2015 ANNUAL REPORT - Bélier... · 2015 IN A NUTSHELL CHAIRMAN’S MESSAGE Chairman’s message After…
Post on 12-Sep-2018
2015 ANNUAL REPORT
2015 in a nutshell 2
Management report for theyear ended 31December 2015 on the consolidated financial statements and parent company financial statements 13
Le Blier: 2015 report on Corporate Social Responsibility (CSR) 331. Reporting scope 342. Environmental information 343. Staff-related information 374. Social information 42
Consolidated financial statements and notes for the year ended 31December 2015 453.1. Financial statements 463.2. Notes to the consolidated financial statements forthe year ended 31December2015 50
2015 ANNUAL REPORT
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2015 IN A NUTSHELLCHAIRMANS MESSAGE
After a historic year in 2014, Le Blier continued its strong growth, both in terms of activity and economic performances. A sustained level of commercial activity guarantees us promising development prospects.
In 2015, our revenue totalled 318.5 million, up 23% compared with 2014 (+18% when adjusted for LME prices(1)). These figures mark the full consolidation of the du HDPCI group, acquired in July2014, and its successful integration within Le Blier.
Our operating profit grew by nearly 40% to 33.5 million, giving a sales margin of 10.5%.
A robust financial structure enables us to remain alert for new external growth opportunities.
Buoyed by these performances, at the next General Meeting of shareholders, scheduled for 19May 2016 in Libourne, the Board of Directors will propose to raise the dividend to 0.80 per share.
We therefore approach 2016 with confidence.
As such, I would like to share the success of our enterprise with all our staff, shareholders and partners.
Philippe Galland,Chairman of the Board of Directors
(1) LME: London Metal Exchange.
In 2015, Le Blier continues itsstrong growth
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2015 IN A NUTSHELLCHIEF EXECUTIVE OFFICERS MESSAGE
Chief Executive Officers message
The objectives that we had set were largely achieved:
Our revenue topped 300 million,
Tonnage sold came close to 65,000 tonnes,
Our industrial performance improved further, this despite the costs related to the technological transformation initiated by the Group,
43 new programmes were launched,
The implementation of technological synergies with HDPCI has been a success.
As for the level of commercial activity, it enabled us to win almost 400 million of new orders during the year, including a major programme for a Japanese component manufacturer.
Le Blier continues to grow and is strengthening its presence in all the continents in which it operates, winning new market shares, especially in Asia thanks to the broadening of our positions.
Our efforts remain concentrated on the development of new products which represent 74% of our investments and the technological innovations that we make in our processes.
In 2016, we are initiating a 30 million investment programme, 28 new programme launches are scheduled and we anticipate an increase in tonnage sold. In the short term, we will closely monitor the high costs linked to our technological transformation, even though this is expected to be profitable over the medium term.
Le Blier offers good visibility for the coming years, with an economic model that affirms its performance.
Philippe Dizier,Chief Executive Officer
Objectives widely achieved!
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2015 IN A NUTSHELL
318.5 million revenue
at 31 December 2015
World leader in automotive
A GLOBAL PLAYER INTHE AUTOMOTIVE INDUSTRY
1961 19941981 1999 20042003 2006
Foundry set up in Vrac in south-west France
to manufacture parts for the railway and electrical industries
Aluminium safety parts developed for cars
Company embarks on its international expansion with the acquisition of a majority stake in a foundry
Initial public offering of Le Blier on the Second Market
of the Paris Bourse
Changes made to the companys administration with the adoption of
the conventional system of corporate governance for French limited
10.6million capital increase via a public issue
3-year plan implemented by
the new management team
GROUP PROFILE / MILESTONES
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2015 IN A NUTSHELLKEY FIGURES
2009 201320112008 2010 2012 2014
Tonnage sold topped 64,000 tonnes and revenue
passed the 300 million mark
Le Blier completes its industrial restructuring
in accordance with the 2006-2008 roadmap
Major global economic crisisSlump in worldwide automotive market
Group response involves a highly flexible organisation
12million capital increase
Le Blier outperforms its market
Record tonnage of 45,000 tonnes
50,000 tonnes sold during the year, exceeding the target of 47,000 tonnes
that had been set
Integration of HDPCI group and implementation of
Key figuresREVENUE IN M
REVENUE BY PRODUCT FAMILY IN 2015
GROUP SHARE OF NET INCOME IN M
REVENUE BY PRODUCTION REGION IN 2015
59%EUROPE (of which France 8%)
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2015 IN A NUTSHELLACTIVITY
ActivityLe Blier is a global group specialised in the manufacture of moulded aluminium safety parts for the automotive and aerospace markets.
The Group has a comprehensive offering
ranging from design of parts, toolings, from prototypes to machined parts, including
Product design and developmentThis department participates to the product design with our customers, even undertakes the entire definition through feasibility and rheology studies and calculations of mechanical resistance.
FoundryThis transformation process involves casting a liquid metal or alloy in a mould in order to reproduce a specific part, after cooling.
This activity covers a number of technologies, including:
gravity die-casting, which is Le Bliers core business and is a technique for achieving superior mechanical characteristics;
low pressure casting for lighter weight parts with superior mechanical characteristics;
sand-casting for small runs for the aerospace segment and automotive prototypes.
MachiningThis manufacturing technique produces high-precision mechanical parts.
Given the growing importance of high-tech features in the parts produced for the automotive market, machining often forms an integral part of the foundry business given the service level expected by customers.
Tool-makingThe mechanical and tool-making design department define upfront the tools needed for the mass production of parts.
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2015 IN A NUTSHELLACTIVITY
REVENUE BY ACTIVITY IN 2015
* Billing of services.
A fundamental trend in the automotive industry
The relative weight of the aluminium used in cars has risen steadily over the years.
This fundamental trend is a robust one. Aluminium is a lightweight metal that can be fully recycled, and since it meets environmental constraints and anticorrosion requirements, it is a natural choice for the automotive industry.
Aluminium has thus become the second most widely used metal after steel.
R&DLe Blier has had its own integrated R&D department since 1993 and has highly effective facilities and resources with which it develops all its products.
Le Blier also pursues research programmes prior to development, enabling it to offer the innovation that the market seeks.
Quality processThe Group and all its production sites have ISO/TS16949 certification, which is the international Quality System standard required by all carmakers.
Environmental approachLe Blier is applying a system of environmental management.
Five sites are already ISO 14001 certified, while the certification process has begun for the remaining sites.
the structure of its order book for large automotive production runs: 3 to 7 years commitments, generally linked to vehicle lifespans;
it is awarded contracts 1 to 3 years prior to the launch of series production, this being the time taken by its design department to design and develop new parts;
Le Blier operates on a carmakers given platform with several components suppliers, who each fulfil different functions.
Le Blier's business characteristics
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2015 IN A NUTSHELLHIGHLIGHTS OF THE YEAR
Highlights of the year
2015, strong growth in performanceConsolidated revenue came to 318.5 million, up 23.1% compared with 2014 (+17.9% when adjusted for LME prices).
Based on a comparable structure (excluding HDPCI, consolidated for only 5 months in 2014), revenue growth came to +13.6% (+8.4% when adjusted for LME prices) for tonnage sold of 64,000 tonnes (+13.3% vs. 2014).
Asia posted strong growth (+27.8%), while North America and Europe grew by +6.5% and +9.6% respectively.
Commercial activity remained buoyant, with the acquisition of 395 million of new orders (cumulative revenue over the life of the programmes), including a major programme worth 70 million for a Japanese component manufacturer.
Results: all ratios improveThe buoyant level of activity and enhanced industrial performance both contributed to the improvement in all the economic and financial ratios. Le Blier posted operating profitability of over 10%, i.e. the margin was up more than 1pp compared with 2014, this despite the costs relating to the technological transformation initiated by the Group and expenses linked to the launch of 43 new programmes.
EBITDA represented 15.7% of revenue (margin up +0.8pp compared with 2014);
Current operating profit increased by 36% to 34.1million, giving a margin of 10.7%;
The operating profit grew by 39% to 33.5million; Overall, net income was up 40% at 23.5million; Free cash flow came to +25.4million in 2015.
Financial position remains very strong Net borrowings financier decreased from 39.2million at 31December 2014 to 21.9million at 31December 2015, while shareholders equity increased from 91.7million to 110.6million. Gearing thus stood at 20%.
New business won in2015Commercial activity remained buoyant in 2015, with 395million of new orders won (total revenue over the life of the programmes), including a major programme worth 70 million for a Japanese component manufacturer.
Evolution 2016Le Blier benefits from favourable growth prospects given its numerous commercial successes. As such, growth in its tonnages is expected to continue to outstrip that of the global market.
In 2016, we are initiating a 30million investment programme, 28 new programmes are scheduled to be launched and we expect tonnages sold to increase. In the short term, we will continue to closely monitor the high costs linked to our technological transformation, even though this is profitable in the medium term.
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2015 IN A NUTSHELL
BRAKING SYSTEMS ENGINE BOOSTING SYSTEMS
OUTLOOK / PRODUCTS
OutlookStrategyLe Bliers strategic plan is highly appreciated by its main customers. It involves:
helping our customers to improve their competiveness (costs, weight, CO2); enhancing the added value offered by our products; maintaining a global presence in the three biggest car-making continents America, Europe and Asia; focusing on innovation by being proactive with our customers, so as to preserve our market leadership.
Thanks to this strategy and its economic model, which has proved its effectiveness since several years, Le Blier has everything it needs to ensure its profitable development in the coming years.
In addition to pursuing further market share gains in its reference market, i.e. the automotive sector, Le Blier aims to expand in the Aerospace sector.
Tomorrows economic challengesProduce lighter components worldwide at a lower cost, for automotive and aerospace markets.
Le Blier focuses on three, highly technical product families:
engine boosting systems and
Le Blier is the undisputed world leader in the production of aluminium foundry parts for braking systems (master cylinders and callipers) with a market share estimated at more than 40% worldwide. In this area, the Group is the only player with a presence in the three main car-making continents, making it a preferred provider in response to its customers globalisation aims.
The Group has also had a strong presence in engine boosting systems since 1999 and is successfully pursuing its development in chassis/structure parts.
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2015 IN A NUTSHELLCUSTOMERS
The Groups main customers
CustomersLe Blier has forged strong relationships over the years with a number of prestigious customers all over the world. The Group makes a special effort to work with its customers upstream of their projects in order to offer them unique parts that perfectly meet their requirements, thereby further strengthening these very close links and the unwavering mutual trust.
Le Blier supplies most of its production to global component suppliers (90% of revenue) and carmakers.
Via the various component suppliers, Le Bliers parts are therefore automatically found in the vehicles produced by all global carmakers.
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2015 IN A NUTSHELLLE BLIERS WORKFORCE
Foundry and Holding
Le Bliers workforce
A global presence
Le Bliers sustainability is founded on improving our profitab ility and satisfying our external customers and our employees.
Our ambitionOur ambition is to enable the men and women who make up Le Blier to find continuous motivation in carrying out the activities for which they are responsible, to create an environment that allows everyones talents to flourish and to offer realistic career development prospects for all.
Our management is based on five values: responsibility, innovation, communication, transparency and respect for safety and environment.
Le Blier has gradually built up its international presence since 1994 so as to be closer to its main customers from a geographical perspective.
Today, Le Blier is present on the three main car-making continents via 10 productionsites: France, Hungary (2 foundries and 1
machining plant) and Serbia in Europe; Mexico (1 foundry and 1 machining plant) in the Americas; China (3 foundries) in Asia.
Each site meets the quality standards demanded by the global industry.
Total workforce at 31December 2015: 3,606WORKFORCE BY COUNTRY AT 31DECEMBER 2015 (INCLUDING TEMPORARY WORKERS)
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2015 IN A NUTSHELLSTOCK MARKET
28January 20162015 consolidated re...