2003: A Very Good Year for Ipsos; Operating Profit +16% at 50.7 Million Euros; Net Profit -Group Share- +28% at 30.3 Million Euros.Business Editors PARIS--(BUSINESS WIRE)--March 23, 2004 Ipsos' consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenues for the year ended December December: see month. 31, 2003 totalled 569.7 million euros, an increase of 6%. At constant scope and exchange rates, revenues grew by 9.4%, at least twice as fast as the market and the other major international research companies. The market continued to consolidate Consolidate To combine the assets, liabilities, and other financial items of two or more entities into one. Notes: This term is generally used in the context of consolidated financial statements. in 2003. The major international players, including Ipsos
n the capability to cohere or stick together to form a mass. , skilled teams on a global level. Overall, 2003 saw Ipsos maintain its strategy of growth, international expansion and specialisation specialisation - A reduction in generality, usually for the sake of increased efficiency. If a piece of code is specialised for certain values of certain variables (usually function arguments), this is known as "partial evaluation". In a language with overloading (e.g. . Strong growth in operating profit and net profit Millions of euros 2003 2002 Change -------------------------------------- ----------- --------- --------- Revenues 569.7 538.4 +6% Gross profit 335.7 311.5 +8% Operating profit 50.7 43.6 +16% Net financial expenses (7.1) (5.9) - Net profit* 30.3 23.7 +28% * before amortisation of goodwill Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. came in at 50.7 million euros, a rise of 16%. Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was 8.9%, up from 8.1% in 2002, and the increase accelerated in the second half of the year. This operating margin figure is at the upper end of our forecasts, despite strongly adverse currency effects. At 2002 exchange rates, Ipsos would have achieved operating profit of 60 million euros, up 40%. This performance is especially remarkable since it came at a time when Ipsos was continuing to lay the foundation for future growth by bolstering its management structures, increasing R&D spending and stepping up internal training programmes. In addition, the improvement in profit margins was mainly due to companies already consolidated in 2002. This shows that all companies having joined Ipsos, whether recently or further in the past, benefit fully from being part of the group. Net financial expenses rose in line with the increase in debt, one third of which has been indexed on 10-year rates. There were no significant exceptional items affecting the 2003 financial statements. The tax rate remained lower than the common rate. Overall, Ipsos generated net profit (group share) of 30.3 million euros, up 28%. At 2002 exchange rates, the figure would have been 37.5 million euros, up 58%. Earnings per share (before amortisation Noun 1. amortisation - the reduction of the value of an asset by prorating its cost over a period of years amortization reduction, step-down, diminution, decrease - the act of decreasing or reducing something 2. of goodwill) increased sharply to 4.31 euros versus 3.54 euros in 2002. Consequently, distribution of a dividend of 0.85 euros per share (excluding tax credit) will be proposed to the Ipsos General Shareholder Assembly which corresponds with a 20% distribution rate, in line with the company's stated intentions at the time of the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. . Acquisitions in 2003 Ipsos acquired six companies in 2003: -- Belgium Belgium (bĕl`jəm), Du. België, Fr. La Belgique, officially Kingdom of Belgium, constitutional kingdom (2005 est. pop. 10,364,000), 11,781 sq mi (30,513 sq km), NW Europe. : INRA INRA Institut National de la Recherché Agronomique (France; National Institute for Agronomic Research) INRA Institute for Natural Resources in Africa INRA Inland Northwest Research Alliance Belgium, specialising in marketing and opinion research -- Taiwan Taiwan (tī`wän`), Portuguese Formosa, officially Republic of China, island nation (2005 est. pop. 22,894,000), 13,885 sq mi (35,961 sq km), in the Pacific Ocean, separated from the mainland of S China by the 100-mi-wide (161-km) Taiwan : Partner Market Research -- Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of : Market Explorer, specialising in advertising research -- USA: Marketing Metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. , specialising in CSM/CRM research -- Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. : The Mackay Mackay (məkī`), city (1991 pop. 40,250), Queensland, NE Australia on the Pioneer River. A port city, Mackay exports sugar, beef, and coal. Report, specialising in opinion research, and -- the marketing research division of NCS (Network Call Signaling) CableLabs version of MGCP. See MGCP/MEGACO. NCS - Network Computing System: Apollo's RPC system used by DEC and Hewlett-Packard.The protocol has been adopted by OSF. Pearson Pear·son , Lester Bowles 1897-1972. Canadian politician who served as prime minister (1963-1968). He won the 1957 Nobel Peace Prize for his role in the negotiation of a solution to the Suez crisis (1956). . These companies were consolidated as of July July: see month. 1 2003, with the exception of INRA Belgium (January January: see month. 1, 2003) and NCS Pearson (October October: see month. 1, 2003). A solid financial position Ipsos had net debt of 149 million euros at December 31, 2003, as opposed op·pose v. op·posed, op·pos·ing, op·pos·es v.tr. 1. To be in contention or conflict with: oppose the enemy force. 2. to 134 million a year earlier, following acquisition payments of 48.5 million euros during the year. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. was 198 million euros at the end of the year, against 192 million euros at December 31, 2002, giving gearing of 75.0%, below the limits set by Ipsos. The financial position was strengthened by the issue of 90 million US dollars of 10-year bonds in May 2003. 2004 outlook Market research spending should grow by around 5% in 2004. This growth is likely to be driven by rapid growth in several regions, such as Asia, Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and Central Europe Central Europe is the region lying between the variously and vaguely defined areas of Eastern and Western Europe. In addition, Northern, Southern and Southeastern Europe may variously delimit or overlap into Central Europe. , and by higher spending in industries like IT, telecoms and media. In this environment, Ipsos is confident in its ability to continue gaining market share, and therefore maintain growth at the 2003 level. This confidence is underpinned by a large number of initiatives resulting from investment in human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. , management structures and new services over the last few years. Our customers are increasingly demanding. They want to build closer relationships with strong, international and skilled research companies that are capable of producing and distributing top-quality information more quickly, while at the same time deploying powerful analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. resources that enable them to interpret, simulate simulate - simulation and anticipate precisely the needs and reactions of consumers, customers and citizens. This is how Ipsos is positioning itself in its market. In 2004: -- Acquisitions will continue, particularly in Asia, the USA and the UK. -- Organic growth is likely to be the same as in 2003, with growth in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). reaching at least 5%.-- Operating margin will further improve. Appendices ap·pen·di·ces n. A plural of appendix. : Balance sheet at December 31, 2003 Income statement Cash flow statement The presentation of 2003 activity and results will be available as of March 24 on www.ipsos.com. A conference call will take place on that day at 4 PM (CET CET abbr. Central European Time CET Central European Time CET n abbr (= Central European Time) → hora de Europa central CET abbr ). Nobody's unpredictable Our clients' clients are increasingly demanding. They change direction, change their views and preferences often and easily. We at Ipsos anticipate and meet those changes. We help our clients to understand their clients, to bring focus and clarity to even the most difficult situations. We understand the dynamics of their markets and we deliver the insight needed to give them the leading edge. Ipsos, listed on the Premier Marche Marche, region, Italy Marche (mär`kā) or the Marches, region (1991 pop. 1,429,205), 3,742 sq mi (9,692 sq km), E central Italy, extending from the eastern slopes of the Apennines to the Adriatic Sea. of the Euronext Paris Euronext Paris is France's securities market, formerly known as the Paris Bourse, which merged with the Amsterdam and Brussels exchanges in September 2000 to form Euronext NV, which is the second largest exchange in Europe behind the London Stock Exchange. Stock Exchange, is part of the SBF SBF Studium Biblicum Franciscanum (Franciscan School of Biblical Investigations; Jerusalem, Israel) SBF Small Block Ford (automotive engine) SBF Single Black Female SBF Société des Bourses Francaises 120 Index, adheres to the Next Prime segment and is eligible to the Differed Settlement System. Isin FR0000073298, Reuters Reuters British cooperative news agency. Founded in 1851 by Paul Julius Reuter, it was initially concerned with commercial news but began to serve a growing newspaper clientele after the London Morning Advertiser subscribed in 1858. ISOS ISOS IP (Internet Protocol) Service Operating System ISOS In Search of Sunrise (Dj Tiesto song) ISOS Isosceles ISOS In Search Of Space ISOS Inspection Service Operation Support .PA, Bloomberg Bloomberg A major global provider of 24-hour financial news and information including real-time and historic price data, financials data, trading news and analyst coverage, as well as general news and sports. IPS (1) (Inches Per Second) The measurement of the speed of tape passing by a read/write head or paper passing through a pen plotter. (2) (IPS) (Intrusion Prevention S :FP www.ipsos.com
Consolidated balance sheet
12/31/2003
Depreciations,
amortisations
and 12/31/2002
In thousand euros Gross provisions Net Net
----------------------- ------- -------------- -------- ----------
FIXED ASSETS
Intangible fixed assets
Start-up costs 523 212 311 134
Other intangible fixed
assets 32 404 22 119 10 285 10 784
Goodwill (arising on
acquisition) and
business goodwills 360 487 65 884 294 603 301 571
Tangible fixed assets 62 388 44 853 17 535 16 893
Financial fixed assets
Non-consolidated
participating
interests 150 9 141 2 663
Companies accounted for
using the equity method 287 287 310
Other financial fixed
assets 3 382 284 3 098 3 506
------- -------------- -------- ----------
TOTAL FIXED ASSETS 459 621 133 361 326 260 335 861
CURRENT ASSETS
Stocks and work in progress
Miscellaneous supplies 340 340 361
Surveys in progress 9 873 9 873 6 629
Receivables
Trade receivables 163 832 3 604 160 228 129 560
Other receivables 23 660 900 22 760 21 594
Marketable securities 2 537 78 2 459 6 160
Cash 31 175 31 175 28 984
TOTAL CURRENT ASSETS 231 417 4 582 226 835 193 288
Prepaid expenses,
deferred taxes and
other assets 17 537 17 537 12 348
----------------------- ------- -------------- -------- ----------
TOTAL ASSETS 708 575 137 943 570 632 541 497
----------------------- ------- -------------- -------- ----------
12/31/2003 12/31/2002
before appropriation
of income
------------------------------------------ ---------- ----------
SHAREHOLDERS' EQUITY
Share capital 7 048 7 005
Premium 175 045 173 989
Other reserves (retained earnings) 14 450 10 118
Foreign exchange difference -18 052 -12 684
Net income for the period after minority
interests 12 036 7 132
---------- ----------
Equity attributable to the group 190 527 185 560
Minority interests in consolidated reserves 5 203 2 949
Minority interests in net income for the period 2 698 3 382
---------- ----------
Minority interests 7 901 6 331
---------- ----------
TOTAL SHAREHOLDERS' EQUITY 198 428 191 891
Provisions for liabilities and charges 21 283 20 094
LIABILITIES
Long-term debt 182 429 168 877
Other liabilities
Advances & progress payments from customers 4 654 7 197
Trade payables 69 013 51 335
Tax and employment-related liabilities 54 360 41 278
Other liabilities 23 859 44 043
---------- ----------
TOTAL LIABILITIES 334 315 312 730
Prepaid income and other liabilities 16 606 16 782
------------------------------------------ ---------- ----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 570 632 541 497
------------------------------------------ ---------- ----------
Analytical Profit and Loss Account
In thousand euros 2003 2002
-------------------------------------------------- -------- --------
Revenues 569 708 538 426
Direct costs 234 049 226 889
-------- --------
GROSS MARGIN 335 659 311 537
Payroll costs including statutory employee profit-
sharing 197 376 182 191
General operating expenses 87 005 82 992
Other income and expense (net) 591 2 725
-------- --------
Total operating expenses 284 972 267 908
-------------------------------------------------- -------- --------
OPERATING PROFIT 50 687 43 629
-------------------------------------------------- -------- --------
Net financial expenses (7 054) (5 856)
-------------------------------------------------- -------- --------
NET PROFIT FROM ORDINARY ACTIVITIES OF CONSOLIDATED
ENTITIES 43 633 37 773
-------------------------------------------------- -------- --------
Net exceptional expenses (428) (144)
-------------------------------------------------- -------- --------
PROFIT OF CONSOLIDATED ENTITIES BEFORE TAX 43 205 37 629
-------------------------------------------------- -------- --------
Corporate income tax 10 259 10 555
-------------------------------------------------- -------- --------
PROFIT OF CONSOLIDATED ENTITIES AFTER TAX 32 946 27 074
-------------------------------------------------- -------- --------
Share of profit/ (losses) of companies
accounted for using the equity method 34 39
Goodwill amortisation 18 246 16 599
-------------------------------------------------- -------- --------
NET PROFIT BEFORE MINORITY INTERESTS 14 734 10 514
-------------------------------------------------- -------- --------
Minority interests in profit of the year 2 698 3 382
-------------------------------------------------- -------- --------
NET PROFIT ATTRIBUTABLE TO THE GROUP 12 036 7 132
-------------------------------------------------- -------- --------
NET PROFIT ATTRIBUTABLE TO THE GROUP BEFORE
THE IMPACT OF AMORTISATION OF GOODWILL
ARISING ON ACQUISITION AND
BUSINESS GOODWILL 30 282 23 731
-------------------------------------------------- -------- --------
Consolidated statement of cash flows
In thousand euros 2003 2002
-------------------------------------------------- -------- --------
Operating activities
Consolidated net profit attributable to the group 12 036 7 132
Non-monetary items with no cash impact
Amortisation and depreciation 13 275 14 293
Share in losses/(profits) of companies accounted for
using the equity method (34) (39)
Losses/(gains) on asset disposals 237 230
Amortisation of business goodwill and goodwill
arising on acquisition 18 246 16 601
Movement in other provisions (1 555) 504
Deferred taxation 713 4 672
Minority interests 2 698 3 382
Other items (179) (6)
-------- --------
Operating cash flow before working capital items 45 437 46 769
Decrease/(increase) in stocks and work in progress (2 819) 991
Decrease/(increase) in trade receivables (32 575) (10 056)
Decrease/(increase) in other receivables (612) 312
Increase/(decrease) in trade payables 15 948 2 485
Increase/(decrease) in accrued interest on debt 513 610
Increase/(decrease) in other liabilities 17 370 2 320
-------- --------
Change in working capital needs (2 175) (3 338)
-------------------------------------------------- -------- --------
CASH PROVIDED BY OPERATING ACTIVITIES 43 262 43 431
-------------------------------------------------- -------- --------
INVESTING ACTIVITIES
Acquisition of tangible and intangible fixed assets
(excluding business goodwill) (14 954) (11 900)
Acquisition of business goodwill (688) (5 656)
Acquisition of non-consolidated participating
interests (2 725)
Proceeds from disposals of tangible and intangible
assets 59
Proceeds from disposals of long-term investments 665
Decrease/(increase) in cash investments 3 065 (3 992)
Decrease/(increase) in other long-term investments 182 (1 580)
Increase/(decrease) in amounts payable on fixed
assets (29 608) 35 913
Impact of changes in consolidation scope (18 374) (42 759)
-------------------------------------------------- -------- --------
CASH USED IN INVESTING ACTIVITIES (59 653) (32 699)
-------------------------------------------------- -------- --------
FINANCING ACTIVITIES
Share issue 1 099 39 835
Issue of long-term debt 101 186 16 738
Repayment of long-term debt (71 937) (18 905)
Increase/(decrease) in bank overdrafts & short-term
debt (6 437) (39 973)
Dividends paid to parent company shareholders (2 202) (2 140)
Dividends paid to minority shareholders of
consolidated entities (2 143) (1 705)
-------------------------------------------------- -------- --------
CASH PROVIDED BY FINANCING ACTIVITIES 19 566 (6 150)
-------------------------------------------------- -------- --------
Opening cash 28 984 28 933
Impact of exchange rate fluctuations (984) (4 531)
Net change in cash 3 175 4 582
-------------------------------------------------- -------- --------
CLOSING CASH 31 175 28 984
-------------------------------------------------- -------- --------
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