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News Article | February 16, 2017
Site: globenewswire.com

Bruxelles, 16 février 2017 - Telenet Group Holding SA ('Telenet' ou la 'Société') (Euronext Bruxelles: TNET) publie ses résultats consolidés (non audités) pour l'exercice se terminant le 31 décembre 2016. Les résultats sont conformes aux International Financial Reporting Standards tels qu'approuvés par l'Union européenne ('EU IFRS'). FAITS MARQUANTS · Le lancement de notre premier produit convergent tout-en-un « WIGO » fin juin 2016 est un succès, avec un peu plus de 150.000 abonnés « WIGO » au 31 décembre 2016 et une pénétration du « quad play » qui s'étend à 23% des abonnés au câble. · L'intégration de BASE est en bonne voie, avec un peu plus de 500 sites macro convertis aux dernières technologies et près de 38.000 clients MVNO migrés vers notre réseau nouvellement acquis à la fin janvier 2017, si bien que nous sommes sur les rails pour réaliser les 220,0 millions € de synergies prévus d'ici 2020. · Dans le segment mobile, nous avons enregistré au 4e trimestre 2016 une solide croissance nette du nombre d'abonnés en postpayé (+33.100) pour atteindre un peu plus de 2,1 millions d'abonnés en postpayé. Ce résultat net était grâce à l'effet d'entraînement de notre offre « WIGO », contrebalancée en partie par un recul chez BASE et une rude concurrence. · Les revenus(2) ont atteint 2.429,1 millions € en 2016, soit une hausse de 33% en glissement annuel sur une base rapportée. Pour l'ensemble de l'année 2016, nous avons atteint, sur une base remaniée, une croissance de 3% des produits, avec une solide croissance oscillant autour des 5% pour nos activités dans le secteur du câble, contrebalancée en partie par des pressions concurrentielles et réglementaires persistantes sur nos activités mobiles acquises. 621,3 millions € de produits au 4e trimestre 2016, soit une hausse, en glissement annuel, de 3% sur une base rapportée et de 2% sur une base remaniée. · Bénéfice net de 41,6 millions € en 2016, contre 175,7 millions € en 2015, soit une diminution de 76%. Le bénéfice net pour l'ensemble de l'année 2016 a été impacté par l'augmentation de l'EBITDA ajusté, comme indiqué ciaprès, ainsi que par une perte sur extinction de dette de 45,7 millions € suite à certains refinancements et une réduction de valeur de 31,0 millions d'euros sur un investissement sur dans une entité mises en equivalence. · Adjusted EBITDA(3) de 1.117,1 millions € en 2016, soit une hausse en glissement annuel de 18% et de 3% sur une base remaniée. L'Adjusted EBITDA pour 2016 et pour 2015 comprenait des bénéfices de 6,0 millions € et 7,6 millions € respectivement, liés au règlement de certaines contingences d'exploitation. La croissance de l'Adjusted EBITDA a été soutenue principalement par (i) des synergies poussées résultant de l'acquisition de BASE, (ii) une diminution des coûts d'intégration et de transformation au 4e trimestre 2016 par rapport à la même période de l'année précédente, et (iii) une maîtrise globale de nos frais généraux. Adjusted EBITDA de 269,3 millions € au 4e trimestre 2016, soit une hausse en glissement annuel de 23% et de 4% sur une base remaniée. · Les dépenses d'investissement à imputer(4) ont atteint 626,8 millions € en 2016 ; ce montant reflète (i) la comptabilisation des droits de retransmission du football belge et britannique, (ii) des investissements accrus dans le réseau dans le cadre de notre projet de mise à niveau du réseau HFC 1 GHz et du lancement de notre programme de mise à niveau du réseau mobile, et (iii) les effets de l'acquisition de BASE. Si l'on exclut les effets liés aux droits de retransmission du football, les dépenses d'investissement à imputer représentaient environ 22% des produits. · La trésorerie nette provenant des activités d'exploitation, la trésorerie nette absorbée par les activités d'investissement et la trésorerie nette provenant des activités de financement ont atteint respectivement 749,1 millions €, 1.660,2 millions € et 733,0 millions €, se soldant par un Adjusted Free Cash Flow(5) de 265,8 millions € en 2016 (4e trimestre 2016 : 99,1 millions €). Effets réglementaires négatifs et pressions structurelles sur notre segment de la téléphonie mobile auront un impact sur nos revenus en 2017. Dans ce contexte, nous anticipons une croissance stable de nos revenus sur base remaniée et une croissance de notre Adjusted EBITDA(a) à mi-chiffre en 2017 sur base remaniée à cause des synergies par rapport à l'acquisition de BASE et la maîtrise de coûts. Les dépenses d'investissement à imputer seront aux alentours de 24% de nos revenus à cause du programme de renvoullement de réseau mobile qui sera finalisé vers mi-2018. Adjusted Free Cash Flow(b) solide entre €350.0 et €375.0 million pour l'exercice 2017. · Le Conseil d'administration a approuvé un programme de rachat d'actions de 60,0 millions € pour la période de six mois prenant effet aujourd'hui. John Porter, Chief Executive Officer de Telenet, commente comme suit les résultats publiés : "2016, l'année du 20e anniversaire de notre société, fut une année passionnante au cours de laquelle nous avons jeté les bases d'une croissance saine et rentable de nos activités dans le futur. En faisant l'acquisition en février 2016 de l'opérateur mobile BASE, présent à l'échelle nationale, nous sommes passés du statut de loueur à celui de propriétaire dans le segment mobile, ce qui nous assure sur le long terme un accès à moindre coût à des infrastructures mobiles. Dans le cadre de l'acquisition, nous allons investir jusqu'à 250 millions € dans le réseau mobile ainsi acquis en vue de mettre à niveau les 2.800 sites macro existants et les équiper des dernières technologies et de déployer dans le futur 800 à 1.000 sites mobiles supplémentaires. Fin 2016, nous avions mis à niveau un peu plus de 500 sites macro et entamé le déploiement de 100 nouveaux sites. Ce faisant, notre programme d'amélioration du réseau et notre plan de migration des clients sont sur les rails pour atteindre, d'ici 2020, 220 millions € de synergies annuelles. Fin janvier 2017, nous avions déjà migré près de 38.000 clients et nous prévoyons une accélération du rythme de migration dans les deux prochains mois. En décembre 2016, nous sommes parvenus à un accord avec Altice en vue d'acquérir leurs activités câble en Belgique et au Luxembourg. Cette acquisition, qui est en attente d'approbation par les autorités de la concurrence, nous permettra d'étendre notre présence à Bruxelles tout en prenant pied dans certaines régions de Wallonie et du Luxembourg. En 2016, nous sommes restés leaders du marché sur le plan de l'innovation comme en témoigne le lancement en juin de « WIGO », notre premier forfait convergent tout-en-un pour les familles et les entreprises. « WIGO » combine le meilleur de nos packs 'triple play' et un certain nombre de cartes SIM de téléphonie mobile, dont le forfait de données peut être partagé entre plusieurs membres d'une même famille ou entreprise. Fin 2016, nous comptions un peu plus de 150.000 abonnés WIGO acquis en six mois à peine. Dans le domaine du divertissement premium, nous avons fourni des efforts substantiels pour enrichir encore nos offres en rénovant récemment notre plate-forme VOD « Play More », ce qui inclut une révision de nos canaux de télévision payante linéaire, une nouvelle interface utilisateur et des fonctions de recherche et de recommandation améliorées. En mai 2016, nous avons aussi commencé à diffuser notre première série locale exclusive « Chaussée d'Amour », suivie depuis le début par de nombreux fans et qui est maintenant disponible sur la chaîne commerciale en clair « VIER » dont nous sommes copropriétaires. Fin décembre 2016, environ 39% de nos clients en télévision premium étaient abonnés à des contenus premium supplémentaires, contre environ 36% un an auparavant, ce qui démontre qu'il reste un potentiel de croissance dans ce domaine. En dépit d'un environnement hautement concurrentiel, notre activité mobile a affiché de bonnes performances avec un afflux net de 134.600 abonnés en postpayé en 2016 et un taux de croissance extrapolé en hausse depuis le lancement de nos offres « WIGO » en juin. Par rapport à fin 2015, le nombre total de nos abonnés mobiles a diminué de 6.900 unités par suite de difficultés structurelles dans notre activité prépayée, notamment l'enregistrement obligatoire des cartes SIM d'ici juin 2017. Soucieux d'offrir une expérience client de grande qualité dans tous les domaines où nous sommes en contact avec le client, nous avons relevé la barre pour le service à la clientèle en Belgique en lançant les visites proactives à la clientèle dans le cadre du programme « Helemaal Mee Tournee ». Le but est que nos clients puissent profiter pleinement de leur mode de vie numérique et tirer le maximum de leurs produits. Fin 2016, nous avions déjà visité plus de 250.000 ménages, ce qui nous permis d'améliorer notre taux de recommandation net. En parallèle, nous continuerons à investir dans notre réseau fixe via notre programme d'investissement « Grote Netwerf » qui vise à offrir des vitesses de téléchargement d'au moins 1 Gbps dans un avenir proche. Fin 2016, nous avions mis à niveau environ 36% des dans notre réseau, si bien que nous sommes en bonne voie pour mener à bien cette mise à niveau d'ici mi-2019. La mise en liaison de nos grands réseaux fixes et mobiles permettra aux clients de profiter d'une connexion ininterrompue et de grande qualité aussi bien à la maison qu'au travail ou en déplacement. En ce qui concerne nos résultats financiers, je constate avec plaisir que nous avons dépassé nos prévisions pour 2016. Sur une base remaniée, nous avons réalisé un chiffre d'affaires en hausse de 3% sur l'année 2016, à 2.429 millions €, alors que le pronostic était de 2%. Cette progression est attribuable avant tout à une solide croissance oscillant autour de 5% pour notre activité câble grâce à une augmentation de 4% des revenus d'abonnement au câble, contrebalancée en partie par une pression constante sur l'activité mobile que nous avons acquise. Notre bénéfice net pour l'exercice 2016 a atteint 42 millions €, soit une baisse de 76% par rapport à l'exercice précédent. Ce résultat est entre autres lié à l'augmentation de l'Adjusted EBITDA ajusté et a été influencé négativement par une perte pour extinction de dette de 46 millions € suite à des refinancements volontaires en 2016 et par une réduction de valeur de 31 millions € sur un investissement dans une entité mise en équivalence. L'Adjusted EBITDA pour l'exercice 2016 a atteint 1.117 millions €, soit une hausse de 3% sur une base remaniée par rapport à l'exercice précédent, alors que nous avions prévu un chiffre stable. La croissance de l'Adjusted EBITDA a été soutenue principalement par (i) des synergies poussées suite à TELENET GROUP HOLDING NV - RESULTATS FINANCIERS 2016 4 l'acquisition de BASE, (ii) une diminution des coûts d'intégration et de transformation au 4e trimestre 2016 par rapport à la même période de l'année précédente, et (iii) une maîtrise globale de nos frais généraux. Si l'on fait abstraction de la comptabilisation des droits de retransmission du football belge et britannique, nos dépenses d'investissement à imputer représentaient environ 22% de nos produits. Ce pourcentage reflète l'impact de l'augmentation des investissements liés au réseau, comme indiqué précédemment. Enfin, la trésorerie nette provenant des activités d'exploitation, la trésorerie nette absorbée par les activités d'investissement et la trésorerie nette provenant des activités de financement ont atteint respectivement 749 millions €, 1,660 millions € et 733 millions €, se soldant par un Adjusted Free Cash Flow de 266 millions € en 2016. À la lumière de tout ce qui précède, j'ai la conviction que Telenet est bien positionnée pour l'avenir. Pour 2017, nos revenus seront impactés par des impacts réglementaires négatifs et des pressions structurelles sur notre segment de la téléphonie mobile prepaid. Ceci sera absorbé par une croissance solide dans nos activités comme la connectivité, l'entertainment et le segment B2B. Ainsi, la croissance de nos revenus sera stable en 2017 sur base remaniée. Malgré cela, nous prévoyons une croissance de l'Adjusted EBITDA(a) pour l'exercice 2017 à mi-chiffre grâce à (i) des synergies provenant de l'acquisition de BASE, principalement dans le domaine des économies liées au MVNO, (ii) une réduction des coûts d'intégration par rapport à l'année précédente et (iii) un contrôle strict des coûts avec les efforts que nous avons commencé à fournir pour resserrer la gestion de nos dépenses externes. Ce faisant, je pense que nous sommes sur les rails pour atteindre notre croissance annuelle composée (CAGR) de l'Adjusted EBITDA(a) de 5-7% sur la période 2015-2018. Du côté des investissements, nous prévoyons des dépenses d'investissement à imputer (hors droits de retransmission du football) représentant environ 24% de nos produits, un pourcentage qui s'explique par une hausse temporaire des investissements dans notre réseau mobile qui seront terminés vers mi-2018. Enfin, nous prévoyons une solide croissance de l'Adjusted Free Cash Flow(b) à 350-375 millions €, générée par une baisse des charges d'intérêt en espèces suite au refinancement de novembre 2016 et une hausse de la contribution de notre plate-forme de financement fournisseur, ceci étant en partie contrebalancé par une augmentation des impôts en espèces. Fin décembre 2016, notre ratio de dette nette s'établissait à 3,5x. Nous nous attendons à ce qu'il monte à 3,7x après l'acquisition de SFR BeLux (en attente de l'approbation des autorités). Ce ratio de dette nette pro forma tel que nous le prévoyons se situe dans les limites fixées à moyen terme par le Conseil d'administration et nous assure une flexibilité de financement suffisante pour des projets potentiels générateurs de croissance future et/ou des fusions/acquisitions créatrices de valeur conformes à notre Vision 2020, communiquée précédemment. Pour 2017, le Conseil a approuvé un programme de rachat d'actions de 60 millions € qui prend effet aujourd'hui et qui s'étendra sur une période de six mois. Ce programme sera utilisé pour couvrir les obligations de la Société dans le cadre des plans d'options sur actions en cours."


News Article | February 22, 2017
Site: www.marketwired.com

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES InterRent Real Estate Investment Trust (TSX:IIP.UN) ("InterRent" or the "REIT") today reported financial results for the fourth quarter and year ended December 31, 2016. Gross rental revenue for the year ended December 31, 2016 increased 18.7% to $99.5 million compared to $83.8 million for the prior year. Operating revenue for the year was up $14.5 million to $97.5 million, or 17.5% compared to the prior year. NOI for the twelve months ended December 31, 2016 amounted to $56.9 million or 58.3% of operating revenue compared to $48.5 million or 58.4% of operating revenue for 2015. InterRent's focus on recycling capital and growing its core markets of GTA (including Hamilton), Ottawa/NCR and Montreal has resulted in approximately 78% of InterRent's suites now being located in these core markets as compared to 69% at the end of 2015. For the stabilized portfolio, gross rental revenue for the year ended December 31, 2016 increased 4.3% to $64.2 million compared to $61.6 million for the prior year. NOI for the twelve months ended December 31, 2016 amounted to $39.2 million or 61.0% of operating revenue compared to $36.6 million or 59.9% of operating revenue for 2015. These increases were largely the result of continued strong revenue growth combined with reductions in operating costs, property taxes and utility costs as a percentage of operating revenue. In keeping with management's strategy of maximizing returns for Unitholders and focusing on clusters of buildings within geographical proximity to each other (in order to build operational efficiencies and attract focused, professional staff) properties are reviewed on a regular basis to determine if they should be kept or disposed of. "Over the last 3 years, the REIT has acquired 2,892 suites predominantly in core markets and sold 893 suites in predominantly non-core markets. We expect repositioning efforts at the properties acquired over the last three years to be strong contributors to our bottom line as the investment of time, effort and capital drive strong organic growth at the properties," said Mike McGahan, CEO. InterRent REIT is a growth-oriented real estate investment trust engaged in increasing Unitholder value and creating a growing and sustainable distribution through the acquisition and ownership of multi-residential properties. InterRent's primary objective is to use the proven industry experience of the Trustees, Management and Operational Team to: (i) provide Unitholders with stable and growing cash distributions from investments in a diversified portfolio of multi-residential properties; (ii) enhance the value of the assets and maximize long-term Unit value through the active management of such assets; and (iii) expand the asset base and increase Distributable Income through accretive acquisitions. InterRent prepares and releases unaudited quarterly and audited consolidated annual financial statements prepared in accordance with IFRS (GAAP). In this and other earnings releases, as a complement to results provided in accordance with GAAP, InterRent also discloses and discusses certain non-GAAP financial measures, including NOI, FFO, AFFO and EBITDA. These non-GAAP measures are further defined and discussed in the MD&A dated February 21, 2017, which should be read in conjunction with this press release. Since NOI, FFO, AFFO and EBITDA are not determined by GAAP, they may not be comparable to similar measures reported by other issuers. InterRent has presented such non-GAAP measures as Management believes these measures are relevant measures of the ability of InterRent to earn and distribute cash returns to Unitholders and to evaluate InterRent's performance. These non-GAAP measures should not be construed as alternatives to net income (loss) or cash flow from operating activities determined in accordance with GAAP as an indicator of InterRent's performance. The comments and highlights herein should be read in conjunction with the most recently filed annual information form as well as our consolidated financial statements and management's discussion and analysis for the same period. InterRent's publicly filed information is located at www.sedar.com. This news release contains "forward-looking statements" within the meaning applicable to Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "anticipated", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". InterRent is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. A full description of these risk factors can be found in InterRent's most recently publicly filed information located at www.sedar.com. InterRent cannot assure investors that actual results will be consistent with these forward looking statements and InterRent assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances. The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.


News Article | March 2, 2017
Site: globenewswire.com

Paris, 2nd March, 2017 - JCDecaux SA (Euronext Paris: DEC), the number one outdoor advertising company worldwide, announced today its results for the year ended 31st December, 2016. The accounts are audited and certified. Following the adoption of IFRS 11 from 1st January, 2014, the operating data presented below is adjusted to include our prorata share in companies under joint control, and therefore is comparable with historical data prior to 2014. Please refer to the paragraph "Adjusted data" on pages 4 and 5 of this release for the definition of adjusted data and reconciliation with IFRS. Commenting on the 2016 results, Jean-Charles Decaux, Chairman of the Executive Board and Co-CEO of JCDecaux, said: "2016 was for JCDecaux another year of record revenue at €3,392.8 million despite the significant slowdown in Greater China. While our free cash flow generation remains solid, our overall profitability declined due to both the integration of CEMUSA and the contract structure of the world's largest bus shelter advertising franchise with TfL in London. These two strategic decisions are paving the way to accelerate the growth of our premium digital portfolio which now represents 12.9% of our total revenue. New York City and London are now a digital showcase for JCDecaux and this will help us to gain market share in the largest and fourth largest advertising markets worldwide. 2016 was also a turning point in our organic growth strategy for Japan, the world's third largest advertising market, with the award of several Street Furniture contracts in Tokyo, where we will enjoy long-term exclusive rights for almost all the bus shelters to sell premium advertising in a city with more than 13 million people which will host the Olympic and Paralympic Games in 2020. This creates a truly national Street Furniture network in all 41 biggest Japanese cities. 2016 was finally a year of further consolidation in the fragmented OOH market in Latin America with the bolt-on acquisitions of OUTFRONT Media and Top media which creates the largest OOH platform where we are covering all Top 10 wealthiest cities in the region. In addition, JCDecaux entered into a strategic alliance in June 2016 with Caracol Televisión in Colombia, reflecting our successful business development strategy which is also based on joint-ventures with local partners. Given our solid free cash flow and an enhanced strong financial flexibility, we recommend the payment of a dividend of €0.56 per share, in line with 2015, at the Annual General Meeting which will take place on May 11th, 2017. As far as Q1 2017 is concerned, given the strong comparable in Q1 2016 and an uncertain global economic as well as political outlook, we expect our adjusted organic revenue growth to be slightly negative. In a media landscape increasingly fragmented, out-of-home advertising reinforces its attractiveness. With our well-diversified exposure to faster-growth markets, an increasing presence in the most influential cities in the world1, our growing premium digital portfolio combined with a new data-led audience targeting platform, our ability to win new contracts and the high quality of our teams across the world, we believe we are well positioned to outperform the advertising market and increase our leadership position in the outdoor advertising industry through profitable market share gains. The strength of our balance sheet is a key competitive advantage that will allow us to pursue further external growth opportunities as they arise." 1 According to Forbes 2014 ranking. In order to quantify cities' global influence, Forbes looked at eight factors: the amount of foreign direct investment they have attracted; the concentration of corporate headquarters; how many particular business niches they dominate; air connectivity (ease of travel to other global cities); strength of producer services; financial services; technology and media power; and racial diversity. As reported on 26th January, 2017, consolidated adjusted revenue increased by +5.8% to €3,392.8 million in 2016. Adjusted organic revenue growth of +3.3% was driven by France, the Rest of the World and the UK offsetting the softness of the Rest of Europe and Asia-Pacific. H2 2016 faced a significant slowdown mainly from Greater China. Street Furniture with a +5.2% organic growth was driven by an increasing digitisation of our prime locations, mainly in London and New York City. Transport posted a positive organic growth at +2.1% despite a significant slowdown in Greater China over the year. Billboard recorded a +0.9% organic growth thanks to a positive performance in France and a strong recovery in Russia. In 201­6, adjusted operating margin decreased by -7.0% to €646.5 million from €695.2 million in 2015. The adjusted operating margin as a percentage of revenue was 19.1%, -260bp below prior year. Despite the slowdown of the revenue growth between H1 and H2 2016, the decrease in operating margin was less significant during the second part of the year. Street Furniture: In 2016, adjusted operating margin decreased by -8.2% to €405.4 million. As a percentage of revenue, the adjusted operating margin decreased by -510bp to 26.6%, compared to 2015, mainly impacted by the integration of CEMUSA, requiring some operational restructuring and investments to turnaround the business, and the ramp-up of the world's largest bus shelter advertising franchise with TfL in London. Transport: In 2016, adjusted operating margin decreased by -9.7% to €182.0 million. As a percentage of revenue, the adjusted operating margin decreased by -170bp to 13.2%, compared to 2015, mainly due to the ramp-up of airports contracts in North America, the slowdown in Asia-Pacific and the impact of the Spanish airports from the integration of CEMUSA. Billboard: In 2016, adjusted operating margin increased by +13.4% to €59.1 million. As a percentage of revenue, adjusted operating margin increased by +50bp to 11.9% compared to 2015, benefitting from the good performance in France and Russia. In 2016, adjusted EBIT before impairment charge decreased by -5.4% to €351.4 million compared to €371.4 million in 2015. As a percentage of revenue, this represented a -120bp decrease to 10.4%, from 11.6% in 2015. The consumption of maintenance spare parts was slightly down in 2016 compared to 2015. Net amortisation and provisions were down compared to 2015, thanks to a reversal on provisions for onerous contracts, related to the Purchase Accounting of CEMUSA and OUTFRONT Media Latam. Other operating income and expenses negatively impacted the P&L, mainly due to the restructuring costs spent for CEMUSA and OUTFRONT Media Latam. No impairment charge on goodwill and on investments under equity method has been recorded in 2016 as in 2015. The €1.7 million reversal was related to a reversal of provisions for onerous contracts for €1.2 million and to a reversal of impairment on tangible and intangible assets for €0.5 million. Adjusted EBIT after impairment charge decreased by -1.2% to €353.1 million compared to €357.5 million in 2015. In 2016, net financial income was -€28.9 million compared to -€28.2 million, in line with 2015.    In 2016, the share of net profit from equity affiliates was €95.2 million, higher compared to 2015 (€81.4 million), mainly attributed to the better performance of Russ Outdoor in Russia and to APG|SGA in Switzerland as well as some changes in scope. In 2016, net income Group share before impairment charge decreased by -7.4% to €223.5 million compared to €241.4 million in 2015. Taking into account the impact from the impairment charge, net income Group share decreased by -3.9% to €224.7 million compared to €233.9 million in 2015. In 2016, adjusted net capex (acquisition of property, plant and equipment and intangible assets, net of disposals of assets) was at €242.3 million compared to €229.4 million in 2015, with higher growth capex due to the acceleration of the digitisation of our Street furniture assets mainly in London and in New York City. In 2016, adjusted free cash flow was €263.7 million compared to €333.4 million in 2015. This decrease, due to a lower operating margin and higher growth capex, is offset by a good management of our working capital requirements which impacted positively our Group's cash position. At the next Annual General Meeting of Shareholders on 11th May, 2017, the Supervisory Board will recommend the payment of a dividend of €0.56 per share for the 2016 financial year, in line with the previous year. Net debt as of 31st December 2016 amounted to €418.6 million compared to €400.5 million as of 31st December 2015. JCDecaux has successfully placed 7-year notes for a principal amount of €750 million, maturing on 1st June 2023. The spread has been fixed at 80 basis points above the swap rate leading to a coupon of 1.000%. Subscribed more than 3 times, this note has been placed quickly with high quality investors. The proceeds of this note will be dedicated to general corporate purposes and particularly in anticipation of the maturity of the current bond issue, in February 2018, for €500 million. Under IFRS 11, applicable from 1st January, 2014, companies under joint control are accounted for using the equity method. However in order to reflect the business reality of the Group, operating data of the companies under joint control will continue to be proportionately integrated in the operating management reports used to monitor the activity, allocate resources and measure performance. Consequently, pursuant to IFRS 8, Segment Reporting presented in the financial statements complies with the Group's internal information, and the Group's external financial communication therefore relies on this operating financial information. Financial information and comments are therefore based on "adjusted" data, consistent with historical data prior to 2014, which is reconciled with IFRS financial statements. As regards the P&L, it concerns all aggregates down to the EBIT. As regards the cash flow statement, it concerns all aggregates down to the free cash flow. In 2016, the impact of IFRS 11 on our adjusted aggregates is: The full reconciliation between IFRS figures and adjusted figures is provided on page 7 of this release. The Group's organic growth corresponds to the adjusted revenue growth excluding foreign exchange impact and perimeter effect. The reference fiscal year remains unchanged regarding the reported figures, and the organic growth is calculated by converting the revenue of the current fiscal year at the average exchange rates of the previous year and taking into account the perimeter variations prorata temporis, but including revenue variations from the gains of new contracts and the losses of contracts previously held in our portfolio. Next information: Q1 2017 revenue: 4th May, 2017 (after market) Annual General Meeting of Shareholders: 11th May, 2017 Forward looking statements This news release may contain some forward-looking statements. These statements are not undertakings as to the future performance of the Company. Although the Company considers that such statements are based on reasonable expectations and assumptions on the date of publication of this release, they are by their nature subject to risks and uncertainties which could cause actual performance to differ from those indicated or implied in such statements. These risks and uncertainties include without limitation the risk factors that are described in the annual report registered in France with the French Autorité des Marchés Financiers. Investors and holders of shares of the Company may obtain copy of such annual report by contacting the Autorité des Marchés Financiers on its website www.amf-france.org or directly on the Company website www.jcdecaux.com. The Company does not have the obligation and undertakes no obligation to update or revise any of the forward-looking statements.


News Article | February 22, 2017
Site: www.marketwired.com

All per share figures disclosed below are stated on a diluted basis. The Company completed another successful year in 2016, reaching historic highs again in many of its key financial measures. Based on the strong 2016 fiscal performance, the Board of Directors are pleased to announce a quarterly eligible dividend of $0.10 per share, an increase of 17.6%, payable on April 18, 2017, to shareholders of record on April 11, 2017. Assets under management ("AUM") were $27.3 billion as at December 31, 2016, an increase of 12% from $24.3 billion as at December 31, 2015. The increase in AUM was due largely to the positive returns in the Canadian equity market, to which the Company's institutional AUM is over 50% exposed. The positive market performance was partially offset by net redemptions in Canadian equities from retail intermediary mandates and by institutional investors rebalancing their portfolios, after strong returns, especially in the fourth quarter of 2016. This trend is expected to continue into early 2017. Assets under administration were $16.5 billion as at December 31, 2016, an increase of 10% from $14.9 billion as at December 31, 2015. The Company's operating earnings for the year were $44.7 million, a 4% growth from $43.0 million in 2015. The growth in operating earnings was aided by the significant growth in Q4 operating earnings, especially from the MGA business that delivered record sales in premiums on life insurance policies sold, as clients accelerated their decisions to buy policies before changes to income tax legislation came into effect in the new year. The sales in life insurance policies are expected to revert to more normal levels in early 2017. The growth in 2016 operating earnings was achieved while continuing to make strategic investments in the business. Included in 2016 operating earnings were $4.8 million operating losses associated with developing less mature businesses to support our future growth, including our new initiative to expand marketing and distribution capabilities in the US market. In 2015, these investments amounted to $3.5 million in operating losses. Net earnings available to shareholders for the year were $69.5 million ($2.32 per share), a 58% growth compared to $44.1 million ($1.44 per share), for 2015. The increase in net earnings available to shareholders was due to the combination of growth in operating earnings and the significant increase in net gains in 2016, that included gains on the sale of just over 0.5 million in Bank of Montreal shares. EBITDA(1) for the year was $49.5 million, or $1.66 per share, compared to $47.8 million, or $1.56 per share for 2015. Adjusted cash flow from operations(1) for the year was $38.7 million, or $1.30 per share, compared to $38.3 million, or $1.25 per share for 2015. The increases in each of these measures reflect the growth in operating earnings for the year. These two non-IFRS financial measures used by the Company are defined in its quarterly and annual Management's Discussion and Analysis. The Company's shareholders' equity as at December 31, 2016 was $580 million, or $19.62 per share, compared to $504 million, or $16.55 per share, at December 31, 2015. The fair value of the Company's holdings of securities as at December 31, 2016 was $620 million, or $20.97 per share, compared to $540 million, or $17.72 per share, as at December 31, 2015. The following table summarizes Guardian's financial results for the past eight quarters. Guardian Capital Group Limited is a diversified financial services company founded in 1962. Guardian provides institutional and high net worth investment management services to clients; financial services to international investors; and services to financial advisors in its national mutual fund dealer, securities dealer, and insurance distribution network. Its Common and Class A shares are listed on The Toronto Stock Exchange. (1) The Company's management uses EBITDA and Adjusted cash flow from operations to evaluate and assess the performance of its business. These two measures do not have standardized meaning under International Financial Reporting Standards ("IFRS"), and are therefore unlikely to be comparable to similar measures presented by other companies. However, management believes that most shareholders, creditors, other stakeholders and investment analysts prefer to include the use of these measures in analyzing the Company's results. The Company defines EBITDA as net earnings before interest, income taxes, amortization, stock-based compensation, net gains or losses and net gains or losses on securities held for sale, less amounts attributable to non-controlling interest. The Company defines Adjusted cash flow from operations as Net cash from operating activities, net of changes in non-cash working capital items and net of non-controlling interests. The most comparable IFRS measures are Net earnings, which was $70,575 for the year ended December 31, 2016 (2015 - $44,977), and Net cash from operating activities, which was $42,515 for the year ended December 31, 2016 (2015 - $33,777). More detailed descriptions of these two non-IFRS measures are provided in the Company's annual Management's Discussions and Analysis, including a reconciliation of these measures to their most comparable IFRS measures.


News Article | February 15, 2017
Site: www.marketwired.com

MONTRÉAL, QUÉBEC--(Marketwired - 8 fév. 2017) - Theratechnologies inc. (« Theratechnologies ») (TSX:TH) a annoncé aujourd'hui ses résultats financiers pour l'exercice clos le 30 novembre 2016. « Notre dernier exercice s'est révélé à la fois valorisant et stimulant. Nous avons terminé l'exercice avec nos meilleurs résultats à ce jour en regard des ventes de notre produit. En fait, EGRIFTAMD est devenu l'assise sur laquelle nous pouvons nous appuyer pour aller plus loin. En outre, EGRIFTAMD a rendu possible l'acquisition des droits de commercialisation de l'ibalizumab, lequel présente un potentiel considérable et qui pourrait, s'il est approuvé par la FDA, rapporter des revenus supplémentaires importants à la Société », a déclaré M. Luc Tanguay, président et chef de la direction de Theratechnologies inc. « La transaction portant sur l'ibalizumab pourrait s'avérer un point décisif pour l'avenir de notre Société », a conclu M. Tanguay. Nous prévoyons que, prises isolément, les activités se rapportant à EGRIFTAMD pour la période de 12 mois qui se terminera le 30 novembre 2017 devraient générer des ventes nettes se chiffrant entre 40 000 000 $ et 42 000 000 $. Cet estimé a été établi sur la base d'un taux de change entre le dollar américain et le dollar canadien de 1,32. Nous mettons actuellement la touche finale aux plans entourant le lancement de l'ibalizumab aux États-Unis, qui, nous le croyons, devrait avoir lieu en 2017, s'il est approuvé. Le 1er mars 2017, nous rendrons public nos plans ainsi que de nouvelles prévisions concernant l'incidence de ces plans sur nos ventes et notre BAIIA ajusté. Les résultats financiers présentés dans le présent communiqué de presse sont tirés du rapport de gestion et des états financiers consolidés audités de la Société pour la période de 12 mois close le 30 novembre 2016, lesquels ont été établis conformément aux Normes internationales d'information financière (les International Financial Reporting Standards, ou « IFRS »), publiées par l'International Accounting Standards Board (l'« IASB »). Le rapport de gestion et les états financiers consolidés audités sont disponibles au www.sedar.com et au www.theratech.com. Sauf indication contraire, tous les montants figurant dans le présent communiqué de presse sont présentés en dollars canadiens et les termes clés ont le sens qui leur est attribué dans notre rapport de gestion. Aux fins de la présente, EGRIFTAMD fait référence à la tésamoréline, utilisée pour la réduction de l'excès de graisse abdominale chez les patients infectés par le VIH et atteints de lipodystrophie. EGRIFTAMD est notre marque de commerce. Les revenus consolidés ont atteint 37 072 000 $ pour la période de 12 mois close le 30 novembre 2016, en regard de 30 055 000 $ pour l'exercice 2015. Les revenus tirés des ventes nettes ont augmenté de 24 % en 2016 grâce à des ventes unitaires plus élevées, à des variations des cours de change favorables et à des prix supérieurs. Un paiement initial de 200 000 $ avait été reçu en 2015 dans le cadre du partenariat commercial avec AOP. Le coût des ventes s'est établi à 6 658 000 $ pour la période de 12 mois close le 30 novembre 2016, par rapport à 4 024 000 $ pour l'exercice 2015. Pour l'exercice 2016, le coût des ventes tient compte des redevances de 2 430 000 $ qui doivent être payées sur les ventes depuis le 1er janvier 2016 aux termes de la convention de résiliation de licence d'EMD Serono. Pour l'exercice 2016, un recouvrement de coûts de production non attribués de 86 000 $ a été comptabilisé alors que pour l'exercice 2015, le coût des ventes tenait compte de coûts de production non attribués de 338 000 $, dont une tranche de 229 000 $ était liée à la dépréciation des stocks. Les frais de R&D, déduction faite des crédits d'impôt, se sont chiffrés à 6 955 000 $ pour la période de 12 mois close le 30 novembre 2016, comparativement à 4 905 000 $ pour l'exercice 2015. La majeure partie de la hausse par rapport à l'exercice précédent est attribuable à l'augmentation des dépenses liées aux affaires médicales dans la poursuite de notre objectif visant à élargir le bassin de patients utilisant EGRIFTAMD. Les affaires médicales englobent essentiellement les programmes d'éducation médicale faisant appel à des médecins et à des infirmières qui sont des leaders d'opinion travaillant auprès des porteurs du VIH afin de les familiariser avec les données scientifiques en lien avec EGRIFTAMD et à ses avantages thérapeutiques. Les frais de R&D comprennent également les coûts liés à nos deux essais de phase IV, coûts qui se sont élevés à 2 341 000 $ au cours de la période de 12 mois close le 30 novembre 2016, comparativement à 2 771 000 $ pour l'exercice 2015. Les affaires réglementaires, l'assurance de la qualité et le projet de formulation F4 sont d'autres composantes des frais de R&D. Les frais de vente et de développement des marchés ont atteint 14 658 000 $ pour la période de 12 mois close le 30 novembre 2016, contre 12 926 000 $ pour l'exercice 2015. Désormais, les frais de vente et de développement des marchés comprennent les coûts liés au maintien de notre propre équipe de vente, ainsi qu'aux différents éléments de notre programme de mise en marché, dont notre groupe de marketing, notre centre d'appels, nos services de remboursement et les campagnes promotionnelles ayant pour but d'accroître la notoriété d'EGRIFTAMD et de ses avantages thérapeutiques au sein de la communauté VIH. Au cours de l'exercice 2016, nous avons également commencé à engager des coûts liés au lancement prévu de l'ibalizumab en 2017. Les frais de vente et de développement des marchés comprennent l'amortissement de la valeur des immobilisations incorporelles établi pour les droits de commercialisation d'EGRIFTAMD. Cette charge d'amortissement s'est chiffrée à 2 007 000 $ pour l'exercice 2016, comparativement à 1 905 000 $ pour l'exercice 2015. Les frais généraux et administratifs ont totalisé 4 863 000 $ pour la période de 12 mois close le 30 novembre 2016, comparativement à 4 055 000 $ pour l'exercice 2015. La hausse des frais pour l'exercice 2016 est principalement attribuable à la rémunération fondée sur des actions (une charge hors trésorerie) et à l'embauche d'un chef de la direction financière. Le BAIIA ajusté pour la période de 12 mois close le 30 novembre 2016 a atteint 6 573 000 $, comparativement à 6 439 000 $ pour l'exercice 2015. Cette légère amélioration du BAIIA ajusté pour l'exercice 2016 a été comptabilisée malgré l'incidence sur le bénéfice de la charge au titre des redevances d'EGRIFTAMD de 2 430 000 $ et des coûts de plus de 1 000 000 $ liés au lancement prévu de l'ibalizumab, lesquels n'avaient pas été engagés pour l'exercice 2015. Se reporter à la rubrique « Mesures financières non conformes aux IFRS » ci-après. Compte tenu des variations des revenus et des charges dont il est question ci-dessus, nous avons inscrit un bénéfice net de 410 000 $, ou 0,01 $ par action (0,01 $ par action après dilution), pour la période de 12 mois close le 30 novembre 2016, en comparaison d'un bénéfice net de 1 571 000 $, ou 0,03 $ par action (0,02 $ par action après dilution), pour l'exercice 2015. Pour la période de 12 mois close le 30 novembre 2016, les activités d'exploitation ont généré des flux de trésorerie de 2 691 000 $, contre des flux de trésorerie de 7 086 000 $ pour l'exercice 2015. La réduction des flux de trésorerie s'explique en grande partie par la variation des actifs et des passifs d'exploitation. Les principales composantes de cette variation sont le recul de 2 158 000 $ des créditeurs et charges à payer et la hausse de 2 101 000 $ des clients et autres débiteurs. Au cours de l'exercice 2016, la Société a versé à EMD Serono des paiements de 5 196 000 $ à titre de règlement partiel de son obligation à long terme (5 398 000 $ pour l'exercice 2015). Le 6 août 2015, la Société a conclu un appel public à l'épargne visant 4 600 000 unités qui a donné lieu à un produit brut de 11 040 000 $. Chaque unité était constituée d'une action ordinaire et d'un demi-bon de souscription d'actions ordinaires de la Société, chaque bon de souscription entier (un « bon de souscription ») pouvant être exercé pendant une période de 24 mois à compter de la date de clôture du placement à un prix d'exercice de 3,00 $ l'action. Aux termes des IFRS, le traitement prescrit pour les bons de souscription émis à un prix d'exercice libellé en monnaie étrangère, le dollar canadien dans ce cas-ci, prévoit que ces bons de souscription soient classés à titre de passif évalué à la juste valeur. Les frais d'émission d'actions payés en 2015 avaient totalisé 1 126 000 $, ce qui a donné lieu à un produit net de 9 914 000 $. Les revenus consolidés se sont chiffrés à 10 377 000 $ pour le trimestre clos le 30 novembre 2016, en regard de 9 011 000 $ pour la période correspondante de 2015. Les revenus tirés des ventes nettes ont atteint 10 376 000 $ pour le trimestre clos le 30 novembre 2016, contre 9 007 000 $ pour la période correspondante de l'exercice 2015. Cette hausse de 15 % est attribuable aux hausses des ventes unitaires et des prix. Le coût des ventes s'est établi à 1 978 000 $ pour le trimestre clos le 30 novembre 2016, par rapport à 1 161 000 $ pour la période correspondante de l'exercice 2015. Le coût des ventes pour le quatrième trimestre de 2016 comprend une charge au titre des redevances de 757 000 $, lesquelles doivent être payées sur les ventes depuis le 1er janvier 2016 aux termes de la convention de résiliation de licence d'EMD Serono. Les frais de R&D, déduction faite des crédits d'impôt, se sont chiffrés à 1 158 000 $ pour le trimestre clos le 30 novembre 2016, comparativement à 926 000 $ pour la même période un an plus tôt. Les coûts liés aux deux essais cliniques de phase IV (soit l'étude d'observation et l'étude sur la rétinopathie) se sont établis à 310 000 $ pour le trimestre clos le 30 novembre 2016, par rapport à 265 000 $ pour le trimestre correspondant de l'exercice 2015. L'intensification des activités liées aux affaires médicales, aux affaires réglementaires et à l'assurance de la qualité, compte pour la quasi-totalité de l'écart résiduel entre le montant des frais de R&D du quatrième trimestre de l'exercice 2016 et celui du quatrième trimestre de l'exercice précédent. Les frais de vente et de développement des marchés ont atteint 3 762 000 $ pour le trimestre clos le 30 novembre 2016, en regard de 4 348 000 $ pour la période correspondante de l'exercice 2015. Le niveau plus élevé des frais en 2015 s'explique essentiellement par l'augmentation prévue des activités de vente et de développement des marchés qui s'est enclenchée au quatrième trimestre de 2015 et qui s'est poursuivie au début de l'exercice 2016. Les frais de vente et de développement des marchés comprennent également l'amortissement de la valeur des immobilisations incorporelles établie pour les droits de commercialisation d'EGRIFTAMD. Cette charge d'amortissement s'est chiffrée à 501 000 $ pour le trimestre clos le 30 novembre 2016, comparativement à 499 000 $ pour la même période un an plus tôt. Les frais généraux et administratifs ont totalisé 1 385 000 $ pour le trimestre clos le 30 novembre 2016, alors qu'ils avaient totalisé 1 157 000 $ pour le trimestre correspondant de l'exercice 2015. Les activités d'exploitation se sont soldées par un bénéfice de 1 455 000 $ pour le trimestre clos le 30 novembre 2016, contre 1 419 000 $ pour le trimestre correspondant de l'exercice 2015. Le BAIIA ajusté pour le trimestre clos le 30 novembre 2016 a atteint 2 812 000 $, comparativement à 2 185 000 $ pour la période correspondante de l'exercice 2015. Une augmentation du BAIIA ajusté au quatrième trimestre de l'exercice 2016 a été comptabilisée malgré l'incidence sur le bénéfice de la charge au titre des redevances d'EGRIFTAMD et des coûts liés au lancement prévu de l'ibalizumab, lesquels n'avaient pas été engagés pour l'exercice 2015. Se reporter à la rubrique « Mesures financières non conformes aux IFRS » ci-après. Compte tenu des variations des revenus et des charges mentionnées ci-dessus, nous avons inscrit un bénéfice net de 173 000 $, ou 0,00 $ par action, pour le trimestre clos le 30 novembre 2016, en comparaison d'un bénéfice net de 488 000 $, ou 0,01 $ par action, pour le trimestre correspondant de l'exercice 2015. Pour le trimestre clos le 30 novembre 2016, les activités d'exploitation ont généré des flux de trésorerie de 2 688 000 $, contre des flux de trésorerie de 3 233 000 $ pour la période correspondante de l'exercice 2015. L'accroissement des charges hors trésorerie en 2016 s'explique en grande partie par la hausse des charges financières susmentionnée. L'apport des variations des actifs et des passifs d'exploitation aux flux de trésorerie s'est établi à 446 000 $ pour l'exercice 2016, comparativement à 1 647 000 $ pour l'exercice précédent, ce qui rend compte des importantes variations de l'apport des postes suivants : Clients et autres débiteurs, Stocks, Créditeurs et charges à payer et Provisions. Toutes ces variations ont eu lieu dans le cours normal des activités. Le 5 décembre 2016, la Société a réalisé un appel public à l'épargne visant la vente et l'émission de 5 323 000 actions ordinaires pour une contrepartie en trésorerie brute de 16 501 000 $. Les frais d'émission d'actions sont estimés à 1 490 000 $, ce qui a donné lieu à un produit net de 15 011 000 $. La Société a attribué aux preneurs fermes une option de surallocation pour la vente et l'émission de 798 450 actions ordinaires supplémentaires à un prix d'émission de 3,10 $ par action, exerçable pendant une période de 30 jours à compter de la date de clôture. L'option de surallocation n'a pas été exercée. La Société a également émis des options de courtier pour la vente et l'émission de 212 920 actions ordinaires à un prix d'émission de 3,10 $ par action, exerçables pendant une période de 18 mois à compter de la date de clôture. En janvier 2017, les 124 000 bons de souscription de courtier restants, émis au cours de l'exercice 2015, ont été exercés. De plus, 124 000 actions ordinaires et 62 000 bons de souscription d'actions ordinaires ont été émis pour une contrepartie en trésorerie de 297 600 $. Le BAIIA ajusté est une mesure non conforme aux IFRS. Un rapprochement du BAIIA ajusté est présenté dans le tableau qui suit. Nous utilisons des mesures financières ajustées pour évaluer notre performance d'exploitation. La réglementation en valeurs mobilières exige que les sociétés informent les lecteurs que le résultat et toute autre mesure ajustée selon des paramètres autres que les IFRS n'ont aucun sens normalisé et qu'il est donc peu probable qu'ils soient comparables aux mesures semblables utilisées par d'autres sociétés. Par conséquent, ces mesures ne doivent pas être considérées de façon isolée. Nous utilisons le BAIIA ajusté pour mesurer notre performance d'exploitation d'une période à l'autre sans tenir compte des variations provoquées par divers ajustements pouvant fausser l'analyse des tendances à l'égard de nos activités et parce que nous croyons que cette mesure procure des renseignements utiles sur notre situation financière et nos résultats d'exploitation. Nous parvenons au BAIIA ajusté en ajoutant au bénéfice net ou à la perte nette les produits financiers et les charges financières, les amortissements, l'impôt ainsi que les crédits d'impôt à l'investissement fédéraux de l'ARC inscrits en 2014. Nous excluons aussi l'incidence de certaines transactions non monétaires, telles que la rémunération fondée sur des actions pour le régime d'options d'achat d'actions ainsi que la dépréciation des stocks, dans le calcul du BAIIA ajusté. Nous estimons qu'il est utile d'exclure ces éléments puisqu'ils représentent des charges hors trésorerie, qu'ils échappent au contrôle de la direction à court terme, ou qu'ils n'ont pas d'incidence sur la performance d'exploitation principale. L'exclusion de ces éléments ne signifie pas qu'ils sont nécessairement non récurrents. Les charges de rémunération fondées sur des actions sont une composante de la rémunération des employés et elles peuvent varier considérablement selon le cours des actions de la Société. De plus, d'autres éléments sans incidence sur la performance d'exploitation principale de la Société peuvent varier considérablement d'une période à l'autre. Ainsi, le BAIIA ajusté permet de mieux suivre l'évolution des résultats d'exploitation au fil du temps aux fins de leur comparaison. Il se pourrait que notre méthode de calcul du BAIIA ajusté soit différente de celle utilisée par d'autres sociétés. Une conférence téléphonique aura lieu aujourd'hui à compter de 8 h 30 (HE) pour discuter des résultats. Les analystes financiers seront invités à poser des questions lors de la conférence téléphonique. Les membres des médias et autres personnes intéressées sont invités à la conférence à titre d'auditeurs uniquement. Pour accéder à la conférence téléphonique, veuillez composer le 1-877-223-4471 (Amérique du Nord) ou le 1-647-788-4922 (international). L'appel sera également accessible par webdiffusion au http://www.gowebcasting.com/8293. L'enregistrement audio de cette conférence sera disponible deux heures après la fin de l'appel, et ce, jusqu'au 22 février 2017, au 1-800-585-8367 (Amérique du Nord) ou au 1-416-621-4642 (international) en saisissant le code d'accès 49662824. Theratechnologies (TSX:TH) est une société pharmaceutique spécialisée répondant à des besoins médicaux non satisfaits en vue de promouvoir auprès des patients infectés par le VIH un mode de vie sain et une qualité de vie améliorée. D'autres renseignements sur Theratechnologies sont disponibles sur le site Web de la Société au www.theratech.com et sur SEDAR au www.sedar.com. Le présent communiqué de presse renferme des énoncés prospectifs et de l'information prospective (collectivement, les « énoncés prospectifs ») au sens de la législation applicable en valeurs mobilières. Ces énoncés prospectifs reposent sur les opinions et les hypothèses de la direction ou sur l'information disponible à la date où ils sont formulés et se reconnaissent à l'emploi de mots tels que « peut », « va », « pourrait », « voudrait », « devrait », « perspectives », « croit », « planifie », « envisage », « prévoit », « s'attend » et « estime » ou la forme négative de ces termes ou des variations de ceux-ci. Les énoncés prospectifs contenus dans le présent communiqué de presse comprennent, sans toutefois s'y limiter, des énoncés portant sur les revenus et le BAIIA ajusté que nous prévoyons enregistrer pour l'exercice 2017, sur les revenus que nous anticipons générer des ventes de l'EGRIFTAMD pour l'exercice 2017, l'approbation d'ibalizumab et la croissance de nos revenus une fois ibalizumab approuvé et commercialisé. Les énoncés prospectifs sont fondés sur un certain nombre d'hypothèses, notamment celles voulant que les ventes d'EGRIFTAMD continueront de croître et que nous rencontrerons nos prévisions de vente anticipées concernant EGRIFTAMD pour l'exercice 2017, le taux de change USD/CAD ne fluctuera pas au cours de l'exercice 2017, la FDA n'émettra pas d'ordonnance ou de décision ayant l'effet d'affecter de façon défavorable la commercialisation d'EGRIFTAMD aux États-Unis, ibalizumab sera approuvé par la FDA aux États-Unis et nous débuterons la commercialisation d'ibalizumab d'ici la fin de 2017, de même que l'ibalizumab sera accepté comme médicament, si approuvé, par les médecins et les patients. Les énoncés prospectifs sont assujettis à plusieurs risques et incertitudes, dont bon nombre sont indépendants de notre volonté et sont susceptibles d'entraîner un écart considérable entre les résultats réels et ceux qui sont exprimés, expressément ou implicitement, dans les énoncés prospectifs figurant dans le présent communiqué de presse. Ces risques visent notamment une baisse des ventes de l'EGRIFTAMD au cours de l'exercice 2017, un rappel visant EGRIFTAMD, l'émission d'une ordonnance ou décision par la FDA affectant de façon défavorable la commercialisation d'EGRIFTAMD, le non-dépôt auprès de la FDA d'une demande d'approbation pour l'ibalizumab, la non-approbation de l'ibalizumab par la FDA et, même si approuvé, le fait que nous ne soyons pas en mesure de lancer et de commercialiser l'ibalizumab d'ici la fin de 2017. Les investisseurs éventuels sont priés de se reporter à la rubrique « Risques et incertitudes » de notre notice annuelle en date du 7 février 2017 pour tout autre risque additionnel concernant nos activités. Le lecteur est prié d'examiner ces risques et incertitudes attentivement et de ne pas se fier indûment aux énoncés prospectifs. Les énoncés prospectifs reflètent les attentes actuelles concernant des événements futurs. Ils ne sont valables qu'à la date de ce communiqué de presse et traduisent nos attentes à cette date. Nous ne nous engageons aucunement à mettre à jour ou à réviser l'information contenue dans ce communiqué de presse, que ce soit à la suite de l'obtention de nouveaux renseignements, à la suite de nouveaux événements ou circonstances ou pour toute autre raison que ce soit, sauf si les lois en vigueur l'exigent.


News Article | February 15, 2017
Site: globenewswire.com

ASPO Plc      FINANCIAL STATEMENT RELEASE   February 15, 2017, at 11:00 a.m.      ASPO GROUP FINANCIAL STATEMENT RELEASE, JANUARY 1 TO DECEMBER 31, 2016 (Figures from the year 2015 are presented in brackets.) January-December 2016 - Aspo's net sales amounted to EUR 457.4 (445.8) million. - Operating profit stood at EUR 20.4 (20.6) million. - Profit for the period was EUR 15.9 (19.8) million. - Earnings per share were EUR 0.49 (0.61). - The operating profit of ESL Shipping stood at EUR 12.6 (14.7) million. The operating profit of Leipurin was EUR 2.0 (2.4) million. The operating profit of Telko stood at EUR 10.1 (10.4) million and the operating profit of Kauko was EUR -0.1 (-1.2) million. - Net cash from operating activities was EUR 16.2 (25.0) million The 2015 operating profit and profit for the period include items that affect comparability as presented in the table of key figures below. October-December 2016 - Aspo's net sales amounted to EUR 124.5 (122.1) million. - Operating profit stood at EUR 6.3 (6.2) million. - Profit for the quarter was EUR 5.2 (3.7) million. - Earnings per share were EUR 0.17 (0.11). - The operating profit of ESL Shipping stood at EUR 4.1 (4.5) million. The operating profit of Leipurin was EUR 0.7 (0.4) million. The operating profit of Telko stood at EUR 2.5 (1.9) million and the operating profit of Kauko was EUR 0.0 (0.6) million. October-December 2015 operating profit and profit for the period include items that affect comparability as presented in the table of key figures below. - Net sales in Russia, Ukraine and other CIS countries increased by 21% during the fourth quarter from the comparative period, being record-high at EUR 42.0 (34.7) million. - Telko's net sales increased by 21% and operating profit improved to EUR 2.5 (1.9) million during the fourth quarter. The most significant reason for this improvement was the general increase in western markets which accelerated towards the end of the year and the improved profitability. - During the period under review, ESL Shipping received a decision on the EU's funding for energy efficiency and environmental investments of at most EUR 5.9 million, of which the company received EUR 2.1 million during the fourth quarter. - Aspo specified its financial targets on November 24, 2016, so that the aim is to reach the targets by 2020. ESL Shipping expects to reach an operating profit level of 20-24% by 2020. Guidance for 2017 Aspo's operating profit will be EUR 22-27 (20.4) million in 2017. The Board of Directors' dividend proposal The Board of Directors proposes that EUR 0.42 (0.41) per share be paid in dividends for the 2016 financial year, and that the dividend be paid in two installments, in April and in November. Further information about the dividend proposal can be found under "Dividend proposal". General outlook for 2017 Uncertainty in markets has decreased. Industrial production is expected to grow in the main market areas of Aspo's businesses in 2017. Prices of raw materials are expected to remain low. In Russia, the national economy and industrial production are estimated to turn into growth. Political risks have increased, which may quickly affect the operating environment or decrease free trade in the long term. KEY FIGURES Items affecting comparability *) The operating profit 1-12/2015 includes an impairment loss of EUR 1.3 million related to Kauko goodwill, and EUR 0.6 million in charges imposed on Telko by Finnish Customs and related advisor fees, of which EUR 0.2 million were recognized in the fourth quarter. **) The profit 1-12/2015 includes an impairment loss of EUR 1.3 million related to Kauko goodwill, a sales gain of EUR 4.9 million recognized in financial items and EUR 2.0 million in charges imposed by Finnish Customs and related advisor fees, of which EUR 1.6 million were recognized in the fourth quarter. AKI OJANEN, CEO OF ASPO GROUP, COMMENTS ON THE FOURTH QUARTER AND THE FINANCIAL YEAR: "All in all, 2016 was a good and dynamic year. The growth of Aspo's net sales and operating profit accelerated during the second half of the year. We expect this positive development to continue and our financial guidance for 2017 estimates the operating profit to be EUR 22-27 (20.4) million in 2017. We developed the management of our subsidiaries on many levels. Their Boards of Directors were strengthened, Mikko Laavainen was appointed Managing Director of Leipurin Plc, starting from March 1, 2016, Kauko revised its identity in accordance with its strategy, and Telko invested in its regional strategy and both expanded and grew heavily in eastern markets. ESL Shipping received a decision on an EU funding of at most EUR 5.9 million for energy efficiency and environmental investments in vessels. The company carried out extensive groundwork for the future development of its results. The shipping company faced an exceptionally challenging operating environment in 2016. Unhealthy levels of international cargo prices also reduced the results of ESL Shipping. Even though other vessel categories improved their profitability, the losses produced by Supramax vessels during the spring and summer reduced the full-year results.  However, the operating profit of EUR 4.1 (4.5) million produced during the fourth quarter can be regarded as a good achievement, considering the market situation. We estimate that the productivity of Supramax vessels is higher in 2017 than what it was in 2016. Telko was able to significantly improve its net sales and profitability during the fourth quarter. We already saw in the spring that the decline in the Russian economy had stopped and expected the market situation to improve. Telko's strong investments in growth paid off in the eastern markets in the form of an increase in net sales of 26%. Its operating profit improved during the quarter to EUR 2.5 (1.9) million. Telko improved its profitability, particularly in the western markets. The profitability of Leipurin is far from its potential, even though its operating profit improved during the fourth quarter to EUR 0.7 (0.4) million. Leipurin continued its strong growth in Russia, where its profitability remained high, with the operating profit rate being approximately 9%. Machine operations produced a loss in 2016. Heavy investments in improving the competitiveness of machine operations and entering new market areas resulted in a record-high order book at the end of the year, which ensures that the result of machine operations can develop positively in 2017. Aspo's administrative costs reached the target level in 2016. The improved outlook for different businesses and the higher cost efficiency enable us to be determined and move forward in 2017 towards reaching our financial targets by 2020."  ASPO GROUP NET SALES Net sales by segment There is no considerable inter-segment net sales. Net sales by market area The market area of Russia, Ukraine and other CIS countries increased its net sales by 21% during the fourth quarter, making it the largest market area. At an annual level, net sales grew by 13.5% in the market area. In October-December, net sales in the market area of other countries fell by 22.1%, which can be explained by the timing of Kauko's project deliveries to China in the fourth quarter of 2015. EARNINGS Operating profit by segment Earnings per share Earnings per share were EUR 0.49 (0.61) during the financial year. Equity per share was EUR 3.75 (3.36). The result for the comparative period was significantly improved by a sales gain of EUR 4.9 million recognized in financial items through the sale of shares in Alandia Insurance owned by ESL Shipping. Its effect on earnings per share was approximately EUR 0.16. Financial targets Aspo's objective is to reach an average return on equity of over 20%, gearing of up to 100% and an operating profit of 7% with the current structure by 2020. The operating profit rate for the financial year was 4.5% (4.6), return on equity was 14.6% (19.1), and gearing was 89.8% (101.4). OUTLOOK FOR 2017 Global economic growth is expected to speed up in 2017. General uncertainty and a poor economic situation in eastern growth markets that are important areas for Aspo have turned into growth. However, the future development of Russia, Ukraine and other CIS countries is difficult to estimate. The values of currencies are expected to continue to fluctuate heavily.  Oil prices are expected to remain at their low level. In general, prices of production raw materials are expected to remain low. The Group will continue to increase its market share profitably in the strategically important eastern growth markets. Industrial production is expected to grow in the main market areas of Aspo's businesses in 2017. While international dry cargo prices are expected to remain low, the shipping company has secured the use of its capacity mainly through long-term agreements. It has been ensured that one Supramax vessel will operate in the Baltic Sea area in 2017, which significantly reduces the volume of spot traffic. The loss-producing machine operations of Leipurin will turn to produce a profit as a result of the record-high order book. ASPO'S BUSINESS OPERATIONS ESL SHIPPING ESL Shipping is the leading dry bulk cargo company in the Baltic Sea region. At the end of the year, the company's fleet consisted of 14 vessels, of which the company owned 13 in full and one was leased. ESL Shipping's service range is based on the company's ability to operate effectively and reliably in Nordic ice regions and to load and unload vessels at sea. During the last quarter, ESL Shipping's vessels mainly operated in the Baltic Sea and Northern Europe, and offered loading and unloading services at sea. Transportation operations in the Baltic Sea and the North Sea are based on long-term customer agreements and established customer relationships. The general market prices of dry bulk cargo increased at the end of 2016, while they are still low when evaluated in the long term. During the fourth quarter, the shipping company signed an annual agreement with a Russian steel company on the transportation of iron pellets to European markets, using a Supramax vessel. Key factors for the agreement include the excellent ice strengthening of ESL Shipping's vessels and their ability to handle loads independently. The transportation volume of renewable bioenergy was higher than estimated. The results of the Supramax vessels turned to produce a profit during the fourth quarter. One vessel was docked as scheduled during the fourth quarter. ESL Shipping's net sales in the fourth quarter increased to EUR 20.6 (19.9) million as a result of transportation volumes that were higher than in the comparative period and increased ship fuel prices. The strengthened US dollar increased the euro-denominated prices of fuel. Profitability remained high, considering the market situation, and operating profit was EUR 4.1 (4.5) million. Loading and unloading operations for large ocean liners at sea were at a normal level during the fourth quarter. The occasionally difficult weather conditions during the period extended the duration of operations and reduced the profitability of loading and unloading operations, compared with the comparative period. The volume of cargo carried by ESL Shipping in October-December amounted to 3.2 (3.1) million tons. Transportation volumes for the steel industry were at the comparative period's level, whereas transportation volumes for the energy industry increased from the comparative period, both in terms of renewable energy and coal. ESL Shipping maintained its high profitability in 2016, regardless of the exceptionally challenging market environment at the beginning of the year, with operating profit being EUR 12.6 (14.7) million. The shipping company's net sales decreased in January-December to EUR 71.4 (76.2) million. This decrease was affected heavily by the historically difficult market situation involving large dry bulk cargo vessels at the beginning of the year, which forced the shipping company's Supramax vessels to operate in the loss-producing spot market. On an annual level, the Supramax vessels produced a small loss, regardless of the good fourth quarter. However, their profitability was much higher than on average in the market. The volume of cargo carried by ESL Shipping in 2016 amounted to 10.7 (11.1) million tons. On an annual level, the decrease in volume was mainly caused by the distances traveled by the Supramax vessels, which were longer than in the comparative period. The shipping company's newbuilding project of two of the world's first LNG-fueled handy-size dry bulk cargo vessels has proceeded according to schedule, and its cooperation with the shipyard of Sinotrans & CSC Jinling has been productive. The new vessels will start operating in the Baltic Sea in the first half of 2018. The new vessels will operate in the northern Baltic Sea, improving the efficiency of the transportation chain and significantly reducing the environmental load of operations. The EU supports energy-efficiency and environmental investments in ships. ESL Shipping will receive funding of at most EUR 5.9 million in 2016-2019, of which EUR 2.1 million was paid during the fourth quarter. In addition to ESL Shipping, the Bothnia Bulk project involves SSAB Europe Oy, Luleå Hamn AB, Oxelösunds Hamn AB, Raahen Satama Oy and Raahen Voima Oy. The EU funding has been awarded from the Connecting Europe Facility Transport instrument. Outlook for ESL Shipping for 2017 During the past six months, the market cargoes of large dry cargo vessels have increased notably from the historically low level of a year ago, while they are expected to remain fairly low in 2017. As not many new dry cargo vessels have been ordered, the balance between demand and supply is expected to improve in the next few years. Changes are also accelerated by tighter environmental regulations on shipping that may reduce the availability of the oldest tonnage in the future. Most of the shipping company's transportation capacity has been secured in the Baltic Sea and Northern Europe through long-term agreements. Similarly, the profitable employment of one of the shipping company's two Supramax vessels has already been secured for the current year through a long-term agreement in the Baltic Sea region. Transportation volumes for the steel industry are expected to improve or remain unchanged. The seasonal variation in demand may require that the capacity of the pusher-barge system be adapted later in spring, similarly to previous years. Demand in the mining and metal industries may increase, partly as a result of increased raw material prices. Transportation volumes for the energy industry are expected to be higher than in the previous year, which is mainly attributable to the growing demand for the transportation of biofuels. Transportation volume of coal is expected to remain at the previous year's level and its use will focus on the co-production of power and heat, the volumes of which are easier to estimate. The shift is due to the poor profitability of the production of condensate power and the previously announced closings of condensate power plants. Demand for loading and unloading services for large ocean liners at sea is expected to be high. If required, the shipping company will adapt its capacity in accordance with variation in demand and the needs of any new customer groups by chartering additional external capacity. The company aims to continue its operations in arctic areas, as in previous years. According to its strategy, the shipping company will continue to expand its customer base, in particular, to customer transportation, where the load range and the company's operating area can be increased while utilizing the independent load handling capability and the exceptionally high ice strengthening of its vessels. In 2017, four ship units will be docked as planned. LEIPURIN Leipurin is a unique provider of solutions for bakery and confectionery products, the food industry and the out of home (OOH) market. The solutions offered by Leipurin range, for example, from product development, recipes, raw materials, training and equipment all the way to the design of sales outlets. As part of its full-range services, Leipurin designs, delivers and maintains production lines for the baking industry, baking units and other machinery and equipment required in the food industry. Leipurin uses leading international manufacturers as its raw material and machinery supply partners. Leipurin operates in Finland, Russia, the Baltic countries, Poland, Ukraine, Kazakhstan and Belarus. Prices of raw materials that are important to Leipurin remained at the comparative period's level. The net sales of Leipurin in October-December were short of the comparative period, totaling EUR 30.7 (31.5) million. The operating profit grew to EUR 0.7 (0.4) million. The operating profit rate during the quarter was 2.3% (1.3%). The net sales decreased in bakery machine operations and significantly in raw material operations in Poland. The net sales of bakery raw materials grew by 18% in Russia, Ukraine and other CIS countries, while the operating profit rate fell to 7%. The net sales of bakery raw materials grew in Finland, mainly because of artisanal and OOH customer accounts. The increase in operating profit in October-December is mainly attributable to the growth of net sales in eastern markets in terms of bakery raw materials and the improved profitability of machine operations. Machine operations turned to produce a profit after a long loss-producing period which started from the steep decline in the Russian ruble. During the fourth quarter, net sales in Russia, Ukraine and other CIS countries, including machine sales, increased by 5% to EUR 9.6 (9.1) million, with the operating profit rate being approximately 7% (7%). The full-year net sales of Leipurin stood at EUR 112.7 (117.8) million, and operating profit was EUR 2.0 (2.4) million. The net sales generated in Russia, Ukraine and other CIS countries totaled EUR 30.6 million (30.6). The net sales of raw material operations remained at the previous year's level. The net sales of machine operations fell, producing a loss in 2016. Investments associated with the implementation of the new strategy reduced the operating profit.   Mikko Laavainen started as the Managing Director of Leipurin Plc on March 1, 2016.  Outlook for Leipurin for 2017 The market situation is expected to remain unchanged in the key markets of Leipurin. The company's market position is expected to remain strong in the industrial baking sector in Finland, the Baltic countries and Russia, and its net sales and operating profit are expected to improve. Russia's poor economic situation is estimated to turn into growth, and the purchasing power of consumers is expected to improve. The local procurement of bakery raw materials has increased in Russia to replace imported raw materials. This aims to respond to changes in demand by developing a product range with more competitive prices and to the ongoing campaign to favor domestic products in Russia. The aim is to increase the proportion of local raw materials above 50%. Local procurement has been decentralized and there are already dozens of significant local production partners. In this market area, Leipurin will maintain its high profitability, strengthen its market position and seek growth in the bread, confectionery and OOH sectors. The OOH market is a significant new area for Leipurin, and the company will continue its growth in this sector, particularly in Finland and the western markets. In machine operations, machine investments are expected to increase in Finland and the Baltic countries. In addition, a moderate increase in investments is expected in Russia. In terms of machine operations, Leipurin will continue to strengthen its agent network in Western Europe and the Middle East. The company's strong investments in the improved profitability of machine operations and expansion of sales into new market areas produced a record-high order book at the end of the year, which ensures that the result of machine operations will develop positively in 2017. TELKO Telko is a leading expert and supplier of plastic raw materials and industrial chemicals. Business is based on representation of the best international principals and on the expertise of the personnel. Telko has subsidiaries in Finland, the Baltic countries, Scandinavia, Poland, Russia, Belarus, Ukraine, Kazakhstan, Azerbaijan and China. *) The operating profit of the year 2015 includes EUR 0.6 million in charges imposed by Finnish Customs and related advisor fees, of which EUR 0.2 million were recognized in the fourth quarter. The prices of plastic raw materials continued to decrease during the fourth quarter, while the prices of chemicals essential to Telko increased during the quarter. In the fourth quarter, Telko's net sales grew by 21% to EUR 64.9 million (53.6). Operating profit improved to EUR 2.5 million (1.9). The most significant reason for this increase in the operating profit was the improved profitability in western markets. The operating profit rate increased from the corresponding period in the previous year. In Russia, Ukraine and other CIS countries, net sales increased during the fourth quarter by 26% compared with the comparative period. The operating profit decreased notably, with the operating profit rate being clearly below 5%. The Russian ruble, a currency important to Telko, strengthened by approximately 9% from the previous quarter, which temporarily reduced the profitability of the Russian unit. Main reasons for this poor profitability were the relatively larger proportion of volume products from net sales, compared with the western markets, and decrease in their prices. In addition, changes in exchange rates between the sale and procurement of products temporarily reduced the profitability of products sold in eastern markets. Furthermore, strategic investments in the local sales network covering the whole of Russia increased costs. However, this investment following the regional growth strategy is expected to have a positive impact on net sales and operating result in Russia. In the eastern markets, the operating environment continued to be a challenging one in 2016, even though the increase in oil prices strengthened the value of the ruble nearly throughout the year and also improved Russia's economic outlook. In the western markets, improvements in the operating environment supported demand, which increased profitability in the area. In 2016, net sales increased to a record-high level at EUR 240.3 (215.3) million. The increase in the net sales accelerated towards the end of the year and the full-year net sales grew by 12%, regardless of the prices of plastic and industrial chemical raw materials being lower than on average. The increase in the net sales was mainly attributable to new customer accounts, new principals and growth in sales volumes. In 2016, operating profit stood at EUR 10.1 (10.4) million. Net sales in the eastern markets grew by 16% in 2016, amounting to EUR 110.8 (95.5) million. Telko's net sales grew by 13% in Russia, by 18% in Ukraine and by 5% in the western markets. Sales volumes of plastics and chemicals grew both in the east and the west. In the western markets, the operating profit and the operating profit rate increased, while they fell in the eastern markets. Outlook for Telko for 2017 The prices of oil and petrochemical products are expected to remain low. The expected positive recovery of the eastern markets supports Telko's profitability development in the region. Telko's financial development in the western markets is expected to recover during 2017. In addition to growth, Telko focuses on improving its relative profitability. Increasing the proportion of technical products of a higher value will improve relative profitability, especially in the western markets. Telko will continue to operate in the eastern markets in accordance with its regional strategy by establishing and strengthening its regional units. Telko will investigate possible new operating countries in growth markets in the east and Middle East. KAUKO Kauko is a specialist in demanding mobile knowledge work environments. It supplies the best tools, solutions for improving productivity and services for securing effective use for the needs of industries, logistics, healthcare sector and the authorities. Kauko solutions combine customized applications, devices and services. Its product range also includes products that improve energy efficiency. Kauko has companies in Finland and Germany.  *) In 2015, the operating profit included a EUR 1.3 million goodwill impairment loss recognized in the first quarter. Total sales of computers decreased in Finland from the comparative period. However, sales of special rugged computers and tablets designed for demanding mobile knowledge work increased during 2016. In terms of decentralized energy production, the sales of solar power systems, in particular, have increased, and this increase is expected to continue. Kauko's net sales fell by 52% in the fourth quarter, amounting to EUR 8.3 (17.1) million. During the comparative period, the net sales and operating profit were increased by project deliveries in China. Operating profit stood at EUR 0.0 (0.6) million. The net sales of mobile knowledge work fell slightly from the comparative period, while the operating profit, including deliveries to healthcare sector, produced positive results. The net sales of energy-efficiency equipment grew. IT deliveries to the healthcare sector decreased clearly, net sales fell and the operations produced a loss during the fourth quarter. Key employees resigned from the organization of mobile IT units delivered to hospitals in Finland and Germany. Kauko will investigate and identify whether the non-compete clause has been breached and whether confidential positions have been misused. The organizational changes reduced the net sales of the unit during the fourth quarter. Reorganizations have been made in Finland and Germany. In 2016, Kauko's net sales fell by 10%, amounting to EUR 33.0 (36.5) million. Operating result stood at EUR -0.1 (-1.2) million. During the comparative period, operating result decreased due to the divestment of the Industrial business, in conjunction with which Aspo assessed the goodwill of the Kauko segment, and recognized an impairment loss of EUR 1.3 million. In 2016, the sale of energy-efficiency equipment developed well, compared with the comparative period. Solar power systems showed the fastest growth. The sale of air source heat pumps was at the level of the comparative period. Project deliveries in China fell clearly from the comparative period, due to the smaller number of projects. In the spring, the name Kaukomarkkinat was changed to Kauko, and the company underwent revised its identity and completely changed its customer communications in accordance with the new strategy. According to its new strategy, Kauko continued to expand its service range and invested in the development and sale of solutions for demanding mobile knowledge work. In addition, the company launched new business development projects that required the recruitment of new technical and commercial specialists and the further development of internal operating models. Outlook for Kauko for 2017 The net sales and profitability of solutions for mobile knowledge work are expected to improve. Kauko offers effectively integrated and customized complete solutions that combine application, hardware and other services. Application operations, in particular, are expected to improve their profitability. Service operations will be expanded by making a stronger shift towards complete solutions. In the markets of rugged computers, the sale of laptops is expected to decrease and the sale of tablets to increase. Kauko offers different mobile IT solutions for healthcare sector to improve the efficiency of the nursing staff. Kauko's German-built computer is expected to be available for sale during the first quarter. This new computer allows sales to other OEM channels, as well. The market of decentralized energy production solutions is expected to continue its growth, especially with regard to solar power. The order book is at an exceptionally good level. OTHER OPERATIONS Other operations include Aspo Group's administration, the financial and ICT service center, and a small number of other functions not covered by business units.  The operating profit of other operations was EUR -1.0 (-1.2) million for the fourth quarter and EUR -4.2 (-5.7) million for the financial year. The cost efficiency of other operations rose to the target level during the financial year. FINANCING The Group's cash and cash equivalents amounted to EUR 22.6 (23.9) million. The consolidated balance sheet included a total of EUR 125.4 (127.9) million in interest-bearing liabilities. The average rate of interest-bearing liabilities was 1.8% (1.7%) at the end of the financial year. Non-interest-bearing liabilities totaled EUR 69.8 (74.3) million. Aspo Group's gearing was 89.8% (101.4%) and its equity ratio was 37.4% (33.8%).   The Group's net cash from operating activities in January-December stood at EUR 16.2 (25.0) million. During the financial year, the change in working capital was EUR -10.6 (-4.2) million. Working capital was tied, in particular, to the strong growth of Telko. Net cash from investing activities totaled EUR -6.1 (-9.9) million and was affected positively by the EU subsidy of EUR 2.1 million received by ESL Shipping. During the comparative period, the net cash from investing activities was positively affected by a sales gain of EUR 4.9 million from Alandia shares. The Group's free cash flow (net cash from operating activities + net cash from investing activities) was EUR 10.1 (15.1) million. In November, ESL Shipping Ltd signed vessel financing agreements of EUR 50 million to finance its newbuilding projects.The loan period of the two separate agreements is seven years, and the repayment schedule includes a grace period of three years and a payback profile corresponding to a loan period of 12 years. The financing agreements will be fully used after the completion of the vessels, no later than in 2018. The new agreements extend the average maturity of Aspo Group's financing and, on their part, reduce the average interest rate of financing. In June, Aspo signed a revolving credit facility agreement of EUR 20 million. Its maturity is three years, and the agreement replaced an expiring revolving credit facility agreement of the same amount. On May 27, 2016, Aspo issued a new hybrid bond of EUR 25 million, treated as equity in the consolidated balance sheet. The fixed coupon rate of the bond is 6.75% per annum. The bond has no specified maturity date, but the company may exercise an early redemption option after four years of its issuance date. In May 2016, Aspo issued a tender offer to redeem EUR 15.4 million of the EUR 20 million hybrid bond issued in November 2013. The remaining capital of EUR 4.6 million was redeemed on November 18, 2016, in compliance with the terms and conditions of the loan. The amount of committed revolving credit facilities signed between Aspo and its main financing banks stood at EUR 40 million at the end of the financial year. At the end of the year, the revolving credit facilities remained fully unused. A revolving credit facility EUR 20 million will mature in 2017. Aspo's EUR 80 million commercial paper program remained fully unused. Aspo has hedged its interest rate risk by means of an interest rate swap. Its fair value on December 31, 2016 was EUR -0.6 (-0.7) million. The financial instrument is on level 2 of the fair value hierarchy. Aspo Group has hedged its currency-denominated cash flows associated with the acquisition of new vessels using currency forward agreements, to which hedge accounting is applied. The nominal value of these currency forward agreements was EUR 36.2 million, and their fair value was EUR 1.7 (0.1) million on December 31, 2016. The financial instrument is on level 2 of the fair value hierarchy. INVESTMENTS In 2016, the Group's investments stood at EUR 6.9 (15.1) million, mainly consisting of ESL Shipping's ship docking and maintenance investments, and advance payments for the shipping company's upcoming LNG-fueled dry cargo vessels. The EU supports energy-efficiency and environmental investments in ships. ESL Shipping will receive, at most, EUR 5.9 million in subsidies in 2016-2019, of which EUR 2.1 million was paid during the fourth quarter. In addition, investments were increased by the takeover of Telko's new business operation in Finland. Investments by segment, acquisitions excluded At the end of the year Aspo Group had 895 employees (857). The number of personnel has increased as a result of the expansion of Leipurin and Telko in the east. Rewarding Aspo Group applies a profit bonus system which was adopted in 2013. The profit bonus system applied to Finnish personnel is linked with the personnel fund so that the bonus can be invested in the personnel fund or withdrawn in cash. The long-term goal of the funding system is that the personnel will become a significant shareholder group in the company. All persons working at Aspo Group's Finnish companies are members of the personnel fund. In 2015, the Board of Directors of Aspo Plc approved a share-based incentive plan for about 30 persons. The plan includes three earnings periods, the calendar years 2015, 2016 and 2017. The Board of Directors will decide on the plan's performance criteria and required performance levels for each criterion at the beginning of each earnings period. The reward from the earnings period 2015 was based on the Group's earnings per share (EPS). In 2016, on the basis of the 2015 earnings period, employees included in the plan received 88,970 treasury shares as a share-based reward, as well as cash equaling the value of the shares in order to pay taxes. The reward from the 2016 earnings period was based on the Group's earnings per share (EPS). On the basis of the 2016 earnings period, employees included in the plan will receive 26,040 treasury shares as a share-based reward, as well as cash equaling the value of the shares at most in order to pay taxes. In accordance with the rules of incentive plans a total of 5,275 treasury shares, originally granted on the basis of share-based incentive plans, were returned due to ended contracts of employment. RESEARCH AND DEVELOPMENT Aspo Group's R&D focuses, according to the nature of each segment, on developing operations, procedures and products as part of the customer-specific operations, which means that the development inputs are included in normal operational costs and are not itemized. ENVIRONMENT Aspo Group's operations do not have any significant environmental impact. The Group companies follow Aspo's environmental policy with the main principle of continuously improving operations. Throughout its operations, Aspo supports the principles of sustainable development. Aspo looks after the environment by taking initiatives and continuously monitoring the laws and recommendations connected to its operation and any revisions to these. Aspo wants to be a pioneer in all of its operations and also anticipates future developments in environmental regulations. RISKS AND RISK MANAGEMENT Aspo's operating environment remained a highly challenging one throughout the year. In general, the economy of each of Aspo's operating countries decreased throughout the year, but at the end of the year there were signs of recovery in different areas. In western countries, national economies are growing slowly, while the decline has slowed down in the east. During the fourth quarter, imports in Russia, a country important to Aspo, turned into an increase and the full-year increase in oil prices strengthened the ruble. In Russia, the rate of inflation stopped at the 2012 level during the fourth quarter and, in particular, the prices of food products are increasing more slowly than in previous years. Cargo prices increased slowly throughout the year. A slow turn for the better can also be seen in decreasing risks in all of Aspo's businesses. Nevertheless, quick changes in international politics, exchange rates or commodities markets may have an impact on demand for and the competitiveness of products of Aspo's companies. Growth in eastern and western markets was still limited by the slow demand for investment assets. Strategic risks In addition to the western markets, Aspo operates in areas where financial development may quickly become negative or positive, as a result of which there may be significant changes in business preconditions. Due to an increase in the prices of imported products in Russia and Ukraine, consumer demand slowed down and the economy contracted. During the fourth quarter, the Russian economy only contracted to a small extent and inflation slowed down significantly. According to estimates, the Russian economy will start growing during 2017. Slower consumption demand has affected trade, but the increase in nominal salaries gives signs of growing consumption. No signs of further decline were visible in the financial markets and payments in Russia and Ukraine. Companies are more eager to make investments, while caution still slows down the sale of investment commodities. In Russia, the impact of increased prices of imported goods and financial sanctions has been reduced through the means of local procurement and production. An increasing volume of raw materials and goods produced in Russia has been entered into use by the industry, regardless of their lower quality. This may reduce the position of imported raw materials in the value chain and the margin level. However, an increase in import volumes may correspondingly reduce related risks faced by Aspo. Political risks have increased, which may quickly affect Aspo's operating environment or decrease free trade in the long term. The weaker economic and political situation in Aspo's market areas may have made it more difficult to implement the structural changes defined in Aspo's strategy. This situation may continue unchanged, but, if the economic and political pressure alleviates, it may be reversed fairly quickly. Financial sanctions or any other obstacles caused by the current situation in Russia may, in part, reduce transportation volumes from Russia and there may be a decrease in unloading services for large ocean liners at sea. The social objective to reduce the consumption of coal in energy production in Finland and the rest of Europe has increased in significance, which may reduce the need to transport coal. Correspondingly, the need for replacement energy products may increase transportation. For these reasons, it is difficult to estimate future transportation volumes. The low level of international cargo indices and a global increase in vessels, especially in larger size categories, have increased uncertainty over the long-term profitability of shipping companies, even though there are signs of stabilization in cargo indices and the number of vessels. In addition to the internationally poor economic situation and the political atmosphere, strategic risks are caused by the outlook and production solutions of industrial customers. Decisions on energy production structures affected by the environmental policy and other political choices may cause changes in industry and energy production that may decrease the use of fossil fuels and increase the use of alternative forms of energy. The flow of goods in the Baltic Sea may change as a result of steel production, cost structures, changes in the customer structure, such as consolidation, or other reasons. These changes may have negative consequences on operations as the need for transportation decreases, but they may also be seen as significant opportunities. As a result of low cargo prices in international shipping, competition over cargoes may also intensify in the Baltic Sea and also because of mild and iceless winters. To improve its competitive position, ESL Shipping is building new low-emission vessels with a high fuel economy suitable for this area and for customers operating in this area. Strategic risks are affected by long-term changes in cargo prices, investment trends, and changes in trade structures, especially in western markets. In the eastern markets, risks are increased by such factors as political instability, social structures or the lack of any reaction to the difficulties encountered by business operations. Any accumulation and discharge of investments in the long term may cause changes in the competitive situation and customer behavior. Rapid changes in financial structures may cause risks due to changes in the customer or principal structure or technologies, and due to unutilized opportunities that require a quick response. Aspo's strategic risks are evened out by the distribution of business operations over four segments, its engagement in business operations in a broad geographical area, and its ability to react quickly to changing situations. Operational risks Even though economic uncertainty in Aspo's operating environment decreased during the period under review, operational risks have remained unchanged. These include risks related to supply chains and individuals. The focus of Aspo's growth has for long been on emerging market areas, where risks that decelerate growth are affected by factors such as the exchange and interest rates, level of and changes in the global market prices for raw materials, industrial and commercial investments, customer liquidity, changes in legislation and import regulations, and inactivity or non-neutrality of the authorities or corruption. Economic growth and, alternatively, any decrease in production may have an impact on demand for raw materials in the eastern markets. Political and economic instability makes commercial activities more difficult and, if the situation prolongs, it may also decelerate the growth of Aspo's businesses. Consumer behavior is also reflected in the risks generated through B-to-B customers and their risk levels. The growth opportunities presented by emerging markets boost interest among competitors in launching or expanding business in these areas. The challenging emerging markets and the escalated situation in Ukraine have also caused competitors to withdraw from the area, which has created new potential for Aspo's businesses, increased their market shares and, in some business areas, even improved profitability. The competition has returned to normal level, for example, in Ukraine. Hedging against exchange rate changes is not possible in all situations, and especially without interruptions. Changes in exchange rates may weaken results and also reduce equity on the balance sheet as a result of translation differences. On the other hand, changes in exchange rates may strengthen results and the balance sheet. As changes in credit loss risks are diversified across businesses and customers, Aspo's businesses have not been subjected to any significant credit losses, even though credit loss risks have increased. The quantity and probability of the Group's loss risks are assessed regularly. A bidding process was launched for non-life insurance and the amounts insured were updated in 2016. The amounts insured are sufficient in view of the scope of Aspo's operations, but insurance companies may restrict the validity of insurance policies, as a result of risks increasing for various reasons for example military operations. Internal control and risk management One of the responsibilities of Aspo's Audit Committee is to monitor the efficiency of the Group's internal supervision, internal audits, and risk management systems. The Audit Committee monitors the risk management process and carries out necessary measures to prevent strategic risks in particular. In accordance with the internal control principles approved by the Board of Directors, risk management is part of Aspo's internal control, and its task is to ensure the implementation of the Group's strategy, development of financial results, shareholder value, dividend payment ability, and continuity in business operations. The operational management of each business is responsible for risk management. The management is responsible for specifying sufficient measures and their implementation, and for monitoring and ensuring that the measures are implemented as part of day-to-day management of operations. The risks of Telko and ESL Shipping were re-assessed during the fourth quarter, and those of other businesses will be updated at the beginning of 2017. Risk management is coordinated by Aspo's CFO, who reports to the Group CEO. Aspo Group's financing and financing risk management are centralized in the parent company in accordance with the treasury policy approved by the Board of Directors. A more detailed account of the risk management policy and the most significant risks is available on the company's website. More detailed information on financing risks can be found in the notes to the financial statements.  SHARE CAPITAL AND SHARES Aspo Plc's share capital on December 31, 2016 was EUR 17,691,729.57 and the total number of shares was 30,975,524 of which the company held 396,226 shares; that is 1.3% of the share capital. Aspo Plc has one share series. Each share entitles the shareholder to one vote at the shareholders' meeting. Aspo's share is quoted on Nasdaq Helsinki Oy's Mid Cap segment under industrial products and services. During January-December 2016, a total of 2,490,725 Aspo Plc shares with a market value of EUR 17.3 million were traded on Nasdaq Helsinki, in other words, 8.0% of the shares changed hands. During January-December 2016, the share price reached a high of EUR 8.21 and a low of EUR 6.00. The average price was EUR 6.95 and the closing price at year-end was EUR 8.18. At the end of the year, the market value excluding treasury shares was EUR 250.1 million.  The number of Aspo Plc shareholders was 9.236 at year-end. A total of 697.919 shares, or 2.3% of the share capital, were nominee registered or held by non-domestic shareholders. Aspo Plc's new trading code (stock symbol) in Nasdaq Helsinki is ASPO. Previously it was ASU1V. The new trading code was effective on June 27, 2016. Flagging notification On May 31, 2016 shareholder Tatu Vehmas informed that Aatos Vehmas and Liisa Vehmas have authorized him to use the voting rights of Aspo shares owned by them so that his share of the voting rights in Aspo Plc has increased above five per cent (5%). DIVIDEND PROPOSAL The Board of Directors proposes that EUR 0.42 (0.41) per share be paid in dividends for the 2016 financial year and that no dividend be paid for treasury shares held by Aspo Plc. The parent company's distributable funds totaled EUR 31,495,378.54, of which the profit for the financial year amounted to EUR 12,804,309.73. There are a total of 30,579,298 shares entitling to dividends on the publication date of this financial statement release. The dividend will be paid in two installments. The first installment of EUR 0.21 per share will be paid to shareholders who are registered in the shareholders' register maintained by Euroclear Finland Oy on the record date of April 7, 2017. The Board of Directors proposes that the dividend be paid on April 18, 2017. The second installment of EUR 0.21 per share will be paid in November 2017 to shareholders who are registered in the shareholders' register maintained by Euroclear Finland Oy on the record date. At its meeting to be held on October 26, 2017, the Board of Directors will decide on the record and payment dates of the second installment, in accordance with the rules of the Finnish book-entry securities system. According to the current system, the dividend record date would be October 30, 2017 and the payment date would be November 6, 2017. If Euroclear Finland Oy adopts the new core system before the meeting of the Board of Directors, the dividend is expected to be paid a few days earlier. Before the Board of Directors implements the resolution of the Annual Shareholders' Meeting, the Board of Directors must, in accordance with the Finnish Companies Act, assess whether the company's solvency and/or financial position has changed after the resolution of the Annual Shareholders' Meeting so that the requirements for dividend distribution in the Finnish Companies Act are no longer fulfilled. It is a prerequisite for the implementation of the resolution of the Annual Shareholders' Meeting that the requirements in the Finnish Companies Act are fulfilled. MANAGEMENT AND AUDITORS In 2016, the Annual Shareholders' Meeting re-elected to the Board of Directors LL.M, MBA Mammu Kaario, LL.M. Roberto Lencioni, B.Sc. (Econ.), eMBA Gustav Nyberg and M.Sc. (Tech.) Risto Salo and M.Sc. (Econ.) Mikael Laine and D.Sc. (Econ.) Salla Pöyry were elected as new members of the Board of Directors. At the Board's organizing meeting held after the Annual Shareholders' Meeting, Gustav Nyberg was elected as Chairman of the Board and Roberto Lencioni as Vice-Chairman. At the meeting the Board also decided to appoint Roberto Lencioni Chairman of the Audit Committee and Mammu Kaario, Mikael Laine and Salla Pöyry as committee members. In 2016, the Board of Directors arranged 11 meetings, of which four were teleconferences. The average participation rate was 99%.  eMBA Aki Ojanen has acted as the CEO of the company. The authorized public accountant firm Ernst & Young Oy has been the company's auditor. Harri Pärssinen, APA, has acted as the auditor in charge. DECISIONS OF THE SHAREHOLDERS' MEETINGS Dividend The Annual Shareholders' Meeting of Aspo Plc on April 7, 2016, approved the payment of a dividend totaling EUR 0.41 per share according to the Board's proposal. The dividend's payment date was April 18, 2016. Shareholders' Nomination Board The Annual Shareholders' Meeting decided to establish a permanent Shareholders' Nomination Board to prepare proposals to the Annual Shareholders' Meeting for the election and remuneration of the members of the Board of Directors and the remuneration of the Board committees. In addition, the Meeting adopted the Charter of the Shareholders' Nomination Board. Board authorizations Authorization of the Board of Directors to decide on the acquisition of treasury shares The Annual Shareholders' Meeting on April 7, 2016 authorized the Board of Directors to decide on the acquisition of no more than 500,000 of the treasury shares using the unrestricted equity of the company. The authorization includes the right to accept treasury shares as a pledge. The authorization will remain in force until the Annual Shareholders' Meeting in 2017 but not more than 18 months from the approval at the Shareholders' Meeting. The Board of Directors has not used the authorization. Authorization of the Board of Directors to decide on a share issue of treasury shares The Annual Shareholders' Meeting on April 9, 2015 authorized the Board of Directors to decide on a share issue, through one or several instalments, to be executed by conveying treasury shares. An aggregate maximum amount of 900,000 shares may be conveyed based on the authorization. The authorization will remain in force until September 30, 2018. The Board of Directors has used the authorization on March 18, 2016 and granted 88,970 treasury shares to employees included in the earnings period 2015 of the share-based incentive plan 2015-2017. Authorization of the Board of Directors to decide on a rights issue The Annual Shareholders' Meeting on April 9, 2015. authorized the Board of Directors to decide on a rights issue for consideration. The authorization is proposed to include the right of the Board of Directors to decide on all of the other terms and conditions of the conveyance and thus also includes the right to decide on a directed share issue, in deviation from the shareholders' pre-emptive right, if a compelling financial reason exists for the company to do so. The total number of new shares to be offered for subscription may not exceed 1,500,000. The authorization will remain in force until September 30, 2018. The Board of Directors has not used the authorization. PROPOSALS OF THE NOMINATION BOARD TO THE SHAREHOLDERS' MEETING The Shareholders' Nomination Board consists of the representatives of the four largest shareholders. According to the list of shareholders as of August 31, 2016, the following representatives of the largest shareholders were members of the Nomination Board which prepared proposals for the Annual Shareholders' Meeting 2017: Tatu Vehmas, Chairman (Vehmas family); Veronica Timgren (Nyberg family, including Oy Havsudden Ab); Reima Rytsölä (Varma Mutual Pension Insurance Company); and Mikko Mursula (Ilmarinen Mutual Pension Insurance Company). In addition, Gustav Nyberg, Chairman of Aspo Board of Directors, has acted as an expert member of the Nomination Board. The Nomination Board of Aspo Plc's shareholders proposes to the Annual Shareholders' Meeting of Aspo Plc to be held on April 5, 2017 that the Board of Directors will have six members. Members of the Board The Nomination Board proposes that Mammu Kaario, Mikael Laine, Roberto Lencioni, Gustav Nyberg, Salla Pöyry and Risto Salo, current members of the company's Board of Directors, be re-elected as members of the Board of Directors for the term closing at the end of the Annual Shareholders' Meeting 2018. Remuneration paid to the members of the Board The Nomination Board proposes that members of the Board of Directors receive the following monthly remuneration: The Nomination Board proposes that the meeting fees paid to members of the Audit Committee remain unchanged, i.e. EUR 700 per meeting. However, the Nomination Board proposes that 1.5 × the meeting fee paid to members of the Audit Committee be paid to the Chairman of the Audit Committee, i.e. EUR 1,050 per meeting (EUR 700 per meeting in 2016). If the Chairman of the Audit Committee is also the Vice Chairman or the Chairman of the Board of Directors, the Nomination Board proposes that the fee paid to the Chairman of the Audit Committee is the same as that paid to members of the Audit Committee. Board members having a full-time position in an Aspo Group company are not paid a fee. LEGAL PROCEEDINGS On February 27, 2015, the Helsinki District Court announced its judgement in the case between ESL Shipping and the Finnish State regarding fairway dues levied during the years 2001-2004. According to the judgement, the Finnish State will be required to refund to ESL Shipping approximately EUR 3,0 million in accordance with the company's claim, as well as legal expenses and interest. The State lodged an appeal against the District Court's judgement and, in its ruling issued on August 8, 2016, the Court of Appeal overruled the Helsinki District Court's judgement and dismissed ESL Shipping's legal action as time-barred. The company has applied for a leave to appeal from the Supreme Court. The shipping company won legal proceedings against Indian ABG Shipyard concerning the compensation payable for repairs made to m/s Alppila during the warranty period. The vessel was delivered to ESL Shipping in 2011. According to the ruling of the arbitration court, ABG Shipyard was required to refund the repair expenses and interest to ESL Shipping according to the company's claims. The impact of ruling will be taken into account during the financial year over which the imposed payment is received. Helsinki February 15, 2017 ASPO Plc Board of Directors ASPO GROUP CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ACCOUNTING PRINCIPLES Aspo Plc's financial statement release has been prepared in accordance with the principles of IAS 34 Interim Financial Reporting. As of January 1, 2016, Aspo applies certain new or amended IFRS standards and IFRIC interpretations as described in the 2015 financial statements. The adoption of these new or amended standards has not had any substantial impact on the reported figures. In other respects, the same accounting principles have been adopted as in the consolidated financial statements on December 31, 2015. The information in this report is unaudited. Aspo Plc has adopted the guidance on alternative key figures issued by the European Securities and Market Authority (ESMA). In addition to IFRS figures, the company releases other commonly used key figures which are mainly derived from the statement of comprehensive income and balance sheet. According to the management, key figures clarify the picture drawn by the statement of comprehensive income and balance sheet of Aspo's financial performance and financial position. The calculation formulas of key figures have been described on page 70 of the Year 2015 report. SEGMENT REPORTING Aspo Group's operational segments are ESL Shipping, Leipurin, Telko and Kauko. Other operations consists of Aspo Group's administration, the financial and ICT service center, and a small number of other functions not covered by business units.  The Group reports its net sales on the basis of the following geographical division: Finland; Scandinavia; the Baltic countries; Russia, Ukraine and other CIS countries; and other countries. PRESS AND ANALYST CONFERENCE A press and analyst conference will be arranged today, Wednesday February 15, 2017 at 14.00 at the Paavo Nurmi cabinet at Hotel Kämp, Pohjoisesplanadi 29, 00100 Helsinki. ANNUAL SHAREHOLDERS' MEETING The Aspo Plc Annual Shareholders' Meeting is scheduled to be held on Wednesday, April 5, 2017, at 14.00 in Helsinki.  FINANCIAL INFORMATION IN 2017 Aspo's financial statement will be published on March 15, 2017 at the latest in Finnish and in English. You can read and order the report on our website at www.aspo.com. In 2017, Aspo Plc will publish two interim reports and a half year financial report: - interim report for January-March on Tuesday, May 9, 2017 - half year financial report for January-June on Tuesday, August 15, 2017 - interim report for January-September on Thursday, October 26, 2017. Helsinki, February 15, 2017 ASPO Plc For more information: Aki Ojanen, 09 521 4010, 0400 106 592, aki.ojanen (a)aspo.com DISTRIBUTION: Nasdaq Helsinki Key media www.aspo.com Aspo is a conglomerate that owns and develops businesses in Northern Europe and growth markets focusing on demanding B-to-B customers. The aim of our strong corporate brands - ESL Shipping, Leipurin, Telko and Kauko - is to be the market leaders in their sectors. They are responsible for their own operations, customer relationships and the development of these. Together they generate Aspo's goodwill. Aspo's Group structure and business operations are developed persistently without any predefined schedules.


News Article | February 22, 2017
Site: www.marketwired.com

TORONTO, ON--(Marketwired - February 22, 2017) - Hudbay Minerals Inc. ("Hudbay" or the "company") (TSX: HBM) ( : HBM) today released its fourth quarter 2016 financial results. All amounts are in US dollars, unless otherwise noted. Operating cash flow before change in non-cash working capital increased to $122.3 million in the fourth quarter of 2016 from $117.4 million in the same quarter of 2015. While sales volumes were lower compared to the same quarter last year, we benefited from lower operating costs and higher realized prices on all metals. Operating cash flow before change in non-cash working capital increased to $387.9 million in 2016 from $231.8 million in 2015. This increase reflects the first full year of commercial production from the Constancia mine in 2016 and the resulting growth in sales volumes of all metals. The increase in sales volumes and associated economies of scale in 2016 were complemented by lower operating costs and an increase in realized sales prices for zinc and precious metals compared to last year. 1 Cash cost and all-in sustaining cash cost, net of by-product credits, per pound of copper produced, operating cash flow per share, and net debt are not recognized under IFRS. For a detailed description of each of these non-IFRS financial performance measures, please see the discussion under "Non-IFRS Financial Performance Measures" on page 7 of this news release. "In 2016, we focused on generating cost efficiencies at our operations, while maintaining strong production results, and those efforts paid off with positive free cash flow generation in a year of cyclical low copper prices," said Alan Hair, president and chief executive officer. "We will continue to focus on efficiency improvements and debt reduction in 2017, in addition to advancing high-return in-house brownfield opportunities, such as increasing the throughput from the Lalor mine and developing the Pampacancha deposit at Constancia." Net loss and loss per share in the fourth quarter of 2016 were $47.3 million and $0.20, respectively, compared to a net loss and loss per share of $255.5 million and $1.09, respectively, in the fourth quarter of 2015. While the fourth quarter of 2016 benefited from an increase in gross profit of $19.4 million compared to the same period last year, this was offset in part by $49.9 million in costs primarily relating to the call premium paid to facilitate the early redemption of Hudbay's $920 million of 9.50% senior unsecured notes due 2020 (the "Redeemed Notes"). Net loss and loss per share in the fourth quarter of 2016 were affected by, among other things, the following items: Hudbay's operations achieved strong quarterly consolidated copper-equivalent production2 and continued low cash costs in both Peru and Manitoba. In the fourth quarter of 2016, consolidated cash cost per pound of copper produced, net of by-product credits, was $0.85, a significant decrease compared to $1.24 in the same period last year. Incorporating sustaining capital, capitalized exploration, royalties and corporate selling and administrative expenses, consolidated all-in sustaining cash cost per pound of copper produced, net of by-product credits, in the fourth quarter of 2016 declined to $1.46 from $2.00 in the fourth quarter of 2015. The decline was driven by substantial reductions in sustaining capital expenditures. The annual cost reduction initiatives announced on February 24, 2016 were achieved as demonstrated through a 4% and 11% reduction in unit operating costs in Peru and Manitoba, respectively, and a 31% reduction in total sustaining capital expenditures, year-over-year, in addition to offsite cost reductions. Actual operating and capital costs were at or below the revised guidance for 2016 provided on February 24, 2016. 2 Production on a copper-equivalent basis is calculated by converting contained metal in concentrate produced at realized prices. Cash and cash equivalents increased by $28.6 million in the fourth quarter of 2016 to $146.8 million as at December 31, 2016. This increase was mainly a result of operating cash flow of $140.1 million, partly offset by $43.5 million of capital investments primarily at Hudbay's Peru and Manitoba operations, and principal repayments under the revolving credit facilities of $64.0 million during the fourth quarter. Net debt declined to $1,085.3 million at December 31, 2016 from $1,105.2 million at September 30, 2016. Hudbay's outstanding senior unsecured debt increased by $80.0 million upon completion of the refinancing of the Redeemed Notes in the fourth quarter of 2016. The US$1.0 billion of New Notes (as defined below) have extended maturity dates, significantly reduced interest costs and a more flexible covenant structure. The increase in debt related to the New Notes was more than offset by strong cash flow generation from the business, which was utilized in part to repay debt on the revolving credit facilities. During the fourth quarter of 2016, the Constancia mine produced 33,986 tonnes of copper, 5,033 ounces of gold and 723,392 ounces of silver, which remained relatively consistent with the same period in 2015. Full year production of copper, gold and silver was 26%, 39% and 39% higher, respectively, than the full year in 2015, reflecting the ramp-up of Constancia to full production and the improvements in recoveries made in the last year. Production of all metals at Constancia was above the guidance ranges for 2016. Ore mined during the fourth quarter of 2016 decreased by 25% compared to the same period in 2015 as ore production rates were aligned to mill throughput rates. Mined and milled copper grades in the fourth quarter of 2016 were approximately 8% lower than the same period in 2015 as the mine plan continues to advance to lower levels in the pit. Optimization of plant performance remains the primary focus for Constancia. Total copper recovery was 81.6% in the fourth quarter of 2016, compared to 79.8% in the same period in 2015, as oxidized copper in the ore feed was lower in the current quarter and the metallurgy associated with the varying ore types is better understood. Gold and silver recoveries also improved in 2016 compared to 2015. Recoveries of all metals were slightly lower in the fourth quarter of 2016 compared to the third quarter as mining began on phase two of the Constancia open pit where the initial near-surface ore contains a greater amount of altered and oxidized mineralization. Combined mine, mill and general and administrative ("G&A") unit operating costs were $7.98 per tonne in the fourth quarter of 2016 and $8.09 per tonne for the full year 2016. Unit operating costs benefitted from lower mining costs due to ongoing improvement initiatives. Combined unit operating costs were within guidance expectations. Cash cost per pound of copper produced, net of by-product credits, for the three months and year ended December 31, 2016 were $1.11 and $1.09, respectively, a decrease from the same periods in 2015 of 16% and 6%, respectively, as a result of continued cost optimization and maintenance timing. Sustaining cash cost per pound of copper produced, net of by-product credits, for the three months and year ended December 31, 2016 were $1.54 and $1.51, respectively, a decrease from the same period in 2015 of 20% and 21%, respectively, as a result of lower capital costs from tailings impoundment construction. As is typical with large Peruvian mining operations following startup, some of the employees at Constancia have formed a labour union. Negotiations to establish an initial collective agreement are ongoing with representatives of the union. During the fourth quarter of 2016, the Manitoba operations produced 9,797 tonnes of copper and 29,144 tonnes of zinc, which were lower than the same period in 2015 mainly as a result of lower mill throughput as well as lower grades at the Lalor mine. However, production of gold and silver was higher than the fourth quarter of 2015 by 11% and 17%, respectively, as a result of higher gold and silver recoveries. During the full year 2016, production of copper was consistent with 2015 levels while production of the other metals increased compared to 2015 as a result of increased production at Lalor and 777. Production of all metals in Manitoba was within guidance ranges for 2016. Ore mined at Hudbay's Manitoba mines during the fourth quarter of 2016 decreased by 13% compared to the same period in 2015 primarily as a result of lower production at the 777 mine. Ore mined at the 777 mine declined as ground conditions necessitated the implementation of a more conservative stope sequence in order to adapt to more challenging operating conditions as the mine ages. Overall copper and zinc grades were lower in the fourth quarter of 2016 compared to the same period in 2015 by 8% and 4%, respectively, due to lower grades at Lalor and Reed. Full year ore production at Hudbay's Manitoba mines in 2016 was 7% higher than in 2015 as a result of increased production at the Lalor and 777 mines. Copper, zinc and gold grades in 2016 were lower compared with the grades in 2015 by 9%, 3% and 6%, respectively, and silver grades were higher by 7%. Ore processed in the Flin Flon concentrator in the fourth quarter of 2016 was 3% lower than the same period in 2015 primarily as a result of lower mine production. Zinc and precious metals recoveries were higher in the fourth quarter of 2016 compared to the same period in 2015 as a result of higher head grades. For the full year, ore processed in Flin Flon was 5% higher than in 2015 as a result of higher mine production at the 777 mine, partially offset by unscheduled maintenance. Copper and zinc recoveries in 2016 were fairly consistent with 2015, while precious metals recoveries were higher as a result of higher head grades. Ore processed at the Stall concentrator in the fourth quarter of 2016 was consistent with the same period in 2015. For the full year, ore processed at Stall was 17% higher than in 2015 as a result of higher production at Lalor. Manitoba combined mine, mill and G&A unit operating costs in the fourth quarter and full year in 2016 were C$96.38 per tonne and C$92.77 per tonne, respectively, 4% and 11% lower than in the same periods in 2015 as a result of ongoing cost reduction initiatives. Combined unit operating costs were within guidance expectations. Cash cost per pound of copper produced, net of by-product credits, in the fourth quarter of 2016 and full year were negative $0.06 and $0.41 per pound of copper produced, respectively. These were lower compared to the same periods in 2015 due to higher realized zinc prices, decreased purchases of zinc concentrate for processing, and a decrease in general support costs as a result of cost reduction initiatives. Full year 2016 cash cost was positively impacted by increased sales of precious metals. Sustaining cash cost per pound of copper produced, net of by-product credits, in the fourth quarter of 2016 and full year were $0.58 and $1.16 per pound of copper produced, respectively, representing a decrease of 70% and 43% per pound, respectively, compared to the same periods in 2015. The decrease in sustaining costs resulted from the same factors impacting results in the fourth quarter described above as well as reduced capital expenditures. On December 12, 2016, Hudbay completed an offering of $1.0 billion aggregate principal amount of senior notes (the "New Notes") in two series: (i) a series of 7.250% senior notes due 2023 in an aggregate principal amount of $400 million and (ii) a series of 7.625% senior notes due 2025 in an aggregate principal amount of $600 million. The New Notes are governed by an indenture, dated as of December 12, 2016, among the company, the subsidiaries of the company party thereto as guarantors and U.S. Bank National Association, as trustee. The proceeds from this offering were used to redeem all US$920 million of Hudbay's outstanding Redeemed Notes and to pay a call premium of $47.7 million, prepaid interest associated with the redemption of the Redeemed Notes and transaction costs associated with the New Notes. Hudbay declared a semi-annual dividend of C$0.01 per share on February 22, 2017. The dividend will be paid on March 31, 2017 to shareholders of record as of March 10, 2017. Operating cash flow per share is included in this news release because the company believes it help investors and management evaluate changes in cash flow generated from the various operations while taking into account changes in shares outstanding. Net debt is shown because it is a performance measure used by the company to assess its financial position. Cash cost, sustaining and all-in sustaining cash cost per pound of copper produced are shown because the company believes they help investors and management assess the performance of its operations, including the margin generated by the operations and the company. These measures do not have a meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. These measures should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS and are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate these measures differently. For further details on these measures, including reconciliations to the most comparable IFRS measures, please refer to page 40 of Hudbay's management's discussion and analysis for the three months and year ended December 31, 2016 available on SEDAR at www.sedar.com and EDGAR at www.sec.gov. The technical and scientific information in this news release related to the Constancia mine has been approved by Cashel Meagher, P. Geo, Hudbay's Senior Vice President and Chief Operating Officer. The technical and scientific information related to all other sites and projects contained in this news release has been approved by Robert Carter, P. Eng, Hudbay's Lalor Mine Manager. Messrs. Meagher and Carter are qualified persons pursuant to NI 43-101. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources, as well as data verification procedures and a general discussion of the extent to which the estimates of scientific and technical information may be affected by any known environmental, permitting, legal title, taxation, sociopolitical, marketing or other relevant factors, please see the Technical Reports for the company's material properties as filed by Hudbay on SEDAR at www.sedar.com. This news release contains forward-looking information within the meaning of applicable Canadian and United States securities legislation. All information contained in this news release, other than statements of current and historical fact, is forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "budget", "guidance", "scheduled", "estimates", "forecasts", "strategy", "target", "intends", "objective", "goal", "understands", "anticipates" and "believes" (and variations of these or similar words) and statements that certain actions, events or results "may", "could", "would", "should", "might" "occur" or "be achieved" or "will be taken" (and variations of these or similar expressions). All of the forward-looking information in this news release is qualified by this cautionary note. Forward-looking information includes, but is not limited to, production, cost and capital and exploration expenditure guidance, including anticipated capital and operating cost savings and anticipated production at the company's mines and processing facilities, the anticipated timing, cost and benefits of developing the Pampacancha deposit and Lalor paste backfill plant, anticipated mine plans, anticipated metals prices and the anticipated sensitivity of the company's financial performance to metal prices, events that may affect its operations and development projects, anticipated cash flows from operations and related liquidity requirements, the potential outcome of labour negotiations in Peru, the anticipated effect of external factors on revenue, such as commodity prices, economic outlook, government regulation of mining operations, and business and acquisition strategies. Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by Hudbay at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that Hudbay identified and were applied by the company in drawing conclusions or making forecasts or projections set out in the forward-looking information include, but are not limited to: The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information may include, but are not limited to, risks generally associated with the mining industry, such as economic factors (including future commodity prices, currency fluctuations, energy prices and general cost escalation), uncertainties related to the development and operation of Hudbay's projects (including risks associated with the economics and permitting of the Rosemont project and related legal challenges), risks related to the maturing nature of the 777 mine and its impact on the related Flin Flon metallurgical complex, dependence on key personnel and employee and union relations, risks related to political or social unrest or change, risks in respect of aboriginal and community relations, rights and title claims, operational risks and hazards, including unanticipated environmental, industrial and geological events and developments and the inability to insure against all risks, failure of plant, equipment, processes, transportation and other infrastructure to operate as anticipated, compliance with government and environmental regulations, including permitting requirements and anti-bribery legislation, depletion of Hudbay's reserves, volatile financial markets that may affect Hudbay's ability to obtain additional financing on acceptable terms, the permitting and development of the Rosemont project not occurring as planned, the failure to obtain required approvals or clearances from government authorities on a timely basis, uncertainties related to the geology, continuity, grade and estimates of mineral reserves and resources, and the potential for variations in grade and recovery rates, uncertain costs of reclamation activities, the company's ability to comply with its pension and other post-retirement obligations, Hudbay's ability to abide by the covenants in its debt instruments and other material contracts, tax refunds, hedging transactions, as well as the risks discussed under the heading "Risk Factors" in the company's most recent Annual Information Form. Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, you should not place undue reliance on forward-looking information. Hudbay does not assume any obligation to update or revise any forward-looking information after the date of this news release or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law. This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which may differ materially from the requirements of United States securities laws applicable to U.S. issuers. Hudbay (TSX: HBM) ( : HBM) is an integrated mining company producing copper concentrate (containing copper, gold and silver) and zinc metal. With assets in North and South America, the company is focused on the discovery, production and marketing of base and precious metals. Directly and through its subsidiaries, Hudbay owns four polymetallic mines, four ore concentrators and a zinc production facility in northern Manitoba and Saskatchewan (Canada) and Cusco (Peru), and a copper project in Arizona (United States). The company's growth strategy is focused on the exploration and development of properties it already controls, as well as other mineral assets it may acquire that fit its strategic criteria. Hudbay's vision is to become a top-tier operator of long-life, low-cost mines in the Americas. Hudbay's mission is to create sustainable value through the acquisition, development and operation of high-quality and growing long-life deposits in mining-friendly jurisdictions. The company is governed by the Canada Business Corporations Act and its shares are listed under the symbol "HBM" on the Toronto Stock Exchange, New York Stock Exchange and Bolsa de Valores de Lima. Hudbay also has warrants listed under the symbol "HBM.WT" on the Toronto Stock Exchange and "HBM/WS" on the New York Stock Exchange.


News Article | March 2, 2017
Site: globenewswire.com

Movement in NAV over the period SEK NAV per share +2.3% MoM and +2.2% since last published quarterly NAV (Dec 2016). USD NAV per share -0.2% MoM and +2.6% since last published quarterly NAV (Dec 2016). The majority of the change in monthly published NAV was a result of the weakening SEK vs USD. As at Feb 28, 2017 VEF share price (VEMF SDB) traded at a 14.6% discount to reported NAV. The adjusted discount to NAV, stripping out portfolio cash and liquid assets at book value is 20.0%. Net cash and liquid investments amounted to USD 40.0 mln (27.0% of total NAV) as at end of period. The number of outstanding shares as of February 28, 2017 was 661.5 mln. This report has not been subject to review by the company's auditors. Key figures included in this NAV report are categorized as Alternative Performance Measures (APMs) which are financial measures not defined or specified in the applicable financial reporting framework IFRS. As such, these measurements have limitations and should not be used as a substitute for measures of performance in accordance with IFRS. For further information please contact: Björn von Sivers, Investor Relations, Tel +46 (0)8 545 015 50 Vostok Emerging Finance is an investment company with the goal of investing in early stage modern financial services companies across emerging and frontier markets. VEF trades in Sweden on Nasdaq First North under the ticker VEMF SDB. Vostok Emerging Finance’s Certified Adviser on Nasdaq First North is Pareto Securities AB. This information is information that Vostok Emerging Finance Ltd is required to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08.00 CET on March 2, 2017.


News Article | February 27, 2017
Site: globenewswire.com

Proposal to distribute 100% of 2016 Group net income which corresponds to a total amount of MAD 5.6 billion, in the form of MAD 6.36 per share representing a return of 4.5%*. On the occasion of the publication of this press release, Abdeslam Ahizoune, Chairman of the Management Board, stated: "Maroc Telecom Group has ended its fiscal year 2016 with results exceeding expectations. This confirms the dynamic growth in Morocco and internationally as well as the strength of Maroc Telecom strategic vision. The focus in 2017 will be on strengthening its leadership, the growth of its subsidiaries in Africa, the quality of its networks, underpinned by heavy capital investment and a continuous policy of cost control. The successful implementation of a voluntary redundancy plan for employees in Morocco will allow the rejuvenation of its human resources. Maroc Telecom is therefore heading into 2017 quite confident, given the commitment and dedication of its teams and due to its ability to adjust to any technological and market developments." *Based on its share price on February 24, 2017 (MAD 140). The Group's customer base comprised more than 54 million customers at end-2016, up steadily 6.3% year-on-year thanks mainly to the African subsidiaries which grew their customer base by 10%. As of December-end 2016, the Maroc Telecom Group reported consolidated revenues (3) of MAD 35,252 million, up 3.3% on the previous year (+2.4% on a like-for-like basis). This performance reflects revenue growth from Moroccan activities (+1.0%) along with a steady international growth (+7.1% on a like-for-like basis). Earnings from operations before depreciation and amortization At 2016-end, Maroc Telecom Group earnings from operations before depreciation and amortization (EBITDA) amounted to MAD 16,909 million, up 1.0% from the previous year (+0.9% on a like-for-like basis). This like-for-like improvement comes from a 5.0% rise in international EBITDA which more than offsets the 1.3% decline in EBITDA of Moroccan activities. Despite a slight 0.7 point like-for-like decline, Group EBITDA margin remained high at 48.0%. At 2016-end, Group consolidated earnings from operations (EBITA)(4) were MAD 10,468 million, up 1.2% compared to 2015 (+1.7% on a like-for-like basis), after incorporation of a MAD-255-million restructuring provision for a voluntary redundancy plan in Morocco. Excluding restructuring, Group EBITA would be MAD 10,723 million, up 3.7% (+3.5% on a like-for-like basis), with a margin of 30.4%, up 0.3 points on a like-for-like basis. Group share of net income was MAD 5,598 million, unchanged from 2015. Excluding restructuring expenses for the voluntary redundancy plan, net income would be up 3.2% to MAD 5,774 million reflecting the increasing contribution of subsidiaries, especially those recently acquired which benefit from business stimulation and cost optimization plans. Cash flow from operating activities (CFFO(5)) was MAD 10,970 million, up 17.2% compared to end-2015 due to the cash impact of MAD 2.7 billion from 2015 license renewals (MAD 33 million in 2016) despite continuing heavy Group capital expenditure in networks amounting to 20.1% of 2016 revenue. Although launched in December 2016, the voluntary redundancy plan will not impact Group cash flow until 2017. As of December 31, 2016, consolidated Maroc Telecom Group debt(6) was down 2.1% to reach MAD 12.3 billion. This represents only 0.7 times the Group's annual EBITDA. The Supervisory Board of Maroc Telecom will propose to the general shareholders' meeting on April 25, 2017 to effect the payment of an ordinary dividend of MAD6.36 per share, representing a total amount of MAD 5.6 billion. This dividend corresponds to 100% of distributable Group share of earnings from 2016. The dividend payment date would be from June 2, 2017. Based on the recent changes in the market, to the extent that no new major exceptional event impacts the Group's business, Maroc Telecom is projecting the following for 2017: During fiscal year 2016, operations in Morocco generated revenues of MAD 21,244 million, up 1.0%. Fixed-Line and Internet activities continued growing (+1.1% compared to 2015) and, along with the larger contribution from subsidiaries, offset the slight decline in Mobile revenues (-1.1%) due to a more stringent regulatory environment. Earnings from operations before interest, amortization and depreciation (EBITDA) were MAD 11,004 million, down 1.3% from 2015 due to lower gross margin and a slight increase in operating costs (+2.4%). Although down 1.2 points, EBITDA margin was still high at 51.8%. Earnings from operations were MAD 6,902 million, down 6.5% reflecting the decline in EBITDA, the 2.3% increase in depreciation charges and the restructuring provisions for the voluntary redundancy plan amounting to MAD 255 million. Excluding restructuring, EBITA was down by 3.1% to MAD 7,157 million, representing a margin of 33.7%. Cash flow from operations in Morocco was up 8.3% at MAD 7,124 million, after paying MAD 926 million in 2015 for 4G licenses and frequencies and despite the faster pace of capital investment in Very High Speed Fixed and Mobile technology that reached 18.4% of 2016 revenue. As of December 31, 2016, the Mobile customer base(7) comprised 18.4 million clients, up 0.4% year-on-year, driven by the 4.9% increase in postpaid customers and Mobile internet subscribers who were up 21% over the year. As for the prepaid customer base was steady over the year. The drop in Mobile revenues continued to lessen (-1.1% in 2016 vs. -6.2% in 2015) thanks to increased Data traffic. The 12.7% decline in prices weighed on Mobile revenues which amounted to MAD 13,806 million, down 1.8% from 2015. Blended 2016 ARPU(9) was nearly MAD 61, slightly down by 2.2% compared to the same period in 2015. With a 96% increase in traffic, Mobile Data continued to take off, supported by the rapid expansion of 3G and 4G+ networks covering 87% and 73% of the population respectively. The Fixed-line customer base was 1.6 million lines at December-end 2016, up 3.6%, driven by the Residential segment which increased its customer numbers by 6.0%. Driven by Double-Play plans, the ADSL base grew by 9.2% to 1.2 million subscribers. Fixed-Line and Internet continued their solid growth with MAD 8,829 million in revenues, up 1.1% compared to the same period the previous year, sustained by the growth of Data whose revenues grew by 7.2%. Financial indicators Since January 26, 2015, the acquisition completion date, international activities include the new subsidiaries in Ivory Coast, Benin, Togo, Niger and Central African Republic, as well as Prestige Telecom which provides IT services to those entities. At December-end 2016, Group international activities reported MAD 15,326 million revenue, up 9.4% (+7.1% on a like-for-like basis) reflecting increasing revenues by new subsidiaries (+14.6% on a like-for-like basis), especially Ivory Coast and Niger, as well as historic subsidiaries (+3.6% at constant change(11)). Earnings from operations before interest and depreciation (EBITDA) at end-2016 amounted to MAD 5,905 million, up 5.5% (+5.0% on a like-for-like basis) despite new taxes and royalties and non-recurring charges. Excluding scope effects (full-year consolidation of new subsidiaries), and non-recurring items, EBITDA margin on international operations would remain stable, with cost optimization programs offsetting new taxes and royalties. Earnings from operations amounted to MAD 3,565 million, up 20.7% (+22.0% on a like-for-like basis) reflecting the increase in EBITDA, and the capital gain realized from the sale of a real estate asset (MAD 297 million). The EBITA margin was 23.3%, up 2.2 points (+2.9 points on a like-for-like basis). Cash flow from international operations was up 38.1% compared to 2015, driven by EBITDA growth, the sale of real estate, and the positive comparative effect from licenses payment in 2015 (in Mauritania, Niger, Gabon, and Côte d'Ivoire) amounting to MAD 1,787  million. Capital expenditure in networks increased to 20.8% of revenues (compared to 16.8% in 2015) to support business growth particularly in Fixed-Line and Mobile Data, and the gain in market share. (1) The like-for-like basis shows the impact of the consolidation of the new African operators as if they had occurred on the 1st of January 2015, and as if the MAD/Ouguiya/ CFA franc exchange rate had remained unchanged. (2) CAPEX corresponds to property, plant, equipment and intangible asset acquisitions recognized over the period. (3) Maroc Telecom includes Mauritel, Onatel, Gabon Telecom, Sotelma and Casanet in its scope of consolidation, as well as the new African subsidiaries in Ivory Coast, Benin, Togo, Niger, the Central African Republic, along with Prestige Telecom, which has provided IT services to these companies since their acquisition on 26 January 2015. (4) EBITA corresponds to EBIT before the amortization of intangible assets acquired through business combinations, before impairment of goodwill and other intangibles acquired through business combinations, and before other income and charges related to financial investments and to transactions with shareholders (except when recognized directly in equity). (5) CFFO comprises pretax net cash flows from operations (see the statement of cash flows), dividends received from affiliates, and unconsolidated equity interests. CFFO also comprises net capital expenditure, which corresponds to net uses of cash for acquisitions and disposals of property, plant, equipment, and intangible assets. (6) Borrowings and other current and non-current liabilities less cash and cash equivalents, including cash held in escrow for bank loans. (7) The active customer base is made up of prepaid customers who have made or received a voice call (other than from public telecommunications network operators (ERPT) or from their customer services centers) or have made an SMS/MMS or used Data services, with the exception of technical exchanges of information with ERPT departments, during the past three months, and postpaid customers who have not terminated their agreements. (8) The active customer base for 3G and 4G+ mobile Internet includes holders of a postpaid subscription agreement (with or without a voice offer) and holders of a prepaid Internet subscription agreement who have made at least one top-up during the past three months or whose top-up is still valid and who have used the service during this period. (9) ARPU is defined as revenues generated by inbound and outbound calls and by data services net of promotional offers, excluding roaming charges and equipment sales, divided by the average customer base for the period. In this instance, blended ARPU combines both prepaid and postpaid segments. (10) The broadband customer base includes ADSL access and connections leased to Morocco and also includes the CDMA customer base for its historical subsidiaries. (11) Maintenance of a constant MAD/Ouguiya/CFA Franc exchange rate. (12) The merger of Gabon Telecom and MOOV Gabon led to the consolidation of their data, especially in terms of customer bases. Forward-looking statements. This press release contains forward-looking statements and information relating to Maroc Telecom's financial position, operating results, strategy and outlook as well as the impacts of certain operations. Although Maroc Telecom believes that these forward-looking statements are based on reasonable assumptions, they are not guarantees of the company's future performance. Actual results may be vary significantly from the forward-looking statements due known and unknown risks and uncertainties , many of which are beyond our control, including the risks described in public documents filed by Maroc Telecom with Moroccan securities regulator (www.ammc.ma) and the Financial Markets Authority (www.amf-france.org), also available in French on our site (www.iam.ma). This press release contains forward-looking information that cannot be assessed on the day of its broadcast. Maroc Telecom makes no commitment to complete, update or modify such forward-looking statements as a result of new information, future event or for any other reason, subject to applicable regulations including articles III.2.31 et seq. of the circular of the Moroccan securities regulator and 223-1 et seq. of the general regulations of the Financial Markets Authority. Maroc Telecom is a global telecommunications operator in Morocco, leader in all its business segments including Fixed, Mobile and Internet. It has grown internationally and is now operating in ten countries in Africa. Maroc Telecom is listed simultaneously in Casablanca and in Paris and its shareholders are the Société de Participation dans les Télécommunications (SPT)* (53%) and the Kingdom of Morocco (30%). *In accordance with IFRS 3, the financial statements presented on 31 December 2015 (Goodwill and trade payables) have been restated to reflect the final allocation of Moov subsidiaries' purchase price.


News Article | February 15, 2017
Site: www.marketwired.com

CALGARY, ALBERTA--(Marketwired - Feb. 14, 2017) - Spartan Energy Corp. ("Spartan" or the "Company") (TSX:SPE) is pleased to provide a summary of our 2016 year-end reserves and an operational update. Reserve numbers presented herein were derived from an independent reserves report (the "Sproule Report") prepared by Sproule Associates Ltd. ("Sproule") effective December 31, 2016. All financial information presented in this press release is based on estimates and is unaudited. 2016 presented a unique opportunity for acquisitions in southeast Saskatchewan as the prolonged period of low crude oil prices resulted in a number of high quality assets becoming available. Spartan was able to use our attractive cost of capital and balance sheet flexibility to take advantage of this opportunity, as we completed five accretive acquisitions within our core southeast Saskatchewan operating area (the "Acquisitions"). The Acquisitions more than doubled the size of the Company, adding almost 11,000 boe/d of production, 43.3 MMboe of total proved ("1P") reserves and 63.3 MMboe of proved plus probable ("2P") reserves. In addition to creating value through the Acquisitions, Spartan executed on a highly successful organic capital program in 2016. We continued to demonstrate cost savings throughout the year, and our total 2016 development capital (excluding land and capitalized G&A) of $59.6 million represented only 78% of estimated 2016 cash flow. Our development capital spending, including changes in future development capital but excluding capital associated with the Acquisitions, delivered 1P reserve additions of 5.9 MMboe and 2P reserve additions of 8.1 MMboe. Based on our estimated 2016 operating netback of $20.45 per boe, this results in a 1P recycle ratio of 1.3 times and 2P recycle ratio of 1.6 times. The combination of accretive acquisitions and a successful drilling program allowed Spartan to add significant shareholder value in 2016 in the face of a challenging commodity price environment. Estimated 2016 average production of 11,759 boe/d represents 13% growth per debt adjusted share over 2015. Reserve growth per debt adjusted share was 55% for proved developed producing ("PDP") reserves, 45% for 1P reserves and 32% for 2P reserves. The summary below sets forth Spartan's gross reserves as at December 31, 2016, as evaluated in the Sproule Report. The figures in the following tables have been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook") and the reserve definitions contained in NI 51-101. Summary of Gross Oil and Gas Reserves as of December 31, 2016 (1), (2), (3), (4) Summary of Net Present Values of Future Net Revenue as of December 31, 2016 (1), (2), (3), (4) The following table sets forth development costs deducted in the estimation of Spartan's future net revenue attributable to the reserve categories noted below: The future development costs are estimates of capital expenditures required in the future for Spartan to convert proved undeveloped reserves and probable reserves to proved developed producing reserves. The undiscounted future development costs are $473.7 million for proved reserves and $766.4 million for proved plus probable reserves (in each case based on forecast prices and costs). Summary of Pricing and Inflation Rate Assumptions - Forecast Prices and Costs The forecast cost and price assumptions assume increases in wellhead selling prices and take into account inflation with respect to future operating and capital costs. Crude oil and natural gas benchmark reference pricing, inflation and exchange rates utilized by Sproule as at December 31, 2016 were as follows: Based on Sproule December 31, 2016 forecast pricing, Spartan's net asset value calculation is as follows: Spartan's southeast Saskatchewan focused asset base has continued to deliver superior operational results. In 2016, we drilled and brought on production 39.9 net open-hole wells and 10.8 net frac Midale wells. We also completed and brought on production 5.9 net previously drilled Viking wells, drilled 6.1 net strat test wells and re-entered or re-completed 3.0 net existing wells. We continued to lower our drilling costs throughout the year, while our wells again outperformed internal type curves. The success of our drilling program, in combination with our accretive acquisitions, allowed Spartan to deliver 13% production per debt adjusted share growth year over year despite spending less than cash flow. We have been active in the field to start 2017, with three rigs operating on our southeast Saskatchewan assets and an additional rig drilling our 14 well Viking program in west central Saskatchewan. To date we have drilled 19.3 net wells, including 8.2 net open-hole wells, 3.1 net frac Midale wells, and 8.0 net Viking wells and one net vertical strat well. Conditions remain favourable in the field and we anticipate our first quarter program will be completed as budgeted prior to the onset of spring break-up. Forward-Looking Statements. Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as "anticipate", "believe", "will", "expect", "plan", "intend", "estimate", "propose", "project" or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release may include, but is not limited to, statements about our corporate strategy, timing and level of capital expenditures, anticipated cost savings, future acquisition opportunities, future production levels, drilling locations and future development costs associated with oil and gas reserves. Statements relating to "reserves" are also deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future. The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Spartan, including expectations and assumptions concerning the success of future drilling, development and completion activities, the performance of existing wells, the performance of new wells, the availability and performance of facilities and pipelines, the geological characteristics of Spartan's properties, the successful application of drilling, completion and seismic technology, prevailing weather and break-up conditions, commodity prices, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the availability of capital, labour and services, the creditworthiness of industry partners and our ability to acquire additional assets. Although Spartan believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Spartan can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), constraint in the availability of services, commodity price and exchange rate fluctuations, adverse weather or break-up conditions and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Production forecasts are directly impacted by commodity prices and the actual timing of our capital expenditures. Actual results may vary materially from forecasts due to changes in interest rates, oil differentials, exchange rates and the timing of expenditures and production additions. These and other risks are set out in more detail in Spartan's Annual Information Form for the year ended December 31, 2015. The forward-looking information contained in this press release is made as of the date hereof and Spartan undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward looking information contained in this press release is expressly qualified by this cautionary statement. BOE Disclosure. The term barrels of oil equivalent ("BOE") may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All BOE conversions in the report are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil. Reserves Disclosure. All reserve references in this press release are "Company share reserves". Company share reserves are the Company's total working interest reserves before the deduction of any royalties and including any royalty interests of the Company. It should not be assumed that the present worth of estimated future cash flow presented in the tables above represents the fair market value of the reserves. There is no assurance that the forecast prices and costs assumptions will be attained and variances could be material. The recovery and reserve estimates of Spartan's crude oil, natural gas liquids and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and natural gas liquids reserves may be greater than or less than the estimates provided herein. All future net revenues are estimated using forecast prices, arising from the anticipated development and production of our reserves, net of the associated royalties, operating costs, development costs, and abandonment and reclamation costs and are stated prior to provision for interest and general and administrative expenses. Future net revenues have been presented on a before tax basis. Estimated values of future net revenue disclosed herein do not represent fair market value. Oil and Gas Metrics. This press release contains metrics commonly used in the oil and natural gas industry, such as "recycle ratio", "operating netback", "finding and development ("F&D") costs", "development capital", "finding, development and acquisition ("FD&A") costs", "production replacement" and "reserve life index ('RLI')". These terms do not have a standardized meaning and may not be comparable to similar measures presented by other companies, and therefore should not be used to make such comparisons. "Finding and development costs" are calculated as the sum of development capital plus the change in FDC for the period divided by the change in reserves that are characterized as development for the period. Finding and development costs take into account reserves revisions during the year on a per boe basis. The aggregate of the exploration and development costs incurred in the financial year and changes during that year in estimated future development costs generally will not reflect total finding and development costs related to reserves additions for that year. "Development capital" means the aggregate exploration and development costs incurred in the financial year on reserves that are categorized as development. Development capital presented herein excludes land and capitalized administration costs and also includes the cost of acquisitions and capital associated with acquisitions where reserve additions are attributed to the acquisitions. "Recycle ratio" is measured by dividing the operating netback for the applicable period by F&D cost per boe for the year. The recycle ratio compares netback from existing reserves to the cost of finding new reserves and may not accurately indicate the investment success unless the replacement reserves are of equivalent quality as the produced reserves. "Operating netback" is calculated using production revenues minus royalties and production expenses calculated on a per boe basis. "Production replacement ratio" is calculated as total reserve additions divided by annual production. "Reserve life index" is calculated as total company share reserves divided by annual production. Management uses these oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare Spartan's operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this press release, should not be relied upon for investment or other purposes. Drilling Locations. This press release discloses drilling inventory in three categories: (i) proved locations; (ii) probable locations; and (iii) unbooked locations. Proved locations and probable locations are derived from the Sproule Report and account for drilling locations that have associated proved and/or probable reserves, as applicable. Unbooked locations are internal estimates based on our prospective acreage and an assumption as to the number of wells that can be drilled per section based on industry practice and internal review. Unbooked locations do not have attributed reserves or resources. Of the 1,424 total net drilling locations identified in our southeast Saskatchewan core area, 304 net are proved locations, 242 are probable locations and 878 are unbooked locations. Unbooked locations have been identified by management as an estimation of our multi-year drilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that we will drill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves, resources or production. The drilling locations on which we actually drill wells will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been de-risked by drilling existing wells in relative close proximity to such unbooked drilling locations, other unbooked drilling locations are farther away from existing wells where management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves, resources or production. Non-IFRS Measures. This press release provides certain financial measures that do not have a standardized meaning prescribed by IFRS. These non-IFRS financial measures may not be comparable to similar measures presented by other issuers. Operating netback is not a recognized measure under IFRS. Management believes that in addition to net income (loss), netback is a useful supplemental measure that demonstrates the Company's ability to generate the cash necessary to fund future capital investment. Investors are cautioned, however, that these measures should not be construed as an alternative to net income (loss) determined in accordance with IFRS as an indication of the Company's performance. Spartan's method of calculating these measures may differ from other companies and accordingly, they may not be comparable to measures used by other companies. Operating netback is calculated based on oil and gas revenue net of hedging less royalties and production costs.

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