Bollore : Half-year financial report 2016

2016

BOLLORÉ

HALF-YEAR FINANCIAL REPORT

SUMMARY

Activity report	3
Condensed half-yearly consolidated financial statements	16
Statement of the person responsible for the half-year report	43
Statutory Auditor's review report on the first half-year financial information 2016	44

ACTIVITY REPORT 1/ HALF-YEAR 2016 RESULTS

Summary results

Turnover was down by 7% as reported and by 5% at constant scope and exchange rates. First half 2016 EBITDA amounted to 487 million euros, (-9%).

The Group's operating income stood at 305 million euros, down by 10% compared to the first half of 2015. Net income, Group share in the first half 2016 reached 343 million euros, (-27%).

Net debt totaled 4,477 million euros, and the market value of portfolio amounted to 4,229 million euros.

It is proposed suggested an interim dividend of 0.02 euro per share, the same as last year, payable in cash or in shares.

Consolidated net income

(in millions of euros) 1st half 2016 1st half 2015 (4) Change

Turnover	4,953	5,343	(7%)
EBITDA (1)	487	535	(9%)
Depreciation, amortization and provisions	(182)	(198)	(8%)
Operating income	305	338	(10%)
Financial income	225	263
Share in net income of equity-accounted non-operating companies	(4)	58
Taxes	(117)	(112)
Net income	409	547	(25%)
Group share of Net income	343	472	(27%)
Non-controlling	67	76
Earnings per share (2)	0.12	0.17	(29%)
Net cash flow from operations	431	381	50
Net capital expenditures	(315)	(335)	20
Net financial investment	(57)	(2,443)	2,386

June 30, 2016 December 31, 2015 Change

Net debt	4,477	4,281	196
Gearing ratio	46%	38%
Market value of portfolio of listed securities (3)	4,229	4,977	(748)

1. Including Income of operating companies accounted for using the equity method

2. Excluding treasury shares

3. Taking into account the impact of financing on Vivendi securities (4)Restated to reflect the amendment to IAS 41

   Turnover

   (in millions of euros) 1 st Half 2016 1 st Half 2015 Reported growth (%) Growth at constant scope and exchange rate (%)

   Transportation and Logistics	2,723	2,973	(8%)	(5%)
   Oil logistics	959	1,169	(18%)	(18%)
   Communications (Havas, Media, Telecoms)	1,111	1,068	4%	3%
   Electricity Storage and Solutions	148	123	21%	21%
   Others (Agricultural Assets, Holding Companies)	13	10	31%	19%
   Total turnover Bolloré Group	4,953	5,343	(7%)	(5%)

   Turnover was down 5% at constant scope and exchange rates, owing to:

   This change results from the 18% decline in the oil logistics business following the ongoing decline in prices of oil products and the 5% shrinkage of the Transportation and Logistics business in an environment of declining freight rates in freight forwarding and the sharp drop in the prices of commodities that penalizes the activity in some African countries. It also incorporates the good performance in Communications (+3%) businesses, and the growth in the Electricity Storage and Solutions business (+21%).

   On an unadjusted basis, foreign currency fluctuations primarily impacting the Transportation and Logistics and Communications businesses to a lesser extent, have a negative effect of 137 million euros on the Group's turnover.

   Operating income by activity
   (in millions of euros)	1st Half 2016	1 st Half 2015	Change (%)
   Bolloré Transport & Logistics	280	308	(9%)
   % turnover	7.6%	7.4%	18 bps
   Transportation & Logistics (1)	255	290	(12%)
   Oil logistics	25	18	41%
   Communications (Havas, Media, Telecoms)	119	106	13%
   % turnover	10.7%	9.9%	83 bps
   Electricity Storage and Solutions	(77)	(53)
   Other (Agricultural Assets, Holding Companies) (1)	(17)	(23)
   Total operating income Bolloré Group	305	338	(10%)
   % Turnover	6.2%	6.3%	-17 bps
   (1) Before trademark fees

   Operating income decreased by 10% on account of:

   • the decline in operating results from the Transportation & Logistics business. The performance of freight forwarding around the world and port terminals in Africa did not offset the loss in results for Logistics in Africa, attributable to the fall in oil and commodities' prices;

   • the rise in the Oil Logistics business, thanks to solid performance from distribution in France, and business in Germany and Switzerland;

   • growth in the Communications segment thanks to the stronger results from Havas and the Media division;

     Financial income
     (in millions of euros)	1 st Half 2016	1 st Half 2015	Change (M€)
     Net dividends and income from investments in marketable securities	333	333	(1)
     Net financial expenses and income	(50)	(42)	(8)
     Other financial expenses and income	(57)	(28)	(29)
     Financial income	225	263	(38)

   • and accelerated expenses in Electricity Storage (batteries, electric vehicles, and stationary). The decline in operating income is accentuated by adverse foreign exchange effects.

The financial income for the first half of 2016 stood at 225 million euros, compared with 263 million euros in the first half of 2015. It includes 325 million euros in net dividends received from Vivendi, but is penalized by negative foreign exchange effects of -32 million euros due to the devaluation of certain currencies in Africa (Nigeria, Guinea), and -18 million euro in financial provisions (-23 million euros in the first half of 2015) including depreciations on Vallourec and Generali shares.