DRAKA HOLDING 
By Higher profit driven by organic growth, better product mix and cost savings
| (? million, unless stated otherwise) | Q1 2011 | Q1 2010 | % ch |
| Sales | 624 | 522 | 20 |
| Adj. EBITDA[2] | 35 | 25 | 37 |
| Adj. operating result[3] | 19 | 10 | 90 |
| Operating result | 10 | - | NMF |
| Adj. net result for the period[4] | 12 | 2 | 404 |
| Net result for the period | 1 | (5) | NMF |
| Cash flow from operating activities | (65) | (32) | 107 |
DISCLAIMER
Due to the acquisition of Draka by Prysmian certain Non-GAAP measures and definitions were revised according to Prysmian definitions. Furthermore, the accounting policies with respect to metal derivatives and employee benefits have changed. For more information reference is made to page 14 of this press release.
- Sales were up 20%, mainly due to higher copper prices (12%). Organic growth[5] amounted to 4% in Q1 2011, continuing the positive trend of H2 2010.
- Organic growth was driven by rising demand for high-end special-purpose cables and optical-fiber telecommunication cable and a modest recovery in European demand for low-voltage cable.
- Adjusted EBITDA and adjusted operating result were up by 37% and 90% respectively to ? 35 million and ? 19 million, driven by organic growth, better product mix and cost savings. All three Draka groups contributed to this improvement.
- Energy & Infrastructure more than doubled its adjusted operating result and Industry & Specialty and Communications posted growth in operating result of 56% and 36%, respectively.
- Adjusted net result for the period was ? 12 million (+404%).
- Operative net working capital[6] was ? 302 million (Q1 2010: ? 286 million), reflecting higher volumes, higher copper prices and currency-translation effects. Net financial position[7] grew by ? 13 million vs. Q1 2010 to ? 344 million.
| [1] | The figures in this press release are unaudited. |
| [2] | Defined as EBITDA before non-recurring income/ (expenses). Non recurring income/ (expenses) were ? 6 million negative in Q1 2011 compared to ? 10 million negative in Q1 2010. |
| [3] | Defined as operating result before non-recurring income/ (expenses), the fair value in metal derivatives and other fair value items. Total adjustments were ? 9 million negative in Q1 2011 compared to ? 10 million negative in Q1 2010. |
| [4] | Defined as result before non-recurring income/ (expenses), the fair value in metal derivatives and other fair value items, the effect of currency and interest rate derivatives, exchange rate differences and the related tax effects. Total adjustments amounted to ? 11 million negative in Q1 2011 compared to ? 7 million negative in Q1 2010. |
| [5] | Organic growth is defined as sales growth excluding the effects of metal price, currency translation and perimeter changes. |
| [6] | Operative net working capital includes inventories, trade accounts receivables, trade account payables and other receivables/(payables); balance of derivatives assets/(liabilities) is not included. |
| [7] | Defined as the sum of the following items: 1) Borrowings from banks and other lenders; 2) Derivatives (assets and liabilities) for financial transactions; 3) Financial receivables; 4) Bank fees on loans; 5) Available-for-sale financial assets, not instrumental to the Group's activities; 6) Financial assets held for trading; 7) Cash and cash equivalents. |
Pdf version of the press release:
http://hugin.info/130732/R/1515362/451609.pdf
Pdf versie van het persbericht:
http://hugin.info/130732/R/1515362/451607.pdf
NOTE FOR EDITORS: for more information, please contact:
Draka Holding N.V.:
Michael Bosman - Director Investor Relations +31 20 568 9805; michael.bosman@draka.com:
mailto:michael.bosman@draka.com
Cautionary note regarding forward-looking statements
This announcement contains forward-looking statements. Forward-looking statements are statements that are not based on historical fact, including statements about our beliefs and expectations. Any statement in this announcement that expresses or implies our intentions, beliefs, expectations or predictions (and the assumptions underlying them) is a forward-looking statement. Such statements are based on plans, estimates and projections as currently available to the management of Draka. Forward-looking statements therefore speak only as of the date they are made and we assume no obligation to publicly update any of them in the light of new information or future events.
Forward-looking statements involve inherent risks and uncertainties. A number of significant factors could therefore cause actual future results to differ materially from those expressed or implied in any forward-looking statement. Such factors include but are not limited to conditions on the markets in Europe, the United States and elsewhere from which we derive a substantial portion of our revenue, potential defaults on the part of borrowers or trading counterparties, the implementation of our restructuring programme including the envisaged reduction in headcount and the reliability of our risk management policies, procedures and methods. For more information on these and other factors, please refer to our annual report. The forward-looking statements contained in this announcement are made as of the date hereof and the companies assume no obligation to update any forward-looking statement contained in this announcement.
Profile
Draka Holding N.V. ('Draka') has been acquired by Prysmian Cables & Systems ('Prysmian'). Prysmian is world leader of the high-tech energy and telecom cables and systems industry. With sales of some ? 7 billion (pro-forma 2010 Prysmian/Draka) and 22,000 employees across 50 countries and 98 plants, the Prysmian Group is a truly global business. Strongly positioned in high-tech markets, Prysmian offers the widest range of products, services, technologies and know-how in all market segments: underground and submarine cables and systems for power transmission and distribution; special cables for applications in diverse industrial sectors; cables and wires for the construction industry; optical fiber, fiber optic and copper cables and connectivity systems for telecommunications and data communications.
More information on Prysmian and Draka can be found at www.Prysmian.com:
http://www.prysmian.com/ and www.Draka.com:
http://www.draka.com/.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Draka Holding NV via Thomson Reuters ONE
