Bollore : Half-year financial report 2020

Bolloré

Half-year financial report 2020

BOLLORÉ SE HALF-YEAR FINANCIAL REPORT 2020

SUMMARY

ACTIVITY REPORT
1.	SUMMARY OF THE HALF-YEAR 2020 RESULTS	3
2.	FIRST-HALF 2020 RESULTS	4
3.	GROUP STRUCTURE	7
4.	COMPARABILITY OF FINANCIAL STATEMENTS	8
5.	ESG PERFORMANCE	9
6.	IMPACTS OF THE COVID-19 CRISIS ON THE GROUP'S BUSINESSES	10
7.	ACTIVITIES	11
8.	EVENTS AFTER THE REPORTING PERIOD	18
9.	MAIN RISKS AND UNCERTAINTIES	19
10. MAIN RELATED-PARTY TRANSACTIONS	20
11. ORGANIZATIONAL CHART AT JUNE 30, 2020	21
12. CHANGE IN THE SHARE PRICE	22

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED INCOME STATEMENT	24
NOTE TO THE CONSOLIDATED FINANCIAL STATEMENT	30
STATUTORY AUDITORS' REVIEW REPORT ON THE HALF-YEARLY FINANCIAL INFORMATION	62
STATEMENT OF THE PERSON RESPONSIBLE FOR THE HALF-YEAR-REPORT	63
GLOSSARY	64

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BOLLORÉ SE HALF-YEAR FINANCIAL REPORT 2020 - Activity report -1. Summary of the half-year 2020 results

ACTIVITY REPORT

1. SUMMARY OF THE HALF-YEAR 2020 RESULTS

First half 2020 results

The results for all business lines are good despite the pandemic of Covid-19.

• The revenue was €11,612 million, -1% (on a reported basis).
• Ebitda (1) stood at €1,555 million, up 10%.
• Adjusted operating income (EBITA (1)) was €948 million, up +3%:
• • Bolloré Transport & Logistics: €303 million, -2%;
  • Communications (Vivendi): €735 million, +2%;
  • Electricity storage and systems: -€67 million euros (+18%).
• Net income amounted to €758 million, up +43 % and net income Group share was €174 million, an increase of +17%. This does not include the gain on the sale of 10% of the share capital of UMG on March 31, 2020, on the basis of an enterprise value of €30 billion for 100% of UMG. The sale was recognized in equity in the amount of 2.8 billion euros.
• Net debt stood at €7,528 million, down -€1,192 million against December 31, 2019 (of which Bolloré excluding Vivendi: €4,471 million, down -€185 million).
• Improved gearing: 28% compared to 34% at the end of 2019 and continued high liquidity of €8.1 billion (of which €2.7 billion for Bolloré);
• An interim dividend of €0.02 per share, payable in cash on September 4, 2020.

(1) See glossary

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BOLLORÉ SE HALF-YEAR FINANCIAL REPORT 2020 - Activity report - 2. First half 2020 results

2. FIRST HALF 2020 RESULTS

Consolidated key figures

in millions of euros	1st Half 2020	1 st Half 2019	Change %
Revenue	11,612	11,780	(1%)
EBITDA (1)	1,555	1,410	10%
Depreciation, amortization and provisions	(607)	(492)	(23%)
Adjusted operating income (EBITA (1))	948	919	3%
Amortization resulting from PPA (1)	(194)	(186)	(4%)
Operating income	754	732	3%
of which operating equity associates	4	6	(31%)
Financial income	447	42	na
Share of net income of non-operating companies accounted for under
the equity method	(91)	(10)	na
Taxes	(353)	(235)	(50%)
Net income	758	530	43%
Net income, Group share	174	149	17%
Minorities	584	381	53%
	June 30, 2020	December 31, 2019	Change € million
Shareholders' equity	26,675	25,942	733
of which Group share	8,453	9,088	(636)
Net debt	7,528	8,720	(1,192)
Gearing (2)	28%	34%

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

Revenue by activity

in millions of euros	1st half 2020	1st half 2019	Growth	Growth
reported (%)	Organic (%)
Transportation and logistics	2,856	2,974	(4%)	(2%)
Oil logistics	1,046	1,278	(18%)	(19%)
Communications	7,574	7,351	3%	(2%)
Electricity Storage and Systems	122	160	(23%)	(8%)
Others (Agricultural Assets, Holdings Companies)	13	17	(21%)	(22%)
TOTAL	11,612	11,780	(1%)	(4%)

First half revenue 2020: down 4% at constant consolidation scope and exchange rates:

• Transportation and logistics: down 2%
• • Bolloré Logistics: up 6%, benefiting from the strong performance of the air transport activities which fully absorbed the slight drop in the maritime transport activities;
  • Bolloré Africa Logistics: down 13% as a result of the contraction of the logistics business and the impact of the end of the Douala terminal concession (DIT) in Cameroon;
• Oil logistics: down 19%, primarily due to the drop-in oil prices;
• Communications (Vivendi): down 2%, despite growth at UMG (+4%) which did not fully offset the decline in the other activities;
• Electricity storage and systems: down 8%, notably due to a decline in the industrial activities in Brittany and in the IER business, impacted by the lockdown.

On a reported basis, revenue was down 1%, which includes a €263 million change in the scope of consolidation (consolidation of Editis and M7 at Vivendi, exit of Bolloré Ports France and Wifirst), and a €37 million foreign exchange impact (mainly reflecting the rise of the US dollar).

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