Press
Release |
Paris,
July 26, 2017 |
Half-year results
in line with our 2017 objectives
Ingenico Group, (Euronext: FR0000125346 - ING), global leader in
seamless payment, announced today its revised results for the six
months period end as of June 30, 2017.
Philippe Lazare,
Chairman and Chief Executive Officer of Ingenico Group,
commented: "Ingenico Group has achieved a solid performance in the
first half of this year, in line with our expectations, showing a
strong momentum in Europe and Asia-Pacific balancing weaker
performances in Latin America due to the ongoing macroeconomic
situation in Brazil. During the second quarter, North America has
recovered following three consecutive quarters of organic declines,
reflecting the strong positions we have built in this market over
the past four years. ePayments continues to grow rapidly and we are
comfortable that this division will meet its medium term targets.
In this environment, Ingenico has been able to maintain robust
EBITDA margins and cash flow generation, strengthening our
excellent financial position. In this context, we reaffirm our 2017
full year objectives and we look forward to the future with
confidence.
Ingenico has
recently announced the acquisition of Bambora for a total
consideration of 1.5 billion of euros. This acquisition represents
a key milestone in our strategic plan providing a more integrated
client offering and omnichannel solutions. Coupled with the
investments made in our platforms and the development of new
technological features, Bambora will enhance our customer centric
approach and will reinforce our online and in-store positioning
perfectly. This transaction will be additive to our growth profile
and will create value for our shareholders, customers and
employees."
H1 2017
results
Key figures
|
H1'17 |
H1'16 |
Changes vs. H1'16 |
(in
millions of euros) |
Revenue |
1,222 |
1,133 |
8% |
Adjusted gross profit |
512 |
490 |
4% |
As a % of
revenue |
41.9% |
43.2% |
(130) bpts |
Adjusted operating expenses |
-291 |
-284 |
3% |
As a % of revenue |
-23.8% |
-25.1% |
(130) bpts |
Profit from ordinary activities, adjusted
(EBIT) |
221 |
206 |
7% |
As a % of revenue |
18.0% |
18.1% |
(10) bpts |
Operating
margin |
191 |
184 |
4% |
Net
profit |
132 |
127 |
4% |
Net profit
attributable to Group shareholders |
130 |
122 |
7% |
EBITDA |
244 |
244 |
n.s. |
As a % of revenue |
20.0% |
21.5% |
(150) bpts |
|
|
|
|
Free cash-flow |
69 |
64 |
8% |
FCF/EBITDA conversion
rate |
28.1% |
26.2% |
+190 bpts |
Net
debt |
178 |
232 |
-23% |
Net debt-to-EBITDA ratio[3] |
0.4x |
0.5x |
(0.1)x |
Equity
attributable to Group shareholders |
1,771 |
1,588 |
12% |
|
H1 2017 |
Q2
2017 |
€m |
%
change |
€m |
%
change |
Comparable1 |
Reported |
Comparable1 |
Reported |
Retail |
516 |
3% |
5% |
273 |
2% |
6% |
Banks
& Acquirers |
706 |
7% |
10% |
355 |
7% |
10% |
Total |
1,222 |
5% |
8% |
628 |
5% |
8% |
EMEA |
470 |
7% |
6% |
242 |
4% |
3% |
APAC |
264 |
13% |
18% |
122 |
5% |
9% |
Latin
America |
87 |
-9% |
1% |
44 |
-1% |
5% |
North
America |
128 |
-16% |
-14% |
76 |
1% |
3% |
ePayments |
273 |
12% |
18% |
145 |
11% |
21% |
Total |
1,222 |
5% |
8% |
628 |
5% |
8% |
Performance in the
first half 2017
In the first half of 2017, revenue
totaled €1,222 million, representing an 8% increase on a reported
basis, including a positive foreign exchange impact of €12 million.
On a comparable basis, revenue was 5% higher than in the first half
of 2016.
During the period, the Retail
Business Unit reported a revenue of €516 million, an increase
of 5% on reported figures. On a comparable basis, the increase in
revenue was 3%, driven by a good performance in ePayments but
impacted by a strong terminals renewal cycle that has taken place
in 2016 in Europe.
The Banks and Acquirers Business Unit
posted a revenue of €706 million, an increase of 10% on reported
figures and including a positive foreign exchange impact of €12
million. On a comparable basis revenue increased by 7%, fueled by a
strong demand in Europe and Asia despite a lack of momentum in
Brazil reflecting the ongoing macroeconomic uncertainties.
Performance in the
second quarter 2017
In the second quarter of 2017,
Ingenico Group reported a revenue of €628 million, representing an
8% increase on a reported basis, including a positive foreign
exchange impact of €4 million. On a comparable basis1, revenue
growth was 5% higher than in the second quarter of 2016.
The Retail Business
Unit has slowed down during the second quarter showing an
organic growth of 2% and a reported revenue of €273 million.
Compared with Q2'16, the various activities performed as follows on
a like-for-like basis:
-
Online (up 11%): The activity confirmed a strong
dynamic in line with its objectives. The platforms have
demonstrated robust performance, especially in terms of stability,
customer satisfaction and churn, while first merchants decided to
adopt Ingenico new marketplace solution. Several wins during the
period allowed acceleration of new business revenue in the first
half with brands like Five Guys, WoW Air or Anantara. Finally,
several new products and partnerships have been announced or
launched, like payment in messenger bots, SEPA Direct Debit, BCMC
acquiring and next generation fraud tools to enrich Ingenico's
offer and to grow its attractiveness towards merchants.
-
In-store (down 6%): In Europe, performance has
been driven by a steady growth on the Axis platform, demonstrating
Ingenico's competitive advantage to serve Tier 1 in-store
retailers' needs, and its unique omnichannel value proposition on a
pan European basis. In France, the Group benefited from the
contribution of omnichannel contracts and continued to gain market
shares in all retail merchant tiers. Turkey showed a more
normalized performance after a strong Q1 that has benefited from
the migration to terminals with fiscal memory. The US Retail
segment continued to benefit from increasing adoption of our mobile
payment solutions with large national retailers and deeper
penetration in the Casual Dining segment with the boarding of new
customers such as Red Lobster, Hooter or Frazoli's.
The Banks and
Acquirers Business Unit has shown a solid performance in the
second quarter with an organic growth of 7% and a revenue that
reached €355 million. Compared with Q2'16, the various regions
performed as follows on a like-for-like basis:
-
EMEA (up 6%): Despite a strong comparable basis,
the dynamic showed very strong momentum across most countries. The
Group benefited from the tailwind of the PCI v1 terminals
replacement cycle. Eastern European countries experienced strong
momentum fueled by regulations pushing for more electronic
payments.
-
Asia-Pacific (up 5%): As expected, the
demonetization process in India ended after having fueled the
growth since November 2016. The dynamic will now turn to a more
normalized level waiting for a biometry regulation. In China, even
if Landi faced a maturing market, the launch of the APOS has been
particularly successful with almost 350,000 terminals shipped
during the second quarter, allowing the company to grow. The rest
of the region is still benefiting from a strong demand except in
Indonesia where the regulation has led to a "wait and see"
momentum.
-
Latin America (up 1%): The region is still
impacted by the unfavorable macroeconomic situation in Brazil
leading to a lack of visibility on this market. However, the Group
grew in the other countries, most specifically in Colombia and
Mexico. In the latter, Telium Tetra deployment continues to
progress.
-
North America (up 19%): While the prior year
comparisons remained difficult in this quarter, the region showed
improved results as distribution partners in the US began to
increase the volume of orders. Challenges continue in portions of
the market, particularly in the SMB sector as EMV migration is no
longer a motivator for merchants to upgrade their payment devices.
Market continues to stabilize and existing inventory is being
consumed. The Canadian business continues to perform strongly as
acquirers continue to replace their installed base.
Gross profit up 4%
During the first half of 2017,
adjusted gross profit reached €512 million, or 41.9% of revenue.
Excluding China, adjusted gross profit was 43.7% of revenue,
representing a 10 basis points increase compared to the first half
of 2016 pro forma adjusted gross profit.
Operating expenses
contained over the semester
In the first half of 2017, adjusted
operating costs were €291 million, representing 23.8% of revenue
compared to 25.1% in the first half of 2016. As discussed last
February, the investments in our platforms tend to decrease all
along the year as the forecasted plan has been achieved.
EBITDA margin and
profit from operating activities
EBITDA was €244 million in the first
half of 2017, equal to 20.0% of revenue compared to 21.5% in the
first half of 2016. We remain confident with our full year EBITDA
margin objective as H2 2017 will benefit from a better geographical
mix and operating improvements.
After accounting for Purchase Price
Allocation and other operating income and expenses, profit from
operations totaled €191 million, compared with €184 million in the
first half of 2016. The Group's operating margin was equal to 15.7%
of revenue, versus 16.2% in the first half of 2016.
As announced in February 2017, our
new organization will enable us to optimize our operating model
through higher end-to-end industrial and R&D efficiency,
sharing modules across platforms and leveraging scale to optimize
our costs.
In that purpose, we have initiated an operational excellence plan
with the involvement and commitment of all local managers. We
expect cost efficiencies to reach between €20 and €25 million on a
full year basis through a continuous improvement plan and
efficiency in our procurements. Our operational excellence plan
will be rolled out over time.
Growth in profit
attributable to Group shareholders compared to the previous
year
Financial results reached €-8
million, against €-1 million last year on the same period, which
one having been fueled by the disposal of Ingenico's share of Visa
Europe (€8.5 million).
Income tax expense fell from €56
million in the first half of 2016 to €51 million in the first half
2017. The reduction of the effective tax rate reflects a more
favorable geographical mix.
The net profit attributable to
Ingenico's shareholders in the first half of 2017 was up 7% to €130
million versus €122 million in the first half of 2016.
A strong free cash
flow reflected in the financial position
During the first half of 2017,
Ingenico Group's operations generated a free cash flow of €69
million, 8% higher than the prior year leading to an FCF/EBITDA
ratio of 28.1%, an increase of 190 basis points. This improvement
mainly resulted from the lower tax paid during the period resulting
from a favourable geographical mix evolution. In parallel, the
Group continued to invest in its activities with CAPEX amounting to
€38 million.
The cash dividend paid in respect of
2016 was €40 million, whereas 58.6% of the total dividend amount
was paid in stock (731,856 shares), reflecting the strong
shareholders confidence.
As of June 30, 2017, net debt was
€178 million reflecting a leverage of 0.4x the LTM EBITDA versus
€232 million in the first half of 2016.
Highlights of the
first half
Acquisition of TechProcess
Ingenico Group has acquired 100% of TechProcess Payment Services
Ltd ("TechProcess"), a leading Indian electronic payments services
provider from its current shareholders (major global and Indian
investors). The acquisition of TechProcess will support the
strategy of Ingenico Group in India, where it is the leader on the
terminal market with c.50% market shares and a large player in
online payments through the combination with EBS. Ingenico
ePayments is number 2 based on the number of merchants in India. As
a result, Ingenico Group will further expand its footprint in the
country, and, ultimately, offer cross-border
capabilities.
Acquisition of SST
Ingenico Group has acquired 100% of SST, the payment activities of
its Ukrainian partner BKC (BANCOMZVJAZOK JSC). SST is Ingenico's
portal to Ukraine, through its extensive knowledge of the local
market and its strong relationships with leading Ukrainian banks.
SST also provides software development services to various entities
within Ingenico Group, most specifically in Eastern Europe, Western
Europe, and Africa. SST will be integrated within the Banks &
Acquirers business unit.
Investment in Joinedapp
Ingenico Group has invested in Joinedapp, a start-up located in
Palo Alto, California whose enterprise e-commerce solutions enable
brands and retailers to connect with customers on their preferred
mobile messaging apps. Joinedapp's chatbot technology offers large
and SMB merchants a scalable solution to engage, nurture, and
monetize audiences across social messaging.
Acquisition of
Bambora
Ingenico Group has acquired 100% of Bambora, a fast growing player
in payment services, from Nordic Capital for a total consideration
of €1.5 billion. The transaction will be fully financed through
available cash and debt. The financial leverage will remain below
3x EBITDA leaving Ingenico flexibility for future M&A. Bambora,
whose model generates more than 90% recurring revenue, reached a
gross revenue of €202 million in 2016. In the next two years, gross
revenue and EBITDA are expected respectively to grow over 20% and
30% per year. This transaction is a key milestone in the execution
of Ingenico's strategy as it will expand Ingenico's own acquiring
capability on top of existing partnerships, step up the approach of
the fast growing end-to-end payment solutions market for SMBs in
Europe and extend the geographical exposure of the online and
in-store segments. The acquisition will be accretive on Ingenico's
economics from 2018 and beyond with an organic growth profile
enhanced by 1 to 2% per year, a c.5% EPS accretive impact in 2018
(before synergies and PPA) and €30m of run-rate synergies to be
realized over 3 years lead to an EPS accretive impact of c.13%.
Outlook
Ingenico Group confirms its 2017
objectives:
-
A revenue growth around 7% on a comparable basis
-
A slight increase of the EBITDA margin compared to 2016 (20.6%)
This press release contains forward-looking statements. The
trends and objectives given in this release are based on data,
assumptions and estimates considered reasonable by Ingenico Group.
These data, assumptions and estimates may change or be amended as a
result of uncertainties connected in particular with the
performance of Ingenico Group and its subsidiaries. These
forward-looking statements in no case constitute a guarantee of
future performance, and involve risks and uncertainties. Actual
performance may differ materially from that expressed or suggested
in the forward-looking statements. Ingenico Group therefore makes
no firm commitment on the realization of the growth objectives
shown in this release. Ingenico Group and its subsidiaries, as well
as their executives, representatives, employees and respective
advisors, undertake no obligation to update or revise any
forward-looking statements contained in this release, whether as a
result of new information, future developments or otherwise. This
release shall not constitute an offer to sell or the solicitation
of an offer to buy or subscribe for securities or financial
instruments.
About Ingenico
Group
Ingenico Group (Euronext:
FR0000125346 - ING) is the global leader in seamless payment,
providing smart, trusted and secure solutions to empower commerce
across all channels, in-store, online and mobile. With the world's
largest payment acceptance network, we deliver secure payment
solutions with a local, national and international scope. We are
the trusted world-class partner for financial institutions and
retailers, from small merchants to several of the world's best
known global brands. Our solutions enable merchants to simplify
payment and deliver their brand promise.
Learn more at
www.ingenico.com
twitter.com/ingenico
Contacts /
Ingenico Group
Investors
Laurent Marie
VP Investor Relations &
Financial Communication
laurent.marie@ingenico.com
(T) / 01 58 01 92 98 |
Investors
Kevin Woringer
Investor Relations Manager
kevin.woringer@ingenico.com
(T) / 01 58 01 85 09
|
Communication
Coba Taillefer
External Communication Manager
coba.taillefer@ingenico.com
(T) / 01 58 01 89 62 |
Upcoming events
Q3'17
revenue: October 25th, 2017
EXHIBIT
1
Basis for preparing the 2017 interim financial
statements
The consolidated
interim financial statements have been drawn up in accordance with
International Financial Reporting Standards (IFRS). In order to
provide meaningful comparable information, these data have been
presented on an adjusted basis, i.e. restated to reflect the
depreciation and amortization expenses arising on the acquisition
of new entities. Pursuant to IFRS3R, the purchase price for new
entities is allocated to the identifiable assets acquired and
subsequently amortized over specified periods.
The main financial
data for 2017 has been analyzed on an adjusted basis, i.e., before
purchase price allocation (PPA). Please see Exhibit 4.
EBITDA is not an
accounting term; it is a financial metric defined here as profit
from ordinary activities before depreciation, amortization and
provisions, and before expenses for shares distributed to employees
and officers. The reconciliation of adjusted profit from ordinary
operations to EBITDA is available in Exhibit 4.
EBIT (Earnings
Before Interest and Taxes) is equal to profit from ordinary
activities, adjusted for amortization of the purchase price for
newly acquired entities allocated to the identifiable assets
acquired.
Free cash flow is
equal to EBITDA less: cash and other operating income and expenses,
changes in working capital requirements, investing activities net
of disposals, financial expenses net of financial income, and tax
paid (Note 5e in the exhibit of interim financial
statements)
EXHIBIT 2
Following the
evolution of its activities and in order to support its position as
world leader in omnichannel payments, Ingenico Group has put in
place a new organization that is focused on clients. The Group's
reporting is structured around two business units: Banks and
Acquirers (B&A) and Retail. On top of that, the geographical
split has changed to better reflect the organization of Ingenico
Group. From now on, Europe & Africa will include the Middle
East (formerly included in Asia Pacific & Middle East) and
become EMEA. In parallel, the EBS platform,
that used to be reported in the Asia Pacific & Middle East
region, will now be part of ePayments.
To facilitate the
reading of the Group's performance as of January 1, 2017, 2016
revenues are restated below, including, from January 1, 2016, the
acquisitions of the previous year ("pro forma 2016").
1. FORMER
GEOGRAPHICAL REPORTING |
|
|
|
|
|
|
|
|
|
|
|
|
|
In Millions of euros |
Q1 2016 |
Q2 2016 |
Q3 2016 |
Q4 2016 |
2016 |
Q1 2017 |
Q2 2017 |
Retail |
235 |
257 |
251 |
267 |
1,010 |
243 |
273 |
Banks
& Acquirers |
317 |
324 |
319 |
342 |
1,302 |
351 |
355 |
Total |
552 |
581 |
570 |
609 |
2,312 |
594 |
628 |
Europe-Africa |
193 |
215 |
224 |
215 |
846 |
209 |
225 |
APAC
& Middle East |
129 |
133 |
114 |
153 |
530 |
162 |
140 |
Latin
America |
45 |
41 |
44 |
42 |
172 |
44 |
44 |
North
America |
74 |
74 |
62 |
66 |
276 |
52 |
76 |
ePayments |
111 |
119 |
126 |
133 |
488 |
127 |
144 |
Total |
552 |
581 |
570 |
609 |
2,312 |
594 |
628 |
2. NEW
GEOGRAPHICAL REPORTING |
|
|
|
|
|
|
|
|
|
|
|
|
|
In Millions of euros |
Q1 2016 |
Q2 2016 |
Q3 2016 |
Q4 2016 |
2016 |
Q1 2017 |
Q2 2017 |
Retail |
235 |
257 |
251 |
267 |
1,010 |
243 |
273 |
Banks
& Acquirers |
317 |
324 |
319 |
342 |
1,302 |
351 |
355 |
Total |
552 |
581 |
570 |
609 |
2,312 |
594 |
628 |
EMEA |
209 |
236 |
237 |
229 |
911 |
228 |
242 |
APAC |
112 |
111 |
100 |
138 |
462 |
143 |
122 |
Latin
America |
45 |
41 |
44 |
42 |
172 |
44 |
44 |
North
America |
74 |
74 |
62 |
66 |
276 |
52 |
76 |
ePayments |
112 |
120 |
127 |
134 |
493 |
128 |
145 |
Total |
552 |
581 |
570 |
609 |
2,312 |
594 |
628 |
3. NEW
GEOGRAPHICAL REPORTING ON A PRO FORMA BASIS |
|
|
|
|
|
|
|
|
|
|
|
In Millions of euros |
Q1 2016 PF |
Q2 2016 PF |
Q3 2016 PF |
Q4 2016 PF |
FY 2016 PF |
|
|
Retail |
235 |
257 |
251 |
267 |
1,010 |
|
|
Banks
& Acquirers |
321 |
329 |
323 |
340 |
1,313 |
|
|
Total |
556 |
586 |
574 |
607 |
2,323 |
|
|
EMEA |
209 |
236 |
237 |
229 |
911 |
|
|
APAC |
117 |
115 |
105 |
136 |
474 |
|
|
Latin
America |
45 |
41 |
44 |
42 |
172 |
|
|
North
America |
74 |
74 |
62 |
66 |
276 |
|
|
ePayments |
112 |
120 |
127 |
134 |
493 |
|
|
Total |
556 |
586 |
574 |
607 |
2,323 |
|
|
EXHIBIT
3
Income statements, balance sheet, cash flow
statements
1. INTERIM
CONSOLIDATED INCOME STATEMENTS (REVIEWED)
(in millions of euros) |
|
June 30, 2017 |
June 30, 2016 |
|
|
|
|
REVENUE |
|
1,222 |
1,133 |
Cost of sales |
|
-716 |
-650 |
|
|
|
|
GROSS PROFIT |
|
506 |
484 |
|
|
|
|
Distribution and marketing costs |
|
-108 |
-99 |
Research and development expenses |
|
-91 |
-87 |
Administrative expenses |
|
-109 |
-113 |
|
|
|
|
PROFIT FROM ORDINARY ACTIVITIES |
|
198 |
184 |
|
|
|
|
Other operating income |
|
0 |
3 |
Other operating expenses |
|
-7 |
-4 |
|
|
|
|
PROFIT FROM OPERATING ACTIVITIES |
|
191 |
184 |
|
|
|
|
Finance income |
|
21 |
45 |
Finance costs |
|
-29 |
-46 |
|
|
|
|
NET FINANCE COSTS |
|
-8 |
-1 |
|
|
|
|
Share of profits in equity-accounted investees |
|
0 |
0 |
|
|
|
|
PROFIT BEFORE INCOME TAX |
|
184 |
183 |
|
|
|
|
Income tax expense |
|
-51 |
-56 |
|
|
|
|
NET PROFIT |
|
132 |
127 |
|
|
|
|
Attributable to: |
|
0 |
0 |
- Ingenico Group SA shareholders |
|
130 |
122 |
- non-controlling interests |
|
2 |
5 |
|
|
|
|
EARNINGS PER SHARE (in euros) |
|
|
|
Net earnings: |
|
|
|
- basic earnings per share |
|
2.12 |
2.01 |
- diluted earnings per share |
|
2.08 |
1.96 |
-
INTERIM CONSOLIDATED BALANCE
SHEET (REVIEWED)
ASSETS |
|
|
|
(in millions of euros) |
June 30, 2017 |
Dec. 31, 2016 |
|
Goodwill |
1,438 |
1,409 |
|
Other intangible assets |
504 |
488 |
|
Property, plant and equipment |
73 |
75 |
|
Investments in equity-accounted investees |
9 |
9 |
|
Financial assets |
23 |
17 |
|
Deferred tax assets |
56 |
58 |
|
Other non-current assets |
28 |
27 |
|
TOTAL NON-CURRENT ASSETS |
2,131 |
2,083 |
|
Inventories |
164 |
172 |
|
Trade and related receivables |
573 |
501 |
|
Receivables related to intermediation activities |
35 |
29 |
|
Other current assets |
32 |
24 |
|
Current tax assets |
29 |
27 |
|
Derivative financial instruments |
12 |
12 |
|
Funds related to intermediation activities |
242 |
273 |
|
Cash and cash equivalents |
1,173 |
1,014 |
|
TOTAL CURRENT ASSETS |
2,259 |
2,052 |
|
TOTAL ASSETS |
4,391 |
4,136 |
|
|
|
|
|
EQUITY AND LIABILITIES |
-- |
-- |
|
(in millions of euros) |
June 30, 2017 |
Dec. 31, 2016 |
|
Share capital |
62 |
61 |
|
Share premium account |
816 |
762 |
|
Other reserves |
884 |
841 |
|
Translation differences |
9 |
38 |
|
Equity for the period attributable to
Ingenico Group SA shareholders |
1,771 |
1,703 |
|
Non-controlling interests |
9 |
4 |
|
TOTAL EQUITY |
1,780 |
1,707 |
|
Non-current borrowings and long-term debt |
899 |
896 |
|
Provisions for retirement and benefit obligations |
25 |
25 |
|
Other long-term provisions |
23 |
24 |
|
Deferred tax liabilities |
142 |
134 |
|
Other non-current liabilities |
121 |
127 |
|
TOTAL NON-CURRENT LIABILITIES |
1,211 |
1,206 |
|
Short-term loans and borrowings |
452 |
244 |
|
Other short-term provisions |
16 |
30 |
|
Trade and related payables |
517 |
505 |
|
Payables related to intermediation activities |
276 |
302 |
|
Other current liabilities |
112 |
119 |
|
Current tax liabilities |
25 |
20 |
|
Derivative financial instruments |
1 |
4 |
|
TOTAL CURRENT LIABILITIES |
1,399 |
1,223 |
|
TOTAL LIABILITIES |
2,611 |
2,429 |
|
TOTAL EQUITY AND LIABILITIES |
4,391 |
4,136 |
|
3. INTERIM
CONSOLIDATED CASH FLOW STATEMENTS (REVIEWED)
(in millions of euros) |
June 30, 2017 |
June 30, 2016 |
Profit for the period |
132 |
127 |
Adjustments for: |
|
|
- Share of profit of equity-accounted investees |
0 |
0 |
- Income tax expense/(income) |
51 |
56 |
- Depreciation, amortization and provisions |
39 |
44 |
- Change in fair value |
-7 |
-6 |
- (Gains)/losses on disposal of assets |
0 |
0 |
- Net interest costs/(revenue) |
7 |
-1 |
- Share-based payment expense(1) |
7 |
15 |
Interest paid |
-10 |
-11 |
Income tax paid |
-47 |
-75 |
Cash flows from operating activities
before change in net working capital |
173 |
150 |
Inventories |
1 |
-3 |
Trade and other receivables |
-91 |
-25 |
Trade payables and other payables |
12 |
-41 |
Change in net working capital |
-79 |
-69 |
NET CASH FLOWS FROM OPERATING
ACTIVITIES |
94 |
80 |
Acquisition of fixed assets |
-38 |
-27 |
Proceeds from sale of tangible and intangible fixed
assets |
0 |
9 |
Acquisition of subsidiaries, net of cash acquired |
0 |
3 |
Disposal of subsidiaries, net of cash disposed of |
-72 |
-8 |
Loans and advances granted and other financial assets |
-2 |
-2 |
Loan repayments received |
2 |
1 |
Interest received |
4 |
4 |
CASH FLOWS FROM INVESTING
ACTIVITIES |
-106 |
-21 |
Proceeds from share capital issues |
0 |
0 |
Purchase/sale of treasury shares |
0 |
0 |
Proceeds from loans and borrowings |
214 |
0 |
Repayment of loans and borrowings |
-1 |
-94 |
Change in the Group's ownership interests in controlled
entities |
9 |
1 |
Changes in other financial liabilities |
0 |
0 |
Effect of financial derivative instruments |
0 |
0 |
Dividends paid to shareholders |
-40 |
-34 |
Taxes on financing activities |
-1 |
0 |
NET CASH FLOWS FROM FINANCING
ACTIVITIES |
180 |
-128 |
Effect of exchange rates fluctuations |
-8 |
3 |
CHANGE IN CASH AND CASH
EQUIVALENTS |
161 |
-66 |
|
|
|
Net cash and cash equivalents at beginning of the
year |
1,003 |
900 |
Net cash and cash equivalents at year end |
1,164 |
834 |
|
|
|
CASH AND CASH EQUIVALENT |
|
|
Short-term investments and short-term deposits (only for
the portion considered as cash equivalents) |
146 |
237 |
Cash |
1,027 |
616 |
Bank overdrafts |
-9 |
-19 |
TOTAL NET CASH AND CASH
EQUIVALENTS |
1,164 |
834 |
EXHIBIT 4
Impact of purchase
price allocation (« PPA »)
(in millions of euros) |
H1'17 excl.
PPA |
PPA Impact |
H1'17 |
Gross profit |
512 |
(6) |
506 |
Operating expenses |
(291) |
(17) |
(307) |
Profit from ordinary activities |
221 |
(23) |
198 |
Reconciliation of
profit from ordinary activities to EBITDA
EBITDA represents profit from
ordinary activities, restated to include the following:
-
Provisions for impairment of tangible and
intangible assets, net of reversals (including impairment of
goodwill or other intangible assets with indefinite lives, but not
provisions for impairment of inventories, trade and related
receivables and other current assets), and provisions for risks and
charges (both current and non-current) on the liability side of the
balance sheet, net of reversals.
-
Expenses related to the restatement of finance
lease obligations on consolidation.
-
Expenses recognized in connection with the award
of stock options, free shares or any other payments to be accounted
for using IFRS 2, Share-based compensation.
-
Changes in the fair value of inventories in
accordance with IFRS 3, Business Combinations, i.e. determined by
calculating the selling price less costs to complete and
sell.
Reconciliation :
(in millions of euros) |
H1'17 |
H1'16 |
Profit from ordinary activities |
198 |
184 |
Allocated assets amortization |
23 |
21 |
EBIT |
221 |
206 |
Other D&A and changes in provisions |
17 |
23 |
Share-based compensation |
7 |
15 |
EBITDA |
244 |
244 |
[1]On a like-for-like basis at constant exchange rates
[2]EBITDA is not an accounting term; it is a financial metric
defined here as profit from ordinary activities before
depreciation, amortization and provisions, and before share-based
compensations.
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