diapositive 1 - sequana · 8 2007 half-year results - 13 september 2007 sequana: consolidated...

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2007 Half-Year Results

13 September 2007

2007 Half-Year Results - 13 September 20072

Contents

1. Introduction

2. Interim financial results

3. Results by businesses

4. Strategy and Outlook

3 2007 Half-Year Results - 13 September 2007

First semester 2007 summary

Results in progress despite a difficult environment

Implementation of the strategy announced : strengthen sectors in which we are leaders


First-half 2007: Highlights

After focusing on the paper sector, Sequana Capital implements its new strategy

► Progress in our efforts to increase operational efficiency:

● Turnaround of Antalis UK and Antalis Promotional Products● Closure of the Arjowiggins plant in Nivelles, Belgium by year-end 2007

(carbonless paper)● Start-up of Arjowiggins production sites in the Czech Republic

for medical and carbonless paper

► Grow in the sectors where we are leaders; exit markets where we are not competitive

● Acquisition of MAP Merchant Group, Europe's fourth largest distributor of communication products

● Acquisition of Dalum Papir (recycled coated graphic paper)● Finalisation of the disposal of Canson and Canson Inc (US)


First-half 2007: Highlights

Two other key events also marked the group in the first half of 2007:

► Change in Sequana Capital's shareholding structure:

● DLMD, in which Pascal Lebard has a controlling interest, purchased a 22% stake in Sequana Capital from IFIL, reducing its stake to 27%

● IFIL and DLMD will take concerted action as part of a three-year shareholder pact

► Final settlement of DG4 dispute

● In compliance with the 26 April 2007 ruling, Sequana Capital must pay an additional €62m on top of the €92m fine already paid, which will have a positive impact on 2007 net income of €52.5m (including €10m in interest) through the write-back of provisions. The payment was made on 12 September 2007.


Contents

1. Introduction





Sequana: Simplified Consolidated Income Statement

The overall operating performance increased slightly compared to the year-earlier period

IFRS (€m) 30/06/2007 30/06/2006 % chg

Consolidated net sales 2 068,1 2 011,1 +2,8%Consolidated EBITDA 92,4 92,5 (0,1%)Current operating income (EBIT) 50,8 49,2 +3,3%Net financial income (expense) (10,0) (9,7) +3,1%Current taxes (16,2) (16,0) +1,3%Minority interests and other 0,4 0,5 (20,0%)Current net income 25,0 24,0 +4,2%Non-recurring income (expense) 70,8 45,6 +55,3%Discontinued operations 37,0Consolidated net income 95,8 106,5 (10,0%)


Sequana: Consolidated Balance Sheet vs 30 June 2006

IFRS (€m) 30/06/2007 30/06/2006

Goodwill 775,6 809,4Equity investments 739,8 816,8Investments 244,4 858,5

Operating WCR 693,4 673,6Non-operating WCR (203,0) (226,3)

Other assets 5,2 2,5

Total Assets 2 255,4 2 934,5

Shareholders' equity 1 331,2 1 907,2

DG4 provision 154,1 202,8Fox River provision 114,2 127,8Pension fund provision 73,4 149,9Restructuring provision 75,8 8,0Other provisions 51,9 67,6

Net debt 454,8 471,2

Total Liabilities 2 255,4 2 934,5

A persistently solid balance sheet

► Exit from SGS

► Slight increase in WCR:Mainly for Antalis (cash payments to suppliers), which was offset by Arjowiggins' strong H2 2006 performance

► Significant decline in pension fund provisions due to changes in the discount rate (higher interest rates) and WTPS payments (UK pension fund)

► Increase in the restructuring provision (already reported at 31/12/06, no new provision in H1 2007)


Holding company cash flow statement

Non-recurring items have a negative impact on the holding company's net cash position:

► Payment of €21m in corporate taxes in 2006

► Payment of expenses and carrying fees on SGS share exchange offer

► Exit tax payment

► Dividend payment

IFRS (€m) H1 2007

Net cash position at 31 December 2006 149Péchel dividend 3

Investment and operating expenses (7)

Taxes and other (16)

Current cash flow (20)

Taxes and expenses on share exchange offer (32)

SGS disposal 4

Exit tax (19)

Other (3)

Non-recurring cash flow (50)

Dividends paid (29)

Net cash (debt 30/06/2007 50

Net cash of operating subsidiaries (505)

Consolidated net cash (455)


Consolidated cash flow statement

Slight increase in consolidated debt:

► Most of the negative change in Group WCR is due to Antalis' cash payments to suppliers in exchange for discounts

► Taxes paid reflect taxes on the SGS share exchange offer and exit tax, in addition to regular corporate taxes

► Net acquisitions and disposals mainly reflect the remaining proceeds on the disposal of Canson and Antalis’ property assets, net of small acquisitions in packaging

IFRS (€m) H1 2007

Opening net cash (378)

EBITDA 93

Change in "operating" WCR (55)

Investments (49)

Taxes and financing costs (71)

Acquisitions and disposals 53

Other movements (19)

Dividends paid (29)

Closing net cash (455)


Contents

1. Introduction





Sequana Capital: Estimated pro-forma impact of acquisitions on H1 2007 sales

Breakdown of H1 sales: Antalis including MAP Breakdown of H1 sales: Arjowiggins including Dalum

Map38%

Total: €1,906m

Dalum 5%

Total: €1,045m

H1 2007 sales of Sequana Capital, including acquisitions €2,951m (up 47% compared to H1 2006)

Note: The H1 results of the newly acquired companies have not been consolidated in the figures below


Arjowiggins and Antalis join forces in Asia

50/50shareholding

Image Paper Asia: €100m in sales, 400 employees, 20 000 customers


Results by businesses


Arjowiggins: Market trends and environment

A general improvement in our markets

► In H1 2007, commodity prices continued to rise sharply in euro terms, with pulp and other commodities up an average of 6%/t and 3.5%/t, respectively, compared to H1 2006. Energy costs remain high, but declined 5.7%/t on average thanks notably to the return to regulated rates in France

► Despite cost-cutting efforts, the net impact of higher prices was €23/t in H1 2007 compared to the year-earlier period, or a total impact of €18m

► Demand for our products remained strong throughout the first half in all regions. Growth by region is broken down as follows compared to H1 2006:● +4.5% in EMEA (€)● +5.6% in North and South America ($)● +6.4% in the Asia Pacific region ($)

Note: The average €/$ exchange rate for Arjowiggins was $1.33 in H1 2007 vs $1.23 in H1 2006 (+8.1%). As a result, growth was much weaker in euro terms.


Arjowiggins: Key figures from the financial statements

Comments on H1 2007 results

___________________________1. Figures restated for Canson

Sales increased 2.2% in euro terms (+4.4% using a constant exchange rate) thanks to the combination of positive price and volume effects

Operating income increased 5.5%,buoyed by the performance of the Communication and Security & Technology segments

Net debt continued to contract to €199m from €250m at 31 December 2006

ROCE improved to 8.1% from 7.8% in 2006

IFRS (€m) 30/06/2007 30/06/2006 proforma % chg

Sales 993,0 971,7 +2,2%

EBITDA 64,2 67,5 (4,9%)Operating income 34,7 32,9 +5,5%

Margin (%) 3,5% 3,4%

Net income 55,5 30,2 +83,8%

Change in debt 50,5 38,2 +32,2%

IFRS (€m) 30/06/2007 31/12/2006 % chg

Net cash (debt) (199,3) (249,8) +20,2%

Capital employed 801,6 810,9 (1,1)%ROCE 8,1% 7,8% +0,3 pt

1


Arjowiggins: volume and prices improvement

EBIT at June2006

Volumes Price Pulp & Rawmaterials

Energy Fixed costs EBIT at June2007

32,9

+4,4

+10,8

+4,6 34,7

-22,4

+4,4


Arjowiggins: Key figures from the cash flow statement


Net debt was reduced again to €199m, bringing gearing to 49%

WCR accounted for 9.2% of sales,vs 12.3% at 30 June 2006

Restructuring charges had a negative cash impact of €5m

Co-generation contracts were restated as debt for €8.5m

Debt was reduced by nearly €60m after receiving the remaining proceeds on the disposal of Canson's processing activities and other non-strategic assets (land,

IFRS (€m) 30/06/2007 30/06/2006

Opening debt (cash) 249,8 291,0EBITDA 64,2 67,5Change in WCR (9,2) 11,0Capex (36,7) (34,8)Other current movements (7,6) (0,3)

Cash flow from operations 10,7 43,4

Tax, finance, forex and other (19,3) (10,9)Disposals (acquisitions) 59,1 5,7

Decrease (increase) in debt 50,5 38,2

Closing debt (cash) 199,3 252,8

houses, etc.)


Arjowiggins: Breakdown of H1 sales by segment

Graphic (34%) Communication (31%) Security & Technology (35%)

Coated f ine paper US

45% Coated f ine

paper Europe 47%

Coated recycled fine

paper 8%

Graphic arts 6% Luxury

packaging 11%

Corporate communication

23%

Promotion & Advertising

21%

Fine technical paper 39%

Medical & Hospital 16%

Industrial 38%

Security 46%

Segments in which Arjowiggins ranks among the Top 3 in the market


Arjowiggins: Strategic priorities

GROWTH BOOSTERS

GRAPHIC

COMMUNICATION

SECURITY & TECHNOLOGY

FAST GROWING

MARKET

INNOVATION

For our c

ustomers

SYNERGIES

Sales,T

echnologies

,

Processes

LEADERSHIP

in every

thing we do

ENVIRONMENT& GLOBALSECURITY

EFFI

CIEN

CY B

OOS T

E RS


Arjowiggins: Graphic Segment

In millions of euros (except ROCE)

Sales EBITDA Current operating income

1412

1333 333

(1)

H1 2006 H1 2007H1 2006 H1 2007H1 2006 H1 2007

Capital employed Cash flow from operating activities(1) ROCE(2)

(1)

4

318

2832.1% 1.9%

H1 2006 H1 2007 H1 2006 H1 2007H1 2006 H1 2007___________________________

1. Cash flow from operating activities: EBITDA – Capital Expenditure – Change in WCR 2. ROCE is defined as Current Operating Income/Capital Employed (year-on-year)


Graphic Segment: Focus on coated paper

A new generation of premium graphic paper► Arjowiggins research centres have developed a product

combining FSC-certified virgin pulp and a high proportion of recycled fibres, with characteristics comparable to conventional coated paper in terms of whiteness, opacity, brilliance and printability

Innovation:

Productivity: Europe: "Avenir" cost-cutting plan for coated paper calls for a 15% staff reduction by year-end 2007 with a 5% increase in volumes (in agreement with the unions)

US: Productivity gains and the 1 July 2007 price increase of $60/t will not offset the $100/t increase in pulp prices over twelve months. The impact of anti-dumping measures and the development of a "Green" product offer will not be felt before 2008.


Graphic Segment: Focus on recycled paper Acquisition of Dalum Papir

Acquisition of 100% of Dalum Papir A/S, the Danish manufacturer of premium recycled graphic paper

a fast-growing segment, up 10% a year ► Dalum Papir is the European leader in premium recycled graphic paper

● 2006 sales of €93m; 310 employees● Sales in 23 countries in Europe, Asia and North America● World-famous international brands: "Cyclus"

► Acquisition price of €63.4m ● Potential earn-out after two years, depending on the synergies generated by

Dalum Papir's current management team

► Arjowiggins already produces 100% recycled graphic paper under the "Eural" brand at its Bourray plant in France

► The acquisition took effect on 30 August 2007


Arjowiggins: Communication Segment



25

19 1215

300 306

H1 2006 H1 2007 H1 2006 H1 2007 H1 2006 H1 2007


24

4

9.1%

14.7%241

194

H1 2006 H1 2007 H1 2006 H1 2007H1 2006 H1 2007___________________________1. Cash flow from operating activities: EBITDA – Capital Expenditure – Change in WCR 2. ROCE is defined as Current Operating Income/Capital Employed (year-on-year)


Communication Segment: Focus on fine technical paper

Restructuring was tough, but is now over:► H2 2007: First impact of restructuring

► Departure of 200 employees by year-end 2007► Closure of the Nivelles plant► Start-up of paper transformation at the Czech

Bor site: 10,000 t in 2007, 40,000 t in 2008► Simplification of logistics flows

2008 and beyond:► Full-year impact of restructuring

(net cost: €16m; annual savings: €10m) ► Industry consolidation (halting of Mondi,

capacity reduction at Mitsubishi)► New applications in micro-capsule technology


Communication Segment: Focus on innovation

H1 2007: Launch of "Skin"► First success of process combinations set up in 2006:

► Artistic director with high innovation capacity► Active back-selling (pull versus push)► Distribution partnership ► Launched in February and already adopted by many of the

big luxury brands

H2 2007: expansion of green product offer► 100% FSC-certified communication paper► UK launch of "carbon neutral" Conqueror brand► A strong differentiation factor that supports our upmarket

positioning


Communication Segment: Focus on lean manufacturing

Example : Lean manufacturing at the Stoneywood plant in Scotland

A management system based on delegation and visual performance indicators. Hourly monitoring to ensure standards are respected on the factory floor.

Problem-solving loops were set up with maintenanceWork on all transition phases, start-up, changes: save time, reduce wasteMobilisation around waste reduction

Results:► Cost reductions of €3.8m compared to

2006 standards, for equivalent annual production

► Flexibility allows 20% more changes with less waste, thanks to 25 best practices

Stoneywood Paper Mill - AberdeenAverage Colour Change Time (mins)

0

5

10

15

20

25

30

35

40

45

50

PM 09 PM 02 PM 08 PM 10

Jan 07Jun 07

14% Improvement

17% Improvement

44% Improvement

39% Improvement


Communication Segment: Focus on organic growth

Start-up of the new Quzhou tracing paper plant in Q2 2007


Arjowiggins: Security & Technology Segment



339353

3031

2021

H1 2006 H1 2007H1 2006 H1 2007H1 2006 H1 2007


299

325

H1 2006 H1 2007

21

3

H1 2006 H1 2007

10.2% 9.5%

H1 2006 H1 2007

___________________________1. Cash flow from operating activities: EBITDA – Capital Expenditure – Change in WCR 2. ROCE is defined as Current Operating Income/Capital Employed (year-on-year)


Security & Technology: Focus on organic growth

The Shouguang plant produces its first decorative paper rolls


Arjowiggins – Full-year outlook

Encouraging operating prospects

► Commodity prices will continue to rise sharply in H2 with pulp prices up an estimated 5%/t, other commodities up 4%/t and energy up 1%/t in euro terms between H1 and H2 2007.

► The Graphic segment will benefit from the integration of Dalum and strong demand for "green" recycled products, although it will be hard to offset higher commodity prices in "classic" fine coated papers in Europe and the US (80% of the segment after the integration of Dalum)

► The Communication and Security & Technology segments will continue to report growth in sales and operating income, thanks notably to the first impact of restructuring at the Rives and Nivelles facilities

► These factors, combined with cutbacks in fixed costs throughout Arjowiggins, should result in a better H2 2007 performance than in H2 2006. As a result, the full-year operating results (EBITDA and EBIT) will at least be in line with the 2006 performance


Results by businesses


Antalis: Market trends and environment

Favourable volume and pricing trends

► Volumes and prices generally held up well compared to H1 2006, with strong increases in uncoated paper (photocopy and offset printing paper)

► Acquisition of Axelium in France and disposal of our Italian paper activities in accordance with our agreement with PaperlinX

► With the Paxor acquisition, we have obtained critical mass in the industrial packaging market in France

► Strong performances in Industrial Packaging and Visual Communication products


Antalis: Key figures from the financial statements (proforma)

Comments on H1 2007 resultsIFRS (€m) 30/06/2007 30/06/2006 proforma % chg

Sales 1 178,0 1 142,0 +3,2%

EBITDA 37,9 32,2 +17,7%Operating income 26,1 20,0 +30,5%

Margin (%) 2,2% 1,8%

Net income 20,1 0,0

Change in debt (34,9) 33,0

IFRS (€m) 30/06/2007 31/12/2006 % chg

Net cash (debt) (289,0) (254,0) (13,8%)

Capital employed 547,4 584,3 (6,3%)ROCE 9,8% 8,2% +1,6 pt

Sales are on the rise

Strong EBITDA growth reflects: ► improvement in the margin► impact of cash discounts from

suppliers on the income statement

► tight cost management

Restructuring plans are benefiting Antalis UK and Antalis Promotional Products


Antalis: Positive effects of volumes and cash discounts

EBIT at June2006

Volumes Prices Net Cashdiscounts

Inflation Productivity Othervariablecosts

EBIT juin2007

20,0

+6,0 +1,0

-5,4

26,2

+3,0+3,5

-1,9


Antalis: Key figures from the cash flow statement

IFRS (€m) 30/06/2007 30/06/2006

Opening debt (cash) 254,0 316,0EBITDA 37,9 32,2Change in WCR (45,9) 37,4Capex (12,4) (15,2)

Cash flow from operating activities (20,4) 54,4

Tax, finance cost (17,1) (11,6)Disposals (acquisitions) 11,8 (2,2)Other (9,1) (7,9)

Decrease (increase) in debt (34,8) 32,7

Closing debt (cash) 288,8 283,3


The change in WCR is largely due to the impact of cash discounts from suppliers(€41m€)

Capital expenditure declined due to the slowdown in computer investments

The balance on the disposal of property assets (initiated in 2006) was received in early 2007, partially offsetting the cost of acquisitions in the industrial packaging sector


Antalis: Breakdown of sales

Rest of world (10%)Europe (90%)

Western Europe excl.

France71%

Central & Eastern Europe

9%

France20%

South Africa52%

South America31%

Asia17%


Antalis: Europe Segment



15

20

1S 2006 1S 2007H1 2006 H1 2007

2631

1S 2006 1S 2007H1 2006 H1 2007

1 0561 079

1S 2006 1S 2007H1 2006 H1 2007


467445

___________________________1. Cash flow from operating activities: Current operating income + Depreciation - Investment - Change in WCR 2. ROCE is defined as Current Operating Income/Capital Employed

Including €41m in cash discounts

52

(25)1S 2006 1S 2007H1 2006 H1 2007

7,3%

8,7%

1S 2006 1S 2007H1 2006 H1 2007 H1 2006 H1 2007


Europe: Integration of Axelium in France

The integration of Axelium is proceeding as planned

► Acquisition of PaperlinX's French paper activities on 1 May 2007: sales of €112m; 175 employees

► General restructuring of logistics and sales is currently underway

► At the end of September, the restructured business will be merged with Antalis France: • increasing its presence in printing paper, office paper and visual communication

products• and boosting Antalis' leading position in this market


Europe: Successful restructuring in the UK

A plan to boost profitability at Antalis UK was launched in mid 2006 and covers the entire value-added chain

► New marketing approach: customer segmentation, pricing policy and reorganisation of sales teams

► Logistics: overhaul of warehouse locations (30% decline in storage areas)and the reorganisation of transport (optimisation of distribution routes)

► Review of product lines and optimisation of inventories

Cost-cutting plan: return on investment expected as of year-end 2007

The MAP acquisition will provide critical mass in the UK market and should help fuel ongoing improvements in profitability


Antalis: Rest of World Segment



108

116

1S 2006 1S 2007

5

6

1S 2006 1S 2007

67

1S 2006 1S 2007

Cash flow from operating activities(1) ROCE(2)Capital employed

___________________________1. Cash flow from operating activities: Current operating income + Depreciation - Investment - Change in WCR 2. ROCE is defined as Current Operating Income/Capital Employed

H1 2006 H1 2007 H1 2006 H1 2007 H1 2006 H1 2007

117102

8,9%

14,5%

1S 2006 1S 2007

3

4

1S 2006 1S 2007H1 2006 H1 2007 H1 2006 H1 2007 H1 2006 H1 2007


Rest of World: Development in fast-growing regions

Greenfield installation in Brazil

► Start-up of paper merchanting activity in H1 2007 to complement the Graphic Supplies business started in May 2006

► Operations reached breakeven at 30 June 2007

Further developments in South Africa

► The 2006 acquisition of First Graphics has paid off as a means of strengthening our Graphic Supplies business

► The takeover of the business of Kodak Nexpress in H1 2007 reinforces our presence in this strategic line of development


Antalis – MAP: The European leader in paper distribution

Leader in EuropeN°1 in 17 countries

>20%

Market share

0-5%

5-10%

10-15%

15-20%

Comments

Antalis is now number two in value terms

The leaders in each country generally have the best customer portfolios

In a market in which the main leverages are purchasing and logistics, the creation of the European leader should generate high value in the medium to long term.

Market share in Europe

23%19%

14%12%11%10% 9%

5%3% 3% 2%

12%

MAP

+An

talis

Pape

rlin

X

Papy

rus

Anta

lis

Map

Igep

a

Inap

a

Burg

o

Torr

aspa

pel

Euro

papi

er

Berb

eric

h

Oth

ers

'000 tonnes

0

500

1,000

1,500

2,000

2,500

Top 566%

Top 1083%

#1

#1

#1

#1

#5

#1 #1

#2

#3

#1

#1

#2

#2

#1

#1

#1

#3#1

#2

#2

#1

#1#1#2

#1


Antalis – MAP: Key pro forma 2006 figures

Creation of a leader in terms of growth and profitability

MAPAntalis Combined entity

2,309

693.0%

532.3%

1,446

362.5%

302.1%

3,755

1052.8%

832.2%

Sales

EBITDA Margin (%)

EBIT Margin (%)

(€m)


The MAP acquisition is proceeding as planned

The proposal was sent for approval to the European Commission in Brussels on 5 September

► A response is expected by the end of October at the latest► Some minor disposals may have to be made

Talks with banks to finance the operation are advancing smoothly► Sequana Capital will increase Antalis' share capital by at least €150m► The most probable scenario is that the remainder will be financed through

an extension of Antalis' current financing facilities:►A partially redeemable, 5-year credit facility backed by group debtors,

including some debtors from the MAP group►Given Antalis' new, stronger leverage and the tightening of lending conditions,

this credit facility will probably be considerably more costly than the €430m line currently in place.

► We do not foresee any major problems with financing,which should be obtained within the planned time frame.


Antalis – Outlook

H2 2007 is looking good

► Another strong performance for Antalis in H2 2007

► The MAP acquisition occurs at a time when the pricing environment is looking more upbeat in the paper market

► There will still be a few more cash payments to suppliers in H2, but most have already been made now that the proceeds from the sale of buildings have been reinvested.


Contents

1. Introduction





Outlook

The Group's operating income should increase significantly in 2007 compared to 2006

Depending on year-end impairment tests, the following non-recurring items will have a positive impact on net income:

► Write-back of the DG IV provision,

► Permal earn-outs,

► Further insurance reimbursements for Fox River are likely


Appendix


Sequana Capital: Breakdown of H1 2007 sales

Production Distribution

Sales: €1,179m Net consolidated sales: €2,068mSales: €993m

Breakdown of sales by segment Breakdown of sales by region

ANT - Print31%

AW - Graphic15%

ANT - Off ice13%

ANT - Other11%

AW - Security & Technology

16%

AW - Communication

14%

United States9%

Rest of World14%

Rest of Europe6%

European Union 71%


Share price performance

1 5

1 6

1 7

1 8

1 9

2 0

2 1

2 2

2 3

2 4

2 5

2 6

2 7

2 8

ja n v -0 6

fé v r -0 6

m a rs -0 6

a v r -0 6

m a i-0 6

ju in -0 6

ju il-0 6

a o û t-0 6

s e p t-0 6

o c t-0 6

n o v -0 6

d é c -0 6

ja n v -0 7

fé v r -0 7

m a rs -0 7

a v r -0 7

m a i-0 7

ju in -0 7

ju il-0 7

a o û t-0 7

s e p t-0 7

0

1 0 0 0 0 0

2 0 0 0 0 0

3 0 0 0 0 0

4 0 0 0 0 0

5 0 0 0 0 0

6 0 0 0 0 0

7 0 0 0 0 0

8 0 0 0 0 0

9 0 0 0 0 0

1 0 0 0 0 0 0

1 1 0 0 0 0 0

1 2 0 0 0 0 0

1 3 0 0 0 0 0S h a re p r ic e (€ ) V o lu m e

Dividend payout: €3.3 per share

Announcement of share

exchange offer

Offer closing

Offer opening

Market capitalisation at 12 September 2007: € 1 158,8 mShare price at 12 September 2007: € 23,57 / share

Announcement of Antalis’acquisition of MAP Merchant Group

and DLMD's purchase of a 21.9% stake in Sequana Capital

Announcement of the Dalum Papir

acquisition


Sequana Capital: Consolidated balance sheet compared to 31 December 2006

IFRS (€m) 30/06/2007 31/12/2006 % chg chg.

Arjowiggins 895,3 859,5 +4,2%Antalis 429,9 395,5 +8,7%Other 14,8 19,3 (23,3%)

Fox River deposit 81,0 85,2 (4,9%)DGIV deposit 92,1 92,1 +0,0%Other financial assets (Permal) 46,1 46,9 (1,7%)

Other assets 21,1 14,2 +48,6%Net cash position 49,7 148,5 (66,5%)

Total Assets 1 630,0 1 661,2 (1,9%)

Stockholders' equity 1 321,1 1 233,3 +7,1%

DG4 provision 154,1 205,0 (24,8%)Fox River provision 114,2 121,4 (5,9%)Other provisions 9,7 10,4 (6,7%)Other liabilities 30,9 91,1 (66,1%)

Total Liabilities 1 630,0 1 661,2 (1,9%)

Principal changes:

► Write-back of the DG IV provision for €52m

► Decline in net cash position due to: ● Dividend payment● Payment of taxes and expenses

on the SGS disposal● Current tax payment● Exit tax payment

► The decline in other liabilities is due to the same factors as the decline in net cash (provisions set aside at 31 December)


Sequana Capital: Breakdown of non-recurring items

Non-recurring items

Net income is flat in H1 2007 compared to the year-earlier year, thanks to the write-back of the DG IV provision and the disposal of non-strategic assets by our subsidiaries

Disposal of SGS and Canson

H1 2007 H1 2006

Arjowiggins non-recurring income 5,6 14,3 (60,8%)Antalis non-recurring income 10,7 (15,7) (168,2%)Legg Mason capital gain 24,7SGS capital gain 2,2DG IV provision write-back 52,1Holdings and Others non-recurring income 0,2 22,3 (99,1%)Consolidated non-recurring income 70,8 45,6 +55,3%

Discontinued operations 37,0Consolidated net income 95,8 106,5 (10,0%)

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diapositive 1 - sequana · 8 2007 half-year results - 13 september 2007 sequana: consolidated...

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