1. The Solvac cash inflow, fed by the dividends from the investment in Solvay, amounted to EUR 81.9 million versus 85.1 million in 2013, a decrease of 3.7%, while the dividend paid by Solvay has been stable between 2012 and 2013. This is explained by the fact that shareholding income of Solvac in 2014 consists of the balance of Solvay 2013 dividend (down 6.6% from the balance in 2012) and the Solvay 2014 interim dividend (the dividend per share is stable with respect to the Solvay 2013 interim dividend, but the number of shares held is slightly higher).
After the peak observed in 2013, the 2014 cash inflow is returning to its recurring level: In 2013, Solvac received a double increase of the Solvay dividend (on the 2012 balance and the 2013 interim), representing dividend income of €3.3333 per Solvay share. In 2014, the Solvay dividend income returned to EUR 3.2 per share.
EUR million | 2013 | 2014 | |||
Cash inflow(*) : | 85.1 | 81.9 | - 3.7 % | ||
Of which is: - Solvay dividend balance | from 2012: €2.0000/share | 51.1 | from 2013 : €1.8667/share | 47.8 | - 6.6 % |
- Solvay interim dividend | from 2013 : €1.3333/share | 34.0 | from 2014: €1.3333/share | 34.1 | + 0.3 %(***) |
Annual dividend/share | €3.3333/share | €3.2000/share | |||
General expenses (including financial expenses) | 5.6 | 5.3 | |||
Cash income(**) : | 79.5 | 76.6 |
(*): "Cash inflow" means the dividend income net of the investment in Solvay and the interest income.
(**): "Cash income" means the cash inflow reduced by the income charges and other income and expenses (financial/operational)
(***): The number of Solvay shares held by Solvac has gone from 25,559,257 in 2013 to 25,578,267 in 2014.
To the extent that the statutory accounts allow (see under point 3 below), the proposed amount of dividends to be distributed by Solvac is determined by the Board of Directors on the basis of this cash income and after coverage of the costs (mainly financial charges).
2. The Board of Directors reviewed and approved the consolidated financial statements of Solvac on 31 December 2014. These financial statements have been submitted to the Statutory Auditor. They are presented in accordance with IFRS standards.
CONSOLIDATED INCOME STATEMENT | ||
EUR million | 2013 | 2014 |
Income from investments accounted for under the equity method | 83 | 25 |
Operating costs | -1 | -1 |
Capital gain from the sale of Solvay shares | 0 | 0 |
Interest expenses | -5 | -4 |
Net income | 78 | 19 |
Net earnings per share (EUR), basic and diluted [1] | 5.1 | 1.3 |
[1] The net earnings per share and the diluted net earnings per share are identical. The number of shares used for the per share calculation is 15,267,881 shares in 2014 as in 2013.
On December 31, 2014 Solvac recorded a consolidated net income of EUR 19 million (EUR 1.3 per share) versus EUR 78 million EUR (EUR 5.1 per share) over the same period in 2013.
3. The Board of Directors of Solvac SA has issued the following figures for the 2014 statutory accounts:
EUR million | 2013 | 2014 |
Recurrent financial income | 80,411 | 77,785 |
Other recurrent income | -918 | -1,196 |
Recurrent income | 79,495 | 76,589 |
Capital gains | -- | -- |
Profit before taxes | 79,495 | 76,589 |
Profit after taxes | 79,495 | 76,589 |
Gross remuneration of capital | 72,064 | 72,064 |
Balance to be carried forward | 7,431 | 4,525 |
In the absence of exceptional items in 2013 and 2014, the recurrent income is identical to the profit before taxes. The profit after taxes was EUR 76.6 million in 2014 versus EUR 79.5 million in 2013.
In accordance with the decision of the Board of Directors to use the retention to reduce the (short-term) debt of the company, the latter has been reduced by EUR 2.0 million at the end of the year and by EUR 3.0 million on average over the year to reach an annual average close to 0.
4. Two interim dividends were paid on 25 September 2014 and 29 December 2014, respectively, the second being, usually, equal to the balance; it will be up to the General Assembly for confirmation. In total, each of the shares received stable gross remuneration in 2014 compared to 2013:
EUR | 2013 | 2014 |
Gross dividend per share | 4.72 | 4.72 |
5. It is to be noted that the Board of Directors of Solvay decided on 25 February 2015 to pay a dividend on 19 May 2015 representing the balance of the 2014 financial year, which amounts to EUR 2.06(*) gross (EUR 1.55 net) per share.
(*) Two point zero six repeating last decimal.
NOTES TO THE FINANCIAL STATEMENTS
1. Financial statements
Deloitte will certify, without qualification, the annual financial statements to 31 December 2014 and confirms that the accounting information contained in this press release requires no comment on its part and is consistent with said financial statements. The full report of the Statutory Auditor relating to the annual financial information will be included in the 2014 annual report to be published on the Internet (www.solvac.be) on 31 March 2015.
2. Content
This press release contains regulated information and is established in compliance with IAS 34. The risk analysis included in the annual report is available on Internet (www.solvac.be)
3. Solvac shares
2013 | 2014 | |
Number of shares issued at the end of the period | 15,267,881 | 15,267,881 |
Average number of shares for calculating the IFRS earnings per share | 15,267,881 | 15,267,881 |
Average number of shares for calculating the IFRS diluted earnings per share | 15,267,881 | 15,267,881 |
4. Statement by the responsible persons
Mr. JP. Delwart, Chairman of the Board and Mr. B. de Laguiche, Managing Director of Solvac, confirm that to the best of their knowledge:
- the summary financial information, prepared in conformity with applicable accounting standards, reflects a true and fair view of the net worth, the financial situation and results of the Solvac Group and of Solvac S.A.
- the intermediate report contains a faithful presentation of significant events occurring in the 2014 financial year, and their impact on the summary financial information.
- there are no transactions with related third parties.
Key dates for financial communications
- 31 March 2015: Publication of the 2014 annual report at www.solvac.be
- 12 May 2015: Ordinary General Meeting of the Shareholders (2:30 p.m.)
- 31 July 2015: Results from the first half of 2015 and announcement of the first interim dividend for financial year 2015
- 27 August 2015: Payment of the first interim dividend for financial year 2015
- 11 December 2015: Announcement of the second interim dividend for financial year 2015
- 24 December 2015: Payment of the second interim dividend for financial year 2015
For additional information, please contact:
SOLVAC S.A.
Courier address:
Rue des Champs Elysées, 43
1050 Brussels
Tel.: 32/2/639.66.30
Fax: 32/2/639 66 31
Mail: Investors.relations@solvac.be
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