OCE 
By
Rapidly deteriorating economic conditions affect Océ results;
normalized operating income Q4: ? 27.8 million
Highlights fourth quarter:
* Unprecedented economic downturn affected the printing
industry strongly
* Total revenues ? 802.0 million (-5.5% organically, excluding
fax)
* Normalized operating income ? 27.8 million (2007: ? 50.1
million)
* Free cash flow of ? 142 million (2007: ? 208 million)
* Cost reduction program 2008 delivers targeted ? 80 million
savings
* Proposed total dividend for 2008 ? 0.15 per ordinary share
(2007: ?0.64) already fully paid as interim dividend
Comments by Rokus van Iperen, Chairman of the Board of Executive
Directors:
'The acceleration of the unprecedented economic downturn has impacted
the printing industry since October and as a consequence has also
severely affected Océ's financial performance. Amidst this
turbulence, we have maintained our competitive position, thanks to
our innovative products and strong sales and service organization.
Our business model, with approximately 70% recurring revenues, and
continued vigorous cost reductions reduced the impact of the economic
downturn.
For 2009, we anticipate continuing challenging market conditions.
Within our strategy we are executing actions to support our 2009
profitability.We will expand our cost savings initiative from ? 50
million to ? 80 million in 2009 and generate additional cash flow of
? 100 million from balance sheet reductions in the area of real
estate, inventories, finance lease debtors and accounts receivable.
We will pursue our strategy including exploring of opportunities to
enter into new partnerships, enabling us to sell continuous feed and
wide format printers through third parties. With these actions we
will maintain our competitive position within the current economic
downturn.
The continuing deterioration of the economy has impacted the time
frame for achievement of our financial objectives. We remain
committed to these objectives and will set a new timeframe as soon as
the predictability of the economic developments improves.'
+-------------------------------------------------------------------+
| Summary provisional results 2008* |
|-------------------------------------------------------------------|
| Key figures | Fourth quarter | Twelve months |
|-------------+------------------------+----------------------------|
| In million | 2008 | 2007 | | 2008 | 2007 | |
| ? / as % | | | ^ | | | ^ |
|-------------+-------+-------+--------+---------+---------+--------|
| Total | 802.0 | 838.4 | -4.3% | 2,909.0 | 3,098.2 | -6.1% |
| revenues | | | | | | |
|-------------+-------+-------+--------+---------+---------+--------|
| Normalized | | | | | | |
| operating | 27.8 | 50.1 | -44.4% | 82.3 | 122.2 | -32.6% |
| income** | | | | | | |
|-------------+-------+-------+--------+---------+---------+--------|
| One-off | -11.9 | -0.3 | - | -36.3 | -1.0 | - |
| items | | | | | | |
|-------------+-------+-------+--------+---------+---------+--------|
| Operating | | | | | | |
| income | 15.9 | 49.8 | -68.0% | 46.0 | 121.2 | -62.0% |
| (EBIT) | | | | | | |
|-------------+-------+-------+--------+---------+---------+--------|
| Normalized | | | | | | |
| net | 7.5 | 36.1 | -79.2% | 28.1 | 79.6 | -64.7% |
| income** | | | | | | |
|-------------+-------+-------+--------+---------+---------+--------|
| Net income | 0.7 | 35.8 | -98.0% | 3.8 | 78.9 | -95.2% |
|-------------+-------+-------+--------+---------+---------+--------|
| Free cash | 142 | 208 | -31.7% | 19 | 191 | -90.1% |
| flow | | | | | | |
|-------------------------------------------------------------------|
| * The figures in this report are unaudited. |
| ** Adjusted for one-off items, representing continuing business. |
+-------------------------------------------------------------------+
Printing industry
The economy declined at an unprecedented pace especially since
October 2008. This resulted in a strong deterioration in, for
example, the Manufacturing and Advertising sector and continued weak
Financial Services and Construction sector. Some other market
sectors, mainly Government and Education, showed a more stable
development.
The speedy and deep deterioration in the market sectors affected
almost all segments of the digital printing industry. The demand for
general copiers/printers slowed down and replacement investments in
very high volume equipment continued to be postponed. Also
investments to enter into new applications, which transfer print
volume from analog presses to digital printers, reduced in pace.
Print volumes were under pressure in all segments except for the new
applications. The outsourcing of Document Management Services
continued to grow.
The financial performance of Océ in the fourth quarter was strongly
affected by the economic decline and the subsequent deterioration in
the market sectors. Océ maintained its competitive position through
execution of its strategy. In addition Océ's business model reduced
the impact of the deteriorating market sectors, for example through
our recurring revenue stream (representing some 70% of total revenues
and reflecting our long term customer relations) and in addition
through our well spread customer base covering various markets and
geographies.
Océ Group provisional results fourth quarter 2008
Revenues
Total revenues in the fourth quarter amounted to ? 802.0 million, a
decrease of 4.3% compared to the fourth quarter of 2007.
Excluding exchange rate effects and the non-core fax business, total
revenues decreased organically by 5.5%.
Our share of color continues to grow and now accounts for 28% of
revenues, up from 23% in the same period last year. The full color
Océ JetStream series and Océ ColorStream 10000 continuous feed
printers and in wide format the Océ ColorWave 600, Océ Arizona 200 GT
and the new Océ Arizona 350 GT continued to sell well as they provide
our customers access to new applications adding economic value to
their business. The related recurring revenue stream also increased.
Océ expects that color will continue to grow at a rapid pace and will
continue to become a much larger part of the revenue stream going
forward.
Non-recurring revenues amounted to ? 274.3 million, decreasing by
10.9%. The adverse conditions in the printing market impacted
equipment sales resulting in an organic revenue decrease of 11.2%
compared to the very strong fourth quarter of 2007 (in which
non-recurring revenues rose 14.2%).
Recurring revenues amounted to ? 527.7 million, decreasing by 0.5%.
Excluding fax, organic recurring revenues decreased 2.1%, due to
lower print volumes.
One-off items due to restructuring, impairment and divestments of
Arkwright and ODT
In 2008, in response to the economic downturn, Océ accelerated the
cost savings program in order to support profitability. The 2008
operational excellence objective was to reduce expenses by ? 80
million. Actually, ? 80 million savings and 840 job reductions have
been realized. In the fourth quarter some ? 21 million savings and
280 job reductions were realized whilst ? 17.6 million in
restructuring expenses were incurred.
In the fourth quarter Océ realized a one-off gain of ? 2.2 million
relating to the Océ Document Technologies (ODT) business which was
divested in the first quarter.
In the fourth quarter Océ impaired certain internally developed
software for the amount of ? 2.9 million and realized a one-off gain
of ? 6.4 million related to the sale of the US coating related
activities of Arkwright, divested in the third quarter.
In total, one-off items amounted to ? 11.9 million of which ? 6.3
million impacted gross margin and ? 5.6 million impacted operating
expenses.
Gross margin and operating income
Normalized gross margin, excluding one-off items, was 35.6% (2007:
39.6%1). The decline was the result of several factors. The changes
in foreign currency exchange rates caused a negative impact of ? 2.9
million leading to a decline of 0.4% point. The growth of OBS
resulted in a negative mix effect of 0.3% point (OBS operating income
is not driven by a high relative gross margin). The sale of ODT and
Arkwright accounted for a decline of 0.1% point. The remainder gross
margin decline was the result of several effects approximately evenly
spread across DDS and WFPS. In DDS the decline was caused by lower
market demand mainly resulting in under utilization of the factories
and some price pressure. In WFPS the decline was mainly caused by
incidental effects following a very large customer order, with lower
margin, which was delivered completely in the fourth quarter as well
as price actions on the Océ Arizona 250 GT inventory before
introduction of the new Océ Arizona 350 GT.
Normalized operating expenses amounted to 32.1% (2007: 33.6%). This
decrease was realized by execution of the operational excellence
program. Net capitalized R&D costs amounted to ? 6.3 million (2007: ?
9.6 million). Share based payments contributed for ? 1.1 million to
the profit & loss account (2007: ? 1.7 million).
On balance, normalized operating income amounted to ? 27.8 million
(2007: ? 50.1 million). The changes in foreign exchange rates caused
a negative impact of ? 6.9 million. Operating income amounted to ?
15.9 million (2007: ? 49.8 million).
1) In 2008 and in the comparative figures for 2007 the transportation
costs from distribution center to customer are fully included in the
gross margin.
Financial expenses and net income
Financial expenses (net) amounted to ? 18.8 million (2007: ? 11.5
million).
On balance, normalized net income was ? 7.5 million (2007: ? 36.1
million).
Free cash flow in the fourth quarter was ? 142 million (2007: ? 208
million, including ? 39 million one-off proceeds from the sale of
office buildings). Cash flow from operating activities, was ? 165
million, mainly due to ? 131 million reduction of working capital,
especially inventories and accounts payable. The cash flow from
investing activities, - ? 23 million, was lower than average in 2008
due to reduced capital expenditures as a result of the operational
excellence program.
Océ Group provisional results 2008
Total revenues decreased by 6.1%. Excluding exchange rate effects and
the non-core fax business, revenues decreased organically by 1.9%.
Non-recurring revenues decreased organically by 4.3%. Recurring
revenues decreased organically, and excluding the non-core fax
business by 0.7%.
The normalized gross margin was 38.2% (2007: 39.6%). Including
one-off items the gross margin decreased to 37.5% (2007: 39.3%).
Normalized operating expenses as a percentage of revenues amounted to
35.4% (2007: 35.7%). Including one-off items relative operating
expenses increased to 35.9% (2007: 35.4%).
Normalized operating income amounted to ? 82.3 million (2007: ? 122.2
million). Including one-off items operating income amounted to ? 46.0
million (2007: ? 121.2 million).
Normalized net income amounted to ? 28.1 million (2007: ? 79.6
million). Including one-off items net income amounted to ? 3.8
million (2007: ? 78.9 million).
Balance sheet, RoCE and cash flow
The balance sheet total was ? 2,549 million, compared to ? 2,491
million at the end of the fourth quarter of 2007. The year-on-year
increase was mainly attributable to exchange rate effects.
Lower sales, following the market deterioration, lead to an increase
in certain inventories compared to the third quarter of 2008.
Manufacturing of these products has been stopped temporarily.
The net debt/EBITDA ratio* amounted to 2.5 which is below the maximum
of 3.0 in the loan covenants. The EBITDA/net interest ratio* amounted
to 5.4 (minimum 4). Net debt amounted to ? 562 million of which ? 491
million is to be redeemed in 2011.
The pension liability in the balance sheet amounted to ? 389 million
(2007: ? 414 million). Pension expenses according to IFRS for defined
benefit schemes amounted to ? 27.3 million and will increase to ?
36.8 million in 2009. Cash contributions for defined benefit pension
schemes amounted to ? 43 million, of which ? 28.4 million in the
Netherlands. The cash contribution in the Netherlands is expected to
increase by approximately ? 3 million in 2009 due to the increase of
the employers contribution.
Net Capital Employed was ? 1,243 million, compared to ? 1,145 million
at the end of the fourth quarter of 2007. The year-on-year increase
was mainly attributable to exchange rate effects. In relation to
normalized operating income, RoCE amounted to 5.3% (2007: 7.3%).
[*] According to loan covenant definition.
Free cash flow in 2008 was ? 19 million (2007:
? 191 million). Cash flow from operating activities amounted to ? 122
million. The cash flow from investing activities amounted to - ? 103
million.
+-------------------------------------------------------------------+
| Key figures per Strategic Business Unit fourth quarter 2008 |
|-------------------------------------------------------------------|
| In million ? / as % | DDS | WFPS | OBS | Total |
|-----------------------------+---------+--------+--------+---------|
| | | | | |
|-----------------------------+---------+--------+--------+---------|
| Revenues | 453.9 | 231.9 | 116.2 | 802.0 |
|-----------------------------+---------+--------+--------+---------|
| Organic growth in | -7.0% | -6.8% | 4.1% | -5.5% |
| revenues, excl. fax | | | | |
|-----------------------------+---------+--------+--------+---------|
| Non-recurring revenues | 181.8 | 92.5 | - | 274.3 |
|-----------------------------+---------+--------+--------+---------|
| Organic growth in | -13.7% | -6.1% | - | -11.2% |
| non-recurring revenues | | | | |
|-----------------------------+---------+--------+--------+---------|
| Recurring revenues | 272.1 | 139.4 | 116.2 | 527.7 |
|-----------------------------+---------+--------+--------+---------|
| Organic growth in | | | | |
| recurring revenues, excl. | -1.8% | -7.4% | 4.1% | -2.1% |
| fax | | | | |
|-----------------------------+---------+--------+--------+---------|
| Normalized operating | 1.2 | 20.9 | 5.7 | 27.8 |
| income* | | | | |
|-----------------------------+---------+--------+--------+---------|
| One-off items | -11.5 | -0.2 | -0.2 | -11.9 |
|-----------------------------+---------+--------+--------+---------|
| Operating income | -10.3 | 20.7 | 5.5 | 15.9 |
|-------------------------------------------------------------------|
| |
| * Adjusted for one-off items, representing continuing |
| business. One-off items comprise restructuring charges, |
| impairment and effects the divestments of ODT and Arkwright |
| earlier 2008. |
+-------------------------------------------------------------------+
SBUs provisional results fourth quarter
Digital Document Systems (DDS)
Revenues in DDS amounted to ? 453.9 million. Organically and
excluding fax, revenues decreased by 7.0%. The share of color
increased to 23% of revenues (2007: 19%).
Non-recurring revenues amounted to ? 181.8 million and decreased
organically by 13.7%. As a result of the decline in the worldwide
market for transaction printing the sales of black and white
continuous feed systems decreased very strongly compared to the
fourth quarter of 2007. DDS made a promising entrance in TransPromo
and Graphic Arts by selling multiple Océ JetStream and Océ
ColorStream continuous feed color printers.
In the fourth quarter the demand for general printers/copiers slowed
down which resulted in lower sales of Office as well as production
cutsheet equipment. The alliance with Konica Minolta continued to be
successful. Sales of Océ equipment by Konica Minolta also made a
promising start.
Recurring revenues amounted to ? 272.1 million. In the fourth
quarter organic recurring revenues, excluding fax, decreased by 1.8%.
The market sector development resulted in lower print volumes except
for TransPromo and Graphic Arts. Recurring revenues from continuous
feed systems decreased due to lower transaction printing levels.
Normalized operating income amounted to ? 1.2 million (2007: ? 16.9
million). The decline was the result of lower equipment sales
especially in black and white continuous feed resulting in the
earlier mentioned gross margin effect due to under utilization of the
factory.
Wide Format Printing Systems (WFPS)
Revenues in WFPS amounted to ? 231.9 million. On an organic basis the
revenue decline was 6.8%. The share of color increased to 41% (2007:
33%).
Non-recurring revenues amounted to ? 92.5 million. The organic
decrease was 6.1%. Excluding the acquisition of Intersoft the decline
was 6.5% compared to the very strong fourth quarter of 2007 (in which
non-recurring revenues rose 22.8%). This decline was caused by lower
black and white equipment sales in Technical Document Systems
following the slow down in the Construction as well as the
Manufacturing sector. WFPS continued to ramp up the production of the
new, much demanded, Océ ColorWave 600. As announced earlier the Océ
ColorWave 600 contribution to 2008 revenues was limited.
The deteriorating Advertising market caused a slow down of the pace
of equipment sales in the Display Graphics market. In the fourth
quarter WFPS introduced the Océ Arizona 350 GT. This new model is 40%
faster than the successful Océ Arizona 250 GT and has the ability to
print white ink. The Océ Arizona 350 GT will enable customers to
address a larger part of the Display Graphics market currently
printed on analog presses.
Recurring revenues amounted to ? 139.4 million. The organic decrease
was 7.4%. Excluding the acquisition of Intersoft and the divestment
of Arkwright the decline was 5.8%, caused mainly by lower print
volumes in the Construction and the Manufacturing sector. WFPS grew
its recurring revenues in the Display Graphics segment.
Normalized operating income was ? 20.9 million (2007: ? 27.1
million). Normalized EBIT was impacted by the earlier mentioned gross
margin effects, postponed replacement of Technical Document Systems
(TDS) equipment, reduced black and white print volumes and start-up
costs of the Océ ColorWave 600.
Océ Business Services (OBS)
Revenues in OBS amounted to ? 116.2 million. Organic growth was 4.1%.
OBS shows consistent growth as the trend to outsource document
management activities continues. Revenue growth in Europe was strong
despite the economic slow down whilst the revenues in the United
States continued to be under pressure due to the slow down in
Financial Services sector and litigation services.
Normalized operating income amounted to ? 5.7 million (2007: ? 6.1
million). The operating income was impacted by start-up costs of
large new contracts.
Strategic Plan and actions
Financial objectives
The continuing deterioration of the global economy developments has
impacted the time frame of achievement of the financial objectives.
Consequently the targeted RoCE of > 13% will not be realized in 2010
because of lower than anticipated revenue growth and pressure on the
relative gross margins. Océ remains committed to its financial
objectives and will set a new time frame as soon as the
predictability of the economic developments improves.
Operational excellence
For 2009 Océ puts in place additional actions in operational
excellence, one of three main pillars of Océ's strategy. The cost
savings objective of ? 50 million is increased to ? 80 million. The
related reduction of positions in 2009 amounts to 360. The total
reduction of positions for 2008 and 2009 will increase from 950 to
1,200 positions. In addition ? 100 million cash will be generated by
Balance Sheet reductions in the area of real estate, inventories,
finance lease debtors and accounts receivable. The proceeds from
these actions will be used to reduce the net debt. The above
mentioned savings exclude volume effects and inflation.
Océ has two actions to support the gross margin. Firstly ? 40 million
savings in the cost of goods sold, which are included in
aforementioned ? 80 million savings target for 2009. Secondly Océ
will further enhance manufacturing cost flexibility. To realize this
in the Venlo supply center, the transformation from manufacturing to
a configuration and supply chain organization as well as the
outsourcing of the manufacturing of new developed products will be
continued. To increase cost flexibility the Poing supply center will
substantially reduce fixed assets and increase the level of
outsourcing.
In 2009 the Strategic Business Units will again be taking further
major steps in the other two main pillars of Océ's strategy:
distribution power and competitive products.
Digital Document Systems
DDS will strengthen its distribution power by shifting sales
resources to capture opportunities in TransPromo and Graphic Arts,
increasing sales of Océ VarioPrint 6000 through Konica Minolta and
exploring new partnerships in continuous feed.
The competitive strength of the DDS product portfolio continues to be
based on a balanced mix of the company's own products and OEM
products. DDS is further strengthening its product range by
continuing the joint development of high volume/very high volume
production cutsheet systems for both Océ and Konica Minolta. DDS will
increase the Océ ColorStream 10000 and Océ JetStream deliveries to
capture growth opportunities and expand the continuous feed color
portfolio based on own as well as partner technology.
Wide Format Printing Systems
WFPS will enhance its distribution power by shifting sales resources
from Technical Document Systems (TDS) to Display Graphics Systems
(DGS) to capture growth opportunities, increasing sales of the Océ
Arizona range through Fujifilm and exploring new partnerships in
WFPS.
To increase the competitive strength of its portfolio, WFPS will
continue to increase the Océ ColorWave 600 deliveries to meet strong
demand and in addition create new TDS and DGS printers based on the
revolutionary Océ CrystalPoint technology. WFPS will further
strengthen the strong DGS product portfolio with own Arizona
developments, additional OEM products and media.
Océ Business Services
Starting in 2008 Océ converted OBS into a separate Strategic Business
Unit to serve the market for document outsourcing with even greater
focus and energy.
OBS will improve the profitability by optimal use of synergies
through delivering multiple services to existing customers and
leverage existing services to new customers.
To increase the competitiveness of its services portfolio OBS will
continue to concentrate on the shift toward high value productized
services.
Proposed dividend for 2008: ? 0.15 per ordinary share (2007: ? 0.64)
Océ proposes to shareholders that the dividend for 2008 will be ?
0.15 per ordinary share. If this proposal is accepted, the total
dividend will be equal to the already fully paid interim dividend for
2008 of ? 0.15 per ordinary share.
April 23, 2009: General Meeting of Shareholders
The Annual General Meeting of Shareholders will be held on April 23,
2009 in Venlo. The agenda for the meeting will be published on March
23, 2009.
The annual report will be available on-line on February 4, 2009 on
our website www.investor.oce.com
Outlook
Given the economic downturn the market circumstances will remain
extremely challenging in 2009.
The strategic plan and tangible actions enable Océ to maintain or
improve its competitive position. In 2009 Océ will execute its
accelerated operational excellence program, delivering ? 80 million
in cost savings as well as ? 100 million in cash from balance sheet
reductions. In addition Océ will explore the development of
partnerships in continuous feed and WFPS and further increase the
flexibility of its manufacturing costs.
Board of Executive Directors Océ N.V.
January 12, 2009
Consolidated Income Statement
+-------------------------------------------------------------------+
| | | Fourth quarter | Twelve months |
|----+----------------------+-----------------+---------------------|
| | In million ? | 2008 | 2007 | 2008 | 2007 |
|----+--------------------------------------------------------------|
| | |
|----+--------------------------------------------------------------|
| | Total revenues | 802.0 | 838.4 | 2,909.0 | 3,098.2 |
|----+----------------------+--------+--------+----------+----------|
| | | | | | |
|----+----------------------+--------+--------+----------+----------|
| | Cost of sales | -523.1 | -517.6 | -1,818.0 | -1,881.7 |
|----+----------------------+--------+--------+----------+----------|
| | Gross margin | 278.9 | 320.8 | 1,091.0 | 1,216.5 |
|----+----------------------+--------+--------+----------+----------|
| | | | | | |
|----+----------------------+--------+--------+----------+----------|
| | Selling and | -166.0 | -160.8 | -638.4 | -667.1 |
| | marketing expenses | | | | |
|----+----------------------+--------+--------+----------+----------|
| | Research and | -63.9 | -54.4 | -228.9 | -230.1 |
| | development expenses | | | | |
|----+----------------------+--------+--------+----------+----------|
| | General and | | | | |
| | administrative | -41.7 | -55.8 | -189.2 | -198.1 |
| | expenses | | | | |
|----+----------------------+--------+--------+----------+----------|
| | Other income (net) | 8.6 | - | 11.5 | - |
|----+----------------------+--------+--------+----------+----------|
| | Operating expenses | -263.0 | -271.0 | -1,045.0 | -1,095.3 |
|----+----------------------+--------+--------+----------+----------|
| | | | | | |
|----+----------------------+--------+--------+----------+----------|
| | Operating income | 15.9 | 49.8 | 46.0 | 121.2 |
|---------------------------+--------+--------+----------+----------|
| Financial income | -3.8 | 2.6 | 5.6 | 17.3 |
|---------------------------+--------+--------+----------+----------|
| Financial expenses | -15.0 | -14.1 | -53.5 | -57.6 |
|---------------------------+--------+--------+----------+----------|
| Share in income of | 0.4 | - | 0.6 | 0.4 |
| associates | | | | |
|---------------------------+--------+--------+----------+----------|
| | | | | |
|---------------------------+--------+--------+----------+----------|
| Income before income | -2.5 | 38.3 | -1.3 | 81.3 |
| taxes | | | | |
|---------------------------+--------+--------+----------+----------|
| Income taxes | 3.2 | -2.5 | 5.1 | -2.4 |
|---------------------------+--------+--------+----------+----------|
| Net income | 0.7 | 35.8 | 3.8 | 78.9 |
|---------------------------+--------+--------+----------+----------|
| | | | | |
|---------------------------+--------+--------+----------+----------|
| Net income attributable | | | | |
| to | | | | |
|---------------------------+--------+--------+----------+----------|
| Shareholders | 0.3 | 35.3 | 2.0 | 77.1 |
|---------------------------+--------+--------+----------+----------|
| Minority interest | 0.4 | 0.5 | 1.8 | 1.8 |
|---------------------------+--------+--------+----------+----------|
| | 0.7 | 35.8 | 3.8 | 78.9 |
|---------------------------+--------+--------+----------+----------|
| | | | | |
|---------------------------+--------+--------+----------+----------|
| Free cash flow | 142.1 | 208.2 | 18.8 | 190.9 |
|---------------------------+--------+--------+----------+----------|
| | | | | |
|---------------------------+--------+--------+----------+----------|
| Average number of | | | | |
| ordinary shares | 84,813 | 84,710 | 84,786 | 84,315 |
| outstanding (x 1,000) | | | | |
|---------------------------+--------+--------+----------+----------|
| | | | | |
|---------------------------+--------+--------+----------+----------|
| Earnings per ordinary | | | | |
| share for net income | | | | |
| attributable to | | | | |
| shareholders in ? | | | | |
|---------------------------+--------+--------+----------+----------|
| Basic | - | 0.41 | -0.01 | 0.88 |
+-------------------------------------------------------------------+
+-------------------------------------------------------------------+
| Consolidated Balance Sheet | End of | End of |
| | financial | financial |
| | year 2008 | year 2007 |
|-------------------------------------------+-----------+-----------|
| In million ? | | |
|-------------------------------------------+-----------+-----------|
| | Assets | | |
|-------------+-----------------------------+-----------+-----------|
| Non-current | Intangible assets | 593 | 512 |
| assets | | | |
|-------------+-----------------------------+-----------+-----------|
| | Property, plant and | 354 | 374 |
| | equipment | | |
|-------------+-----------------------------+-----------+-----------|
| | Rental equipment | 110 | 108 |
|-------------+-----------------------------+-----------+-----------|
| | Associates | 2 | 2 |
|-------------+-----------------------------+-----------+-----------|
| | Derivative financial | 1 | 5 |
| | instruments | | |
|-------------+-----------------------------+-----------+-----------|
| | Trade and other receivables | 217 | 184 |
|-------------+-----------------------------+-----------+-----------|
| | Deferred income tax assets | 96 | 87 |
|-------------+-----------------------------+-----------+-----------|
| | Available-for-sale | 9 | 9 |
| | financial assets | | |
|-------------+-----------------------------+-----------+-----------|
| | | 1,382 | 1,281 |
|-------------+-----------------------------+-----------+-----------|
| | | | |
|-------------+-----------------------------+-----------+-----------|
| Current | Inventories | 353 | 328 |
| assets | | | |
|-------------+-----------------------------+-----------+-----------|
| | Derivative financial | 22 | 12 |
| | instruments | | |
|-------------+-----------------------------+-----------+-----------|
| | Trade and other receivables | 681 | 684 |
|-------------+-----------------------------+-----------+-----------|
| | Current income tax | 29 | 8 |
| | receivables | | |
|-------------+-----------------------------+-----------+-----------|
| | Cash and cash equivalents | 79 | 167 |
|-------------+-----------------------------+-----------+-----------|
| | | 1,164 | 1,199 |
|-------------+-----------------------------+-----------+-----------|
| | | | |
|-------------+-----------------------------+-----------+-----------|
| | Non-current assets held for | 3 | 11 |
| | sale | | |
|-------------------------------------------+-----------+-----------|
| Total | 2,549 | 2,491 |
|-------------------------------------------+-----------+-----------|
| | | |
|-------------------------------------------+-----------+-----------|
| | Equity and Liabilities | | |
|-------------+-----------------------------+-----------+-----------|
| Equity | Share capital | 54 | 54 |
|-------------+-----------------------------+-----------+-----------|
| | Share premium | 512 | 512 |
|-------------+-----------------------------+-----------+-----------|
| | Other reserves | -92 | -147 |
|-------------+-----------------------------+-----------+-----------|
| | Retained earnings | 170 | 181 |
|-------------+-----------------------------+-----------+-----------|
| | Net income attributable to | 2 | 77 |
| | shareholders | | |
|-------------+-----------------------------+-----------+-----------|
| | Equity attributable to | 646 | 677 |
| | shareholders | | |
|-------------+-----------------------------+-----------+-----------|
| | Minority interest | 35 | 36 |
|-------------+-----------------------------+-----------+-----------|
| | | 681 | 713 |
|-------------+-----------------------------+-----------+-----------|
| | | | |
|-------------+-----------------------------+-----------+-----------|
| Non-current | Borrowings | 575 | 536 |
| liabilities | | | |
|-------------+-----------------------------+-----------+-----------|
| | Derivative financial | 28 | 15 |
| | instruments | | |
|-------------+-----------------------------+-----------+-----------|
| | Retirement benefit | 389 | 414 |
| | obligations | | |
|-------------+-----------------------------+-----------+-----------|
| | Trade and other liabilities | 5 | 12 |
|-------------+-----------------------------+-----------+-----------|
| | Deferred income tax | 25 | 15 |
| | liabilities | | |
|-------------+-----------------------------+-----------+-----------|
| | Provisions for other | 42 | 49 |
| | liabilities and charges | | |
|-------------+-----------------------------+-----------+-----------|
| | | 1,064 | 1,041 |
|-------------+-----------------------------+-----------+-----------|
| | | | |
|-------------+-----------------------------+-----------+-----------|
| Current | Borrowings | 36 | 64 |
| liabilities | | | |
|-------------+-----------------------------+-----------+-----------|
| | Derivative financial | 25 | 1 |
| | instruments | | |
|-------------+-----------------------------+-----------+-----------|
| | Trade and other liabilities | 696 | 632 |
|-------------+-----------------------------+-----------+-----------|
| | Current income tax | 25 | 24 |
| | liabilities | | |
|-------------+-----------------------------+-----------+-----------|
| | Provisions for other | 22 | 16 |
| | liabilities and charges | | |
|-------------+-----------------------------+-----------+-----------|
| | | 804 | 737 |
|-------------+-----------------------------+-----------+-----------|
| | | | |
|-------------------------------------------+-----------+-----------|
| Total | 2,549 | 2,491 |
+-------------------------------------------------------------------+
+-------------------------------------------------------------------+
| Consolidated Statement of | Financial year | Financial year |
| Changes in Equity attributable | 2008 | 2007 |
| to shareholders | | |
|---------------------------------+----------------+----------------|
| In million ? | | |
|---------------------------------+----------------+----------------|
| | | |
|---------------------------------+----------------+----------------|
| Balance at December 1, 2007 / | 677 | 684 |
| 2006 | | |
|---------------------------------+----------------+----------------|
| | | |
|---------------------------------+----------------+----------------|
| Net income attributable to | 2 | 77 |
| shareholders | | |
|---------------------------------+----------------+----------------|
| Dividend | -57 | -52 |
|---------------------------------+----------------+----------------|
| Share-based compensation | 2 | 13 |
|---------------------------------+----------------+----------------|
| Purchase of treasury shares | - | - |
|---------------------------------+----------------+----------------|
| Repurchased shares | - | - |
|---------------------------------+----------------+----------------|
| Cash flow hedges | -15 | -3 |
|---------------------------------+----------------+----------------|
| Currency translation | 37 | -42 |
| differences | | |
|---------------------------------+----------------+----------------|
| | | |
|---------------------------------+----------------+----------------|
| Balance at November 30, 2008 / | 646 | 677 |
| 2007 | | |
+-------------------------------------------------------------------+
Organic growth in revenues
+-------------------------------------------------------------------+
| | Fourth quarter 2008 | Twelve months 2008 |
|-------------------+-----------------------+-----------------------|
| As percentage | excluding | including | excluding | including |
| | fax | fax | fax | fax |
|-------------------+-----------------------+-----------------------|
| | | |
|-------------------+-----------------------+-----------------------|
| Non-recurring | | | | |
| revenues | | | | |
|-------------------+-----------+-----------+-----------+-----------|
| Digital Document | -13.7 | -13,7 | -6.4 | -6.4 |
| Systems | | | | |
|-------------------+-----------+-----------+-----------+-----------|
| Océ Business | - | - | - | - |
| Services | | | | |
|-------------------+-----------+-----------+-----------+-----------|
| Wide Format | -6.1 | -6.1 | - | - |
| Printing Systems | | | | |
|-------------------+-----------+-----------+-----------+-----------|
| Total | -11.2 | -11.2 | -4.3 | -4.3 |
|-------------------+-----------+-----------+-----------+-----------|
| | | | | |
|-------------------+-----------+-----------+-----------+-----------|
| Recurring | | | | |
| revenues | | | | |
|-------------------+-----------+-----------+-----------+-----------|
| Digital Document | -1.8 | -2.9 | -1.5 | -2.7 |
| Systems | | | | |
|-------------------+-----------+-----------+-----------+-----------|
| Océ Business | 4.1 | 4.1 | 5.4 | 5.4 |
| Services | | | | |
|-------------------+-----------+-----------+-----------+-----------|
| Wide Format | -7.4 | -7.4 | -3.8 | -3.8 |
| Printing Systems | | | | |
|-------------------+-----------+-----------+-----------+-----------|
| Total | -2.1 | -2.7 | -0.7 | -1.4 |
|-------------------+-----------+-----------+-----------+-----------|
| | | | | |
|-------------------+-----------+-----------+-----------+-----------|
| Total revenues | | | | |
|-------------------+-----------+-----------+-----------+-----------|
| Digital Document | -7.0 | -7.6 | -3.3 | -4.1 |
| Systems | | | | |
|-------------------+-----------+-----------+-----------+-----------|
| Océ Business | 4.1 | 4.1 | 5.4 | 5.4 |
| Services | | | | |
|-------------------+-----------+-----------+-----------+-----------|
| Wide Format | -6.8 | -6.8 | -2.4 | -2.4 |
| Printing Systems | | | | |
|-------------------+-----------+-----------+-----------+-----------|
| Total | -5.5 | -5.8 | -1.9 | -2.3 |
+-------------------------------------------------------------------+
Consolidated Cash Flow Statement
+-------------------------------------------------------------------+
| | Twelve months | Twelve months |
| | 2008 | 2007 |
|-----------------------------------+---------------+---------------|
| In million ? | | |
|-----------------------------------+---------------+---------------|
| | | |
|-----------------------------------+---------------+---------------|
| Operating income | 46 | 121 |
|-----------------------------------+---------------+---------------|
| Adjustments for: | | |
|-----------------------------------+---------------+---------------|
| Depreciation, amortization and | 189 | 209 |
| impairment | | |
|-----------------------------------+---------------+---------------|
| Share-based compensation | -8 | 3 |
|-----------------------------------+---------------+---------------|
| Result on divestments, disposals | -13 | -16 |
|-----------------------------------+---------------+---------------|
| Other | 6 | 1 |
|-----------------------------------+---------------+---------------|
| | | |
|-----------------------------------+---------------+---------------|
| Changes in: | | |
|-----------------------------------+---------------+---------------|
| Retirement benefit obligations | -9 | -4 |
|-----------------------------------+---------------+---------------|
| Provision for other liabilities | 1 | -19 |
| and charges | | |
|-----------------------------------+---------------+---------------|
| Rental equipment | -60 | -71 |
|-----------------------------------+---------------+---------------|
| Inventories | -22 | 1 |
|-----------------------------------+---------------+---------------|
| Trade and other receivables | -15 | 7 |
|-----------------------------------+---------------+---------------|
| Trade and other liabilities | 59 | 69 |
|-----------------------------------+---------------+---------------|
| | | |
|-----------------------------------+---------------+---------------|
| Operating cash flows: | | |
|-----------------------------------+---------------+---------------|
| Interest received | 17 | 30 |
|-----------------------------------+---------------+---------------|
| Interest paid | -57 | -71 |
|-----------------------------------+---------------+---------------|
| Income taxes | -12 | 8 |
|-----------------------------------+---------------+---------------|
| Cash flow from operating | 122 | 268 |
| activities | | |
|-----------------------------------+---------------+---------------|
| | | |
|-----------------------------------+---------------+---------------|
| Expenditure in intangible assets | -64 | -49 |
|-----------------------------------+---------------+---------------|
| Expenditure in property, plant | -76 | -87 |
| and equipment | | |
|-----------------------------------+---------------+---------------|
| Divestment of intangible assets | - | - |
|-----------------------------------+---------------+---------------|
| Divestment of property, plant and | 12 | 49 |
| equipment | | |
|-----------------------------------+---------------+---------------|
| Change in other non-current | - | -4 |
| assets | | |
|-----------------------------------+---------------+---------------|
| Capital increase/decrease in | - | - |
| associates | | |
|-----------------------------------+---------------+---------------|
| Dividend from associates | - | - |
|-----------------------------------+---------------+---------------|
| Sale finance lease portfolio | 11 | 16 |
|-----------------------------------+---------------+---------------|
| Sale/acquisitions (net of cash) | 14 | -2 |
|-----------------------------------+---------------+---------------|
| Cash flow from investing | -103 | -77 |
| activities | | |
|-----------------------------------+---------------+---------------|
| | | |
|-----------------------------------+---------------+---------------|
| Free cash flow | 19 | 191 |
|-----------------------------------+---------------+---------------|
| | | |
|-----------------------------------+---------------+---------------|
| Proceeds from borrowings | 30 | 84 |
|-----------------------------------+---------------+---------------|
| Repayments of borrowings | -67 | -145 |
|-----------------------------------+---------------+---------------|
| Dividend | -57 | -51 |
|-----------------------------------+---------------+---------------|
| Change in equity related to | 1 | 11 |
| shares | | |
|-----------------------------------+---------------+---------------|
| Change in minority interest | -2 | -3 |
|-----------------------------------+---------------+---------------|
| Cash flow from financing | -95 | -104 |
| activities | | |
|-----------------------------------+---------------+---------------|
| | | |
|-----------------------------------+---------------+---------------|
| Translation differences | -12 | -5 |
|-----------------------------------+---------------+---------------|
| | | |
|-----------------------------------+---------------+---------------|
| Changes in cash and cash | -88 | 82 |
| equivalents | | |
|-----------------------------------+---------------+---------------|
| | | |
|-----------------------------------+---------------+---------------|
| Cash and cash equivalents at | 167 | 85 |
| start of financial year | | |
|-----------------------------------+---------------+---------------|
| | | |
|-----------------------------------+---------------+---------------|
| Cash and cash equivalents at end | 79 | 167 |
| of financial year | | |
+-------------------------------------------------------------------+
Océ innovative by nature Océ is a leading worldwide supplier of
professional printing and document management systems. A business
that is innovative by nature, both commercially and technologically.
Océ develops and manufactures systems for the production,
distribution and management of documents, in color and black and
white, in small format and in wide format, for users in offices,
education, industry and the graphic arts market. The product
offerings comprise printers, scanners, peripheral equipment and
printing media but also document management software and innovative
products in the areas of system integration, the outsourcing of
document management activities and the leasing of printing systems.
Océ's core product range, developed and manufactured by the company
itself, focuses on the small format and wide format and, within the
small format, on the (very) high volume segments. To supplement this,
Océ offers its customers selected systems sourced from Original
Equipment Manufacturers (OEMs), often as part of total solutions.
Océ's reputation is founded on productivity and reliability, ease of
use and a favorable 'total cost of ownership'.
Océ is commercially active in over 90 countries; in more than 30 of
these it has its own sales and service organization. In Europe, North
America and Asia, Océ also operates 9 own research and manufacturing
facilities. In 2008 Océ, which had over 23,000 employees, achieved
revenues of ? 2.9 billion.
Business model Océ is one of the few suppliers that is active in the
entire value chain of printing systems: from development via
manufacturing, sales and financing to service. Thanks to constant
feedback within the chain Océ is able to anticipate and respond
alertly to changing market requirements and new market opportunities.
Océ's policy is steered in the various sub-markets by three Strategic
Business Units: Digital Document Systems (DDS) for the small format,
Océ Business Services (OBS) for document-related services and Wide
Format Printing Systems (WFPS) for the wide format, in close
co-operation with Research & Development on the one hand, and
Marketing & Sales on the other.
DDS serves the market via Document Printing and Production Printing.
OBS serves the market geographically in Europe and the United States.
WFPS via the Technical Document Systems, Display Graphics Systems and
Imaging Supplies business groups.
A separate activity, Software & Professional Services, concentrates
on development and implementation of software in printing systems and
therefore supports all business groups.
In a number of countries in which Océ itself is not represented the
business offers part of the product range via specialized
distributors.
Via its own Research & Development Océ itself develops its basic
technologies and the majority of its product concepts. The direct
feedback of customer experience serves here as an important source of
inspiration for concrete, current and future solutions. Océ also
broadens and strengthens its innovative capacity via alliances with
strategic partners and co-operation with co-developers and with OEMs
for printing systems in the high, medium and low volume segments.
The publicly listed holding company of the Group is Océ N.V. The
issued share capital amounts to around ? 53.7 million, divided into ?
43.7 million ordinary shares and ? 10 million financing preference
shares with a nominal value of ? 0.50 each.
The ordinary shares of Océ are listed on the stock exchange in
Amsterdam (NYSE Euronext). Options to Océ shares are traded on the
Euronext Options Exchange.
Forward-looking statements
This report contains information as meant in article 5:59 jo. 5:53 of
the Dutch "Law on financial supervision" (Wet op het financieel
toezicht).
Forward-looking statements, which can form a part of this report
refer to future events and may be expressed in a variety of ways,
such as 'expects', 'projects', 'anticipates', 'intends' or other
similar words ('Forward-looking statements').
Océ N.V. ("Océ") has based these forward-looking statements on its
current expectations and projections about future events. Océ's
expectations and projections may change and Océ's actual results,
performance or achievements could be significantly different from the
results expressed in or implied by these forward-looking statements
based on various important factors, risks and uncertainties which are
neither manageable nor foreseeable by Océ and some of which are
beyond Océ's control.
When considering these forward-looking statements, one should keep in
mind these risks, uncertainties and other cautionary statements made
in this report or in Océ's other annual or periodic filings.
For a more detailed discussion of these not limited factors, risks
and uncertainties that may affect Océ's actual results, performance
or achievements, reference is made to the annual report and any other
publications made by Océ.
Given these uncertainties no certainty can be given about Océ's
future results or financial position. We advise you to be careful
with Océ's forward-looking statements, which speak only as of the
date on which the statements are made. Océ is under no obligation to
update or revise publicly any forward-looking statement, whether as a
result of new information, future events or otherwise, except as may
be required under applicable (securities) laws.
Océ enables its customers to manage their documents efficiently and
effectively by offering innovative print and document management
products and services for professional environments.
For further information:
Investor Relations:
Carlo Schaeken, Vice President
Phone + 31 77 359 2240
E-mail investor@oce.com
Press:
Jan Hol, Senior Vice President
Phone + 31 77 359 2000
E-mail jan.hol@oce.com
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
Copyright © Hugin AS 2009. All rights reserved.OCE NV : Results fourth quarter 2008
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