ANNUAL REPORT 2011 REGISTRATION DOCUMENT - Saft

5
COMMENTS ON THE 2011 FINANCIAL YEAR
Activity and consolidated results
The reported EBITDA margin totalled €110.0 million or 17.5%
of revenue in 2011, compared to €108.4 million or 18.3%
of revenue in 2010.
Restated to exclude the impact of non-recurring up-front
royalty fee of €7.4 million, the Group EBITDA margin totaled
€102.6 million, or 16.5% of sales against an EBITDA
margin of 18.3% in 2010. This decrease is mainly due to
the impact of the launch of the lithium-ion production unit of
Jacksonville. Indeed, if we exclude from the reported data on
one hand the mentioned above non-recurring up-front royalty
fee and, secondly, the negative contribution by €9.6 million
of Jacksonville production unit, the 2011 EBITDA margin of
traditional activities of the Group amounted to €112.2 million,
a margin of 18.1% of sales against a restated comparable
margin of 18.6% in 2010.
This overall performance, in line with the initial forecast of the
Group, covers an increase by 100 basis points in the EBITDA
margin of Specialty Battery Group division and a decrease
by 120 basis points from that of the Industrial Battery Group
division following a decline in gross margin described above.
Depreciation, amortisation and impairment of non-current
assets amounted to €30.5 million in 2011, a modest
€0.4 million increase from the previous fi nancial year. Net
of depreciation of deferred grants related to the Jacksonville
facility’s, 2011 depreciation, amortisation and impairment
amounted to €29.7 million.
The reported EBIT margin totalled €80.3 million, or 12.8%
of revenue in the 2011 fi nancial year, compared to
€78.3 million, or 13.2% of revenue in 2010. As restated,
the 2011 EBIT margin amounted to 72.9 million, or 11.7% of
sales against a 2010 EBIT margin adjusted for €78.7 million
and 13.3% of sales. Excluding the impact of Jacksonville, the
EBIT margin amounted to €83.3 million against an EBIT margin
of €79.8 million on a comparable basis in 2010.
The Group’s 2011 operating profi t registered an annual
increase of 1.5%, to €79.9 million, compared to an operating
profi t of €78.7 million in the 2010 fi nancial year, the
€7.4 million upfront royalty payment recognised in income in
the fi nancial year partly offsetting the €10.4 million operating
loss recognised for the Jacksonville facility.
The net fi nancial expense for the 2011 fi nancial year was
€11.0 million, down €7.8 million on the net expense
recorded in 2010. This improvement came on the back of
i) a €1.7 million reduction in net borrowing costs and ii) a
€3.7 million foreign exchange gain in 2011, the 2010
fi nancial year having seen a net foreign exchange loss of
€2.5 million.
The tax expense on continuing operations (1) totalled
€19.6 million for the 2011 fi nancial year. This represented
an overall tax rate of 27.7%. Excluding one-off tax revenue
recorded in 2010, the overall tax rate of continuing operations
for this fi nancial year was 24.2%.
The net profi t from continuing operations for the 2011 fi nancial
year thus amounted to €51.1 million, compared to a 2010
net profi t on a comparable basis of €48.4 million. Earning
per share from continuing operations was up 4.7%, rising from
€1.93 in 2010 to €2.02 in 2011.
Restated to exclude the impact of non-recurring up-front royalty
fee of €7.4 million, net profi t from continuing operations for
2011 totaled €45.8 million, against a 2010 net profi t from
continuing operations of €48.4 million on a comparable basis.
The net profi t from discontinued activities, which encompassed
Saft’s 49% share in the net profi t (loss) of the Johnson Controls-
Saft joint venture from 1 January to 30 September 2011, the
date on which Saft disposed of this interest, and the Profi t and
Loss impact of the disposal itself, came to €23.9 million (after
tax). In 2010, this joint venture’s contribution net of tax to the
Group’s consolidated profi t amounted to (€11.8) million.
The Group’s total net profi t for the 2011 fi nancial year
thus totalled €75.0 million, compared to a net profi t of
€36.6 million for the 2010 fi nancial year. 2011 earnings per
share amounted to €2.98 versus €1.46 in 2010.
At €69.8 million, cash generated from operations decreased
€5.0 million as compared to that in 2010 fi nancial year. This
reduction was due to a €15.4 million change in working
capital and also to an expected €6.1 million increase in the
amount of tax effectively paid.
Excluding changes in working capital, the Group’s activities
generated cash fl ow of €108.9 million in 2011, a 3.3%
increase from the previous fi nancial year.
This strong cash generation together with the proceeds of the
Group’s disposal of its interest in the Johnson Controls-Saft
joint venture for €104.5 millions (US$145 million) led to a
sharp increase in the Group’s cash position. The Group’s cash
position thus stood at €267.2 million as of December 31,
2011, compared to €194.6 million from the previous year.
Although investments remained very high in 2011, at
€68.1 million, the Group’s free cash fl ow (2) in 2011 (excluding
fl ows related to discontinued activities) was broadly positive at
€23.2 million, compared to €24.3 million in 2010.
In light of these good results, and in accordance with the Group’s
dividend distribution policy, the Ordinary General Meeting on
May 11, 2012 will be asked to approve an ordinary dividend
of €0.72, an increase of 2.9%. Furthermore, in light of the
proceeds from the disposal of the interest in Johnson Controls-
Saft received by the Group in 2011, shareholders at the
aforementioned Ordinary General Meeting will be asked to
approve an extraordinary dividend of €1 per share.
(1) Namely excluding Saft Group’s 49% share in the net loss of Johnson Controls-Saft from January 1st to September 30, 2011 and excluding
the impact of transactions associated with the disposal by Saft of its 49% interest in that joint venture.
(2) Defi ned as cash generated from operations and not allocated to investing and fi nancing activities, but before equity investments and
dividend payments, and excluding fl ows related to discontinued activities.
SAFT - ANNUAL REPORT 2011 / 111