Press
Release |
Paris,
12th February 2019 |
2018 full year
resultsChallenging year with 2% organic growth and €488m
EBITDAIn line with January 22th, 2019
communicationImproved revenue trajectory in the
second half 2018 with 6% organic growth2019
EBITDA above €550m with a FCF conversion at c. 50%Launch of
Fit for Growth transformation plan
2018 operating & financial
performance
- Revenues of €2,643 million, up 2% on an organic basis[1]
and 5% on a reported basis
- EBITDA[2]: €488 million, representing a margin of
18.4%
- 49% FCF[3] to EBITDA conversion rate, highlighting the strong
cash generation
- Group net profit attributable to shareholders of
€188 million
- Proposed dividend of €1.10 representing a 36% pay out
Launch of Fit for Growth transformation
plan:
- Banks & Acquirers revival through an industrial and
commercial redesign
- Accelerate Retail growth profile with strategic initiatives and
a new operating model
- Global transformation plan aiming at improving operational
efficiencies and streamlining G&A
- Net savings of €35 million and investments of
€15 million
2019 financial objectives
- Organic growth between 4% and 6%
- EBITDA above €550m
- c. 50% of FCF/EBITDA conversion
Ingenico Group (Euronext: FR0000125346 - ING),
the global leader in seamless payment, today announced its 2018
full-year results.
Nicolas Huss, Chief Executive Officer of
Ingenico Group, commented: "As the new CEO, I am very proud of
leading Ingenico, which enjoys leading technologies and positions
in integrated payment solutions. 2018 has however been a
challenging year. I have now assessed key issues faced in 2018 and
set up a new seasoned and international management team to drive
the company repositioning. The Group is already in motion to
deliver a 2019 EBITDA above €550 million. Retail performance
will be sustained by ongoing deployment of our direct access to
merchant's strategy, and strategic growth initiatives. B&A
performance has been affected by adverse market conditions and lack
of execution in mature countries in 2018. B&A is thus being
repositioned and optimized to benefit from ongoing opportunities
such as recovery in Emerging Countries or deployment of Android.
Ingenico management team will also be very focused on executing the
Fit for Growth transformation plan, together with renewed attention
on cash-flow generation. We are looking forward to detailing
our new strategic plan during a Capital Markets Day on April
24th".Key figures
(in millions of euros) |
2018 |
2017* |
Year-on-Year Difference |
Revenue |
2,643 |
2,505 |
+2%1 |
Adjusted gross profit |
1,048 |
1,066 |
-2% |
As a % of revenue |
39.6% |
42.5% |
-2.9 pts |
Adjusted operating expenses |
(560) |
(540) |
+4% |
As a % of revenue |
-21.2% |
-21.6% |
-0.4 pts |
EBITDA |
488 |
526 |
-7% |
As a % of revenue |
18.4% |
21.0% |
-2.6 pts |
Profit from ordinary activities, adjusted (EBIT) |
416 |
453 |
-8% |
As a % of revenue |
15.7% |
18.1% |
-2.4 pts |
Operating income |
278 |
371 |
-25% |
Net profit |
189 |
257 |
-26% |
Net profit attributable to Group shareholders |
188 |
253 |
-26% |
|
|
|
|
Adjusted free cash flow[4] |
285 |
269 |
+6% |
Free cash flow |
238 |
239 |
-0% |
Net debt |
1,518 |
1,471 |
+3% |
Net debt-to-EBITDA ratio |
3.1x |
2.8x |
Equity attributable to Group shareholders |
1,845 |
1,832 |
+1% |
* 2017 reported, restated from IFRS 15 impact
2018 full-year performance
In 2018, revenue totalled €2,643 million,
representing a 2% increase on a comparable basis, with an
acceleration in the second semester while organic growth reached
6%. On a reported basis revenue was 5% higher than 2017 and was
including a negative foreign exchange impact of €110 million.
Over the year, Banks & Acquirers
posted a revenue of €1,305 million, a decrease of 4% on
comparable basis, but returning to a slight organic growth of 2% in
the second semester. On a reported basis the activity decreased by
8% and was including a negative foreign exchange impact of
€62 million.
The Retail Business Unit reported a
revenue of €1,339 million, showing an increase of 8% over the
period on comparable basis, with a strong organic growth
acceleration in the second semester reaching double digit. On a
reported basis, revenue increased by 22% during the year and was
including a negative foreign exchange impact of €48 million.
Adjusted gross profit
In 2018, adjusted gross profit reached €1,048
million, down 2% compared to €1,066 million in 2017, and
representing 39.6% of revenues.
Operating expenses contained throughout the
year
In 2018, adjusted operating costs were €560
million, representing 21.2% of revenue, compared to
€540 million in 2017 when adjusted operating costs represented
21.6% of revenue.
The short term savings plan launched in July
2018 delivered €15 million in the second half of this
year.
18.4% of EBITDA margin
EBITDA was €488 million against
€526 million in 2017, representing an EBITDA margin of 18.4%,
down 1.9 points compared to the 2017 pro forma figures and
2.6 points compared to 2017 on a reported basis.
The Banks & Acquirers EBITDA stood at
€277 million, down from €371 million last year. It
represented a 21.2% EBITDA margin, down 4.8 points compared to the
26% pro forma EBITDA margin of 2017, significantly impacted by the
negative geographical mix.
The Retail EBITDA came in at
€210 million, up 18% versus last year. The margin this year
represented 15.7%, up 1.9 points compared to the 2017 pro forma
EBITDA, driven by the repositioning of the business unit carried
out over the past two years.
EBIT and operating income
EBIT margin represented 15.7% of revenue and
reached €416 million, compared to €453 million in
2017.
The other income and expenses reached
€-48 million compared to €-30 million in 2017. The increase is
mainly due to reorganization and M&A related costs. The
operating income also includes price purchase allocation costs that
represented €90 million in 2018 compared to €52 million
in 2017 (see exhibit 4).
After taking into account the other income &
expenses and price purchase allocation above described, operating
income was €278 million (10.5% of revenue), against €371
million in 2017 (14.8% of revenue).
Net profit attributable to
shareholders
The financial results account for €-38 million
compared to €-27 million in 2017. Income tax were reduced to €52
million in 2018 from €86 million in 2017. This improvement is
mainly explained by the US tax reform and a more favourable change
in the country mix. Those changes led to an effective tax rate for
the Group of 21.5%, against 25.0% in 2017.In 2018, Group net profit
attributable to shareholders came in at €188 million, against €253
million in 2017.
A strong cash generation despite increase of
non-recurring expenses
The adjusted free cash flow4 was up 6% in 2018
at €285 million, i.e. a conversion rate of 59%. The group's
operations, post other income and expenses, generated a free cash
flow of €238 million, i.e. an FCF/EBITDA conversion ratio of
49%. The capital expenditures increased as expected to
€117 million against €88 million in 2017.
The Group's net debt increased slightly to
€1,518 million against €1,471 million one year ago. This
was mainly due to the purchase of the 20% stake in Ingenico
Holdings Asia Limited, that of Airlink and €87 million of
Ingenico's shares buyback. The ratio of net debt to EBITDA is up to
3.1x from 2.8x at the end of 2017, but down from the first half of
2018 that landed at 3.6x.
Proposed dividend of €1.10 per share
In line with the Group's dividend policy, a
proposal to distribute a dividend of €1.10 per share will be
presented to the Annual General Meeting of shareholders on 11th
June 2019, representing a distribution rate of 36%. This dividend
will be payable in cash or shares, according to the holder's
preference.
Performance in the fourth quarter of
2018
|
FY 2018 |
Q4 2018 |
€m |
% Change |
€m |
% Change |
Comparable1 |
Reported |
Comparable1 |
Reported |
Retail |
1,339 |
8% |
22% |
364 |
9% |
12% |
SMBs |
393 |
16% |
125% |
105 |
20% |
46% |
Global Online |
521 |
9% |
6% |
141 |
8% |
7% |
Enterprise |
424 |
2% |
-2% |
118 |
0% |
-3% |
Banks & Acquirers |
1,305 |
-4% |
-8% |
364 |
1% |
-1% |
EMEA |
495 |
-16% |
-18% |
125 |
-21% |
-21% |
Latin America |
199 |
36% |
17% |
69 |
61% |
43% |
North America |
163 |
-9% |
-13% |
44 |
-13% |
-12% |
Asia-Pacific |
447 |
-4% |
-2% |
126 |
12% |
13% |
TOTAL |
2,643 |
2% |
5% |
727 |
5% |
5% |
In the fourth quarter of 2018, Ingenico Group
reported a revenue of €727 million, up 5% on a comparable basis
compared to the fourth quarter 2017. On a reported basis, revenue
increased by 5% including a negative foreign exchange impact of €17
million.
The Retail Business Unit continued to
grow in the fourth quarter with revenue reaching €364 million,
up 9% on a comparable basis. On a reported basis, revenue increased
by 12%, impacted by a negative foreign exchange impact of
€6 million. Compared with Q4'17, the various activities
performed as follows on a like-for-like basis:
- SMB (up 20%): The division has delivered a very
strong performance even accelerating in the second semester through
a continued expansion of the merchant base as well as an increase
in transactions with acquiring volumes growing by more than 30%
during the quarter. In particular, the performance of SMB in
Germany accelerated significantly over the quarter while gaining
new clients and retaining its existing client base. The performance
of this business will be recognized in the newly created Payone
division in 2019.
- Global Online (up 8%[5]): The quarterly
performance was in line with our expectations, benefiting from the
boarding of new clients during the past quarters. Moreover, the
division benefited from the continued momentum around some specific
commercial events such as Single Day or Black Friday. The activity
remained very strong in India, growing over 20%. During the
quarter, the division announced a new global device fingerprinting
solution and a new ACH solution (direct debit solution) in the US,
and launched a new full service solution in Russia. New customers
were signed over the quarter in the gaming sector (Kiwi Games) and
the Online Travel Agency sector (Trip A Deal, eDreams).
- Enterprise (0%): The Q4'18 activity was in line
with our expectations. The strong performance of our Western
European instore gateway, i.e. Axis offsets the expected decline of
our German OLV business. The hardware business performed well
during the quarter, with a normative performance in Europe despite
some macroeconomic headwinds which continue to impact the Turkish
terminal activity. The rest of the activity remained driven by a
very strong dynamic in North America, benefiting from renewal from
large US retailers.
The Banks & Acquirers Business Unit
has stabilized over the last quarter with a revenue increase of 1%
in a comparable basis. On a reported basis revenue reaching
€364 million, down 1% and negatively impacted by
€11 million of foreign exchange. Compared to Q4'17, the
various regions performed as follows on a like-for-like basis:
- Europe, Middle-East & Africa (down 21%): The
division has carried on experiencing operational challenges in
Q4'18 as well as a high comparable basis since Iran revenue in
Q4'17 were representing €15 million of revenue, explaining
half of the decline quarter on quarter. The region has experienced
a slow down the decision process of some of our major clients in
the Nordics and in the United Kingdom as well as a lack of
execution in some mature countries. Nevertheless, the sequential
performance of the division has stabilized on a quarterly
basis.
- Asia-Pacific (up 12%): The quarterly performance
was in line with the third quarter's activity. In Asia, all markets
expanded significantly apart from Thailand as the terminalization
process ended as expected. Japan has delivered a strong quarterly
growth as Ingenico Group capitalizes on its certified products
and the ongoing EMV migration. India is now completely back on
positive trend after the strong 2017 comparison basis, China
outperformed expectations in Q4'18 with robust demand for APOS
products in the last weeks of the year and Indonesia demonstrated
its ability to maintain its leadership with the largest acquirers.
The dynamic in Australia has been driven by the ongoing Telium
Tetra deployment which will be a driver for 2019 as
well.
- Latin America (up 61%): As expected, the division
performed very strongly in Brazil in Q4'18, even accelerating from
the Q3'18 performance year-on-year. Ingenico Group has massively
increased its market share by partnering with most of the local
acquirers selling its comprehensive range of products, including
Android terminals such as the APOS. Moreover, the Group has
developed, together with some of the largest acquirers, a Direct
Sales model in which Ingenico Group sells the POS directly on
behalf of the acquirer. Mexico remains a very promising market
where Ingenico Group continued to grow during the quarter. The
Group has benefited from the certification of Telium Tetra as well
as the development of the hardware services in the country. The
operations remained particularly strong in Colombia, Peru and
Chile.
- North America (down 13%): The B&A performance
in North America was largely impacted by a base effect due to two
significant orders placed in Q4'17. Moreover, the activity has been
impacted by the lower than expected contribution of EMV renewals in
the United States which was slowed down by a longer certification
process. In 2019 the Group expects to benefit from the Telium Tetra
deployment to US-based clients and from different EMV renewal
projects in the second half of the year. B&A in Canada
experienced a very strong quarter driven by the deployment of
Telium Tetra.
2019 overview
Launch of Fit for Growth
transformation plan
2019 will be a year of transformation as the
Group will be focused on three main structural projects through the
Fit for Growth plan. This plan encompasses the following
streams:
- Reposition B&A through a commercial redesign (client
readiness, performance culture, brand leverage) and an industrial
reorganization (product range simplification, Android development
and R&D optimization);
- Accelerate Retail through Strategic Initiatives (SMB
repeatable model expansion, Global Online verticalization, Asia and
Latin America acceleration and expand our advanced acquiring
offering) and a new operating model (customer centric, end to end
engagement model);
- Improve operational efficiency and streamline G&A
through a leaner and more agile organization, the optimization of
the Procurement & IT and the consolidation of Data
centers.
The Fit for Growth plan is expected to deliver
€35 million net savings in 2019 while €15 million will be
invested to seize future growth opportunities.
2019 objectives
- Revenue: the group expect expects to achieve an organic
growth of its revenue between 4% and 6% with B&A revenue
flat compared to last year and Retail growing at double digit
organic growth.
- EBITDA: The group targets an EBITDA above
€550 million. This target factors in:
- c. €45 million derived from the contribution of BS Payone
and Paymark;
- savings of €35 million and investments of €15 million
related to the Fit For Growth plan;
- a negative impact from currencies of
c. €5 million.
The group expects the Retail EBITDA above
€270 million, and the B&A EBITDA at c.
€280 million.
- Free cash-flow: the group has the ambition to reach a
free cash-flow conversion rate of c. 50%.
Conference Call
The 2018 full-year financial results will be
discussed in a Group telephone conference call to be held on 12th
February 2018 at 6.00pm Paris time (5.00pm UK time). A presentation
will be available at www.ingenico.com/finance. The call will be
accessible by dialling one of the following numbers:
+33 (0) 1 72 72 74 03 (from France),
+1 646 722 4916 (from the US) and
+44 20 7194 3759 (from other countries) with the
conference ID: 31784581#.
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 to
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.
Stay in touch with
us:www.ingenico.com
twitter.com/ingenico
For more experts' views, visit our blog.
Contacts / Ingenico Group
Investors Laurent MarieVP Investor Relations & Financial
Communication laurent.marie@ingenico.com (T) / (+33) (0)1 58 01 92
98 |
InvestorsKevin WoringerInvestor Relations
Managerkevin.woringer@ingenico.com(T) / (+33) (0)1 58 01 85 09
|
CommunicationStephane GrandMedia
Communicationstephane.grand@ingenico.com(T) / +33 (0) 1 58 01 91
95 |
Upcoming events
First quarter 2019 revenues: 23rd April 2019
(post market)Capital Markets Day: 24th April 2019
EXHIBIT 1 Basis for preparing the 2018
financial statements
The 2018 consolidated and statutory financial
statements have been approved by the Board of Directors on 12th
February 2019. The audit procedures on the consolidated and
statutory financial statements are concluded. The audit reports
will be issued when the corporate governance report has been
audited.
The consolidated 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 2018 has been
analyzed on an adjusted basis, i.e. before purchase price
allocation (PPA). Please see Exhibit 4.
The adjusted gross margin and the adjusted
operational expenses disclosed exclude the depreciation and
amortization, provisions, expenses for the share distributed to
employees and officers and 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.
The financial net debt disclosed excludes the
financing line of merchants pre-financing.
EXHIBIT 2
Following the closing of the combination of BS
Payone with the Ingenico DACH assets, the reporting evolves towards
greater transparency and to make it easier to read the
joint-venture performance.In parallel, the former Ogone activities
recognized in Global Online and Enterprise are transferred to SMB
and Bambora Pacific is now consolidated in Enterprise.
1. FORMER REPORTING ON REPORTED BASIS |
|
|
|
In millions of euros |
Q1 2018 |
Q2 2018 |
Q3 2018 |
Q4 2018 |
2018 |
Retail |
302 |
328 |
345 |
364 |
1,339 |
SMBs |
88 |
98 |
103 |
105 |
393 |
Global Online |
119 |
126 |
136 |
141 |
521 |
Enterprise |
95 |
105 |
106 |
118 |
424 |
Banks & Acquirers |
280 |
319 |
342 |
364 |
1,305 |
EMEA |
114 |
128 |
127 |
125 |
495 |
Latin America |
34 |
38 |
58 |
69 |
199 |
North America |
30 |
46 |
42 |
44 |
163 |
Asia-Pacific |
101 |
107 |
113 |
126 |
447 |
TOTAL |
581 |
648 |
687 |
727 |
2,643 |
|
|
|
|
|
|
2. NEW REPORTING ON A REPORTED BASIS |
|
|
|
In millions of euros |
Q1 2018 |
Q2 2018 |
Q3 2018 |
Q4 2018 |
2018 |
Retail |
302 |
328 |
345 |
364 |
1,339 |
SMBs |
70 |
78 |
82 |
84 |
314 |
Global Online |
117 |
124 |
134 |
139 |
514 |
Enterprise |
67 |
76 |
75 |
91 |
309 |
Payone |
48 |
51 |
54 |
50 |
202 |
Banks & Acquirers |
280 |
319 |
342 |
364 |
1,305 |
EMEA |
114 |
128 |
127 |
125 |
495 |
Latin America |
34 |
38 |
58 |
69 |
199 |
North America |
30 |
46 |
42 |
44 |
163 |
Asia-Pacific |
101 |
107 |
113 |
126 |
447 |
TOTAL |
581 |
648 |
687 |
727 |
2,643 |
EXHIBIT 3 Income statements,
balance sheet, cash flow statements
1.
CONSOLIDATED INCOME STATEMENTS |
|
|
|
|
|
(in
millions of euros) |
2018 |
2017* |
|
|
|
REVENUE |
2,643 |
2,505 |
Cost of
sales |
(1,649) |
(1,471) |
|
|
|
GROSS PROFIT |
995 |
1,034 |
|
|
|
Distribution and marketing costs |
(250) |
(224) |
Research
and development expenses |
(171) |
(186) |
Administrative expenses |
(247) |
(224) |
|
|
|
PROFIT FROM ORDINARY ACTIVITIES |
326 |
401 |
|
|
|
Other
operating income |
0 |
0 |
Other
operating expenses |
(48) |
(30) |
|
|
|
PROFIT FROM OPERATING ACTIVITIES |
278 |
371 |
|
|
|
NET FINANCE COSTS |
(38) |
(27) |
|
|
|
Share of
profits in equity-accounted investees |
0 |
(1) |
|
|
|
PROFIT BEFORE INCOME TAX |
241 |
343 |
|
|
|
Income
tax expense |
(52) |
(86) |
|
|
|
NET PROFIT |
189 |
257 |
|
|
|
Attributable to: |
|
|
-
Ingenico Group SA shareholders |
188 |
253 |
-
non-controlling interests |
1 |
4 |
|
|
|
EARNINGS PER SHARE (in euros) |
|
|
Net
earnings: |
|
|
-
basic earnings per share |
3.05 |
4.09 |
-
diluted earnings per share |
2.99 |
4.00 |
|
|
|
|
|
|
* restated from IFRS 15 impact
2.
CONSOLIDATED BALANCE SHEET |
|
|
|
|
|
ASSETS |
|
|
(in
millions of euros) |
2018 |
2017* |
Goodwill |
2,490 |
2,479 |
Other
intangible assets |
965 |
958 |
Property, plant and equipment |
90 |
88 |
Investments in equity-accounted investees |
8 |
8 |
Financial assets |
23 |
20 |
Deferred
tax assets |
53 |
63 |
Other
non-current assets |
37 |
39 |
TOTAL NON-CURRENT ASSETS |
3,666 |
3,654 |
Inventories |
188 |
171 |
Trade
and related receivables |
651 |
557 |
Receivables related to intermediation activities |
243 |
173 |
Other
current assets |
38 |
46 |
Current
tax assets |
36 |
21 |
Derivative financial instruments |
16 |
8 |
Funds
related to intermediation activities |
462 |
461 |
Cash and cash equivalents |
775 |
596 |
TOTAL
CURRENT ASSETS |
2,409 |
2,031 |
TOTAL ASSETS |
6,075 |
5,685 |
|
|
|
EQUITY AND LIABILITIES |
|
|
(in
millions of euros) |
2018 |
2017* |
Share
capital |
63 |
62 |
Share
premium account |
867 |
818 |
Other
reserves |
990 |
973 |
Translation differences |
(75) |
(22) |
Equity for the period attributable to Ingenico Group SA
shareholders |
1,845 |
1,832 |
Non-controlling interests |
6 |
11 |
TOTAL EQUITY |
1,850 |
1,842 |
Non-current borrowings and long-term debt |
1
864 |
1,549 |
Provisions for retirement and benefit obligations |
21 |
25 |
Other
long-term provisions |
23 |
24 |
Deferred
tax liabilities |
204 |
227 |
Other
non-current liabilities |
59 |
67 |
TOTAL NON-CURRENT LIABILITIES |
2,171 |
1,892 |
Short-term loans and borrowings |
466 |
553 |
Other
short-term provisions |
16 |
19 |
Trade
and related payables |
626 |
511 |
Payables
related to intermediation activities |
665 |
598 |
Other
current liabilities |
252 |
243 |
Current
tax liabilities |
27 |
24 |
Derivative financial instruments |
2 |
3 |
TOTAL CURRENT LIABILITIES |
2,054 |
1,951 |
TOTAL
LIABILITIES |
4,225 |
3,843 |
TOTAL EQUITY AND LIABILITIES |
6,075 |
5,685 |
* restated from IFRS 15 impact
3.
CONSOLIDATED CASH FLOW STATEMENTS |
|
|
|
|
|
(in
millions of euros) |
2018 |
2017* |
|
|
|
ProFit
For the period |
189 |
257 |
Adjustments for: |
|
|
- Share
of profit of equity-accounted investees |
(0) |
1 |
- Income
tax expense/(income) |
52 |
86 |
-
Depreciation, amortization and provisions |
162 |
111 |
- Change
in fair value |
(1) |
3 |
-
(Gains)/losses on disposal of assets |
0 |
0 |
- Net
interest costs/(revenue) |
35 |
23 |
-
Share-based payment expense |
0 |
13 |
Interest
paid |
(24) |
(16) |
Income
tax paid |
(90) |
(97) |
Cash flows from operating activities before change in net
working capital |
323 |
382 |
Inventories |
(22) |
(10) |
Trade and other receivables |
(94) |
(73) |
Trade payables and other payables |
137 |
19 |
Change in net working capital |
22 |
(63) |
Change
in net working capital coming from intermediation activities |
(6) |
21 |
NET CASH FLOWS FROM OPERATING ACTIVITIES |
339 |
340 |
|
|
|
Acquisition of fixed assets |
(117) |
(88) |
Proceeds
from sale of tangible and intangible fixed assets |
1 |
1 |
Acquisition of subsidiaries, net of cash acquired |
(36) |
(1,257) |
Disposal
of subsidiaries, net of cash disposed of |
|
|
Loans
and advances granted and other financial assets |
(3) |
(4) |
Loan
repayments received |
6 |
8 |
Dividend
received |
0 |
6 |
Interest
received |
7 |
7 |
CASH FLOWS FROM INVESTING ACTIVITIES |
(143) |
(1,327) |
|
|
|
Proceeds
from share capital issues |
|
2 |
Purchase/sale of treasury shares |
(87) |
0 |
Issuance
of borrowings |
304 |
919 |
Proceeds
from loans and borrowings |
(95) |
(275) |
Repayment of loans and borrowings |
(93) |
9 |
Change
in the Group's ownership interests in controlled entities |
4 |
(21) |
Changes
in other financial liabilities |
(0) |
(1) |
Effect
of financial derivative instruments |
(1) |
-- |
Dividends paid to shareholders |
(55) |
(40) |
Taxes on
financing activities |
4 |
(2) |
NET CASH FLOWS FROM FINANCING ACTIVITIES |
19 |
591 |
Effect
of exchange rate fluctuations |
(3) |
(18) |
CHANGE IN CASH AND CASH EQUIVALENTS |
174 |
(415) |
|
|
|
Net cash
and cash equivalents at beginning of the year |
589 |
1,003 |
Net cash
and cash equivalents at year end |
763 |
589 |
|
|
|
|
|
|
|
2018 |
2017* |
CASH
AND CASH EQUIVALENT |
|
|
Short-term investments and short-term deposits (only for the
portion considered as cash equivalents) |
103 |
90 |
Cash |
672 |
506 |
Bank
overdrafts |
(12) |
(7) |
TOTAL NET CASH AND CASH EQUIVALENTS |
763 |
589 |
* restated from IFRS 15 impactEXHIBIT 4
Impact of purchase price allocation
("PPA")
(in millions of euros) |
2018 adjusted |
Other D&A |
2018 excl.PPA |
PPA Impact |
2018 incl. PPA |
Gross profit |
1,048 |
(21) |
1,027 |
(32) |
995 |
Operating expenses |
(560) |
(51) |
(611) |
(58) |
(668) |
EBITDA/Profit from ordinary activities |
488 |
(71) |
416 |
(90) |
326 |
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.
Reconciliation:
(in millions of euros) |
2018 |
2017 |
Profit from ordinary activities |
326 |
402 |
Allocated assets amortization (PPA) |
90 |
52 |
EBIT |
416 |
453 |
Other
D&A and changes in provisions |
71 |
60 |
Share-based compensation |
0 |
13 |
EBITDA |
488 |
526 |
[1]On a like-for-like basis
[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.
[3]59% conversion rate of Free cash flow before
non-recurring items (acquisitions and restructuring costs) to
EBITDA
[4] Free cash flow before non-recurring items
(acquisitions and restructuring costs)
[5] Up 11% adjusted from the IFRS 15 impact in
Q4'17. Global Online is up 8% organically on reported figures.