Blue : Half-yearly financial report 2018

Blue Solutions

Half year financial report 2018

SUMMARY

Activity report

3

Condensed half-yearly consolidated financial statements

9

Statutory Auditor's review report on the first half-year financial information 2018

29

Statement of the person responsible for the half-year report

30

2

ACTIVITY REPORT

1_SUMMARY OF THE HALF-YEAR RESULTS

FIRST HALF 2018 RESULTS PUBLISHED BY BLUE SOLUTIONS

in millions of euros	1sthalf 2018	1sthalf 2017	Change (%)
Revenue	20.8	54.8	(62%)
EBITDA	(8.9)	5.2	na
Operating income	(16.5)	(3.0)	na
Financial income	(1.1)	(1.1)	na
Taxes	(0.1)	(0.1)	na
Net income	(17.7)	(4.1)	na
Net income Group share	(17.7)	(4.1)	na
in millions of euros	June 30, 2018	December 31, 2017	Change (M€)
Shareholder's equity, Group share	100	118	(18)
Net debt	47	31	17
Gearing (%)	47%	26%
Revenue

62% decrease in revenue compared with the first half of 2017. This amount includes a contribution of 6.3 million euros granted to Blue Solutions (compared with 8.5 million euros at June 30, 2017) under a cooperation agreement signed by Blue Solutions and jointly Bluecar, Bluebus and Bluestorage.

As disclosed, the decline in the volumes of batteries sold (232 compared with 1,098 in the first half of 2017) resulted mainly from the sharp drop in deliveries intended for electric cars. Blue Solutions is now directing efforts to meeting needs for batteries for stationary applications and electric buses while improving the quality of the product and cutting its manufacturing costs.

EBITDA and operating income

• ▪EBITDA amounted to -8.9 million euros, compared with 5.2 million euros in the first half of 2017;

• ▪Operating income fell by 13.5 million euros, due mainly to the drop in revenue.

Net income

Consolidated net income was a loss of 17.7 million euros (compared with a loss of 4.1 million euros in the first half of 2017). This includes financial income of -1.1 million euros, which was stable compared to the first half of 2017.

Equity: 100 million euros | Net debt: 47 million euros

The decrease in equity at June 30, 2018, compared with December 31, 2017, stemmed mainly from the recognition of the net loss for the period. The increase in net debt was attributable mainly to the drop in net income.

2_ACTIVITIES

The activities below, onwhich Blue Solutions' has a call options, are developed by the Bolloré Group.

BLUE APPLICATIONS -MOBILITY

Car-sharing

• ▪Autolib' was discontinued on July 31, 2018 following the decision of the Syndicat Autolib' Vélib' Métropoleto terminate the concession;

• ▪Continued roll-out of other car-sharing projects, including in Singapore, Turin, London and Los Angeles.

Bluebus

• ▪11 deliveries of 12-meter buses (including 9 for RATP) and 18 deliveries of 6-meter buses in the first half of 2018;

• ▪RATP placed an order for 41 buses with delivery scheduled for 2019;

• ▪Bid on the large RATP call for tenders with delivery from 2020, decision expected in early 2019.

BLUE APPLICATIONS - STATIONARY, IER, POLYCONSEIL

Stationary:

▪	Many projects now under study to combine storage with solar power production (Africa, DOM-TOM, …).
IER:
▪	Solid revenue from terminals (air and services). Strong development of dematerialized parking ticket activity;
▪	Automatic Systems continued to feed off a very dynamic market in North America for its building access control
systems. Winning of a number of calls for tenders in the passenger flow security business.

Polyconseil:

• ▪Polyconseil was sustained level of activity driven notably by consulting assignments (digital and telecoms projects).

3_OTHER INFORMATIONS

In July 2018, Bolloré Group announced an agreement with Daimler, which may lead to the equipping of eCitaro buses manufactured by Daimler with Lithium Metal Polymer (LMP®) batteries from Blue Solutions.

Following the simplified public tender offer for Blue Solutions shares carried out in July 2017, the Bolloré Group reiteratesits commitment to submitting a tender offer at 17 euros per Blue Solutions share after the release of Blue Solutions' 2019financial statements, on that condition that the average Blue Solutions share price is less than 17 euros during a reference period.The terms of this commitment can be found in Section 1.3.1 of the Bolloré SA Securities Note approved by the AMF on July 4, 2017 (approval no.17-326).

4_FINANCIAL DATA BLUE APPLICATIONS

(in thousands of euros)

Bluecarsharing, Bluecar®, Autolib' and other car-sharing companies(1)

- Revenue

- Operating income Bluebus(3)

- Revenue

- Operating income Blueboat(5)

- Revenue

- Operating income Bluetram(5)

- Revenue

- Operating income Bluestorage(3)

- Revenue

- Operating income

IER(7)

- Revenue

- Operating income Polyconseil(5)

- Revenue

- Operating income

1stHalf 2018	1stHalf 2017
35,807(2)	29,727(2)
(39,151)	(53 431)
12,174(4)	4,856(4)
(16,266)	(16 205)
0	0
(78)	(73)
0	1
(276)	(366)
1,954(6)	9,296(6)
(6,971)	(7,940)
80,740(8)	74,475(8)
469	(38)
12,612(9)	13,694(9)
1,526	2,286

• (1) Combined data under IFRS (not audited).

• (2) Including 4,109 thousand euros at June 30, 2018 and 1,858 thousand euros at June 30, 2017 with other entities making up Blue Solutions or Blue Applications.

• (3) Combined data under IFRS (not audited)

• (4) At June 30, 2018, 102 thousand euros, with entities making up Blue Solutions or Blue Applications. At June30, 2017, 159 thousand euros was achieved with entities making up

Blue Solutions and Blue Applications.

• (5) Data from the audited separate financial statements according to French standards.

• (6) Including 1,280 thousand euros at June 30, 2018 and 9,129 thousand euros at June 30, 2017 with over entities making up Blue Solutions and Blue Applications.

• (7) Combined data from the consolidated financial statements under IFRS (not audited).

(8)Including 9,239 thousand euros at June 30, 2018 and 7,444 thousand euros at June 30, 2017 with entities other entities Blue Applications and 0 thousand euros at June 30,

2018 and 356 thousand euros at June 30, 2017 with entities making up Blue Solutions.

(9) Including 7,459 thousand euros at June 30, 2018 and 9,095 thousand euros at June 30, 2017 with entities other entities Blue Solutions and Blue Applications.