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RSDB ANNUAL RESULTS
2005
RESULT DEVELOPMENT FOR 2005 IN LINE WITH PREDICTION
STATUS DELISTING
ANNUAL GENERAL MEETING OF SHAREHOLDERS POSTPONED
2005 ANNUAL RESULTS
Hilversum, 15 March 2006. In 2005 RSDB NV realised a profit, to be
distributed to the shareholders, or EUR 14.5 million (on the basis
or IFRS), against EUR 17.0 million (also on the basis or IFRS) in
2004, or a decline of more than 14%.
STATUS DELISTING
RSDB conducts advanced discussions about a transaction that should
result in the delisting of RSDB.
Because of this development RSDB has decided to postpone its annual
shareholders meeting, which was scheduled to be held on 12 April
2006.
RESULTS
The turnover of the continued operating activities declined marginally
by EUR 2.5 million to EUR 534.9 million (2004: EUR 537.3 million).
The autonomous volume growth of Print Productions and Marketing Communications,
more than 2% - EUR 11.9 million – was completely cancelled
out by price erosion, which had a complete negative effect on group
turnover, value-added and operating result.
Value-added declined by EUR 6.0 million, or 2.3%, to EUR 252.0 million,
EUR 5.2 million of which at Print Productions and EUR 0.8 million
at Marketing Communications. The gross margin – value-added
/ group turnover - declined, despite the price erosion, only by 0.9
%-point to 47.1% as a result of improved raw materials efficiency
and less work contracted out.
Total operating costs increased by EUR 5.9 million, or 2.7%, to EUR
226.9 million. Wage indexing and the increased social security costs
of own personnel were offset by the effects of the 53rd week in the
2004 financial year. The decline of own personnel costs of EUR 2.8
million was the result of the decline of the number of employees,
as well as of an increase of the ESF subsidy of EUR 1.3 million.
The increase of the total operating costs was influenced by higher
depreciation - EUR 0.7 million -, a substantial increase of the costs
of energy carriers – EUR 3.4 million – as well as reorganisation
provisions of EUR 2.0 million. This became necessary as customers
started to carry out reproduction and lithographic work within their
own organisation, enabled by hardware and software simplification.
This ended the rationale for independent organisations such as Roto
Smeets Prepress and Digital Solutions as part of Logic Use. Both
companies will be completely dismantled.
The operating result declined from EUR 36.9 million in 2004 to EUR
25.0 million in 2005; after an adjustment for the reorganisation
provision the result decline from operating activities amounted to
almost 27%. The negative balance of financial income and expenses
declined by almost 11% to EUR 5.3 million, caused by a reduced debt
position as well as lower rates. The interest cover ratio was 4.7.
Profit from the remaining operating activities, positively influenced
by the tax rate of 28.8%, down from 31.3%, amounted to EUR 14.4 million,
against EUR 21.3 million for 2004. Including the result from discontinued
operating activities and divested participations, profit went from
EUR 17.0 million in 2004 to EUR 14.5 million in 2005. The operating
cash flow declined from EUR 35,7 million to EUR 28,5 million. EUR
47 million of the cash flow was used for investment payments, EUR
5,6 million was used for dividend payments and EUR 2,4 million was
used for loan repayments. Interest-bearing debt amounted to EUR 95,7
million.
The balance of cash flows amounted to EUR -/- 1,4 million. Group
equity increased by EUR 7.4 million to EUR 134.1 million, while the
balance sheet total grew to EUR 344.2 million, which resulted in
a solvency rate of 39.0 %. Return on investments amounted to 11.1%.
For the first time, the 2005 annual results and the comparable results
for 2004 were drawn up on the basis of International Financial Reporting
Standards - IFRS.
Hans de Jong, chairman of the Executive Board of RSDB: “Both
the business line Print Productions and the business line Marketing
Communications operated in a market which did not show any increase
in volume, neither in the Netherlands or abroad. At the same time,
we experienced capacity expansion within the industry. Internally,
the positive effects of earlier rounds of cost savings could not
set off the negative consequences of price erosion and increased
costs of energy carriers. The realised result is in line with the
results forecast announced earlier in 2005. In view of the still
difficult market conditions, RSDB has had a good year.”
PROSPECTS
All market segments in which the RSDB companies operate, both nationally
and internationally, experienced as yet unknown levels of displacement.
Roto Smeets, the core activity of the business line Print Productions,
is experiencing unrelenting pressure on volumes in the main segments
of magazines, catalogues and unaddressed advertising. There is no
indication that a recovery might be imminent. At the same time, the
industry will be introducing even more production capacity in 2006.
Roto Smeets, strengthened by new capacity, will continue the realised
above-market volume growth of the past years.
The companies which are part of the business line Marketing Communications
are looking at further increasing pricing competition, in a market
in which the distinguishing ability of Marketing Communications offers
good opportunities.
Although the cost structure is being improved as a result of current
reorganisations and investment projects, the further increasing costs
of energy carriers have a substantial negative effect on results.
This, in combination with the earlier mentioned developments at the
income side, forces us to introduce additional cost-saving measures.
These will be implemented during the course of this year, and must
result in a further reduction of approximately 100 jobs in 2006 /
2007, whereby involuntary redundancies cannot be ruled out. Provisions
made in connection with these additional measures will be made when
the decision making process has been concluded.
RSDB believes that it is still too early to make reliable predictions
regarding the profit development in the current year, but is looking
at the year with a healthy enthusiasm, even in these continued difficult
market conditions.
STATUS DELISTING
RSDB conducts advanced discussions about a transaction that should
result in the delisting of RSDB. It is still uncertain whether agreement
may be reached. These discussions are based on an equity value of
RSDB in the order of EUR 170 million to EUR 175 million. RSDB has
received comfort from large known shareholders that they would in
principle support a transaction on this basis. The possible structure
of the transaction is also still subject of the discussions. If agreement
is reached on a transaction the parties will have to agree whether
such transaction will be structured as a public offer for the shares
of RSDB or that RSDB will ask its shareholders to approve the transfer
of its business followed by the dissolution of RSDB.
Because of this development RSDB has decided to postpone its annual
shareholders meeting, which was scheduled to be held on 12 April
2006. RSDB will publish its annual report when RSDB convenes its
shareholders meeting.
RSDB currently expects that it will be able to provide further information
during the second half of the month of April.
The press and analysts meeting that was scheduled for March 16 2006,
has been postponed as well.
BUSINESS LINES / PlantijnCasparie
The result development of the two business lines Print Productions
and Marketing Communications and that of the discontinued operating
activities / held for sale of PlantijnCasparie was as follows:
| x EUR 1 mln |
2005 |
|
2004* |
| |
turnover |
net result |
|
turnover |
net result |
 |
| Print
Productions |
495.851 |
13.565 |
|
501.258 |
19.089 |
|
| Marketing
Communications |
40.743 |
871 |
|
38.661 |
2.180 |
|
| PlantijnCasparie |
50.390 |
83 |
|
77.669 |
-4.224 |
* for
reasons of comparison, the 2004 results were amended to fit the business
lines breakdown
The number of employees on the basis of fulltime equivalents declined
from 3177 as at year-end 2004 to 2633 as at year-end 2005.
Print Productions
Compared to 2004, the relevant north-western European rotary printing
market saw a marginal sales decline for the paper industry. Circulation
figures and print run sizes in the magazine and catalogue segments
remained under pressure. In the promotional print segment, growth weakened
somewhat, compared to previous years. The supply side saw a record
level of realised and announced printing press investments. These market
conditions explain the again increased pressure on prices in 2005.
Print Productions itself increased the amount of processed paper tonnage
by almost 2% , thereby continuing the trend of above-market growth.
The growth was mainly carried by the web offset activities, also facilitated
by new production capacity at Roto Smeets Weert, Senefelder Misset
Doetinchem and at Antok in Hungary. Expiring contracts with existing
customers were renewed, while a large number of new customers was brought
on board. With the exception of Denmark, the Roto Smeets export markets
Belgium, Germany, France, the United Kingdom and Sweden experienced
volume growth. The activities in the field of graphic finishing experienced
significant growth.
Marketing Communications
The demand side of the market was characterised by limited budgets,
while the supply side saw both players leaving the market and new entrants;
this caused further pressure on prices.
Marketing Communications was built on Media Partners, to which the
former PlantijnCasparie companies Design Domain, 2organize and Direct
Marketing as well as Logic Use from the Roto Smeets organisation were
added. The jointly developed business concept is aimed at organising
and executing customer processes - the developing and producing of
communication carriers - and the processing and optimising of customer
data. Reorganisations were implemented at Logic Use (technological
developments and possibilities enable customers to carry out reproduction
and lithographic work within their own organisation) and Design Domain
(rationalisation). PlantijnCasparie DM, which had been repositioned
in the market as Leads to Loyals, Design Domain and Media Partners
were hit by a loss of existing orders, caused by diminishing budgets.
In the meantime, acquisition of new orders is developing satisfactory.
2organize has substantially strengthened its position as provider of
services to mobile telephone companies.
PlantijnCasparie
In line with the overall strategy of RSDB, at 12 September 2005 the
takeover of the PlantijnCasparie sheet printing activities by Thieme
GrafiMedia Groep was effectuated, whereby RSDB contributes EUR 3.5
million towards financing. Part of the transaction were the printing
facilities of PlantijnCasparie in Almere, Amsterdam, Capelle aan den
IJssel, Den Haag, Groningen, Nieuwegein, IJsselstein and Zwolle, as
well as PlantijnCasparie Digital Print in Amsterdam, and GPB in Leiderdorp.
In fulltime equivalents, the takeover involved 425 employees.
In view of the link of PlantijnCasparie Eindhoven and PlantijnCasparie
Utrecht with the web offset activities of Roto Smeets, both these companies
were added to the business line Print Productions under the name of
Roto Smeets GrafiServices.
Discussions are currently held with prospective buyers with regard
to the realisation of the earlier announced divestment of Ten Klei
in Purmerend.
IFRS
The consolidated annual accounts of RSDB have been prepared in accordance
with the Internationals Financial Reporting Standards (IFRS), as established
on December 31 2005, adopted by the International Accounting Standards
Board and endorsed by the European Commission.
Up to and including the year 2004 the annual accounts have been drawn
up on the basis of the generally accepted principles for financial
reporting in the Netherlands (Dutch GAAP).
The financial statements for 2005 have been prepared in accordance
with IFRS. The transition date for the first adoption of IFRS is January
1 2004. The comparable figures relating to the year 2004 have been
adjusted accordingly. The reconciliation is to be found in the annex.
RSDB NV
Executive Board
For further information:
RSDB: Hans de Jong, Leo van Gelder tel. +31 (0)35 - 625 86 00
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