AKKA Technologies : 2020 HY REPORT

2020 HALF-YEARLY FINANCIAL REPORT

2020 HALF-YEARLY FINANCIAL REPORT

A - 2020 HALF-YEARLY FINANCIAL STATEMENTS

CONSOLIDATED INCOME STATEMENT

INCOME STATEMENT	Note no.	30 June 2020	30 June 2019
in thousands of euros
REVENUE	2.1	777,969	891,422
External expenses	2.2	(192,607)	(180,188)
Taxes and duties	2.3	(5,623)	(6,230)
Personnel expenses	(596,042)	(632,376)
Net depreciation and provisions	2.4	(58,923)	(26,597)
Other current expenses		(1,611)	(2,157)
Other current income	2.5	11,754	3,411
Income from equity affiliates	143	1,209
Free shares and stock options	3.9	(1,155)	(3,393)
OPERATING PROFIT		(66,096)	45,103
Income from cash and cash equivalents	2.6	976	148
Cost of gross financial debt	2.6	(10,308)	(8,126)
COST OF NET FINANCIAL DEBT		(9,332)	(7,978)
Other financial income and expenses	2.6	(3,474)	(198)
PROFIT BEFORE TAX		(78,902)	36,926
Tax expense	2.7	22,119	(10,633)
CONSOLIDATED NET INCOME		(56,783)	26,293
Non-controlling interests		(583)	(40)
GROUP SHARE OF NET PROFIT		(57,366)	26,254
Earnings per share		-2.65 €	1.19 €
Diluted earnings per share		-2.35 €	1.19 €
Weighted average number of ordinary shares outstanding		21,668,724	22,062,285
Weighted average number of ordinary shares plus potential dilutive shares		24,411,370	22,111,260

NB: in the 2019 income statement, the items in "Other Non-Current Income and Expenses" have been reclassified by nature under the headings from which they originate (see note 1.7)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	Note no.	30 June 2020	30 June 2019
in thousands of euros
CONSOLIDATED NET INCOME		(56,783)	26,293
Actuarial gains and losses on pension obligations	3.10	-	(1,687)
Tax effect of items not to be recycled to profit or loss in subsequent periods		-	475
Items not to be recycled to profit or loss in subsequent periods		-	(1,212)
Gains and losses on hedging instruments	3.11	(43)	266
Change in translation differences		(22)	665
Tax effect of items to be recycled to profit or loss in subsequent periods		14	(69)
Items to be recycled to profit or loss in subsequent periods		(52)	861
CONSOLIDATED COMPREHENSIVE INCOME		(56,835)	25,943
Non-controlling interests		610	39
Group share		(57,444)	25,903

2

A - 2020 HALF-YEARLY FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEET

ASSETS	Note no.	30 June 2020	31 Dec. 2019
in thousands of euros
Goodwill	3.1	749,632	367,689
Intangible assets	3.3	46,920	24,729
Tangible assets	3.3	90,331	91,946
Rights of use - IFRS 16	3.4	147,748	149,704
Non-current financial assets	2.5	50,895	44,880
Securities of affiliated companies and joint ventures	48,044	47,901
Other non-current assets	3.5	13,672	27,246
Deferred tax assets		34,122	32,811
Non-current assets		1,181,364	786,907
Inventories and work in progress	3.6	12,929	9,502
Trade receivables	237,873	224,806
Other receivables	3.7	146,588	114,852
Cash and cash equivalents	3.8	317,069	469,231
Current assets		714,458	818,391
TOTAL ASSETS		1,895,824	1,605,299
LIABILITIES	Note no.	30 June 2020	31 Dec. 2019
in thousands of euros
Share capital	3.9	34,151	31,047
Share premiums	3.9	656	656
Consolidation reserves	3.9	263,892	199,941
Equity instruments (1)	176,219	172,911
Group share of net profit		(57,366)	73,041
Group share of equity		417,551	477,597

Non-controlling interests

Shareholders' equity

2,279641

419,831478,237

Non-current provisions	3.10	29,643	28,972
Non-current financial liabilities	3.11	747,257	467,712
Non-current IFRS 16 lease liabilities	3.11	120,012	123,415
Non-currentearn-out liabilities	3.1	12,169	-
Deferred tax liabilities		20,348	12,935
Non-current liabilities		929,429	633,035
Current provisions	3.10	8,256	2,519
Current financial liabilities	3.11	8,742	74,769
Current IFRS 16 lease liabilities	3.11	32,270	29,721
Trade payables		140,024	114,560
State - income taxes		5,668	11,145
Tax and social security liabilities excluding income tax	3.1	291,254	217,507
Current earn-out liabilities	13,778	2,314
Other liabilities	3.12	46,572	41,491
Current liabilities		546,564	494,026
TOTAL LIABILITIES		1,895,824	1,605,299

(1) ODIRNANE bonds net of issuance costs

3

A - 2020 HALF-YEARLY FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF CASH FLOWS

STATEMENT OF CASH FLOWS	Note no.	30 June 2020	30 June 2019
in thousands of euros
Consolidated net income		(56,783)	26,293
Add-backs (+) or deductions (-) for depreciation and impairment (excluding working capital)		39,119	25,962
Deduction of income from equity affiliates		(143)	(1,209)
Dividends received by equity affiliates		-	-
Add-backs (+) or deductions (-) for tax		(22,046)	10,727
Add-backs (+) or deductions (-) calculated under IFRS (1)		5,765	3,669
Add-backs (+) or deductions (-) for net disposals	2.6	(8,876)	(151)
Add-backs (+) or deductions (-) for net financial debt	9,332	7,978
Cash flow before net interest borrowing costs and tax		(33,632)	73,270
Tax paid	4.1	(5,209)	(8,981)
Change in net working capital	95,618	(101,011)
Net cash flow from operating activities		56,777	(36,722)
Earn-outs of fixed assets	3.3	(12,826)	(14,873)
Disposals of fixed assets		2,448	537
Change in financial assets	4.2	(5,996)	1,330
Impact of changes in the scope of consolidation	(365,740)	(14,217)
Net cash flow from investment activities		(382,114)	(27,223)
Dividends paid to shareholders of the parent company	4.3	-	-
Issuance of equity instruments		-	-
Purchase of treasury shares	3.11	(2,357)	(3,859)
Proceeds from new borrowings	202,437	10,000
Repayment of loans	3.11	(1,546)	(6,894)
Repayment of IFRS 16 lease liabilities	3.11	(16,531)	(13,848)
Net interest received		976	148
Net interest paid		(8,903)	(6,314)
Net cash flow from financing activities		174,076	(20,767)
Impact of changes in foreign currency exchange rates		(900)	247
Change in cash position		(152,162)	(84,465)
Cash, cash equivalents and bank overdrafts at the start of the year		469,231	271,785
Cash, cash equivalents and bank overdrafts at year end		317,069	187,320
Change in cash position		(152 162)	(84,465)

1. Expenses calculated on the basis of IFRS consist of the valuation of stock options and free shares (IFRS2) and the capitalisation of loan issue expenses.

2020 HALF-YEARLY FINANCIAL REPORT

4