PRESS RELEASE


First half 2019 ResultsSeptember 12, 2019   

Good results across all Group activities

in the first half of 2019

 

 

 

 

  • Revenue: 11,780 million euros, +4% at constant scope and exchange rates (+8% on a reported basis).
 

  • Adjusted operating income (EBITA ([1])) 918 million euros, +27% ([2]) at constant scope and exchange rates:
 

  • Bolloré Transport & Logistics: 309 million euros, +15% (2), thanks to increased port volumes and sustained logistic activity.
  • Communication: 718 million euros, (+28% (2) ) thanks to Vivendi’s strong performance driven by record results of Universal Music Group (UMG).
  • Electricity storage and systems: slight improvement in results to a loss of 81 million euros, versus a loss of 83 million euros in the first half of 2018.
 

  • Net income, Group share: 77 million euros, versus 48 million euros in the first half of 2018, an increase of 58%. Total net income was 526 million euros, versus 601 million euros in the first half of 2018, which benefited from the strong revaluation of Spotify shares.
  

  • Net debt: 7,242 million euros, an increase of 2,210 million euros related to Vivendi (increase of 2,309 million euros) | Gearing: 29%.
 

 

  
  
  
  

 

 

 

First half 2019 results


 

 

Financière de l’Odet'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:

 

  • a slight growth in Transportation and Logistics activities 
    • Bolloré Logistics: -0.1% due to lower air and sea freight volumes, partially offset by increased freight forwarding rates and sustained logistics activity (+10%);
    • Bolloré Africa Logistics: +1% driven by port terminals growth (Abidjan Terminal, Bénin Terminal, Freetown, Togo Terminal, Conakry Terminal and Congo Terminal);
  • 1% growth in oil logistics revenue, thanks to higher oil product prices;
  • growth in the communications business (+7%), attributable to Vivendi, which benefited from strong growth at UMG (+19%).
 

 

Adjusted operating income (EBITA([3])) totalled 918 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:

 

  • increase in transportation and logistics businesses: +10% at constant scope and exchange rates (4), primarily due to the smooth operation of port terminals;
  • strong growth in income from oil logistics, which benefited from the improved results of all of its distribution and storage activities;
  • sharp increase in EBITA for the communications sector (+28%) thanks to UMG’s very good performance;
  • controlled expenditure in the Electricity Storage and Systems business.
 

 

Net financial income amounted to 39 million euros([5]), compared with 373 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 526 million euros, compared with 601 million euros in the first half of 2018. Net income, Group share amounted to 77 million euros, compared with 48 million euros in the first half of 2018.

 

 

Net debt amounted to 7,242 million euros, an increase of 2,202 million euros attributable to the 2,309 million euro increase in Vivendi’s net debt (share buyback, acquisition of Editis, etc.). Slight decrease of 107 million euro in Financière de l’Odet’s net debt excluding Vivendi to 5,109 million euros. Shareholders’ equity was 24,557 million euros (26,156 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 29%, compared with 19% 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 2.3 billion euros for Financière de l’Odet and 9.7 billion euros including Vivendi.

 

 

Group structure:  

  • Vivendi
    • As of September 1, 2019, the Group held 321 million Vivendi shares representing 26.3% of the share capital and 29.6% of the voting rights.
    • Under its share buyback program, involving up to 10% of the share capital with a maximum price of 25 euros, from May to July 2019, Vivendi repurchased 66 million shares (5% of the share capital) at a price of 24.60 euros per share, for an aggregate amount of 1.6 billion euros, and cancelled 95 million shares representing 7.23% of the share capital. The share buyback program is ongoing.
       
  • Editis
    • At the end of January 2019, Vivendi finalized the acquisition of 100% of the share capital of Editis, the second-largest French publishing group, for 833 million euros.
       
  • Ubisoft
    • In March 2019, Vivendi received the remainder of the sale price of its stake in Ubisoft (5.87% of the share capital) for 429 million euros.
 

 

 

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 Consolidated key figures for Financière de l’Odet


(en millions d’euros)1st half 20191st half 2018Change
Revenue11 78010 8818%
  EBITDA ([8])1 4101 19418%
Depreciation and provisions(492  )(493)(0%)
Adjusted operating income (EBITA (8))91870131%
Amortization resulting from PPA (8)(186)(158)18%
   EBIT73154335%
of which equity-accounted operating companies615(62%)
  Financial income39373(89%)
  Share of net income of equity-accounted non-operating companies(10)19(153%)
  Taxes  (235)(335)(30%)
  Net income526601(12%)
  Net income, Group share774858%
  Minority interests449552  (19%)
    
 June 30, 2019December 31, 2018  Change (€M)
Shareholders’ equity24 55726 156(1 599)
  Of which Group share3 8723 81458
  Net debt7 242  5 0402 202
  Gearing ([9])29%19% 

The Group’s liquidity position ([10]): as of June 30, 2019, including undrawn confirmed lines and liquid investments represented approximately 2.3 billion euros for Financière de l’Odet and 9.7 billion euros including Vivendi.

Change in revenue by business in the first half


(in millions of euros)1st half1st half1st half  Reported  Organic
 
  • 2019
  2018 (1)  2018  growthgrowth
  Transportation and Logistics2 9742 9692 9471%0,2%
  Oil logistics1 2781 2631 2601 %1%
  Communications7 3516 8856 47214%7%
  Electricity Storage and Systems160184182(12%)(13%)
Others (Agricultural Assets, Holding Companies)172020(17%)(16%)
Total11 78011 32110 8818%4%
  1. 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 quarter2nd quarter
   2019  2018 (1)  2018  2019  2018 (1)  2018
  Transportation and Logistics1 4831 4481 4351 491 1 5211 511
  Oil Logistics665671670613592590
  Communications3 4583 2713 1233 8933 6143 349
  Electricity Storage and Systems759089  859493
  Others (Agricultural Assets, Holding Companies)8101081010
Total5 6905 4905 3276 0905 8315 555
  1. 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 20191st half 2018Change
Bolloré Transportation & Logistics30926616%
    Transportation and Logistics(1)28425512%
    Oil Logistics2511122%
  Communications 71854232%
  Electricity Storage and Systems(81)(83)-
  Other (Agricultural Assets, Holding Companies)(1)(28)(24)-
  Total 91870131%
  % of revenue7,8%6,4%134 bps
  1. Before trademark fees

             

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

                    

 H1 2019H1 2018Change
USD1.131.217%
GPB0.870.881%
JPY124.30131.606%
ZAR16.0414.89(8%)
NGN408.60436.126%
CDF1,880.001,954.004%
  • Balance sheet assets and liabilities after changes related to new accounting standards
Assets – In millions of eurosJune 30,20191/1/2019(1) Liabilities – In millions of eurosJune 30,20191/1/2019(1)
       
Goodwill15 440,614 409,6 Share capital105,4105,4
Other intangible assets10 278,310 286,6 Share issue premiums87,787,7
Property, plant and equipment4 442,54 252,3 Consolidated reserves3 678,53 549,7
Investments in equity affiliates4 562,44 507,2 Shareholders’ equity, Group share3 871,53 742,8
Other non-current financial assets4 815,44 594,4 Minority interests20 685,622 124,1
Deferred tax847,4829,9 Equity24 557,125 866,8
Other non-current assets789,2662,3 Non-current financial debts9 899,68 333,7
Non-current assets41 175,839 542,3 Provisions for employee benefits932,4866,6
Inventories and work in progress975,41 174,0 Other non-current provisions429,0393,7
Trade and other receivables7 803,77 555,6 Deferred tax2 605,82 808,4
Current tax161,2164,1 Other non-current liabilities2 219,12 095,0
Other current financial assets997,41 080,5 Non-current liabilities16 085,814 497,4
Other current assets758,4662,7 Current financial debts2 457,02 081,8
Cash and cash equivalents4 174,34 784,9 Current provisions391,3423,2
Current assets14 870,415 421,9 Trade and other payables11 410,911 096,1
Total Assets56 046,254 964,2 Current tax164,2210,1
    Other current liabilities979,8788,8
    Current liabilities15 403,214 600,0
    Total liabilities56 046,254 964,2
  1. 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 Financière de l’Odet 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 Financière de l’Odet 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

2Restated 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


Attachment

  • 09-12-19-Odet-Résultats-1S2019-UK