Market Overview

Teleperformance: First-Half 2018 Results

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Full-year 2018 like-for-like revenue growth target raised

  • First-half 2018 revenue of €2.1 billion (up + 8.3% like-for-like)
  • Faster revenue growth in the second quarter (up + 9.9%
    like-for-like)
  • EBITA before non-recurring items of €246 million for the first
    half, margin of 11.9%

Regulatory News:

The Board of Directors of Teleperformance (Paris:TEP), the worldwide
leader in outsourced omnichannel customer experience management, met
today and reviewed the consolidated financial statements for the six
months ended June 30, 2018. The Group also announced its half-year
financial results.

SOLID REVENUE AND EARNINGS PERFORMANCE, DESPITE THE UNFAVORABLE
EXCHANGE RATE ENVIRONMENT

  • Revenue: €2,070 million in H1 2018
    up + 8.3 %
    like-for-like

    up + 9.9% like-for-like in Q2 2018
  • EBITA before non-recurring items: €246 million, for a margin of 11.9%,
    vs. 11.8% in H1 2017
  • Diluted earnings per share: €2.10, up + 6.1% vs. H1 2017
  • Net free cash flow: €156 million

SIGNIFICANTLY STRONGER GLOBAL MARKET LEADERSHIP

  • Creation of more than 6,300 workstations in the Group's key markets in
    the first half of 2018
  • Expansion of Specialized Services with the announcement in June 2018
    of an agreement to buy Indian firm Intelenet, a major provider of
    high-end business services and digital transformation solutions

2018 GUIDANCE RAISED AND REFINED

  • Like-for-like revenue growth of more than + 7.5%, vs. + 6% in previous
    guidance
  • EBITA margin before non-recurring items above 13.5% at constant scope
    of consolidation
  • Sustained strong net free cash flow generation

CONFIRMATION OF 2022 TARGETS

  • Revenue of more than €6 billion
  • EBITA before non-recurring items of more than €850 million, or 14.2%
    of revenue
  • Targets to be updated on completion of the Intelenet acquisition,
    scheduled to take place in September 2018

INTERIM FINANCIAL HIGHLIGHTS

                         
        H1 2018       H1 2017       % change
        €1=US$1.22       €1 = US$1.08        
€ millions                       Reported       Like-for-like*
Revenue       2,070       2,081       - 0.6%       + 8.3%
EBITDA before non-recurring items* 323 328 - 1.5%
EBITA before non-recurring items* 246 245 + 0.4%
% of revenue 11.9% 11.8%
Operating profit 190 191 - 0.5%
Net profit - Group share 123 116 + 6.0%
Diluted earnings per share (€)* 2.10 1.98 + 6.1%
Net free cash flow*       156       178       - 12.4%        

* A glossary of alternative performance indicators is included
in the Appendix

Commenting on this performance, Teleperformance Chairman and Chief
Executive Officer Daniel Julien said:

"We had a first half with solid revenue growth at constant exchange
rates and further gains in our EBITA margin, in line with our
full-year 2018 targets. It was also the twelfth straight half-year in
which our like-for-like growth (of more than + 8%) outperformed the
market (around + 4%), once again confirming our status as a growth
company.

Increased profitability, achieved in an unfavorable exchange rate
environment, reflected strong momentum in Core Services in our most
profitable markets as well as in our high-value Specialized Services.

Our growth was not only profitable but also controlled, with solid
margins and excellent liquidity management discipline both reflected in
continued strong cash flow generation.

This healthy performance gives us confidence, both in the achievement
of our full-year targets and in the smooth ongoing implementation of our
five-year strategic plan. In addition, the Intelenet acquisition
announced in June should enable us to achieve our 2022 targets ahead of
time.

From a strategy perspective, Intelenet brings to Teleperformance its
high-end integrated solutions and extensive expertise in the area of
digital transformation for businesses. The acquisition will provide an
immediate and substantial boost to Teleperformance's offering.

Backed by our very encouraging first-half results, we are raising our
full-year 2018 guidance and are now targeting like-for-like revenue
growth of more than + 7.5% and an EBITA margin before non-recurring
items of above 13.5% at constant scope of consolidation.

Thanks to solid cash flow generation, Teleperformance is well placed
to rapidly reduce its net debt over the next two years."

-----------------------------

FIRST-HALF AND SECOND-QUARTER 2018 REVENUE

CONSOLIDATED REVENUE

In the first half of 2018, consolidated revenue amounted to
€2,070 million, representing a year-on-year increase of + 8.3% on a
like-for-like basis. As reported, revenue was virtually stable (- 0.6%),
reflecting a sharply negative €170 million currency effect that was
mainly linked to the US dollar's decline against the euro and, to a
lesser extent, the decrease in the Brazilian real and the Colombian and
Argentine pesos.

In the second quarter, consolidated revenue amounted to €1,044 million.
On like-for-like basis, revenue increased by + 9.9%, representing a
faster pace of growth than in the first quarter of the year. As
reported, revenue growth came out at + 2.8%, due to the negative
currency effect attributable primarily to the US dollar's weakness
against the euro. However, since April 2018 the Group's revenue has
begun to benefit from the recent rise in the US dollar against the euro.

REVENUE BY ACTIVITY

                                         
        H1 2018       % total       H1 2017       % total       % change
€ millions                                       Reported       Like-for-like
CORE SERVICES       1,754       85%       1,752       84%       + 0.1%       + 8.7%
English-speaking market & Asia-Pacific       740       36%       812       39%       - 8.8%       + 0.3%
Ibero-LATAM 560 27% 534 26% + 4.7% + 17.1%
Continental Europe & MEA       454       22%       406       19%       + 12.0%       + 14.5%
SPECIALIZED SERVICES       316       15%       329       16%       - 4.1%       + 5.7%
TOTAL       2,070       100%       2,081       100%       - 0.6%       + 8.3%
                                         
        Q2 2018       % total       Q2 2017       % total       % change
€ millions                                       Reported       Like-for-like
CORE SERVICES       881       84%       851       84%       + 3.5%       + 10.6%
English-speaking market & Asia-Pacific       369       36%       387       38%       - 4.6%       + 1.5%
Ibero-LATAM 286 28% 264 26% + 8.6% + 20.4%
Continental Europe & MEA       225       22%       200       20%       + 12.6%       + 15.4%
SPECIALIZED SERVICES       163       16%       164       16%       - 0.6%       + 6.3%
TOTAL       1,044       100%       1,015       100%       + 2.8%       + 9.9%
                                         
        Q1 2018       % total       Q1 2017       % total       % change
€ millions                                       Reported       Like-for-like
CORE SERVICES       874       85%       901       85%       - 3.1%       + 7.0%
English-speaking market & Asia-Pacific 371 36% 425 40% - 12.7% - 1.0%
Ibero-LATAM 274 27% 271 25% + 1.0% + 13.8%
Continental Europe & MEA       229       22%       206       20%       + 11.4%       + 13.6%
SPECIALIZED SERVICES       152       15%       165       15%       - 7.7%       + 5.0%
TOTAL       1,026       100%       1,066       100%       - 3.8%       + 6.7%
 
  • Core Services

Core Services revenue amounted to €1,754 million in the first half of
2018, a gain of + 8.7% on a like-for-like basis compared to the same
year-ago period. Revenue remained stable on a reported basis (up
+ 0.1%), with the negative currency effect mainly attributable to the
decline in the US dollar, Brazilian real and the Colombian and Argentine
pesos against the euro.

As in the first quarter, like-for-like growth in the first half was
supported by very good performances in the Ibero-LATAM and Continental
Europe & MEA regions. It also benefited, as expected, from a gradual
recovery in the English-speaking market & Asia-Pacific (EWAP) region,
where revenue returned to growth in the second quarter of the year.

  • English-speaking market & Asia-Pacific

Revenue in the English-speaking market & Asia-Pacific region amounted to
€740 million in the first half of 2018, remaining virtually stable
year-on-year on a like for like basis (up + 0.3%). On a reported basis,
however, revenue was down 8.8% as a result of the US dollar's weakness
against the euro. In the second quarter, revenue was up + 1.5%
like-for-like and down 4.6% as reported, compared with the second
quarter of 2017.

Teleperformance continued to diversify its client portfolio in the
region over the first half of the year. The most dynamic major client
segments were e-retail, fast-moving consumer goods, the energy industry
and utilities.

Consumer electronics, the region's top revenue contributor, expanded at
a satisfactory pace, and sustained growth was recorded in the automotive
industry and food services, which are still relatively underrepresented
in the Group's client portfolio.

Despite the recent start-up of a major contract in the United States,
telecommunications revenue remained lackluster, particularly in the
Philippines (offshore services).

In the second quarter, the region benefited from an improvement in
revenue growth in the United Kingdom, particularly in the consumer
electronics, administration, energy and local community services
segments, despite the still uncertain economic environment.

In Asia, the return to a solid pace of growth initiated in the first
quarter of 2018 was confirmed over the first half, after a lukewarm
performance in 2017. Development in the region continued to be driven by
China and India, the most promising markets for outsourced business
services.

In light of the contracts signed recently and the projects already
underway, the Group confirms the projection communicated at the
beginning of the year of a return to stronger growth in the region
starting in the second half.

  • Ibero-LATAM

Revenue from the Ibero-LATAM region amounted to €560 million in the
first half of 2018. As in the first quarter, business continued to
expand at a very healthy rate and to exceed budget forecasts. Growth
came to + 17.1% on a like-for-like basis versus the same year-ago
period, but was limited to + 4.7% as reported due to the negative
currency effect related mainly to the weakening of the US dollar, the
Brazilian real and the Colombian and Argentine pesos against the euro.

In the second quarter, revenue was up + 20.4% like-for-like, confirming
the very good performance posted in the first quarter.

The region's main growth driver was Portugal, where the Group continued
to benefit from the fast development of multilingual hubs serving major
multinationals. In Spain, the renewed sales momentum observed at the
beginning of the year continued during the second quarter, further
attesting to the effectiveness of the previous two years' action plans
and investments.

The Group continues to benefit from the attractiveness of nearshore
solutions in Mexico serving the US market, sometimes to the detriment of
offshore solutions in the Philippines, and is expanding its presence in
many different segments such as specialized retailing, food services,
financial services and travel agencies. It is also benefiting from
Mexico's buoyant domestic market and the investments made in the country
in recent years.

Growth in operations in Brazil and Argentina picked up pace during the
period and performances remained satisfactory in Colombia.

The rapid ramp-up of operations in the Peruvian market, which the Group
entered in 2017, also contributed to strong first-half business growth
in the region.

To support this growth, new sites were opened during the first half, in
Mexico and Portugal.

  • Continental Europe & MEA

In the Continental Europe & MEA region, first-half 2018 revenue rose by
+ 14.5% like-for-like and by + 12.0% as reported, ending the period at
€454 million. The negative currency effect stemmed mainly from the fall
in the Egyptian pound, the Turkish lira and the Russian ruble against
the euro.

The gains recorded in the three months to March 31, 2018 continued in
the second quarter, with revenue growth for the quarter coming out at
+ 15.4%.

Business momentum remained strong in the region.

The solid performance posted in the first half confirms the acceleration
of revenue growth observed in second-half 2017 and reflects a very good
sales dynamic among global clients and fast-growing local market leaders
in a wide range of industries. Revenues generated by the Group's
multilingual hubs in Greece and by operations in Egypt, Turkey and
Eastern Europe (Russia, Poland and Romania) all rose sharply.

Operations in France reported healthy sales performances starting in the
second quarter, particularly in domestic business, with new contracts
signed primarily in the energy and online services segments.

Other growth drivers in the region included the resounding business
recovery in Sweden and in Germany, with revenues reflecting the
contribution of a new site in Kosovo serving the German market.

The fastest growing client segments in the region remained consumer
electronics, leisure and entertainment, travel agencies, transportation
and fast-moving consumer goods. The main revenue contributors, such as
consumer electronics and financial services, continued to grow at a
solid pace.

To support this growth, new sites were opened during the first half of
2018, in Russia and Poland.

  • Specialized Services

Revenue from Specialized Services came in at €316 million in the first
half of 2018. The business grew by + 5.7% like-for-like, but contracted
by 4.1% as reported, due to the negative currency effect resulting
mainly from the US dollar's significant fall against the euro during the
period. LanguageLine Solutions' North American operations are a
significant contributor to Specialized Services revenues.

Revenue rose by + 6.3% in the second quarter, representing a faster pace
of growth than in the first three months of the year. Held back by
non-recurring items in the first quarter of the year, growth in
LanguageLine Solutions revenue returned to normal in the second quarter.

TLScontact continued to expand at a healthy pace in the first half of
2018, with growth slowing somewhat in the second quarter versus the
first, despite a high basis of comparison for this period in 2017.
Growth continued to be led by the satisfactory increase in visa
application volumes on every government contract and by sales of add-on
services during the visa issuance process.

The LanguageLine Solutions and TLScontact businesses account for around
80% of Specialized Services revenues.

FIRST-HALF 2018 RESULTS

EBITA before non-recurring items came to €246 million for the first half
of 2018, virtually unchanged from the prior-year period (€245 million).
EBITA margin before non-recurring items widened further, to 11.9% from
11.8% in first-half 2017, despite the decline of the US dollar against
the euro which, in view of the currency mix, negatively impacted Group
margins.

EARNINGS BY ACTIVITY

EBITA BEFORE NON-RECURRING ITEMS BY ACTIVITY

                 
        H1 2018       H1 2017
€ millions                
CORE SERVICES       152       147
% OF REVENUE       8.7%       8.4%
English-speaking market & Asia-Pacific       51       60
% of revenue 6.8% 7.4 %
Ibero-LATAM 60 55
% of revenue 10.8% 10.3 %
Continental Europe & MEA 19 11
% of revenue 4.2% 2.7 %
Holding companies       22       21
SPECIALIZED SERVICES 94 98
% OF REVENUE       29.6%       29.7 %
TOTAL       246       245
% OF REVENUE       11.9%       11.8%
  • Core Services

In Core Services, EBITA before non-recurring items amounted to
€152 million in the first half of 2018, compared to €147 million in
first-half 2017. EBITA margin before non-recurring items stood at 8.7%
versus 8.4% for the prior-year period.

This improvement essentially reflects a positive mix effect resulting
from bullish growth in the Ibero-LATAM region, which was the Group's
most profitable region in the half-year period, and the ongoing margin
recovery for Continental Europe & MEA.

  • English-speaking market & Asia-Pacific

The English-speaking market and Asia-Pacific region achieved EBITA
before non-recurring items of €51 million in the first half of 2018,
compared to €60 million in the prior-year period. EBITA margin before
non-recurring items came to 6.8% versus 7.4% in first-half 2017.

The decline stemmed mainly from the Group's offshore business in the
Philippines, which remained subdued, particularly in the
telecommunications segment, in favor of nearshore business in Mexico
(Ibero-LATAM region).

The uncertain economic environment in the United Kingdom also dampened
profitability in the industry.

Profitability progressed well in India and China, with the latter
benefiting from the effective ramp-up during the period of recently
opened sites.

In light of recently signed contracts, projects already underway and the
non-recurrence of the negative effects felt in 2017, which continued
during the first half but should ease in the coming quarters, the Group
is confident that margins in the region will improve in the second half
of 2018 versus the prior-year period.

  • Ibero-LATAM

EBITA before non-recurring items in the Ibero-LATAM region amounted to
€60 million in the first half of 2018, compared to €55 million in the
same period in 2017.

EBITA margin before non-recurring items remained high, at 10.8%,
representing a significant increase over the first half of 2017 (10.3%).

Growth in operations in Portugal and offshore Mexico was particularly
robust and profitable during the period, while operating efficiency
continued to improve steadily in Brazil, Argentina and Spain.

The Group confirms its objective of a further improvement in margins
across the region for the full year.

  • Continental Europe & MEA

In the Continental Europe & MEA region, Teleperformance remained on the
steady upward trend in profitability that began in 2012. EBITA before
non-recurring items for the region came to €19 million, giving a margin
of 4.2% versus 2.7% in the prior-year period. Positive factors
contributing to this growth included:

  • Continued vibrant business growth with global and premium clients in a
    number of countries in Southern and Eastern Europe, such as Greece
    with its highly efficient multilingual solutions, and Russia.
  • Ongoing improvement in profitability in a number of countries,
    including France and the Nordics but also Germany and Italy, with the
    development of nearshore solutions that enhance the Group's
    competitiveness in these markets.

The Group confirms its objective of improving the region's margins
further for full-year 2018.

  • Specialized Services

In Specialized Services, EBITA before non-recurring items amounted to
€94 million in the first half of 2018, compared to €98 million in
first-half 2017. EBITA margin before non-recurring items remained
virtually stable at 29.6%, versus 29.7% in the prior-year period.

The LanguageLine Solutions and TLScontact businesses, which account for
around 80% of Specialized Services revenues, continued to post healthy
margins in the first half of 2018.

Specialized Services margins are expected to remain high over the full
year and should include Intelenet's margins in the fourth quarter, after
completion of the acquisition, which is scheduled to take place in
September 2018.

OTHER INCOME STATEMENT ITEMS

Consolidated operating profit (EBIT) amounted to €190 million versus
€191 million in first-half 2017. The currency effect had a negative
impact of €16 million.

First-half 2018 EBIT reflects the amortization of intangible assets in
an amount of €41 million, a €12 million accounting expense on
performance share plans and the €3 million impact of other non-recurring
items, which correspond to costs related to the Intelenet acquisition
announced on June 14.

The financial result represented a net expense of €19 million, versus
€25 million in 2017.

Income tax expense amounted to €48 million, corresponding to an
effective tax rate of 27.8%, versus 29.5% in the prior-year period.

Net profit - Group share stood at €123 million for the period, up + 6.0%
from the €116 million reported in first-half 2017. Diluted earnings per
share came to €2.10, up + 6.1% year-on-year.

CASH FLOWS AND FINANCIAL STRUCTURE

Cash flow after interest paid and tax totaled €209 million versus €224
million in first-half 2017. The change in consolidated working capital
requirement during the first half was an inflow of €28 million, versus
€22 million in the prior-year period. This good performance reflects, in
particular, the ongoing policy to improve the Group's liquidity.

Net capital expenditure amounted to €81 million, or 3.9% of revenue,
versus €68 million and 3.3% in first-half 2017. The Group continued to
invest in its future development in terms of both business and margin
growth while maintaining strict financial discipline. It continues to
open new facilities and extend its existing facilities in order to
support its clients in all of their markets (see the "Recent
developments" section).

In all, consolidated net free cash flow came to €156 million versus €178
million in the prior-year period.

Financial investments included transactions with minority shareholders
for €14 million, corresponding to the acquisition of non-controlling
interests in a Specialized Services subsidiary.

After taking into account €112 million in dividends, net debt stood at
€1,308 million at June 30, 2018. The Group's financial structure
therefore remains very solid, with equity of €1,958 million at June 30,
2018.

RECENT DEVELOPMENTS

  • Extensions and new facilities

In the first half of 2018, Teleperformance continued to deploy its
strategy of expanding worldwide by opening new facilities in:

  • the English-speaking market & Asia-Pacific (India and Canada);
  • the Ibero-LATAM region (Mexico and Portugal);
  • the Continental Europe & MEA region (Russia and Poland).

The Group also increased the number of workstations at its existing
facilities, in the English-speaking market & Asia-Pacific region (Canada
and Indonesia), in the Ibero-LATAM region (Argentina, Brazil, Mexico,
Peru, Portugal and Spain), and in Continental Europe & MEA (mainly
Greece, Sweden, Egypt and Dubai).

In all, more than 6,300 new workstations were created during the first
half.

  • Announcement of the Intelenet acquisition*

Teleperformance announced on June 14, 2018 that it had entered into a
definitive agreement to acquire Intelenet, a major provider of high-end
omnichannel customer experience management, back office, human
resources, and financial and administration services. The company has
more than 110 blue chip clients worldwide, mostly in the
English-speaking market, India and the Middle East.

Intelenet's growth momentum is strongly positive. For the fiscal year
ended March 31, 2018, the company posted revenue of US$449 million, up
+ 10% year on year, and EBITDA of US$83 million, representing 18.5% of
revenue versus 17.4% the previous year.

The US$1.0 billion transaction will be fully financed through debt,
including a €750 million bond issue carried out in late June. The
acquisition is expected to close by September 30, 2018, subject to
receipt of certain regulatory approvals and other customary closing
conditions.

OUTLOOK

Teleperformance is raising its full-year 2018 like-for-like revenue
growth objective from "more than + 6%" to "more than + 7.5%".

The Group is also refining its target for EBITA margin before
non-recurring items, which is now expected to be above 13.5% for the
full year at constant scope of consolidation, and expects to continue
generating robust cash flow.

In addition, the Group confirms its revenue and profitability targets
for 2022: revenue of more than €6 billion and EBITA before non-recurring
items of more than €850 million. The Group nonetheless expects to update
its long-term targets on completion of the Intelenet acquisition,
scheduled to take place in September 2018.

-------------------------------------------

DISCLAIMER

All forward-looking statements are based on Teleperformance
management's present expectations of future events and are subject to a
number of factors and uncertainties that could cause actual results to
differ materially from those described in the forward-looking
statements. For a detailed description of these factors and
uncertainties, please refer to the "Risk Factors" section of our
Registration Document, available at
www.teleperformance.com.
Teleperformance undertakes no obligation to publicly update or revise
any of these forward-looking statements.

RESULTS PRESENTATION AND DOCUMENTATION

A conference call and webcast will be held today at 6:30 PM CEST

The webcast will be available live or for delayed viewing at: http://teleperformance.webcast.ldvproduction.com/webcastlist.aspx?eid=155&lngid=en

The half-year financial report and presentation materials will be
available after the conference call on www.teleperformance.com
at: https://www.teleperformance.com/en-us/investor-relations/press-releases-and-documentation/financial-results

INVESTOR CALENDAR

Third-quarter 2018: Monday, November 12, 2018

* The press release announcing the agreement was published on June
14, 2018 and is available from the Teleperformance website (
www.teleperformance.com)

ABOUT TELEPERFORMANCE

Teleperformance (TEP – ISIN: FR0000051807 – Reuters: ROCH.PA –
Bloomberg: TEP FP), the worldwide leader in outsourced omnichannel
customer experience management, serves companies and administrations
around the world, with customer care, technical support, customer
acquisition (Core Services), as well as with online interpreting
solutions, visa application management services, data analysis and debt
collection programs (Specialized Services). In 2017, Teleperformance
reported consolidated revenue of €4,180 million (US$4,720 million, based
on €1 = $1.13).

The Group operates 171,000 computerized workstations, with 223,000
employees across 350 contact centers in 76 countries and serving 160
markets. It manages programs in 265 languages and dialects on behalf of
major international companies operating in a wide variety of industries.

Teleperformance shares are traded on the Euronext Paris market,
Compartment A, and are eligible for the deferred settlement service.
They are included in the following indices: CAC Large 60, CAC Next 20,
CAC Support Services, STOXX 600, SBF 120, S&P Europe 350 and MSCI Global
Standard. They also have been included in the Euronext Vigeo Eurozone
120 index since December 2015, with regard to the Group's performance in
corporate responsibility.

For more information: www.teleperformance.com

Follow us: Twitter @teleperformance

APPENDIX

CONSOLIDATED INCOME STATEMENT

€ millions

        1st ½ yr 2018       1st ½ yr 2017
                 
Revenues       2,070       2,081
Other revenues 3 4
Personnel (1,387) (1,377)
External expenses (353) (369)
Taxes other than income taxes (10) (12)
Depreciation and amortization (77) (83)
Amortization of intang. assets acquired as part of a business
combination
(41) (45)
Share-based payments (12) (8)
Other operating income and expenses (3)
Operating profit 190 191
Income from cash and cash equivalents 2 0
Interest on financial liabilities (27) (32)
Net financing costs (25) (32)
Other financial income and expenses 6 7
Financial result (19) (25)
Profit before taxes 171 166
Income tax (48) (49)
Net profit 123 117
Net profit - Group share 123 116
Net profit (loss) attributable to non-controlling interests 1
Basic earnings per share (in euros) 2,14 2,01
Diluted earnings per share (in euros) 2,10 1,98
 

CONSOLIDATED CASH FLOW STATEMENT

€ millions

Cash flows from operating activities       1st ½ yr 2018       1st ½ yr 2017
                 
Net profit - Group share       123       116
Net profit attributable to non-controlling interests 0 1
Income tax expense (credit) 48 49
Net financial interest expense 16 29
Expense (income) without effect on cash 123 137
Income tax paid (81) (81)
Internally generated funds from operations 229 251
Change in working capital requirements 28 22
Net cash flow from operating activities 257 273
 
Cash flows from investing activities                
                 
Acquisition of intangible assets and property, plant and equipment (82) (68)
Proceeds from disposals of intangible assets and property, plant and
equipment
1
Net cash flow from investing activities (81) (68)
 
Cash flows from financing activities                
                 
Acquisition/disposal of treasury shares 3 (1)
Change in ownership interest in controlled entities (14) (39)
Dividends paid to parent company shareholders (107)
Dividends paid to minority shareholders (5)
Financial interests paid/received (20) (27)
Increase in financial liabilities 798 1,106
Repayment of financial liabilities (758) (1,282)
Net cash flow from financing activities (103) (243)
 
Change in cash and cash equivalents 73 (38)
Effect of exchange rates on cash held       (19)       59
Net cash at January 1st 283 279
Net cash at June 30th       337       300
 

CONSOLIDATED BALANCE SHEET

€ millions

ASSETS       06.30.2018       12.31.2017
                 
Non-current assets            
Goodwill 1,714 1,676
Other intangible assets 927 946
Property, plant and equipment 416 423
Financial assets 45 43
Deferred tax assets 31 28
Total non-current assets 3,133 3,116
Current assets
Current income tax receivable 80 62
Accounts receivable – Trade 890 896
Other current assets 122 93
Other financial assets 37 38
Cash and cash equivalents 340 285
Total current assets 1,469 1,374
Total assets 4,602 4,490
 
EQUITY AND LIABILITIES       06.30.2018       12.31.2017
                 
Shareholders' equity
Share capital 144 144
Share premium 575 575
Translation reserve (134) (165)
Other reserves 1,366 1,356
Equity attributable to owners of the company 1,951 1,910
Non-controlling interests 7 12
Total shareholder's equity 1,958 1,922
Non-current liabilities
Provisions 16 15
Financial liabilities 1,412 1,387
Deferred tax liabilities 224 234
Total non-current liabilities 1,652 1,636
Current liabilities
Provisions 52 52
Current income tax 91 90
Accounts payable – Trade 158 141
Other current liabilities 455 425
Financial liabilities 236 224
Total current liabilities 992 932
Total equity and liabilities 4,602 4,490
 

ALTERNATIVE PERFORMANCE MEASURES

Change in like-for-like revenue:

Change in revenue at constant exchange rates and scope of consolidation,
corresponding to current year revenue - last year revenue at current
year rates - revenue from acquisitions at current year rates / last year
revenue at current year rates.

         
         
H1 2017 revenue       2,081
Currency effect (170)
H1 2017 revenue at constant exchange rates 1,911
Like-for-like growth 158
Change in scope 1
H1 2018 revenue 2,070
 

EBITDA before non-recurring items or current EBITDA (Earnings
before Interest, Taxes, Depreciation and Amortizations):

Operating profit before depreciation & amortization, amortization of
intangible assets acquired as part of a business combination, goodwill
impairment charges and non-recurring items.

        H1 2018       H1 2017
                 
Operating profit       190       191
Depreciation and amortization 77 83
Amortization of intangible assets acquired as part of a business
combination
41 45
Share-based payments 12 8
Other operating income and expenses 3 -
EBITDA before non-recurring items 323 328
 

EBITA before non-recurring items or current EBITA (Earnings
before Interest, Taxes and Amortizations):

Operating profit before amortization of intangible assets acquired as
part of a business combination, goodwill impairment charges and
non-recurring items.

 

      H1 2018       H1 2017
                 
Operating profit       190       191
Amortization of intangible assets acquired as part of a business
combination
41 45
Share-based payment 12 8
Other operating income and expenses 3 -
EBITA before non-recurring items 246 245
 

Non-recurring items:

Principally comprises restructuring costs, incentive share award plan
expense, costs of closure of subsidiary companies, transaction costs for
the acquisition of companies, and all other expenses that are unusual by
reason of their nature or amount.

Net free cash flow:

Cash flow generated by the business - acquisitions of intangible assets
and property, plant and equipment net of disposals - financial
income/expenses.

        H1 2018       H1 2017
                 
Net cash flow from operating activities       257       273
Acquisition of intangible assets and property, plant and equipment (82) (68)
Proceeds from disposals of intangible assets and property, plant and
equipment
1
Financial income/expense (20) (27)
Net cash flow from financing activities 156 178
 

Net debt:

Current and non-current financial liabilities - cash and cash equivalents

        06.30.2018       12.31.2017
                 
Non-current liabilities            
Financial liabilities 1,412 1,387
Current liabilities
Financial liabilities 236 224
Cash and cash equivalents (340) (285)
Endettement net ou dette nette 1,308 1,326
 

Diluted earnings per share:

Net profit attributable to shareholders divided by the number of diluted
shares and adjusted

Diluted earnings per share is determined by adjusting the net profit
attributable to ordinary shareholders and the weighted average number of
ordinary shares outstanding by the effects of all potentially diluting
ordinary shares. These include convertible bonds, stock options and
incentive share awards granted to employees when the required
performance conditions have been met at the end of the financial year.

------------------------------------------

N.B.: The half-year financial
statements at June 30, 2017 and June 30, 2018 have been subject to
review by the auditors.

A glossary of alternative
performance indicators is included in the Appendix

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