JSG Funding plc: 2004 Fourth
Quarter and Full Year Results |
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DUBLIN, Ireland, Feb 17, 2005 (BUSINESS WIRE) -- JSG
Funding plc ('JSG Funding' or the 'Group') today announced results for the 3
months and year ended December 31, 2004. 4Q '04 4Q '03 Change 4Q '04 3Q '04 Change Full Full Change Year Year 2004 2003 EUR m EUR m % EUR m EUR m % EUR m EUR m % ---------------------------------------------------------------------- Net sales 1,193 1,174 2% 1,193 1,186 1% 4,805 4,746 1% EBITDA(a) 160 151 6% 160 146 10% 606 627 (3%) EBITDA Margin(a) 13.4% 12.8% 13.4% 12.3% 12.6% 13.2% Free cash flow 22 35 (37%) 22 82 (73%) 187 178 5% (a)Pre-exceptional EBITDA of subsidiaries only ----------------------------------------------------------------------
Fourth Quarter and Full Year Summary 2004 fourth quarter and full year results reflect continuing
difficult market conditions in Europe offset by strong performances in our
Latin America operations, aided by more buoyant market conditions there.
However, fourth quarter results for Europe did reflect slight upward pricing
momentum, particularly in kraftliner. Despite difficult market conditions and
broadly unchanged net sales and EBITDA, JSG continues to generate positive
free cash flow. Net sales increased modestly in the fourth quarter and in
the full year. EBITDA, before exceptional items, for the fourth quarter of
2004, at EUR 160 million was EUR 9 million higher than in the same period of
2003. This reflects improvements in our Latin American operations and
Munksjo's specialty businesses and slightly improved kraftliner pricing in
Europe. 2004 full year EBITDA, at EUR 606 million before exceptional items,
compares to EUR 627 million in 2003. The decline, year-on-year, reflects an
EUR 18 million gain on property sales in 2003. Excluding this gain in 2003,
EBITDA is broadly unchanged year-on-year. The positive impact on 2004 of net acquisitions in 2003,
principally Smurfit-Stone's European packaging operations offset by the
absence of Smurfit MBI in Canada, was reduced by the effect of the strong
euro which negatively impacted the translation of our US dollar earnings from
Latin America. In line with our commitment to address non cash
generating businesses we announced the closure of three of our European
plants. These are our Cordoba recycled mill in Spain, and our Tamworth
Corrugated and Witham Carton plants both in the UK. These plant closures
together with other reorganisation actions account for the exceptional
reorganisation and restructuring costs of EUR 31 million and EUR 39 million
in the fourth quarter and full year respectively. Partly offsetting these
costs are exceptional gains on sales of assets and businesses of EUR 7
million and EUR 22 million in the fourth quarter and full year respectively.
The gains result mainly from the sale of surplus properties. While the difficult market conditions in Europe impacted
growth in net sales and EBITDA, JSG continues to generate sustainable free
cash flow. 2004 free cash flow of EUR 187 million compares to EUR 178 million
in 2003. Financing and investment outflows in 2004 amounted to a net EUR 5
million resulting in a net cash inflow of EUR 182 million compared to a
deficit of EUR 31 million in 2003. JSG's net borrowing (including capital leases) was EUR
2,913 million at December 2004 compared to EUR 3,101 million at December
2003. Corporate Activity Asset Sales
On December 22, 2004 JSG announced that it had signed a
definitive agreement to sell its Munksjo specialty business to The EQT III
Fund for approximately EUR 450 million. On December 14, 2004 SCA (Svenska
Cellullosa Aktiebolaget) announced that it had agreed to buy the Munksjo
Tissue business from JSG for approximately EUR 28 million. The cash generated
from these sales will be used to reduce debt. The Munksjo specialty assets being sold comprise pulp,
decor paper, and specialty paper businesses and had sales from operations for
2004 of approximately EUR 480 million. The Munksjo Tissue assets being sold
comprise two paper mills producing base paper for tissue and generated sales
from operations of approximately EUR 50 million in 2004. JSG retains the Munksjo containerboard and corrugated
assets, located in Norway, Sweden and Poland, which comprise approximately
90,000 tonnes of containerboard and 150,000 tonnes of corrugated capacity. New Offerings On January 13, 2005 JSG Funding commenced a tender offer
to purchase for cash all outstanding existing 15.5% subordinated notes. All
of the euro 15.5% subordinated notes and 99.99% of the dollar 15.5%
subordinated notes were tendered. The tender offer was completed on February
14, 2005. In January 2005, JSG Funding completed an offering of EUR 217.5
million and $200 million of 7.75% subordinated cash-pay notes due 2015. JSG
Funding applied the proceeds from this offering to fund the purchase of the
15.5% subordinated notes tendered. This new issue lowers JSG Funding's
overall cost of capital. Concurrently with the completion of this offering of
notes, JSG Holdings plc, the indirect parent of JSG Funding, completed an
offering of EUR 325 million of 11.5% senior PIK notes due 2015, substantially
all of the net proceeds of which will be loaned to JSG Packaging Limited, its
parent, which, in turn, intends to pay the net proceeds to its shareholders
by means of a share capital reduction under Irish law. Financial Review Fourth Quarter 2004: Year-on-year performance
Fourth quarter net sales of EUR 1,193 million increased
2% against EUR 1,174 million in the fourth quarter of 2003. Excluding the
effect of closures and currency movements, sales increased EUR 34 million or
3% on the comparable period in 2003. Fourth quarter EBITDA, before exceptional items, of EUR
160 million increased 6% against EUR 151 million in the fourth quarter of
2003. Excluding the effect of closures and currency movements, EBITDA, before
exceptional items, increased EUR 11 million or 7% on the comparable period in
2003. EBITDA, before exceptional items, of EUR 160 million represents a
margin of 13.4% on net sales against 12.8% in the fourth quarter of 2003. The
increased margin in the fourth quarter principally reflects the very strong
performance of our Latin American businesses in what has historically been a
seasonally moderate last quarter. Fourth Quarter 2004: Quarter-on-quarter performance Fourth quarter net sales of EUR 1,193 million increased
1% against EUR 1,186 million in the third quarter of 2004. Excluding the
effect of currency movements, sales increased EUR 13 million or 1% on the
third quarter. Fourth quarter EBITDA, before exceptional items, of EUR
160 million increased 10% against EUR 146 million in the third quarter of
2004. Excluding the effect of currency movements, EBITDA, before exceptional
items, increased EUR 15 million or 10% on the third quarter. EBITDA, before
exceptional items, of EUR 160 million represents a margin of 13.4% on net
sales against 12.3% in the third quarter. The fourth quarter EBITDA benefits
from the normal annual review and adjustment of accounting provisions. Full year 2004: Year-on-year performance 2004 full year net sales of EUR 4,805 million increased
EUR 59 million or 1% against EUR 4,746 million in 2003. Excluding the effect
of acquisitions, disposals and currency movements, sales increased EUR 82
million or 2% on 2003 levels. 2004 EBITDA, before exceptional items, of EUR 606 million
decreased 3% against EUR 627 million in 2003. Excluding the effect of
acquisitions, disposals and currency movements, EBITDA, before exceptional
items, decreased EUR 19 million or 3% on 2003 levels. EBITDA is broadly
unchanged year-on-year; the decline year-on-year reflects an EUR 18 million
gain on property sales in 2003. Excluding this gain in 2003, EBITDA before
exceptional items, of EUR 606 million represents a margin of 12.6% on net
sales against 13.2% in 2003. Adjusting 2003 for one-off gains, EBITDA
represents a margin of 12.8% on net sales. Product Market Overview Europe
European market conditions remained challenging
throughout 2004. In addition, despite volume growth in kraftliner, recycled
containerboard and corrugated, the price environment remains difficult. The
European recycled containerboard industry is experiencing significant
capacity additions against a backdrop of modest demand growth which will
continue to impact the industry's performance. The industry is also
experiencing the shut down of some old, inefficient capacity. JSG continues
to focus on reducing costs and further integrating containerboard and
corrugated operations. An integrated system will support JSG's margins and
protect the cash flow generation of the business in difficult market
conditions. Kraftliner performed better in volume terms and benefited
from an improving global supply and demand balance. JSG's kraftliner volumes
increased 2% in the fourth quarter and 6% year-on-year which reflects
improving market conditions and soft comparisons in 2003. Kraftliner product
pricing began to recover in 2004 and a EUR 50 per tonne price increase,
announced for September 2004, was progressively implemented during the third
and fourth quarters. Fourth quarter kraftliner prices were EUR 37 per tonne
higher than those prevailing in 2003. However, average kraftliner prices for
the full year were EUR 20 per tonne lower than in 2003. 2004 recycled containerboard volumes, excluding
acquisitions, increased 3% on 2003. This 3% increase includes a 6% increase
in volumes in France and 4% in the UK. These volume increases reflect an
increased level of integration in France and improved third-party sales in
the UK. Including acquisitions, volumes increased 12% year-on-year. Waste-fiber prices, the primary input cost for recycled
containerboard, remained broadly unchanged during the fourth quarter. 2004
average waste-fiber prices were EUR 10 per tonne lower than 2003 levels. The
recycled containerboard price increase of EUR 50 per tonne, which was
announced for October, was partially implemented during the fourth quarter.
2004 average fourth quarter recycled containerboard prices were EUR 7 per
tonne higher than the comparable period in 2003. 2004 full year average
prices were in-line with 2003 levels.Corrugated volumes were broadly in-line
with 2003 levels in the fourth quarter. Excluding acquisitions, 2004 full
year volumes increased 1% year-on-year. Including the effect of acquisitions,
2004 full year corrugated volumes increased 12% year-on-year. Competitive
market conditions across Europe and unchanged waste-fiber and recycled
containerboard prices resulted in static corrugated prices during the
quarter. Corrugated prices, in the fourth quarter, were in line
with prices in the same period in 2003. Full year average corrugated prices
declined 2% on 2003 levels. Latin America JSG's Latin American operations reported record results
in 2004. Sales and EBITDA grew in double digits in 2004 in their reporting
currency, the US dollar. Latin American containerboard and corrugated volumes
both increased approximately 9% year-on-year. Average prices increased 1% and
5% on 2003 levels in containerboard and corrugated respectively. Our Mexican operations continue to reflect improvements
in domestic demand and export demand from the Maquiladora area. This
improvement in demand, coupled with our early 2004 internal restructuring,
resulted in a strong financial performance from our Mexican operations -
particularly in the second half of 2004. Containerboard and corrugated
volumes increased 8% and 4% on 2003 levels respectively. Product pricing also
improved modestly year-on-year. The Colombian economy continues to grow modestly. During
2004 the Colombian Peso strengthened against the dollar resulting in
significant cost increases in dollar terms; however, volume and price
improvements more than offset cost increases. Containerboard and corrugated
volumes increased 2% and 8% on 2003 levels respectively. The Venezuelan economy and currency remain relatively
protected and continue to positively impact the results of our operations
there. Demand and product pricing remain strong. However, the returns
achieved in 2004 may not be sustainable in the longer term. 2004
containerboard and corrugated volumes increased 12% and 25% respectively
year-on-year. Argentina's strong volume growth continued in the fourth
quarter. As a consequence, 2004 full year containerboard and corrugated
volumes increased 10% and 14% on 2003 levels respectively. Prices in
containerboard were broadly unchanged year-on-year, however, a modest
increase in corrugated prices contributed to improved financial performance
in 2004. The development of our new corrugated facility in
Santiago, Chile, is complete and sales began during the fourth quarter.
Initial performance is in line with the Group's expectations. Fourth Quarter 2004: Cash flows Fourth quarter 2004 free cash flow of EUR 22 million
compares to EUR 35 million in the comparable period in 2003. JSG's subsidiaries
generated a pre-tax loss for the quarter of EUR 10 million, however, cash
flow benefited from non-cash add backs and from the continued decrease of
working capital levels. Fourth quarter capital expenditure of EUR 65 million
represented 108% of depreciation compared to 70% for the first nine months of
2004. This is a typical profile of fourth quarter capital expenditure, as in
2003, where JSG's expenditure level was lower in the first nine months with
relatively higher expenditure in the fourth quarter. This resulted in full
year expenditure to depreciation ratio of almost 80% - in line with our
expectations. JSG continues to make progress in reducing working
capital levels and working capital decreased by EUR 11 million in the
quarter. Working capital of EUR 362 million at December 2004 represented 7.6%
of annualised net sales compared to 9.1% at December 2003. JSG reported a cash flow surplus of EUR 19 million
compared to EUR 28 million for the same period in 2003. The surplus for the
quarter was partly offset, however, by the add-back of non-cash interest
accrued. Currency adjustments were positive during the quarter
reflecting the strength of the euro, primarily against the US dollar. In
total, net borrowing decreased by EUR 67 million from EUR 2,963 million (EUR
2,991 million including leases) at September 2004 to EUR 2,895 million (EUR
2,913 million including leases) at December 2004. Full Year 2004: Cash flows 2004 full year free cash flow of EUR 187 million compares
to EUR 178 million in 2003. JSG's 2004 free cash flow reflects lower tax
payments year-on-year offset by reduced working capital inflow. We continued to focus on generating cash flow from sales
of surplus assets during 2004. Disposals for the year generated an inflow of
EUR 34 million including EUR 29 million from the sale of unused property.
Cash generation was partly offset in 'Other' by accelerated profit sharing
payments to employees of EUR 13 million coupled with a lease bullet payment
of EUR 10 million. Changed tax laws in France reduced the length of the
deferral period and resulted in accelerating payments to employees in respect
of deferred compensation. Depreciation was higher in 2004, reflecting the
acquisition of the former Smurfit-Stone European packaging operations during
2003 and the adjustments to fixed assets effected at the end of 2003 arising
from the completion of the fair value exercise. Capital expenditure at EUR
206 million for 2004 represented 79% of depreciation compared to 82% in 2003.
This is consistent with JSG's target to control capital expenditure at or
close to the 80% level. Tax payments, at EUR 37 million, were lower than in 2003,
reflecting a Dutch tax refund and tax repayments in certain other European
countries. These credits were partly offset by higher payments in Latin
America as a result of the growth in regional profits. Under the Bosal
judgement, JSG received approximately EUR 20 million from the Dutch
authorities in 2004. Financing and investment outflows were modest in 2004 and
JSG reported a net cash inflow of approximately EUR 182 million for the year.
The EUR 182 million operating surplus was offset by the
add-back of non-cash interest but positively impacted by a currency
adjustment of EUR 40 million. As a result, net borrowing decreased by EUR 177
million year-on-year. Net borrowing amounted to EUR 2,895 million (EUR 2,913
million including leases) at December 2004 compared to EUR 3,073 million (EUR
3,101 million including leases) at December 2003. Summary cash flows for the three months and twelve months
to December 2004 and 2003 are set out in the following table: 3 Months 3 Months 12 Months 12 Months to to to to Dec 31 Dec 31 Dec 31 Dec 31 2004 2003 2004 2003 EUR EUR EUR EUR Million Million Million Million ---------------------------------------------------------------------- (Loss)/profit before tax - subsidiaries (10) (21) (3) 2 Exceptional items 16 17 1 11 Depreciation and depletion 61 61 263 253 Goodwill amortization 7 11 38 45 Non cash interest expense 22 15 68 59 Working capital change 11 29 42 63 Capital expenditure (65) (81) (206) (207) Change in capital creditors 14 14 7 - Sale of fixed assets 11 4 34 12 Tax paid (17) (8) (37) (59) Dividends from associates - - 3 1 Other (28) (6) (23) (2) ---------------------------------------------------------------------- Free cash flow 22 35 187 178 Investments (1) (2) (6) (181) Sale of businesses and investments 3 7 3 36 Dividends paid to minorities (1) (1) (6) (7) Deferred debt issue costs (3) - (6) (8) Transaction fees (1) (3) (3) (21) Transfer of cash from /(to) affiliates - (8) 13 (28) ---------------------------------------------------------------------- Net cash inflow / (outflow) 19 28 182 (31) Net cash acquired/disposed - 1 - 56 SSCC inter-company debt repaid - - - (97) Non-cash interest accrued (12) (11) (45) (41) Currency translation adjustments 60 54 40 152 ---------------------------------------------------------------------- Decrease in net borrowing EUR 67 EUR 72 EUR 177 EUR 39 ----------------------------------------------------------------------
Performance Review and Outlook Gary McGann, Chief Executive Officer, commented, "We
are pleased to report record financial results for our Latin American
operations. These results have been delivered thanks to the breadth and depth
of our management team and must be viewed in the context of the current
exchange rate environment. The results vindicate our strategy of managing
risk through geographic diversity. In Europe, we continue to focus on improving performance
against a backdrop of continuing economic weakness and significant additional
containerboard capacity. Our strengthened team in Europe is managing each of
the factors within our control and our continued focus on our customer
driven, integrated packaging system, has served to deliver strong cash flow
in 2004. Through cost and productivity improvements we also continue to make
progress towards the objective of better operating margins at each point of
the industry cycle. During 2004 we made further progress towards maximizing
the cash flow generation capability of our business. We will further reduce
our cost of capital and improve our cash flow when all of the current
corporate initiatives, including asset sales and the debt re-financing, are
completed. The outlook for 2005 continues to reflect ongoing
difficult pricing markets in Europe counterbalanced by positive business
conditions in Latin America." Website access to reports JSG Funding's annual report on Form 20-F, current reports
on Form 6-K, the April 2003 registration statement on Form F-4 and all
amendments to those reports are made available free of charge through the
Registrant's website (www.smurfit-group.com)
as soon as practicable after such material is electronically filed with or
furnished to the Securities and Exchange Commission. JSG Funding plc Summary Group Profit and Loss Account 3 Months to 3 Months to 12 Months to 12 Months to Dec 31 2004 Dec 31 2003 Dec 31 2004 Dec 31 2003 EUR 000 EUR 000 EUR 000 EUR 000 ---------------------------------------------------------------------- Turnover Continuing operations 1,071,896 1,054,257 4,293,540 4,159,166 Discontinued operations 120,680 119,492 511,542 587,149 ---------------------------------------------------------------------- 1,192,576 1,173,749 4,805,082 4,746,315 Cost of sales 861,489 848,568 3,473,299 3,419,820 ---------------------------------------------------------------------- Gross profit 331,087 325,181 1,331,783 1,326,495 Net operating expenses 235,513 242,962 1,010,564 982,345 Reorganization and restructuring costs 30,750 26,496 39,430 35,006 ---------------------------------------------------------------------- Operating profit subsidiaries Continuing operations 52,489 47,638 224,062 261,228 Discontinued operations 12,335 8,085 57,727 47,916 ---------------------------------------------------------------------- 64,824 55,723 281,789 309,144 Share of associates' operating profit 3,571 2,624 12,611 12,155 ---------------------------------------------------------------------- Total operating profit 68,395 58,347 294,400 321,299 ---------------------------------------------------------------------- ------------------------------------------------------------------- Profit on sale of assets and operations 7,101 - 22,173 5,560 ---------------------------------------------------------------------- Interest income 3,211 3,653 8,335 11,631 Interest expense (80,785) (76,509) (299,338) (309,368) Share of associates' net interest (331) (338) (1,301) (2,062) ---------------------------------------------------------------------- Total net interest (77,905) (73,194) (292,304) (299,799) ---------------------------------------------------------------------- ------------------------------------------------------------------- Other financial expense (4,008) (4,063) (15,718) (15,266) ---------------------------------------------------------------------- (Loss) / profit before taxation (6,417) (18,910) 8,551 11,794 Taxation Group (2,697) 7,654 24,375 59,287 Share of associates 878 1,250 2,598 3,067 ---------------------------------------------------------------------- (1,819) 8,904 26,973 62,354 ---------------------------------------------------------------------- (Loss) after taxation (4,598) (27,814) (18,422) (50,560) Equity minority interests 4,952 3,715 16,067 16,768 ---------------------------------------------------------------------- Net loss EUR (9,550) EUR EUR (34,489) EUR (67,328) (31,529) ----------------------------------------------------------------------
Companies (Amendment) Act, 1986 The financial statements in this report do not comprise
'full group accounts' within the meaning of Regulation 40(1) of the European
Communities (Companies: Group Accounts) Regulations, 1992 of Ireland insofar
as such group accounts would have to comply with all of the disclosure and
other requirements of those Regulations. Full group accounts for JSG Funding
for the year ended December 31, 2003 have received an unqualified audit
report and have been filed with the Irish Registrar of Companies. JSG Funding plc Segmental Analyses Sales - third party 3 Months to 3 Months to 12 Months to 12 Months to Dec 31 2004 Dec 31 2003 Dec 31 2004 Dec 31 2003 EUR 000 EUR 000 EUR 000 EUR 000 ---------------------------------------------------------------------- Packaging 772,787 762,846 3,094,045 2,968,784 Specialties 237,012 236,962 1,008,477 991,874 ---------------------------------------------------------------------- Europe 1,009,799 999,808 4,102,522 3,960,658 United States and Canada - - - 104,355 Latin America 182,777 173,941 702,560 681,302 ---------------------------------------------------------------------- EUR EUR EUR EUR 1,192,576 1,173,749 4,805,082 4,746,315 ---------------------------------------------------------------------- Share of associates' third party sales EUR 23,460 EUR 22,704 EUR 81,213 EUR 80,074 ---------------------------------------------------------------------- Profit before taxation 3 Months to 3 Months to 12 Months to 12 Months to Dec 31 2004 Dec 31 2003 Dec 31 2004 Dec 31 2003 EUR 000 EUR 000 EUR 000 EUR 000 ---------------------------------------------------------------------- Packaging 51,784 53,916 155,562 213,918 Specialties 22,007 14,693 96,777 88,020 Associates 3,007 2,206 10,064 9,447 ---------------------------------------------------------------------- Europe 76,798 70,815 262,403 311,385 ---------------------------------------------------------------------- Packaging - - - 7,775 ---------------------------------------------------------------------- United States and Canada - - - 7,775 ---------------------------------------------------------------------- Packaging 28,487 24,429 116,359 86,180 Associates 564 418 2,547 506 ---------------------------------------------------------------------- Latin America 29,051 24,847 118,906 86,686 ---------------------------------------------------------------------- Asia (Associates) - - - 2,202 ---------------------------------------------------------------------- Center costs (3,538) (3,231) (25,272) (22,461) ---------------------------------------------------------------------- Profit before goodwill amortization, interest, and exceptional items 102,311 92,431 356,037 385,587 Goodwill amortization (7,174) (11,651) (37,925) (44,548) Group net interest (77,574) (72,856) (291,003) (297,737) Share of associates' net interest (331) (338) (1,301) (2,062) ---------------------------------------------------------------------- Profit before exceptional items 17,232 7,586 25,808 41,240 Reorganization and restructuring costs (30,750) (26,496) (39,430) (35,006) Profit on the sale of assets and operations 7,101 - 22,173 5,560 ---------------------------------------------------------------------- (Loss) / profit EUR (6,417)EUR (18,910) EUR 8,551 EUR 11,794 before taxation ----------------------------------------------------------------------
JSG Funding plc Summary Group Balance Sheet Dec 31 2004 Dec 31 2003 EUR 000 EUR 000 ---------------------------------------------------------------------- Assets Employed Fixed Assets Intangible assets 1,455,130 1,455,133 Tangible assets 2,334,858 2,435,946 Financial assets 81,895 80,642 ---------------------------------------------------------------------- 3,871,883 3,971,721 ---------------------------------------------------------------------- Current Assets Stocks 452,166 477,432 Debtors 925,048 911,443 Amounts due by affiliates 395 - Amounts due by affiliates after more than one year 270,552 277,264 Cash at bank and in hand 248,033 179,067 ---------------------------------------------------------------------- 1,896,194 1,845,206 Creditors (amounts falling due within one year) 1,169,672 1,178,457 ---------------------------------------------------------------------- Net current assets 726,522 666,749 ---------------------------------------------------------------------- EUR EUR Total assets less current liabilities 4,598,405 4,638,470 ---------------------------------------------------------------------- Financed by Creditors (amounts falling due after more than one year) 2,967,212 3,024,052 Government grants 14,260 15,155 Provisions for liabilities and charges 221,403 234,952 Pension liabilities (net of deferred tax) 411,237 355,309 ---------------------------------------------------------------------- 3,614,112 3,629,468 ---------------------------------------------------------------------- Capital and Reserves Called up share capital 40 40 Other reserves 946,002 930,780 Profit and loss account (76,941) (35,464) ---------------------------------------------------------------------- Group shareholders' funds (equity interests) 869,101 895,356 Minority interests (equity interests) 115,192 113,646 ---------------------------------------------------------------------- 984,293 1,009,002 ---------------------------------------------------------------------- EUR EUR 4,598,405 4,638,470 ----------------------------------------------------------------------
JSG Funding plc Statement of Total Recognized Gains and Losses 12 Months to 12 Months to Dec 31 2004 Dec 31 2003 EUR 000 EUR 000 ---------------------------------------------------------------------- (Loss) / profit for the year - Group (38,433) (71,927) - Associates 3,944 4,599 ---------------------------------------------------------------------- (34,489) (67,328) ---------------------------------------------------------------------- Translation adjustments on foreign currency net investments - Group 15,222 58,982 ---------------------------------------------------------------------- Actuarial (loss) / gain recognized in retirement benefits schemes (6,988) 25,603 ---------------------------------------------------------------------- Total recognized gains and losses relating to the year - Group (30,199) 12,658 - Associates 3,944 4,599 ---------------------------------------------------------------------- EUR (26,255) EUR 17,257 ---------------------------------------------------------------------- Reconciliation of Movements in Shareholders' Funds 12 Months to 12 Months to Dec 31 2004 Dec 31 2003 EUR 000 EUR 000 ---------------------------------------------------------------------- At beginning of year 895,356 878,099 (Loss) for the year (34,489) (67,328) Actuarial (loss) / gain recognized in retirement benefit schemes (6,988) 25,603 Translation adjustments on foreign currency net investments 15,222 58,982 ---------------------------------------------------------------------- At end of year EUR 869,101 EUR 895,356 ---------------------------------------------------------------------- Reconciliation of Net Loss to EBITDA, before Exceptional Items 3 months to 3 months to 12 months to 12 months to Dec 31 2004 Dec 31 2003 Dec 31 2004 Dec 31 2003 EUR 000 EUR 000 EUR 000 EUR 000 ---------------------------------------------------------------------- Net loss (9,550) (31,529) (34,489) (67,328) Equity minority interests 4,952 3,715 16,067 16,768 Taxation (1,819) 8,904 26,973 62,354 Share of associates' operating profit (3,571) (2,624) (12,611) (12,155) Profit on sale of assets and operations (7,101) - (22,173) (5,560) Reorganization and restructuring costs 30,750 26,496 39,430 35,006 Total net interest 77,905 73,194 292,304 299,799 Depreciation, depletion and amortization 68,141 72,612 300,540 298,014 ---------------------------------------------------------------------- EBITDA before exceptional items EUR 159,707 EUR 150,768 EUR 606,041 EUR 626,898 ---------------------------------------------------------------------- |
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