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BOLLORE: First half 2020 results

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BOLLORE


PRESS RELEASE


First half 2020 results

July 31, 2020


Good half-year 2020 results for all business lines

despite the pandemic

Adjusted operating income (EBITA(1)): €948m up 3%

Net income Group share: €174m up 17%

  • Revenue: €11,612 million, -1%

  • EBITDA: €1,555 million, +10%

  • Adjusted operating income (EBITA (1)) €948 million, +3%:

§ Bolloré Transportation & Logistics

€303 million

-2%

§ Communications (Vivendi):

€735 million

+2%

§ Electricity storage and systems

-€67 million,

+18%

  • Net income: €758 million, up by 43% and net income Group share of
    €174 million,
    an increase of 17%. This does not include the gain on the sale of 10% of the share capital of UMG on March 31, 2020, on the basis of an enterprise value of €30 billion for 100% of UMG. The sale was recognized in equity in the amount of €2.8 billion.

  • Net debt: €7,528 million, down by €1,192 million compared to December 31, 2019 (of which Bolloré, excluding Vivendi: €4,471 million, down €185 million).

Improved gearing: 28% compared to 34% at the end of 2019 and continued high liquidity of €8.1 billion (of which €2.7 billion for Bolloré)

Interim dividend: €0.02 per share payable in cash on September 4, 2020.



First half 2020 results

Bolloré's Board of Directors approved the financial statements for the first half of 2020 at its meeting of July 31, 2020.

First-half 2020 revenue was €11,612 million, a decrease of 4% at constant scope and exchange rates (-1% on a reported basis), with:

  • Transportation and Logistics down 2%:

    • Bolloré Logistics: up 6%, benefiting from the strong performance in air transport which fully absorbed the slight drop in maritime transport;

    • Bolloré Africa Logistics: -13% due to the contraction of logistics activities and the impact of the end of the Douala terminal (DIT) concession in Cameroon.

  • Oil logistics: down 19%, primarily due to the drop in oil prices;

  • Communications: down 2%, despite growth at UMG (+4%) which did not fully offset the decline in the other activities;

  • Electricity Storage and Systems: -8%, notably as a result of the decline in industrial activities in Brittany and at IER, which were impacted by the shutdown.

Revenue was down 1% in reported data, reflecting €263 million in changes in the scope of consolidation (consolidation of Editis and of M7 by Vivendi and exit of Bolloré Ports France and Wifirst) and €37 million in foreign exchange impacts (primarily due to the rise in the dollar).
Adjusted operating income (EBITA (2)) was €948 million, up 3% (-1%) at constant scope and exchange rates:

  • Transportation and Logistics: down 6% as a result of the end of the Douala terminal concession (DIT) in Cameroon and the decline in logistics business in Africa, partially offset by the good performance of freight forwarding, primarily in air, and of maritime terminals;

  • Oil logistics: up 43% benefiting from higher earnings in distribution and storage;

  • Communications (Vivendi): up 2% thanks to the excellent performance of UMG and of the Canal+ group;

  • Electricity Storage and Systems: a €14 million improvement as a result of the impact of the exceptional impairment decided in 2019 as part of the strategic redeployment of batteries, buses and stationary activities.

Financial income was €447 million, compared with €42 million in the first half of 2019. It consists mainly of €449 million for the revaluation of Spotify and Tencent Music securities (compared to €155 million in the first half of 2019).

The share of net income of non-operating companies accounted for using the equity method was -€91 million compared to -€10 million in the first half of 2019. It consists of:

  • An impact of -€160 million on Mediobanca, corresponding to the drop in market price, offset by financial income of +€109 million corresponding to the hedges placed on the securities;

  • +€64 million from Telecom Italia, including the effect of the partial sale of Inwit.

After taking into account a tax expense of €353 million (compared to -€235 million in the first half of 2019), consolidated net income was €758 million, compared with €530 million in the first half of 2019. Net income, Group share was €174 million compared with €149 million in the first half of 2019.

Net debt was €7,528 million compared to €8,720 million on December 31, 2019, down by €1,192 million, of which -€185 million for Bolloré, excluding Vivendi.

Equity totaled €26,675 million (€25,942 million as of December 31, 2019), up by €733 million as a result of the sale of 10% of the capital of UMG to Tencent (+€2.8 billion before expenses and taxes) and despite the negative impact of prices on securities (-€1.4 billion) and buybacks of Group securities (Vivendi and Blue Solutions). The ratio of net debt to equity (gearing) was 28%, compared with 34% at the end of 2019.

As of June 30, 2020, the Group’s liquidity position, including undrawn confirmed lines and liquid investments represented approximately3 €2.7 billion for Bolloré and €8.1 billion including Vivendi.


Group structure:











Interim dividend: 0.02 euro per share



The Board of Directors of Bolloré decided to pay an interim dividend of €0.02 per share, the same as last year, payable in cash only.



The ex-dividend date will be September 2, 2020 and payment will be made on September 4, 2020.





Health crisis



Although the impact has been greater for some countries and business lines, the Group has been resilient and has adapted to continue to service its customers, while reducing its costs to preserve its margins. The Transportation and Logistics businesses benefited from exceptional freight rates which partially offset the slowdown in normal flows. The communications businesses held up well thanks to music and pay-TV.



The Group is closely monitoring the current and potential consequences of the crisis. At this time, it is difficult to determine how it will impact the annual results. Businesses related to advertising and live entertainment may be more durably impacted than others. However, the Group remains confident about the resilience of its main business lines. It continues to do everything possible to ensure the continuity of its activities and to serve and entertain its customers and audiences, while complying with the instructions of the authorities of each country in which it has a presence.



A review of the value of assets with an indefinite life was completed. With respect to the performance of the CGUs during the first half of the year, the Group did not identify any indications of impairment requiring the implementation of full impairment tests. An analysis was carried out using sensitivity tests to assess their resilience.









****
***
*























Consolidated key figures for Bolloré


(in millions of euros)

1st half 2020

1st half 2019

Change

Revenue

11,612

11,780

(1%)

EBITDA(1)

1,555

1,410

10%

Depreciation, amortization and provisions

(607)

(492)

(23%)

Adjusted operating income (EBITA(1))

948

919

3%

Amortization resulting from PPA(1)

(194)

(186)

(4%)

Operating income

754

732

3%

of which operating equity associates

4

6

(31%)

Financial income

447

42

NA

Share of net income of non-operating
companies accounted for under the equity method

(91)

(10)

NA

Taxes

(353)

(235)

(50%)

Net income

758

530

43%

Net income, Group share

174

149

17%

Minorities

584

381

53%

June 30, 2020

December 31, 2019

Change (€ m)

Equity

26,675

25,942

733

Of which Group share

8,453

9,088

(636)

Net debt

7,528

8,720

(1,192)

Gearing (2)

28%

34%

  1. See Glossary

  2. Gearing: ratio of net debt to equity



Change in revenue by business in the first half


(in millions of euros)

1st half-year

1st half-year

1st half-year

Reported

Organic

2020

2019 (1)

2019

growth

growth

Transportation and Logistics

2,856

2,916

2,974

(4%)

(2%)

Oil logistics

1,046

1,286

1,278

(18%)

(19%)

Communications

7,574

7,728

7,351

3%

(2%)

Electricity Storage and Systems

122

133

160

(23%)

(8%)

Other (Agricultural Assets, Holding companies)

13

17

17

(21%)

(22%)

Total

11,612

12,080

11,780

(1%)

(4%)

(1) at constant scope and exchange rates

All amounts are expressed in millions of euros and rounded to the nearest decimal. As a result, the sum of the rounded amounts may differ slightly from the reported total.

Change in revenue per quarter


(in millions of euros)

1st quarter

2nd quarter

2020

2019 (1)

2019

2020

2019 (1)

2019

Transportation and Logistics

1,394

1,468

1,483

1,462

1,448

1,491

Oil logistics

631

669

665

415

617

613

Communications

3,868

3,706

3,458

3,706

4,022

3,893

Electricity Storage and Systems

65

63

75

58

71

85

Other (Agricultural Assets, Holding companies)

8

8

8

6

9

8

Total

5,966

5,914

5,690

5,646

6,166

6,090

(1) at constant scope and exchange rates

All amounts are expressed in millions of euros and rounded to the nearest decimal. As a result, the sum of the rounded amounts may differ slightly from the reported total.

Adjusted operating income by business (EBITA)


(in millions of euros)

1st half-year 2020

1st half-year 2019

As reported

Organic growth

Bolloré Transportation & Logistics

303

309

(2%)

(1%)

Transportation and logistics(1)

268

284

(6%)

(5%)

Oil logistics

35

25

43%

42%

Communications

735

718

2%

(4%)

Electricity Storage and Systems

(67)

(81)

18%

22%

Other (Agricultural Assets, Holding Companies)(1)

(23)

(27)

15%

15%

Bolloré Group EBITA

948

919

3%

(1%)

(1) Before Bolloré trademark fees

A detailed presentation of the results is available at www.bollore.com.
A limited review of the 2020 consolidated financial statements was carried out and the certification report will be issued following approval of the half-year activity report.

*****
***
*

Comparability of financial statements

  • Change in the scope of consolidation

    • Editis has been consolidated by Vivendi since February 1, 2019

    • M7 has been consolidated by the Canal+ group since September 12, 2019

    • Sale of Bolloré Ports France and Wifirst in the second half of 2019

  • Changes in the main currencies

H1 2020

H1 2019

Change

USD

1.10

1.13

3%

GBP

0.87

0.87

(0%)

PLN

4.41

4.29

(3%)

JPY

119.21

124.29

4%

CNY

7.75

7.67

(1%)

ZAR

18.33

16.04

(14%)



Glossary

Organic growth: growth at constant scope and exchange rates.

Adjusted operating income (EBITA): operating income before amortization of intangible assets related to business combinations – PPA (purchase price allocation), impairment of goodwill and other intangible assets related to business combinations.

EBITDA: operating income before depreciation and amortization.

Net financial debt/Net cash position: sum of borrowings at amortized cost, less cash and cash equivalents, cash management financial assets and net derivative financial instruments (assets or liabilities) with an underlying net financial indebtedness, as well as cash deposits backed by borrowings.

The non-GAAP measures defined below should be considered in addition to, and not as a substitute for other GAAP measures of operating and financial performance, and Bolloré considers these to be relevant indicators of the Group's operational and financial performance. Furthermore, it should be noted that other companies may define and calculate these indicators differently. It is therefore possible that the indicators used by Bolloré cannot be directly compared with those of other companies.

The percentages changes indicated in this document are calculated in relation to the same period of the preceding fiscal year, unless otherwise stated. Due to rounding in this presentation, the sum of some data may not correspond exactly to the calculated total and the percentage may not correspond to the calculated variation.



1 See glossary

2 See glossary

3 excluding Vivendi.


Attachment