ID Logistics Group

Quarterly Report • Sep 15, 2023

Half-year financial report

______

June 30, 2023

This translation is only for the convenience of English-speaking readers. Only the French text has legal value.

ID LOGISTICS GROUP

A French corporation (société anonyme) with capital stock of €3,086,664.00 Head office: 55 chemin des Engrenauds, 13660 Orgon, France. TARASCON TRADE AND COMPANIES REGISTER NO. 439 418 922

Table of contents

1	PERSON RESPONSIBLE 3
	1.1 PERSON RESPONSIBLE FOR THE HALF-YEAR FINANCIAL REPORT 3
	1.2 STATEMENT OF THE PERSON RESPONSIBLE FOR THE DOCUMENT 3
2	HALF-YEAR BUSINESS REPORT 4
3	CONDENSED FINANCIAL STATEMENTS 10
4	STATUTORY AUDITORS' REPORT 22

1 PERSON RESPONSIBLE

1.1 PERSON RESPONSIBLE FOR THE HALF-YEAR FINANCIAL REPORT

Mr. Eric Hémar, Chairman and CEO of ID Logistics Group.

1.2 STATEMENT OF THE PERSON RESPONSIBLE FOR THE DOCUMENT

I hereby certify that, to the best of my knowledge, the condensed consolidated financial statements for the six months ended June 30, 2023 were prepared in accordance with applicable accounting standards and give a fair view of the Company's assets and liabilities, financial position and earnings, as well as those of all of its consolidated companies. I also certify that the attached half-year business report presents a fair statement of key events that occurred during the first six months of the year, the impact thereof on the financial statements and the main related party transactions, as well as a description of the main risks and uncertainties to be faced during the remaining six months of the year.

Orgon, September 15, 2023

Eric Hémar Chairman and CEO

2 HALF-YEAR BUSINESS REPORT

The reader is invited to read the following information concerning the Group's financial position and earnings in conjunction with the condensed consolidated financial statements for the six months ended June 30, 2023 as set out in Chapter 3 "Condensed financial statements" of the half-year financial report.

Given that the figures stated in euro millions in the tables and analyses in this chapter have been rounded, the totals shown do not necessarily equal the sum of the individual rounded figures. Similarly, the sum of the percentages that are based on the rounded figures does not necessarily equal 100%.

In addition to the financial indicators directly presented in the consolidated financial statements, the Group uses a number of alternative performance indicators:

• Like-for-like change in revenues: this reflects the Group's organic growth, excluding the impact of:
• o changes in consolidation scope: the contribution to revenues of companies acquired during the period and companies sold during the previous period is excluded;
  • o changes in the applicable accounting principles;
  • o changes in exchange rates, by calculating revenues for the various periods on the basis of identical exchange rates: published data for the previous period is converted using the exchange rate for the current period.
• Underlying EBITDA: underlying operating income (EBIT) before net depreciation, amortization and impairment of PP&E and intangible assets
• Net borrowings: gross borrowings plus bank overdrafts less cash and cash equivalents
• Net debt: net borrowings plus lease liabilities recognized in application of IFRS 16 Leases

2.1 First half 2023 highlights

• The Group ceased operating in Russia in early January 2023. The comparative information in the consolidated income statement and consolidated statement of cash flows presented in this document has been restated to reflect the classification of ID Logistics Russia under discontinued operations in accordance with IFRS 5 - Non-current assets held for sale and discontinued operations.
• On March 13, 2023, the Group contracted a new loan for €200 million, repayable over four years and maturing in February 2027. On March 15, 2023, this loan was used to fully repay the €202 million bridge loan maturing on August 16, 2023.
• On May 31, 2023, the Group completed the acquisition of a 100% equity stake in Polish-based Spedimex. Founded in 1993, Spedimex is a leading Polish contract logistics operator with recognized expertise in the fashion and e-commerce sectors serving major international and Polish brands, as well as in cosmetics. In addition to contract logistics, Spedimex boasts a solid distribution and transport network and offers value-added logistics services and retail order picking. Spedimex has developed an asset-light model and operates 15 sites across the country spanning a total area of 230,000 sqm. The company has implemented sophisticated automation and technology solutions capable of managing large complex flows, such as ecommerce and store returns covering over 15 European countries for a single customer. Over the past few years, Spedimex has significantly grown its revenues to reach PLN 510 million in 2022. The transaction was paid in cash in the amount of €23.5 million plus the equivalent of €53.9 million in new ID Logistics Group shares issued to Spedimex's former main shareholder and Chairman and CEO.
• On May 31, 2023, Eric Hémar, Chairman and CEO of the ID Logistics group, transferred his 5.0% stake in the Ficopar subholding company to ID Logistics Group via Immod, a company he controls, in exchange for new shares. After this streamlining of the legal structure, ID Logistics Group now holds 100% of its sub-holding company Ficopar.
• ID Logistics set up operations in the United Kingdom, making it the 18th country in which ID Logistics operates. The operation was set up following the Spedimex acquisition in response to a major fashion customer's decision to entrust ID Logistics with the management of e-commerce and store returns from the UK region. The new business activity was launched in June 2023 from an 18,000 sqm warehouse employing 250 people in Northampton, England.

2.2 Consolidated income statement

€m	H1 2023	H1 2022
Revenues	1,288.6	1,168.4
Purchases and external charges	(626.8)	(596.0)
Staff costs	(462.7)	(401.2)
Miscellaneous taxes	(11.5)	(11.5)
Other underlying income (expenses)	1.5	0.5
Net (increases) write-backs to provisions	3.3	3.4
Underlying EBITDA	192.4	163.7
Net depreciation/impairment	(144.5)	(121.5)
EBIT before amortization of acquired customer relations	47.9	42.2
Amortization of acquired customer relations	(2.3)	(1.7)
Non-recurring expenses	-	(2.2)
Net financial items	(21.6)	(10.2)
Corporate income tax	(6.7)	(8.3)
Share of earnings of equity affiliates	0.6	0.7
Net income from continuing operations	17.9	20.4
Net income/(loss) from discontinued operations	0.4	(0.2)
Total consolidated net income	18.3	20.2
Minority interests	1.9	1.9
Group share	16.4	18.3

ID Logistics posted H1 2023 revenues of €1,288.6 million, up 10.3%. This performance incorporates changes in consolidation resulting from the acquisitions of Kane Logistics in the United States (consolidated since April 1, 2022) and Spedimex in Poland (consolidated since June 1, 2023), as well as currency losses over the period. Restated for these effects, first half like-for-like revenue growth came to 4.3%.

In accordance with the definition of alternative performance indicators set out above, the reconciliation between reported and like-for-like revenue data is as follows:

€m	H1 2022	Impact of change in consolidation	Impact of change in exchange rates	Impact of application of IAS 29	Like-for-like change	H1 2023
Revenues	1,168.4	+7.0%	-1.1%	+0.1%	+4.3%	1,288.6

Revenues break down as follows:

€m	H1 2023	H1 2022
International	877.3	745.5
France	411.3	422.9
Total revenues	1,288.6	1,168.4

• International revenues for the first half rose sharply by 17.7% to €877.3 million. As mentioned above, this includes three months of consolidation for Kane Logistics (company acquired in the United States on March 31, 2022) and one month for Spedimex (company acquired in Poland on May 31, 2023). Adjusted for these changes in consolidation scope and first half currency losses, growth was still strong, up 8.3% like-for-like versus H1 2022, a period of strong growth at 21.9%.
• In France, ID Logistics posted H1 2023 revenues of €411.3 million, down 2.7% impacted by the non-renewal of contracts in application of a rigorous and selective risk management policy and a decline in consumption volumes, particularly in the DIY, furniture and decoration sectors, only partly offset by higher prices.

First half 2023 purchases and external charges amounted to €626.8 million, up from €596.0 million in first half 2022 but down from 51.0% to 48.6% as a percentage of revenues. This relative decrease is mainly due to reduced use of temporary staff and other subcontracting services in accordance with the policy of adjusting costs to consumption volumes.

First half 2023 staff costs amounted to €462.7 million, up from €401.2 million in H1 2022. As a percentage of revenues, staff costs rose from 34.3% in H1 2022 to 35.9% in H1 2023. This relative increase is the result of the relative decrease in purchases and external charges mentioned above.

Miscellaneous taxes amounted to 0.9% of revenues, as in 2022.

As in first half 2022, other income and expenses netted out close to zero for the first half of 2023.

Net provision write-backs mainly correspond to expenses recognized under purchases and external charges or staff costs.

As a result of the foregoing items, underlying EBITDA amounted to €192.4 million in first half 2023, up from €163.7 million in first half 2022. Tight management of variable costs amid an uncertain consumer environment and the strong increase in productivity under recently launched contracts led to a significant improvement in the underlying EBITDA margin from 14.0% in H1 2022 to 14.9% in H1 2023.

Net depreciation/impairment came to €144.5 million in H1 2023 compared to €121.5 million in H1 2022. As a percentage of revenues, this item rose from 10.4% in H1 2022 to 11.2% due to the increase in operating capital expenditure over the last few years for operations that are becoming increasingly automated.

The table below shows the impact of these changes on EBIT margins before amortization of customer relations:

€m	H1 2023	H1 2022
International	31.7	25.3
EBIT margin (% revenues)	3.6%	3.4%
France	16.2	16.9
EBIT margin (% revenues)	3.9%	4.0%
Total	47.9	42.2
EBIT margin (% revenues)	3.7%	3.6%

First half 2023 EBIT before amortization of customer relations amounted to €47.9 million, generating an EBIT margin of 3.7%, up 10 bps compared to first half 2022:

• International EBIT rose from €25.3 million in H1 2022 to €31.7 million. The EBIT margin increased by 20 bps to 3.6%, mainly due to the strong increase in productivity on contracts launched in 2021 and early 2022 and tight control of start-up costs in late 2022 and 2023.
• • In France, EBIT dipped €0.7 million to €16.2 million in H1 2023. Thanks to tight management of variable costs in order to adjust to the €11.6 million decrease in revenues for the period, the decline in EBIT margin versus H1 2022 was limited to 10 bps.

As a reminder, ID Logistics' business is seasonal and the first half tends to be less profitable than the second.

Amortization of acquired customer relations increased by €0.6 million from €1.7 million in H1 2022 due to the consolidation of Kane Logistics.

There were no non-recurring expenses in H1 2023. H1 2022 non-recurring expenses comprised costs and fees related to the GVT, Colisweb and Kane Logistics acquisitions.

The Group posted net financial expenses of €21.6 million for first half 2023, up from €10.2 million in first half 2022, consisting of:

• net cost of debt (strictly speaking) amounting to €11.9 million, up from €4.3 million in H1 2022. This increase is mainly due to the interest paid over six months in 2023 instead of three months in 2022 on the €400 million syndicated loan taken out at the end of Q1 2022 to finance the GVT, Colisweb and Kane Logistics acquisitions and, to a lesser extent, the change in consolidation related to operational financing of Kane Logistics consolidated from April 1, 2022;
• other financial items comprising a net expense of €9.7 million, up €3.7 million compared to H1 2022. These mainly included expenses related to IFRS 16 lease liabilities and exchange gains and losses. The increase versus 2022 is mainly due to the increase in the cost of lease liabilities in terms of both interest rates and base.

The tax line item includes a €0.9 million business value-added tax (CVAE) charge for H1 2023, down from €1.8 million in H1 2022 due to the reduction in the CVAE tax rate. Excluding CVAE, the first half 2023 corporate income tax charge amounted to €5.8 million, implying a Group effective tax rate of 25% comparable to that charged in H1 2022.

As in H1 2022, Group share of earnings of equity affiliates was just above break-even in H1 2023.

As a result of the foregoing items, first half 2023 net income from continuing operations amounted to €17.9 million, compared to €20.4 million in the first half of 2022.

As stated above, ID Logistics' operations in Russia, which were discontinued in early 2023, are classified as discontinued operations in accordance with IFRS 5. They represented a net loss of €0.2 million in H1 2022 compared to a net profit of €0.3 million in H1 2023 due to the write-back of unused provisions.

2.3 Consolidated cash flow statement

€m	H1 2023	H1 2022
Net income from continuing operations	17.9	20.4
Net depreciation, impairment and provisions	143.5	119.8
Change in working capital	5.4	(15.1)
Other changes related to operating activities	12.6	8.3
Net cash flow from (used by) operating activities	179.4	133.4
Net cash flow from investing activities	(54.1)	(270.9)
Net financial expenses on financing activities	(11.9)	(4.3)
Net borrowings taken out (repaid)	24.1	256.2
Payment of IFRS 16 lease liabilities	(123.4)	(104.3)
Other changes in financing transactions	(4.7)	(1.8)
Net cash flow from financing activities	(115.9)	145.8
Exchange gains (losses)	1.7	0.9
Change in net cash and cash equivalents	11.1	9.2
Opening net cash and cash equivalents	183.6	156.8
Closing net cash and cash equivalents	194.7	166.0

Net cash flow from operating activities

First half 2023 net cash flow from operating activities amounted to a €179.4 million inflow, up from €133.4 million in H1 2022.

• Before change in working capital, first half 2023 operating cash flow amounted to €174.0 million versus €148.5 million in first half 2022, in line with the increase in underlying EBITDA.
• The first half 2023 change in working capital returned to equilibrium, representing a €5.4 million cash inflow compared to a €15.1 million cash outflow in H1 2022.

Net cash flow from investing activities

First half 2023 net cash flow used by investing activities amounted to a €54.1 million outflow, compared to a €270.9 million outflow in H1 2022. This breaks down as follows:

• in 2022, a total payment of €247.7 million net of cash acquired for the acquisitions of French-based Colisweb (€18.8 million) and US-based Kane Logistics (€226.7 million), plus the associated fees (€2.2 million);
• in 2023, acquisition payments net of cash acquired amounted to €15.6 million for the cash portion of the payment for the Spedimex acquisition in Poland and a €6.7 million earnout payment for Colisweb in view of the subsidiary's performance in 2022;
• adjusted for acquisitions of subsidiaries, first half 2023 net operating capital expenditure amounted to €31.8 million, up from €23.2 million in H1 2022. This expenditure mainly relates to new contract launches and increased compared to first half 2022, when expenditure was cut back after the extensive post-COVID investments incurred in 2021.

Net cash flow from financing activities

Total first half 2023 net cash flow from financing activities represented a €115.9 million outflow compared to a €145.8 million inflow in first half 2022.

• The net change in borrowings represented a €24.1 million net increase in cash and cash equivalents in H1 2023 compared to a €256.2 million net increase over the same period in 2022:
• o In Q1 2022, ID Logistics took out a €400.0 million syndicated loan (comprising a €200 million loan repayable over five years and a €200 million bridge loan repayable no later than March 2024) to finance the aforementioned acquisitions and refinance the balance of the existing syndicated loan for a total of €132.5 million;
• o In H1 2023, ID Logistics refinanced the aforementioned €200 million bridge loan via a new loan repayable over four years and maturing in 2027;
• o In Q2 2023, ID Logistics used the €65.0 million available total under the revolving credit facility to finance the Spedimex acquisition and Colisweb earnout payment;
• o Other changes in net borrowings comprised net repayments totaling €18.6 million in H1 2023 compared to net repayments of €10.6 million in H1 2022;
• Payments of IFRS 16 lease liabilities (rental payments) amounted to €123.4 million in first half 2023 compared to €104.3 million in first half 2022, in line with the upswing in business;
• Other changes related to financing transactions include treasury stock transactions under the Group's liquidity contract and share buybacks intended to cover share allotment plans.

After accounting for all of these factors and exchange gains and losses, Group net cash increased by €11.1 million to €194.7 million during the first half of 2023, comparable to the €9.2 million increase recorded in H1 2022.

2.4 Consolidated balance sheet

€m	6/30/2023	12/31/2022
Goodwill	542.7	471.5
Right-of-use assets (IFRS 16)	756.4	720.8
Other non-current assets	285.3	289.1
Non-current assets	1,584.4	1,481.4
Trade receivables	478.1	467.2
Trade payables	(361.3)	(347.5)
Tax and social security payables	(259.6)	(250.7)
Other net receivables (payables) and provisions	39.2	16.7
Working capital	(103.6)	(114.3)
Net borrowings	324.4	309.8
Lease liabilities (IFRS 16)	766.4	732.2
Net debt	1,090.8	1,042.0
Net liability from discontinued operations	-	0.4
Shareholders' equity, Group share	386.5	307.9
Minority interests	3.5	16.8
Shareholders' equity	390.0	324.7

Non-current assets rose €103.0 million compared to December 31, 2022:

• goodwill increased by €71.2 million, mainly due to the Spedimex acquisition which generated goodwill of €74.9 million;

• right-of-use assets (lease commitments capitalized in application of IFRS 16) increased by €35.6 million, including €27.9 million due to the consolidation of Spedimex;

• other non-current assets were broadly stable at €285.3 million.

The Group posted negative net working capital of €103.6 million as of June 30, 2023, down €10.7 million from December 31, 2022 and slightly penalized by the consolidation of Spedimex.

Group net borrowings break down as follows:

€m	6/30/2023	12/31/2022
Syndicated loan	445.0	402.1
Other borrowings	74.1	91.3
Gross borrowings	519.1	493.4
Net cash and cash equivalents	194.7	183.6
Net borrowings	324.4	309.8

As stated above, net borrowings have increased by €14.6 million since December 31, 2022, mainly due to the use of the €65.0 million available total under the revolving credit facility, partly offset by repayments under the syndicated loan and other borrowings coupled with strong operating cash generation during the period.

The new syndicated loan is subject to the following covenant: as of June 30, 2023, net borrowings over underlying EBITDA must be less than 3.5, before application of IFRS 16 and on a consolidated basis. With a ratio of 1.8 at June 30, 2023, this covenant was in compliance.

Shareholders' equity amounted to €324.4 million, an increase over December 31, 2022. In addition to net income for the period, the increase also results from the issuance of new ID Logistics Group shares amounting to €53.9 million reserved for the Spedimex majority shareholder and vendor in respect of the share-based portion of the Spedimex purchase price.

Recent developments and outlook

Seasonal factors

Although Group revenues are not subject to major seasonal fluctuations, second half revenues tend to be slightly higher than first half revenues in view of the Group's customer typology and growth profile, and excluding the impact of major discontinued operations.

However, first half revenues tend to be more volatile in terms of volumes with larger swings between business peaks and lows than in the second half. This volatility is reflected in lower operational productivity, and first half EBIT is generally lower than in the second half.

• Impact of new contract start-ups
• Seasonal variations may be impacted by new contracts, which tend to generate losses in the first year of operation.

2.5 Main risks and uncertainties

The Group's main risks as specified under Chapter 2 of the Universal Registration Document filed with the Autorité des Marchés Financiers (French financial markets authority) on April 27, 2023 had not materially changed at June 30, 2023.

* * *

3 CONDENSED FINANCIAL STATEMENTS

The comparative information in the consolidated income statement and consolidated statement of cash flows presented in this document has been restated to reflect the classification of ID Logistics Russia under discontinued operations in accordance with IFRS 5 - Non-current assets held for sale and discontinued operations. These restatements are described in Note 18.

CONSOLIDATED INCOME STATEMENT

€000	Notes	H1 2023	H1 2022
Revenues		1,288,644	1,168,384
Purchases and external charges		(626,840)	(595,966)
Staff costs		(462,676)	(401,213)
Miscellaneous taxes		(11,573)	(11,481)
Other underlying income (expenses)		1,516	525
Net (increases) write-backs to provisions		3,292	3,417
Net depreciation/impairment		(144,510)	(121,482)
EBIT before amortization of customer relations		47,853	42,184
Amortization of acquired customer relations		(2,274)	(1,738)
Non-recurring income (expenses)	Note 10	-	(2,213)
Operating income		45,579	38,233
Financial income	Note 11	3,555	775
Financial expenses	Note 11	(25,131)	(11,016)
Group earnings before tax		24,003	27,992
Corporate income tax	Note 12	(6,708)	(8,275)
Share of earnings of equity affiliates		590	703
Net income from continuing operations		17,885	20,420
Net income/(loss) from discontinued operations		351	(174)
Total consolidated net income		18,236	20,246
Minority interests		1,860	1,955
Group share		16,376	18,291
Earnings per share, Group share
Basic EPS (€)	Note 13	2.85	3.22
Diluted EPS (€)	Note 13	2.68	3.03
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
€000		H1 2023	H1 2022
Total consolidated net income		18,236	20,246
Post-tax pension provision discounting income (charge)		(29)	532
Other comprehensive income not reclassified to the income statement		(29)	532
Post-tax exchange differences		(3,447)	15,188
Other post-tax items		2,057	1,920
Other comprehensive income that may be reclassified to the income statement, net of tax		(1,390)	17,108
Comprehensive net income		16,817	37,886
Minority interests		(113)	2,786
Group share		16,929	35,100

CONSOLIDATED BALANCE SHEET

€000	Notes	6/30/2023	12/31/2022
Goodwill	Note 1	542,733	471,499
Intangible assets	Note 1	50,123	53,794
Property, plant and equipment	Note 2	195,912	196,226
Right-of-use assets - IFRS 16	Note 9	756,379	720,810
Investments in equity affiliates		3,178	2,588
Other non-current financial assets		17,836	17,224
Deferred tax assets		18,271	19,224
Non-current assets		1,584,432	1,481,365
Inventories		1,583	1,718
Trade receivables	Note 3	478,148	467,157
Other receivables	Note 3	107,766	79,307
Other current financial assets		37,979	45,589
Cash and cash equivalents	Note 4	194,902	183,643
Current assets		820,378	777,414
Assets - discontinued operations			7,822
Total assets		2,404,810	2,266,601
Capital stock	Note 5	3,087	2,843
Additional paid-in capital	Note 5	193,685	57,241
Exchange differences		(6,422)	(4,948)
Consolidated reserves		179,737	214,501
Net income for the year		16,376	38,221
Shareholders' equity, Group share		386,463	307,858
Minority interests		3,539	16,795
Shareholders' equity		390,002	324,653
Borrowings (due in over 1 yr)	Note 6	373,471	228,743
Lease liabilities (due in over 1 yr) - IFRS 16	Note 9	541,156	477,218
Long-term provisions	Note 7	16,100	15,397
Deferred tax liabilities		3,862	4,987
Non-current liabilities		934,589	726,345
Short-term provisions	Note 7	31,141	34,202
Borrowings (due in less than 1 yr)	Note 6	145,581	264,659
Lease liabilities (due in less than 1 yr) - IFRS 16	Note 9	225,251	254,944
Bank overdrafts	Note 4	209	-
Trade payables	Note 8	361,308	347,458
Other payables	Note 8	316,729	306,148
Current liabilities		1,080,219	1,207,411
Liabilities - discontinued operations			8,192
Total liabilities and shareholders' equity		2,404,810	2,266,601

CONSOLIDATED STATEMENT OF CASH FLOWS

€000	Note	H1 2023	H1 2022
Net income from continuing operations		17,885	20,420
Net depreciation, impairment and provisions		143,492	119,801
Share of undistributed earnings of equity affiliates		(590)	(703)
Other non-cash items		904	(468)
Change in working capital		5,399	(15,127)
Corporate income tax	Note 12	6,708	8,276
Acquisition costs		-	2,213
Net financial expenses on financing activities	Note 11	21,740	9,488
Tax paid		(16,180)	(10,454)
Net cash flow from operating activities		179,358	133,446
Purchase of intangible assets and PP&E	Notes 1-2	(33,366)	(30,340)
Purchase of subsidiaries net of cash acquired		(22,314)	(245,466)
Acquisition costs		-	(2,213)
Sale of intangible assets and PP&E		1,563	7,079
Net cash flow from investing activities		(54,117)	(270,940)
Net financial expenses on financing activities	Note 11	(11,902)	(4,274)
Loans received		282,814	416,820
Loan repayments		(258,691)	(160,704)
Payment of IFRS 16 lease liabilities		(123,421)	(104,282)
Treasury stock transactions		(4,722)	(1,783)
Minority interest dividends		-	-
Net cash flow from financing activities		(115,922)	145,777
Exchange gains (losses)		1,731	910
Change in net cash and cash equivalents		11,050	9,193
Opening net cash and cash equivalents	Note 4	183,643	156,805
Closing net cash and cash equivalents	Note 4	194,693	165,998

CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY

€000	Capital stock	Additional paid-in capital	Consolidation reserves	Exchange differences	Shareholders' equity, Group share	Minority interests	Total consolidated shareholders' equity
January 1, 2022	2,837	57,241	208,234	(14,330)	253,982	13,281	267,263
H1 2021 net income	-	-	18,291	-	18,291	1,955	20,246
Gains and losses posted to shareholders' equity	-	-	2,381	14,429	16,810	830	17,640
Treasury shares	-	-	(1,783)	-	(1,783)	-	(1,783)
Share issue	6	-	(6)	-	-	-	-
June 30, 2022	2,843	57,241	227,117	99	287,300	16,066	303,366
Net income for the year	-	-	19,930	-	19,930	1,561	21,491
Exchange differences	-	-	-	(5,047)	(5,047)	(267)	(5,314)
Other items of comprehensive income	-	-	7,384	-	7,384	331	7,715
Distribution of dividends	-	-	-	-	-	(896)	(896)
Treasury shares	-	-	(1,709)	-	(1,709)	-	(1,709)
December 31, 2022	2,843	57,241	252,722	(4,948)	307,858	16,795	324,653
Net income for the year	-	-	16,376	-	16,376	1,860	18,236
Exchange differences	-	-	-	(1,474)	(1,474)	(1,972)	(3,446)
Other items of comprehensive income	-	-	2,026	-	2,026	-	2,026
Treasury shares	-	-	(4,722)	-	(4,722)	-	(4,722)
Share issue	244	136,444	(70,289)	-	66,399	(13,144)	53,255
June 30, 2023	3,087	193,685	196,113	(6,422)	386,463	3,539	390,002

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1 GENERAL INFORMATION

ID Logistics Group SA is a société anonyme (French corporation) subject to French law with head office located at 55 chemin des Engranauds, Orgon (13660), France. ID Logistics Group SA and its subsidiaries (hereinafter the "Group") operate a logistics business in France and around ten other countries.

The Group consolidated financial statements for the six months ended June 30, 2023 were approved by the Board of Directors on August 30, 2023. Unless otherwise indicated, they are presented in thousands of euros.

2 BASIS FOR THE PREPARATION AND PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS

2.1 Interim financial statements

Pursuant to European Regulation 1606-2002, the ID Logistics Group condensed consolidated interim financial statements for the six months ended June 30, 2023 were prepared in accordance with IAS 34 – Interim financial reporting. Since these financial statements are condensed, they do not contain all disclosures required under IFRS and should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2022 available online at id-logistics.com.

The accounting principles adopted for the preparation of the condensed consolidated interim financial statements comply with the IFRS standards and interpretations adopted by the European Union as of June 30, 2023, which may be viewed on the website: https://ec.europa.eu/info/index_en

These accounting principles are consistent with those used for the preparation of the annual consolidated financial statements for the year ended December 31, 2022, which are presented in Note 2 to the 2022 consolidated financial statements, except for the items presented in paragraph 2.2 below – Change in accounting principles.

The valuation methods specific to the condensed consolidated interim financial statements are as follows:

• The interim period tax charge results from the estimated annual Group effective rate applied to pre-tax interim earnings excluding material non-recurring items. This estimated annual effective rate takes into consideration, in particular, the expected impact of tax planning transactions. The tax charge relating to any non-recurring items of the period is accrued using its specific applicable taxation;

• Stock-based compensation and staff benefit costs are recorded for the period in proportion to their estimated annual costs.

2.2 Change in accounting principles

2.2.1 New compulsory standards, amendments and interpretations adopted by the European Union for fiscal 2023

The application of standards, amendments and interpretations applicable from January 1, 2023 had no material impact on the Group financial statements.

2.2.2 New standards, amendments and interpretations not compulsory for fiscal 2023

There are no new standards, amendments or interpretations published but not yet compulsory that could have a material impact on the Group financial statements.

3 HIGHLIGHTS

• On March 13, 2023, the Group contracted a new loan for €200 million, repayable over four years and maturing in February 2027. On March 15, 2023, this loan was used to fully repay the €202 million bridge loan maturing on August 16, 2023.
• On May 31, 2023, the Group completed the acquisition of a 100% equity stake in Polish-based Spedimex.

Founded in 1993, Spedimex is a leading Polish contract logistics operator with recognized expertise in the fashion and e-commerce sectors serving major international and Polish brands, as well as in cosmetics. In addition to contract logistics, Spedimex boasts a solid distribution and transport network and offers value-added logistics services and retail order picking. Spedimex has developed an asset-light model and operates 15 sites across the country spanning a total area of 230,000 sqm. The company has implemented sophisticated automation and technology solutions capable of managing large complex flows, such as e-commerce and store returns covering over 15 European countries for a single customer. Over the past few years, Spedimex has significantly grown its revenues to reach PLN 510 million revenues and PLN 41 million net income in 2022. For the first half of 2023, Spedimex contributed €8.7 million to Group revenues and €1 million to Group EBITDA. Company's revenues are €57 million for the first half of 2023 with an EBITDA of €7 million.

The acquisition transaction was paid in cash in the amount of €23.5 million plus the equivalent of €53.9 million in new ID Logistics Group shares issued to Marcin Bąk, Spedimex's former main shareholder and Chairman and CEO.

The following table shows the details of the provisional purchase price allocation for this acquisition:

Right-of-use assets (IFRS 16)	27,935
Non-current assets (fixed assets)	2,312
Working capital	(2,368)
Provisions	(2,100)
Cash	7,929
Borrowings	(61)
Lease liabilities - IFRS 16	(27,935)
Total revalued net assets	5,712
Investment purchase price	80,582
Goodwill	74,870

The investment purchase price shown in the statement of cash flows is €15.6 million, which corresponds to the €23.5 million price actually paid to date less acquired cash and cash equivalents totaling €7.9 million.

• Also on May 31, 2023, Eric Hémar, Chairman and CEO of the ID Logistics group, transferred his 5.0% stake in the Ficopar sub-holding company to ID Logistics Group via Immod, a company he controls, in exchange for new shares. After this streamlining of the legal structure, ID Logistics Group now holds 100% of its sub-holding company Ficopar.
• Following the acquisition of Spedimex, a major fashion customer decided to entrust ID Logistics with the management of e-commerce and store returns from the UK region. The new business activity was launched in June 2023 from an 18,000 sqm warehouse employing 250 people in Northampton, England. The United Kingdom is now the 18th country in which ID Logistics operates.
• Regarding the conflict in Ukraine, the Group ceased operating in Russia in early January 2023.

4 SEGMENT INFORMATION

Pursuant to IFRS 8 – Operating segments, the information below for each operating segment is identical to that presented to the chief operational decision-maker for purposes of deciding on the allocation of resources to the segment and assessing its performance.

An operating segment is a distinct component of the Group:

• that engages in business activities from which it may earn revenues and incur expenses,
• whose operating results are reviewed regularly by the entity's chief operational decision-maker in order to make
• decisions about resources to be allocated to the segment and assess its performance, and
• for which discrete financial information is available.

The Group's chief operational decision-maker has been identified as the Chairman and CEO and the Deputy CEO, who jointly take strategic decisions.

The Group's two operating segments are France and International, determined in accordance with IFRS 8.

The France segment is made up of subsidiaries with head offices in continental France.

The International segment is made up of subsidiaries whose head offices are located outside continental France.

Fixed assets are operating assets used by a segment for operational purposes. They include goodwill, intangible assets and property, plant and equipment. They do not include current assets used for operational purposes, deferred tax assets/liabilities or non-current financial assets.

Segment information, as presented to the chief decision-makers relating to continuing operations, is as follows:

	H1 2023 (6/30/2023)		H1 2022 (6/30/2022)
	France	International	Total	France	International	Total
Revenues	411,275	877,369	1,288,644	422,902	745,482	1,168,384
Underlying EBITDA (1)	61,630	130,733	192,363	61,176	102,490	163,666
EBIT before amortization of customer relations	16,171	31,682	47,853	16,866	25,318	42,184
Operating income	16,171	29,408	45,579	16,616	21,617	38,233
Net cash flow from operating activities	49,964	129,966	179,930	37,910	95,536	133,446
Operating capex (2)	4,204	29,162	33,366	5,738	24,602	30,340
Fixed assets	319,124	1,226,023	1,545,147	364,045	1,024,802	1,388,847
o/w Right-of-use assets under IFRS 16	144,725	611,654	756,379	176,897	485,646	662,543

Headcount	7,349	19,724	27,073	7,448	17,370	24,818

• (1) Underlying EBITDA corresponds to underlying operating income (EBIT) before net depreciation, amortization and impairment of PP&E and intangible assets.
• (2) Operating capital expenditure corresponds to acquisitions of intangible assets and property, plant and equipment, excluding acquisitions of subsidiaries.

A segment may comprise several countries if they share the same management, teams and customers and if performance is measured, not at country level, but at the level of a set of countries overseen by a single senior management team. This is notably the case for the Iberian Peninsula, which includes Spain and Portugal, and Benelux, which includes Belgium and the Netherlands.

In the International segment, Benelux, the USA and the Iberian Peninsula each account for over 10% of Group revenues. Revenues and underlying EBITDA amounted respectively to €146 million and €26 million (Benelux), €181 million and €33 million (USA) and €200 million and €24 million (Iberian Peninsula).

5 NOTES RELATING TO THE BALANCE SHEET, INCOME STATEMENT AND STATEMENT OF CASH FLOWS AND CHANGES THERETO

5.1 Balance sheet notes

Note 1: Goodwill and intangible assets

	Goodwill	Software	Customer relations & other	TOTAL
Gross:
January 1, 2023	471,955	51,124	45,279	568,358
Acquisitions	-	1,050	900	1,950
Disposals	-	(1,070)	-	(1,070)
Change in consolidation	74,870	18	-	74,888
Reclassification	-	-	-	-
Exchange gains (losses)	(3,636)	149	(387)	(3,874)
June 30, 2023	543,189	51,271	45,792	640,252
Cumulative amortization and impairment
January 1, 2023	456	41,497	1,112	43,065
Amortization charge		2,854	2,377	5,231
Impairment				-
Disposals		(1,060)		(1,060)
Reclassification				-
Exchange gains (losses)		192	(29)	163
June 30, 2023	456	43,480	3,460	47,396
Net:
June 30, 2023	542,733	7,791	42,332	592,856

The net book value of goodwill, customer relations, other intangible assets and investments in equity affiliates is reviewed at least once a year and when events or circumstances indicate that a loss in value may have taken place. Such events or circumstances are related to material adverse changes of a permanent nature that impact either the economic environment or the assumptions or objectives adopted as of the date of acquisition. An impairment charge is recorded when the recoverable value of the assets tested falls permanently below their net book value.

As of June 30, 2023, the Group reviewed the impairment indicators that could lead to a reduction in the net book value of goodwill and investments in equity affiliates. Based on this approach, there is no need to record impairment charges as of June 30, 2023.

The Group has updated the accounting recognition of goodwill on the March 2022 acquisition of US-based Harkness Capital (Kane Logistics group parent company). The final allocation is as follows:

Right-of-use assets (IFRS 16)	82,488
Customer relations amortized over 6 years	22,046
Non-current assets (fixed assets)	11,714
Working capital	(541)
Provisions	(20,155)
Cash	1,728
Deferred tax	3,376
Borrowings	(32)

Lease liabilities - IFRS 16	(82,488)
Total revalued net assets	18,136
Investment purchase price	228,428
Goodwill	210,292

Note 2: Property, plant and equipment

	Land and buildings	Plant and equipment	Other fixed assets	Fixed assets in progress	TOTAL
Gross
January 1, 2023	39,527	167,206	143,211	24,040	373,984
Acquisitions	3,241	6,350	6,265	15,560	31,416
Disposals	(2,504)	(3,892)	(2,800)	(18)	(9,214)
Exchange gains (losses)	1,173	(1,718)	915	(31)	339
Change in consolidation	105	1,303	4,762	124	2,294
Reclassification	595	23,745	(9,350)	(17,757)	(2,767)
June 30, 2023	42,137	192,994	139,003	21,918	396,052
Cumulative depreciation and impairment
January 1, 2023	20,002	82,605	75,151	-	177,758
Depreciation charge	2,265	11,515	12,902	-	26,682
Impairment	-	-	-	-	-
Disposals	(1,406)	(3,060)	(2,146)	-	(6,612)
Exchange gains (losses)	470	(1,588)	524	-	(594)
Reclassification	107	4,621	(1,822)	-	2,906
June 30, 2023	21,438	94,093	84,609	-	200,140
Net:
June 30, 2023	20,699	98,901	54,394	21,918	195,912

Note 3: Trade and other current receivables

	6/30/2023	12/31/2022
Trade receivables	483,950	471,592
Impairment provisions	(5,802)	(4,435)
Total trade receivables – net	478,148	467,157
Tax and social security receivables	60,951	54,539
Prepaid expenses	46,815	24,768
Total other receivables - net	107,766	79,307

Note 4: Net cash and cash equivalents

	6/30/2023	12/31/2022
Cash and cash equivalents	194,902	183,643
Bank overdrafts	(209)	-
Net cash and cash equivalents	194,693	183,643

Group cash and cash equivalents of €194,693,000 at June 30, 2023 comprise cash, sight bank deposits and €10,520,000 in money-market investments.

Note 5: Issued capital stock and additional paid-in capital

	Additional paid-in capital (€)	Value (€)	Number of shares
January 1, 2023	57,240,985	2,843,080	5,686,159
Share issue 5/31/2023	83,284,806	147,710	295,420
Share issue 5/31/2023	53,158,903	95,874	191,749
June 30, 2023	193,684,694	3,086,664	6,173,328

Share issues completed during the year are disclosed in section 3 "Highlights".

Note 6: Financial liabilities

	6/30/2023	Due in < 1 year	Due in 1 to 5 years	Due in > 5 years
Current borrowings
Bank loans	141,499	141,499
Factoring	4,005	4,005
Other borrowings	77	77
Total current borrowings	145,581	145,581
Non-current borrowings
Bank loans	373,471		371,655	1,816
Total non-current borrowings	373,471		371,655	1,816
Total borrowings	519,052	145,581	371,655	1,816

On February 16, 2022, the Group signed financing arrangements totaling €465 million, including a €200 million loan repayable over 5 years, a €200 million bridge loan with a maximum term of 2 years to be refinanced by instruments such as private placements, and a €65 million revolving credit facility with a maximum term of 7 years (used during the period).

On March 13, 2023, the Group contracted a new loan for €200 million, repayable over four years and maturing in February 2027. On March 15, 2023, this loan was used to fully repay the €202 million bridge loan maturing on August 16, 2023.

Current liabilities include the €65 million revolving credit facility, which matures in less than one year but may be renewed by the Group until February 2027.

These loans are subject to the following bank covenant at June 30, 2023:

Ratio	Definition	Calculation	Limit
Leverage	Net borrowings/underlying EBITDA before application of IFRS 16	1.8	< 3.5

This ratio was in compliance at June 30, 2023.

Note 7: Provisions

	Social security and tax risks	Operating risks	Employee benefits	Total
January 1, 2023	8,020	26,182	15,397	49,599
Charges	648	410	703	1,761
Write-backs used	(435)	(4,858)	-	(5,293)
Write-backs not used	(111)	(543)	-	(654)
Other (consolidation, currency, reclassification etc.)	76	1,752	-	1,828
June 30, 2023	8,198	22,943	16,100	47,241
o/w current provisions	8,198	22,943	-	31,141
o/w non-current provisions	-	-	16,100	16,100

The provisions for operating risks primarily relate to disputes with customers, lessors, etc.

Note 8: Trade and other payables

	6/30/2023	12/31/2022
Trade payables	361,308	347,458
Tax and social security payables	259,600	250,660
Advances and down payments received	18,020	13,763
Other current payables	19,600	23,232
Deferred income	19,509	18,493
Total other payables	316,729	306,148

Trade and other payables all fall due in less than one year except for some deferred income which is amortized over the term of the customer contracts.

Note 9: Right-of-use assets and lease liabilities

The change and breakdown of right-of-use assets over the period is as follows:

	Buildings	Plant and equipment	Other fixed assets	TOTAL
Gross:
January 1, 2023	898,576	73,336	176,052	1,147,964
Acquisitions	88,414	22,572	12,219	123,205
Disposals	(16,501)	(3,252)	(8,642)	(28,395)
Change in consolidation	25,328	2,331	276	27,935
Exchange gains (losses) and reclassification	27,087	(9,246)	(10,397)	7,444
June 30, 2023	1,022,904	85,741	169,508	1,278,153
Cumulative depreciation and impairment:
January 1, 2023	328,148	10,867	88,140	427,155
Depreciation charge	87,589	9,336	17,946	114,871
Disposals	(12,621)	(1,570)	(8,701)	(22,892)
Exchange gains (losses) and reclassification	1,813	10,330	(9,503)	2,640
June 30, 2023	404,929	28,963	87,882	521,774
Net:
June 30, 2023	617,975	56,778	81,626	756,379

Changes in lease liabilities are as follows:

	1/1/2023	New borrowings	Repayments	Scope	Exchange differences	6/30/2023
Lease liabilities	732,162	123,111	(121,768)	27,935	4,967	766,407
Total	732,162	123,111	(121,768)	27,935	4,967	766,407
o/w lease liabilities (due in < 1 yr)						225,251
o/w lease liabilities (due in 1-5 yrs)						449,035
o/w lease liabilities (due in > 5 yrs)						92,121

Other non-current assets mainly consist of vehicles (trucks and wagons) and handling equipment (forklifts).

5.2 Income statement notes

Note 10: Non-recurring income (expenses)

Non-recurring income and expenses are broken down as follows:

	H1 2023	H1 2022
Costs on acquisitions of equity investments	-	(2,213)
Total non-recurring expenses	-	(2,213)

Note 11: Net financial items

	H1 2023	H1 2022
Interest and related financial income	2,841	777
Interest and related financial expenses	(14,743)	(5,051)
Net financial expenses on financing activities	(11,902)	(4,274)
Discounting of balance sheet accounts	(149)	(464)
Other financial expenses	313	(289)
Interest expenses - IFRS 16	(9,838)	(5,214)
Net other financial expenses	(9,674)	(5,967)
Total	(21,576)	(10,241)

Interest and related financial expenses are related to borrowings (mainly bank borrowings and overdraft facilities). Other net financial expenses are mainly related to lease liabilities.

Note 12: Corporate income tax

	H1 2023	H1 2022
Net current tax (charge)/income	(5,759)	(6,442)
Tax on business value added (CVAE)	(949)	(1,833)
Total	(6,708)	(8,275)

Note 13: Earnings per share

The average number of shares during the period was as follows:

(no.)	H1 2023	H1 2022
Average number of shares in issue	5,767,354	5,677,966
Average number of treasury shares	(19,580)	(4,217)
Average number of shares	5,747,774	5,673,749
Average number of equity warrants and bonus shares awarded	363,094	357,142
Average number of diluted shares	6,110,868	6,030,891

5.3 Other information

Note 14: Transactions with related parties

Transactions conducted between the Group and affiliated companies on an arm's length basis were as follows:

Company	Type of Transaction relationship type		Income (expense)		Balance sheet asset (liability)
			2023	2022	2023	2022
Comète	Joint director	Services provided	(450)	(418)	(693)	(583)
Financière ID	Joint shareholder	Real estate leases - Services provided	250	2,489	-	241
SAS Logistics II	Joint shareholder	Services provided	(5)	(49)	(16)	(57)

Transactions with equity affiliates, which are concluded on an arm's length basis, related to ongoing administrative services and in total are not material in relation to the Group's business.

Note 15: Directors' remuneration

The Chairman of the Board of Directors does not receive any remuneration from the Group. He receives remuneration from Comète, in which he holds a 100% equity stake together with his family, and which has signed services agreements with various Group subsidiaries. The services specified in these agreements include management related to strategy and business development.

The amounts of the aforementioned services are specified under Note 14.

Gross remuneration awarded to other Board members:

	H1 2023	H1 2022
Expense type
Total gross remuneration *	390	398
Post-employment benefits	-	-
Other long-term benefits	-	-
Severance pay	-	-

Note 16: Off-balance sheet commitments and contingencies

The Group's signed off-balance sheet commitments at the balance sheet date were as follows:

	6/30/2023	12/31/2022
Commitments given
Parent company guarantees *	27,914	23,033
Commitments received
Bank guarantees	23,507	22,272
* The parent company guarantees above do not include guarantees given for leasing commitments or for debt with covenants, which are described

Note 17: Post balance sheet events

on the corresponding lines.

None

Note 18: IFRS 5 restatement of consolidated financial statements

The Group has ceased operating in Russia, as the last operated warehouse closed on January 3, 2023.

As Russia was a separate major geographical region, ID Logistics Russia is considered as a discontinued operation under IFRS 5.

First half 2022 net income was reclassified under discontinued operations in the 2022 consolidated income statement and 2022 cash flows were eliminated from the statement of cash flows.

The impacts of the IFRS 5 restatement on the 2022 consolidated income statement are as follows:

	2022 reported	2022 Russia	2022 restated
Revenues	1,180,561	12,177	1,168,384
Purchases and external charges	(601,525)	(5,559)	(595,966)
Staff costs	(406,202)	(4,989)	(401,213)
Miscellaneous taxes	(11,482)	(1)	(11,481)
Other underlying income (expenses)	525	-	525
Net (increases) write-backs to provisions	3,352	(65)	3,417
Net depreciation/impairment	(122,911)	(1,429)	(121,482)
EBIT before amortization of customer relations	42,318	134	42,184
Amortization of acquired customer relations	(1,738)	-	(1,738)
Non-recurring income (expenses)	(2,213)	-	(2,213)
Operating income	38,367	134	38,233
Financial income	778	3	775
Financial expenses	(11,351)	(335)	(11,016)
Group earnings before tax	27,794	(198)	27,992
Corporate income tax	(8,251)	24	(8,275)
Share of earnings of equity affiliates	703	-	703
Net income from continuing operations	20,246	(174)	20,420
Net income/(loss) from discontinued operations	-	174	(174)
Total consolidated net income	20,246	-	20,246

The impacts of the IFRS 5 restatement on the 2022 consolidated statement of cash flows are as follows:

€000	2022 reported	2022 Russia	2022 restated
Net income from operations	20,246	(174)	20,420
Net depreciation, impairment and provisions	121,296	1,495	119,801
Share of undistributed earnings of equity affiliates	(703)	-	(703)
Other non-cash items	(467)	1	(468)
Change in working capital	(15,798)	(671)	(15,127)
Corporate income tax	8,251	(25)	8,276
Acquisition costs	2,213	-	2,213
Net financial expenses on financing activities	9,806	318	9,488
Tax paid	(10,557)	(103)	(10,454)
Net cash flow from operating activities	134,287	841	133,446
Purchase of intangible assets and PP&E	(30,388)	(48)	(30,340)

Purchase of subsidiaries net of cash acquired	(245,466)	-	(245,466)
Acquisition costs	(2,213)	-	(2,213)
Sale of intangible assets and PP&E	7,079	-	7,079
Net cash flow from investing activities	(270,988)	(48)	(270,940)
Net financial expenses on financing activities	(4,397)	(123)	(4,274)
Net loans received	417,634	814	416,820
Loan repayments	(160,713)	(9)	(160,704)
Lease liability repayments	(105,637)	(1,355)	(104,282)
(Purchase) sale of treasury shares	(1,783)	-	(1,783)
Minority interest dividends distributed by subsidiaries	-	-	-
Share issue	-	-	-
Net cash flow from financing activities	145,104	(673)	145,777
Exchange gains (losses)	1,050	140	910
Change in net cash and cash equivalents	9,453	260	9,193
Opening net cash and cash equivalents	156,963	158	156,805
Closing net cash and cash equivalents	166,416	418	165,998

* * *

4 STATUTORY AUDITORS' REPORT

"To the Shareholders of ID Logistics Group,

Pursuant to our engagement by the shareholders' general meeting and Article L. 451-1-2 III of the French Monetary and Financial Code, we have:

• performed a limited review of the condensed consolidated interim financial statements of ID LOGISTICS GROUP covering the period from January 1 to June 30, 2023, as enclosed hereto, and

• verified the information given in the half-year business report.

The condensed consolidated interim financial statements have been prepared under the responsibility of your Board of Directors. Our responsibility is to express our opinion on these financial statements on the basis of our limited review.

I – Opinion on the financial statements

We have conducted our limited review in accordance with professional standards applicable in France. A limited review consists primarily of making inquiries of the members of the management responsible for accounting and financial matters and applying analytical procedures. The work is of limited scope compared to the work required for an audit performed in accordance with auditing standards applicable in France. Accordingly, the assurance under a limited review that the financial statements, taken as a whole, are free from material misstatement, is moderate and less than that obtained under a full audit scope.

On the basis of our limited review, we did not identify any material misstatements that cause us to believe that the condensed consolidated interim financial statements have not been prepared in accordance with IAS 34 – Interim financial reporting, as included in the IFRS standards adopted by the European Union.

II – Specific testing

We have also verified the information provided in the half-year business report commenting on the condensed consolidated interim financial statements on which we performed our limited review.

We have no comments on the report's fairness and its consistency with the condensed consolidated interim financial statements.

Lyon and Paris-La Défense, September 12, 2023

The Statutory Auditors

Grant Thornton French member of Grant Thornton International Françoise Mechin Partner

Deloitte & Associés Stéphane Rimbeuf Partner"