Blue : Half-year financial report 2019

Blue Solutions

Half-year financial report 2019

BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT 2019

SUMMARY

Activity report	3
Condensed half-yearly consolidated financial statements	7
Statutory Auditor's review report on the first half-year financial information	29
Statement of the person responsible for the half-year report	30
Glossary	31

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BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019

Activity report

ACTIVITY REPORT

1_HALF-YEAR 2019 RESULTS

FIRST HALF 2019 RESULTS PUBLISHED BY BLUE SOLUTIONS

in millions of euros	1sthalf 2019	1sthalf 2018	Change (%)
Revenue	15	21	(26%)
EBITDA(1)	(10)	(9)	na
Adjusted Operating income (EBITA) (1)	(21)	(17)	na
Financial income	(1)	(1)	na
Net income	(21)	(18)	na
Net income Group share	(21)	(18)	na
in millions of euros	June 30, 2019	December 31, 2018	Change (M€)
Shareholder's equity, Group share	67	88	(21)
Net debt	74	46	28
Gearing (%) (2)	111%	53%

1. See glossary.
2. Gearing = ratio of net debt / equity.

Revenue

As anticipated, the transformation of the production plants in Canada and Brittany has been implemented to manufacture the new generation of batteries. The 26% decline in revenue to 15 million euros is partly due to the lower royalty received from Bolloré via Blue applications.

Adjusted operating income (EBITA)fell by 4 million euros due mainly to lower sales and the discontinuation of the Supercapacitors business.

Consolidated net incomefell 21 million euros (vs. a loss of 18 million euros in 2018).

Net debtamounted to 74 million euros, including 33 million euros return to better fortuneclause in favor of Bolloré.

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BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019

Activity report

2_ACTIVITIES

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

BRITTANY

BLUEBUS, STATIONNARY

Bluebus

• Sale of two12-meter buses and twelve 6-meter buses in the first half of 2019. Most of the sales of 12-meter buses to the RATP (41 buses) will be made in the second half of the year.
• In June 2019, Bluebus was selected by RATP for its third market inÎle-de-France region. Two-year contract, with a first firm order of fifty 12-meter Bluebuses in 2020.

Stationary

• Many projects being studied to pair storage with production of solar power (Africa and French overseas departments & territories, etc.).

Car-sharing

• Revenue down due to the discontinuation of the Autolib' service but strong growth internationally particularly Singapore; development of innovative solutions for the supervision of urban mobility operators.

IER - Automatic Systems

• Activity slightly down, dynamism of the pedestrian and vehicular access control systems markets in North America and France offset the decline in revenue generated from public transport in France.

Polyconseil

• Steady level of activity driven by consulting assignments.

3_ADDITIONAL INFORMATION

Bolloré Group noted that, following the simplified tender offer for the Blue Solutions shares in July 2017, it undertook to make an offer to buy Blue Solutions shares for 17 euros in the first half of 2020.

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).

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BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019

Activity report

4_FINANCIAL DATA BLUE APPLICATIONS

(in thousands of euros)	1stHalf 2019	1stHalf 2018
Bluecarsharing, Bluecar®, Autolib' and other car-sharing companies (1)
- Revenue	9,988 (2)	35,807
- Operating income	(37,540)	(39,151)
Bluebus (1)
- Revenue	8,623 (3)	12,174 (4)
- Operating income	(11,552)	(16,266)
Blueboat (4)
- Revenue	0	0
- Operating income	(32)	(78)
Bluetram (4)
- Revenue	0	0
- Operating income	(173)	(276)
Bluestorage (1)
- Revenue	1,215 (5)	1,954 (6)
- Operating income	(7,449)	(6,971)
IER (6)
- Revenue	71,291 (7)	80,740
- Operating income	(3,666)	(469)
Polyconseil (4)
- Revenue	10,806 (8)	12,612
- Operating income	(7,729)	1,526

1. Combined data under IFRS (not audited).
2. Including 2,902 thousands euros at June 30, 2019 and 4,109 thousands euros at June 30, 2018 with other entities making up Blue Solutions or Blue Applications.
3. At June 30, 2019, 154 thousands euros, with entities making up Blue Solutions or Blue Applications. At June 30, 2018, 102 thousands euros was achieved with entities making up Blue Solutions and Blue Applications.
4. Data from the audited separate financial statements according to French standards.
5. Including 62 thousands euros at June 30, 2019 and 1,280 thousands euros at June 30, 2018 with over entities making up Blue Solutions and Blue Applications.
6. Combined data from the consolidated financial statements under IFRS (not audited).
7. Including 6,046 thousands euros at June 30, 2019 and 9,239 thousands euros at June 30, 2018 with entities other entities Blue Applications and

0 thousand euros at June 30, 2019 and 0 thousand euros at June 30, 2018 with entities making up Blue Solutions.

1. Including 6,304 thousands euros at June 30, 2019 and 7,459 thousands euros at June 30, 2018 with entities other entities Blue Solutions and Blue Applications.

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BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019

Activity report

5_EVENTS AFTER THE REPORTING PERIOD AND OUTLOOK

None.

6_MAIN RISKS AND UNCERTAINTIES

The main financial risks with which the group are explained in the Note 8 in appendix to the condensed half-yearly consolidated financial statements.

7_MAIN RELATED-PARTY TRANSACTIONS

The main related-party transactions are detailed in the Note 13 in the condensed half-yearly consolidated financial statements.

8_CHANGE IN THE SHARE PRICE

Stock market price at August 30, 2019.

IPO : October 30, 2013, €14.50

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Oct-13Feb-14Jun-14Oct-14Feb-15Jun-15Oct-15Feb-16Jun-16Oct-16Feb-17Jun-17Oct-17Feb-18Jun-18Oct-18Feb-19Jun-19

Share price of Blue Solutions (€)

9_BLUE SOLUTIONS' SHAREHOLDING

17.6%	4.5%	Bolloré

Bolloré

77.9%Participations

Public

6

BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019

Consolidated financial statements

TABLE OF CONTENTS - CONSOLIDATED FINANCIAL STATEMENTS

Financial statements	p. 8
Notes to the financial statements	p. 13

7

BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019			Consolidated financial statements
CONSOLIDATED INCOME STATEMENT
(in thousands of euros)	Notes	June 2019		June 2018	December 2018
Revenue	5.1 - 5.2 -	15,405		20,848	38,209
Goods and services bought in	5.3	(16,975)		(18,402)	(34,602)
Personnel costs	5.3	(14,751)		(16,482)	(29,345)
Depreciation, amortization and provisions	5.3	(10,702)		(7,604)	(16,415)
Other operating income	5.3	6,581		5,159	12,451
Other operating expenses	5.3	(129)		(69)	(692)
Operating income	5.3	(20,571)		(16,550)	(30,394)
Net financing expenses	7.1	(425)		(365)	(662)
Other financial income	7.1	802		925	1,543
Other financial expenses	7.1	(893)		(1,705)	(3,260)
Financial income	7.1	(516)		(1,145)	(2,378)
Share in net income of operating companies accounted for	7.4	67		99	93
using the equity method
Corporate income tax	12	(42)		(134)	(690)
Consolidated net income		(21,062)		(17,730)	(33,369)
Consolidated net income, Group share		(21,062)		(17,730)	(33,369)
Minority interests		0		0	0
EARNINGS PER SHARE	9.2
(in euros)		June 2019		June 2018	December 2018
Net income, Group share
- basic		(0.72)		(0.61)	(1.14)
- diluted		(0.72)		(0.61)	(1.14)

8

BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019Consolidated financial statements

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(in thousands of euros)	June 2019	June 2018	December 2018
Consolidated net income for the period	(21,062)	(17,730)	(33,369)

Translation adjustment of controlled entities (1)

Total changes in items that will be recycled subsequently through profit or loss

Actuarial gains and losses recognized in shareholder's equity

512	(3)	799
512	(3)	799
	(111)	(118)

Total changes in items that will not be recycled subsequently through profit		(111)	(118)
or loss
COMPREHENSIVE INCOME	(20,550)	(17,844)	(32,688)
Of which:
- Group share	(20,550)	(17,844)	(32,688)
- minority interests	0	0	0
of which taxes:
- on actuarial gains and losses	0	0	0

1. Primarily includes the recognition of unrealized foreign exchange gains and losses on the Canadian dollar financing provided by Blue Solutions to Blue Solutions Canada of 3,056 thousand euros at June 30, 2019, compared with (1,400) thousand euros at June 30, 2018 and (2,184) thousand euros at December 31, 2018, as well as the US dollar financing provided to Capacitor Sciences Inc. of 92 thousand euros at June 30, 2019, compared to 648 thousand euros at December 31, 2018.

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BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019			Consolidated financial statements
CONSOLIDATED BALANCE SHEET
ASSETS
(in thousands of euros)	Notes	6/30/2019		01/01/2019 (1)	12/31/2018
Goodwill	6.3	14,729		14,617	14,617
Intangible assets	6.2	17,933		16,310	16,310
Property, plant and equipment	6.1	84,884		89,809	84,583
Investments in equity affiliates	7.4	992		1,055	1,055
Other non-current financial assets		751		18	18
Deferred tax	12.1	0		0	0
Other non-current assets	5.7.1	33,328		28,542	28,542
Non-current assets		152,617		150,352	145,125
Inventories and work in progress	5.4	14,131		12,282	12,282
Trade and other receivables	5.5	15,626		11,703	11,703
Current tax		228		259	259
Other current financial assets		9		4	4
Other current assets		783		1,379	1,379
Cash and cash equivalents	7.2	4,275		4,373	4,373
Current assets		35,052		30,001	30,001
TOTAL ASSETS		187,669		180,352	175,126
LIABILITIES
Share capital		145,815		145,815	145,815
Share issue premiums		0		0	0
Consolidated reserves		(79,308)		(58,118)	(58,118)
Shareholders' equity, Group share		66,507		87,697	87,697
Minority interests		0		0	0
Equity	9.1	66,507		87,697	87,697
Non-current financial debts	7.3	33,482		32,599	32,599
Provisions for employee benefits	11	3,046		2,940	2,940
Other non-current provisions	10	0		0	0
Deferred tax	12.1	0		0	0
Other non-current liabilities	5.7.2	15,125		14,459	10,003
Non-current liabilities		51,653		49,998	45,542
Current financial debts	7.3	44,752		18,116	18,116
Current provisions	10	566		380	380
Trade and other payables	5.6	22,413		22,411	22,548
Current tax		0		0	0
Other current liabilities		1,778		1,750	843
Current liabilities		69,509		42,657	41,888
TOTAL LIABILITIES		187,669		180,352	175,126
(1) After impact of IFRS 16

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BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019Consolidated financial statements

CHANGES IN CONSOLIDATED CASH FLOWS

(in thousands of euros)	June 2019	June 2018	December 2018
Cash flow from operations
Net income, Group share	(21,062)	(17,730)	(33,369)
Net income, minority interests' share	0	0	0
Consolidated net income	(21,062)	(17,730)	(33,369)
Non-cash income and expenses:
- elimination of depreciation, amortization and provisions	10,007	6,912	14,711
- other income and expenses not affecting cash flow or not related to operating	(3)	803	1,809
activities
Other adjustments:
- net financing expenses	425	365	662
- tax charges	42	135	1,490
- financial cost of IFRS 16	94
Taxes paid	(11)	(181)	(403)
Impact of the change in working capital requirement:	(10,755)	(4,073)	5,652
- of which inventories and work in progress	(1,683)	2,989	(127)
- of which payables	(365)	1,845	943
- of which receivables	(8,707)	(8,907)	4,836
Net cash from operating activities	(21,262)	(13,769)	(9,448)
Cash flow from investment activities
Disbursements related to acquisitions: (1)
- property, plant and equipment	(4,164)	(2,276)	(6,040)
- intangible assets	(1,812)	(321)	(3,504)
- securities and other non-current financial assets	(6)	(2)	(5)
Income from disposal of assets:
- other non-current financial assets	18	28	45
Effect of changes in consolidation scope on cash flow	0	0	521
Net cash from investing activities	(5,964)	(2,571)	(8,983)
Cash flows from financing activities
Disbursements:
- repayments of rental liabilities	(461)	0	0
Receipts:
- investment subsidies	1,035	0	1,267
Net interest paid on borrowings	(163)	(28)	(64)
Net interest paid on IFRS 16 leases	(79)	0	0
Net cash from financing activities	332	(28)	1,203
Effect of exchange rate fluctuations	160	(24)	(43)
Net increase (decrease) in cash and cash equivalents	(26,734)	(16,392)	(17,271)
Cash and cash equivalents at the beginning of the period (2)	(13,743)	3,528	3,528
Cash and cash equivalents at the end of the period (2)	(40,477)	(12,864)	(13,743)

1. Investment flows in 2019 and 2018 mainly related to capacity investments to support the development of factories in Brittany and Canada and investments in new IT3 battery technology.
2. See Note 7.2 - Cash and cash equivalents and net cash.

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BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019			Consolidated financial statements
CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY
				Actuarial		Shareholder
			Translation	(losses) and		s' equity,	Minority
(in thousands of euros)	Number of share	Share capital	adjustment	gains	Reserves	Group share	interests	Total
Shareholders' equity at December 31, 2017	28,838,316	144,192	(2,496)	(598)	(23,292)	117,806	0	117,806
Transactions with shareholders	324,750	1,623	0	0	(1,409)	214	0	214
Capital increases	324,750	1,623			(1,623)	0	0	0
Dividends distributed						0	0	0
Share-based payments (1)					129	129	0	129
Change in scope						0	0	0
Other changes (2)					85	85	0	85
Comprehensive income items			(3)	(111)	(17,730)	(17,844)	0	(17,844)
Net income for the period					(17,730)	(17,730)	0	(17,730)
Change in items recyclable through profit and loss
- Translation adjustment of controlled entities			(3)			(3)	0	(3)
- Change in fair value of financial instruments of						0	0	0
controlled entities
- Other changes in comprehensive income						0	0	0
Change in items that will not be recycled
- Actuarial (losses) and gains				(111)		(111)	0	(111)
Shareholders' equity at June 30, 2017	29,163,066	145,815	(2,499)	(709)	(42,432)	100,176	0	100,176
Shareholders' equity at December 31, 2017	28,838,316	144,192	(2,496)	(598)	(23,292)	117,806	0	117,806
Transactions with shareholders	324,750	1,623	0	0	956	2,579	0	2,579
Capital increases	324,750	1,623			(1,623)	0	0	0
Dividends distributed						0	0	0
Share-based payments (1)			0		219	219	0	219
Change in scope						0	0	0
Other changes (2)					2,360	2,360	0	2,360
Comprehensive income items			799	(118)	(33,369)	(32,688)	0	(32,688)
Net income for the period					(33,369)	(33,369)	0	(33,369)
Change in items recyclable through profit and loss
- Translation adjustment of controlled entities			799			799	0	799
- Change in fair value of financial instruments of						0	0	0
controlled entities
- Other changes in comprehensive income						0	0	0
Change in items that will not be recycled
- Actuarial (losses) and gains				(118)		(118)	0	(118)
Shareholders' equity at December 31, 2018	29,163,066	145,815	(1,697)	(716)	(55,705)	87,697	0	87,697
Transactions with shareholders	0	0	0	0	(640)	(640)	0	(640)
Capital increases						0	0	0
Dividends distributed						0	0	0
Share-based payments (1)					111	111	0	111
Change in scope						0	0	0
Other changes (2)					(751)	(751)	0	(751)
Comprehensive income items			512	0	(21,062)	(20,550)	0	(20,550)
Net income for the period					(21,062)	(21,062)	0	(21,062)
Change in items recyclable through profit and loss
- Translation adjustment of controlled entities			512			512	0	512
- Change in fair value of financial instruments of						0	0	0
controlled entities
- Other changes in comprehensive income						0	0	0
Change in items that will not be recycled
- Actuarial (losses) and gains						0	0	0
SHAREHOLDERS' EQUITY AT JUNE 30, 2019	29,163,066	145,815	(1,185)	(716)	(77,406)	66,507	0	66,507

1. Share-basedpayment involving Bolloré SA shares - See Note 11.1 - Share-based payment transactions.
2. See Note 7.3 - Financial debt: represents mostly the impact of the accretion of the return to better fortune liability.

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BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019	Consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - Significant Events..................................................................................................................................................	14
Note 2 - General accounting policies ..................................................................................................................................	14
2.1	- Changes in standards .................................................................................................................................	15
2.2	- Use of estimates ........................................................................................................................................	16
Note 3 - Comparability of financial statements ..................................................................................................................	16
Note 4 - Consolidation scope ..............................................................................................................................................	16
4.1	- Main changes in scope of consolidation ........................................................................................................	16
4.2	- Commitments given and received as part of share dealings ............................................................................	16
Note 5 - Operating data ......................................................................................................................................................	17
5.1	- Revenue ....................................................................................................................................................	17
5.2	- Information on operating segments .............................................................................................................	17
5.3	- Operating income .......................................................................................................................................	18
5.4	- Inventories and work in progress .................................................................................................................	18
5.5	- Trade and other receivables ........................................................................................................................	18
5.6	- Trade and other payables............................................................................................................................	19
5.7	- Other assets and liabilities...........................................................................................................................	19
5.8	- Off-balance sheet commitments for operating activities .................................................................................	19
5.9	- Leases.......................................................................................................................................................	19
Note 6 - Property, plant and equipment and intangible assets...........................................................................................	21
6.1	- Property, plant and equipment ....................................................................................................................	21
6.2	- Intangible assets ........................................................................................................................................	21
6.3	- Goodwill ....................................................................................................................................................	22
Note 7 - Financial structure and financial costs ..................................................................................................................	22
7.1	- Financial income ........................................................................................................................................	22
7.2	- Cash and cash equivalents and net cash.......................................................................................................	23
7.3	- Financial debt ............................................................................................................................................	23
7.4	- Investments in equity affiliates ....................................................................................................................	23
Note 8 - Information relating to market risk and the fair value of financial assets and liabilities .....................................	24
8.1	- Information on risk.....................................................................................................................................	24
Note 9 - Shareholders' equity and earnings per share ........................................................................................................	26
9.1	- Equity .......................................................................................................................................................	26
9.2	- Earnings per share .....................................................................................................................................	26
Note 10 - Provisions............................................................................................................................................................	26
Note 11 - Employee expenses and benefits ........................................................................................................................	27
11.1 - Share-based payment transactions.............................................................................................................	27
Note 12 - Taxes ...................................................................................................................................................................	27
12.1 - Tax expenses ...........................................................................................................................................	27
Note 13 - Related-party transactions..................................................................................................................................	27
Note 14 - Events after the reporting period........................................................................................................................	28

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BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019

Consolidated financial statements

The Blue Solutions Group is a limited company (société anonyme) incorporated under French law and subject to all legislative and other provisions applying to trading companies in France, and in particular those of French company law (Code de commerce). Its registered office is at Odet, 29500 Ergué-Gabéric. The company is listed on the Paris stock exchange.

The Blue Solutions Group (the Group) comprises Blue Solutions and its subsidiaries. Blue Solutions is consolidated in the financial statements of Bolloré and of Bolloré Participations.

The interim financial statements have been prepared further to the instructions of the Board of Directors' meeting of September 12, 2019.

Note 1 - Significant Events

Half-year 2019 results

At 15.4 million euros, revenue was down 26% compared with first half 2018.

Revenue mainly included a contribution to Blue Solutions of 6.3 million euros in 2018 under a collaboration agreement signed by Blue Solutions and jointly Bluecar, Bluebus and Bluestorage, Bolloré subsidiaries using Lithium Metal Polymer (LMP®) batteries. This research and development cooperation agreement aimed to enhance the development potential of batteries and various applications.

The decrease in revenue related to the end of the aforementioned cooperation agreement was partially offset by an increase in the volume of batteries sold (266, compared to 232 in the first half of 2018). Blue Solutions is now focusing on meeting the need for batteries for stationary applications and electric buses, while improving product quality and reducing production costs.

Operating income decreased by 4 million euros, due primarily to lower sales and the discontinuation of the Supercapacitors business.

Partnership between Blue Solutions and Daimler

On July 10, 2018, Bolloré and Daimler announced they had reached an agreement to allow the E-Citaro buses manufactured by Daimler to be fitted with Lithium Metal Polymer (LMP®) batteries produced by Blue Solutions. The progress of the agreement, which is currently in the prototype approval phase, is in line with expectations.

This agreement, which was still in a preliminary stage in 2018, did not have a material impact on the Group's financial statements.

Note 2 - General accounting policies

The accounting principles and methods used to prepare the condensed half-yearly consolidated financial statements are identical to those used by the Group for the consolidated financial statements for the year ended December 31, 2018, prepared in accordance with IFRS (International Financial Reporting Standards) as adopted by the European Union and detailed in note 2 "General accounting policies" to the consolidated financial statements for the 2017 fiscal year; subject to the following:

• application by the Group of the accounting standards or interpretations, set out in 2.1.1 below - IFRS, IFRIC interpretations or amendments applied by the Group from January 1, 2019;
• application of the specifics of IAS 34 "Interim Financial Reporting".

In accordance with IAS 34, these financial statements do not include all of the notes required in the annual financial statements, but a selection of explanatory notes. They must be read in relation to the Group's financial statements for the year ended December 31, 2018.

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BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019Consolidated financial statements

2.1 - Changes in standards

2.1.1 - IFRS, IFRIC interpretations or amendments applied by the Group from January 1, 2019

			Application date
			pursuant to
			European Union:
			fiscal years
		Dates of adoption by	beginning on or
Standards, amendments or interpretations	the European Union	after
Amendment to IFRS 9	"Prepayment features with negative compensation"	3/22/2018	1/1/2019
IFRS 16 "Leases"		10/31/2017	1/1/2019
Amendment to IAS 28	"Long-term interests in associated enterprises and joint ventures"	2/8/2019	1/1/2019
Improvements to IFRS - 2015-2017 cycle	3/14/2019	1/1/2019
Amendment to IAS 19	"Plan amendment, curtailment or settlement"	3/13/2019	1/1/2019
IFRIC 23 "Uncertainty over Income Tax Treatments"	10/23/2018	1/1/2019

With the exception of IFRS 16 and IFRIC 23, the impact on the Group's financial statements of other standards and interpretations applicable as of January 1, 2019 is not material.

• IFRS 16 - Leases

The Group elected to apply IFRS 16 retrospectively as of January 1, 2019, without adjusting the comparative periods in the financial statements.

Since the purchase and sale of access rights and rights to use intellectual property licenses are excluded from the scope of IFRS 16, the main point of attention for the Blue Solutions Group relates to the accounting of property leases for which the Group is a lessee. This results in the recognition on the balance sheet of an amount of lease liabilities corresponding to the discounted future rent payments with, as counterparty, right-of-use assets relating to the leases.

The amount of lease liabilities as of January 1, 2019 was determined using:

• an analysis of operating leases, for which contractual obligations were presented asoff-balance sheet commitments until December 31, 2018 (see Note 5.10 - Lease commitments to the consolidated financial statements for the fiscal year ended December 31, 2018, page 89 of the 2018 Registration Document);
• an assessment of the term of the lease corresponding to the period for which the lease may not be terminated, taking into account any renewal option that the Blue Solutions Group is reasonably certain to exercise and any option to terminate that the Blue Solutions Group is reasonably certain not to exercise. The Blue Solutions Group also referred to the indicative position of the ANC (French Accounting Standards Authority) to determine that the duration of real estate leases in France is generally nine years;
• the estimated incremental borrowing rate at January 1, 2019 of each lease, taking into account the remaining terms of the leases at that date.

The first-time application of IFRS 16 resulted in the recognition at January 1, 2019 of lease liabilities of 5,363 thousand euros and right-of-use assets relating to leases of 5,226 thousand euros, with no impact being recognized as equity.

The main impacts at January 1, 2019 are detailed in Note 5.9, it being specified that:

• the Group did not use the option offered by IFRS 16 at the date of transition to use knowledge acquired retrospectively;
• the Group has used the exemptions provided by the standard for contracts with a remaining term of 12 months or less and/or for which the replacement value of the leased asset is low.

Lease liabilities are current or non-current operating liabilities excluded from the calculation of Blue Solutions' net financial debt. Allowances for depreciation and amortization of right-of-use assets relating to leases are included in operating income. The accretion effect of lease liabilities (interest expense on rental liabilities) is included in other financial expenses.

In addition, IFRIC 23 - Uncertainty over Income Tax Treatments, which was adopted by the EU on October 23, 2018, is mandatory from January 1, 2019. That interpretation clarifies the determination of taxable income (taxable profit or loss), tax bases, unused tax losses, unused tax credits and tax rates, in the event of uncertainty about a particular tax treatment for income tax and the acceptability of such a treatment by the tax authorities.

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BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019

Consolidated financial statements

2.1.2 - Accounting standards or interpretations that the Group will apply in the future

As of the date that the financial statements were approved, there have been no new standards adopted by the European Union for which first-time application is after January 1, 2019.

The IASB published standards and interpretations which have not yet been adopted by the European Union as of June 30, 2019; at this date, they have not been applied by the Group.

		Application dates
		pursuant to IASB:
	Dates of publication by	fiscal years beginning
Standards, amendments or interpretations	the IASB	on or after
Updated references to the conceptual framework in IFRS	3/29/2018	1/1/2020
Amendments to IFRS 3 "Definition of a business"	10/22/2018	1/1/2020
Amendments to IAS 1 and IAS 8 "Definition of material"	12/31/2018	1/1/2020

2.2 - Use of estimates

When preparing the consolidated financial statements in compliance with IAS 34, Management had to use assumptions and estimates to implement accounting principles to measure these assets and liabilities as well as the income and expenses for the period presented.

Note 3 - Comparability of financial statements

In the absence of changes in scope and excluding the impacts related to the application of IFRS 16, detailed in Note 2, the financial statements for fiscal year 2019 are comparable to those for fiscal year 2018.

Note 4 - Consolidation scope

1. - Main changes in scope of consolidation
   4.1.1 - First Half 2019 None.
   4.1.2 - 2018 fiscal year None.
2. - Commitments given and received as part of share dealings
   4.2.1 - Commitments received

Options concerning Blue Applications

Blue Solutions Group has seven call options over each Blue Applications company, the initial exercise period of which was between September 1, 2016 and June 30, 2018. Amendments signed on May 12, 2017 postponed the exercise window to between January 1, 2020 and June 30, 2020:

1. Bluecar, Autolib' and Bluecarsharing (this agreement can only be exercised on the three companies together);
2. Bluebus;
3. Blueboat;
4. Bluetram;
5. Bluestorage;
6. Polyconseil;
7. IER.

It will be up to the Board of Directors of Blue Solutions to assess whether it makes sense for Blue Solutions Group to exercise each of these options. The request by Blue Solutions to appoint an independent expert may only be made once, either in Q4 2019, or in Q1 2020.

16

BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019	Consolidated financial statements
Note 5 - Operating data
5.1 - Revenue
(in thousands of euros)	June 2019	June 2018	December 2018
Sale of goods(1)	11,427	15,090	27,283
Provision of services	2,533	4,337	7,129
Income from associated activities	1,445	1,421	3,797
Revenue	15,405	20,848	38,209

1. Including a service relating to a collaboration agreement signed by Blue Solutions and jointly Bluecar, Bluebus and Bluestorage (entities jointly controlled by Bolloré SA) for 6,250 thousand euros in the first half of 2018 and 12,500 thousand euros for fiscal year 2018, respectively. Thistwo-year 25 million euros agreement, which is intended to support the research and development work undertaken by Blue Solutions, is recognized annually as revenue at Blue Solutions France on the basis of battery sales. The agreement was thus fully completed in 2018.

5.2 - Information on operating segments

5.2.1 - Information by partner

(in thousands of euros)	June 2019
REVENUE (1)	15,405
of which Bluecar	574
of which Bluebus	9,024
of which Bluestorage	2,651
of which IER	126
of which Bluetram	0

June 2018	December 2018
20,848	38,209
4,508	8,204
11,349	18,735
4,138	9,274
0	140
56	102

(1) Total revenue with controlled entities of Bolloré Group, see Note 13 - Transactions with related parties.

5.2.2 - Information by geographical area

	France
	and Overseas
	Departments and
(in thousands of euros)	Territories	Americas	Total
In June 2019
Revenue	14,792	613	15,405
Intangible assets	4,234	13,699	17,933
Property, plant and equipment	65,036	19,848	84,884
Tangible and intangible capital expenditure	4,285	1,459	5,744
In June 2018
Revenue	19,728	1,120	20,848
Intangible assets	370	12,982	13,352
Property, plant and equipment	74,459	14,628	89,087
Tangible and intangible capital expenditure	705	1,792	2,497
In December 2018
Revenue	35,930	2,279	38,209
Intangible assets	2,776	13,534	16,310
Property, plant and equipment	69,518	15,065	84,583
Tangible and intangible capital expenditure	4,337	4,992	9,329

Revenue by geographical area shows the distribution of products according to the country in which they are sold.

17

BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019	Consolidated financial statements
5.3 - Operating income
(in thousands of euros)	June 2019	June 2018	December 2018
Revenue (1)	15,405	20,848	38,209
Goods and services bought in:	(16,975)	(18,402)	(34,602)
- Purchases and external charges	(16,515)	(17,414)	(32,472)
- Lease payments and rental expenses	(460)	(988)	(2,130)
Personnel costs	(14,751)	(16,482)	(29,345)
Allocations for depreciation and provisions	(10,702)	(7,604)	(16,415)
Other operating income (*)	6,581	5,159	12,451
Other operating expenses (*)	(129)	(69)	(692)
OPERATING INCOME	(20,571)	(16,550)	(30,394)

(1) Change in revenue is listed by geographical area in Note 5.2.2 - Information by geographical area.

(*) Details of other operating income and expenses

			June 2019					June 2018
			Operating	Operating					Operating
(in thousands of euros)			Total	income	expenses		Total	Operating income	expenses
Foreign exchange gains and losses		(45)	58	(103)		34		83	(49)
Research tax credit		5,028	5,028	0		4,699		4,699	0
Others		1,469	1,495	(26)		357		377	(20)
OTHER OPERATING INCOME AND		6,452	6,581	(129)		5,090		5,159	(69)
EXPENSES
									December 2018
										Operating
(in thousands of euros)						Total	Operating income	expenses
Foreign exchange gains and losses						(9)		136	(145)
Research tax credit						10,045		10,045	0
Others						1,723		2,270	(547)
OTHER OPERATING INCOME AND EXPENSES				11,759		12,451	(692)
5.4 - Inventories and work in progress
				At 6/30/2019					At 12/31/2018
(in thousands of euros)		Gross value	Provisions	Net value	Gross value	Provisions	Net value
Raw materials, supplies, etc.		11,344	(2,983)	8,361	11,236	(2,336)	8,900
In-progress, intermediate and finished products		5,770	0	5,770		3,382	0	3,382
Goods		62	(62)	0		174	(174)	0
TOTAL		17,176	(3,045)	14,131	14,792	(2,510)	12,282
5.5 - Trade and other receivables
				At 6/30/2019					At 12/31/2018
(in thousands of euros)		Gross value	Provisions	Net value	Gross value	Provisions	Net value
Trade accounts receivable		4,388	0	4,388		879	0	879
Operating tax and social security receivables (1)		11,082	0	11,082	10,785	0	10,785
Other operating receivables		156	0	156		40	0	40
TOTAL		15,626	0	15,626	11,703	0	11,703

1. Including 7.6 million euros at June 30, 2019 relating to Blue Solutions' research tax credit receivables for 2015, to be recovered in the next six months (7.6 million euros for the 2015 fiscal year at December 31, 2018).

18

BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019			Consolidated financial statements
5.6 - Trade and other payables
	At 1/1/2019			Currency	Others	At
(in thousands of euros)	(1) Change in scope	Change net	fluctuations	movements	6/30/2019
Due to suppliers	6,592	0	(270)	104	1	6,427
Tax and social security contributions payable	8,342	0	145	32	0	8,519
Other operating payables	7,477	0	(269)	307	(47)	7,468
TOTAL	22,411	0	(394)	443	(46)	22,413
(1) After impact of IFRS 16
5.7 - Other assets and liabilities
5.7.1 - Other non-current assets
		At 6/30/2019			At 12/31/2018
(in thousands of euros)	Gross value	Provisions	Net value	Gross value	Provisions	Net value
Research and competitiveness and jobs tax	33,328	0	33,328	28,542	0	28,542
credits
TOTAL	33,328	0	33,328	28,542	0	28,542

This item includes the research tax credit receivables of Blue Solutions for the 2016 to 2019 fiscal years. Blue Solutions expects to recover 8.3 million euros in 2020, 9.5 million euros in 2021, 9.5 million euros in 2022 and 4.8 million euros in 2023 at the latest.

5.7.2 - Other non-current liabilities

	At 1/1/2019	Change	Change	Change	Others	At
(in thousands of euros)	(1)	in scope	Net	Currency	transactions	6/30/2019
Purchase and earn-out commitments (2)	9,078	0	(113)	433	48	9,446
Rental liabilities due within one year (3)	4,456	0	0	31	(478)	4,009
Other non-current liabilities (4)	925	0	694	53	(2)	1,670
TOTAL	14,459	0	581	517	(432)	15,125

1. After impact of IFRS 16
2. Earn-outfor Capacitor Sciences Inc. at Blue Solutions Canada, where the change represents the capitalization of interest and the remeasurement of the US dollar liability. Other movements relate to the reclassification of the current portion.
   In 2016, the acquisition of controlling interests was treated in accordance with IFRS 3R, and the earn-outs provided for upon this acquisition were measured at fair value and included in the calculation of goodwill. The Management assessed the likelihood of the payment of the earn-outs along with the likely timing of their payment. Without calling this assessment into question, the timing of the first payment was deferred by one year during fiscal year 2018. At June 30, 2019, earn-outs totaled 16,253 thousand euros, of which 6,807 thousand euros was recognized under other operating payables (see Note 5.7 - Trade and other payables).
3. Other transactions consisted of transactions resulting from thefirst-time application of IFRS 16
4. Includes investment subsidies - share at over one year.

5.8 - Off-balance sheet commitments for operating activities

This note supplements the information on commitments given and received at December 31, 2018, as described in note "Off-balance sheet commitments for operating activities" to the consolidated financial statements for the year ended December 31, 2018.

Apart from the recording of lease commitments in the balance sheet detailed in the note below, there has been no significant change in the nature of off-balance sheet commitments given and received for operating activities since December 31, 2018.

5.9 - Leases

The Group has applied the new accounting standard IFRS 16 - Leases since January 1, 2019. In accordance with the provisions of the standard, the impact of the change in standard was recognized in the opening balance sheet as of January 1, 2019. In addition, the Group applied this change in standard to the balance sheet, consolidated income statement and cash flow statement for the first half of 2019. For detailed information, see Note 2.1 General accounting principles.

5.9.1 - Right-of-use assets relating to leases

At June 30, 2019, right-of-use assets relating to leases totaled 4,750 thousand euros (5,226 thousand euros at January 1, 2019), after deduction of accumulated amortization and impairment losses of 509 thousand euros at June 30, 2019. These right-of-use assets concern real estate leases.

19

BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019				Consolidated financial statements
			6/30/2019				1/1/2019
				Depreciation,				Depreciation,
			amortization and				amortization and
(in thousands of euros)		Gross value	impairment	Net value	Gross value	impairment	Net value
Right-of-use of intangible assets			0	0	0		0	0	0
Right-of-use of property, plant and
equipment			5,258	(509)	4,750		5,226	0	5,226
Total			5,258	(509)	4,750		5,226	0	5,226
Change in right-of-use assets
			Gross	Disposals	Net Change in	Currency	Others		At
Net values	At 1/1/2019	acquisitions	NAV allowances	scope fluctuations	movements		6/30/2019
(in millions of euros)
Right-of-use of intangible
assets	0.0	0	0	0	0	0	0		0
Right-of-use of property, plant
and equipment	5,226	0	0	(513)	0	36	0		4,750
Net values	5,226	0	0	(513)	0	36	0		4,750

5.9.2 - Lease liabilities

Reconciliation between leases not recorded on the balance sheet at December 31, 2018 and lease liabilities at January 1, 2019

(in millions of euros)
Leases not recorded on the balance sheet at December 31, 2018 (1)	5,887
Others	(3)
Rent not discounted as at January 1, 2019	5,884
Discount effect	(521)
Total lease liabilities at January 1, 2019	5,363

1. See Note 5.10 - Lease commitments to the consolidated financial statements for the year ended December 31, 2018, page 89 of the 2018 Registration Document.

Maturity of lease liabilities

The maturity of lease liabilities is based on assumptions made in the context of the first-time application of IFRS 16.

As at January 1, 2019, the weighted average incremental borrowing rate for lease liabilities was 5.05%. This lease liability is related to real estate leases, mainly in the United States.

At January 1, 2019	Total	Less than 1	1 to 5 years	More than 5
(in millions of euros)	year	years
Liability related to leases of intangible assets	0	0	0	0
Liability related to leases of property, plant and equipment	5,363	907	4,255	201
Total rental liabilities	5,363	907	4,255	201
AT JUNE 30, 2019	Total	Less than 1	1 to 5 years	More than 5
(in millions of euros)	year	years
Liability related to leases of intangible assets	0	0	0	0
Liability related to leases of property, plant and equipment	4,953	945	4,009	0
Total rental liabilities	4,953	945	4,009	0

5.9.3 - Rental liability expenses

The expense for rental obligations recorded in the income statement amounted to 606 thousand euros in the first half of 2019.

20

BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019			Consolidated financial statements
Note 6 - Property, plant and equipment and intangible assets
6.1 - Property, plant and equipment
		At 6/30/2019			At 1/1/2019 (1)
		Depreciation,			Depreciation,
		amortization and			amortization and
(in thousands of euros)	Gross value	impairment	Net value	Gross value	impairment	Net value
Land and fixtures and fittings	4,634	(1,261)	3,373	4,589	(1,186)	3,404
Buildings and fitting-out	71,791	(37,635)	34,156	71,442	(35,240)	36,202
Plant and equipment	126,112	(88,914)	37,198	106,626	(81,434)	25,192
Right-of-use of property, plant and equipment	5,258	(509)	4,750	5,226	0	5,226
(2)
Others	9,910	(4,502)	5,408	23,911	(4,125)	19,786
TOTAL	217,705	(132,821)	84,884	211,794	(121,985)	89,809
(1) After impact of IFRS 16

(2) See Note 5.9.1 - Right-of-use assets relating to leases

Change in net position in the first half of 2018

Net values							Other
At 1/1/2019	Gross	Disposals	Net	Change in	Currency	transactions	At
(in thousands of euros)	(1)	acquisitions	NAV	allowances	scope	fluctuations	(4)	6/30/2019
Land and fixtures and fittings	3,404	0	0	(75)	0	44	0	3,373
Buildings and fitting-out	36,202	0	0	(2,323)	0	273	4	34,156
Plant and equipment	25,192	221	0	(6,466)	0	261	17,990	37,198
Right-of-use of property, plant	5,226	0	0	(512)	0	36	0	4,750
and equipment (2)
Other (3)	19,785	3,711	0	(168)	0	74	(17,994)	5,408
NET VALUES	89,809	3,932	0	(9,544)	0	688	0	84,884

1. After impact of IFRS 16
2. See Note 5.9.1 -Right-of-use assets relating to leases
3. Includingnon-current assets in progress.
4. Corresponds to the capacity increase for the IT3 battery

Capital expenditure is broken down by geographical area in note 5.2.2 - Information by geographical area.

6.2 - Intangible assets

		At 6/30/2019			At 12/31/2018
		Depreciation,			Depreciation,
		amortization and			amortization and
(in thousands of euros)	Gross value	impairment	Net value	Gross value	impairment	Net value
Operating rights, patents, development costs	8,772	(6,632)	2,140	8,555	(6,129)	2,426
Other (1)	15,883	(90)	15,793	13,971	(87)	13,884
TOTAL	24,655	(6,722)	17,933	22,526	(6,216)	16,310

(1) including 11,384 thousand euros relating to the allocation of the goodwill of Capacitor Sciences Inc. to a research and development asset in fiscal year 2017.

Change in net position in the first half of 2019

Net values	At	Gross	Disposals	Net	Change in	Currency	Others	At
(in thousands of euros)	12/31/2018	acquisitions	NAV	allowances	scope	fluctuations	movements	6/30/2019
Operating rights, patents,
development costs	2,426	0	0	(395)	0	108	1	2,140
Others	13,884	1,812	0	(3)	0	101	(1)	15,793
NET VALUES	16,310	1,812	0	(398)	0	209	0	17,933

21

BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019Consolidated financial statements

6.3 - Goodwill

6.3.1 - Change in goodwill

(in thousands of euros)

As of December 31, 2018	14,617
Foreign exchange differences	112
AT JUNE 30, 2019	14,729
Goodwill related to Capacitor Sciences totaled 14,165 thousand euros.

In accordance with IAS 36 "Impairment of Assets", goodwill undergoes impairment tests every year and when there is an objective indication of impairment. Since no indication of impairment loss was recorded at June 30, 2019, no impairment tests were carried out as at that date.

Note 7 - Financial structure and financial costs 7.1 - Financial income

(in thousands of euros)	June 2019	June 2018	December 2018
Net financing expenses	(425)	(365)	(662)
- Interest expenses	(428)	(365)	(663)
- Income from financial receivables	3	0	1
Other financial income(*)	802	925	1,543
Other financial expenses(*)	(893)	(1,705)	(3,260)
FINANCIAL INCOME	(516)	(1,145)	(2,378)

(*) Details of other operating income and expenses:

		June 2019			June 2018
	Total	Financial	Financial	Total	Financial	Financial
(in thousands of euros)	income	expenses	income	expenses
Effect of changes in consolidation scope	0	0	0	0	0	0
Changes in financial provisions	24	46	(22)	(19)	0	(19)
Other (1)	(115)	756	(871)	(761)	925	(1,686)
OTHER FINANCIAL INCOME AND	(91)	802	(893)	(780)	925	(1,705)
EXPENSES

1. Mainly includes the unrealized foreign exchange gain and the accretion expense on theearn-out agreed on the acquisition of Capacitor Sciences Inc., amounting to 653 thousand euros and (540) thousand euros, respectively, compared with (804) thousand euros and (485) thousand euros at June 30, 2018. In June 2018, it also included the foreign exchange gains and losses on the US dollar funding provided by Blue Solutions to Blue Solutions Canada to finance Capacitor Sciences Inc., effective retroactively to January 1, 2018. These items have been recognized in other comprehensive income since January 1, 2018, pursuant to IAS 21.

See notes 5.7.2 - Other non-current liabilities, 5.6 - Trade and other payables and 8.1 - Information on risk.

		December 2018
(in thousands of euros)	Total	Financial	Financial
income	expenses
Effect of changes in consolidation scope	(20)	0	(20)
Changes in financial provisions	12	97	(85)
Other (1)	(1,709)	1,446	(3,155)
OTHER FINANCIAL INCOME AND EXPENSES	(1,717)	1,543	(3,260)

1. Mainly includes the unrealized foreign exchange loss and the accretion expense on theearn-out agreed on the acquisition of Capacitor Sciences Inc., amounting to (1,255) thousand euros and (576) thousand euros, respectively.

22

BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019			Consolidated financial statements
7.2 - Cash and cash equivalents and net cash
		At 6/30/2019			At 12/31/2018
(in thousands of euros)	Gross value	Provisions	Net value	Gross value	Provisions	Net value
Cash	4,275	0	4,275	4,373	0	4,373
Cash management agreements - assets (1)	0	0	0	0	0	0
Cash and cash equivalents	4,275	0	4,275	4,373	0	4,373
Cash management agreement - liabilities (1)	(44,744)	0	(44,744)	(18,099)	0	(18,099)
Current bank facilities	(8)	0	(8)	(17)	0	(17)
NET CASH	(40,477)	0	(40,477)	(13,743)	0	(13,743)

(1) Cash management agreement with Bolloré SA

Cash and cash equivalents are classified within Level 1 under the fair value hierarchy defined in IFRS 13 (as at December 31, 2018).

7.3 - Financial debt

	At	including	including		including	including non-
(in thousands of euros)	6/30/2019	current	non-current	At 12/31/2018	current	current
Loans from credit institutions	0	0	0	0	0	0
Other borrowings and similar debts (1)	78,234	44,752	33,482	50,715	18,116	32,599
GROSS FINANCIAL DEBT	78,234	44,752	33,482	50,715	18,116	32,599
Cash and cash equivalents (2)	(4,275)	(4,275)	0	(4,373)	(4,373)	0
NET FINANCIAL DEBT	73,959	40,477	33,482	46,342	13,743	32,599

1. Debt on the return to better fortune clause of 33.5 million euros (see below) and the cash agreement with Bolloré SA for 44.7 million euros. See note 7.2 - Cash and cash equivalents and net cash.
2. Cash at June 30, 2019.

Main characteristics of the items in net financial debt

Liabilities at amortized cost

Other borrowings and similar debts

(in thousands of euros)	At 6/30/2019	At 12/31/2018
Cash and cash management agreement - liabilities	44,752	18,116
Other borrowings and similar debts (*)	33,482	32,599

Corresponds to the factoring in of the debt linked to the return to better fortune clause in favor of Bolloré relating to the debt waiver granted in 2009 in an amount of 33.5 million euros at June 30, 2019, versus 32.6 million euros at December 31, 2018:

Blue Solutions is committed to repaying an amount of 37.2 million euros to Bolloré SA, said amount corresponding to the debt of 37.5 million euros waived in 2009 minus the 0.3 million euros repayment in 2017, by paying one-third of the company's positive recurring income before tax, capped at the amount of the net profit, until the debt has been paid off.

The debt recognized in the financial statements corresponds to the current value of the commitment and is estimated on the basis of forecasts of future profit/loss available on the dates on which the financial statements for Blue Solutions were prepared. The interest expense representing the passage of time ((0.3) million euros at June 30, 2019, versus (0.3) million euros at June 30, 2018 and (0.6) million euros at December 31, 2018) is recognized in net financing expenses on the basis of an effective interest rate corresponding to the average financing rate of the lender. However, this interest does not create cash outflows.

Subsequent changes (excluding the effect of discounting) of this debt, resulting from a transaction with shareholders, were recorded in shareholders' equity for 0.6 million euros at June 30, 2019 and 2.4 million euros at December 31, 2018.

Debt repayments are recognized as a reduction from the debt by posting to the Bolloré SA current account.

7.4 - Investments in equity affiliates

(in thousands of euros)

As of December 31, 2018	1,055
Change in the consolidation scope	(130)
Share in net income	67
AT JUNE 30, 2019	992

23

BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019			Consolidated financial statements
Consolidated value of the companies accounted for using the equity method
	At 6/30/2019		At 12/31/2018
(in thousands of euros)	Net income Share	Equity value		Net income Share	Equity value
Cirtem (1)	67	992		93	1,055
TOTAL	67	992		93	1,055

(1) The company was 24.99% owned by Blue Solutions SA at June 30, 2019 and at December 31, 2018.

Note 8 - Information relating to market risk and the fair value of financial assets and liabilities

8.1 - Information on risk

This note updates the information provided in note 8 to the consolidated financial statements included in the Group's 2018 registration document.

Main financial risks concerning the Group

Liquidity risk

At June 30, 2019, its net financial debt was 73.9 million euros (46.3 million euros at December 31, 2018). It includes 44.8 million euros under the cash agreement with Bolloré SA (18.1 million euros at December 31, 2018), net of cash of 4.4 million euros (net cash of 4.3 million euros at December 31, 2018)) and a 33.5 million euro liability under the return to better fortune clause with Bolloré SA (32.6 million euros at December 31, 2018).

Blue Solutions is committed to repaying an amount of 37.2 million euros to Bolloré SA, said amount corresponding to the debt waived in 2009 minus the 0.3 million euro repayment already made, by paying one-third of the company's positive recurring income before tax, capped at the amount of the net profit, until the debt has been paid off.

The debt recognized in the financial statements (33.5 million euros at June 30, 2019) corresponds to the current value of the commitment and is estimated on the basis of the forecasts of future results available as of the dates of drawing up the financial statements for Blue Solutions. Interest expense representative of the passage of time is recognized in the net financing expenses on the basis of an effective interest rate corresponding to the average financing rate of the lender. However, this interest does not create cash outflows.

The Blue Solutions Group has a cash agreement, which Bolloré Group has undertaken to maintain to June 30, 2020, which may be used to cover its liquidity requirements. The Group considers that the Bolloré Group has sufficient liquidity to ensure financing for the coming years. The financial risks related to the Bolloré Group are presented in its 2019 registration document.

Interest rate risk

At June 30, 2019, the Group had net variable-rate debt of 73.9 million euros, versus 46.3 million euros at December 31, 2018. The cash management agreement with Bolloré SA showed a net liability position of 44.8 million euros at June 30, 2019, versus a net liability position of 18.1 million euros at December 31, 2018. This cash agreement bears interest at the quarterly average EONIA rate +1.00% for advances made by Bolloré SA and at the quarterly EONIA rate +0.50% for advances made to Bolloré SA, it being noted that in both cases where the quarterly EONIA rate is negative it will be deemed to be 0%.

Interest expenses in respect of the debt relating to the return to better fortune clause amounted to (0.6) million euros based on an interest rate of 1.60% at June 30, 2019 ((0.3) million euros based on an interest rate of 1.87% at June 31, 2019).

The sensitivity of the debt to a +1% change in the rate is as follows: the annual impact on financing costs would be -0.2 million euros at December 30, 2018, compared with -0.3 million euros at December 31, 2018.

Blue Solutions did not use financial derivatives to hedge rates at June 30, 2019 or December 31, 2018.

Foreign exchange risk

Group revenue related to the sale of batteries is made in euros. Consequently, over 99% of the revenue in the periods presented was generated in euros. The company therefore considers that its revenue does not expose it in a significant manner to exchange rate risks.

Blue Solutions nonetheless conducts certain transactions in foreign currency: intra-group purchases of batteries and the majority of production costs of the Canadian site are carried out in Canadian dollars; some purchases of components from outside suppliers are conducted in US dollars. The company considers that the impact related to currencies nevertheless remains limited on the whole with regard to the Group's operating income and is not hedged.

The Group's operating income is not significantly exposed to currency risk. The Group's total net currency gains and losses related to operating flows in foreign currency amounted to 45 thousand euros at June 30, 2019, 34 thousand euros at June 30, 2018, and 9 thousand euros at December 31, 2018.

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BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019

Consolidated financial statements

In 2019 and 2018, the financing of Blue Solutions Canada was provided by Blue Solutions, in part in Canadian dollars. Unrealized foreign exchange gains and losses resulting from the translation of this short-term financing into euros are recognized under other comprehensive income, pursuant to IAS 21.

Blue Solutions Canada also obtained US dollar financing from Blue Solutions to enable it to fund its own subsidiary Capacitor Sciences Inc. in US dollars. Unrealized foreign exchange gains and losses resulting from the translation of this financing were recognized in financial income at each reporting date to December 31, 2017. Since January 1, 2018, and in light of the prospect of the medium-term repayment of the financing provided to Capacitor Sciences Inc. by Blue Solutions, via Blue Solutions Canada, the net impact of unrealized foreign exchange gains and losses on this US dollar financing is now recognized in other comprehensive income, pursuant to IAS 21.

The net impact of unrealized foreign exchange gains and losses on the Canadian dollar financing provided by Blue Solutions to Blue Solutions Canada recognized under other comprehensive income totaled 3,056 thousand euros at June 30, 2019, (1,400) thousand euros at June 30, 2018 and (2,184) thousand euros at December 31, 2018.

The net impact of unrealized foreign exchange gains and losses on the US dollar financing provided by Blue Solutions to Blue Solutions Canada recognized under other comprehensive income totaled 92 thousand euros at June 30, 2019 and 648 thousand euros at December 31, 2018.

The net currency impacts recognized in profit and loss amounted to (502) thousand euros and 281 thousand euros, respectively, for the periods ended June 30, 2019 and June 30, 2018.

This impact mainly relates to the effect of foreign exchange fluctuations on the earn-out liability carried by Blue Solutions Canada in US dollars for 653 thousand euros.

The impact of a 1% change in the US dollar on the translation of the Group's data is as follows:

(In thousands of euros)	At 6/30/2019	At 6/30/2018	At 12/31/2018
Revenue	0	0	0
Operating income	(33)	(34)	(91)
Financial income	(154)	(52)	(145)
Net income	(187)	(86)	(238)
Equity	74	68	7

The impact of a 1% change in the Canadian dollar on the translation of the Group's data is as follows:

(In thousands of euros)	At 6/30/2019	At 6/30/2018	At 12/31/2018
Revenue	6	11	23
Operating income	(74)	(84)	(173)
Financial income	1	(12)	(17)
Net income	(73)	(90)	(192)
Equity	(1)	12	(90)

Credit and/or counterparty risk

Blue Solutions considers it is not exposed to counterparty risk, as close to 99% of its revenue is generated with Bolloré Group companies.

Risk related to shares

Blue Solutions has no shareholdings other than those held in Blue Solutions Canada, Capacitor Sciences and Cirtem. Accordingly, it considers that it is not subject to any risk on fluctuation in share markets.

25

BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019

Consolidated financial statements

Raw materials risk

Given the portion represented individually by each type of raw material and component in its operating expenses, Blue Solutions has not put in place any measures for this risk or any hedging measures for said risk.

Note 9 - Shareholders' equity and earnings per share

9.1 - Equity

9.1.1 - Changes in capital

At June 30, 2019, the share capital of Blue Solutions SA was 145,815,330 euros, divided into 29,163,066 fully paid-up ordinary shares with a par value of 5 euros each.

Transactions that affect or could affect the share capital of Blue Solutions are subject to agreement by the General Meeting of Shareholders.

9.1.2 - Dividends paid out by the parent company

The parent company did not pay any dividends during the fiscal year.

9.1.3 - Additional information

Following the simplified tender offer for the Blue Solutions shares in July 2017, Bolloré Group undertook to make an offer to buy Blue Solutions shares for 17 euros in the first half of 2020. 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).

9.2 - Earnings per share

The table below gives a breakdown of the details used to calculate the basic and diluted earnings per share shown at the bottom of the income statement.

(in thousands of euros)	June 2019	June 2018	December 2018
Net income, Group share, used to calculate earnings per share - basic	(21,062)	(17,730)	(33,369)
Net income, Group share, used to calculate earnings per share - diluted	(21,062)	(17,730)	(33,369)
Number of shares issued	29,163,066	29,163,066	29,163,066
Number of shares in circulation	29,163,066	29,163,066	29,163,066
Number of shares issued and potential share	29,163,066	29,163,066	29,163,066
Weighted average number of shares in circulation - basic	29,163,066	29,142,074	29,152,656
Weighted average number of shares in circulation and potential	29,163,066	29,142,074	29,152,656
shares - after dilution

Note 10 - Provisions

				including	including			including	including non-
(in thousands of euros)		At 6/30/2019	current	non-current	At 12/31/2018	current	current
Provisions for litigation		525	525		0		339	339	0
Provisions for warranties		41	41		0		41	41	0
Provisions for contingencies and charges	566	566		0		380	380	0
Employee benefits obligations		3,046	0		3,046		2,940	0	2,940
PROVISIONS		3,612	566		3,046		3,320	380	2,940
Breakdown of changes over the period
				Decrease
						Change in	Others	Currency	At
(in thousands of euros)	At 12/31/2018	Increase	With use Without use	scope	movements	fluctuations	6/30/2019
Provisions for litigation	339	177		0	0	0	0	9	525
Provisions for warranties	41	0		0	0	0	0	0	41
Employee benefit obligations
(1)	2,940	122		0	(16)	0	0	0	3,046
TOTAL	3,320	299		0	(16)	0	(144)	9	3,612

(1) Employee benefit obligations were updated at June 30, 2019 by extrapolating the calculations made at December 31, 2018.

26

BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019

Consolidated financial statements

Note 11 - Employee expenses and benefits

11.1- Share-based payment transactions

Bolloré SA free share allocation plan

The Group granted free Bolloré SA shares to Group employees. These were done in line with the conditions laides down by the Extraordinary General Meeting on June 3, 2016. The terms and conditions of these plans were approved by the Board of Directors of Bolloré at its meetings on September 1, 2016, March 23, 2017, March 22, 2018 and March 14, 2019.

Some of these shares were granted to employees of Blue Solutions Group (64,000 shares for the plan approved by the Board of Directors on September 1, 2016, involving 4,131,200 Bolloré SA shares; 70,000 shares for the plan approved by the Board of Directors on March 23, 2017, involving 1,610,000 Bolloré SA shares; 30,000 shares for the plan approved by the Board of Directors on March 22, 2018, involving 1,238,000 Bolloré SA shares; and 60,000 shares for the plan approved by the Board of Directors on March 14, 2019, involving 3,017,500 Bolloré SA shares).

The Blue Solutions Group applied IFRS 2 Share-based payment to these free share allocation plans of the parent company (IFRS 2-B53). Given that Bolloré SA is obligated to deliver the equity instruments, the Blue Solutions Group recognized the expense for employee service cost pursuant to the provisions of IFRS2.10 on the measurement of share-based payment transactions and offset this with an increase in equity for Bolloré SA's contribution.

The portion of this fair value, for all plans granted involving Bolloré SA shares, representing services provided to Blue Solutions recognized in profit and loss under "Staff costs", offset in shareholders' equity, totaled (111) thousand euros at June 30, 2019 and (89) thousand euros at June 30, 2018.

Note 12 - Taxes

12.1 - Tax expenses12.1.1 - Income tax analysis

(in thousands of euros)	June 2019	June 2018	December 2018
Provision (expense)/reversal for taxes (1)	0	0	799
Other tax (2)	0	0	(1,208)
Corporate added value contribution	(42)	(134)	(282)
TOTAL	(42)	(134)	(690)

1. At December 31, 2018, corresponds to the unwinding of the tax audit: 799 thousand euros corresponding to the corporate added value contribution.
2. At December 31, 2018, includes the corporate added value contribution relating to the tax audit in the amount of (799) thousand euros and the other reassessments of (409) thousand euros.

For the fiscal years presented, by virtue of IAS 12 section 35, the Group considered that given the recent history of unused tax losses, it was not necessary to recognize the net deferred tax assets in respect of carrying forward tax losses beyond the taxable liabilities temporary differences.

Note 13 - Related-party transactions

The consolidated financial statements include the operations conducted by the Group within the normal framework of its activities with the consolidated companies in the Bolloré Group which controls the Group.

It should be noted that the Group has in particular entered into an agreement with Bolloré SA concerning the provision of services, including the provision of assistance, staff and resources and reclassification of assets. The financial conditions of this agreement are as follows:

• provision of assistance: the amount invoiced is determined on the basis of Bolloré SA's operating costs using an allocation formula;
• provision of staff and resources: the agreement specifies reinvoicing at cost for seconded personnel and equipment, reinvoicing by the hour for aircraft;
• reclassification of assets or securities: they are calculated on the basis of the net book value of the goods in the accounts of the transferor except for changes in securities exceeding 500,000 euros and asset disposals exceeding 1,500,000 euros which are governed by a special agreement subject to the procedures forrelated-party agreements.

In addition: Blue Solutions benefits from a cash management agreement with Bolloré SA which manages the cash requirements and cash surpluses of Blue Solutions. Borrowings made are subject to the quarterly average EONIA interest rate +1.00% and loans at the EONIA rate +0.50%.

27

BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT2019	Consolidated financial statements
in thousands of euros)	June 2019	June 2018
Revenue
- non-consolidated entities in the Blue Solutions Group(1)	12,594	20,773
-entities accounted for using the equity method: Cirtem	0	0
Goods and services bought in
- non-consolidated entities in the Blue Solutions Group(1)	(1,167)	(4,076)
-entities accounted for using the equity method: Cirtem	0	0
Other financial income and expenses
- non-consolidated entities in the Blue Solutions Group(1)	(428)	(365)
-entities accounted for using the equity method: Cirtem	0	0
(in thousands of euros)	June 30, 2019	December 31, 2018
Receivables associated with business activity (excluding tax consolidation)
- non-consolidated entities in the Blue Solutions Group(1)	3,609	834
-entities accounted for using the equity method: Cirtem	0	0
Provisions for bad debts	0	0
Payables associated with business activity (excluding tax consolidation)
- non-consolidated entities in the Blue Solutions Group(1)	122	63
-entities accounted for using the equity method: Cirtem	0	0
Current accounts and cash management agreements - assets
- non-consolidated entities in the Blue Solutions Group(1)	14	14
-entities accounted for using the equity method: Cirtem	0	0
Current accounts and cash management agreements - liabilities
- non-consolidated entities in the Blue Solutions Group(1)	44,822	18,099
-entities accounted for using the equity method: Cirtem	0	0

(1) Entities jointly controlled by Bolloré Group, not consolidated by the Blue Solutions Group, along with Group holding companies.

Note 14 - Events after the reporting period

None.

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BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT 2019

Auditors' review report

STATUTORY AUDITORS' REVIEW REPORT ON THE HALF-YEARLY FINANCIAL INFORMATION

For the period from January 1 to June 30, 2019.

This is a free translation into English of the statutory auditors' review report on the half-yearly financial information issued in French and is provided solely for the convenience of English-speaking users. This report includes information relating to the specific verification of information given in the Group's half-yearly management report. This report should be read in conjunction with, and construed in accordance with, French law and professional standards applicable in France.

To the Shareholders,

In compliance with the assignment entrusted to us by your Annual General Meeting and in accordance with the requirements of article L. 451-1-2-III of the French Monetary and Financial Code ("Code monétaire et financier"), we hereby report to you on:

• the review of the accompanying condensedhalf-yearly consolidated financial statements of BLUE SOLUTIONS, for the period from January 1 to June 30, 2019,
• the verification of the information presented in thehalf-yearly management report.

These condensed half-yearly consolidated financial statements are the responsibility of the Board of Directors. Our role is to express a conclusion on these financial statements based on our review.

1. Conclusion on the financial statements

We conducted our review in accordance with professional standards applicable in France. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with professional standards applicable in France and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed half- yearly consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 - standard of the IFRSs as adopted by the European Union applicable to interim financial information.

Without qualifying the conclusion expressed above, we draw your attention to Note 2.1 "Changes in standards" of the condensed half-yearly consolidated financial statements, which describes the changes in accounting methods relating to the mandatory application as of January 1, 2019 of IFRS 16 "Leases".

1. Specific verification

We have also verified the information presented in the half-yearly management report on the condensed half-yearly consolidated financial statements subject to our review.

We have no matters to report as to its fair presentation and consistency with the condensed half-yearly consolidated

financial statements.

Neuilly-sur-Seine and Paris - La Défense, September 26th, 2019

The Statutory Auditors

French original signed by

AEG Finances	Constantin Associés
French member of Grant Thornton International	Member of Deloitte Touche Tohmatsu Limited
Samuel Clochard	Thierry Queron

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BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT 2019

Statement of the person responsible

STATEMENT OF THE PERSON RESPONSIBLE FOR THE HALF-YEAR REPORT

I hereby certify that to the best of my knowledge the condensed financial statements for the past half year have been prepared in accordance with application accounting standards and give a true and fair view of the assets, financial position and performance of the company and all its consolidated entities, and that the interim progress report on page 3 gives a true picture of the highlights in the first six months of the financial year, their effect on the accounts, the main transactions between related parties and a description of the main risks and uncertainties for the remaining six months of the financial year.

September 27, 2019

Jean-Luc Monfort

Chief Executive Officer

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BLUE SOLUTIONSHALF-YEAR FINANCIAL REPORT 2019

GLOSSARY

Organic growth: at constant scope and exchange rate

Adjusted operating income(EBITA): corresponds to operating income before amortization of intangible assets related to business combinations (PPA, Purchase Price Allocation), goodwill impairment and other intangible assets related to business combinations.

EBITDA: earnings before interest, taxes, 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 above should be considered in addition to, and not as a substitute for other GAAP measures of operating and financial performance, and Blue Solutions 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 Blue Solutions 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.

31

Tour Bolloré, 31-32, quai de Dion-Bouton 92811 Puteaux Cedex - France

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www.blue-solutions.com