Bollore : First half 2017 results

PRESS RELEASE

First half 2017 Results

September 1, 2017

• Full consolidation of Vivendi Group from April 26, 2017 and Sale to Vivendi of the Bolloré Group's 59.2% stake in Havas for 2,317 million euros completed on July 3, 2017 to build a leading world-class communication, content and media group
• Results of 1st half of 2017
  • Consolidated turnover: 7,056 million euros, up 42%, including 1,909 million euros resulting from the full consolidation of Vivendi over two months (+5% at constant scope and exchange rates)
  • Operating income: 443 million euros, up 45%, including 189 million euros resulting from the full consolidation of Vivendi over two months
  • Net income, Group share: 333 million euros, down 3% in the absence of a dividend from Vivendi following its consolidation
• Interim dividend: 0.02 euros per share, payable in cash or shares, identical to that of last year

Full consolidation of Vivendi Group from April 26, 2017

The financial statements for the first half of 2017 include four months of the Group's share of Vivendi's earnings as an equity affiliate and two months of Vivendi's earnings under full consolidation since April 26, 2017 (1).

Sale to Vivendi of the Bollor é Grou p 's st ake in Havas f or 2, 317 mil l ion euros

The Bolloré Group sold its 59.2% stake in Havas on July 3, 2017 for 9.25 euros per share, or a total of 2,317 million euros. Taking into account the dividend of 0.18 euros received in June 2017, the sale represents a total value of 2,362 million euros.

In accordance with the regulations, Vivendi plans to file a simplified tender offer for Havas's remaining share capital, again at 9.25 euros per share, without aiming to achieve a delisting of the Havas share.

First half 2017 Results

The Board of Directors of Bolloré, meeting on September 1, 2017, approved the financial statements for the first half of 2017.

1 See note at the end of the press release

Turnover was up 42% compared with the first half of 2016 (+5% at constant scope and exchange rates):

At constant scope and exchange rates, turnover for the first half of 2017 was up 5%. This trend resulted from 4% growth in the transportation and logistics business, driven by higher volumes, and an 11% increase in the oil logistics business as a result of higher prices for petroleum products. It also includes a 4% increase in the communication business, attributable to Vivendi (+8%), and a slight increase in the electricity storage and solutions business (+1%).

On an unadjusted basis, it was up 42% due to changes in the scope of consolidation, which totaled 1,793 million euros, mainly attributable to the full consolidation of Vivendi (1,775 million euros). Currency fluctuations had a negative impact of 23 million euros on the Group's first-half 2017 turnover.

First-half 2017 EBITDA: 754 million euros, up 55% | Operating income: 443 million euros, up 45%

The Group's operating income amounted to 443 million euros, an increase of 45% compared with the first half of 2016, taking into account:

• a 3% decline in the operating income of transport and logistics, which incorporates:

  • an improvement in the results of port terminals (albeit penalized by Nigeria, Congo and Gabon) and logistics in Africa,

  • a decline in the results of rail operations in Africa and freight forwarding in France and China, penalized by certain contracts signed in 2016 in a context of strong freight rates;

• a sharp decline in the oil logistics business, which was impacted by negative stock effects and lower volumes in unfavorable weather conditions compared with 2016;

• in the communication segment, the inclusion of 202 million euros of Vivendi's operating income(2) (of which 189 million euros fully consolidated over two months) offset by the decline in Havas's profit and loss due to uncertainties in the global advertising market;

• the limited increase in expenses on electricity storage (batteries and electric vehicles) despite the development of new car-sharing operations.

Net income, Group share in the first half 2017: 333 million euros, -3%

• Financial income stood at 178 million euros, compared with 225 million euros in the first half of 2016. As Vivendi is now fully consolidated, dividends received in 2017 (79 million euros) are no longer recognized in the income statement (325 million euros in 2016). However, financial income includes a capital gain of 232 million euros resulting from the fair value adjustment of Vivendi shares as part of the shift to full consolidation

• The share in the net income of non-operating companies accounted for using the equity method totaled 46 million euros, compared with a loss of 4 million euros in the first half of 2016, benefiting from the improvement in the results of Mediobanca and Socfin.

  Given these items and after taking into consideration 161 million euros in taxes (including 56 million euros

  2 Four months under the equity method and two months of full consolidation

  corresponding to taxes of Vivendi), consolidated net income totaled 505 million euros, compared with 409 million euros in the first half of 2016. Net income, Group share amounted to 333 million euros, compared with 342 million euros in the first half of 2016, a decline of 3% in the absence of a dividend from Vivendi following its consolidation.

  Net debt: 3,981 million euros | Market value of listed equity portfolio 7,292 million euros

• Net debt amounted to 3,981 million euros after taking into account Vivendi's net cash position of 662 million euros.

• Shareholders' equity amounted to 31,146 million euros, an increase of 20,865 million euros, of which 19,927 million euros from the full consolidation of Vivendi.

• The ratio of net debt to shareholders' equity was 13%, compared to 41% at end-2016.

• The market value of the listed equity portfolio was 7,292 million euros at June 30, 2017, including 1,011 million euros for the Bolloré portfolio (Mediobanca, Socfin Group, etc.) and 6,281 million euros for the Vivendi portfolio (Telecom Italia, Ubisoft, Mediaset, Telefonica, Fnac), compared with 4,553 million euros at December 31, 2016.

• The Group's liquidity(3) was up, with an undrawn available amount of more than 3.1 billion euros at the end of July 2017, compared with 1.8 billion euros at the end of 2016.

  Interim dividend: 0.02 euros per share

  The Board of Directors of Bolloré has decided to pay an interim dividend of 0.02 euros per share, the same as last year, payable in cash or in shares.

  The ex-dividend date will be September 8, 2017 and payment or delivery of shares will be made on October 5, 2017.

  The subscription price for the option of dividend payment in shares is 3.49 euros; the subscription period will run from September 8 to September 26, 2017. The shares issued as a result shall carry dividend rights as of January 1, 2018.

  Other subsequent events:

  • Blue Solutions: finalization of Bolloré's simplified tender offer on Blue Solutions in July: acquisition of 7.6% of Blue Solutions for 37.3 million euros.

  • Gaumont: sale of the stake in Gaumont for 31 million euros in July 2017, as part of the public buy-out offer launched by the company.

  • Kribi: signing of the concession contract for the new Kribi container terminal in Cameroon on July 25, 2017. The consortium comprising Bolloré Transport & Logistics, CMA CGM and Chinese group CHEC has been entrusted with the financing and operation of the Kribi container terminal for 25 years. The terminal will be

    3 At July 31, 2017, excluding Havas and excluding Vivendi

    managed as part of a Public-Private Partnership. With a 350-meter quay and a depth of 16 meters, the Kribi terminal can accommodate vessels with a capacity of 8,000 TEU. In Phase 2, the Kribi container terminal will be able to process 11,000 TEU vessels. It will boast a 715-meter quay, and will have the capacity to process

    1.3 million TEUs.

  • Partial offer for the assets of Necotrans: approval by the Paris Commercial Court of the offer of the consortium of which Bolloré Group is a member. This will notably result in:

    • the takeover of the French freight forwarding business;

    • the acquisition of certain oilfield activities in Africa;

    • the acquisition of the Brazzaville and Lomé (conventional) terminals;

    • the acquisition of Necotrans's non-controlling interests in terminals operated by the Group (Cameroon, Republic of Côte d'Ivoire, Burkina Faso and Benin).

  • Sitarail: signing of an agreement with the Republic of Côte d'Ivoire and Burkina Faso governments on a program to upgrade the railroad link between Abidjan (Republic of Côte d'Ivoire) and Kaya (Burkina Faso).

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