Savencia : CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2019 WITH ANNEXES

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02/08/19 V5

CONDENSED INTERIM CONSOLIDATED

FINANCIAL STATEMENTS AS OF JUNE 30, 2019

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2019

1. Condensed consolidated income statement

			6 months
In thousands of euro	Notes		2019			2018
NET SALES	2		2 427 692			2 347 060
Purchases adjusted for changes in inventory			-1 565 129			-1 520 174
Personnel costs			-456 583			-443 386
Depreciation and amortization(*)			-81 040			-64 587
Other current operating expense			-229 846			-246 699
CURRENT OPERATING PROFIT			95 094			72 214
Other operating expense	3		-42 200			-13 547
Other operating income	3		4 597			360
TOTAL OPERATING PROFIT			57 491			59 027
Financial expense(*)	4		-17 156			-16 802
Financial income	4		5 495			7 480
Gain or loss on net monetary position	5		656			-
Group share of results of associates	6		-766			661
PROFIT BEFORE TAX			45 720			50 366
Income tax expense	7		-19 199			-15 191
Net income from continuing operations			26 521			35 175
NET INCOME			26 521			35 175
Net income attributable to equity holders of the parent company			27 110			31 576
Non-controlling interests	16		-589			3 599
EARNINGS PER SHARE	8

Attributable to equity holders of the parent company:
•	basic	1.96	2.27
•	diluted	1.94	2.22
For continuing operations:
•	basic	1.96	2.27
•	diluted	1.94	2.22

(*) Reflecting the impact of the first-time application of IFRS 16 (cf. note 10).

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		6 months
In thousands of euro	Notes	2019		2018
NET INCOME		26 521		35 175
Other comprehensive income:
Foreign exchange differences(1)		15 620		-16 346
Change in fair value of cash flow hedges, net of taxes(2)		-2 949		-3 974
Currency basis spread (hedging)(3)		739		700
Hyperinflation(4)		6 316		-
Other changes		-		191
Share of associates and joint ventures in recyclable components		167		-45
Total recyclable components of other comprehensive income		19 893		-19 474
Actuarial gains and losses relating to employment benefit plans		-9 392		2 933
Other changes		-		-
Share of associates and joint ventures in non-recyclable components		-162		56
Total non-recyclable components of other comprehensive
income		-9 554		2 989
Total other comprehensive income net of tax	14	10 339		-16 485
TOTAL COMPREHENSIVE INCOME NET OF TAXE		36 860		18 690
Group share		37 594		15 018
Non-controlling interests	16	-734		3 672

1. Mainly relating to the following foreign currencies: RUB, USD and ARS.
2. Mainly relating to hedging of interest rates and raw materials.
3. Exclusion of the currency basis spread for hedging instruments under IFRS 9 (cf. note 14).
4. Hyperinflation adjustment for Argentina.

The notes provided are an integral part of these consolidated financial statements.

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2. Consolidated statement of financial position

ASSETS

In thousands of euro	Notes	June 30, 2019	December 31, 2018
Intangible assets	9	530 696	532 536
Property, plant and equipment	9	1 012 329	1 013 593
Leasehold rights of use	10	65 414	8 993
Other financial assets		29 435	29 954
Investments in associates	6	131 957	132 729
Non-current derivative financial instruments		21 444	11 462
Deferred tax assets		47 715	43 080
TOTAL NON-CURRENT ASSETS		1 838 990	1 772 347
Inventories and work in progress	11	607 292	517 480
Trade and other receivables		845 165	828 892
Tax receivable		51 235	50 167
Current derivative financial instruments	19	5 961	5 819
Other current financial assets	12	22 356	12 157
Cash and cash equivalents	13	550 188	471 936
TOTAL CURRENT ASSETS		2 082 197	1 886 451
TOTAL ASSETS		3 921 187	3 658 798
EQUITY AND LIABILITIES
In thousands of euro	Notes	June 30, 2019	December 31, 2018
Paid-in capital		80 326	89 288
Reserves	15	-89 932	-94 115
Retained earnings		1 317 736	1 296 678
GROUP SHARE OF EQUITY		1 308 130	1 291 851
Non-controlling interests	16	101 865	104 468
TOTAL EQUITY		1 409 995	1 396 319
Provisions	17	138 514	130 913
Non-current financial borrowings	18	335 054	335 026
Non-current lease liabilities	10	44 390	7 876
Other non-current liabilities		38 892	40 189
Non-current derivative financial instruments	19	23 072	11 492
Deferred tax liabilities		46 854	49 884
TOTAL NON-CURRENT LIABILITIES		626 776	575 380
Trade and other payables		956 022	954 156
Tax payable		13 944	18 983
Current derivative financial instruments		2 243	2 869
Bank borrowings	18	891 269	710 091
Current lease liabilities	10	20 938	1 000
TOTAL CURRENT LIABILITIES		1 884 416	1 687 099
TOTAL LIABILITIES		2 511 192	2 262 479
TOTAL EQUITY AND LIABILITIES		3 921 187	3 658 798

The notes provided are an integral part of these consolidated financial statements.

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3. Consolidated statement of cash flows

			6 months
In thousands of euro	Notes		2019			2018
Net income from continuing operations			26 521			35 175
Income tax expense	7		19 199			15 191
Depreciation and amortization			81 040			64 587
Gains and losses on disposal of assets			-842			533
Group share of results of associates	6		766			-661
Net financial expense			7 809			5 971
Other non-cash income and expense			29 527			18 200
Gross operating margin			164 020			138 996
Interest paid(1)			-12 497			-10 706
Interest received			4 248			4 781
Income tax paid			-29 346			-22 577
Change in working capital			-109 900			-101 013
Net cash flow from operating activities for continuing operations			16 525			9 481
NET CASH FLOW FROM OPERATING ACTIVITIES			16 525			9 481
Acquisition of subsidiaries, operating units and non-controlling
		-3			-31 770
interests
Purchase of tangible and intangible non-current assets	2		-72 456			-76 708
Proceeds from disposal of assets			2 632			1 423
Acquisition/disposal of financial assets and changes in other current
		-12 736			-20 063
financial assets
Dividends received (including dividends received from associates)	6		11			1 260

Net cash flow from investment associated with continuing operations

Net cash flow from investment associated with operations discontinued or in process of sale

-82 552	-125 858

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NET CASH USED IN INVESTING ACTIVITIES			-82 552		-125 858
Net cash flow from financing activities
Purchase and sale of treasury shares			-8 962		934
Proceeds of borrowings	18		175 926		94 005
Repayment of borrowings(2)	18		-23 584		-11 940
Dividends paid			-15 431		-22 004
Net cash flow from financing activities for continuing operations			127 949		60 995
Net cash flow from financing activities for operations
		-		-
discontinued or in process of sale

NET CASH FLOW FOR FINANCING ACTIVITIES

Impact of foreign exchange differences

Net change in cash and cash equivalents

Reclassification of cash and cash equivalents for operations discontinued or in process of sale

127 949	60 995
1 450	3 276
63 372	-52 106
-	-7

OPENING CASH AND CASH EQUIVALENTS	13	318 762	322 860
CLOSING CASH AND CASH EQUIVALENTS	13	382 134	270 748

1. Including, in 2019, €1.5 million for interest on leasehold obligations.
2. Including, in 2019, €11.8 million for the settlement of lease liabilities.

The notes provided are an integral part of these consolidated financial statements.

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