TIDMSKG
6 May 2016: Smurfit Kappa Group plc ('SKG' or 'the Group') today
announced results for the 3 months ending 31 March 2016.
2016 First Quarter | Key Financial Performance Measures
EURm Q1 2016 Q1 2015 Change Q4 2015 Change
Revenue EUR2,001 EUR1,962 2% EUR2,089 (4%)
EBITDA before Exceptional Items and Share-based Payment (1) EUR281 EUR266 6% EUR326 (14%)
EBITDA margin 14.0% 13.5% 15.6%
Operating Profit before Exceptional Items EUR179 EUR166 8% EUR229 (22%)
Profit before Income Tax EUR128 EUR98 31% EUR191 (33%)
Basic EPS (cent) 38.8 30.9 26% 52.9 (27%)
Pre-exceptional Basic EPS (cent) 38.8 44.2 (12%) 59.3 (35%)
Return on Capital Employed(2) 15.3% 15.3% 14.8%
Free Cash Flow(3) EUR7 EUR25 (72%) EUR152 (96%)
Net Debt EUR3,029 EUR2,930 3% EUR3,048 (1%)
Net Debt to EBITDA (LTM) 2.5x 2.5x 2.6x
1) EBITDA before exceptional items and share-based payment expense is denoted by EBITDA throughout the remainderof the management commentary for ease of reference. A reconciliation of profit for the period to EBITDA before exceptional items andshare-based payment expense is set out on page 27.
2) LTM pre-exceptional operating profit plus share of associates' profit/average capital employed.
3) Free cash flow is set out on page 9. The IFRS cash flow is set out on page 16.
First Quarter Key Points
-- Group corrugated packaging growth including acquisitions of 5% with
solid underlying volume growth
-- Growth of 6% in pre-exceptional EBITDA with improved margin at 14%
-- Continued strong ROCE at 15.3%
-- Successful completion of two major upgrades of paper machines in the
Netherlands and Spain
-- Announcement of EUR40 per tonne price increase in European brown
kraftliner effective 15 June 2016
-- Confirmation of upgrade to Sterling Premium UK listing with retention
of euro denominated Irish listing
Performance Review and Outlook
Tony Smurfit, Smurfit Kappa CEO, commented: "Solid year-on-year
earnings progression in the first quarter of 2016 with 6% EBITDA
growth was driven by an improved operating performance and the
positive impact of acquisitions completed in 2015. Our well
invested, geographically diversified and vertically integrated
operations will continue to provide us with a resilient platform to
drive earnings and free cash flows.
"We continue to see good levels of demand for packaging across
almost all of the markets in which we operate. During the quarter,
currencies had a distorting effect which on a like-for-like basis
had a negative translation effect of almost EUR10 million on
EBITDA. In addition, the rebuilds of our Roermond and Sanguesa
mills adversely impacted profitability in the quarter. However,
both projects will enhance our European system's cost position and
commercial offering.
"Following the completion of over EUR380 million of acquisitions
in 2015, the Group's focus is on the successful integration of
these businesses through 2016 with the capacity for further bolt-on
acquisitions. Our capital investment programme of over EUR450
million per annum supports our objective to deliver higher quality
packaging and merchandising solutions to our global customers,
while continually driving operational efficiencies through our
integrated system.
"Assuming broad industry conditions prevail, we expect good
earnings growth in 2016."
Stock Exchange Listing Arrangements
Following the commencement of Sterling trading on the London
Stock Exchange on 1 March, the Group was formally confirmed by the
UK Listing Authority as a Premium listed company on 25 April 2016.
On the same date the Group's Irish listing was switched to a
secondary listing, but its participation in all of its existing
euro indices were maintained.
On 28 April the FTSE Nationality Advisory Committee confirmed
SKG's allocation to the UK classification for the purposes of the
UK Index Series. Inclusion in the UK Index Series of the FTSE
Indices is now conditional on SKG meeting the 20 business day
liquidity tests contained in the FTSE Ground Rules in the period
prior to 1 June 2016.
Capital Markets Day
The Group will hold a Capital Markets Day in the London Stock
Exchange on the morning of 3 June 2016. The event will provide
attendees with an overview of the Group alongside a review of
current key business initiatives and operational drivers. The event
will also be attended by other key members of SKG's executive and
operational management teams across Europe and the Americas.
About Smurfit Kappa
Smurfit Kappa is one of the leading providers of paper-based
packaging solutions in the world, with around 45,000 employees in
over 370 production sites across 34 countries and with revenue of
EUR8.1 billion in 2015. We are located in 21 countries in Europe,
and 13 in the Americas. We are the only large-scale pan-regional
player in Latin America.
With our pro-active team we relentlessly use our extensive
experience and expertise, supported by our scale, to open up
opportunities for our customers. We collaborate with forward
thinking customers by sharing superior product knowledge, market
understanding and insights in packaging trends to ensure business
success in their markets. We have an unrivalled portfolio of
paper-packaging solutions, which is constantly updated with our
market-leading innovations. This is enhanced through the benefits
of our integration, with optimal paper design, logistics,
timeliness of service, and our packaging plants sourcing most of
their raw materials from our own paper mills.
smurfitkappa.com
Check out our microsite: openthefuture.info Follow us on Twitter
at @smurfitkappa and on LinkedIn at 'Smurfit Kappa'.
Forward Looking Statements
Some statements in this announcement are forward-looking. They
represent expectations for the Group's business, and involve risks
and uncertainties. These forward-looking statements are based on
current expectations and projections about future events. The Group
believes that current expectations and assumptions with respect to
these forward-looking statements are reasonable. However, because
they involve known and unknown risks, uncertainties and other
factors, which are in some cases beyond the Group's control, actual
results or performance may differ materially from those expressed
or implied by such forward-looking statements.
Contacts
Seamus Murphy FTI Consulting
Smurfit Kappa
T: +353 1 202 71 80 T: +353 1 663 36 80
E: ir@smurfitkappa.com E: smurfitkappa@fticonsulting.com
2016 First Quarter | Performance Overview
In the quarter, the Group delivered a 6% increase in EBITDA and
an 8% increase in pre-exceptional operating profit year-on-year.
The Group also reported ROCE of 15.3% and its third consecutive
first quarter of positive free cash flow reflecting its consistent
focus on capital management and the benefit of incremental earnings
from its programme of capital investment.
In Europe, the Group's corrugated packaging operations reported
a solid quarter with a 2% year-on-year increase in underlying box
volumes when adjusted for days, and sequentially flat corrugated
pricing in local currency terms. Good demand growth and increased
pricing for Old Corrugated Containers ('OCC') is expected to
provide a support to containerboard and corrugated pricing for the
remainder of the year.
In the first quarter of 2016, OCC prices were 13% higher
year-on-year reflecting robust levels of global demand. Chinese
imports of OCC remain a solid underpin to demand with a 6%
year-on-year increase in January following a year in which the
country grew their OCC imports by 7%. However, incremental European
demand will be the more important driver of increasing tightness in
the grade in coming years, particularly in markets already short of
fibre such as Germany and the Netherlands.
In recycled containerboard, the market has remained relatively
stable through the first quarter despite higher inventory levels
year-on-year, which are now returning to more balanced levels. The
Group is the largest producer of recycled containerboard in Europe
with approximately three million tonnes of production per annum,
but remains a net buyer of approximately 700,000 tonnes per annum
for its market facing corrugated operations. Through a series of
completed and on-going capital investment projects, SKG's focus is
to ensure its containerboard network remains the most efficient,
lowest cost system in Europe.
Following a period of supply driven pricing pressure in the year
to April, the Group announced a EUR40 per tonne price increase for
its European brown kraftliner grades effective 15 June 2016. Market
demand for the grade remains strong and this is expected to support
the price increase through the seasonally tighter summer months.
SKG's 1.6 million tonnes of kraftliner production per annum is a
distinct competitive advantage for the Group in providing
corrugated customers with a complete product offering, while
maintaining a net long position of 500,000 tonnes per annum in the
grade.
In the Americas, the Group's operations delivered a strong
result in the first quarter with corrugated volume growth of 26%
and a recovery in EBITDA margin to 17%. Adjusting for acquisitions
and Venezuela, volume growth in the first quarter was over 3%
year-on-year. Within this, Mexico has maintained its strong growth
rate from the fourth quarter, with corrugated shipments 6% higher
year-on-year in the first quarter. The US business is showing
structural improvement and the integration of multiple acquisitions
is progressing well. Other markets such as Colombia and Argentina
are performing well in volume and EBITDA margin terms, while the
Group's new operations in Brazil are outperforming the market with
4% volume growth year-on-year.
The delivery of a positive free cash flow result despite a
working capital outflow and substantially increased capital
expenditure illustrates the significantly strengthened position of
the Group today. The Group's leverage, at 2.5 times net debt to
EBITDA is expected to continue to reduce as EBITDA from
acquisitions incrementally contribute over the course of the year
and the Group continues to generate strong free cash flows.
2016 First Quarter | Financial Performance
Revenue in the first quarter of EUR2,001 million was 2% up on
the EUR1,962 reported in 2015. However, with the contribution from
net acquisitions more than offset by negative currency movements in
the quarter, the underlying increase was over 3%.
EBITDA increased by 6% in the first quarter, from EUR266 million
in 2015 to EUR281 million in 2016, with an underlying move of 6% as
the negative impact of currencies was offset by the positive impact
of net acquisitions. During the quarter, the Group's EBITDA was
also impacted by approximately EUR5 million as a result of two
major mill projects, the rebuild of a 260,000 tonne machine in
Roermond, the Netherlands and the conversion of a 65,000 tonne
virgin machine in Sanguesa, Spain to Machine Glazed ('MG') paper.
These projects were completed by the end of March.
There were no exceptional items in the first quarter of 2016.
However, exceptional items charged within operating profit in the
first quarter of 2015 amounted to EUR39 million. The charge
represented the further impairment of the solidboard operations
held for sale of EUR6 million reported within cost of sales, and
EUR33 million, reported within other operating expenses, relating
to the higher cost to the Venezuelan operations of discharging
their non-Bolivar denominated payables following the adoption of
the Simadi rate in March 2015.
Basic EPS for the first quarter at 38.8 cent was 26% higher than
the 30.9 cent earned in the same period of 2015. On a
pre-exceptional basis, EPS for the first quarter was 12% lower
year-on-year at 38.8 cent compared to 44.2 cent in 2015.
2016 First Quarter | Free Cash Flow
In the first quarter of 2016, the Group reported a free cash
inflow of EUR7 million, compared to an inflow of EUR25 million in
the first quarter of 2015. Although the Group reported higher
EBITDA year-on-year, the decrease was primarily a result of an
EUR81 million increase in outflows for working capital and capital
expenditure. Exceptional items of EUR33 million in 2015,
predominantly associated with the Venezuelan exchange rate change,
did not reoccur.
Capital expenditure of EUR107 million in the first quarter of
2016 equated to 111% of depreciation, compared to 82% (EUR73
million) in the first quarter of 2015. On a full year basis capital
expenditure is expected to be broadly in line with 2015 levels.
The working capital outflow in the quarter was EUR98 million,
compared to EUR51 million in 2015. At the end of March, working
capital amounted to EUR628 million and represented 7.9% of sales,
compared to 6.6% at the end of December and 7.1% at March 2015.
Working capital levels remain an important priority for the Group
and have been substantially reduced in recent years through
consistent monitoring and review.
Cash interest at EUR36 million in the quarter was EUR6 million
higher than the same period of 2015. This increase is due to the
cost of financing our Brazilian acquisitions in December 2015, part
of which was funded in local currency where interest rates are
relatively high. On a full year basis, cash interest is expected to
increase by approximately EUR19 million to EUR142 million.
Tax payments in the first quarter of EUR28 million were EUR9
million lower than the same period of 2015. This was primarily due
to the timing of payments and some country specific reductions. The
cash tax payments continue to reflect the ongoing benefit of
historic tax losses and tax credits in Europe.
2016 First Quarter | Capital Structure
In recent years the Group's capital structure has been
transformed from that of a secured high yield company to an
unsecured strong cross over credit. This was achieved as a result
of the Group's consistent capacity to generate quality earnings and
strong free cash flows together with active management of its debt
portfolio. The strength of the Group's capital base together with
consistent delivery of strong free cash flows provides a solid and
cost effective support to the Group's growth agenda over the medium
term.
At 31 March 2016 the Group's average interest rate was 4.1%,
slightly higher year-on-year as a result of the introduction of
local currency Brazilian debt associated with the acquisitions of
INPA and Paema in December 2015. The Group's diversified funding
base and long dated maturity profile (4.4 years) provide a stable
funding outlook. In terms of liquidity, the Group held cash on
balance sheet of EUR361 million at the end of the quarter which was
further supplemented by undrawn credit facilities of approximately
EUR612 million.
2016 First Quarter | Operating Efficiency
Commercial Offering and Innovation
As part of its ongoing differentiation initiative, Smurfit Kappa
has continued to advance its communication and reputation among new
audiences across multiple channels. The Group recently embarked on
a number of targeted marketing campaigns showcasing the company's
industry-leading sustainability credentials and building awareness
of its unique ShelfSmart process, particularly within the fast
moving consumer goods ('FMCG') sector. The Group's marketing and
communications activity has developed on a number of fronts,
resulting in a strong brand presence highlighting expertise, and
some firsts in the area of marketing. This has been underpinned by
ongoing recognition of the company's innovation, expertise and
leadership by customers and trade groups.
Smurfit Kappa has continued to gain recognition for its
innovative packaging design and collaboration with valued customers
with a number of industry awards in the first quarter. At the
European Flexographic Industry Association ('EFIA') Awards, Smurfit
Kappa won 13 times, more than any other entrant, for its best in
class print capabilities. The Group's innovative designs also won
'Best Transport Packaging Solution' at the NL Packaging Awards
2016, and received two further awards at the Art of Packaging
Awards in Poland. Most importantly, Smurfit Kappa's customers have
recognised the Group for its collaborative approach. In the first
quarter, the Group was awarded 'Continuous Improvement Supplier of
the Year 2015' by Philips Lighting, and the award for 'Outstanding
Service' by Nestlé UK and Ireland.
Combining its unique range of expertise in design,
mechanisation, performance-packaging and brand impact using
ShelfSmart, Smurfit Kappa has recently launched the next generation
Mandrel Packaging Machine, which provides customers with the most
effective and optimised packaging machine solution to date. Smurfit
Kappa supplies approximately 200 machines per year to the Group's
customers and has built up an installed base of approximately 8,000
machines within its customer network. The Group offers a wide
portfolio of end of line packaging machines, such as tray erectors,
case erectors, wrap around machines and custom-built packing lines
and strongly believes packaging and machinery must work seamlessly
together to maximise efficiency and deliver the lowest total
packing cost.
Sustainability
The Group will publish its ninth Sustainable Development Report
in June 2016, which will give a comprehensive review of how the
Group relentlessly seeks to positively impact each of its
stakeholders. In addition to its continuous work in implementing
environmentally sustainable work practices and circular economies,
the Group continues to invest in the local communities in which we
have the privilege to operate.
Cost Take-out Programme
In recognition of the requirement to continuously drive cost
efficiencies to offset inflationary pressures, the Group has had a
formal cost take-out programme in place each year since 2008. The
programme has consistently provided a solid support to maintaining
operating efficiency despite steady increases in both direct and
indirect costs.
The Group announced a cost take-out target of EUR75 million for
the full year 2016 and expects to deliver on this commitment with
EUR15 million achieved in the first quarter.
Enhanced Capital Expenditure Programme
The Group is in the third and final year of its three-year
programme of 'Quick Win' capital expenditure, with an estimated
cash outflow of EUR73 million in relation to these projects
expected to completion. As previously guided, EBITDA benefits are
expected to lag expenditure with a EUR25 million EBITDA uplift in
2016 and a further EUR33 million benefit in 2017 to complete the
EUR75 million of incremental EBITDA derived from the programme. As
part of its full year 2015 results the Group confirmed EUR17
million of the Group's 2015 EBITDA was associated with the
programme to date.
2016 First Quarter | Regional Performance Reviews
Europe
The Group's European operations delivered a improved performance
year-on-year with an EBITDA margin of 13.7% compared to 13.1% in
2015. Despite some pressure from adverse movements in
containerboard pricing in the first quarter, the business is well
positioned into the remainder of the year with an improved
operating outlook, good demand levels and stable end market
corrugated prices.
Overall corrugated packaging volumes, adjusted for days and
acquisitions showed year-on-year progress, with a 1% increase on
the same period of 2015. Within this box volumes increased by 2%
while the more commodity corrugated sheet volumes declined by 4%.
Pricing for corrugated sheets came under pressure during the
quarter, prompting the Group to relinquish some volume in its focus
on price over volume across its markets. Box volumes continue to
make up approximately 88% of the Group's European volumes.
Following a recycled containerboard price increase in the summer
of 2015, the Group expected to raise its European corrugated prices
by up to 2% by the end of March 2016. Having achieved a price
increase of over 1% in the fourth quarter of 2015, further
increases were implemented in some of our major countries. However,
the average price has remained sequentially flat in the first
quarter of 2016 when adjusted for the impact of currency, as a
result of some weaker pricing in peripheral markets. Good demand
through the supply chain and a more stable market backdrop
following Easter is expected to provide support to corrugated
prices at this level.
Prices for European OCC rose steadily through the first half of
2015, and have been sustained at this higher level as a result of
strong domestic and export demand. As a result, in the first
quarter higher OCC costs were a headwind for the Group due to an
incremental year-on-year cost of EUR15 per tonne on SKG's more than
four million tonne per annum European consumption. However, over
the longer term higher OCC prices are viewed as a structural
support for testliner prices.
The Group's European recycled containerboard system is the
largest in Europe with an annual production of approximately three
million tonnes. In the first quarter, the Group slightly increased
its production despite the rebuild of its 260,000 tonne Roermond
machine and the conversion of its 65,000 tonne Sanguesa machine to
MG paper. This was primarily achieved by the improving performance
of the Group's Townsend Hook machine in the UK. Nonetheless the
Group remains approximately 700,000 tonnes short of recycled which
it buys on the market.
While the European kraftliner market has experienced some price
pressure to April, continued good levels of demand and tightening
market conditions are expected to support a price increase in the
grade over the summer months. The Group has announced a EUR40 per
tonne price increase effective 15 June 2016 which, when
implemented, will have a positive impact on the Group's 500,000
tonne net long position.
The Americas
The Americas segment delivered a good EBITDA performance, up
almost 21% year-on-year despite significant currency headwinds.
This result was underpinned by a number of acquisitions in 2015 and
good operational performances across the region. With EBITDA
margins in the region at 17% in the first quarter and organic
volumes up over 3% year-on-year excluding Venezuela, the business
is well positioned to drive continued earnings growth. As the
largest pan-regional supplier, the Group has begun to leverage its
scale in the region with its multinational customers through its
new Pan American Sales operation, which grew by almost 4% in the
quarter when compared to the same period in 2015.
Following a strong second half of 2015, the Mexican economy has
continued to grow well in the first quarter of 2016 supporting a 6%
increase in the Group's corrugated packaging volumes year-on-year.
This was particularly strong in the more domestically focused
southern and central operations. Although currency headwinds did
impact earnings in the first quarter, the Peso strengthened through
April indicating a more favourable outcome for the full year 2016.
The Group's 100,000 tonne recycled containerboard project in Mexico
City remains on track with a start-up expected in February
2017.
The Group's renamed Smurfit Kappa North American business
delivered a solid underlying performance while integrating three
corrugated packaging businesses acquired in the quarter. Although
reference containerboard prices decreased somewhat in the period,
the Group's continued focus on quality, service and cost
containment has limited the effect on profitability. The region
remains a key growth market for the Group.
In Colombia, SKG's volumes grew by 2% in the quarter. Similar to
the Mexican market, the currency backdrop in the country was
volatile through the first quarter but appears to have stabilised
into April. The EBITDA margin in the country has been supported at
a stable level by the continued implementation of higher corrugated
prices to offset currency movements, along with the consistent
application of effective cost take-out measures. The Group's
integration of the CYBSA business in Central America, which was
acquired in May 2015, is going to plan, and the Group's
restructured Dominican Republic business is performing well.
As expected, the political transition and subsequent currency
depreciation in Argentina has improved the business environment in
the country. The Group's business is growing in the country with a
2% increase in volumes and price increases to offset currency and
inflationary pressures. This positive business progression, coupled
with continued cost base optimisation has facilitated an
improvement in EBITDA margin in the quarter. The initial steps to
integrate the Group's Brazilian business, acquired at the end of
December 2015, are going to plan. While the market is expected to
remain difficult through 2016, the Group's business grew well ahead
of the market with an almost 4% increase in volumes in the
quarter.
In Venezuela, the economic environment has worsened considerably
in the quarter with a reported 8% contraction in GDP. In 2015, the
Group adopted the Simadi rate of exchange, subsequently replaced by
the DICOM rate as of 10 March 2016, thereby reducing Venezuela
EBITDA to between 1% and 2% of the Group. Going forward, the Group
remains committed to its operations and its people in the country
and the business continues to be run to the highest operating
standards.
The Group has operated in the Americas since the mid 1980's,
developing an experienced local management team and a well invested
asset base. This business today provides the Group with valuable
diversification of its end market exposure, with access to higher
growth and higher margin markets. While the developing markets tend
to be more volatile environments than Europe or the US, the breadth
of the Group's business in the region and the increasing
internationalisation of its customer base provides a resilient base
from which the Group has proven itself capable of driving superior
returns over the longer term.
Summary Cash Flow
Summary cash flows(1) for the first quarter are set out in the following table.
3 months to 3 months to
31-Mar-16 31-Mar-15
EURm EURm
EBITDA 281 266
Exceptional items - (33)
Cash interest expense (36) (30)
Working capital change (98) (51)
Current provisions (4) (5)
Capital expenditure (107) (73)
Change in capital creditors 8 1
Tax paid (28) (37)
Sale of fixed assets - 1
Other (9) (14)
Free cash flow 7 25
Share issues - 1
Purchase of own shares (net) (10) (15)
Purchase of businesses and investments (31) -
Net cash (outflow)/inflow (34) 11
Deferred debt issue costs amortised (2) (4)
Currency translation adjustments 55 (178)
Decrease/(increase) in net debt 19 (171)
(1) The summary cash flow is prepared on a different basis to the Condensed Consolidated Statement of Cash Flows under IFRS('IFRS cash flow'). The principal differences are as follows:
(a) The summary cash flow details movements in net debt. The IFRS cash flow details movements in cash and cash equivalents.
(b) Free cash flow reconciles to cash generated from operations in the IFRS cash flow as shown in the table below. The mainadjustments are in respect of cash interest, capital expenditure, tax payments and the sale of fixed assets and businesses.
(c) The IFRS cash flow has different sub-headings to those used in the summary cash flow.
3 months to 3 months to
31-Mar-16 31-Mar-15
EURm EURm
Free cash flow 7 25
Add back: Cash interest 36 30
Capital expenditure (net of change in capital creditors) 99 72
Tax payments 28 37
Less: Sale of fixed assets - (1)
Profit on sale of assets and businesses - non exceptional (2) -
Receipt of capital grants (in 'Other' per summary cash flow) (2) -
Non-cash financing activities (1) (3)
Cash generated from operations 165 160
Capital Resources
The Group's primary sources of liquidity are cash flow from
operations and borrowings under the revolving credit facility. The
Group's primary uses of cash are for funding day to day operations,
capital expenditure, debt service, dividends and other investment
activity including acquisitions.
At 31 March 2016, Smurfit Kappa Treasury Funding Limited had
outstanding US$292.3 million 7.50% senior debentures due 2025. The
Group had outstanding EUR161.4 million and STGGBP58.9 million
variable funding notes issued under the EUR240 million accounts
receivable securitisation programme maturing in June 2019, together
with EUR175 million variable funding notes issued under the EUR175
million accounts receivable securitisation programme maturing in
April 2018.
Smurfit Kappa Acquisitions had outstanding EUR200 million 5.125%
senior notes due 2018, US$300 million 4.875% senior notes due 2018,
EUR400 million 4.125% senior notes due 2020, EUR250 million senior
floating rate notes due 2020, EUR500 million 3.25% senior notes due
2021 and EUR250 million 2.75% senior notes due 2025. Smurfit Kappa
Acquisitions and certain subsidiaries are also party to a senior
credit facility. At 31 March 2016, the Group's senior credit
facility comprised term drawings of EUR572.6 million, US$55.2
million and STGGBP100 million under the amortising Term A facility
maturing in 2020. In addition, as at 31 March 2016, the facility
included a EUR625 million revolving credit facility of which EUR6
million was drawn in revolver loans, with a further EUR7 million in
operational facilities including letters of credit drawn under
various ancillary facilities.
The following table provides the range of interest rates at 31
March 2016 for each of the drawings under the various senior credit
facility loans.
Borrowing arrangement Currency Interest Rate
Term A Facility EUR 1.270% - 1.468%
USD 2.033%
GBP 2.108%
Revolving Credit Facility EUR 1.049%
Borrowings under the revolving credit facility are available to
fund the Group's working capital requirements, capital expenditures
and other general corporate purposes.
Following acquisitions of over EUR380 million in 2015, including
the Brazilian acquisitions in December, the Group increased the
Term Loan under its Senior Credit Facility by EUR250 million, from
EUR500 million to EUR750 million on 5 February 2016. The terms
applicable to the increase, including margin, amortisation profile
and maturity date are the same as the existing Term A loan. The
proceeds were substantially applied to reduce the drawings under
the revolving credit facility, thereby further improving the
Group's liquidity.
Market Risk and Risk Management Policies
The Group is exposed to the impact of interest rate changes and
foreign currency fluctuations due to its investing and funding
activities and its operations in different foreign currencies.
Interest rate risk exposure is managed by achieving an appropriate
balance of fixed and variable rate funding. As at 31 March 2016,
the Group had fixed an average of 66% of its interest cost on
borrowings over the following twelve months.
The Group's fixed rate debt comprised EUR200 million 5.125%
senior notes due 2018, US$300 million 4.875% senior notes due 2018
(US$50 million swapped to floating), EUR400 million 4.125% senior
notes due 2020, EUR500 million 3.25% senior notes due 2021, EUR250
million 2.75% senior notes due 2025 and US$292.3 million 7.50%
senior debentures due 2025. In addition the Group had EUR349
million in interest rate swaps with maturity dates ranging from
October 2018 to January 2021.
Market Risk and Risk Management Policies (continued)
The Group's earnings are affected by changes in short-term
interest rates as a result of its floating rate borrowings. If
LIBOR/EURIBOR interest rates for these borrowings increase by one
percent, the Group's interest expense would increase, and income
before taxes would decrease, by approximately EUR13 million over
the following twelve months. Interest income on the Group's cash
balances would increase by approximately EUR4 million assuming a
one percent increase in interest rates earned on such balances over
the following twelve months.
The Group uses foreign currency borrowings, currency swaps,
options and forward contracts in the management of its foreign
currency exposures.
Condensed Consolidated Income Statement - First Quarter
3 months to 31-Mar-16 3 months to 31-Mar-15
Unaudited Unaudited
Pre-exceptional 2016 Exceptional 2016 Total 2016 Pre-exceptional2015 Exceptional2015 Total2015
EURm EURm EURm EURm EURm EURm
Revenue 2,001 - 2,001 1,962 - 1,962
Cost of (1,411) - (1,411) (1,381) (6) (1,387)
sales
Gross 590 - 590 581 (6) 575
profit
Distribution (154) - (154) (159) - (159)
costs
Administrative (258) - (258) (256) - (256)
expenses
Other 1 - 1 - - -
operating
income
Other - - - - (33) (33)
operating
expenses
Operating 179 - 179 166 (39) 127
profit
Finance (61) - (61) (52) (2) (54)
costs
Finance 10 - 10 15 10 25
income
Profit 128 - 128 129 (31) 98
before
income tax
Income tax (38) (29)
expense
Profit for 90 69
the
financial
period
Attributable
to:
Owners 90 71
of the
parent
Non-controlling - (2)
interests
Profit for 90 69
the
financial
period
Earnings
per
share
Basic 38.8 30.9
earnings
per
share -
cent
Diluted 38.4 30.4
earnings
per share
- cent
Condensed Consolidated Statement of Comprehensive Income - First
Quarter
3 months to 3 months to
31-Mar-16 31-Mar-15
Unaudited Unaudited
EURm EURm
Profit for the financial period 90 69
Other comprehensive income:
Items that may be subsequently
reclassified to profit or loss
Foreign currency translation adjustments: (64) (342)
- Arising in the period
Effective portion of changes in fair
value of cash flow hedges:
- Movement out of reserve 2 4
- New fair value adjustments into reserve (2) 3
Net change in fair value - 1
of available-for-sale
financial assets
(64) (334)
Items which will not be subsequently
reclassified to profit or loss
Defined benefit pension plans:
- Actuarial loss (57) (32)
- Movement in deferred tax 7 4
(50) (28)
Total other comprehensive expense (114) (362)
Total comprehensive expense (24) (293)
for the financial period
Attributable to:
Owners of the parent (20) (252)
Non-controlling interests (4) (41)
Total comprehensive expense (24) (293)
for the financial period
Condensed Consolidated Balance Sheet
31-Mar-16 31-Mar-15 31-Dec-15
Unaudited Unaudited Audited
EURm EURm EURm
ASSETS
Non-current assets
Property, plant and equipment 3,085 2,910 3,103
Goodwill and intangible assets 2,484 2,343 2,508
Available-for-sale financial assets 21 21 21
Investment in associates 17 18 17
Biological assets 95 97 98
Trade and other receivables 36 14 34
Derivative financial instruments 23 48 34
Deferred income tax assets 188 238 200
5,949 5,689 6,015
Current assets
Inventories 732 682 735
Biological assets 8 8 8
Trade and other receivables 1,527 1,501 1,451
Derivative financial instruments 12 5 28
Restricted cash 8 8 5
Cash and cash equivalents 353 282 270
2,640 2,486 2,497
Assets classified as held for sale - 94 -
2,640 2,580 2,497
Total assets 8,589 8,269 8,512
EQUITY
Capital and reserves attributable
to the owners of the parent
Equity share capital - - -
Share premium 1,983 1,982 1,983
Other reserves (490) (329) (425)
Retained earnings 668 318 619
Total equity attributable to 2,161 1,971 2,177
the owners of the parent
Non-controlling interests 149 157 151
Total equity 2,310 2,128 2,328
LIABILITIES
Non-current liabilities
Borrowings 3,300 3,149 3,238
Employee benefits 856 912 818
Derivative financial instruments 18 18 15
Deferred income tax liabilities 152 139 179
Non-current income tax liabilities 27 18 25
Provisions for liabilities and charges 56 47 52
Capital grants 14 12 13
Other payables 11 6 13
4,434 4,301 4,353
Current liabilities
Borrowings 90 71 85
Trade and other payables 1,667 1,638 1,672
Current income tax liabilities 48 18 30
Derivative financial instruments 11 13 10
Provisions for liabilities and charges 29 53 34
1,845 1,793 1,831
Liabilities associated with assets - 47 -
classified as held for sale
1,845 1,840 1,831
Total liabilities 6,279 6,141 6,184
Total equity and liabilities 8,589 8,269 8,512
CondensedConsolidated Statement of Changes in Equity
Attributable to owners of the parent
Equity share capitalEURm Share premiumEURm OtherreservesEURm Retained earningsEURm TotalEURm Non-controlling Total equityEURm
interests
EURm
Unaudited
At 1 January 2016 - 1,983 (425) 619 2,177 151 2,328
Profit for the - - - 90 90 - 90
financial
period
Other
comprehensive
income
Foreign - - (60) - (60) (4) (64)
currency
translationadjustments
Defined benefit - - - (50) (50) - (50)
pension plans
Total - - (60) 40 (20) (4) (24)
comprehensive
(expense)/income
for the financial
period
Hyperinflation - - - 9 9 2 11
adjustment
Share-based - - 5 - 5 - 5
payment
Shares acquired - - (10) - (10) - (10)
by
SKG EmployeeTrust
At 31 March 2016 - 1,983 (490) 668 2,161 149 2,310
Unaudited
At 1 January 2015 - 1,981 (30) 271 2,222 197 2,419
Profit for the - - - 71 71 (2) 69
financial
period
Other
comprehensive
income
Foreign - - (303) - (303) (39) (342)
currency
translationadjustments
Defined benefit - - - (28) (28) - (28)
pension plans
Effective portion - - 7 - 7 - 7
of changes in
fairvalue of cash
flow hedges
Net changes in - - 1 - 1 - 1
fair value
ofavailable-for-sale
financial
assets
Total - - (295) 43 (252) (41) (293)
comprehensive
(expense)/income
for the financial
period
Shares issued - 1 - - 1 - 1
Hyperinflation - - - 4 4 1 5
adjustment
Share-based - - 11 - 11 - 11
payment
Shares acquired - - (15) - (15) - (15)
by
SKG EmployeeTrust
At 31 March 2015 - 1,982 (329) 318 1,971 157 2,128
An analysis of the movements in Other reserves is provided in
Note 13.
Condensed Consolidated Statement of Cash Flows
3 months to 3 months to
31-Mar-16 31-Mar-15
Unaudited Unaudited
EURm EURm
Cash flows from operating activities
Profit before income tax 128 98
Net finance costs 51 29
Depreciation charge 87 79
Impairment of assets - 6
Amortisation of intangible assets 8 8
Amortisation of capital grants (1) -
Equity settled share-based payment expense 5 11
Profit on sale of assets and businesses (2) -
Net movement in working capital (99) (54)
Change in biological assets 2 2
Change in employee benefits (15) (21)
and other provisions
Other 1 2
Cash generated from operations 165 160
Interest paid (37) (34)
Income taxes paid:
Overseas corporation tax (net (28) (37)
of tax refunds) paid
Net cash inflow from operating activities 100 89
Cash flows from investing activities
Interest received 1 1
Additions to property, plant and (97) (70)
equipment and biological assets
Additions to intangible assets (2) (2)
Receipt of capital grants 2 -
Increase in restricted cash (3) (1)
Disposal of property, plant and equipment 2 2
Purchase of subsidiaries and (30) -
non-controlling interests
Deferred consideration paid (1) -
Net cash outflow from investing activities (128) (70)
Cash flows from financing activities
Proceeds from issue of new ordinary shares - 1
Proceeds from bond issue - 250
Proceeds from other debt issues 250 -
Purchase of own shares (net) (10) (15)
Increase in other interest-bearing 10 -
borrowings
Payment of finance leases (1) (1)
Repayment of borrowings (170) (253)
Deferred debt issue costs paid (1) (6)
Net cash inflow/(outflow) from 78 (24)
financing activities
Increase/(decrease) in cash 50 (5)
and cash equivalents
Reconciliation of opening to closing
cash and cash equivalents
Cash and cash equivalents at 1 January 263 361
Currency translation adjustment 25 (96)
Increase/(decrease) in cash 50 (5)
and cash equivalents
Cash and cash equivalents at 31 March 338 260
An analysis of the net movement in working capital is provided
in Note 11.
Notes to the Condensed Consolidated Interim Financial
Statements
1.General Information
Smurfit Kappa Group plc ('SKG plc' or 'the Company') and its
subsidiaries (together 'SKG' or 'the Group') manufacture,
distribute and sell containerboard, corrugated containers and other
paper-based packaging products such as solidboard, graphicboard and
bag-in-box. The Company is a public limited company whose shares
are publicly traded. It is incorporated and tax resident in
Ireland. The address of its registered office is Beech Hill,
Clonskeagh, Dublin 4, D04 N2R2, Ireland.
2.Basis of Preparation and Accounting Policies
The consolidated financial statements of the Group are prepared
in accordance with International Financial Reporting Standards
('IFRS') issued by the International Accounting Standards Board
('IASB') as adopted by the European Union ('EU'); and those parts
of the Companies Act 2014 applicable to companies reporting under
IFRS. The financial information presented in this report has not
been prepared in accordance with International Accounting Standard
34 - 'Interim Financial Reporting' ('IAS 34').
The financial information presented in this report has been
prepared in accordance with the Group's accounting policies. Full
details of the accounting policies adopted by the Group are
contained in the financial statements included in the Group's
annual report for the year ended 31 December 2015 which is
available on the Group's website; smurfitkappa.com. The accounting
policies and methods of computation and presentation adopted in the
preparation of the condensed consolidated interim financial
statements are consistent with those described and applied in the
annual report for the financial year ended 31 December 2015. There
are no new IFRS standards effective from 1 January 2016 which have
a material effect on the condensed consolidated interim financial
information included in this report.
The condensed consolidated interim financial statements include
all adjustments that management considers necessary for a fair
presentation of such financial information. All such adjustments
are of a normal recurring nature. Certain tables in this interim
statement may not add precisely due to rounding.
The condensed consolidated interim financial statements
presented do not constitute full statutory accounts. Full statutory
accounts for the year ended 31 December 2015 will be filed with the
Irish Registrar of Companies in due course. The audit report on
those statutory accounts was unqualified.
3.Segmental Analyses
The Group has determined operating segments based on the manner
in which reports are reviewed by the chief operating decision maker
('CODM'). The CODM is determined to be the executive management
team responsible for assessing performance, allocating resources
and making strategic decisions. The Group has identified two
operating segments: 1) Europe and 2) The Americas.
The Europe segment is highly integrated. It includes a system of
mills and plants that primarily produces a full line of
containerboard that is converted into corrugated containers. The
Americas segment comprises all forestry, paper, corrugated and
folding carton activities in a number of Latin American countries
and the United States. Inter-segment revenue is not material. No
operating segments have been aggregated for disclosure
purposes.
Segment profit is measured based on earnings before interest,
tax, depreciation, amortisation, exceptional items and share-based
payment expense ('EBITDA before exceptional items').
3 months to 31-Mar-16 3 months to 31-Mar-15
EuropeEURm The Americas TotalEURm EuropeEURm TheAmericas Total
EURm EURm EURm
Revenue
and
results
Revenue 1,520 481 2,001 1,545 417 1,962
EBITDA 209 82 291 202 68 270
before
exceptional
items
Segment - - - - (33) (33)
exceptional
items
EBITDA 209 82 291 202 35 237
after
exceptional
items
Unallocated (10) (4)
centre
costs
Share-based (5) (11)
payment
expense
Depreciation (89) (81)
and
depletion
(net)
Amortisation (8) (8)
Impairment - (6)
of
assets
Finance (61) (54)
costs
Finance 10 25
income
Profit 128 98
before
income
tax
Income (38) (29)
tax
expense
Profit 90 69
for
the
financial
period
4.Exceptional Items
The following items are regarded 3 months to 3 months to
as exceptional in nature: 31-Mar-16 31-Mar-15
EURm EURm
Impairment of assets - 6
Currency trading loss on change - 33
in Venezuelan translation rate
Exceptional items included - 39
in operating profit
Exceptional finance costs - 2
Exceptional finance income - (10)
Exceptional items included - (8)
in net finance costs
There were no exceptional items in the first quarter of
2016.
Exceptional items charged within operating profit in the first
quarter of 2015 amounted to EUR39 million of which EUR6 million
related to an impairment of plant and equipment in the solidboard
operations held for sale. The remaining charge of EUR33 million
related to losses on the translation of non-Bolivar denominated
payables following the Group's decision to translate its Venezuelan
operations at the Simadi rate. The translation loss reflected the
higher cost to its Venezuelan operations of discharging these
payables.
Exceptional finance costs of EUR2 million in the first quarter
of 2015 represented the accelerated amortisation of the issue costs
relating to the debt within our senior credit facility which was
paid down with the proceeds of February's EUR250 million bond
issue.
Exceptional finance income in the first quarter of 2015
comprised a gain of EUR10 million in Venezuela on the retranslation
of the US dollar denominated intra-group loans at the Simadi
rate.
5.Finance Costs and Income
3 months to 3 months to
31-Mar-16 31-Mar-15
EURm EURm
Finance costs:
Interest payable on bank loans and overdrafts 12 9
Interest payable on other borrowings 27 24
Exceptional finance costs associated - 2
with debt restructuring
Foreign currency translation loss on debt 7 11
Fair value loss on derivatives 6 1
not designated as hedges
Net interest cost on net pension liability 6 5
Net monetary loss - hyperinflation 3 2
Total finance costs 61 54
Finance income:
Other interest receivable (1) (1)
Foreign currency translation gain on debt (8) (2)
Exceptional foreign currency translation gain - (10)
Fair value gain on derivatives (1) (12)
not designated as hedges
Total finance income (10) (25)
Net finance costs 51 29
6.Income Tax Expense
Income tax expense recognised in the Condensed Consolidated
Income Statement
3 months to 3 months to
31-Mar-16 31-Mar-15
EURm EURm
Current tax:
Europe 28 13
The Americas 18 15
46 28
Deferred tax (8) 1
Income tax expense 38 29
Current tax is analysed as follows:
Ireland 3 (3)
Foreign 43 31
46 28
Income tax recognised in the Condensed Consolidated Statement of
Comprehensive Income
3 months to 3 months to
31-Mar-16 31-Mar-15
EURm EURm
Arising on actuarial loss (7) (4)
on defined benefit plans
The tax expense in 2016 is EUR9 million higher than in the
comparable period due to increased taxable earnings. The income tax
expense is higher by EUR8 million in Europe and EUR1 million in the
Americas. The EUR9 million movement in deferred tax primarily
arises in Europe from the reversal of timing differences.
There is no income tax expense or credit associated with
exceptional items in 2016 and 2015.
7.Employee Benefits - Defined Benefit Plans
The table below sets out the components of the defined benefit
cost for the period:
3 months to 3 months to
31-Mar-16 31-Mar-15
EURm EURm
Current service cost 10 12
Gain on settlement (2) (2)
Net interest cost on net pension liability 6 5
Defined benefit cost 14 15
Included in cost of sales, distribution costs and administrative
expenses is a defined benefit cost of EUR8 million (2015: EUR10
million). Net interest cost on net pension liability of EUR6
million (2015: EUR5 million) is included in finance costs in the
Condensed Consolidated Income Statement.
The amounts recognised in the Condensed Consolidated Balance
Sheet were as follows:
31-Mar-16 31-Dec-15
EURm EURm
Present value of funded or partially (2,219) (2,195)
funded obligations
Fair value of plan assets 1,895 1,884
Deficit in funded or partially funded plans (324) (311)
Present value of wholly unfunded obligations (532) (507)
Net pension liability (856) (818)
The employee benefits provision has increased from EUR818
million at 31 December 2015 to EUR856 million at 31 March 2016,
mainly as a result of lower eurozone and Sterling corporate bond
yields which decreased the discount rates in the eurozone and
Sterling area.
.
8.Earnings Per Share
Basic
Basic earnings per share is calculated by dividing the profit
attributable to owners of the parent by the weighted average number
of ordinary shares in issue during the period less own shares.
3 months to 3 months to
31-Mar-16 31-Mar-15
Profit attributable to owners 90 71
of the parent (EUR million)
Weighted average number of ordinary 234 230
shares in issue (million)
Basic earnings per share (cent) 38.8 30.9
Diluted
Diluted earnings per share is calculated by adjusting the
weighted average number of ordinary shares outstanding to assume
conversion of all dilutive potential ordinary shares which comprise
convertible shares issued under the 2007 Share Incentive Plan and
deferred shares held in trust under the Deferred Annual Bonus
Plan.
3 months to 3 months to
31-Mar-16 31-Mar-15
Profit attributable to owners 90 71
of the parent (EUR million)
Weighted average number of ordinary 234 230
shares in issue (million)
Potential dilutive ordinary 2 4
shares assumed (million)
Diluted weighted average ordinary 236 234
shares (million)
Diluted earnings per share (cent) 38.4 30.4
Pre-exceptional
3 months to 3 months to
31-Mar-16 31-Mar-15
Profit attributable to owners 90 71
of the parent (EUR million)
Exceptional items included in - 31
profit (Note 4) (EUR million)
Pre-exceptional profit attributable to 90 102
owners of the parent (EUR million)
Weighted average number of ordinary 234 230
shares in issue (million)
Pre-exceptional basic earnings 38.8 44.2
per share (cent)
Diluted weighted average ordinary 236 234
shares (million)
Pre-exceptional diluted earnings 38.4 43.5
per share (cent)
9.Dividends
The Board has recommended a final dividend of 48 cent per share
for 2015 payable on 13 May 2016 subject to the approval of the
shareholders at the AGM.
10.Property, Plant and Equipment
Land and buildingsEURm Plant and equipmentEURm Total
EURm
Three months
ended
31 March 2016
Opening net book 988 2,115 3,103
amount
Reclassifications 8 (8) -
Additions - 102 102
Acquisitions - 20 20
Depreciation (11) (76) (87)
charge
Hyperinflation 2 2 4
adjustment
Foreign currency (16) (41) (57)
translation
adjustment
At 31 March 2016 971 2,114 3,085
Year ended 31
December
2015
Opening net book 1,079 1,954 3,033
amount
Reclassifications 19 (21) (2)
Additions 7 421 428
Acquisitions 46 116 162
Depreciation (47) (291) (338)
charge
Retirements and (18) (2) (20)
disposals
Hyperinflation 17 13 30
adjustment
Foreign currency (115) (75) (190)
translation
adjustment
At 31 December 988 2,115 3,103
2015
11.Net Movement in Working Capital
3 months to 3 months to
31-Mar-16 31-Mar-15
EURm EURm
Change in inventories (10) (26)
Change in trade and other receivables (98) (123)
Change in trade and other payables 9 95
Net movement in working capital (99) (54)
12.Analysis of Net Debt
31-Mar-16 31-Dec-15
EURm EURm
Senior credit facility:
Revolving credit facility(1)- interest at - 149
relevant interbank rate + 1.35%(5)
Facility A term loan(2)- interest at 741 494
relevant interbank rate + 1.60%(5)
U US$292.3 million 7.50% senior debentures 263 270
due 2025 (including accrued interest)
Bank loans and overdrafts 117 124
Cash (361) (275)
2018 receivables securitisation 174 174
variable funding notes
2019 receivables securitisation 234 232
variable funding notes
2018 senior notes (including accrued interest)(3) 460 477
EUR400 million 4.125% senior notes due 399 403
2020 (including accrued interest)
EUR250 million senior floating rate notes due 249 249
2020 (including accrued interest)(4)
EUR500 million 3.25% senior notes due 499 495
2021 (including accrued interest)
EUR250 million 2.75% senior notes due 247 248
2025 (including accrued interest)
Net debt before finance leases 3,022 3,040
Finance leases 7 8
Net debt including leases 3,029 3,048
(1) Revolving credit facility ('RCF') of EUR625 million
(available under the senior credit
facility) to be repaid in 2020(a) Revolver
loans - EUR6 million, (b) drawn
under ancillary facilities and facilities
supported by letters of credit - niland
(c) other operational facilities including
letters of credit - EUR7 million.
(2) Facility A term loan ('Facility A') due
to be repaid in certain instalments
from 2018 to 2020. In February 2016,the Group increased
Facility A by EUR250 million. The proceeds were substantially
applied to reduce the Group'sdrawings under the RCF.
(3) EUR200 million 5.125% senior notes due 2018 and US$300
million 4.875% senior notes due 2018.
(4) Interest at EURIBOR + 3.5%.
(5) The margins applicable under the senior credit
facility are determined as follows:
Net debt/EBITDA ratio RCF Facility A
Greater than 3.00 : 1 1.85% 2.10%
3.00 : 1 or less but more than 2.50 : 1 1.35% 1.60%
2.50 : 1 or less but more than 2.00 : 1 1.10% 1.35%
2.00 : 1 or less 0.85% 1.10%
13.Other Reserves
Other reserves included in the Condensed Consolidated Statement
of Changes in Equity are comprised of the following:
Reverseacquisition Cash flow Foreign Share- Own sharesEURm Available-for-sale
reserveEURm hedging reserveEURm currency based reserveEURm Total
translation payment EURm
reserve reserve
EURm EURm
At 1 January 575 (22) (1,109) 168 (38) 1 (425)
2016
Other
comprehensive
income
Foreign - - (60) - - - (60)
currencytranslation
adjustments
Total - - (60) - - - (60)
other
comprehensive
expense
Share-based - - - 5 - - 5
payment
Shares acquired - - - - (10) - (10)
by
SKGEmployee
Trust
Shares - - - (14) 14 - -
distributed
by
SKGEmployee
Trust
At 31 March 575 (22) (1,169) 159 (34) 1 (490)
2016
At 1 January 575 (33) (689) 156 (40) 1 (30)
2015
Other
comprehensive
income
Foreign - - (303) - - - (303)
currencytranslation
adjustments
Effective - 7 - - - - 7
portion
ofchanges
in fair
value ofcash
flow
hedges
Net change in - - - - - 1 1
fair value
ofavailable-for-sale
financialassets
Total - 7 (303) - - 1 (295)
other
comprehensive
income/(expense)
Share-based - - - 11 - - 11
payment
Shares acquired - - - - (15) - (15)
by
SKGEmployee
Trust
Shares - - - (13) 13 - -
distributed
by
SKGEmployee
Trust
At 31 March 575 (26) (992) 154 (42) 2 (329)
2015
Supplementary Financial Information
EBITDA before exceptional items and share-based payment expense
is denoted by EBITDA in the following schedules for ease of
reference.
Reconciliation of Profit to EBITDA
3 months to 3 months to
31-Mar-16 31-Mar-15
EURm EURm
Profit for the financial period 90 69
Income tax expense 38 29
Exceptional items charged - 39
in operating profit
Net finance costs (after 51 29
exceptional items)
Share-based payment expense 5 11
Depreciation, depletion 97 89
(net) and amortisation
EBITDA 281 266
Supplementary Historical Financial Information
EURm Q1, 2015 Q2, 2015 Q3, 2015 Q4, 2015 FY, 2015 Q1, 2016
Group and 3,235 3,305 3,347 3,422 13,309 3,264
third
party
revenue
Third 1,962 2,034 2,024 2,089 8,109 2,001
party
revenue
EBITDA 266 285 305 326 1,182 281
EBITDA 13.5% 14.0% 15.0% 15.6% 14.6% 14.0%
margin
Operating 127 176 195 214 711 179
profit
Profit 98 145 165 191 599 128
before
income tax
Free cash 25 49 162 152 388 7
flow
Basic 30.9 42.3 46.4 52.9 172.6 38.8
earnings
per
share -
cent
Weighted 230 231 231 233 232 234
average
number
of
sharesused
in
EPS
calculation
(million)
Net debt 2,930 3,100 2,953 3,048 3,048 3,029
Net debt 2.53 2.70 2.57 2.58 2.58 2.53
to
EBITDA
(LTM)
View source version on businesswire.com:
http://www.businesswire.com/news/home/20160505006815/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
May 06, 2016 02:00 ET (06:00 GMT)
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