Compagnie de l'Odet SE — Earnings Release 2018

Mar 14, 2019

FINANCIÈRE DE L'ODET

PRESS RELEASE

Strong performance by the Group's operating activities in 2018 Mr. Vincent Bolloré unanimously appointed Chairman and Chief Executive Officer

• Revenue: €23,024 million, up 7% at constant scope and exchange rates (+26% as reported
• Good operating income across all segments: €1,300 million, up 25% at constant scope and
• Bolloré Transportation & Logistics: €545 million up 8% at constant scope and exchange rates,
• Communications: €940 million (+29% at constant scope and exchange rates) benefiting from

the strong performance of Vivendi and its main activities: Universal Music Group (UMG), Canal+

• Electricity storage: improved results, with a loss of €152 million, vs. a loss of €164 million in
• Net income: €1,102 million, vs. €2,043 million in 2017, which included €1,012 million in favorable exceptional tax items related to Vivendi. Excluding these items, net income increased by 7%| Net income Group share: €122million, vs. €367 million, bearing in mind the favorable items recorded in
• Indebtedness stable at €5,040 million, compared with €5,068 million as of December 31, 2017 | Gearing low at 19%.
• Proposed dividend: €1.0 per share, identical to that paid in 2017.

2017.

▪ The Board of Directors of Financière de l'Odet unanimously appointed Mr. Vincent Bolloré as Chairman and Chief Executive Officer.

Restated data as of December 2017, see "Comparability of financial statements". IFRS 15 restatement

2018 results

2018 revenue amounted to €23,024 million, an increase of 7% at constant scope and exchange rates (+26% as

EBITDA(3) totaled €2,726 million, an increase of 33% as reported vs. 2017

Operating income amounted to €1,300 million, up 25% at constant scope and exchange rates (+17% as reported):

equity method).
Reported EBITA data by Vivendi at constant scope and exchange rates. EBITA before Canal+ Group restructuring +22%.

Financial income amounted to €136 million, compared with €114 million in 2017. It mainly includes revaluation

The share of net income of non-operating companies accounted for using the equity method totaled €172 million, compared with €115 million in 2017. It includes Vivendi's share of Telecom Italia's results

		After a negative €506 million in taxes, consolidated net income amounted to €1,102 million, compared with €2,043 million in 2017, which included €1,012 million in favorable exceptional tax items relating to Vivendi.
		Excluding these items, net income increased by 7%. compared with €367 million in 2017, bearing in mind that the 2017 results were boosted by favorable items.			Net income Group share amounted to €122 million,
	Net debt amounted to €5,040 million,				compared with €5,068 million as of December 31, 2017, taking into account
million	(€28,529	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 €26,156 million as of December 31, 2017 ),	putting	gearing at 19%,	compared with 18% at the end of
2017.		As of February 28, 2019, the Group's liquidity position(7) represented approximately €2.2 billion for Bolloré. Including Vivendi, the amount stands at approximately €9			including undrawn available amount and liquid securities,
	billion euros General Shareholders' Meeting of May 29, 2019
		Among the resolutions put to the vote at the General Shareholders' Meeting of May 29, 2019 will be the implementation of Financière de l'Odet's proposed conversion to a European Company (societas europea). Based in France and operating in 26 European countries, Financière de l'Odet in Europe, where it currently employs 38% of its workforce. The transition to the new status will align Financière			generates 56% of its consolidated revenue
	will be June 4, 2019, with payment on June 6, 2019.	de l'Odet's corporate form with its European economic and cultural roots. The General Shareholders' Meeting will be asked to approve a dividend of €1,0 per share. The ex				dividend date
		The General Meeting will be asked to appoint Mr Sébastien Bolloré, Director of Financière de l'Odet.
	Excluding Vivendi Including Havas	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"

Group structure:

Increased shareholding in Vivendi: in 2018, the Group purchased an additional 6% of Vivendi's share capital

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

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Consolidated key figures for Financière de l'Odet

(in millions of euros)	Dec. 31st, 2018	Dec. 31st, 201	Change
Turnover EBITDA (1)	23 024 2,726	18 337 2,053	+ 26% + 33%
Depreciation, amortization and provisions Operating income (2)	(1 426) 1,300	(939) 1,114	+ 52% + 17%
Operating equity associates Financial income	23 136	151 114	+ 19%
Share in the net income of equity accounted non operating companies	172	115	+ 49%
Taxes Net income	(506) 1,102	700 2,043	na - 46%
Net income group share Minorities	122 979	367 676	67% 42%
Shareholders' equity Of which Group share	26,156 814	28,529 152	(2,373) (337)
Net debt	5,040	5,068	(28)
(3) Gearing ratio	19%	18%
(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 2018. (3) Gearing: ratio of net debt to equity
* Restated data as of December 2017, see "Comparability of financial statements".

Operating income by activity

(in millions of euros)	Dec. 31st, 201	Dec. 31st, 201	Change
Bolloré Transport & Logistics	545	527	+3%
(1) Transportation & Logistics	511	491	+ 4%
Oil logistics	34	36	6%
Communications (Havas, Media, Telecoms)	940	780	+ 20%
Electricity Storage and Solutions	(152)	(164)	-
Others (Agricultural Assets, Holding Companies (1)	(33)	(29)
Total Operating Income Bolloré Group	1 300	1 114	+ 17%

***** *** *

Comparability of financial statements

New standards applied from January 1, 2018

❖	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 equity 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
	allocation. ▪ 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%)
CDF	1,933.59	1,641.90	(18%)

❖ Transitional 2017 financial statements

▪ Restated Income Statements as of December 2017

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

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

ASSETS

Non-current assets	41 888	42 893
Inventories and work in progress	1 171	1 172
Trade and other receivables	7 153	7 140
Current tax	455	455
Other current financial assets	109	109
Other current assets Cash and cash equivalents	535 3 099	535 3 099
Current assets	12 522	12 509
Total Assets	54 009	53 066
	31/12/2017	01/01/2018
In millions of euros)	reported	restated
LIABILITIES
Share capital	105	105
Share issue premiums	88	88
Consolidated reserves	002	3 957
Shareholders' equity, Group share	195	4 150
Non controlling interests	25 101	24 367
Shareholders' equity	29 296	28 516
Non current financial debts	157	157
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	11 909	11 730
Current financial debts	1 085	1 085
Current provisions	437	437
Trade and other payables	10 586	10 583
Current tax	237	237
Other current liabilities Current liabilities	460 12 805	478 12 820
Total liabilities	54 009	53 066