Savencia : CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2018

CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2018

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2018

1. Condensed consolidated income statement

In thousands of euro

NET SALES

Purchases adjusted for changes in inventory Personnel costs

Depreciation and amortization Other current operating expense CURRENT OPERATING PROFIT Other operating expense

Other operating income TOTAL OPERATING PROFIT Financial expense

Financial income

Group share of results of associates PROFIT BEFORE TAX

Income tax expense

Net income from continuing operations NET INCOME

Net income attributable to equity holders of the parent company Non-controlling interests

EARNINGS PER SHARE

Attributable to equity holders of the parent company :

• • basic

• • diluted

For continuing operations :

• • basic

• • diluted

Notes

6 months 2018

2017

2

2 347 060

2 356 153

-1 520 174

-1 510 161

-443 386

-434 407

-64 587

-61 441

-246 699

-246 307

72 214

103 837

3 3

-13 547

360

-2 224

2 944

59 027

104 557

4 4 5

-16 802

7 480

661

-13 656

7 995

-1 757

50 366

97 139

6

-15 191

-31 758

35 175

65 381

35 175

65 381

31 576

61 675

14

3 599

3 706

7

2,27 2,22

4,44 4,35

2,27 2,22

4,44 4,35

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 months
In thousands of euro	Notes	2018	2017
NET INCOME	35 175	65 381
Other comprehensive income:
Foreign exchange differences(1)	-16 346	-33 351
Change in fair value of financial assets	-	-183
Change in fair value of cash flow hedges, net of taxes(2)	-3 974	1 896
Currency basis spread(3)	700	-
Other changes	191	-
Share of associates and joint ventures in recyclable components	-45	-198
Total recyclable components of other comprehensive income	-19 474	-31 836
Actuarial gains and losses relating to employment benefit plans	2 933	3 525
Share of associates and joint ventures in non-recyclable components	56	78
Total non-recyclable components of other comprehensive income	2 989	3 603
Total other comprehensive income net of tax	12	-16 485	-28 233
TOTAL COMPREHENSIVE INCOME NET OF TAXE	18 690	37 148
Group share	15 018	33 210
Non-controlling interests	14	3 672	3 938

• (1) Mainly relating to the following foreign currencies: USD, BRL, CNY, ARS.

• (2) Mainly relating to hedging of interest rates and raw materials

• (3) IFRS 9 excluded currency basis the hedging relationship spread

2. Consolidated statement of balance sheet

ASSETS
In thousands of euro	Notes	June 30, 2018	December 31, 2017
Intangible assets	8	550 613	542 050
Property, plant and equipment	8	961 153	950 810
Other financial assets	30 063	29 774
Investments in associates	5	130 759	121 277
Non-current derivative financial instruments	7 595	2 727
Deferred tax assets	35 783	34 751
TOTAL NON-CURRENT ASSETS	1 715 966	1 681 389
Inventories and work in progress	9	583 349	494 107
Trade and other receivables	818 186	871 887
Tax receivable	47 526	46 894
Current derivative financial instruments	17	4 630	6 172
Other current financial assets	10	33 391	14 443
Cash and cash equivalents	11	460 042	362 116
TOTAL CURRENT ASSETS	1 947 124	1 795 619
Assets held for sale or relating to discontinued operations	138	674
TOTAL ASSETS	3 663 228	3 477 682
EQUITY AND LIABILITIES
In thousands of euro	Notes	June 30, 2018	December 31, 2017
Paid-in capital	89 113	88 166
Reserves	13	-80 543	-63 805
Retained earnings	1 247 713	1 250 408
GROUP SHARE OF EQUITY	1 256 283	1 274 769
Non-controlling interests	14	106 086	103 655
TOTAL EQUITY	1 362 369	1 378 424
Provisions	15	112 592	106 995
Non-current financial borrowings	16	281 138	278 629
Other non-current liabilities	42 183	23 908
Non-current derivative financial instruments	17	9 789	4 824
Deferred tax liabilities	41 532	48 075
TOTAL NON-CURRENT LIABILITIES	487 234	462 431
Trade and other payables	920 429	976 573
Tax payable	20 410	19 728
Current derivative financial instruments	3 060	3 589
Bank borrowings	16	869 677	636 899
TOTAL CURRENT LIABILITIES	1 813 576	1 636 789
Liabilities held for sale or relating to discontinued operations	49	38
TOTAL LIABILITIES	2 300 859	2 099 258
TOTAL EQUITY AND LIABILITIES	3 663 228	3 477 682

3. Consolidated statement of cash flows

6 months
In thousands of euro	Notes	2018	2017
Net income from continuing operations	35 175	65 381
Income tax expense	6	15 191	31 758
Depreciation and amortization	64 587	61 441
Gains and losses on disposal of assets	533	48
Group share of results of associates	5	-661	1 757
Net financial expense	5 971	5 835
Other non-cash income and expense	18 200	1 701
Gross operating margin	138 996	167 921
Interest paid	-10 706	-10 232
Interest received	4 781	4 333
Income tax paid	-22 577	-29 529
Change in working capital	-101 013	-110 843
Net cash flow from operating activities for continuing operations	9 481	21 650
NET CASH FLOW FROM OPERATING ACTIVITIES	9 481	21 650
Acquisition of subsidiaries, operating units and and non-controlling interests	-31 770	-14 034
Disposal of businesses net of the cash transferred	-	401
Purchase of tangible and intangible non-current assets	2	-76 708	-65 136
Proceeds from disposal of assets	1 423	4 016
Acquisition/disposal of financial assets and changes in other current financial assets	-20 063	-48 338
Dividends received (including dividends received from associates)	5	1 260	1 198
Net cash flow from investment associated with continuing operations	-125 858	-121 893
Net cash flow from investment associated with discontinued operations or in process of sale	-	-
NET CASH USED IN INVESTING ACTIVITIES	-125 858	-121 893
Net cash flow from financing activities
Purchase and sale of treasury shares SAVENCIA SA	934	166
Share capital increase paid by non-controlling interests	-	3 483
Proceeds of borrowings	16	94 005	157 201
Repayment of borrowings	16	-11 940	-20 174
Dividends paid	-22 004	-27 695
Net cash flow from financing activities for continuing operations	60 995	112 981
Net cash flow from financing activities for discontinued operations or in process of sale	-	-
NET CASH FLOW FOR FINANCING ACTIVITIES	60 995	112 981
Impact of foreign exchange differences	3 276	-4 491
Net change in cash and cash equivalents	-52 106	8 247
Reclassification of cash and cash equivalents for discontinued operations or in process of sale	-7	-
OPENING CASH AND CASH EQUIVALENT	11	322 860	390 792
CLOSING CASH DAND CASH EQUIVALENT	11	270 748	399 039