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Hamon Press
Information Release
i
Regulated information 4 September 2015 18:00
Half Year Results H1 2015
Good project execution during the first half year 2015, allowing the Business Units to generate
an EBITDA higher than during the first six months of 2014, except the PHE BU, which
continues its turnaround and which negatively impacts the H1 2015 results.
Commercial activities during H1 2015:
Backlog is at a very good level of EUR 764 million, slightly lower than the backlog as of 30
June 2014 (EUR 793 million), because of the good completion made on major projects. The
level of new order bookings is satisfactory despite the delay taken by customers to finalize some
major contracts, whereas the comparable previous half years had seen significant new bookings.
Our management is confident for the remainder of the year.
Our development in Africa, in the Middle-East and in Asia in general is promising.
The level of new order bookings for the Process Heat Exchangers BU (PHE) is encouraging.
H1 2015 EBITDA amounting to EUR 9.6 million
EBITDA is slightly below H1 2014 EBITDA because of the still negative contribution of the
Process Heat Exchangers BU and some non-recurring costs. Excluding this BU, the EBITDA of
the other BUs increased by 26%, from EUR 13.5 million to EUR 17.0 million.
The performance of the Process Heat Exchangers BU is encouraging, even though it was
penalized by effects from the past and by some non-recurring items (normalized operating profit
of EUR -1.1 million).
All BUs have seen a significant improvement in the quality of execution, with improved margins
for some of them.
The net result is negative, because of non-recurring items like restructuring costs, write-down
on some non-trade receivables of the PHE BU and the taxes in the US.
Strategic partnership: Esindus
Sopal International SA, majority shareholder of Hamon & Cie (International), will bring to the
latter the 38.89% stake it holds in the Spanish company Esindus in exchange of Hamon shares.
This contribution of Esindus presents a strategic, economic and industrial interest for Hamon,
which will increase its capital accordingly – see note 5.
Net working capital
Net working capital and net financial debt increase due to higher level of on-site activities
(ReACT TM, plant Vogtle, …), to delays of payment of some trade receivables and to customers
having delayed the final acceptance of some major projects. This will be tackled by the
reinforcement of equity – see note 5.
Interim dividend
No interim dividend.
Prospects
In view of the general economic environment, Hamon does not release any guidance on its future results.
Hamon Press
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Table of contents
I. INTERIM CONSOLIDATED MANAGEMENT REPORT ...............................................1
1. Commercial activities ......................................................................................................1
2. Consolidated income statement .......................................................................................2 3. Overview by business unit ...............................................................................................4
a) Cooling Systems ..........................................................................................................4
b) Process Heat Exchangers .............................................................................................4
c) Air Quality System ......................................................................................................5
d) NAFTA ........................................................................................................................5
4. Consolidated balance sheet ..............................................................................................6 5. Reinforcement of equity ..................................................................................................7 6. Post Balance Sheet Events ...............................................................................................7
II. DECLARATION OF RESPONSIBILITY ..........................................................................8
III. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS ..................9
1. Condensed consolidated statement of profit or loss ........................................................9 2. Condensed consolidated statement of comprehensive income ......................................10 3. Condensed consolidated statement of financial position ...............................................11
4. Condensed consolidated statement of changes in equity ...............................................12 5. Condensed consolidated cash flow statement ................................................................13
6. Notes to the condensed consolidated interim financial statements ................................14 a) Declaration of compliance .........................................................................................14
b) Principal accounting policies .....................................................................................14
c) Subsidiary companies ................................................................................................14
d) Exchange rates used by the Group .............................................................................15
e) Information by segment .............................................................................................15
f) Operating expenses ....................................................................................................17
g) Other operating income (expenses) ...........................................................................18
h) Non-recurring income (expenses) ..............................................................................18
i) Net finance costs ........................................................................................................19
j) Goodwill ....................................................................................................................20
k) Available-for-sale financial asset ...............................................................................20
l) Construction contracts ...............................................................................................21
m) Trade and other receivables .......................................................................................21
n) Financial liabilities .....................................................................................................22
o) Derivative instruments ...............................................................................................23
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p) Financial instruments .................................................................................................24
q) Commitments .............................................................................................................26
r) Information on financial risks management ..............................................................27
s) Related parties ............................................................................................................27
t) Events after the balance sheet date ............................................................................27
IV. AUDITOR’S REPORT ......................................................................................................28
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I. INTERIM CONSOLIDATED MANAGEMENT REPORT
1. Commercial activities
GROUP (MEUR) H1 2015 H1 2014
Bookings 247,6 343,9
Backlog 763,6 793,5
During the first half year 2015, the Group booked new orders amounting to EUR 248 million, lower
than those of H1 2014 because of some late decision taking by customers and of the lack of signature
of big orders during the first six months of 2015 (no control on the timing of negotiations).
Emerging countries represented around 60% of new order bookings in H1 2015, thanks to important
new orders in Latina America and in the Middle East.
The Group is confident to book important new orders in H2 2015 and to reach a level of new order
bookings comparable to the one of 2014.
Backlog, at EUR 764 million, remained very strong and will allow a sustained level of activity during
the coming quarters.
The abovementioned new order booking and backlog figures exclude intersegment activities.
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2. Consolidated income statement
Revenue remained stable compared to H1 2014, but was lower than our forecast, due to delays
encountered by some customers on sites.
The gross profit margin was comparable to last year (14%).
in EUR million H1 2015 H1 2014
Revenue 297,5 296,8
Gross profit 41,9 42,3
EBITDA 9,6 10,7
EBITDA/Revenue +3,2% +3,6%
Recurring EBIT 5,0 6,3
Non-recurring gains and losses -5,3 -0,9
Operating profit (EBIT) -0,3 5,4
Net finance costs -3,0 -5,5
Share of the profit (loss) of
associates
-0,2 -0,2
Result before tax (continued
operations)
-3,6 -0,3
Income tax expenses -1,3 1,8
Net result from continued operations -4,9 1,5
Net result of discontinued operations 0,0 0,0
Net result for the period -4,9 1,5
Share of the Group in the net result -4,5 2,0
Results in EUR per share
Average number of shares 8.996.337 7.189.772
EBITDA per share 1,06 1,49
Earnings per Share (EPS) -0,50 0,28
Gross profit in % of revenue 14,1% 14,3%
EBITDA in % of revenue 3,2% 3,6%
Result before tax (continued
operation) in % revenue -1,2% -0,1%
Net result for the year in % revenue -1,6% 0,5%
H1 2015 EBITDA is in line with the H1 2014 results, despite the negative contribution of the Process
Heat Exchangers BU, which carries on its in-depth transition towards a profitable business model.
Excluding this BU, the H1 2015 EBITDA of the other BUs would have amounted to EUR 17.0 million
versus EUR 13.5 for H1 2014 (+26%).
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EBIT is impacted by the restructuring costs of the Process Heat Exchangers BU and by non-recurring
items (write-down on some non-trade receivables of the PHE BU).
Finance costs benefit from low short-term interest rates and from some foreign exchange gains on the
US dollar.
Income tax results from the profit made by the NAFTA BU.
Detailed explanations on the activities of this half year are given in the overview by business unit.
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3. Overview by business unit
a) Cooling Systems
Cooling System (MEUR) H1 2015 H1 2014
Bookings 134,1 178,2
Backlog 401,2 382,8
Revenue 108,1 133,5
EBITDA 5,3 3,4
EBITDA/Revenue 4,9% 2,6%
Average headcount 799 950
New orders booked by the Cooling Systems BU amounted to EUR 134 million during H1 2015.
Dry Cooling booked new orders in some new countries, whereas Wet Cooling also showed very strong
performances, with the signature of several contracts for new units or important revamping projects as
well as aftermarket service in Europe and in North America.
The BU is confident on the evolution of new order bookings during the second half year.
The backlog at end of June represented more than one year of activity.
Revenue, amounting to EUR 108 million, was lower than during H1 2014 because some contracts were
delayed by customers.
However, the global performances of this first half year are very good compared to those of H1 2014
(+56%), thanks mainly to the outstanding execution of our projects (both in Wet and Dry Cooling) and
to the strict management of our overheads costs thanks to increased synergies within the business unit.
b) Process Heat Exchangers
Process Heat Exchanger
(MEUR)H1 2015 H1 2014
Bookings 32,0 23,6
Backlog 62,9 36,4
Revenue 18,7 28,7
EBITDA -7,4 -2,8
EBITDA/Revenue -40,5% -9,6%
Average headcount 216 230
New order bookings at the end of June 2015 were higher than those of H1 2014, with a significant part
coming from the Middle East and South Korea.
The results remain too low and are still negatively impacted by some old contracts. Excluding the non-
recurring items, the normalized operating profit amounted to EUR -1.1 million, due to the lack of volume
and thus of profit recognition (only EUR 18 million revenue). An action plan has been launched to reorganize
the BU, to allocate resources in France, Belgium, Middle East and Korea better and to improve project
management as well as financial control.
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c) Air Quality System
AQS (MEUR) H1 2015 H1 2014
Bookings 25,4 96,8
Backlog 157,6 199,3
Revenue 57,7 52,9
EBITDA 1,7 0,0
EBITDA/Revenue 2,9% 0,0%
Average headcount 373 299
Even though H1 2015 new order bookings (slightly above EUR 25 million) were lower than those of
H1 2014, the second quarter saw an increase of business opportunities as well as some new orders,
particularly in Africa and in Asia.
The BU management is confident for the second half year, especially due to the fact that, since end of
June 2015, new order intentions have been booked and other major decisions are expected very soon.
These evolutions will allow the 2015 new order bookings to reach the level of 2014.
Despite this temporary slowdown in terms of new order bookings during the first six months, EBITDA
improved significantly versus the same period of 2014. The backlog at the end of June still represented
more than one year of activity.
The Flue Gas Desulfurization (FGD) activities complete the traditional filtration activities with
contracts all around the world, in Asia, in Central America and in Europe. This diversification,
combined with the new business model put in place within the BU three years ago, shows its efficiency.
d) NAFTA
NAFTA (MEUR) H1 2015 H1 2014
Bookings 56,2 45,2
Backlog 141,9 191,6
Revenue 118,8 86,8
EBITDA 9,1 9,8
EBITDA/Revenue 7,7% 11,3%
Average headcount 335 321
The NAFTA Business Unit kept on showing strong results during this half year. After a slow beginning
of the year, the Business Unit activity bounced back with some important new orders booked during the
second quarter and in the end, new order bookings were higher than during H1 2014. Backlog decreased
versus one year ago, due to the progress made on the ReACT TM project, but it remains high despite the
lack of any new mega-project. The backlog is well diversified, with a broad range of products like
aftermarket service, Heat Recovery Steam Generators, Industrial boilers, Fabric filters, Electrostatic
precipitators, a ReACT TM unit and Recuperative heaters.
The BU still displays very strong results with a solid EBITDA, in line with the budgeted figure.
Management keeps on focusing on overhead cost control to ensure the future profitability and on
developing Delta’s activities abroad.
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4. Consolidated balance sheet
in M€ 30/06/2015 31/12/2014
Non-current assets 125,7 123,1
Net Deferred tax 22,0 20,6
Stock and net WIP -11,7 -14,8
Trade Receivable 191,6 144,0
Other current receivable 11,8 12,4
Cash & cash equivalent 111,0 139,0
TOTAL ASSETS 450,4 424,3
Non current liabilities 8,1 11,4
Borrowings LT 2,2 96,4
Borrowings ST 194,9 83,7
Trade payables 180,1 166,4
Other current payables 26,0 23,0
TOTAL LIABILITIES 411,3 380,9
EQUITY 39,1 43,4
NWC -14,5 -47,8
NET DEBT / (CASH) 86,1 41,1
Non current assets 125,7 123,1
Net working capital -14,5 -47,8
NET CAPITAL EMPLOYED 111,2 75,3
(1) Stock and net WIP is the sum of ‘Inventories’, ‘Amount due from customer for contract work’ & ‘Amount due to
customers for contract work’ (see p 11)
The increase of Group assets & liabilities is partly due to the increase of the US dollar exchange rate
versus the Euro.
Net debt increased due to a combination of events:
Delays to get customer payments in China and in the Process Heat Exchangers BU.
Delays in the final acceptance of some major projects of which the execution is completed.
On-site construction of some mega projects, which uses cash (Plant Vogtle, ReACT TM,
Kozienice).
Lower level of new order bookings in H1 2015 and hence of customer advance payments.
An expected receivable of EUR 12 million had been paid on July 6th, so just after the closing of the
books.
For the reasons explained in point 5, the long-term financial debts have been reclassified as short-term
financial debts.
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5. Reinforcement of equity
Due to the debt increase, some ratios imposed by financing agreements were not respected as of 30 June
2015. The contract between the Group and its financial creditors foresee, in such a case, a possibility to
remedy through a reinforcement of the Group equity.
In this context the Hamon & Cie board of directors has proposed to proceed with a capital increase soon,
via (among others) a contribution in kind by Sopal International SA of the shares it holds in Esindus SA
(Spain) in exchange of Hamon shares.
6. Post Balance Sheet Events
There are no significant post balance sheet events to report.
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II. DECLARATION OF RESPONSIBILITY
We hereby certify that, to the best of our knowledge, the condensed Consolidated Interim Financial
Statements prepared in accordance with the IAS 34 “Interim Financial Reporting” as adopted by the
European Union, give a true and fair view of the assets, liabilities, financial position and profit or loss
of the Group for the first half year of 2015. The commentary on the overall performance of the Group
from page 1 to 7 in our view offers a fair and balanced review of the overall performance of the business
during the first half year of 2015. Any material related parties’ transactions or conflicts of interest have
been disclosed in the financial information. There have been no material changes to the risks and
uncertainties for the Group as outlined in the 2014 Annual Report; these risks and uncertainties remain
applicable for the financial performance of the Group for the remainder of 2015.
4 September 2015
Francis Lambilliotte
CEO
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III. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1. Condensed consolidated statement of profit or loss
in EUR '000' S1 2015 S1 2014
Revenue 297.543 296.805
Cost of sales (255.629) (254.467)
Gross profit 41.915 42.338
Sales & marketing costs (7.249) (7.636)
General & administrative costs (31.713) (27.352)
Research & development costs (775) (1.194)
Other operating income / (expenses) 2.800 95
Operating profit before non-recurring items (REBIT) 4.977 6.251
Restructuring costs (1.266) (634)
Impact of Changes in consolidation scope - -
Impairment / reversal of impairment on non-current assets - -
Other non-recurring items (4.050) (200)
Operating profit (EBIT) (339) 5.417
Interest income 94 189
Interest charges (3.133) (5.699)
Share of the profit (loss) of associates & joint-ventures (207) (156)
Result before tax (3.585) (250)
Income taxes (1.267) 1.758
Net result from continued operations (4.852) 1.509
Net result of discontinued operations - -
Net result (4.852) 1.509
Equity holders of the company (4.497) 1.987
Non controlling interests (355) (478)
Earnings per share
Continued and discontinued operations
Basic earnings per share (EUR) (0,50) 0,28
Diluted earnings per share (EUR) (0,50) 0,28
Based on their strike price, the stock options granted to
Group employees have no dilutive impact at period(s) end.
Continued operations
Basic earnings per share (EUR) (0,50) 0,28
Diluted earnings per share (EUR) (0,50) 0,28
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2. Condensed consolidated statement of comprehensive income
in EUR '000' H1 2015 H1 2014
Net result (4.852) 1.509
Other comprehensive income
Items that may be reclassified subsequently to result
Reclassif ication of previously recognized changes in fair value of
available-for-sale assets to net result
Change in fair value of hedging instruments 169 (199)
Changes in currency translation reserve 603 540
Items that may not be reclassified subsequently to result
Actuarial gains/loss on defined benefit plan -
Other comprehensive income, net of taxes 772 341
Comprehensive income (4.080) 1.850
Equity holders of the company (4.060) 1.767
Non controlling interests (20) 83
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3. Condensed consolidated statement of financial position
in EUR '000' 30/06/2015 31/12/2014
ASSETS
Non-current assets
Intangible assets 24.566 23.897
Goodw ill 50.036 48.997
Property, plant & equipment 41.676 41.080
Investment in associates & joint-ventures 4.416 3.755
Deferred tax assets 28.514 27.185
Available-for-sale f inancial assets 2.196 1.980
Trade and other receivables 2.812 2.963
Derivative f inancial assets - 407
154.216 150.263
Current assets
Inventories 13.552 13.765
Amount due from customers for contract w ork 76.711 89.728
Trade and other receivables 191.602 143.981
Derivative f inancial assets 505 5.953
Cash and cash equivalents 110.991 138.987
Current tax assets 11.213 6.414
Available-for-sale f inancial assets 53 -
404.627 398.828
Total assets 558.843 549.091
EQUITY
Share capital 21.643 21.643
Reserves 14.556 14.368
Retained earnings 369 4.668
Equity attributable to the equity holders of the company 36.567 40.680
Non controlling interests 2.580 2.672
Total equity 39.147 43.352
LIABILITIES
Non-current liabilities
Financial liabilities 2.169 96.438
Provisions for pensions 5.733 6.157
Provisions for other liabilities and charges 261 323
Deferred tax liabilities 6.494 6.579
Other non-current liabilities 2.117 4.958
16.774 114.456
Current liabilities
Financial liabilities 194.874 83.685
Amount due to customers for contract w ork 101.936 118.249
Trade and other payables 180.086 166.364
Current tax liabilities 4.368 1.291
Derivative f inancial liabilities 16.636 16.771
Provisions for other liabilities and charges 5.021 4.923
502.921 391.284
Total liabilities 519.695 505.739
Total equity and liabilities 558.843 549.091
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4. Condensed consolidated statement of changes in equity
in EUR '000'
Share
capital
Legal
reserve
Share
premium
Retained
earnings
ow n
shares
AFS
reserve
Share-
based
payments
Hedging
reserve
defined
benefit
pension
plans
Currency
translation
reserves
Equity -
Attribuable
to equity
holders of
the parent
Non
controlling
Interests
Total
equity
Balance at 1 January 2014 1.892 671 14.550 7.968 (92) 4 153 (757) (350) (1.278) 22.762 4.475 27.237
Comprehensive income - - - 1.831 - - - (199) - 135 1.767 83 1.850
Capital increases - - - - - - - - - - - 1.395 1.395
Dividends paid to shareholders - - - - - - - - - - - (26) (26)
Other movements - - - - - - - 70 - (0) 70 - 70
Balance at 30 June 2014 1.892 671 14.550 9.799 (92) 4 153 (886) (350) (1.143) 24.599 5.927 30.526
Balance at 1 January 2015 2.188 671 34.005 4.668 (157) 4 153 (902) (947) 997 40.680 2.672 43.352
Comprehensive income - - - (4.496) - - - 169 - 266 (4.060) (20) (4.080)
Dividends paid to shareholders - - - - - - - - - - - (72) (72)
Other movements (17) - - - (35) - - - - - (53) - (53)
Balance at 30 June 2015 2.171 671 34.005 172 (192) 4 153 (733) (947) 1.264 36.567 2.580 39.147
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5. Condensed consolidated cash flow statement
S1 2015 S1 2014
Cash flows from operating activities
Cash received from customers 315.644 314.603
Cash paid to suppliers and employees (357.055) (311.027)
Cash generated from operations before taxes (41.411) 3.576
Other f inancial expenses and income (paid)/received 1.059 (1.616)
Income taxes paid (2.646) (3.581)
Other cash received / (paid) (169) -
Net cash from operating activities (43.167) (1.621)
Restructuring costs (1.302) (656)
Net cash from operations after restructuring (44.469) (2.277)
Cash flows from investing activities
Dividends received 83 44
Proceeds on disposal of subsidiaries (net of cash disposed) - -
Proceeds on disposal of PP&E 806 236
Proceeds/(Purchase) of available for sale f inancial assets (212) -
Acquisition of Subsidiaries (net of cash acquired) (761) -
Acquisition of PP&E (1.816) (2.330)
Increase/(decrease) of government grants - -
Disposal/(purchase) of other intangible assets (855) (746)
Capitalized development costs (464) (475)
Net cash from investing activities (3.219) (3.271)
Cash flows from financing activities
Dividends paid to shareholders - -
Dividends paid to non controlling interests (72) (26)
Capital Increase - -
Proceeds from issuance of shares to non controlling interests - 1.395
Interest received 94 189
Interest paid (4.938) (3.908)
Proceeds from bond issue - 52.500
Proceeds from new bank borrow ings 17.826 50.352
Repayment of borrow ings (309) (52.500)
Net cash from financing activities 12.601 48.002
Other cash flow mouvements
Other variations from discontinued operations - -
Net cash on acquisition of subsidiaries (0) -
Other net cash flows (0) -
Net variation of cash and cash equivalents (35.086) 42.454
Cash and cash equivalents at beginning of period 138.987 120.133
Impact of translation differences 7.090 796
Cash and cash equivalents at end of period 110.991 163.383
Net variation of cash and cash equivalents (35.086) 42.454
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6. Notes to the condensed consolidated interim financial statements
a) Declaration of compliance
The condensed consolidated interim financial statements are prepared in accordance with International
Financial Reporting Standard (IFRS) as adopted by the European Union and IAS 34- Interim Financial
Reporting.
The condensed consolidated interim financial statements do not include all the information required in
the yearly consolidated financial statements publication and must therefore be read together with the
2013 consolidated financial statements published in the 2013 Annual Report.
The publication of these condensed consolidated interim financial statements was approved by the
Board of Directors on 03 September 2015.
b) Principal accounting policies
The accounting policies used for the preparation of the condensed consolidated interim financial
statements are consistant with those used in the 2014 consolidated financial statements with the
exception of the following new standards which are both in effect from annual periods beginning on or
after 1 January 2015:
IFRIC 21 - Levies
Adoption of these new standard did not cause any material impact on the consolidated interim financial
statements of the Group and did not require restatement of past consolidated interim financial statements
used for comparison purposes.
The Group has decided not to anticipate the application of revised or new standards and interpretations.
The application of these revised or new standards and interpretations should have no significant impact
on the consolidated financial statements.
c) Subsidiary companies
The consolidation scope has not been modified since 31 December 2014.
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d) Exchange rates used by the Group
Exchange rates for 1 EUR
H1 2015 2014 H1 2015 H1 2014
UAE Dirham AED 4,1095 4,4593 4,1106 5,0353
Australian Dollar AUD 1,4550 1,4829 1,4373 1,5072
Brazilian Real BRL 3,4699 3,2207 3,3143 3,1513
Canadian Dollar CAD 1,3839 1,4063 1,3856 1,5047
Chilean Peso (100) CLP 7,1003 7,3742 6,9413 7,5938
Chinese Yuan CNY 6,9366 7,5358 6,9626 8,4734
Pound Sterling GBP 0,7114 0,7789 0,7328 0,8216
Hong-Kong Dollar HKD 8,6740 9,4170 8,6776 10,6397
Indonesian Rupiah (100) IDR 149,3843 150,7610 145,0318 161,0189
Indian Rupee INR 71,1873 76,7190 70,3378 83,3651
South Korean Won (100) KRW 12,5127 13,2480 12,3102 14,3992
Mexican Peso MXN 17,5332 17,8679 16,9760 18,0024
Malaysian Ringgit MYR 4,2185 4,2473 4,0661 4,4834
Polish Zloty PLN 4,1911 4,2732 4,1387 4,1812
Saudi Riyal SAR 4,1953 4,5555 4,1990 5,1415
Thai Baht THB 37,7960 39,9100 36,8742 44,7746
Turkish Lira TRY 2,9953 2,8320 2,8692 2,9684
U.S. Dollar USD 1,1189 1,2141 1,1192 1,3713
South African Rand ZAR 13,6416 14,0353 13,2874 14,6705
Period-end rate Average rate
e) Information by segment
The Group is organized in five Business Units: Cooling Systems, Process Heat Exchangers, Air Quality
System and NAFTA. Additional Business Unit information is presented in the first part of this annual
report.
The results of a segment and its assets and liabilities include all the elements that are directly attributable
to it as well as the elements of the income, expenses, assets and liabilities that can reasonably be
allocated to a segment. Segment profit represents the profit earned by each segment after allocation of
central administration costs and directors’ salaries, share of profits of associates and investment
revenues, to the extent that they can be allocated to a segment, but before finance costs. This is the
measure regularly presented to the chief operating decision maker for the purposes of resources
allocation and assessment of segment performances.
The COMEX is the operational decision maker for all the Business Units.
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Statement of profit or loss
en EUR '000'
Cooling
Systems
Process Heat
Exchangers
Air Quality
SystemNAFTA
Non
allocatedElimination Total
For the period ended 30 June 2014
Revenue third party 133.492 28.421 51.883 82.980 29 - 296.805
Inter-segment revenue 26 295 979 3.839 - (5.139) -
Total revenue 133.518 28.716 52.862 86.819 29 (5.139) 296.805
Operating profit before non-recurring items (REBIT) 1.200 (3.334) (322) 8.942 (235) 6.251
Non-recurring items (626) 6 (214) - - (834)
Operating profit (EBIT) 574 (3.328) (536) 8.942 (235) 5.417
EBITDA 3.417 (2.768) 8 9.751 295 10.703
Interest income 189 189
Interest charges (5.699) (5.699)
Share of the profit/(loss) of associates (156) (156)
Result before tax - (249)
Income taxes 1.758 1.758
Net result from continued operations - 1.509
en EUR '000'
Cooling
Systems
Process Heat
Exchangers
Air Quality
SystemNAFTA
Non
allocatedElimination Total
For the period ended 30 June 2015
Revenue third party 108.060 18.356 57.671 113.434 22 - 297.543
Inter-segment revenue 46 379 17 5.320 12 (5.774) -
Total revenue 108.106 18.735 57.688 118.754 34 (5.774) 297.543
Operating profit before non-recurring items (REBIT) 3.469 (8.016) 1.231 8.084 211 4.977
Non-recurring items (583) (3.970) (122) 39 (680) (5.316)
Operating profit (EBIT) 2.886 (11.987) 1.108 8.123 (469) (339)
EBITDA 5.336 (7.430) 1.673 9.140 838 9.555
Interest income 1.417 1.417
Interest charges (4.456) (4.456)
Share of the profit/(loss) of associates (207) (207)
Result before tax (3.585)
Income taxes (1.267) (1.267)
Net result from continued operations (4.852)
Other elements of the statement of profit or loss
in EUR '000'Cooling
Systems
Process Heat
Exchangers
Air Quality
SystemNAFTA
Non
allocatedTotal
For the periodr ended 30 June 2014
Depreciation and amortization (2.217) (566) (330) (676) (530) (4.452)
Impairment of goodw ill - - - - - -
(Impairment) / reversal of impairment on inventory - 226 - - - 226
(Impairment) / reversal of impairment on trade receivables (201) - (200) - - (401)
(Increase) / decrease in provisions (142) 14 131 86 (508) (420)
For the periodr ended 30 June 2015
Depreciation and amortization (1.867) (519) (442) (1.019) (627) (4.474)
Impairment of goodw ill - - - - - -
(Impairment) / reversal of impairment on inventory 11 (12) - - - (1)
(Impairment) / reversal of impairment on trade receivables 139 - (65) - - 74
(Increase) / decrease in provisions 109 (75) 21 (1.064) - (1.009)
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Statement of financial position information
in EUR '000'Cooling
Systems
Process Heat
Exchangers
Air Quality
SystemNAFTA
Non
allocatedTotal
As of 31 December 2014
Assets 139.499 56.647 94.865 63.244 191.081 545.336
Investments in associates - - - - 3.755 3.755
Total assets 139.499 56.647 94.865 63.244 194.836 549.091
Total liabilities 135.457 31.049 72.714 51.139 215.379 505.738
Capital expenditures 2.750 919 959 1.189 - 5.817
As of 30 june 2015
Assets 158.004 66.752 85.188 78.040 166.443 558.842
Investments in associates - - - - 4.416 -
Total assets 158.004 66.752 85.188 78.040 170.858 558.842
Total liabilities 142.207 32.715 61.619 47.275 235.878 519.694
Capital expenditures 1.317 403 351 321 - 2.392
All assets and liabilities (except for cash and cash equivalents, financial liabilities and current/deferred
tax assets and liabilities) are, when applicable, allocated to reportable segments.
f) Operating expenses
in EUR '000' H1 2015 H1 2014
Gross remuneration 51.209 42.746
Employer's contribution for social security 5.768 6.520
Other personnel costs 2.466 1.838
Charges/costs of the personnel 59.443 51.104
Depreciation & amortization 4.475 4.452
Other operating expenses 23.290 22.623
Total gross operating expenses 87.208 78.179
Costs allocation (1) (47.471) (41.997)
Total net operating expenses 39.737 36.182
Sale & marketing costs 7.249 7.636
General & administrative costs 31.713 27.352
Research & development costs 775 1.194
Total net operating expenses 39.737 36.182
Average Headcount 1.777 1.850
(1) Costs of time spent by employees on development
projects, proposals and customer contracts
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Gross remuneration increases due to a combinaison of factors :
The appreciation of the US dollar vs Euro
The inflation in the emerging markets
The use of temporary staff in order to complete major projects (costs allocated to the projects)
The headcount decreases compared to 2014 due to the scope exit of the Indian affiliate Hamon Shriram
Cottrell PVT Ltd (still included on June 30th 2014).
g) Other operating income (expenses)
in EUR '000' H1 2015 H1 2014
Dividends and other financial income 83 44
Profit/(loss) on disposals of assets 163 142
Exchange differences, net 2071 60
(Impairment)/reversal of impairment of current assets 73 (400)
Other misc. operating income/(expenses) 409 250
Total 2.800 95
The other operating incomes increase vs S1 2014 thanks to a positive exchange diffence during the first
semester of 2015. The other miscellaneous incomes are mostly insurance revenues and sub-letting
installations.
h) Non-recurring income (expenses)
in EUR '000' H1 2015 H1 2014
Restructuring costs (1.266) (634)
Impact of Changes in consolidation scope - -
Impairment / reversal of impairment on non-current
assets - -
Gain/(loss) on disposal of AFS - -
Other (4.050) (200)
Other non-recurring items (4.050) (200)
-
Total (5.316) (834)
Restructuring costs are related to the Business Unit Process Heat Exchangers and the other non-curring
items are writte-down on non-trade receivables.
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i) Net finance costs
in EUR '000' H1 2015 H1 2014
Interest charges (3.489) (4.613)
Costs related to anticipated reimbursement
Other borrowing costs 356 (1.086)
Amortized cost treatment (280) (714)
Factoring costs (60) (169)
Other f inance costs (3.333) (543)
Unrealised FX loss on LT loans
Unrealised FX gain on LT loans 4.030 340
Finance costs (3.133) (5.699)
Interest income 94 189
Interest income 94 189
Total (3.039) (5.510)
Interest charges on the debt of the Group have decreased in H1 2015 compared to H1 2014, mainly due
to:
The repayment of a bank borrowing in Brazil bearing high interest rates;
The historical low level on EURIBOR fixings.
This caption also includes the cost of carry coming from the setting-up of Interest Rate Swaps and Cross
Currency IRS and the pre-financing interests on factoring operations without recourse.
The section “Other borrowing costs” includes in H1 2015 unrealized exchange gains of eur 4 030
thousand (unrealized exchange gains of eur 340 thousand in H1 2014) on long term intercompany loans
denominated in foreign currencies; partially offset in “Other finance costs” by a negative fair value on
an fx forward transaction entered in August 2014 for the purpose of hedging a part of those long term
intercompany loans.
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j) Goodwill
As of 31 December 2013
Cost 50.504
Accumulated amortization and impairment (1.531)
Net carrying amount 48.973
For the year ended 31 December 2014
Exchange difference 2.530
Entry / changes in consolidation scope (2.506)
Net carrying amount at closing date 48.997
As of 31 December 2014
Cost 50.528
Accumulated amortization and impairment (1.531)
Net carrying amount 48.997
For the year ended 30 June 2015
Exchange difference 1.039
Net carrying amount at closing date 50.036
As of 30 June 2015
Cost 51.567
Accumulated amortization and impairment (1.531)
Net carrying amount 50.036
No impairment has been identified on the goodwill as of 30 June, 2015. Besides the currency exchange,
no variation or movement was registered during H1 2015.
k) Available-for-sale financial asset
Non
currentCurrent
For the year ended 31 December 2014
Balance at opening date 2.633 1
Disposals - (1)
Transfer from one caption to another (737) -
Other variations 1 -
Exchange difference 83 -
Balance at closing date 1.980 -
For the year ended 30 June 2015
Balance at opening date 1.980 -
Additions 179 53
Exchange difference 37 -
Balance at closing date 2.196 53
No material variation or movement was registered during H1 2015.
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l) Construction contracts
in EUR '000'30/06/15 30/06/14
Contract costs incurred and recognised profits (less
recognised losses to date) 1.234.374 928.030
Progress billings (1.259.599) (968.553)
Total (25.225) (40.523)
Amount due from customers for contract w ork 76.711 78.795
Amount due to customers for contract w ork (101.936) (119.318)
Total (25.225) (40.523)
Contracts in progress, i.e. those for which the guarantee period has not yet started, are maintained in the
balance sheet. The variation of both costs incurred and advances billed to customers, is thus linked to
the timing of acceptance of orders by our customers rather than the growth of our activities.
m) Trade and other receivables
in EUR '000' 30/06/15 31/12/14
Trade receivables 140.518 103.351
Impairment of doubtful receivables (1.797) (1.999)
Trade receivables - net 138.721 101.352
Retentions 234 (0)
Prepayments 16.449 12.673
Cash deposits and guarantees paid 1.274 1.340
Receivables on related parties 2.573 3.807
Other receivables 35.165 27.773
Total 194.415 146.944
Non-current Trade and other receivables
Receivables on related parties 369 369
Cash deposits and guarantees paid 1.161 1.224
Other non-current receivables 1.282 1.369
Less: non-current receivables (2.812) (2.963)
Trade and other receivables - current 191.602 143.981
On 30 June 2015, the amount of receivables assigned without recourse to financial organizations and
that are deducted from the section ‘Trade receivables’ according to the criteria included in IAS 39 is
EUR 60 million (EUR 57 million in December 2014).
Local practice sometimes requires that customers retain a percentage on payments (called retention)
until the final acceptance of the contract. This percentage is generally limited to 10%.
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n) Financial liabilities
in EUR '000' 30/06/15 31/12/14
Bank borrowings 67.181 49.739
Bank overdrafts 1 289
Sub-total bank borrowings 67.182 50.028
Obligations under finance lease 2.471 3.296
Treasury notes 69.875 69.354
Other financial commitments 57.515 57.446
Sub-total other borrowings 129.861 130.096
Total 197.043 180.123
Of which:
Current (due for settlement within the year) 194.874 83.685
Amount due for settlement in the 2nd year 562 39.761
Amount due for settlement in the 3rd year 357 359
Amount due for settlement in the 4th year 136 136
Amount due for settlement in the 5th year and after 1.114 56.182
Sub-total non-current: 2.169 96.438
Total 197.043 180.123
Of which:
Borrowings due for settlement within the year in
EUR 182.789 68.784
USD 6.457 5.154
Others 5.629 9.747
Non-current borrowings in
EUR 2.161 96.438
USD 0 0
Others 8 0
Total 197.043 180.123
Group bank borrowings as of 30 June 2015 (EUR 67,2 million) are mostly related to the syndicated
credit facility of July 2011. Please refer to our annual report 2014 for details of securities, undertakings
and financial covenants pertaining to this credit agreement.
The EUR 55 million senior bonds due in 2020 is reported under section “Other financial commitments”.
The bonds were issued at 100 per cent of the par on 30 January 2014 and will be redeemed at par on 30
January 2020. They bear interest at an annual rate of 5.5 per cent. The bonds are listed on the regulated
market of NYSE Euronext Brussels.
Certain covenants under our financing agreements may not technically be complied with on 30 June
2015. In such situation, the contractual provisions which bind the Group and its credit providers and
bondholders provide for the possibility of remediation through the strengthening of the Group's net
assets which is planned soon.
Under the current situation, the IFRS rules foresee that the total debt falling under the covenants must
be reclassified as short term debt (reclassification of EUR 112,5 million as of June 2015). In this context
the Hamon & Cie board of directors has proposed to proceed with a capital increase soon, via (among
others) a contribution in kind by Sopal International SA of the shares it holds in Esindus SA (Spain) in
exchange of Hamon shares.
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23
The Belgian Treasury note program continues to be very successful and allows the Group to finance
itself at even better conditions than through the existing credit facility with our pool of banks.
Both the senior bonds and the Belgian Treasury notes give the Group an alternate and additional source
of funding.
o) Derivative instruments
In EUR '000' 30/06/15 31/12/14 30/06/15 31/12/14
Cash flow hedge
Forward currency contracts sales Assets
Liabilities 108.149 102.354 (9.677) (6.679)
Forward currency contracts purchases Assets 3.700 41
Liabilities
Interests rate swaps 31.424 31.424 (733) (902)
Net investment hedge
Forward currency contracts sales Assets
Liabilities 18.607 18.607 (3.690) (1.864)
Cross currency swaps 11.424 11.424 (2.034) (942)
Total fair values 0 0 (16.134) (10.345)
0 0 (6.457) (3.708) Fair values recognized in the hedging reserves in Equity
Derivative financial instruments designated as "cash flow
hedge" and "net investment hedge"
Notional or
Contractual
amount
Fair Value
During H1 2012, Hamon entered into various 5-year hedging transactions. Part of these transactions
took the form of Cross currency IRS. These are reviewed as two synthetic operations, a EURO IRS
paying a fixed leg and a cross currency swap with two fixed legs. The IRS’s pay fixed legs at 1,335%
against EURIBOR 3 months and are effective hedges against the interest rate fluctuations on existing
borrowings. The CCIRS fixed-to-fixed are hedging part of our net investment in the United States of
America.
The increase of long term interest rates during H1 2015 generated an reduction in the negative fair
values of the EURO IRSs which have been recognized in other comprehensive income.
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En EUR '000' 30/06/15 31/12/14 30/06/15 31/12/14
Forward currency contracts sales Assets 2.266 3.130 1 1
Liabilities 18.594 51.150 (355) (354)
Forward currency contracts purchases Assets 47.841 23.398 504 287
Liabilities 12.930 (147)
under "Unrealized exchange gains" 504 289
under "Unrealized exchange losses" (502) (354)
2 (65)
Derivative financial instruments designated as "held for
trading"
Fair values recognized in the income statement
Notional or Contractual
amountFair Value
Forward currency contracts used to hedge the transactional risks on currencies are accounted as if they
were held for trading. However, such forward currency contracts are only used to hedge existing
transactions and commitments and are therefore not speculative by nature.
The changes in fair values were directly recognized in the income statement in unrealized exchange
gains or losses.
p) Financial instruments
Below is a comparison of the carrying amount and fair value of the financial assets and liabilities as of
30 June 2015 and the hierarchy of fair values.
In EUR '000'
Carrying
amount Fair values
Hierarchy of fair
values
Financial Assets
Cash and cash equivalents 110.991 110.991 Niveau 2
Available-for-sale financial assets 2.249 2.249 Niveau 3
Loans and receivables 171.451 171.451 Niveau 2
Derivative financial assets 505 505 Niveau 2
285.196 285.196
Financial Liabilities
Borrowings at amortized cost 142.043 142.043 Niveau 2
Senior bond 55.000 56.018 Niveau 1
Other payables 141.964 141.964 Niveau 2
Derivative financial liabilities 16.636 16.636 Niveau 2
355.644 356.661
30/06/15
Hamon Press
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In order to reflect the importance of data used for the valuation of fair values, the Group classifies this
valuation according to the following hierarchy:
Level 1: fair value measurements are derived from quoted prices (unadjusted) in active markets
for identical assets or liabilities;
Level 2: fair value measurements are derived from inputs, other than quoted prices included
within Level 1, that are observable for the asset or liability in question, either directly (i.e., as
prices) or indirectly (i.e., derived from prices);
Level 3: fair value measurements are derived from valuation techniques that include inputs
related to the asset or liability not based on observable market data (unobservable inputs).
A part of the financial liabilities were evaluated at amortized cost, which is net of transaction costs.
Borrowings principally include bank debt for which the fair value is comparable to the value in the
accounts because this debt includes a variable rate. The senior pari passu bonds at fix rate 5.50 % are
quoted on Euronext Brussels under the ISIN BE0002210764 and symbol HAM20. There is thus a
market fair value which differs from the book value. The quotation as of 30 June 2015 was at 101,85
on the Thomson Reuters Eikon platform.
“Other payables” are mainly trade payables for which the fair value does not differ from the book value
due to its current nature.
Derivative financial assets and liabilities only include forward currency contracts, IRS and CCIRS. They
are included in this note on the asset and liability sides for their fair value depending whether they are
positive or negative.
Hamon Press
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26
q) Commitments
in EUR '000' 30/06/15 31/12/14
Documentary credit / SBLC import 12.295 15.848
Bank guarantees 228.357 210.532
Insurance bonds 63.601 58.536
Total 304.254 284.916
As part of its business, the Group is often required to issue guarantees in favor of customers for the
reimbursement of advance payments, the correct execution of contracts or obligations of technical
guarantees. Some of these commitments require bank guarantees, insurance bonds or documentary
credits/SBLC import issued on the Group credit lines. The Group has also opened documentary credits
and SBLC Import in order to improve payment conditions with some of its suppliers.
The guarantees are issued amongst others under the syndicated credit line, a US Bonding line and
various local lines.
At 30 June 2015, the Group had ample available headroom under its committed guarantee lines.
The Group has also endorsed commitments relating to companies sold in 2005 (FBM), bankrupt (HRCI)
or associated companies (OHL and BFT) as follows:
in EUR '000' 30/06/15 31/12/14
Commitment of good project execution 182 182
Comfort letters to banks 1.286 1.286
Comfort letters to suppliers
Bank guarantees 48 48
Total 1.515 1.515
The commitments for which payment is probable are recorded as liabilities.
Hamon Press
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27
r) Information on financial risks management
The policies and the risk management procedures defined by the Group are the same as those described
in the 2014 annual report. We refer to note o for additional information.
s) Related parties
Transactions with related parties mostly include commercial relations with shareholders or entities
linked to shareholders of Hamon. The transactions between related parties are executed at arm’s length.
There was no significant variation in the nature of transactions with related parties during H1 2015
compared to 31 December 2014.
t) Events after the balance sheet date
There were no significant events between the balance sheet date and the date of these financial
statements.
28
IV. AUDITOR’S REPORT
29
Hamon Press
Information Release
Forward looking statements
This presentation contains forward-looking information that involves risks and uncertainties, including
statements about Hamon’s plans, objectives, expectations and intentions. Readers are cautioned that
forward-looking statements include known and unknown risks and are subject to significant business,
economic and competitive uncertainties and contingencies, many of which are beyond the control of
Hamon. Should one or more of these risks, uncertainties or contingencies materialize, or should any
underlying assumptions prove incorrect, actual results could vary materially from those anticipated,
expected, estimated or projected. As a result, neither Hamon nor any other person assumes any
responsibility for the accuracy of these forward-looking statements.
For all additional information
For all additional information, please contact:
Hamon Investors Relations [email protected]
Francis Lambilliotte, CEO [email protected] +32.10.39.04.05
Christian Leclercq, CFO [email protected] +32.10.39.04.22
Financial calendar
Trading update Q3 2015 31/10/2015
Publication of the full year 2015 results 29/02/2016
Annual General Shareholders Meeting 2015 26/04/2016
Hamon profile
The Hamon Group is a world player in engineering & contracting (design, installation and project
management). Its activities include the design, the manufacturing of critical components, the
installation and the after-sale services of cooling systems, process heat exchangers, air pollution
control (APC) systems, heat recovery steam generators and chimneys, used in power generation, oil
& gas and other heavy industries like metallurgy, glass, chemicals.
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