Bolloré SE

Earnings Release • Mar 14, 2019

2018 results (				March 14, 2019
	Strong performance by the Bolloré Group's operating activities in 2018
	Mr Cyrille Bolloré unanimously appointed	hairman and	hief Executive Officer
▪	Revenue: €23,024 million, up 7% at constant scope and exchange rates (+26% as reported including €13,924 million from Vivendi, fully consolidated since April 26, 2017).			( ,
▪	Good operating income across all segments: €1,301 million, up 25% at constant scope and exchange rates (+17% as reported)
▪	Bolloré Transportation & Logistics: €545 million up 8% benefiting from strong volume growth.		at constant scope and exchange rates,
▪	Communications: €940 million (+29% the strong performance of Vivendi and its main activities: Universal Music Group (UMG), Canal+ Group and Havas.	at constant scope and exchange rates)		benefiting from
▪ 2017	Electricity storage: improved results, with a loss of €152 million,		vs. a loss of €164 million in
▪ in 2017.	Net income: €1,107 million, vs. €2,049 million in exceptional tax items related to Vivendi. Excluding these items, net income increased by 7% Net income Group share: €235 million, vs. €695 million, bearing in mind the favorable items recorded		2017, which included €1,012 million in favorable
▪	Indebtedness stable at €4,882 million, compared with		€4,841 million as of December 31, 2017
Gearing low ▪	at 17%. Proposed dividend: €0.06 per share (including the €0.02 interim dividend already paid), payable in cash or shares, identical to that paid in 2017.
▪	Mr Vincent Bolloré informed the Board of Directors that he will not seek the renewal of his office as Director, which expires next May, having then entered of Directors thanked Mr Vincent Bolloré for his work to develop Bolloré over the last 38 years.		into his 68th year. The Board

Restated data as of December 2017, see "Comparability of financial statements".

2018 results

						The Board of Directors of Bolloré, which met on March 14, 2019, approved the 2018 financial statements.
	reported), thanks	to:				2018 revenue amounted to €23,024 million, an increase of 7% at constant scope and exchange rates (+26% as
❖		9% growth in transportation and logistics activities:
		• Bolloré Logistics (+9%), driven by growth in sea thanks to growth in goods traffic, particularly at Sitarail;				and air freight volumes; • Bolloré Africa Logistics (+9%), benefiting from higher port terminal volumes. Rail activity expanded
❖		slight increase in volumes;				25% growth in the oil logistics activity business on the back of higher prices for petroleum products and a
❖						4% growth in the communications business, attributable mainly to Vivendi (+4%), which benefited from

growth at UMG (+10%).

As reported, revenue was up 26%, reflecting an additional €3,561 million from change in the scope of consolidation, stemming mainly from Vivendi's full consolidation over 12 months in 2018 (vs. eight months in 2017), and adverse foreign exchange impacts of €477 million.

Operating income amounted to €1,301 million, up 25% at constant scope and exchange rates (+17% as reported):

❖				Growth in transportation and logistics activities: €511 million, up 9% at constant scope and exchange rates (+4% as reported) thanks to the good performance of port terminals in Africa and increased freight forwarding volumes, particularly in Asia;
❖			negative inventory impacts;	Slight decline in oil logistics income to €34 million (	5%				at constant scope and exchange rates) due to
❖				Growth in the communications segment to €9 thanks to strong performances by Vivendi's main activities(		0 million (+29		at constant scope and exchange rate	) : UMG (+22%), Canal+ Group (+33%) and Havas
	(+2%). equity		accounted non	In 2018, Vivendi's operating income no longer includes the contribution of Telecom Italia, reclassified to operating companies		(€108 million in 2017).
❖	temperature.			Losses in the Electricity Storage and Solutions business were reduced to €152 million, an improvement of 7%, thanks to tight control of expenses ahead of the release of a substantially improved version of its dry battery, with investment continuing on research and development in solid batteries operating at ambient

EBITDA: operating income less depreciation, amortization and operating provisions (including the share of net income of companies accounted for under the equity method). eported EBITA data by Vivendi at constant scope and exchange rates. EBITA before Canal+ Group restructuring +22%.

gains totaling €311	Financial income amounted to €140 million, billion) is recognized in equity(	in Vivendi's financial statements. fair value adjustment on Vivendi securities following the change in consolidation method.			compared with €119 million in 2017. It mainly includes	revaluation million on Spotify and Tencent Music securities. By contrast, the capital gain on Ubisoft (€1.2 In 2017, financial income included a €232 million
million,	The share of net income of non	compared with €115 million in 2017. Socfin's contribution, penalized by the drop in palm oil and rubber prices.				operating companies accounted for using the equity method totaled €172 It includes Vivendi's share of Telecom Italia's results (€122 million), offsetting the provision for impairment of Mediobanca securities (€40 million) and the decline in
		Excluding these items, net income increased by 7%. compared with €695 million in 2017, bearing in mind that the 2017 results were boosted by favorable items				After a negative €506 million in taxes, consolidated net income amounted to €1,107 million, compared with €2,049 million in 2017, which included €1,012 million in favorable exceptional tax items relating to Vivendi. Net income Group share amounted to €235 million,
million 2017.	Net debt amounted to €4,882 million, (€31,091	million as of December 31, 2017	), putting	gearing at 17%,		compared with €4,841 million as of December 31, 2017, taking into account the increase in the stake in Vivendi in 2018, representing a financial investment of €2.5 billion, and disposals of investments in Ubisoft, Fnac Darty and Telefonica in a total amount of €2.2 billion. Equity amounted to €28,204 compared with 16% at the end of
represented billion euros(		As of February 28, 2019, the Group's liquidity position			,including undrawn available amount	and liquid securities, approximately €2.1 billion for Bolloré. Including Vivendi, the amount stands at approximately €9
		General Shareholders' Meeting of May 29, 2019 operating in 26 European countries, Bolloré generates 56% of its consolidated revenue in Europe,				Among the resolutions put to the vote at the General Shareholders' Meeting of May 29, 2019 will be the implementation of Bolloré's proposed conversion to a European Company (societas europea). Based in France and where it currently employs 38% of its workforce. The transition to the new status will align Bolloré's corporate form with

The General Shareholders' Meeting will be asked to approve a dividend of €0.06 per share (including the €0.02 interim dividend paid in October 2018), payable in cash or shares. The ex dividend date will be June 4, 2019, with payment or delivery of shares on June 26, 2019.

its European economic and cultural roots.

Only €53 million was recognized in the income statement in accordance with IFRS 9, applied since January 1, 2018. Restated data as of December 2017, see "Comparability of financial statements"

Excluding Vivendi

Including Havas

	Increased shareholding	in Vivendi:	in	2018, the Group purchased an additional 6% of Vivendi's	share capital
				and exercised call options for 1.6% of share capital. The Group's interest was increased from 20% to 26%(	. The
		additional investment in 2018 was €2.5 billion.

Sale of non controlling equity interests in		2018, Vivendi sold €2.2 billion of non		controlling equity interests

roup structure:

(in millions of euros) 2018 2017* Change

Consolidated key figures for Bolloré

Revenue (1)	23,024	18,337 +26%
EBITDA Amortization and provisions	2,728 (1,426)	2,054 +33% (939) +52%
Operating income of which operating equity (2) associates	1,301 23	1,115 17% 151 NA
Financial result Share of net income of non operating companies accounted for under the equity method	140 172	119 18% 115 49%
Taxes	(506)	700
Net income Net income, Group share Minorities	1,107 235 872	2,049 46% 695 66% 1,354 36%
	December 31, 2018	December 31, Change (€M 2017*
Shareholders' equity of which Group share net debt (3) Gearing	28,204 9,234 4,882 17%	31,091 (2,887) 10,430 (1,196) 4,841 41 16%

(1) EBITDA: operating income less depreciation, amortization and operating provisions (including the share of net income of companies accounted for under the equity method)

(2) At Vivendi, primarily Telecom Italia as of December 31, 2017 and four months of Vivendi accounted for under the equity method in Bolloré's financial statements between January 1 and April 26, 2017. The interest in Telecom Italia was reclassified to equity accounted non operating companies on January 1

(3) Gearing: ratio of net debt to equity

* Restated data as of December 2017, see "Comparability of financial statements".

(in millions of euros)			2018	2017	As reported
Transport & Logistics			545	527	+3%
Transportation and Logistics	(1)		511	491	+4%
Oil logistics			34	36	6%
Communications (Vivendi, Media, Telecoms)		(2)	940	780	+20%
Electricity Storage and Solutions Other (Agricultural Assets, Holding companies)(1)			(152 (31)	(164) (28)
Total Operating Income Bolloré Group			1,301	1,115	+17%

• (1) Before Bolloré trademark fees
• (2) Including, in 2018, full consolidation of Vivendi over 12 months, i.e. €959 million (vs. eight months of full consolidation and four months under the equity method and 12 months of Havas, i.e. €803.6 million, in 2017)

* Restated data as of December 2017, see "Comparability of financial statements"

New standards applied from January 1, 2018

Comparability of financial statements

• ❖ IFRS 15 "Revenue from Contracts with Customers"
• No material impact on revenue or on consolidated operating income
• Bolloré nevertheless elected to apply this change in accounting standards to the 2017 fiscal year, thereby making the data presented for 2017 comparable.
• ❖ IFRS 9 "Financial Instruments"
• In accordance with this standard, choice of classification of securities at fair value through profit and loss or through equity with adjustment in opening balance sheet at January 1, 2018.
• Material impact on 2018 net income:
• Vivendi's €1,213m capital gain following the sale of its stake in Ubisoft on March 20, 2018 could not be recognized in the income statement except for €53m (corresponding to the revaluation of the stake in 2018). Under the former IAS 39, it would have been fully recognized in the income statement in 2018.
• ❖ Telecom Italia
• To reflect its reduced influence over Telecom Italia, Vivendi now recognizes the share of net income from Telecom Italia as a share of net income from equity accounted non operating companies. In 2017, this was recognized in operating income as a share of net income from equit accounted operating companies.

❖ Change in the scope of consolidation

• The work on the recognition of Vivendi's assets and liabilities at fair value was finalized in the first half of 2018, in accordance with IFRS 3 Business Combinations. The 2017 financial statements were adjusted to reflect the effects of the final
• Havas was sold to Vivendi in July 2017 and was consolidated by Vivendi in 2018.

❖ Currencies

2018 2017 Change USD 1.18 1.13 (4%) GPB 0.89 0.88 (1%) JPY 130.41 126.65 (3%) ZAR 15.61 15.04 (4%) NGN 427.23 376.21 (14%) 1,933.59 1,641.90			The euro strengthened against the main currencies compared with 2017.
	CDF		(18%)

❖ Transitional 2017 financial statements

▪ Restated Income Statements as of December 2017

In millions of euros

Revenue Staff costs	Good and services bought in			18 325 (12 496) (3 942)	18 337 (12 526) (3 942)
	Amortization and provisions			(948)	(939)
	Other operating income and charges			34	34
	Share in net income of operating companies accounted for using the equity method			151	151
Operating income	Net financing expenses Other financial income and expenses			1 124 (128) 247	1 115 (128) 247
Financial income Corporate income tax			Share of net income of non operating companies accounted for using the equity method	119 115 723	119 115 700
	Consolidated net income			2 082	2 049
	Consolidated net income Group share			699	695
	Nop-controlling interests			1 382	1 354

Earnings per share (in euros, excluding treasury shares
basic	0,24	0,24
diluted	0,24	0,24

▪ Restated balance sheet (assets and liabilities) as of December 31, 2017 and January 1, 2018
--------------------------------------------------------------------------------------------------	--	--	--	--

(In millions of euros)	31/12/2017 reported	01/01/2018 restated
ASSETS Goodwill Intangible assets Property, plant and equipment Investments in equity affiliates Other non current financial assets Deferred tax Other non current assets	14 460 10 290 3 109 4 587 10 133 721 523	13 988 9 932 3 108 4 560 10 052 730 523
Non current assets	43 824	42 893
Inventories and work in progress	1 171	1 172
Trade and other receivables	7 153	7 140
Current tax	454	454
Other current financial assets	109	109
Other current assets	535	535
Cash and cash equivalents	3 099	3 099
Current assets	12 521	12 509
Total Assets	56 345	55 402
(In millions of euros)	31/12/2017 reported	01/01/2018 restated
LIABILITIES Share capital Share issue premiums Consolidated reserves Shareholders' equity, Group share	468 1 237 8 808 10 512	468 1 237 8 722 10 427
Non controlling interests	21 346	20 652
Shareholders' equity	31 858	31 079
Non current financial debts	6 982	6 982
Provisions for employee benefits	907	907
Other non current provisions	945	945
Deferred tax	2 424	2 338
Other non current liabilities	475	382
Non current liabilities	11 734	11 555
Current financial debts	1 033	1 033
Current provisions	437	437
Trade and other payables	10 586	10 583
Current tax	237	237
Other current liabilities	460	478
Current liabilities	12 753	12 768