For the 1(st) half 2020, the calculations are the following:
H1 H1 2020/2019 Natural Significant 2020/2019 (in millions of H1 Published Currency gas Electricity scope Comparable euros) 2020 Growth impact impact impact impact Growth Revenue Group 10,273 -6.2% 11 (239) (62) (45) -3.2% Impacts in % +0.1% -2.2% -0.5% -0.4% Gas & Services 9,920 -5.8% 10 (239) (62) (45) -2.7% Impacts in % +0.1% -2.2% -0.6% -0.4% Operating Income Recurring Group 1,813 0.0% 0 - - (4) +0.2% Impacts in % +0.0% - - -0.2% Gas & Services 1,947 +0.4% 0 - - (4) +0.7% Impacts in % +0.0% - - -0.3%
OPERATING MARGIN AND OPERATING MARGIN EXCLUDING ENERGY
The operating margin is the ratio of the operating income recurring divided by revenue. The operating margin excluding energy corresponds to the operating income recurring, not affected by the indexation effect of electricity and natural gas, divided by revenue excluding the energy impact. Natural Gas and Electricity impacts used for this calculation include currency impact on their respective amounts.
H1 2020, excluding Natural gas Electricity energy H1 2020 impact impact impact Revenue Group 10,273 (240) (63) 10,576 Gas & Services 9,920 (240) (63) 10,223 Operating Income Recurring Group 1,813 - - 1,813 Gas & Services 1,947 - - 1,947 Operating Margin Group 17.6% 17.1% Gas & Services 19.6% 19.0%
RECURRING NET PROFIT GROUP SHARE
The recurring net profit Group share corresponds to the net profit Group share excluding exceptional and significant transactions that have no impact on the operating income recurring.
The recurring net profit Group share in 1(st) half 2020 excluded the exceptional expenses (after-tax) linked to the management of the COVID-19 pandemic during the period. It reached 1,113.1 million euros.
The recurring net profit Group share in 1(st) half 2019 excluded the provision for the after-tax loss on the Fujian Shenyuan divestment. It reached 1,126.0 million euros.
H1 2020/2019 H1 2019 H1 2020 Growth (A) Net Profit (Group Share) - As Published 1,059.0 1,078.4 + 1.8 % (B) Exceptional and significant transactions after-tax with no impact on OIR - Provision on after-tax loss on the Fujian Shenyuan divestment (66.8) - Exceptional expenses linked to the management of the COVID-19 pandemic (34.7) (A) - (B) = Net Profit Recurring (Group Share) 1,125.8 1,113.1 - 1.1 %
NET PROFIT EXCLUDING IFRS16 AND NET PROFIT RECURRING EXCLUDING IFRS16
H1 2019 2019 H1 2020 (A) Net Profit as Published 1,107.2 2,337.6 1,124.6 (B) = IFRS16 Impact(a) (7.6) (14.4) (6.8) (A) - (B) = Net Profit excluding IFRS16 1,114.8 2,352.0 1,131.4
(a) The IFRS16 impact includes the reintegration of leasing expenses less depreciation and other financial expenses booked in relation to IFRS16.
H1 2019 2019 H1 2020 (A) Net Profit as Published 1,107.2 2,337.6 1,124.6 (B) Exceptional and significant transactions after-tax with no impact on OIR (66.8) (65.9)(b) (34.7) (A) - (B) = Net Profit Recurring 1,174.0 2,403.5 1,159.3 (C) IFRS16 Impact(a) (7.6) (14.4) (6.8) (A) - (B) - (C) = Net Profit Recurring excluding IFRS16 1,181.6 2,417.9 1,166.1
(a) The IFRS16 impact includes the reintegration of leasing expenses less depreciation and other financial expenses booked in relation to IFRS16.
(b) Actual after-tax loss on the Fujian Shenyuan divestiture.
RETURN ON CAPITAL EMPLOYED - ROCE
Return on capital employed after tax is calculated based on the Group's consolidated financial statements, by applying the following ratio for the period in question.
For the numerator: net profit excluding IFRS16 - net finance costs after taxes for the period considered.
For the denominator: the average of (total shareholders' equity excluding IFRS16 + net debt) at the end of the past three half-years.
ROCE H1 2019 2019 H1 2020 Calculation (in millions of euros) (a) (b) (c) Net Profit Numerator Excluding (b) - (a) + (c) IFRS16 1,114.8 2,352.0 1,131.4 2,368.6 Net Finance costs (185.1) (361.6) (170.5) (347.0) Effective Tax Rate (1) 25.4% 25.0% 25.2% Net Finance costs after tax (138.1) (271.2) (127.5) (260.6) Net Profit - Net financial costs after tax 1,252.9 2,623.2 1,258.9 2,629.2 Total Equity Denominator Excluding ((a)+(b)+(c))/3 IFRS16 17,966.0 19,338.8 18,777.5 18,694.1 Net Debt 13,698.8 12,373.3 13,175.7 13,082.6 Average of (total equity + net debt) 31,664.8 31,712.1 31,953.2 31,776.7 ROCE 8.3%
(1) excluding non-recurring tax impact
RECURRING ROCE
The recurring ROCE is calculated in the same manner as the ROCE using the recurring net profit excluding IFRS16 for the numerator.
ROCE H1 2019 2019 H1 2020 Calculation (in millions of euros) (a) (b) (c) Net Profit Recurring Numerator Excluding (b) - (a) + (c) IFRS16 1,181.6 2,417.9 1,166.1 2,402.4 Net Finance costs (185.1) (361.6) (170.5) (347.0) Effective Tax Rate (1) 25.4% 25.0% 25.2% Net Finance costs after tax (138.1) (271.2) (127.5) (260.6) Recurring Net Profit - Net financial costs after tax 1,319.7 2,689.1 1,293.6 2,663.0 Total Equity Denominator Excluding ((a)+(b)+(c))/3 IFRS16 17,966.0 19,338.8 18,777.5 18,694.1 Net Debt 13,698.8 12,373.3 13,175.7 13,082.6 Average of (total equity + net debt) 31,664.8 31,712.1 31,953.2 31,776.7 Recurring ROCE 8.4%
(1) excluding non-recurring tax impact
Calculation of performance indicators (Quarter)
Q2 Q2 2020/2019 Natural Significant 2020/2019 Q2 Published Currency gas Electricity scope Comparable 2020 Growth impact impact impact impact Growth Revenue Group 4,903 -11.0% (31) (135) (31) (32) -6.9% Impacts in % -0.5% -2.5% -0.5% -0.6% Gas & Services 4,729 -10.7% (30) (135) (31) (32) -6.5% Impacts in % -0.5% -2.6% -0.6% -0.5%
2(nd) quarter 2020 revenue
BY GEOGRAPHY
Revenue (in millions of euros) Q2 2019 Q2 2020 Published change Comparable change Americas 2,148 1,853 -13.7% -11.4% Europe 1,782 1,649 -7.4% -2.5% Asia-Pacific 1,211 1,097 -9.4% -3.3% Middle East & Africa 158 130 -17.6% -8.6% Gas & Services Revenue 5,299 4,729 -10.7% -6.5% Engineering & Construction 83 52 -38.5% -38.4% Global Markets & Technologies 129 122 -5.8% -5.7% GROUP REVENUE 5,511 4,903 -11.0% -6.9%
BY WORLD BUSINESS LINE
Revenue (in millions of euros) Q2 2019 Q2 2020 Published change Comparable change Large industries 1,414 1,136 -19.7% -4.2% Industrial Merchant 2,462 2,107 -14.4% -14.4% Healthcare 924 977 +5.8% +7.6% Electronics 499 509 +2.1% +0.5% GAS & SERVICES REVENUE 5,299 4,729 -10.7% -6.5%
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