Bolloré: First half 2019 Results
| PRESS RELEASE |
| First half 2019 Results | September 12, 2019 |
Good results across all Bolloré Group activities
in the first half of 2019
|
First half 2019 results
| Bolloré's Board of Directors approved the financial statements for the first half of 2019 at its meeting of September 12, 2019. First half 2019 revenue amounted to 11,780 million euros, an increase of 4% at constant scope and exchange rates (+8% on a reported basis), reflecting:
Adjusted operating income (EBITA([3])) totaled 919 million euros, an increase of 27%([4]) at constant scope and exchange rates compared with the first half of 2018 (+31% on a reported basis), reflecting:
Net financial income amounted to 42 million euros([5]), compared with 377 million euros in the first half of 2018, mainly due to a lower revaluation of securities (Spotify, Tencent Music): +155 million euros in the first half of 2019, versus +456 million euros in the first half of 2018. Share of net income of equity-accounted non-operating companies was a negative 10 million euros, compared with 19 million euros in the first half of 2018, impacted by lower income from Socfin Group’s agricultural assets against a backdrop of declining raw materials, and the lower contribution by Telecom Italia([6]). After taking into account a tax expense of 235 million euros, the consolidated net income amounted to 530 million euros, compared with 605 million euros in the first half of 2018. Net income, Group share amounted to 149 million euros, compared with 97 million euros in the first half of 2018. Net debt amounted to 7,151 million euros, an increase of 2,268 million euros attributable to the 2,309 million euro increase in Vivendi’s net debt (share buyback, acquisition of Editis, etc.). Slight decrease of 41 million euro in Bolloré’s net debt excluding Vivendi to 5,017 million euros. Shareholders’ equity was 26,621 million euros (28,204 million euros as of December 31, 2018), reflecting the decline in Vivendi’s shareowner’s equity due to Vivendi’s repurchase of 5% of its own shares for 1.6 billion euros. The ratio of net debt to equity (gearing) was 27%, compared with 17% at the end of 2018. As of June 30, 2019, the Group’s liquidity position([7]), including undrawn confirmed lines and liquid investments represented approximately 2.2 billion euros for Bolloré and 9.6 billion euros including Vivendi. Interim dividend: 0.02 euros per share The Board of Directors of Bolloré has decided to pay an interim dividend of 0.02 euro per share, the same as last year, payable in cash or in shares. The ex-dividend date will be September 19, 2019 and payment or delivery of shares will be made on October 17, 2019. The subscription price for the option of dividend payment in shares is set at 3.44 euros and the subscription period will run from September 23, 2019 to October 11, 2019. The shares issued as a result will carry dividend rights from January 1, 2020. Group structure:
***** *** * Consolidated key figures for Bolloré |
| (in millions of euros) | 1st half 2019 | 1st half 2018 | Change |
| Revenue | 11,780 | 10,881 | 8% |
| EBITDA ([8]) | 1,410 | 1,195 | 18% |
| Depreciation and provisions | (492 ) | (493) | (0%) |
| Adjusted operating income (EBITA (8)) | 919 | 702 | 31% |
| Amortization resulting from PPA (8) | (186) | (158) | 18% |
| EBIT | 732 | 544 | 35% |
| of which equity-accounted operating companies | 6 | 15 | (62%) |
| Financial income | 42 | 377 | (89%) |
| Share of net income of equity-accounted non-operating companies | (10) | 19 | (153%) |
| Taxes | (235) | (335) | (30%) |
| Net income | 530 | 605 | (12%) |
| Net income, Group share | 149 | 97 | 54% |
| Minority interests | 381 | 508 | (25%) |
| June 30,2019 | December 31, 2018 | Change (€ m) | |
| Shareholders’ equity | 26,621 | 28,204 | (1,583) |
| Of which Group share | 9,341 | 9,234 | 107 |
| Net debt | 7,151 | 4,882 | 2,268 |
| Gearing ([9]) | 27% | 17% |
The Group’s liquidity position ([10]): as of June 30, 2019, including undrawn confirmed lines and liquid investments represented approximately 2.2 billion euros for Bolloré and 9.6 billion euros including Vivendi.
| Change in revenue by business in the first half |
| (in millions of euros) | 1st half | 1sthalf | 1st half | Reported | Organic |
| 2018 (1) | 2018 | growth | growth | |
| Transportation and Logistics | 2,974 | 2,969 | 2,947 | 1% | 0.2% |
| Oil logistics | 1,278 | 1,263 | 1,260 | 1% | 1% |
| Communications | 7,351 | 6,885 | 6,472 | 14% | 7% |
| Electricity Storage and Systems | 160 | 184 | 182 | (12%) | (13%) |
| Others (Agricultural Assets, Holding Companies) | 17 | 20 | 20 | (17%) | (16%) |
| Total | 11,780 | 11,321 | 10,881 | 8% | 4% |
- At constant scope and exchange rates
All amounts are expressed in millions of euros and rounded to the nearest decimal. As a result, the sum of the rounded amounts may differ slightly from the reported total.
| Change in revenue per quarter |
| (in millions of euros) | 1st quarter | 2nd quarter | ||||
| 2019 | 2018 (1) | 2018 | 2019 | 2018 (1) | 2018 | |
| Transportation and Logistics | 1,483 | 1,448 | 1,435 | 1,491 | 1,521 | 1,511 |
| Oil logistics | 665 | 671 | 670 | 613 | 592 | 590 |
| Communications | 3,458 | 3,271 | 3,123 | 3,893 | 3,614 | 3,349 |
| Electricity Storage and Systems | 75 | 90 | 89 | 85 | 94 | 93 |
| Others (Agricultural Assets, Holding Companies) | 8 | 10 | 10 | 8 | 10 | 10 |
| Total | 5,690 | 5,490 | 5,327 | 6,090 | 5,831 | 5,555 |
- At constant scope and exchange rates
All amounts are expressed in millions of euros and rounded to the nearest decimal. As a result, the sum of the rounded amounts may differ slightly from the reported total.
| EBITA by business |
| (in millions of euros) | 1st half 2019 | 1st half 2018 | Change |
| Bolloré Transportation & Logistics | 309 | 266 | 16% |
| Transportation and logistics(1) | 284 | 255 | 12% |
| Oil logistics | 25 | 11 | 122% |
| Communications | 718 | 542 | 32% |
| Electricity Storage and Systems | (81) | (83) | - |
| Other (Agricultural Assets, Holding companies)(1) | (27) | (23) | - |
| Total | 919 | 702 | 31% |
| % of revenue | 7.8% | 6.4% | 135bp |
- Before Bolloré trademark fees
A detailed presentation of the results is available .
The procedures for a limited review of the half-year financial statements have been carried out. The limited review report will be issued after a review of the half-year financial report.
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Comparability of financial statements
New standards applied from January 1, 2019
- IFRS 16 – “Leases”
- Application as of January 1, 2019, without restatement of comparative periods.
- Balance sheet recognition of right-of-use and lease liabilities in the amount of 2 billion euros.
- The application of IFRS 16 had a positive impact of 36 million euros on the Group’s EBITA at June 30, 2019 and a negative impact of 45 million euros on financial expenses.
- Change in the scope of consolidation
- Editis has been consolidated by Vivendi since February 1, 2019.
- InGrooves has been consolidated by UMG since March 15, 2019.
- Currencies
| June 30,2019 | June 30, 2018 | Change | |
| USD | 1.13 | 1.21 | 7% |
| GPB | 0.87 | 0.88 | 1% |
| JPY | 124.30 | 131.60 | 6% |
| ZAR | 16.04 | 14.89 | (8%) |
| NGN | 408.60 | 436.12 | 6% |
| CDF | 1,880.00 | 1,954.00 | 4% |
- Balance sheet assets and liabilities after changes related to new accounting standards
| Assets – In millions of euros | June 30,2019 | 1/1/2019(1) | Liabilities – In millions of euros | June 30,2019 | 1/1/2019(1) | |
| Goodwill | 15,469.6 | 14,438.6 | Share capital | 470.0 | 468.7 | |
| Other intangible assets | 10,278.3 | 10,286.6 | Share issue premiums | 1,293.7 | 1,265.7 | |
| Property, plant and equipment | 4,442.5 | 4,252.3 | Consolidated reserves | 7,577.5 | 7,364.5 | |
| Investments in equity affiliates | 4,562.5 | 4,507.2 | Shareholders’ equity, Group share | 9,341.2 | 9,098.9 | |
| Other non-current financial assets | 6,757.3 | 6,456.8 | Minority interests | 17,279.7 | 18,816.1 | |
| Deferred tax | 847.4 | 829.8 | Equity | 26,620.9 | 27,915.0 | |
| Other non-current assets | 789.2 | 662.3 | Non-current financial debts | 9,784.6 | 8,218.9 | |
| Non-current assets | 43,146.6 | 41,433.6 | Provisions for employee benefits | 932.4 | 866.6 | |
| Inventories and work in progress | 975.4 | 1,174.0 | Other non-current provisions | 429.0 | 393.7 | |
| Trade and other receivables | 7,805.6 | 7,555.1 | Deferred tax | 2,605.8 | 2,808.3 | |
| Current tax | 161.2 | 164.1 | Other non-current liabilities | 2,219.1 | 2,095.0 | |
| Other current financial assets | 997.4 | 1,080.5 | Non-current liabilities | 15,970.9 | 14,382.5 | |
| Other current assets | 757.9 | 662.6 | Current financial debts | 2,480.8 | 2,039.5 | |
| Cash and cash equivalents | 4,174.3 | 4,784.9 | Current provisions | 391.3 | 423.2 | |
| Current assets | 14,871.8 | 15,421.3 | Trade and other payables | 11,410.5 | 11,095.8 | |
| Total Assets | 58,018.4 | 56,854.9 | Current tax | 164.2 | 210.0 | |
| Other current liabilities | 979.8 | 788.8 | ||||
| Current liabilities | 15,426.6 | 14,557.4 | ||||
| Total liabilities | 58,018.4 | 56,854.9 |
- After changes related to new accounting standards
Glossary
- Organic growth: growth at constant scope and exchange rates.
- Net revenue (Havas Group): revenue after deduction of re-billable costs
- Adjusted operating income (EBITA): operating income before amortization of intangible assets related to business combinations – PPA (purchase price allocation), impairment of goodwill and other intangible assets related to business combinations.
- EBITDA: operating income before depreciation and amortization.
- Net financial debt/Net cash position: sum of borrowings at amortized cost, less cash and cash equivalents, cash management financial assets and net derivative financial instruments (assets or liabilities) with an underlying net financial indebtedness, as well as cash deposits backed by borrowings.
The non-GAAP measures defined below should be considered in addition to, and not as a substitute for other GAAP measures of operating and financial performance, and Bolloré considers these to be relevant indicators of the Group's operational and financial performance. Furthermore, it should be noted that other companies may define and calculate these indicators differently. It is therefore possible that the indicators used by Bolloré cannot be directly compared with those of other companies.
The percentages changes indicated in this document are calculated in relation to the same period of the preceding fiscal year, unless otherwise stated. Due to rounding in this presentation, the sum of some data may not correspond exactly to the calculated total and the percentage may not correspond to the calculated variation.
1 See glossary
2 Restated for the first-time application of IFRS 16, which had a positive impact of 36 million euros on EBITA, growth was 22% for the Group, +9% for Bolloré Transport & Logistics and +24% for Vivendi.
3 See glossary
4 Restated for the first-time application of IFRS 16, which had a positive impact of 36 million euros on EBITA, growth was +22% for the Group,
+9% for Bolloré Transport & Logistics and +24% for Vivendi.
5 The impact of the introduction of IFRS 16 (interest expense on lease liabilities) is a negative 45 million euros
6 Reclassified under equity-accounted non-operating companies since June 30, 2018
7 Excluding Vivendi.
8 See glossary
9 Gearing: ratio of net debt to equity
10 Excluding Vivendi
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