EXACOMPTA CLAIREFONTAINE (EPA:EXAC) - Financial statement - 30 june 2020

Transparency directive : regulatory news

21/09/2020 18:30

Dear Shareholders,

At its 17 September 2020 meeting in Paris, the EXACOMPTA CLAIREFONTAINE Board
of Directors, chaired by Mr François Nusse, reviewed and approved the Group
financial statements for the six months ended 30 June 2020.

- Consolidated results

(EUR000)                  H1 2020     H1 2020       H1 2019
                                   at constant
                                  consolidation
                                     scope *
Income from continuing
activities
(Revenue)                313,515       267,213      307,877
Operating income/(loss)  (3,013)         (918)       3,955
Net income/(loss) before
tax                      (4,148)       (2,011)       3,880
Net income/(loss) after
tax                      (3,530)       (1,520)       3,219
Group share              (3,005)       (1,520)       3,219

* Results are also presented at constant consolidation scope. They exclude the
companies acquired in spring 2019 (Eurowrap, Biella and subsidiaries), not
consolidated in first half 2019, and two companies consolidated from the
beginning of 2020, including Fizzer in which the Group holds a 60% equity
stake.

While early year projections fuelled hopes of an encouragingly positive first
half, from 15 March onwards Group units had to cope with the COVID-19 epidemic,
implement the required measures to protect their employees and adjust
operations accordingly. Shutdowns, fragmented production, tumbling sales and
rising inventories led to a reversal of the trend versus first half 2019.

- Segment information
(EUR000)                      Paper  Processing  Inter-segment
                                                transactions   Total
Revenue                    130,464   248,473      (65,422)    313,515
Operating income/(loss)      9,896   (12,484)        (425)     (3,013)

(EUR000)                   France  Europe  Outside
                                            Europe    Total
Revenue                  167,944  131,950  13,621   313,515

Paper

Production of printing and writing papers in Western Europe fell 12% versus
first half 2019 (Cepi statistics).

The second quarter was marked by a slump in business among office suppliers and
printers, while the tonnage of paper sold by our four paper mills fell nearly
8%. We managed to keep production going thanks to our storage capacity and
in-house processing operations. Our output includes a growing proportion of
recycled paper. Raw material costs remained stable and we suffered no
significant interruptions to supplies.

Processing

According to GfK market research consultants, first half sales of manufactured
papers and filing articles in France fell 15% and 22% respectively
year-on-year.

The total volume of sales to offices and households fell sharply from March to
June, with wide discrepancies between specialty products. Production of
articles for the start of the school year and end- of-year period was only
marginally impacted by the epidemic.

Group financial results

First half 2020 revenue amounted to EUR313,515,000. At 30 June 2020, gross
borrowings stood at EUR248,424,000 including EUR32,310,000 of financial
liabilities arising from the capitalisation of leases pursuant to IFRS 16.
Consolidated shareholders' equity was EUR408,487,000.

The Group has negotiated additional lines of credit with its banks totalling
EUR30 million. At the interim balance sheet date, no commercial paper had been
issued out of a global programme of EUR125 million. With gross cash and cash
equivalents of EUR97,666,000 at 30 June 2020, Group net borrowings amounted to
EUR150,758,000, practically unchanged from 30 June 2019.

- Outlook

While sales returned to 2019 levels in Q3 2020, the recovery failed to offset
the loss of business in spring due to the pandemic and lockdown measures.
Furthermore, customer demand is currently focused on the short term and it is
still too early to have a clear idea of the impact the crisis will have on
consumer habits.

Full-year operating income is expected to be well below the 2019 figure of
EUR19,828,000.

                                 THE BOARD OF DIRECTORS

Head of Financial Reporting
Jean-Marie Nusse - Executive Vice President

F 88480 ETIVAL-CLAIREFONTAINE  -  TEL. +33 (0)3 29 42 42 42  -
FAX +33 (0)3 29 42 42 00
SA WITH CAPITAL OF EUR4,525,920 - SIRET: 505 780 296 000 16 -
NAF: 7010Z - RCS EPINAL: B 505 780 296 WEBSITE WWW.EXACOMPTACLAIREFONTAINE.FR -
EMAIL ACTIONNAIRE@CLAIREFONTAINE.COM

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EXACOMPTA CLAIREFONTAINE (EPA:EXAC) - Financial statement - 30 june 2020

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