savings, with annual savings increasingly affecting operating profit in Fiscal 2014 and Fiscal 2015. As announced in April 2013, senior management expects the program to generate exceptional costs of 180 to 200 million euro over a period of 18 months starting in September 2012. During Fiscal 2013 costs of 139 million euro were recognized in connection with this program.
In addition, Fiscal 2012 was impacted by a favorable accounting adjustment related to the pension plan in the United Kingdom. As a result of new regulations in that country, the Group elected in October 2011 to replace the retail price index (RPI) with the consumer price index (CPI) in the calculation of future indexation adjustments to the pension obligations to certain beneficiaries of its pension plan.
Group net income was 439 million euro compared to 525 million euro in the prior year, a decrease of 16.4% or 14.3% excluding currency effects.
Earnings per share was 2.91 euro compared to 3.48 euro for the prior year, a decrease of 16.4% or 14.4% excluding currency effects.
The change in Group net income and earnings per share masks the underlying progress and performance of Sodexo's teams, as a result of the following exceptional items:
Excluding these two items, Fiscal 2013 Group net income and earnings per share increased by around 5%.
At the Annual Shareholders' Meeting to be held on January 21, 2014, the Board of Directors will recommend paying a dividend of 1.62 euro per share for Fiscal 2013, an increase of 2% from the prior year. This proposal reflects the Board's great confidence in the Group's future and also takes into consideration Sodexo's solid cash-generating financial model.
For the first time this year, shares held in registered form for more than four years, and still held when the Fiscal 2013 dividend becomes payable, will be entitled to a 10% dividend premium of the dividend paid on the other shares, provided that they do not represent over 0.5% of the capital per shareholder.
Net debt was reduced by 161 million euro in Fiscal 2013, further demonstrating the quality of the Group's solid cash-generating financial model, a major strength in the current economic environment.
Net debt at August 31, 2013 was 478 million euro, representing 16% of consolidated equity compared to 21% at August 31, 2012.
There have been no material changes in the financial position or business situation of the Company and its subsidiaries since August 31, 2013.
In Fiscal 2013, Sodexo won several major awards recognizing its commitment to social, environmental and economic responsibility:
At the November 12, 2013 Board of Directors meeting, Chief Executive Officer Michel Landel underlined the effectiveness of the Group's long-term strategy, based on a unique range of Quality of Life Services, an unparalleled global network in its activities, and undisputed leadership in emerging countries.
He pointed out that since 2005, Sodexo has delivered average annual revenue growth of 6.1% a year (at constant exchange rates) and average annual growth in operating profit and Group net income (excluding currency effects and exceptional items) of 8.4% and 10%, respectively. In addition, over this same eight-year period, Sodexo has achieved an average cash conversion ratio (of net income into free cash flow) of around 140%.
This consistent and robust performance, which enables the Group to finance its development, is even more significant given the steadily worsening conditions in the global economy over the same period.
Michel Landel explained that senior management is now focusing more than ever on enhancing the Group's competitiveness and continuing to adapt it to its environment and clients. All of the teams are committed to pursuing two key objectives:
Accelerating organic growth, to achieve an average annual increase in revenues of 7% over the medium term.
Sodexo is starting Fiscal 2014 with a number of strengths, including:
Encouraged by these factors, Sodexo has now set the following new objectives for Fiscal 2014:
As a result, the Group is now targeting an operating margin of 5.6% for Fiscal 2014, up 0.4% compared with Fiscal 2013.
This target reflects the following:
Lastly, Michel Landel reiterated Sodexo's core strengths:
These strengths enable Sodexo to look to the future with confidence and to maintain its investments, particularly in the development of its people and the enhancement of its expertise.
In conclusion, Michel Landel added: "I would like to thank our clients for their loyalty, our shareholders for their confidence and Sodexo's 428,000 employees for their efforts in Fiscal 2013 and for their daily commitment to improving the Quality of Life of our clients and consumers."
After the Board of Directors' meeting, Pierre Bellon added: "Our performance is good. It could be improved in the future. Congratulations and thank you to the men and woman on the ground who work each day to improve client and consumer satisfaction; to Michel Landel and his teams; to our best entrepreneurs; to our Board members whom I make work very hard; and to our shareholders for their loyalty. A big thank you to all of you for all that you have already done and what you will do in the future for Sodexo's growth."
Sodexo will hold a briefing today at 9:00 a.m. at the Capital 8 Conference Center (32, rue Monceau, 75008 Paris) to discuss the Fiscal 2013 results. The briefing may also be viewed via webcast on www.sodexo.com.
| First-quarter Fiscal 2014 revenues | January 8, 2014 |
|---|---|
| Annual Meeting | January 21, 2014 |
| Payment of the Fiscal 2013 dividend | February 4, 2014 |
Founded in 1966 by Pierre Bellon, Sodexo is the global leader in services that improve Quality of Life, an essential factor in individual and organizational performance. Operating in 80 countries, Sodexo serves 75 million consumers each day through its unique combination of On-site Services, Benefits and Rewards Services and Personal and Home Services. Through its more than 100 services, Sodexo provides clients an integrated offering developed over more than 45 years of experience: from reception, safety, maintenance and cleaning, to foodservices and facilities and equipment management; from Meal Pass, Gift Pass and Mobility Pass benefits for employees to in-home assistance and concierge services. Sodexo's success and performance are founded on its independence, its sustainable business model and its ability to continuously develop and engage its 428,000 employees throughout the world.
This press release contains statements that may be considered as forward-looking statements and as such may not relate strictly to historical or current facts. These statements represent management's views as of the date they are made and Sodexo assumes no obligation to update them. The reader is cautioned not to place undue reliance on these forward-looking statements.
Analysts and Investors Press Pierre BENAICH Tel. & Fax : +33 1 57 75 80 56 E-mail: [email protected] Laura SCHALK Tel. & Fax : +33 1 57 75 85 69 E-mail: [email protected]
All operating profit figures in this document exclude the exceptional items described in the press release.
| in million of euros | Fiscal 2013 | Fiscal 2012 | Organic growth |
Acquisitions | Currency effect |
Total growth |
|---|---|---|---|---|---|---|
| Corporate | 1,647 | 1,537 | +5.2% | |||
| Health Care and Seniors |
2,521 | 2,559 | -1.9% | |||
| Education | 2,653 | 2,634 | +0.2% | |||
| TOTAL | 6,821 | 6,730 | +0.6% | +0.4% | +0.4% | +1.4% |
On-Site Services revenues in North America were 6.8 billion euro, with organic growth of 0.6%. The Fiscal 2012 figure included an additional week's activity compared to Fiscal 2013 as Sodexo operates on a 52/53-week calendar basis as is industry practice in North America. The impact of the 53rd week on Fiscal 2012 revenues is estimated at 120 million euro. On a comparable 52-week basis, organic revenue growth was 2.4%, as follows:
In Health Care and Seniors, revenues contracted by 0.1%, due to modest business development in Fiscal 2012 and the loss of the contract with Ascension Health System. However, business development has picked up rapidly since the beginning of Fiscal 2013 and should lead to an improved rate of organic growth starting in Fiscal 2014. The numerous large and prestigious contracts won during the year included ManorCare, HCA East Florida, LA County, Ochsner, University of Arizona Medical Center, Wesley Medical Center and CHI.
Organic growth in Education was 2.1%. Client retention remained high at around 98%, while growth in site revenues was more restrained due to:
New contracts won in Fiscal 2013 included Brandeis University, University of Michigan Dearborn, Emerson College and Bayonne School District.
The acquisition in the U.S. of Roth Bros., a technical maintenance and energy management company, contributed 0.4 percentage points of growth.
On-Site Services operating profit in North America totaled 371 million, an increase of nearly 7% over the prior year excluding currency effects. Operating margin was 0.3 points higher at 5.4%. This solid performance reflected tight control over all operating costs and productivity gains, particularly in the Corporate segment, and resulted from the deployment of new generation operational management tools.
| in million of euros | Fiscal 2013 | Fiscal 2012 | Organic growth |
Acquisitions | Currency effect |
Total growth |
|---|---|---|---|---|---|---|
| Corporate | 3,407 | 3,346 | +1.2% | |||
| Health Care and Seniors |
1,404 | 1,396 | +0.4% | |||
| Education | 905 | 904 | -0.1% | |||
| TOTAL | 5,716 | 5,646 | +0.8% | +0,2% | +0,2% | +1.2% |
In Continental Europe, revenues totaled 5.7 billion euro, with organic growth of 0.8%. On-Site Services performance in Continental Europe remained mixed, with several countries such as France, the Netherlands, Italy and Germany seeing a marked slowdown in activity. This contrasted with a continued strong dynamic in Russia and Sweden.
In Corporate, organic growth was 1.2%, led by the ramp-up of major contracts with groups such as Unilever, Eli Lilly and AstraZeneca as well as Gazprom in the Remote Sites segment in Russia. These contracts more than offset the decline in foodservices volumes that resulted from both client staff cutbacks and reduced spending by consumers, which weighed on revenue growth in several countries. Highlights of the year on the business development front included renewal of the KLM contract in the Netherlands and the signature of new contracts with Air France, the Paris-Saint Germain (PSG) football stadium, Safran and Amundi in France, DNB in Norway, the Belgian Parliament and OMK Vyksa in Russia.
In Health Care and Seniors, organic revenue growth was 0.4%. This was partly the result of applying a more selective approach to new business in Southern Europe and it also reflected soft growth in site revenues, due to clients' strict controls over spending. Business wins included Pôle Santé Sud (Le Mans) in France.
Education revenues remained flat compared to the prior year. Growth in comparable site revenue was fairly limited, particularly in Spain and Italy due to pressure on school budgets leading to a reduction in the number of services. Sodexo also pursued a selective approach to new business in this segment, particularly in Southern Europe.
During Fiscal 2013, new contracts were signed with the Toulon schools in France, Satakunta University of Applied Sciences in Finland, and the Täby schools in Sweden.
Operating profit from On-site Services in Continental Europe was 196 million euro, representing a decline of 9.3% compared to the prior year excluding currency effects, which was mainly due to lower foodservices volumes and also to pricing pressure from clients seeking cost reductions, which meant that Sodexo was only able to pass on part of the increase in wages, payroll taxes and food prices. In addition, Sports and Leisure activities in France, which have high fixed costs, were affected by the decline in the number of tourists and unfavorable weather conditions. Tight control of overheads throughout the region nevertheless paid off, particularly in the second half of the fiscal year.
Operating margin narrowed to 3.4%, from 3.8% in Fiscal 2012.
| in million of euros | Fiscal 2013 | Fiscal 2012 | Organic growth |
Acquisitions | Currency effect |
Total growth |
|---|---|---|---|---|---|---|
| Corporate | 3,402 | 3,302 | +5.7% | |||
| Health Care and Seniors |
171 | 162 | +8% | |||
| Education | 110 | 113 | -1.9% | |||
| TOTAL | 3,683 | 3,577 | +5.5% | +0.5% | -3% | +3% |
With revenues of 3.7 billion euro, the Rest of the World region (combining Latin America, Middle East, Asia, Africa, Australia and Remote Sites) accounted for 21% of the Group's revenues in Fiscal 2013 compared to less than 10% in Fiscal 2005.
Organic growth in the region was 5.5%. This was a slower growth rate than in recent years, due to a certain loss of economic momentum in certain emerging markets and in the mining sector.
In December 2012, Sodexo acquired MacLellan, the leading facilities management services provider in India.
Organic growth in the Corporate segment was 5.7%, reflecting the fast pace of business development in Fiscal 2012, particularly in Colombia and Chile, and good growth in site revenues in India. However, the slowdown in industrial activity and the halting of new mining projects started to have an impact in the latter part of the fiscal year, while the completion of several Remote Sites projects had a modest negative effect.
During the fiscal year:
Sodexo's global expertise in the Health Care and Seniors segment continued to pay off, notably in Latin America, China and Southeast Asia, as illustrated by the 8% organic revenue growth and contract wins with establishments such as Wuhan University Renmin Hospital in China, Clinica Universidad de los Andes in Chile, and São Rafael de Salvador Hospital in Brazil.
Operating profit in the Rest of the World region contracted slightly compared to the previous year, to 119 million euro. In many countries operating profit was up sharply but in others, such as Brazil, Sodexo was only able to partially pass on to clients the impact of inflation on operating expenses (food prices, employee costs and indirect taxes).
Operating margin was 3.2% in Fiscal 2013 compared to 3.5% the previous year.
| in million of euros | Fiscal 2013 | Fiscal 2012 | Organic growth |
Acquisitions | Currency effect |
Total growth |
|---|---|---|---|---|---|---|
| Corporate | 993 | 1 155 | -14% | |||
| Health Care and Seniors |
274 | 254 | +7.1% | |||
| Education | 130 | 134 | -3.6% | |||
| TOTAL | 1,397 | 1,543 | -9.6% | +0.7% | -0.5% | -9.4% |
On-Site Services revenues in the United Kingdom and Ireland totaled 1.4 billion euro, down by nearly 10% compared to the previous year when Sodexo, in partnership with the Mike Burton Group, was a major service provider for the Rugby World Cup and the London Olympics. Revenues from these two events totaled over 207 million euro. Excluding these revenues from the basis of comparison, underlying organic revenue growth in the United Kingdom and Ireland was + 3.4%.
Acquisitions relate to WS Atkins' facilities management business in the United Kingdom, acquired in December 2011.
The ramp-up of facilities management offers for large corporations helped to drive 3.4% organic revenue growth in the Corporate segment (excluding the impact of the Fiscal 2012 sporting events). Contract wins included AstraZeneca, GSK, Augusta Westland and Unilever. The solid performance in facilities management services more than offset lower foodservices volumes.
In the Justice segment, Sodexo was awarded a major contract by Northumberland prison at the end of the fiscal year.
In Health Care and Seniors, growth accelerated to 7.1%, reflecting an excellent client retention rate and additions to the services provided to several university hospitals, including North Staffordshire University Hospital and Brighton and Sussex University Hospital.
In the Education segment, which accounts for less than 10% of Sodexo's revenues in the United Kingdom and Ireland, revenue contracted slightly compared to Fiscal 2012. Comparable on-site growth in university revenues was modest and the teams continued to apply a selective approach to new business in the State school sector.
On-Site Services operating profit in the United Kingdom and Ireland contracted to 67 million euro compared with 80 million euro in the previous year, which included the contribution from major sporting events. As a result, operating margin narrowed to 4.8%, from 5.2% in Fiscal 2012.
| in million of euros | Fiscal 2013 | Fiscal 2012 | Organic growth |
Acquisitions | Currency effect |
Total growth |
|---|---|---|---|---|---|---|
| Latin America | 8,128 | 7,016 | +22% | |||
| Europe and Asia | 7,908 | 7,730 | +1.0% | |||
| TOTAL | 16,036 | 14,746 | +11% | +2.5% | -4.7% | +8.8% |
Benefits and Rewards Services issue volume (face value multiplied by the number of vouchers and cards issued) totaled 16 billion euro in Fiscal 2013. Organic issue volume growth remained in the double digits, at 11%.
In Latin America growth accelerated to 22%, driving up issue volume to more than 8 billion euro. This strong gain was attributable to the steady increase in the number of beneficiaries in underpenetrated markets such as Brazil, and to higher voucher face values and to the effects of hyperinflation in Venezuela.
In Europe and Asia, organic issue volume growth was driven by the increase in issue volume under the ONEM contract in Belgium and strong business development in Turkey. These advances offset the impact on growth rates in the early part of the fiscal year of the fall in activity in Hungary, where a higher tax advantage is provided to beneficiaries of service vouchers issued by Hungarian companies since January 1, 2012.
| in million of euros | Fiscal 2013 | Fiscal 2012 | Organic growth |
Acquisitions | Currency effect |
Total growth |
|---|---|---|---|---|---|---|
| Latin America | 452 | 418 | +15.6% | |||
| Europe and Asia | 338 | 338 | -0.6% | |||
| TOTAL | 790 | 756 | +8.3% | +1.6% | -5.4% | +4.5% |
Benefits and Rewards Services organic revenue growth was 8.3%, comparable to Fiscal 2012. The November 2012 acquisition of Servi-Bonos, a leading meal voucher and card issuer in Mexico, added 1.6% to reported revenue.
Organic growth remained strong in Latin America, at 15.6%. This excellent performance was all the more remarkable in that it was achieved in an environment shaped by declining interest rates and pressure on client commissions in Brazil.
New clients that chose Sodexo in Fiscal 2013 included FEMSA, in several countries in the region, Ciferal Industria de Onibus in Brazil, Instituto Nacional de Vias (INVIAS) in Colombia and Reckitt Benckiser and Deacero SA in Mexico.
In Europe and Asia, revenue contracted by 0.6%. Excluding the impact of regulatory changes in Hungary, organic growth would have been 2.1%, reflecting strong business development in France and Turkey.
Recent contract wins included the Lyon Chamber of Commerce and Industry in France and the Diyarbakir city authorities in Turkey.
Benefits and Rewards Services operating profit totaled 304 million euro, an increase of 4.8% compared to the previous year. However, unfavorable changes in currency exchange rates against the euro, particularly for the Brazilian real, overshadowed the activity's strong underlying performance.
Excluding the currency effect, operating profit rose by 12.8%, reflecting the leverage provided by volume growth and the cost efficiencies generated by tight management of expense items; which allowed for continued investment in new technologies and marketing.
Benefits and Rewards Services operating margin was 38.5% compared to 38.4% the previous year.
| in million of euro | Change at current |
Change at constant |
||
|---|---|---|---|---|
| Fiscal 2013 | Fiscal 2012 | exchange rates | exchange rates | |
| Revenues | 18,397 | 18,236 | +0.9% | +1.5% |
| Operating profit | ||||
| before exceptional items | 953 | 958 | -0.5% | +1.7% |
| Exceptional items 1 | (139) | 26 | ||
| Operating profit | 814 | 984 | -17.3% | -15.2% |
| Financial income | 87 | 65 | ||
| Financial expenses | (223) | (231) | ||
| Share of profit of associates | 17 | 18 | ||
| Profit before tax | 695 | 836 | -16.9% | -15% |
| Income tax expense | (233) | (286) | ||
| Profit for the period | 462 | 550 | -16% | -14% |
| Non-controlling interests | 23 | 25 | ||
| GROUP PROFIT FOR THE PERIOD | 439 | 525 | -16.4% | -14.3% |
| Earnings per share (in euro) | 2.91 | 3.48 | -16.4% | -14.4% |
| Dividend per share (in euro) | 1.622 | 1.59 |
| Change | ||||
|---|---|---|---|---|
| in million of euro | Fiscal 2013 | Fiscal 2012 | At current exchange rate |
At constant exchange rate |
| Operating profit before exceptional items |
953 | 958 | -0.5% | +1.7% |
| Exceptional costs recorded in connection with the program to improve operational efficiency and reduce costs |
(139) | |||
| Accounting adjustment to retirement plan costs |
- | 26 | ||
| TOTAL exceptional items | (139) | 26 | ||
| REPORTED OPERATING PROFIT | 814 | 984 | -17.3% | -15.2% |
1 In Fiscal 2013, costs recorded in connection with the program to improve operational efficiency and reduce costs and in Fiscal 2012, a 26 million euro favorable accounting adjustment related to pension plan costs in the United Kingdom.
2 Subject to approval at the Annual Shareholders' meeting on January 21, 2014.
| Operating profit in million of euro Before corporate expenses |
Fiscal 2013 | Fiscal 2012 | Change at current exchange rate |
Change at constant exchange rate |
|---|---|---|---|---|
| On-site Services | ||||
| North America | 371 | 346 | +7.2% | +6.6% |
| Continental Europe | 196 | 215 | -8.8% | -9.3% |
| Rest of the World | 119 | 126 | -5.6% | -4.8% |
| UK and Ireland | 67 | 80 | -16.3% | -16.3% |
| Total On-site Services | 753 | 767 | -1.8% | -2.1% |
| Benefits and Rewards Services |
304 | 290 | +4.8% | +12.8% |
| Headquarters | -94 | -83 | ||
| Eliminations | -10 | -16 | ||
| Exceptional items | (139) | 26 | ||
| TOTAL | 814 | 984 | -17.3% | -15.2% |
August 31, 2012
| (in million of euro) | August 31, 2013 |
August 31, 2012 |
(in million of euro) | August 31, 2013 |
August 31, 2012 |
|---|---|---|---|---|---|
| SHAREHOLDERS' EQUITY | |||||
| Capital | 628 | 628 | |||
| Share premium | 1,109 | 1,109 | |||
| Consolidated reserves and retained earnings |
1,216 | 1,297 | |||
| Total Group shareholders' equity |
2,953 | 3,034 | |||
| Non-controlling interests | 37 | 35 | |||
| NON-CURRENT ASSETS | Total shareholders' equity | 2,990 | 3,069 | ||
| Property, plant and equipment | 540 | 574 | |||
| Goodwill | 4,803 | 5,031 | NON-CURRENT LIABILITIES | ||
| Other intangible assets | 528 | 563 | Borrowings | 1,895 | 2,550 |
| Client investments | 288 | 296 | Derivative financial instruments | 1 | 2 |
| Associates | 78 | 81 | Employee benefits | 372 | 381 |
| Financial assets | 118 | 133 | Other liabilities | 214 | 222 |
| Derivative financial instruments |
69 | 26 | |||
| Other non-current assets | 14 | 15 | Provisions | 99 | 105 |
| Deferred tax assets | 187 | 169 | Deferred tax liabilities | 153 | 161 |
| Total non-current assets | 6,625 | 6,888 | Total non-current liabilities | 2,734 | 3,421 |
| CURRENT ASSETS | CURRENT LIABILITIES | ||||
| Financial assets | 7 | 4 | Bank overdrafts | 40 | 15 |
| Derivative financial instruments |
39 | 1 | Borrowings | 712 | 136 |
| Inventories | 271 | 296 | Derivative financial instruments | 19 | 23 |
| Income tax receivable | 119 | 96 | Income tax payable | 109 | 130 |
| Trade and other receivable | 3,466 | 3,445 | Provisions | 116 | 41 |
| Restricted cash and financial assets related to the Benefits and Rewards Services activity |
734 | 609 | Trade and other payables | 3,347 | 3,422 |
| Cash and cash equivalents | 1,347 | 1, 451 | Vouchers payable | 2,541 | 2,533 |
| Total current assets | 5,983 | 5,902 | Total current liabilities | 6,884 | 6,300 |
| TOTAL ASSETS | 12,608 | 12,790 | TOTAL LIABILITIES AND EQUITY |
12,608 | 12,790 |
| (in million of euro) | Fiscal 2013 | Fiscal 2012 |
|---|---|---|
| Operating activities | ||
| Operating profit before financing costs | 814 | 984 |
| Non cash items | ||
| Depreciation | 271 | 353 |
| Provisions | 93 | (9) |
| Losses (gains) on disposals and other, net of tax | (4) | 16 |
| Dividends received from associates | 16 | 16 |
| Change in working capital from operating activities | (129) | 56 |
| Change in inventories | 6 | (7) |
| Change in client and other accounts receivable | (197) | (87) |
| Change in suppliers and other liabilities | 67 | (10) |
| Change in Service Vouchers and Cards to be reimbursed | 151 | 157 |
| Change in financial assets related to the Benefits and Rewards Services activity |
(156) | 3 |
| Interest paid | (171) | (160) |
| Interest received | 10 | 20 |
| Income tax paid | (282) | (258) |
| Net cash provided by operating activities | 618 | 1 018 |
| Investing activities | ||
| Acquisitions of tangible and intangible fixed asset investments | (241) | (308) |
| Fixed asset disposals | 12 | 28 |
| Change in client investments | (7) | (39) |
| Change in financial assets | 19 | 20 |
| Acquisitions of consolidated subsidiaries | (99) | (586) |
| Disposals of consolidated subsidiaries | 1 | 3 |
| Net cash used in investing activities | (315) | (882) |
| Financing activities | ||
| Dividends paid to parent company shareholders | (240) | (221) |
| Dividends paid to minority shareholders of consolidated companies | (23) | (26) |
| Treasury shares | 24 | (25) |
| Increase/Decrease in capital | 0 | 1 |
| Acquisitions of non-controlling interests | (12) | (15) |
| Proceeds from borrowings | 44 | 238 |
| Repayment of borrowings | (66) | (131) |
| Net cash used in financing activities | (273) | (179) |
| CHANGE IN NET CASH AND CASH EQUIVALENTS | 30 | (43) |
| Net effect of exchange rates and other effects on cash | (159) | 55 |
| Cash and cash equivalents, as of beginning of period | 1,436 | 1,424 |
| NET CASH AND CASH EQUIVALENTS, AS OF END OF PERIOD |
1,307 | 1,436 |
Air France, Orly, France Amundi, Paris, France Australian Submarine Corporation, Australia Banco Bradesco S.A., Osasco, Brazil Boston Consulting Group, Shanghai, China Boeing Company, three sites in South Carolina and Washington, United States Botica Farmacêutica, two sites in Brazil Cipla Palliative care and training center, Pune, India Commercial Aircraft Test Center SH CA, China DNB, Oslo, Norway Electrolux, São Carlos, Brazil Endesa, Madrid, Spain GlaxoSmithKline, Wavre, Belgium Harley Davidson Inc., Wisconsin, United States Hitachi Equipment Manufacturing, Tianjin, China Honda Motor Cycles and Scooter, Karnataka, India John Deere, Dewas and Patiala, India Martins, seven sites in Brazil Kuwait Ministry of Interior, 23 sites in Kuwait Nestlé India Ltd., Bangalore, India Nokia, 140 sites in 55 countries OMK Vyksa, Nizhny Novgorod, Russia Belgian parliament, Brussels, Belgium PWC Sydney, Australia Safran, Issy-les-Moulineaux, France Siemens Canada Ltd., 44 sites in Canada Sinosteel, Wuhan, China Stockholm County Council, Sweden The Co-operative Group Ltd., seven sites in the North West of England Volkswagen, Pune, India
Brighton & Sussex University Hospital, Brighton, United Kingdom Clínica Universidad de los Andes, Santiago, Chile Great Plains Regional Medical Center, three sites in Nebraska, United States HCA East Florida, nine hospitals in Florida, United States HCR ManorCare, 290 retirement homes in 32 states, United States Hospital São Rafael, Salvador, Brazil LA County, two UCLA Medical Center sites in California, United States Loyola University Chicago-Stritch School of Medicine, Illinois, United States Municipality of Gothenburg, Sweden Ochsner Medical Center, Louisiana, United States Pôle Santé Sud, Le Mans, France ProMedica Toledo Children's Hospital, Ohio, United States Renmin Hospital of Wuhan University, Wuhan, China The University of Arizona Medical Center, Arizona, United States Wesley Medical Center, Kansas, United States
US Air Force, five bases in the United States US Forces, Zayed military city, United Arab Emirates Base Aéronavale de Lanvéoc Poulmic, France Defense Commissary Agency, 12 sites in the United States
Al Mareefa College, Riyadh, Saudi Arabia Bayonne School District, New Jersey, United States Brandeis University, Massachusetts, United States British School of Beijing, Beijing, China Confederation College, four sites in Ontario, Canada Emerson College, Massachusetts, United States Ensemble Scolaire des Recollets, Longwy, France Hong Kong International School, Hong Kong Lynn University, Florida, United States Toulon City Hall, Toulon, France Täby municipality, 10 sites in Stockholm, Sweden Shanghai High School, Shanghai, China SSMS and Birla Institute of Technology and Science, Rajasthan, India St. Andrews College, Dublin Sultan Qaboos University, Muscat, Oman Teaneck School District, New Jersey, United States Universidad de los Andes, Bogota, Colombia Satakunta University of Applied Sciences (SAMK), Pori, Rauma and Kankaanpää, Finland University of Michigan Dearborn, Michigan, United States York County School District, Virginia, United States
HMP Northumberland, United Kingdom
Campamento Pionero, Antofagasta, Chile Dakota Landing, North Dakota, United States Highland Gold, Chukotka, Russia Hyundai Engineering & Construction Co. Ltd., Khasab, Oman Pacific Rubiales Energy, Puerto Gaitan, Colombia Suncor Fort Hills, Fort McMurray, Canada Total Clov, Angola Trepang Services – Blaydin Village, Darwin, Australia
Brighton & Hove Albion Football club, Brighton, United Kingdom Paris Saint-Germain FC, Paris, France
Aldi, Belgium Municipalities of Bursa et Diyarbakır, Turkey Chamber of Commerce and Industry, Lyon, France Conseil Général de Saône-et-Loire, France Euronics, Italy Roche Farma, Spain Sanofi-Aventis Ilaclari, Istanbul, Turkey
Availmed S.A., Guadalajara, Mexico Ciferal Indústria De Ônibus Ltda., Duque de Caxias, Brazil Companhia Docas do Estado de São Paulo, Santos, Brazil Deacero, S.A., Monterrey, Mexico Etapa - Vigilância e Segurança Ltda., São Luis, Brazil FEMSA, Mexico, Colombia, Venezuela and Brazil Fondo Rotatorio De La Policía, Cali, Colombia Zulia State Government, Venezuela Instituto Nacional de Vías (INVIAS), Bogota, Colombia Leviton, Tijuana, Mexico Municipality of Santa Fe, Brazil PepsiCo, Brazil Plastamp, Cabo de Santo Ago, Brazil Reckitt Benckiser, Mexico City, Mexico Sharp Electrónica Mexico, Mexico University of Campinas, Brazil
Capgemini, Bombay, India Delhi Metro Rail Corporation Ltd., India Jia Ding Telecom Bureau, China
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