I) Condensed consolidated income statement
When analyzing the presentation of the comparative income statement it is important to take into account (i) the significant contribution from equity-accounted companies, notably Fitch Group (20%-owned by Fimalac) and Barrière (40%-owned) and (ii) the substantial non-recurring capital gains recognized in 2015.
| (in € millions) | ||||
| 2015 | 2016 | |||
| EBITDA(*) | 13.1 | 26.5 | ||
| Depreciation, amortization, provisions and other | (20.3) | (62.5) | ||
| Other non-recurring expenses, net | (113.5) | (17.0) | ||
| Net financial income/(expense) | (17.5) | 9.1 | ||
| Income tax | 10.1 | 7.2 | ||
| Share of profit of equity-accounted investees | 56.7 | 93.5 | ||
| Capital gain on sale of 30% of Fitch Group | 1,652.9 | |||
| Other income | 1.5 | 3.8 | ||
| Profit attributable to equity holders of the parent | 1,583.0 | 60.6 |
(*) EBITDA: earnings before interest, tax, depreciation, amortization and provisions.
Profit attributable to equity holders of the parent totaled €60.6 million in 2016. There were no material asset sales during the year, whereas the profit figure for 2015 included gains of (i) €1,652.9 million on the sale of 30% of Fitch Group that took place in March 2015 and (ii) €27.4 million (recorded as financial income) arising on the sale of the shares held by the Group in NextRadioTV. In addition, non-recurring expenses were recognized in 2015 for asset write-downs and contingency provisions and although there were similar non-recurring expenses in 2016 they represented a lower amount.
Fitch , which is accounted for by the equity method on a 20% basis, contributed €64.2 million to consolidated profit in 2016 (€40.1 million in 2015), reflecting a strong operating performance and the positive impact of non-recurring items. The contribution of 40%-owned Barrière , which is also accounted for by the equity method, rose sharply to €29.5 million from €16.6 million in 2015, due to non-recurring gains on sales or liquidations of non-strategic assets.
Fimalac's Digital sector, organized around Webedia, continued to expand its operations during the year, with 2016 revenue of €210.1 million coming in ahead of the target originally set in the business plan. Conversely, growth for the Group's Entertainment sector (2016 revenue contribution of €112.6 million) was hampered by lower audience numbers at live entertainment events, notably due to the terrorist attacks in France.
- Condensed consolidated balance sheet
| (in € millions) | Dec. 31, 2015 | Dec. 31, 2016 | ||
| Assets | ||||
| Goodwill, intangible assets and property and equipment | 905 | 1,594 | ||
| Equity-accounted investees | 392 | 421 | ||
| Other non-current assets | 157 | 193 | ||
| Other current assets | 192 | 339 | ||
| Cash and cash equivalents | 1,482 | 709 | ||
| 3,128 | 3,256 | |||
| Equity and liabilities | ||||
| Total equity | 2,203 | 2,040 | ||
| Long-term debt | 431 | 640 | ||
| Other non-current liabilities | 61 | 55 | ||
| Short-term debt | 258 | 253 | ||
| Other current liabilities | 175 | 268 | ||
| 3,128 | 3,256 |
The main changes in the consolidated balance sheet at December 31, 2016 compared with December 31, 2015 stemmed from the three specific transactions described below. In June 2016, the Group acquired an office building in New York for $527 million (excluding transaction fees and transfer taxes). Out of this total, $250 million was raised through borrowings and the remaining amount was financed using Fimalac's own resources. Also in June 2016, the Group purchased an office building in Levallois-Perret, France, which is currently leased to Webedia. The cost of this acquisition came to €106 million (excluding transaction fees and transfer taxes), €70 million of which was financed by borrowings and the remainder by the Group's cash. In May 2016, Fimalac bought back 6.3% of its own shares, through a simplified public offer, for approximately €172 million (excluding transaction costs), which it paid in cash. This transaction - and the payment of the 2015 dividend - accounted for some of the year-on-year decrease in total equity. As well as carrying out the above three specific transactions, in 2016 Fimalac pursued the development of its Digital sector and, to a lesser extent, its Entertainment sector.
- Recommended dividend of €2.10 per share
At its meeting held today, Fimalac's Board of Directors decided that at the Annual Shareholders' Meeting to be held on June 13, 2017 it will recommend a dividend payment of €2.10 per share for the year ended December 31, 2016, unchanged from the 2015 dividend.
IV) Cancellation of treasury stock
Also at its meeting held today, the Board decided to reduce the Company's capital (made up of 26,140,000 shares) by cancelling 1,440,000 treasury shares, representing 5.51% of the total capital. As a result of this capital reduction, the Company's share capital is now made up of 24,700,000 shares.
This type of share cancellation and consequent capital reduction is standard practice when treasury shares have been held for a certain period. Following the operation, the majority of the Group's treasury shares (excluding those held in connection with the liquidity agreement) have been cancelled because out of the 1,700,000 Fimalac shares bought back through the above-mentioned simplified public offer carried out in May 2016, 780,000 had already been cancelled on June 15, 2016.
Consequently, the Company's treasury shares now represent 0.18% of its new share capital. Groupe Marc de Lacharrière - Fimalac's majority shareholder - holds 93.62% of the Company's new capital, acting in concert principally with Marc Ledreit de Lacharrière, and the free float represents 6.20%.
Paris, April 6, 2017
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