2001 Annual Report - Unibail-Rodamco

PROFIT AND RECURRING CASH FLOW
PROFIT AND RECURRING CASH FLOW
Consolidated statements of income (€m) 1999 2000 2001
Total Net Operating Income
from the overall property portfolio 174.2 304.6 391.3
Other operating income and expenses -9.7 -18.4 -20.7
EBITDA (Earnings before Interest, Tax,
Depreciation & Amortization) 164.5 286.2 370.6
Depreciation -52.0 -100.8 -113.4
Net financial expenses -54.6 -88.2 -127.6
Recurring profit from non-consolidated companies 0.8 0.1 0.4
PRE-TAX RECURRING PROFIT 58.7 97.3 130.1
Net capital gains/losses on sales of properties 0.3 58.9 25.6
Exceptional items 7.3 -26.6 -
Provisions for impairment of value of properties -5.3 -0.3 0.5
Goodwill amortization -0.9 -0.9 -3.9
Provisions for relocation costs -0,9 - -
Corporate income tax -1.3 -25.8 -30.9
NET PROFIT 57.9 102.6 121.4
Minority interests -8.9 -10.4 -13.4
NET PROFIT, Group share 49.0 92.3 108.0
PRE-TAX RECURRING CASH FLOW 119.2 200.7 243.5
PRE-TAX RECURRING PROFIT, Group share 49.7 85.9 115.7
PRE-TAX RECURRING CASH FLOW, Group share 104.2 178.6 220.4
AFTER-TAX RECURRING CASH FLOW, Group share 88.8 147.1 180.8
Per-share data 1999 2000 2001
Average number of shares outstanding (millions) 34.9 45.1 45.9
Earnings per share (€), Group share 1.41 2.05 2.35
% change since previous year 31.9% 45.6% 15.0%
Pre-tax recurring profit per share (€), Group share 1.42 1.90 2.52
% change since previous year 47.7% 33.7% 32.4%
Pre-tax recurring cash flow
per share (€), Group share 2.99 3.96 4.80
% change since previous year 18.7% 32.5% 21.2%
After-tax recurring cash flow
per share (€), Group share 2.55 3.26 3.94
% change since previous year - 27.8% 20.8%
Total net operating income from Unibail’s overall property
portfolio rose by 28.4% to € 391.3m in 2001, compared to
€ 304.7m in 2000.
Head office overheads and general expenses shared by all divisions
rose to € 20.7m in 2001 against € 18.4m in 2000.
The Group continued to expand its management resources in line
with the growth in its property portfolio and business activities,
mainly by reinforcing its IT facilities and its internal audit department.
Depreciation
Depreciation charges increased to € 113.4m in 2001, from € 100.8m
in 2000.
Consolidated net financial expenses
Unibail’s consolidated net financial expenses totalled € 156.8m in
2001, compared with € 135.4m in 2000.
The refinancing rate averaged 5.25% in 2001 against 5% in 2000
(see ‘Financial Resources').
Net financial expenses relating to vacant properties undergoing
construction or major refurbishment works were capitalized in the
value of these properties and amounted to € 20.7m over the 2001
full-year. These expenses mainly covered Coeur Défense up to June
2001, together with Cité du Retiro and Carré Sénart.
As a result, € 136.1m in net financial expenses were recorded as
charges in 2001, including € 8.5m allocated to the refinancing of
Unibail’s finance leasing portfolio.
2001 pre-tax recurring profit rose by 33.7% to € 130.1m,
compared with € 97.3m in 2000.
Net capital gains and exceptional items
Non-recurring income amounted to € 25.6m in 2001, compared
with € 32.3m in 2000 (58.9m-26.6m). This 2001 figure consists
solely of capital gains on disposals and breaks down as follows:
• € 25.3m in capital gains from the disposal of five major and
ten minor office property assets (see above).
• € 2.6m in proceeds from the disposal of the 'Honoré James'
catering business in the convention-exhibition division.
• Less € 2.3m in fees and charges incurred by the above
transactions and deductible from these capital gains.
Tax
The method used by Unibail to draw up its consolidated financial
statements aims to reflect its underlying tax situation at the fiscal
year-end. This is meant to keep, in future years, the discrepancy
between the theoretical tax rate and effective tax rate to an
absolute minimum, ensuring a closer correlation between tax
expense items and corresponding income items. As a result, there is
a difference between taxes actually paid and taxes booked.
Staff from the Group’s central support departments spent their first
full year in Unibail’s new headquarters at 5 boulevard Malesherbes,
while the convention-exhibition division was relocated to the Porte
de Versailles site at year-end 2001. Since S2B moved to the Cnit, the
Group’s three divisions are now interconnected by high-speed
computer links.
Overhead expenses amounted to 5.3% of total net operating
income in 2001, against 6% in 2000.
Total Net Operating Income rose to € 370.6m in 2001, up
29.5% compared to 2000.
Taxes paid
Due to the tax loss carry forwards accrued by Unibail as at January
1, 2001, only the Paris-Expo Porte de Versailles and SA Nice Etoile
subsidiaries, which are taxed on a standalone basis, are required to
make a corporate income tax payment of € 7m.
As at year-end 2001, the Group still had over € 200m in tax loss
carry forwards.
Taxes booked
€ 30.9m in tax charges were booked in the consolidated income
statement, giving an overall tax rate of 20.3%.
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