Altareit : HY 2021 results - Consolidated financial statements

ALTAREIT

CONDENSED CONSOLIDATED INTERIM FINANCIAL

STATEMENTS AT 30 JUNE 2021

1

CONTENTS

1	FINANCIAL STATEMENTS.....................................................................................................	3
2	NOTES - CONSOLIDATED INCOME STATEMENT BY SEGMENT ......................................	7

3 OTHER INFORMATION ATTACHED TO THE CONSOLIDATED INTERIM FINANCIAL

STATEMENTS.........................................................................................................................

8

2	CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AT 30
JUNE 2021	ALTAREIT

1	Financial statements
Consolidated balance sheet
€ millions	Note	30/06/2021	31/12/2020
Non-current assets		796.2	753.4
Intangible assets	7.1	305.4	303.3
	o/w Goodwill		192.1	192.1
	o/w Brands		105.4	105.4
	o/w Other intangible assets		7.9	5.8
Property, plant and equipment		24.9	24.1
Right-of-use on property, plant and equipment	7.2	133.3	139.4
Investment properties	7.3	90.9	32.8
	o/w Investment properties in operation at fair value		8.5	6.5
	o/w Investment properties under development and under construction at cost		78.5	22.0
	o/w Right-of use on Investment properties		3.9	4.3
Securities and investments in equity affiliates	4.5	225.5	242.0
Non-current financial assets	4.6	13.3	9.8
Deferred taxes assets	5.3	3.0	2.0
Current assets		3,247.0	3,449.9
Net inventories and work in progress	7.4	867.0	845.9
Contract assets	7.4	682.0	741.2
Trade and other receivables	7.4	760.8	649.7
Income tax credit		6.2	5.5
Loans and receivables (current)	4.6	41.5	22.6
Cash and cash equivalents	6.2	889.6	1,185.1
TOTAL ASSETS		4,043.2	4,203.3
Equity		1,030.6	1,002.0
Equity attributable to Altarea SCA shareholders		971.4	949.8
Capital	6.1	2.6	2.6
Other paid-in capital		76.3	76.3
Reserves		867.7	801.6
Income associated with Altareit SCA shareholders		24.8	69.4
Equity attributable to minority shareholders of subsidiaries		59.2	52.1
Reserves associated with minority shareholders of subsidiaries		50.9	31.1
Income associated with minority shareholders of subsidiaries		8.4	21.0
Non-current liabilities		1,023.0	1,050.6
Non-current borrowings and financial liabilities	6.2	949.0	978.4
	o/w Bond issues		496.4	496.0
	o/w Borrowings from lending establishments		264.6	301.5
	o/w Negotiable European Medium-Term Note		40.0	25.0
	o/w Advances from Group shareholders and partners		0.9	3.0
	o/w Lease liabilities		147.2	152.9
Long-term provisions	6.3	16.6	16.3
Deposits and security interests received		1.5	1.4
Deferred tax liability	5.3	56.0	54.5
Current liabilities		1,989.6	2,150.8
Current borrowings and financial liabilities	6.2	400.7	473.9
	o/w Bond issues		14.0	6.8
	o/w Borrowings from lending establishments		20.7	58.4
	o/w Negotiable European Medium-Term Note		280.0	314.0
	o/w Bank overdrafts		2.5	3.9
	o/w Advances from Group shareholders and partners		75.6	89.9
	o/w Lease liabilities		8.1	0.9
Contract liabilities	7.4	166.1	177.3
Trade and other payables	7.4	1,413.1	1,488.4
Tax due		9.6	11.2
TOTAL LIABILITIES		4,043.2	4,203.3

	CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AT 30	3
ALTAREIT	JUNE 2021

Consolidated income statement

€ millions	Note	30/06/2021	31/12/2020	30/06/2020
Revenue		1,315.4	2,823.4	1,266.1
Cost of sales		(1,165.0)	(2,482.3)	(1,115.1)
Other income		(49.2)	(107.9)	(51.8)
Net charge to provisions for current assets		(0.0)	(9.3)	(0.0)
Amortisation of customer relationships		-	(0.6)	(0.3)
Net property income	5.1	101.2	223.3	98.8
External services		10.0	16.3	7.4
Own work capitalised and production held in inventory		86.6	176.9	81.9
Personnel costs		(85.9)	(169.5)	(85.7)
Other overhead expenses		(31.6)	(83.7)	(38.9)
Depreciation expenses on operating assets		(11.1)	(24.6)	(12.0)
Net overhead expenses		(32.1)	(84.7)	(47.3)
Other income and expenses		(2.0)	(1.7)	0.4
Depreciation/amortisation expenses		(0.0)	(1.7)	(2.4)
Transaction costs		(5.0)	(0.0)	-
Other		(7.0)	(3.5)	(1.9)
Results on disposals		-	(0.1)	(0.1)
Change in value of investment properties		1.6	1.7	-
Net impairment losses on other non-current assets		(1.0)	(0.2)	(0.0)
Net charge to provisions for risks and contingencies		(1.3)	2.5	0.3
	OPERATING INCOME BEFORE THE SHARE OF NET INCOME OF EQUITY-METHOD		61.3		139.1		49.7
	AFFILIATES
Share in earnings of equity-method affiliates	4.5	0.7	14.3	5.8
	OPERATING INCOME AFTER THE SHARE OF NET INCOME OF EQUITY-METHOD		62.0		153.4		55.5
	AFFILIATES
Net borrowing costs	5.2	(11.4)	(20.8)	(8.5)
Financial expenses		(12.5)	(23.0)	(10.5)
Financial income		1.1	2.2	2.0
Other financial results	5.2	(5.8)	(8.0)	(2.3)
Change in value and income from disposal of financial instruments		0.0	1.1	0.6
Net gain/(loss) on disposal of investments		0.0	0.2	(0.2)
Profit before tax		44.9	125.8	45.1
Income tax	5.3	(11.7)	(35.4)	(12.6)
	NET INCOME		33.2		90.4		32.5
	o/w attributable to shareholders of Altareit SCA		24.8		69.4		22.7
o/w Net income attributable to minority interests in subsidiaries		8.4	21.0	9.9
Average number of non-diluted shares		1,748,424	1,748,409	1,748,438
	Net income per share attributable to shareholders of Altareit SCA (€)	5.4	14.17		39.69		12.96
Diluted average number of shares		1,748,424	1,748,409	1,748,438
	Diluted net income per share attributable to shareholders of Altareit SCA (€)	5.4	14.17		39.69		12.96

Other comprehensive income

€ millions	30/06/2021	31/12/2020	30/06/2020
NET INCOME	33.2	90.4	32.5
Actuarial differences on defined-benefit pension plans	1.3	0.5	0.8
o/w Taxes	(0.5)	(0.2)	(0.3)
Subtotal of comprehensive income items that may not be reclassified to profit or loss	1.3	0.5	0.8
OTHER ITEMS OF COMPREHENSIVE INCOME	1.3	0.5	0.8
CONSOLIDATED COMPREHENSIVE INCOME	34.4	90.9	33.3
o/w Net comprehensive income attributable to Altareit SCA shareholders	26.1	69.9	23.5
o/w Net comprehensive income attributable to minority interests in subsidiaries	8.4	21.0	9.9

4	CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AT 30
JUNE 2021	ALTAREIT

Consolidated cash flows statement

€ millions		Note	30/06/2021	31/12/2020	30/06/2020
Cash flow from operating activities
Net income				33.2	90.4	32.5
Elimination of income tax expense (income)	5.3	11.7	35.4	12.6
Elimination of net interest expense (income) and dividends	5.2	16.7	28.5	10.6
Net income before tax and before net interest expense (income)				61.6	154.3	55.8
Elimination of share in earnings of equity-method subsidiaries	4.5	(0.7)	(14.3)	(5.8)
Elimination of depreciation/amortisation and impairment				14.2	25.2	14.6
Elimination of value adjustments				(1.7)	(2.8)	(0.6)
Elimination of net gains/(losses) on disposals				(0.3)	(0.3)	0.3
Estimated income and expenses associated with share-based payments	6.1	(9.4)	(1.4)	(4.1)
Net cash flow				63.9	160.7	60.2
Tax paid				(12.1)	(7.1)	(2.1)
Impact of change in operational working capital requirement (WCR)	7.4	(154.6)	159.4	66.4
CASH FLOW FROM OPERATIONS				(102.8)	313.0	124.4
Cash flow from investment activities
Net acquisitions of assets and capitalised expenditures				(7.8)	(18.0)	(10.9)
Gross investments in equity affiliates	4.5	(17.7)	(34.1)	(19.3)
Acquisitions of consolidated companies, net of cash acquired	4.3	16.7	(5.6)	0.0
Other changes in Group structure				(0.1)		-		-
Increase in loans and advances				(25.1)	(22.0)	(15.5)
Sale of non-current assets and reimbursement of advances and down payments				2.9	34.6	0.2
Disposals of equity affiliates	4.5	14.4	25.5	7.0
Disposals of consolidated companies, net of cash transferred				(0.1)	4.8	3.4
Reduction in loans and other financial investments				6.1	27.5	6.3
Dividends received				14.6	24.3	0.3
Interest income				1.5	2.6	2.2
CASH FLOW FROM INVESTMENT ACTIVITIES				5.4	39.6	(26.4)
Cash flow from financing activities
Capital increase				(0.1)	0.0	(0.0)
Dividends paid to minority shareholders of subsidiaries				(0.1)	(5.0)	0.0
Issuance of debt and other financial liabilities	6.2	275.4	815.5	518.3
Repayment of borrowings and other financial liabilities	6.2	(459.9)	(626.8)	(291.6)
Repayment of lease liabilities	6.2	(1.4)	(10.1)	(9.7)
Net sales (purchases) of treasury shares				0.1	(0.1)	(0.0)
Net change in security deposits and guarantees received				(0.1)	(0.7)	(0.4)
Interest paid				(10.6)	(27.0)	(6.2)
CASH FLOW FROM FINANCING ACTIVITIES				(196.7)	145.8	210.4
Change in cash balance				(294.0)	498.4	308.5
Cash balance at the beginning of the year	6.2			1,181.2		682.8		682.8
Cash and cash equivalents				1,185.1		685.0		685.0
Bank overdrafts				(3.9)		(2.2)		(2.2)
Cash balance at period-end	6.2			887.2		1,181.2		991.3
Cash and cash equivalents				889.6		1,185.1		992.4
Bank overdrafts				(2.5)		(3.9)		(1.1)

	CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AT 30	5
ALTAREIT	JUNE 2021