financial analysis - ppt
TRANSCRIPT
Financial analysisThomas LEFEBVRE, Yves-Marie SALAUN, Pablo LAIZ, LonanCAROLL, Mehdi VATRI, Bastien DANIEL
Group B
Index
Company overview (I)
Context for analysis (II)
Financial structure (III)
Trend analysis (IV)
Comparative analysis (V)
Financial cash flows (VI)
Assessment of the risks (VII)
Conclusion and recommendations (VIII)
Company overview
World leading company in nuclear
energy
Activities : mining-front end, reactors and
services, back end, renewable energies
Competitors : Siemens AG, Rosatom and
Schneider Electric
Consolidated sales revenue of 9,342
billion euros in 2012
Source : Areva
Context for analysis
Over 50 % decline in share price
Japan disaster in 2011 – Negative income
3 opportunities of action plan “Active 2016” :
1. World energy demand doubled by 2050
2. Fossil fuels depletion
3. Eco-friendly energy provision
Context for analysis
In 2012, early indicators of success, + 5,3 % in sales
revenues, operating income of 119 million
Remain unattractive investment prospect
Restructuring of investments
Financial structure
• Balance sheet
Non current assets
Current assets
22107
9148
Stockholder equity
Non current liabilities
Current liabilities
5556
14107
11593
Total assets 31255 Total liabilities + SE 31255
Financial structure
Current assets
- Current liabilities
9148
11593
= Cash injected in the production cycle (2245)
- Net treasury 1615
= Working capital (4060)
+ Non current assets 22107
= Capital employed 18047
Net debt
+ Shareholders equity
12492
5556
= Invested capital 18047
• Working capital
Trend analysis
RATIOS 2010 2011 2012
Acid test 84.28% 68.30% 27.16%
Leverage 0,7558 1,0219 1,0531
Current Ratio 0,850 0,789
# years needed to repay debts 5,7 6,5 5,44
Debt ratio 20,96% 19,5% 18,71%
Total debts 7240 6093 5850
Total assets 34538 31232 31255
• Liquidity, autonomy and solvency
Trend analysis
2010 2011 2012
Revenue 9104 8872 9342
Growth of revenue - -2,55% +5,30%
ROA 2,55% -8.01% -0.32%
Net income 883 -2503 -99
• Growth and efficiency
Trend analysis
• Profitability
2010 2011 2012
Gross margin 14,06% 9,17% 9,41%
EBITDA margin 13,93% 8,77% 11,50%
EBIT 188 -1866 119
Sales 9104 8872 9342
Gross profit 1280 852 879
Comparative analysis
• Net sales revenue
Comparative analysis
• Gross margin
Comparative analysis
• Return on capital employed (ROCE)
Comparative analysis
• Return on assets (ROA)
Financial cash flows
Operating cash flow (A)
- Investing cash flow (B)
713
(1139)
= Free cash flow (426)
Financing cash flow (C) (167)
Net cash flow (A+B+C) (593)
Assessment of the risks
Risk : extent and likelihood that what is estimated to
occur will not actually occur.
• Market risk
• Liquidity risk
• Default risk
• Operating risk
• Political risk
Conclusion and
recommendations
Conclusion
• Highly
financed by
debt
• Substantial
exposure to
risk
• Promising
future figures
for 2013
Source : Areva
Conclusion and
recommendations
Recommendations
• Think about the financial model
• Reducing the cost of production
• Focus on nuclear businesses
• Find a way to generate more cash
Thank you for your attention