EX-99.1 2 ex-99d1.htm EX-99.1 Earnings Press Release

Exhibit 99.1

 

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Ardagh Group S.A. – Fourth Quarter and Full Year 2017 Results

 

Ardagh Group S.A. (NYSE: ARD) today announced its financial results for the fourth quarter and year ended December 31, 2017.

 

Highlights

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

December 31, 2016

 

Change

 

Change PF CCY

 

 

 

(€m except per share and ratio data)

 

 

 

 

 

Full Year

 

 

 

 

 

 

 

 

 

Revenue

    

7,644

 

6,345

 

20%

 

1%

 

Adjusted EBITDA 1

 

1,340

 

1,158

 

16%

 

2%

 

Adjusted earnings per share (€) 1

 

1.63

 

1.13

 

44%

 

 

 

Adjusted free cash flow 1

 

465

 

519

 

(10%)

 

 

 

Fourth Quarter

 

 

 

 

 

 

 

 

 

Revenue

 

1,789

 

1,826

 

(2%)

 

1%

 

Adjusted EBITDA 1

 

285

 

306

 

(7%)

 

(3%)

 

Adjusted earnings per share (€) 1

 

0.31

 

0.32

 

(4%)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net debt to LTM Adjusted EBITDA 2

 

4.9x

 

5.4x

 

 

 

 

 

Dividend per share ($) 3

 

0.14

 

 —

 

 

 

 

 

 

Paul Coulson, Chairman and Chief Executive, said “In 2017, we delivered pro forma constant currency Adjusted EBITDA growth of 2%, helped by the successful beverage can integration and de-levered as a result of strong free cash generation. Fourth quarter results were in line with our expectations, with constant currency revenue up 1% and Adjusted EBITDA advancing in three of our four divisions. Profit improvement initiatives in Glass North America are under way and we remain focused on driving growth in Adjusted EBITDA and cash generation as we continue to de-lever”.

 

·

Full year Revenue and Adjusted EBITDA growth of 20% and 16% to €7,644 million and €1,340 million respectively, including a full year beverage can contribution;

 

·

Pro forma constant currency Revenue and Adjusted EBITDA growth of 1% and 2% respectively for the year;

·

Earnings per share €0.24 for 2017 (2016: loss per share €0.33);

·

Adjusted earnings per share growth of 44% to €1.63 for the full year;

·

Adjusted Free Cash Flow of €465 million, contributing to de-leveraging of 0.57x during 2017;

·

Over US$750 million of cash and IPO proceeds used to repay debt during 2017;   

·

Enhanced capital structure, with available liquidity of €1.3 billion and no debt maturities before 2021;   

·

Adoption of US dollar reporting from January 1, 2018;

·

2018 outlook: Full year Adjusted EBITDA of approximately US$1.6 billion, with Adjusted Free Cash Flow in the region of US$550 – US$575 million and Adjusted earnings per share of US$1.90 – US$2.10. First quarter Adjusted EBITDA of approximately US$345 million.


1  For a reconciliation to the most comparable GAAP measures, see page 11.

2  2016 reflects Adjusted EBITDA on a pro forma basis, including twelve months Adjusted EBITDA for the Beverage Can Business.

3  Dividend declared on February 8, 2018. Payable on March 13, 2018 to shareholders of record on February 27, 2018.

 

 

 

 

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Summary Financial Information

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31,

 

Year ended December 31,

 

 

2017

 

2016

 

2017

 

2016

 

 

(in € millions, except EPS, ratios and percentages)

 

 

 

 

 

 

 

 

 

Revenue

    

1,789

 

1,826

 

7,644

 

6,345

Profit/(loss) for the period

 

30

 

(6)

 

54

 

(67)

Adjusted profit for the period 4

 

73

 

65

 

375

 

229

Adjusted EBITDA 4

 

285

 

306

 

1,340

 

1,158

Adjusted EBITDA margin

 

15.9%

 

16.8%

 

17.5%

 

18.3%

Earnings/(loss) per share (€)

 

0.13

 

(0.03)

 

0.24

 

(0.33)

Adjusted earnings per share (€) 4

 

0.31

 

0.32

 

1.63

 

1.13

Pro forma Adjusted EBITDA

 

 

 

 

 

1,340

 

1,333

 

 

 

 

 

 

 

 

 

Net debt 5

 

 

 

 

 

6,525

 

7,254

Cash and available liquidity

 

 

 

 

 

1,333

 

1,022

Net debt to LTM Adjusted EBITDA 6

 

 

 

 

 

4.9x

 

5.4x

 

 

 

 

 

 

 

 

 

Cash generated from operations

 

487

 

503

 

1,330

 

1,109

Operating cash flow 4

 

373

 

438

 

959

 

950

Adjusted free cash flow 4

 

217

 

287

 

465

 

519

 

 

 

 

 

 

 


4 For a reconciliation to the most comparable GAAP measures, see page 11.

5 Net debt is comprised of net borrowings and derivative financial instruments used to hedge foreign currency and interest rate risk, net of cash and cash equivalents.

6 2016 reflects Adjusted EBITDA on a pro forma basis, including twelve months Adjusted EBITDA for the Beverage Can Business.

 

 

 

 

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Financial Performance Review

 

Bridge of 2016 to 2017 Reported Revenue and Adjusted EBITDA

 

Three months ended December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Metal Packaging Europe

 

Metal Packaging Americas

 

Glass Packaging Europe

 

Glass Packaging North America

 

Group

 

 

€m

 

€m

 

€m

 

€m

 

€m

Reported revenue 2016

 

658

 

436

 

339

 

393

 

1,826

Organic

 

27

 

28

 

(6)

 

(28)

 

21

FX translation

 

(1)

 

(29)

 

 —

 

(28)

 

(58)

Reported revenue 2017

 

684

 

435

 

333

 

337

 

1,789

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metal Packaging Europe

 

Metal Packaging Americas

 

Glass Packaging Europe

 

Glass Packaging North America

 

Group

 

 

€m

 

€m

 

€m

 

€m

 

€m

Reported Adjusted EBITDA 2016

 

98

 

57

 

66

 

85

 

306

Organic

 

 1

 

 5

 

 2

 

(18)

 

(10)

FX translation

 

(1)

 

(4)

 

 —

 

(6)

 

(11)

Reported Adjusted EBITDA 2017

 

98

 

58

 

68

 

61

 

285

 

 

 

 

 

 

 

 

 

 

 

Reported Adjusted EBITDA 2017 margin

 

14.3%

 

13.3%

 

20.4%

 

18.1%

 

15.9%

Reported Adjusted EBITDA 2016 margin

 

14.9%

 

13.1%

 

19.5%

 

21.6%

 

16.8%

 

Year ended December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Metal Packaging Europe

 

Metal Packaging Americas

 

Glass Packaging Europe

 

Glass Packaging North America

 

Group

 

 

€m

 

€m

 

€m

 

€m

 

€m

Reported revenue 2016

 

2,235

 

1,059

 

1,392

 

1,659

 

6,345

Acquisition

 

680

 

621

 

 —

 

 —

 

1,301

Proforma revenue 2016

 

2,915

 

1,680

 

1,392

 

1,659

 

7,646

Organic

 

80

 

59

 

11

 

(35)

 

115

Reclassification

 

 —

 

 —

 

 —

 

(15)

 

(15)

FX translation

 

(28)

 

(25)

 

(27)

 

(22)

 

(102)

Reported revenue 2017

 

2,967

 

1,714

 

1,376

 

1,587

 

7,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metal Packaging Europe

 

Metal Packaging Americas

 

Glass Packaging Europe

 

Glass Packaging North America

 

Group

 

 

€m

 

€m

 

€m

 

€m

 

€m

Reported Adjusted EBITDA 2016

 

366

 

139

 

296

 

357

 

1,158

Acquisition

 

104

 

71

 

 —

 

 —

 

175

Proforma Adjusted EBITDA 2016

 

470

 

210

 

296

 

357

 

1,333

Organic

 

26

 

29

 

11

 

(39)

 

27

FX translation

 

(5)

 

(4)

 

(6)

 

(5)

 

(20)

Reported Adjusted EBITDA 2017

 

491

 

235

 

301

 

313

 

1,340

 

 

 

 

 

 

 

 

 

 

 

Reported Adjusted EBITDA 2017 margin

 

16.5%

 

13.7%

 

21.9%

 

19.7%

 

17.5%

Pro forma Adjusted EBITDA 2016 margin

 

16.1%

 

12.5%

 

21.3%

 

21.5%

 

17.4%

 

 

 

 

 

 

 

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Full Year

Revenue increased by €1,299 million, or 20%, to €7,644 million in 2017, compared with €6,345 million in the year ended December 31, 2016. The inclusion of the Beverage Can Acquisition for a full year increased revenue by €1,301 million compared with the prior year. Revenue growth also reflected higher selling prices driven by the pass through of higher input costs, partly offset by adverse currency translation effects of €102 million, which were largely attributable to unfavorable movements in the US dollar and British pound. Adjusted EBITDA increased by €182 million, or 16%, to €1,340 million in the year ended December 31, 2017. Growth reflected a full year contribution from the Beverage Can Acquisition, as well as synergy realization and cost reductions, partly offset by higher input costs and unfavorable currency translation effects.

Fourth Quarter

Group

Revenue of €1,789 million for the quarter ended December 31, 2017 represented a decrease of 2% at actual exchange rates and, at constant currency, increased by 1% compared with the same period last year. The reduction in revenue was attributable to €58 million adverse currency translation effects, partly offset by 1% organic growth. Fourth quarter Adjusted EBITDA of €285 million decreased by 7% at actual exchange rates, compared with the same period last year. On a constant currency basis, Adjusted EBITDA decreased by 3%, with growth in three of our four divisions, more than offset by a decline in Glass North America.

Metal Packaging Europe

Revenue increased by 4%, to €684 million in the three-month period ended December 31, 2017, compared with the same period last year. Growth reflected 4% organic growth, partly offset by €1 million negative currency translation effects. Adjusted EBITDA for the quarter of €98 million increased by 1% at constant currency compared with the same period last year, reflecting continued synergy realization.

Metal Packaging Americas

Revenue of €435 million in the fourth quarter of 2017, was in line with the same period last year. Organic revenue growth of 6%, as a result of the pass through of higher input costs and favorable volume/mix, was offset by negative currency translation effects of €29 million. Adjusted EBITDA increased by €1 million to €58 million, compared with the same period last year and by 9% on a constant currency basis. Growth in Adjusted EBITDA primarily reflected higher volumes and continued cost efficiencies, partly offset by currency translation effects of €4 million.

Glass Packaging Europe

Revenue declined by 2% to €333 million in the three-month period ended December 31, 2017, compared with the same period last year, mainly reflecting lower glass engineering revenues. Adjusted EBITDA for the quarter increased by 3% to €68 million, compared with the same period last year, as a result of cost savings.

Glass Packaging North America

Revenue decreased by 14% to €337 million in the fourth quarter, compared with the same period last year. On a constant currency basis, revenue was 8% lower, due mainly to lower volumes, in particular in the beer and wine end markets. Adjusted EBITDA decreased by 28% to €61 million in the fourth quarter, compared with the same period in 2016. Adjusted EBITDA at constant currency was 23% lower than the prior year as a result of lower volumes, increased freight costs and higher input costs compared with the same period last year.

We have now completed the review of our Glass North America division.  The main conclusions are as follows:

-

Closure of the Milford, Massachusetts, production facility, as announced in January;

-

We intend to pursue growth opportunities in stronger performing end markets, such as food, wine and spirits. In order to avail of these opportunities, we will convert production capacity from the mass beer sector to these alternative end markets; 

 

 

 

 

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-

This will result in a reduction in overall production capacity, but an even greater reduction in our mass beer capacity;

-

Targeted investment in Glass North America’s network, including state of the art inspection equipment, to enhance our competitive position and enable differentiation through a focus on innovation, quality and service;

-

Revision of our freight and logistics infrastructure and arrangements, where rates remain at elevated levels, to optimize costs and ensure effective recovery.

 

These initiatives are expected to lead to a restoration of appropriate profitability in  Glass North America, through an increased focus on improved manufacturing performance, so as to bring it into line with our European Glass business.

Financing Activity

In December, the Group closed a committed five year $850 million Global Asset Based Loan Facility. The new facility, secured by trade receivables and inventories, reflects the Group’s increased scale following the Beverage Can Acquisition in 2016.

 

 

 

 

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Earnings Webcast and Conference Call Details

Ardagh Group S.A. (NYSE: ARD) will hold its fourth quarter 2017 earnings webcast and conference call for investors at 3 p.m. BST (10 a.m. EST) on February 22, 2018. Please use the following webcast link to register for this call:

Webcast registration and access:

http://event.on24.com/wcc/r/1585909-1/32EC5CA902EB04FF3D278C6A4EA4C4D7 

Conference call dial in:

United States callers: 1866 928 7517
International callers: +44 20 3139 4830

Participant pin code: 40582638#

Slides and annual report

Supplemental slides to accompany this release are available on our website at http://www.ardaghgroup.com/investors 

The Group’s 2017 annual report on Form 20-F is expected to be filed in March 2018.

The 2017 annual report on Form 20-F for ARD Finance S.A., issuer of the Senior Secured Toggle Notes due 2023, will also be filed in March 2018 and will be available at http://www.ardholdings-sa.com/

About Ardagh Group

 

Ardagh is a global leader in metal and glass packaging solutions, producing packaging for most of the world's leading food, beverage and consumer brands. It operates 109 facilities in 22 countries, employing approximately 23,500 people and has global sales of approximately €7.6 billion.

 

Forward-Looking Statements

 

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

 

Non-GAAP Financial Measures

 

This press release may contain certain consolidated financial measures such as Adjusted EBITDA, working capital, net debt, Adjusted profit/(loss), Adjusted earnings/(loss) per share, and ratios relating thereto that are not calculated in accordance with IFRS or US GAAP. Non-GAAP financial measures may be considered in addition to GAAP financial information, but should not be used as substitutes for the corresponding GAAP measures. The non-GAAP financial measures used by Ardagh may differ from, and not be comparable to, similarly titled measures used by other companies.

 

Contacts:

 

Investors:
Email:
john.sheehan@ardaghgroup.com

Media:

 

Pat Walsh, Murray Consultants
Tel.: +1 646 776 5918 / +353 87 2269345
Email:
pwalsh@murrayconsult.ie

 

 

 

 

 

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Condensed Consolidated Financial Statements

Consolidated Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2017

 

Year ended December 31, 2016

 

    

Before

    

 

    

 

 

    

Before

    

 

    

 

 

 

 

exceptional

 

Exceptional

 

 

 

 

exceptional

 

Exceptional

 

 

 

 

 

items

 

Items

 

Total

 

items

 

Items

 

Total

 

 

€m

 

€m

 

€m

 

€m

 

€m

 

€m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

7,644

 

 —

 

 

7,644

 

6,345

 

 —

 

 

6,345

Cost of sales

 

(6,321)

 

(85)

 

 

(6,406)

 

(5,221)

 

(15)

 

 

(5,236)

Gross profit/(loss)

 

1,323

 

(85)

 

 

1,238

 

1,124

 

(15)

 

 

1,109

Sales, general and administration expenses

 

(359)

 

(43)

 

 

(402)

 

(300)

 

(116)

 

 

(416)

Intangible amortization

 

(235)

 

 —

 

 

(235)

 

(173)

 

 —

 

 

(173)

Operating profit/(loss)

 

729

 

(128)

 

 

601

 

651

 

(131)

 

 

520

Finance expense

 

(459)

 

(123)

 

 

(582)

 

(450)

 

(165)

 

 

(615)

Finance income

 

 —

 

 —

 

 

 —

 

 —

 

78

 

 

78

Profit/(loss) before tax

 

270

 

(251)

 

 

19

 

201

 

(218)

 

 

(17)

Income tax (charge)/credit

 

(87)

 

122

 

 

35

 

(93)

 

43

 

 

(50)

Profit/(loss) for the year

 

183

 

(129)

 

 

54

 

108

 

(175)

 

 

(67)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit/(loss) attributable to:

 

  

 

  

 

 

  

 

  

 

  

 

 

  

Owners of the parent

 

  

 

  

 

 

54

 

  

 

  

 

 

(67)

Non‑controlling interests

 

  

 

  

 

 

 —

 

  

 

  

 

 

 —

Profit/(loss) for the year

 

  

 

  

 

 

54

 

  

 

  

 

 

(67)

Profit/(loss) per share:

 

  

 

  

 

 

  

 

  

 

  

 

 

  

Basic profit/(loss) for the year attributable to equity holders

 

  

 

  

 

 

€0.24

 

  

 

  

 

 

(€0.33)

 

 

 

 

 

 

 

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Consolidated Statement of Financial Position

 

 

 

 

 

 

 

 

At December 31,

 

    

2017

    

2016

 

 

€m

 

€m

Non-current assets

 

  

 

 

Intangible assets

 

3,422

 

3,904

Property, plant and equipment

 

2,808

 

2,911

Derivative financial instruments

 

 6

 

124

Deferred tax assets

 

184

 

259

Other non-current assets

 

21

 

20

 

 

6,441

 

7,218

Current assets

 

  

 

  

Inventories

 

1,128

 

1,125

Trade and other receivables

 

1,062

 

1,164

Derivative financial instruments

 

13

 

11

Cash and cash equivalents

 

654

 

772

 

 

2,857

 

3,072

TOTAL ASSETS

 

9,298

 

10,290

Equity attributable to owners of the parent

 

  

 

  

Issued capital

 

22

 

 —

Share premium

 

1,090

 

136

Capital contribution

 

431

 

431

Other reserves

 

(321)

 

(324)

Retained earnings

 

(2,370)

 

(2,313)

 

 

(1,148)

 

(2,070)

Non-controlling interests

 

 1

 

 2

TOTAL EQUITY

 

(1,147)

 

(2,068)

Non-current liabilities

 

  

 

  

Borrowings

 

6,926

 

8,142

Employee benefit obligations

 

831

 

905

Derivative financial instruments

 

251

 

 —

Deferred tax liabilities

 

486

 

694

Related party borrowings

 

 —

 

673

Provisions

 

37

 

57

 

 

8,531

 

10,471

Current liabilities

 

  

 

  

Borrowings

 

 2

 

 8

Interest payable

 

59

 

81

Derivative financial instruments

 

 2

 

 8

Trade and other payables

 

1,658

 

1,539

Income tax payable

 

135

 

182

Provisions

 

58

 

69

 

 

1,914

 

1,887

TOTAL LIABILITIES

 

10,445

 

12,358

TOTAL EQUITY and LIABILITIES

 

9,298

 

10,290

 

 

 

 

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Consolidated Statement of Cash Flows

 

 

 

 

 

 

 

 

Year ended December 31,

 

    

2017

    

2016

 

 

€m

 

€m

Cash flows from operating activities

 

  

 

  

Cash generated from operations

 

1,330

 

1,109

Interest paid — excluding cumulative PIK interest paid

 

(406)

 

(372)

Cumulative PIK interest paid

 

 —

 

(184)

Income tax paid

 

(90)

 

(84)

Net cash from operating activities

 

834

 

469

Cash flows from investing activities

 

  

 

  

Purchase of business, net of cash acquired

 

 —

 

(2,685)

Purchase of property, plant and equipment

 

(422)

 

(310)

Purchase of intangible assets

 

(19)

 

(12)

Proceeds from disposal of property, plant and equipment

 

 5

 

 4

Net cash used in investing activities

 

(436)

 

(3,003)

Cash flows from financing activities

 

  

 

  

Proceeds from borrowings

 

3,497

 

3,950

Repayment of borrowings

 

(4,061)

 

(2,322)

Proceeds from borrowings with related party

 

 —

 

673

Proceeds from share issuance

 

306

 

 6

Contribution from parent

 

 —

 

431

Repayment of borrowings issued to related party

 

 —

 

404

Dividends paid

 

(148)

 

(270)

Early redemption premium paid

 

(85)

 

(108)

Deferred debt issue costs paid

 

(35)

 

(60)

Proceeds from the termination of derivative financial instruments

 

42

 

 —

Net cash (outflow)/inflow from financing activities

 

(484)

 

2,704

Net (decrease)/increase in cash and cash equivalents

 

(86)

 

170

Cash and cash equivalents at the beginning of the year

 

772

 

553

Exchange (losses)/gains on cash and cash equivalents

 

(32)

 

49

Cash and cash equivalents at the end of the year

 

654

 

772

 

 

 

 

 

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Financial assets and liabilities

 

 

At December 31, 2017, the Group’s net debt and available liquidity is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Maximum

 

Final

 

 

 

 

 

 

 

 

 

 

 

 

amount

 

maturity

 

Facility

 

 

 

 

 

Undrawn

Facility

 

Currency

 

drawable

 

date

 

type

 

Amount drawn

 

amount

 

    

  

    

Local

    

  

    

  

    

Local

    

€m

    

€m

 

 

 

 

currency

 

 

 

 

 

currency

 

 

 

 

 

 

 

 

m

 

 

 

 

 

m

 

 

 

 

2.750% Senior Secured Notes

 

EUR

 

750

 

15-Mar-24

 

Bullet

 

750

 

750

 

 —

4.625% Senior Secured Notes

 

USD

 

1,000

 

15-May-23

 

Bullet

 

1,000

 

834

 

 —

4.125% Senior Secured Notes

 

EUR

 

440

 

15-May-23

 

Bullet

 

440

 

440

 

 —

4.250% Senior Secured Notes

 

USD

 

715

 

15-Sep-22

 

Bullet

 

715

 

596

 

 —

4.750% Senior Notes

 

GBP 

 

400

 

15-Jul-27

 

Bullet

 

400

 

451

 

 —

6.000% Senior Notes

 

USD

 

1,700

 

15-Feb-25

 

Bullet

 

1,700

 

1,414

 

 —

7.250% Senior Notes

 

USD

 

1,650

 

15-May-24

 

Bullet

 

1,650

 

1,376

 

 —

6.750% Senior Notes

 

EUR

 

750

 

15-May-24

 

Bullet

 

750

 

750

 

 —

6.000% Senior Notes

 

USD

 

440

 

30-Jun-21

 

Bullet

 

440

 

367

 

 —

Global Asset Based Loan Facility

 

USD

 

813

 

07-Dec-22

 

Revolving

 

 —

 

 —

 

678

Finance Lease Obligations

 

GBP/EUR

 

 

 

  

 

Amortizing

 

 7

 

 7

 

 —

Other borrowings/credit lines

 

EUR

 

4

 

Rolling

 

Amortizing

 

 3

 

 3

 

 1

Total borrowings / undrawn facilities

 

  

 

  

 

  

 

  

 

  

 

6,988

 

679

Deferred debt issue costs and bond premium

 

  

 

  

 

  

 

  

 

  

 

(60)

 

 —

Net borrowings / undrawn facilities

 

  

 

  

 

  

 

  

 

  

 

6,928

 

679

Cash and cash equivalents

 

  

 

  

 

  

 

  

 

  

 

(654)

 

654

Derivative financial instruments used to hedge foreign currency and interest rate risk

 

  

 

  

 

  

 

  

 

  

 

251

 

 —

Net debt / available liquidity

 

 

 

 

 

 

 

 

 

 

 

6,525

 

1,333

 

 

 

 

 

 

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Picture 8

 


 

 

 

Reconciliation of profit/(loss) for the period to Adjusted profit

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31,

 

Year ended December 31,

 

 

2017

 

2016

 

2017

 

2016

 

 

€m

 

€m

 

€m

 

€m

Profit/(loss) for the period

 

30

 

(6)

 

54

 

(67)

Total exceptional items 7

 

86

 

33

 

251

 

218

Tax credit associated with exceptional items 8

 

(89)

 

(17)

 

(122)

 

(43)

Intangible amortization

 

57

 

77

 

235

 

173

Tax credit associated with intangible amortization

 

(16)

 

(22)

 

(67)

 

(52)

Loss on derivative financial instruments

 

 5

 

 —

 

24

 

 —

Adjusted profit for the period

 

73

 

65

 

375

 

229

 

 

 

 

 

 

 

 

 

Weighted average ordinary shares

 

236.3

 

202.0

 

229.6

 

202.0

 

 

 

 

 

 

 

 

 

Earnings/(loss) per share (€)

 

0.13

 

(0.03)

 

0.24

 

(0.33)

 

 

 

 

 

 

 

 

 

Adjusted earnings per share (€)

 

0.31

 

0.32

 

1.63

 

1.13

 

Reconciliation of profit/(loss) for the period to Adjusted EBITDA, cash generated from operations, operating cash flow and Adjusted free cash flow 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31,

 

Year ended December 31,

 

 

2017

 

2016

 

2017

 

2016

 

 

€m

 

€m

 

€m

 

€m

Profit/(loss) for the period

 

30

 

(6)

 

54

 

(67)

Income tax (credit)/charge

 

(95)

 

(6)

 

(35)

 

50

Net finance expense

 

111

 

121

 

582

 

537

Depreciation and amortization

 

153

 

172

 

611

 

507

Exceptional operating items

 

86

 

25

 

128

 

131

Adjusted EBITDA

 

285

 

306

 

1,340

 

1,158

Movement in working capital

 

225

 

251

 

64

 

120

Acquisition-related, IPO, start-up and other exceptional costs paid

 

(20)

 

(53)

 

(65)

 

(159)

Exceptional restructuring paid

 

(3)

 

(1)

 

(9)

 

(10)

Cash generated from operations

 

487

 

503

 

1,330

 

1,109

Acquisition-related, IPO, start-up and other exceptional costs paid

 

20

 

53

 

65

 

159

Capital expenditure

 

(134)

 

(118)

 

(436)

 

(318)

Operating cash flow

 

373

 

438

 

959

 

950

Interest 9

 

(124)

 

(112)

 

(404)

 

(347)

Income tax

 

(32)

 

(39)

 

(90)

 

(84)

Adjusted free cash flow

 

217

 

287

 

465

 

519

 


7 Total exceptional items for the three months ended December 31, 2017 include €46 million asset impairment charges in Glass Packaging North America and Metal Packaging Europe, €20 million capacity realignment and restructuring costs in Metal Packaging Europe and €15 million costs directly attributable to the acquisition and integration of the Beverage Can Business and IPO and other transaction related costs.  Total exceptional items for the year ended December 31, 2017 include €123 million debt refinancing and settlement costs, €46 million asset impairment charges as noted above, €43 million costs directly attributable to the acquisition and integration of the Beverage Can Business and IPO and other transaction related costs and €32 million capacity realignment and restructuring costs in Metal Packaging Europe.

8 The three months and year ended December 31, 2017 includes a €68 million one-time non-cash benefit on re-measurement of the Groups’s deferred tax positions, following the enactment of the Tax Cuts and Jobs Act of 2017 signed into US law on December 22, 2017.

9 Interest paid in the year ended December 31, 2017, excludes €2 million of interest paid in lieu of notice, relating to the 6.750% Senior Notes due 2021. Interest paid in the year ended December 31, 2016, excludes: (i) €15 million in respect of notes held in escrow for the period between their issuance and the completion of the acquisition of the Beverage Can Business, (ii) €10 million of interest, paid in lieu of notice, relating to the 9.250% and 9.125% Senior Notes due 2020 repaid in full in May 2016 and (iii) cumulative PIK interest paid of €184 million.

 

 

 

 

 

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Picture 8

 


 

Picture 18

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