GETLINK SE 
HALF-YEAR
FINANCIAL REPORT
FOR THE SIX MONTHS TO 30 JUNE
GETLINK SE
CONTENTS * | ||
HALF-YEAR ACTIVITY REPORT AT 30 JUNE 2021.................................................................................................................... | ||
Preparation of the half-year financial report in the context of the Covid-19 pandemic ............................................................................ | ||
Analysis of consolidated statement of financial position......................................................................................................................................... | 7 | |
Analysis of consolidated cash flows .................................................................................................................................................................................. | 8 | |
Other financial indicators....................................................................................................................................................................................................... | 9 | |
Covenants relating to the Group's debt .......................................................................................................................................................................... | 9 | |
Outlook | ....................................................................................................................................................................................................................................... | 10 |
Risks ............................................................................................................................................................................................................................................ | 11 | |
Related parties......................................................................................................................................................................................................................... | 11 | |
SUMMARY HALF-YEAR CONSOLIDATED FINANCIAL STATEMENTS ................................................................................. | 12 | |
Consolidated income statement...................................................................................................................................................................................... | 12 | |
Consolidated statement of other comprehensive income ................................................................................................................................... | 12 | |
Consolidated statement of financial position ............................................................................................................................................................ | 13 | |
Consolidated statement of changes in equity ........................................................................................................................................................... | 14 | |
Consolidated statement of cash flows .......................................................................................................................................................................... | 15 | |
Notes to the financial statements ................................................................................................................................................................................... | 16 | |
A. | Important events............................................................................................................................................................................................................ | 16 |
B. | Principles of preparation, main accounting policies and methods ............................................................................................................... | 17 |
C. | Scope of consolidation ................................................................................................................................................................................................ | 19 |
D. | Operating data ............................................................................................................................................................................................................... | 19 |
E. | Personnel expenses and benefits............................................................................................................................................................................. | 23 |
F. | Intangible and tangible property, plant and equipment.................................................................................................................................. | 24 |
G. | Financing and financial instruments........................................................................................................................................................................ | 24 |
H. | Share capital and earnings per share...................................................................................................................................................................... | 27 |
I. | Income tax expense ...................................................................................................................................................................................................... | 29 |
J. | Events after the reporting period............................................................................................................................................................................. | 29 |
STATUTORY AUDITORS' REVIEW REPORT ON THE 2021 HALF-YEAR FINANCIAL INFORMATION.............................. | 30 | |
DECLARATION BY THE PERSON RESPONSIBLE FOR THE HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2021 ............ | 31 |
Accounting standards applied and presentation of the consolidated results
Pursuant to EC Regulation 1606/2002 of 19 July 2002 on the application of international accounting standards, the consolidated financial statements of Getlink SE for the six-month period 1st January to 30 June 2021 have been prepared in accordance with International Financial Reporting Standards (IFRS).
The Group has applied IFRS 5 "Non-current Assets Held for Sale and Discontinued Operations" to its maritime segment since the cessation of MyFerryLink's operations in the second half of 2015. Accordingly, this activity's net results for the current and previous periods are presented as a single line in the income statement called "Net result from discontinued operations". More information on these transactions is given in note C.2 to the summary consolidated half-year financial statements.
- English translation of Getlink SE's "rapport financier semestriel" for information purposes only.
GETLINK SE: HALF-YEAR FINANCIAL REPORT FOR THE SIX MONTHS TO 30 JUNE 2021
Half-year activity report
HALF-YEAR ACTIVITY REPORT AT 30 JUNE 2021
PREPARATION OF THE HALF-YEAR FINANCIAL REPORT IN THE CONTEXT OF THE COVID-19 PANDEMIC
The Covid-19 pandemic led to the introduction of numerous restrictive measures in various countries during 2020 and this situation has continued throughout the first half of 2021.
As indicated in this section and in notes A.1 and D.6 to the summary consolidated financial statements for the six months ended 30 June 2021, the extension of the traffic restrictions and containment measures imposed by the French and UK governments since March 2020 continue to have a significant impact on the Group's traffic and revenues, particularly those of Eurotunnel.
The general containment measures imposed in France and the UK, as well as the tighter border crossing and quarantine restrictions for international travellers, have had a significant impact on Passenger Shuttle and Eurostar train activities in the first six months of the year.
The Truck Shuttle business, albeit affected to a lesser extent by the public health crisis, was nevertheless impacted in the first few months of 2021 by the implementation of Brexit on 1 January 2021 and the need for its customers to adapt to the new administrative rules for crossing the border for flows entering the European Union.
In contrast to the Group's cross-Channel activities, the Europorte segment's activity returned to its pre-crisis level in the first half of 2021.
Against this backdrop, the Group has continued in the first half of 2021 the measures designed to protect the health and safety of its customers and staff, while ensuring the continued movement of goods and people and protect its profitability and liquidity. In particular, the Group has continued to take action to protect its cash flow by maintaining short-time working arrangements for some of its staff in France and the United Kingdom, as well as its cost reduction plan aimed at limiting its expenses to the strict minimum. The Group continues to adapt its Shuttle capacity and operating plans to respond to the decline in traffic while implementing specific measures to ensure the health and safety of its customers and maintain the quality of its service. As in 2020, it has postponed a significant part of its capital expenditure that had been planned for the first half of 2021, while ensuring that it maintains the expenditure necessary for safety and continuity of operations. All of these measures remain in place at the end of the reporting period.
The reduced activity since the beginning of the pandemic has impacted the Group's results and cash flow. Nevertheless, the Group has significant liquidity with net cash available at 30 June 2021 of €549 million enabling it to cover its debt service over the remainder of 2021 and 2022 and to finance its activities.
ANALYSIS OF CONSOLIDATED INCOME STATEMENT
To enable a better comparison between the two periods, the consolidated income statement for the first half of 2020 presented in this half-year activity report has been recalculated at the exchange rate used for the 2021 half-year income statement of £1=€1.157.
The Group's consolidated revenue continues to be severely impacted by the effects of the pandemic, with the entire first half of the year affected in 2021 compared to 3½ months in the first half of 2020; the Group's consolidated revenue in the first half of 2021 amounted to €326 million, a decrease of €44 million (-12%) compared to 2020. Faced with the reduction in traffic from mid-March 2020, the Group implemented measures to limit the impact on its profitability and its cash flow, such as partial activity in France and a job retention scheme in the UK, as well as the postponement of certain projects. These measures are still in force and have had full effect in the first half of 2021: operating costs, which totalled €230 million, decreased by €17 million (7%) compared to 2020. EBITDA reduced by €23 million (19%) to €100 million and at €6 million, the operating profit for the first six months of 2021 was down by €26 million compared to 2020. After taking into account an increase of €15 million in net finance costs (mainly due to the impact of higher inflation rates on the index-linked tranche of the debt), the pre-tax result for the Group's continuing operations for the first half of 2021 was a loss of €126 million, a deterioration of €41 million compared to 2020.
After taking into account tax income of €3 million, the Group's consolidated net result for the first six months of 2021 was a loss of €123 million compared to a loss of €79 million in 2020.
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GETLINK SE: HALF-YEAR FINANCIAL REPORT FOR THE SIX MONTHS TO 30 JUNE 2021
Half-year activity report
€ million | 1st half | 1st half | 1st half | ||
2021 | 2020 | Change | 2020 | ||
Improvement/(deterioration) of result | *recalculated | €M | % | reported | |
Exchange rate €/£ | 1.157 | 1.157 | 1.146 | ||
Eurotunnel | 260 | 312 | (52) | -17% | 311 |
Getlink | - | - | - | - | - |
Europorte | 66 | 58 | 8 | +14% | 58 |
Revenue | 326 | 370 | (44) | -12% | 369 |
Other income | 4 | - | 4 | - | - |
Total turnover | 330 | 370 | (40) | -11% | 369 |
Eurotunnel | (172) | (192) | 20 | +10% | (191) |
Getlink | (6) | (7) | 1 | +14% | (7) |
Europorte | (52) | (48) | (4) | -8% | (48) |
ElecLink | - | - | - | - | - |
Operating costs | (230) | (247) | 17 | +7% | (246) |
Operating margin (EBITDA) | 100 | 123 | (23) | -19% | 123 |
Depreciation | (92) | (91) | (1) | -1% | (91) |
Trading profit | 8 | 32 | (24) | -75% | 32 |
Other net operating charges | (2) | - | (2) | (1) | |
Operating profit (EBIT) | 6 | 32 | (26) | -81% | 31 |
Net finance costs | (133) | (119) | (14) | -12% | (118) |
Net other financial income | 1 | 2 | (1) | -50% | 2 |
Pre-tax loss from continuing operations | (126) | (85) | (41) | +48% | (85) |
Income tax income/(expense) | 3 | (3) | 6 | +200% | (3) |
Net loss from continuing operations | (123) | (88) | (35) | +40% | (88) |
Net profit from discontinued operations | - | 9 | (9) | 9 | |
Net consolidated loss for the period | (123) | (79) | (44) | +56% | (79) |
EBITDA (excluding other income) / revenue | 29.4% | 33.2% | -4 pts | 33.3% |
- Restated at the rate of exchange used for the 2021 half-year income statement (£1=€1.157).
EUROTUNNEL SEGMENT
The Group's core business is the Eurotunnel segment which operates and directly markets its Shuttle Services and also provides access, on payment of a toll, for the circulation of High-Speed Passenger Trains (Eurostar) and the Train Operators' Rail Freight Trains through its Railway Network.
€ million | 1st half | 1st half | Change | |
Improvement/(deterioration) of result | 2021* | 2020** | €M | % |
Exchange rate €/£ | 1.157 | 1.157 | ||
Shuttle Services | 189 | 213 | (24) | -11% |
Railway Network | 66 | 96 | (30) | -31% |
Other revenue | 5 | 3 | 2 | +67% |
Revenue | 260 | 312 | (52) | -17% |
External operating costs | (89) | (104) | 15 | +14% |
Employee benefits expense | (83) | (88) | 5 | +6% |
Operating costs | (172) | (192) | 20 | +10% |
Operating margin (EBITDA) | 88 | 120 | (32) | -27% |
EBITDA/revenue | 35% | 39% | -4 pt |
- Excluding other income of €4 million relating to the 2019 financial year.
- Restated at the rate of exchange used for the 2021 half-year income statement (£1=€1.157).
The health crisis and the strict lockdown measures taken by governments have heavily impacted traffic and the organisation of Eurotunnel's activities since mid-March 2020. Passenger Shuttle and Eurostar traffic remained severely affected by the effects of the pandemic during the first half of 2021. Truck Shuttle traffic was also impacted in the first months of 2021 by the consequences of Brexit which occurred on 1 January 2021.
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GETLINK SE: HALF-YEAR FINANCIAL REPORT FOR THE SIX MONTHS TO 30 JUNE 2021
Half-year activity report
The following graphs illustrate the monthly evolution in traffic volumes over the period January 2019 to June 2021:
Truck Shuttle volumes | Passenger Shuttle car and coach volumes | ||||||||||||
2019 | 2020 | 2021 | 2019 | 2020 | 2021 | ||||||||
Jan Feb Mar Apr May Jun | Jul Aug Sep Oct Nov Dec | Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec | ||||||||||||
Railfreight trains | Eurostar passengers | |||||||||||||
2019 | 2020 | 2021 | 2019 | 2020 | 2021 | |||||||||
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec | Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec |
1.1 EUROTUNNEL SEGMENT REVENUE
Revenue generated by this segment, which in the first six months of 2021 represented 80% of the Group's total revenue, amounted to €260 million, fell by 17% compared to 2020.
Eurotunnel revenue by activity (€m) | Eurotunnel revenue by period | ||||||||||||||
297 | 213 | 2019 restated* | 2020 restated* | 2021 | 2019 restated* | 2020 restated* | 2021 | ||||||||
189 | |||||||||||||||
155 | |||||||||||||||
96 | |||||||||||||||
66 | |||||||||||||||
6 | 3 | 5 |
Shuttle Services | Railway Network | Other | Jan-Feb | Mar-Jun | H1 |
- Restated at the rate of exchange used for the 2021 half-year income statement (£1=€1.157).
1.1.1 Shuttle Services
1st half | 1st half | ||
Traffic (number of vehicles) | 2021 | 2020 | Change |
Truck Shuttle | 646,372 | 665,348 | -3% |
Passenger Shuttle: | |||
Cars * | 247,957 | 545,215 | -55% |
Coaches | 3,411 | 9,362 | -64% |
- Includes motorcycles, vehicles with trailers, caravans and motor homes.
At €189 million for the first half of 2021, Shuttle Services' revenue fell by 11% compared to 2020.
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Getlink SE published this content on 22 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 July 2021 05:47:06 UTC.
