Quarterly Report • Jul 21, 2016
Quarterly Report
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A joint stock limited liability company (Société Anonyme) with a Board of Directors and share capital of 370,783,57 euros
Registered office: 1 Route de Versailles – 78470 Saint-Rémy-lès-Chevreuse, France
| STATEMENT OF THE PERSON RESPONSIBLE | 3 | |
|---|---|---|
| FIRST HALF MANAGEMENT REPORT |
4 | |
| 1. | KEY BUSINESS HIGHLIGHTS FOR THE FIRST HALF | 4 |
| 2. | SUBSIDIARY ACTIVITIES |
6 |
| 3. | ANALYSIS OF RESULTS FOR THE FIRST HALF OF 2016 |
8 |
| 4. | GTT BALANCE SHEET ANALYSIS |
13 |
| 5. | OUTLOOK | 15 |
| 6. | THIRD PARTY TRANSACTIONS |
15 |
| RISK FACTORS |
15 | |
| HALF-YEAR CONDENSED FINANCIAL STATEMENTS | 16 | |
| STATUTORY AUDITOR'S REVIEW REPORT ON THE HALF-YEARLY FINANCIAL INFORMATION |
35 |
"I certify that, to the best of my knowledge, the condensed financial statements for the 2015 first half year have been prepared in accordance with the applicable accounting standards (IFRS), and give a true and fair view of the assets and liabilities, the financial position and results of the Company, and that the half-year management report attached provides a fair view of the main events of the first six months of the year, their impact on the condensed financial statements, the significant transactions with related parties, and a description of the main risks and uncertainties for the next six months of this financial year."
July 21, 2016
Philippe Berterottière, Chairman and Chief Executive Officer
Since January 1, 2016, the GTT order book has changed, with:
At June 30, 2016, the order book stood at 107 units:
During the first half of 2016, GTT's activity saw a number of highlights:
During the first half of 2016, GTT signed technical assistance and licence agreements with two new outfitters (subcontractor installers): AG&P in the Philippines and Endel in France. These partnerships make it possible to offer companies in the LNG logistics chain appropriate solutions that meet their specific needs, while benefiting from reduced delivery times and costs.
1 Floating Storage and Regasification Unit
2 Floating Liquefied Natural Gas vessel: LNG liquefaction unit
GTT's annual combined shareholders meeting took place on May 18, 2016, chaired by Philippe Berterottière, Chairman and Chief Executive Officer, at Domaine de Saint-Paul, Saint-Rémy-lès-Chevreuse.
All resolutions put to the shareholders meeting were adopted.
The shareholders approved the financial statements for the 2015 financial year and voted a dividend of 2.66 euros per share, it being stipulated that an interim dividend of 1.30 euro per share had already been paid on September 30, 2015.
The Shareholders' Meeting approved the co-option of Andrew Jamieson, Sandra Lagumina, Françoise Leroy and Benoît Mignard to the Board of Directors.
In June 2016, the Company opened its China office: GTT China. This office will allow the Company to be closer to its customers and partners in China and to provide the best support to this country's growing LNG needs.
GTT takes part in major industry trade shows and creates opportunities for regular exchanges of views and feedback with its customers, partners and potential customers during themebased seminars. During these high-visibility events, GTT highlights its technological innovations and new services on offer.
Cryovision, a GTT subsidiary created in 2012, offers innovative services to ship-owners and terminal operators: thermal camera membrane inspection (Thermal Assessment of Membrane Integrity (TAMI test)) and installation of monitoring systems, and management and optimisation tools for boil-off.
Cryovision experienced sustained activity for the first half of 2016 with TAMI inspections completed on 17 tanks, acoustic emissions tests completed on 12 tanks, and two installations of Sloshield, the management solution for sloshing.
GTT North America, an American GTT subsidiary created in 2013, continued its business development on the American continent. During the first half of the year, it signed, with GTT Training, a contract with TOTE (the ship-owner of the barge under construction at the Conrad shipyard) for the development and implementation of a comprehensive LNG training program for the barge and tugboat crew.
GTT North America also signed contracts for feasibility and modifications studies to be made to vessels in service.
Finally, the US National Fire Protection Association (NFPA) recently included the membrane tank system to the list of full integrity containment technologies recognised for the onshore storage of LNG in the 2016 edition of the NFPA code. This is an internationally recognised standard in the LNG industry.
GTT Training Ltd, a subsidiary created in 2014, received its first orders for its simulation software for LNG cargo operations from L-3 Communication/Chevron and Teekay Shipping. This software makes it possible to provide training using 12 different LNG carrier configurations.
GTT Training also received, through the GTT North America subsidiary, orders for the development of simulation software for LNG bunkering and for the initial training of the crews that will be responsible for performing these operations on the LNG bunker barge under construction at Conrad Shipyard.
GTT Training Ltd also provides training on subjects associated with GTT technologies, LNG as a fuel and LNG operations.
Cryometrics, a wholly owned GTT subsidiary created in November 2015, markets services that help to improve the performance and operational flexibility of LNG carriers. LNG Advisor ensures the transmission in real time, at sea and on land, of reliable data relating to the energy performance of the vessel. Sloshield, available since 2014, makes it possible to monitor sloshing activity inside tanks in real time.
GTT South East Asia (GTT SEA), a GTT subsidiary established in Singapore in 2015, performs business development activities on behalf of GTT in the Asia-Pacific region. The first half of 2016 saw the signature of a licensing agreement with Atlantic, Gulf and Pacific of Manila (AG&P), a subcontractor installer (outfitter). This agreement will enable GTT to develop its presence in small-scale LNG chains, LNG bunkering, as well as onshore storage, which are growing sectors in South-East Asia. This Singapore presence also permits GTT to strengthen its collaboration with its long-term partners in ship repair in Singapore, as well as the LNG players in the region.
Due to its business development activities on behalf of GTT, this subsidiary is not expected to generate revenue.
Condensed income statement
| (in thousands of euros) | June 30, 2016 |
June 30, 2015 |
Change |
|---|---|---|---|
| Revenue from operating activities | 116,880 | 104,928 | +11.4% |
| Costs of sales | (1,414) | (1,244) | +13.6% |
| External charges | (20,702) | (20,112) | +2.9% |
| Personnel expenses | (21,019) | (20,939) | +0.4% |
| Taxes | (2,391) | (1,790) | +33.6% |
| Depreciations, amortisations and provisions | (2,946) | 673 | -538.0% |
| Other operating income and expense | 3,714 | 3,048 | +21.8% |
| Operating profit (EBIT) | 72,123 | 64,564 | +11.7% |
| EBIT margin on revenues (%) | 61.7% | 61.5% | |
| Financial income | 360 | 492 | -26.9% |
| Profit before tax | 72,482 | 65,056 | +11.4% |
| Income tax | (11,969) | (10,827) | +10.5% |
| Net income | 60,514 | 54,229 | +11.6% |
| Net margin on revenues (%) | 51.8% | 51.7% | |
| Basic earnings per share | 1.63 | 1.46 | +11.6% |
| EBITDA | 73,746 | 65,974 | +11.8% |
| EBITDA margin on revenues (%) | 63.1% | 62.9% |
Net income for the first half of 2016 shows an increase of 11.6% in comparison to the first half of the previous year.
It has kept pace with the business, with revenue at 116,880 thousand euros, an increase of 11.4% over 2015.
The net margin on revenues remains constant at 51.8% at June 30, 2016, versus 51.7% at June 30, 2015.
Please note the significant change in allocation to depreciation, amortisation and provisions due to the reversal in 2015 of a provision for risk that had a positive impact of 2,295 thousand euros on the financial statements for the first half of 2015. This provision was completely reversed at year-end 2015.
External charges and personnel expenses remain stable and provide for a steady net margin rate.
| (in thousands of euros) | June 30, 2016 |
June 30, 2015 |
Change |
|---|---|---|---|
| Total revenue | 116,880 | 104,928 | +11.4% |
| From royalties | 111,093 | 96,394 | +15.2% |
| LNG carriers/Ethane carriers | 100,954 | 84,500 | +19.5% |
| FSRUs | 8,667 | 6,905 | +25.5% |
| FLNG | 1,070 | 4,430 | -75.9% |
| Onshore storages | 164 | 344 | -52.4% |
| Barges | 239 | 215 | +11.0% |
| From services | 5,787 | 8,534 | -32.2% |
Breakdown and change in revenues ("Revenue from operating activities" in the income statement)
Revenue increased from 104,927 thousand euros in the first half of 2015 to 116,880 thousand euros in the first half of 2016, i.e. an increase of 11.4% over the period. This increase is essentially due to the rise in revenue from royalties, which increased by 15.2%.
Revenue from LNG and ethane carriers represents 100,954 thousand euros. This represents an increase of 19.5% between the first half of 2015 and the first half of 2016. Although at June 30, 2015, more than ¾ of this revenue was generated by orders received in the last 2 or 3 previous years (2012 and 2013), at June 30, 2016, 80% of the revenue is concerned (orders received in 2013 and 2014).
Revenue from FSRUs (Floating Storage and Regasification Units) rose by 25.5% between June 30, 2015 and June 30, 2016: 5 orders generated revenues at June 30, 2015 as well as at June 30, 2016. At June 30, 2016, 30.3% of this revenue derived from FSRUs whose delivery is scheduled for 2016 and 69.7% from FSRU scheduled for delivery in 2017.
Revenue associated with FLNG orders (floating LNG) decreased by 75.9% between June 30, 2015 and June 30, 2016 due to the delivery during the first half of 2016 of one unit out of the three under construction at year-end 2015, and to the delay in the projected delivery dates of the other two platforms under construction.
At June 30, 2016, revenue from services had dropped by 32.2% compared to June 30, 2015, from 8,534 thousand euros to 5,787 thousand euros. It amounts to 5% of total Company revenues on that date. This decrease can primarily be explained by a decline in the studies' activity, in comparison with a particularly dynamic first half of 2015.
| (in thousands of euros) | June 30, 2016 |
June 30, 2015 |
Change |
|---|---|---|---|
| Tests and studies | 8,660 | 10,298 | -15.9% |
| Leasing, maintenance & insurance | 2,651 | 2,530 | +4.8% |
| External staff | 77 | 138 | -44.1% |
| Fees | 3,624 | 2,381 | +52.2% |
| Transport, travel & reception expenses | 4,360 | 3,674 | +18.7% |
| Postal & telecommunication charges | 116 | 110 | +5.4% |
| Others | 1,213 | 981 | +23.7% |
| Total | 20,702 | 20,112 | +2.9% |
| % of revenues from operating activities | 17.7% | 19.2% |
The Company's external expenses increased by 2.9%, rising from 20,112 thousand euros at June 30, 2015 to 20,702 thousand euros at June 30, 2016.
The increase of 1,243 thousand euros in fee expenses was offset by the reduction in charges for tests and studies of 1,638 thousand euros. This increase in fees is due not only to the investigation currently under way in Korea but also to services associated with our R&D activities.
Transport, travel and reception expenses have increased by 686 thousand euros due to the growing number of vessels under construction, which require the presence of more GTT representatives in Asian shipyards.
External expenses accounted for 19.2% of Company revenues at 30 June 2015 and 17.7% at June 30, 2016.
| (in thousands of euros) | June 30, 2016 | June 30, 2015 | Change |
|---|---|---|---|
| Wages and salaries | 11,242 | 10,864 | +3.5% |
| Social security costs | 6,309 | 6,239 | +1.1% |
| Share-based payments | 502 | 847 | -40.7% |
| Profit-sharing and incentive scheme | 2,966 | 2,989 | -0.8% |
| Personnel expenses | 21,019 | 20,939 | +0.4% |
| % of revenues from operating activities | 18.0% | 20.0% |
Personnel expenses remained stable overall in comparison to the previous year at +0.4%. The workforce changed very little: an average of 387 persons over the first half of 2016 versus 382 on average in the first half of 2015.
Salaries and social security costs increased from 17,013 thousand euros at the end of June 2015 to 17,551 thousand euros at the end of June 2016, i.e. a 2.6% increase.
The 40.7% decline in share-based payments is due to the performance share plan decided upon in February 2014 whose expenses, under IFRS, are spread out over the duration of the plan in a non-linear way, the first two tranches having been allocated at the beginning of 2016 (see note 9.3 to the financial statements).
Personnel expenses as a percentage of revenue have improved from 20% in 2015 to 18% in 2016.
| (in thousands of euros) | June 30, 2016 | June 30, 2015 | Change |
|---|---|---|---|
| Depreciation and amortisation | 1,624 | 1,410 | +15.2% |
| Provisions | 1,996 | 299 | +567.7% |
| Reversal of depreciation and amortisation | - | - | - |
| Reversal of provisions | (673) | (2,382) | -71.7% |
| Depreciation, amortisation and provisions (Reversal) | 2,946 | (673) | -538.0% |
Depreciation, amortisation and provisions correspond to expenses over the period. These changed from income of 673 thousand euros at June 30, 2015 to expenses of 2,946 thousand euros at June 30, 2016. The change is mainly due to (i) reversals of provisions for risks lower than the ones observed at the end of June 2015 due notably to the complete reversal of the provision for vessel risks at the end of 2015 and (ii) to a rise in provisions for risks and charges between June 30, 2015 and June 30, 2016 from 299 thousand euros to 1,966 thousand euros, corresponding to provisions for employee disputes and for doubtful receivables.
The amount of allocation to depreciation and amortisation of fixed assets increased over the period, particularly due to recent investments made in the registered office's buildings and testing materials.
| (in thousands of euros) | June 30, 16 | June 30, 15 | Change |
|---|---|---|---|
| Research tax credit | 3,380 | 2,184 | 54.7% |
| Employment and competitiveness tax credit (CICE) | 61 | 107 | -42.7% |
| Other | 273 | 757 | -64.0% |
| Other operating income and expenses | 3,714 | 3,048 | 21.8% |
Other income and expenses consists primarily of research tax credits, the amount estimated by the Company at June 30, 2015 amounted to 2,184 thousand euros compared with 3,380 thousand euros at June 30, 2016. The research tax credit amount is evaluated during the financial year based on (i) ongoing R&D projects that are considered as eligible according to the legal criteria and (ii) on the historical research tax credit.
| (in thousands of euros) | June 30, 2016 | June 30, 2015 | Change |
|---|---|---|---|
| Operating income (EBIT) | 72,123 | 64,564 | +11.7% |
| EBIT margin on revenues (%) | 61.7% | 61.5% | |
| EBITDA | 73,746 | 65,974 | +11.8% |
| EBITDA margin on revenues (%) | 63.1% | 62.9% |
The Company's EBIT rose from 64,564 thousand euros at 30 June 2015 to 72,123 thousand euros at June 30, 2016, i.e. +11.7%. This change is proportional to the increase in revenues (+11.4% compared to June 30, 2015).
The change in EBITDA of +11.8% is in line with the change in EBIT over the same period, increasing from 65,974 thousand euros at June 30, 2015 to 73,746 thousand euros at June 30, 2016.
The EBIT and EBITDA margins on revenues are up over the period, at 61.7% and 63.1% respectively.
| June 30, 2016 | June 30, 2015 | Change | |
|---|---|---|---|
| Net earnings in euros | 60,513,583 | 54,229,213 | +11.6% |
| Weighted average number of shares in issuance | 37,046,601 | 37,064,628 | - |
| Number of shares on a diluted basis | 37,171,601 | 37,334,102 | -0.4% |
| Basic earnings per share in euros | 1.63 | 1.46 | +11.6% |
| Diluted net earnings per share in euros | 1.63 | 1.45 | +12.0% |
Company net income rose from 54,229 thousand euros at June 30, 2015 to 60,514 thousand euros at June 30, 2016 based on the information presented in the above table.
At June 30, 2016, earnings per share was calculated based on share capital made up of 37,046,601 shares, which corresponds to the average weighted number of ordinary shares outstanding excluding treasury shares during the period.
On this basis, basic earnings per share went from 1.46 euro to 1.63 euro during the period.
Diluted earnings per share is calculated by taking into account the allocations of free shares decided by the Company in February 2014. Diluted earnings per share went from 1.45 euro at end-June 2015 to 1.63 euro at end-June 2016.
| (in thousands of euros) | June 30, 2016 | Dec 31, 2015 | Change |
|---|---|---|---|
| Intangible assets | 691 | 763 | -9.4% |
| Property, plant and equipment | 17,315 | 17,789 | -2.7% |
| Non-current financial assets | 15,290 | 15,445 | -1.0% |
| Deferred tax assets | 389 | 282 | +38.0% |
| Non-current assets | 33,685 | 34,279 | -1.7% |
The slight variation in non-current assets between December 31, 2015 and June 30, 2016 is mainly due to the decrease in property, plant and equipment over the period from 17,789 thousand euros at December 31, 2015 to 17,315 thousand euros at June 30, 2016 as a result of the depreciation of investments made in 2015 in the buildings of the registered office and testing materials.
| (in thousands of euros) | June 30, 2016 |
Dec 31, 2015 | Change |
|---|---|---|---|
| Trade and other receivables | 85,168 | 83,254 | +2.3% |
| Other current assets | 26,476 | 31,024 | -14.7% |
| Financial current assets | 7,775 | 12,688 | -38.7% |
| Cash and cash equivalents | 59,590 | 73,444 | -18.9% |
| Current assets | 179,010 | 200,410 | -10.7% |
Current assets decreased between December 31, 2015 and June 30, 2016, from 200,410 thousand euros to 179,010 thousand euros.
This change was mainly due (i) to a decline in cash and financial current assets as a result of the payment in May 2016 of the balance of the dividend for 2015 (50 million euros), and (ii) to a decrease in other current assets, which can be explained by the seasonality of the tax refunds (VAT credit and research tax credit, in particular).
| (in thousands of euros) | June 30, 2016 |
Dec 31, 2015 | Change |
|---|---|---|---|
| Share capital | 371 | 371 | - |
| Share premium | 2,932 | 2,932 | - |
| Reserves | 47,729 | (21,520) | -321.8% |
| Net income | 60,514 | 117,257 | -48.4% |
| Other items of comprehensive income | (505) | 1,675 | -130.1% |
| Total equity | 111,041 | 100,714 | +10.3% |
The increase in equity between December 31, 2015 (100,714 thousand euros) and June 30, 2016 (111,041 thousand euros) comes from the following combined factors : (i) the net income over a 6-month period at the end of June 2016 and (ii) the payment of the remaining balance of the 2015 dividend.
| (in thousands of euros) | June 30, 2016 | Dec 31, 2015 | Change |
|---|---|---|---|
| Non-current provisions | 3,761 | 3,198 | +17.6% |
| Financial liabilities – non-current part | 861 | 1,091 | -21.1% |
| Other non-current liabilities | 621 | 91 | +580.6% |
| Non-current liabilities | 5,242 | 4,381 | +19.7% |
Provisions at June 30, 2016 consist of:
Other non-current liabilities are made up of the balance of advances from the Hydrocarbon Support Fund not yet expired. The decline is linked to reclassification in current financial liabilities expiring in the 12 coming months.
| (in thousands of euros) | June 30, 2016 |
31 Dec 31, 2015 |
Change |
|---|---|---|---|
| Trade and other payables | 8,700 | 11,187 | -22.2% |
| Current financial liabilities | 524 | 561 | -6.5% |
| Other current liabilities | 87,188 | 117,847 | -26.0% |
| Current liabilities | 96,412 | 129,594 | -25.6% |
This balance sheet item fell from 129,594 thousand euros at December 31, 2015 to 96,412 thousand euros at June 30, 2016. This decline is mainly due to the decrease in other current non-financial liabilities associated with (i) a drop in prepaid income given the time lag between invoicing and the recording of revenues based on the progress in the construction of vessels ordered that are equipped with our technologies, to (ii) a decrease in tax payables and to (iii) a decline in other debts corresponding to credit notes accrued.
In addition, trade payables decreased from 11,187 thousand euros at December 31, 2015 to 8,700 thousand euros at June 30, 2016.
Based on the revenue from royalties recorded for the first half of the year and the value of the current order book, and in the absence of any significant postponements or cancellations in orders, the cumulative revenue for the 2016-2020 period would amount to 636 million euros (229 million euros in 20163, 213 million euros in 2017, 155 million euros in 2018, 35 million euros in 2019 and 4 million euros in 2020).
Accordingly, given the time lag observed in shipbuilding milestones and the current level of new orders, the Company now estimates at around 240 million euros the revenue for the 2016 financial year4 .
The other two objectives remain unchanged:
The Group maintains its attractive payout policy to shareholders and will pay an interim dividend for 2016 on September 30, 2016 of 1.33 euro per share in respect of 2016 (exdividend date set at September 28, 2016).
During the first half of 2016, no third-party transactions likely to have a material impact on the Company's financial situation or results took place. Similarly, no changes were made to previously agreed third-party transactions likely to have a material impact on the Company's financial situation or results during the period.
Details of the amounts of third party transactions can be found in Note 14 to the condensed half-yearly financial statements.
The Group's activities are exposed to certain macroeconomic and sector-specific, operational, market, industrial, environmental and legal risk factors. The main risk factors to which the Group could be exposed are described in detail in the Risk Factors section in the 2015 Registration Document filed with the AMF on April 27, 2016, number R 16-028. There were no significant changes in these risk factors during the first half of 2016.
3 Of which 111.0 million euros recognised for the first half of 2016
4 In the absence of any significant new postponements or cancellations of orders
5 Excluding the effect of potential acquisitions
6 2016 dividend to be submitted for approval by the Shareholders' Meeting of 18 May 2017
| In thousands of euros | Notes | June 30, 2016 | December 31, 2015 |
|---|---|---|---|
| Intangible assets | 691 | 763 | |
| Property, plant and equipment | 5 | 17,315 | 17,789 |
| Non-current financial assets | 6 | 15,290 | 15,445 |
| Deferred tax assets | 12.4 | 389 | 282 |
| Non-current assets | 33,685 | 34,279 | |
| Trade and other receivables | 7.1 | 85,168 | 83,254 |
| Other current assets | 7.1 | 26,476 | 31,024 |
| Financial current assets | 7,775 | 12,688 | |
| Cash and cash equivalents | 8 | 59,590 | 73,444 |
| Current assets | 179,010 | 200,410 | |
| TOTAL ASSETS | 212,695 | 234,690 |
| In thousands of euros | Notes | June 30, 2016 | December 31, 2015 |
|---|---|---|---|
| Share capital | 9.1 | 371 | 371 |
| Share premium | 2,932 | 2,932 | |
| Reserves | 47,729 | (21,520) | |
| Net income | 60,514 | 117,257 | |
| Other items of comprehensive income | (505) | 1,675 | |
| Total equity | 111,041 | 100,714 | |
| Non-current provision | 11.2 | 3,761 | 3,198 |
| Financial liabilities – non-current part | 861 | 1,091 | |
| Other non-current liabilities | 11.1 | 620 | 91 |
| Non-current liabilities | 5,242 | 4,381 | |
| Trade and other payables | 7.2 | 8,700 | 11,187 |
| Current financial liabilities | 524 | 561 | |
| Other current liabilities | 7.2 | 87,188 | 117,847 |
| Current liabilities | 96,412 | 129,594 | |
| TOTAL EQUITY AND LIABILITIES | 212,695 | 234,690 |
| In thousands of euros | Notes | June 30, 2016 | June 30, 2015 |
|---|---|---|---|
| Revenue from operating activities | 116,880 | 104,928 | |
| Costs of sales | (1,414) | (1,244) | |
| External charges | 4.2 | (20,702) | (20,112) |
| Personnel expenses | 4.1 | (21,019) | (20,939) |
| Taxes | (2,391) | (1,790) | |
| Depreciations, amortisations and provisions | 4.3 | (2,946) | 673 |
| Other operating income and expense | 4.4 | 3,714 | 3,048 |
| Current operating income | 72,123 | 64,564 | |
| Other non-current income and expenses | - | - | |
| Operating profit | 72,123 | 64,564 | |
| Financial income | 360 | 492 | |
| Profit before tax | 72,482 | 65,056 | |
| Income tax | 12.2 | (11,969) | (10,827) |
| Net income | 60,514 | 54,229 | |
| Basic earnings per share in euros | 10 | 1.62 | 1.46 |
| Diluted earnings per share in euros | 10 | 1.62 | 1.45 |
| In thousands of euros | Notes | June 30, 2016 | June 30, 2015 |
|---|---|---|---|
| Net income | 60,514 | 54,229 | |
| Items that will not be reclassified to profit or loss: | |||
| Actuarial Gains and Losses | |||
| Gross amount | (306) | 490 | |
| Deferred tax | 46 | (73) | |
| Total amount, net of tax | (260) | 417 | |
| Items loss may be reclassified subsequently to profit or loss: |
|||
| Fair value changes on equity investments | |||
| Gross amount | (245) | 743 | |
| Deferred tax | - | (111) | |
| Total amount, net of tax | (245) | 631 | |
| Other comprehensive income for the period | (505) | 1,048 | |
| Total comprehensive income | 60,009 | 55,277 | |
| Basic comprehensive income per share (in euros) | 1.62 | 1.49 | |
| Diluted comprehensive income per share (in euros) | 1.61 | 1.48 |
| (in thousands of euros) | Notes | June 30, | December | June 30, |
|---|---|---|---|---|
| 2016 | 31, 2015 | 2015 | ||
| Company profit for the period | 60,514 | 117,257 | 54,229 | |
| Removal of income and expenses with no cash impact:: | ||||
| Depreciations, amortisations and provisions | 454 | (240) | (759) | |
| Tax expense (income) for the financial period | 11,969 | 22,672 | 10,827 | |
| Share-based payments | (1,563) | 2,267 | 847 | |
| Other income and expenses | (462) | 48 | (104) | |
| Cash Flow | 70,911 | 142,004 | 65,040 | |
| Income tax paid | (11,956) | (22,928) | (10,550) | |
| Change in working capital: | ||||
| - Trade and other receivables | 7.1 | (1,915) | (8,051) | (5,959) |
| - Trade and other payables | 7.2 | (2,487) | (3,557) | (1,931) |
| - Other operating assets and liabilities | (26,112) | 13,049 | (2,193) | |
| Net cash-flow generated by the business (Total I) | 28,441 | 120,516 | 44,408 | |
| Investment operations | ||||
| Acquisition of non-current assets | (1,300) | (6,543) | (3,803) | |
| Disposal of non-current assets | 249 | 650 | 82 | |
| Financial investments | - | (10,045) | (10,007) | |
| Disposal of financial assets | 5,457 | 1,491 | 345 | |
| Reclassification of assets in progress | 90 | - | - | |
| Treasury shares | 3,880 | (5,281) | - | |
| Change in other fixed financial assets | - | (264) | - | |
| Net cash-flow from investment operations (Total II) | 8,375 | (19,991) | (13,381) | |
| Financing operations | ||||
| Dividends paid to shareholders | (50,385) | (91,165) | (43,000) | |
| Change in Hydrocarbon Support Fund advances | (286) | (621) | (311) | |
| Net cash-flow from finance operations (Total III) | (50,670) | (91,786) | (43,310) | |
| Change in cash (I+II+III) | (13,854) | 8,739 | (12,283) | |
| Opening cash | 8 | 73,444 | 64,705 | 64,705 |
| Closing cash | 8 | 59,590 | 73,444 | 52,422 |
| Cash change | (13,854) | 8,739 | (12,283) |
| In thousands of euros | Share capital |
Share premium |
Reserves | Net result | Total equity |
|---|---|---|---|---|---|
| As at December 31, 2014 | 371 | 2,932 | (42,643) | 115,475 | 76,136 |
| Profit for the period | - | - | - | 54,229 | 54,229 |
| Other items of comprehensive income | - | - | - | 1,048 | 1,048 |
| Total comprehensive income | - | - | - | 55,277 | 55,277 |
| Allocation of the profit from the | |||||
| previous financial period | - | - | 115,475 | (115,475) | - |
| Treasury shares | - | - | (456) | (456) | |
| Share-based payments | - | - | 847 | - | 847 |
| Distribution of dividends | - | - | (43,000) | - | (43,000) |
| As at June 30, 2015 | 371 | 2,932 | 30,223 | 55,277 | 88,803 |
| Profit for the period | - | - | - | 63,028 | 63,028 |
| Other items of comprehensive income | - | - | - | 627 | 627 |
| Total comprehensive income | - | - | - | 63,655 | 63,655 |
| Allocation of the profit from the | |||||
| previous financial period | - | - | - | - | - |
| Treasury shares | - | - | (4,998) | - | (4,998) |
| Share-based payments | - | - | 1,420 | - | 1,420 |
| Distribution of dividends | - | - | (48,166) | - | (48,166) |
| As at December 31, 2015 | 371 | 2,932 | (21,521) | 118,932 | 100,714 |
| Profit for the period | - | - | - | 60,514 | 60,514 |
| Other items of comprehensive income | - | - | - | (505) | (505) |
| Total comprehensive income | - | - | - | 60,009 | 60,009 |
| Allocation of the profit from previous | |||||
| financial period | - | - | 118,932 | (118,932) | - |
| Treasury shares | - | - | 4,081 | - | 4,081 |
| Share-based payments | - | - | (3,378) | - | (3,378) |
| Distribution of dividends | - | - | (50,385) | - | (50,385) |
| As at June 30, 2016 | 371 | 2,932 | 47,730 | 60,009 | 111,041 |
Gaztransport et Technigaz-GTT (the "Company" or "GTT") is a joint stock limited liability company (société anonyme) under French law, whose registered office is domiciled in France, at 1 route de Versailles, 78470 Saint-Rémy-lès-Chevreuse.
The Company is specialised in the production of services related to the construction of storage facilities for transporting liquefied natural gas (LNG). It offers engineering services, technical assistance and patent licenses for the construction of LNG tanks installed mainly on LNG carriers.
The Company is based in France and operates mainly with shipyards in Asia.
The Company does not prepare consolidated financial statements that include its subsidiaries Cryovision (established on February 2, 2012), GTT North America (established in September 2013), GTT Training Ltd (established in June 2014), GAZTRANSPORT & TECHNIGAZ - GTT SEA PTE. LTD (established in April 2015), Cryometrics (established in November 2015) and GTT ICS (established in April 2016), due to their low level of business activity in the period covered by these financial statements.
These financial statements are presented for the period beginning on January 1 and ending June 30, 2016.
The condensed interim financial statements for all the periods have been prepared in accordance with the IFRS international accounting standards in force at June 30, 2016.
These standards are available on the website of the European Commission at: http://ec.europa.eu/internal_market/accounting/ias/index_fr.htm.
The condensed half-year interim financial statements for the six months to June 30, 2016, as presented, have been prepared in compliance with IAS 34 "Interim Financial Reporting".
These interim financial statements do not include all the information required by IFRS for the preparation of financial statements. These notes should therefore be read in conjunction with the GTT financial statements established for the year ended December 31, 2015.
The financial statements are presented in thousands of euros, rounded to the nearest thousand euros, unless otherwise indicated.
The condensed financial statements are prepared in accordance with the same accounting principles and methods applied in the preparation of the Company's IFRS financial statements for the year ended December 31, 2015 (as described in Note 2 the Company's IFRS financial statements for the year ended December 31, 2015), with the exception of the following standards and amendments which are applicable from January 1, 2016:
| No. of standard | Name |
|---|---|
| Amendment to IAS 1 | Presentation of the financial statements: Disclosure Initiative |
| Amendments to IAS 16 and IAS 38 | Clarification of acceptable methods of depreciation and amortisation |
| Amendments to IAS 19 | Defined-benefit plans – employee contributions |
| Annual improvement cycle 2010- | |
| 2012 | |
| Annual improvement cycle 2012- | |
| 2014 |
The application of these standards and amendments has not had a significant effect on these IFRS financial statements.
In preparing these interim financial statements in accordance with IFRS, management has made judgments, estimates and assumptions that affect the book value of assets and liabilities, income and expenses, and the information mentioned in the notes.
Some financial accounting information has required significant estimations to be made: mainly deferred tax assets, provisions for risk, and retirement benefit plans.
On January 29, 2016, the Company received notification from the Korean competition authority (Korea Fair Trade Commission) informing it of the opening of an investigation into a possible abuse by the Company of its dominant position, because of its commercial practices in Korea. GTT clarifies that such an investigation is without prejudice to its conclusions. At this early stage, it is not possible to estimate either the length of the enquiry or its potential outcome. GTT believes that its business practices are compliant with the relevant competition laws and intends to fully cooperate with the KFTC.
On June 3, 2016, GTT opened its Shanghai (China) office.
In July 2016, the company signed two lines of credit agreements with financial institutions for a total amount of 25 million euros. These lines of credits were contracted with a pari passu clause, without any guarantees or security interests, no financial covenants, no restrictions on the distribution of dividends and with limited default conditions.
The amount of personnel expenses for the period is detailed below:
| In thousands of euros | June 2016 | June 2015 |
|---|---|---|
| Wages and salaries | 11,242 | 10,864 |
| Social security costs | 6,309 | 6,239 |
| Share-based payments(1) | 502 | 847 |
| Profit-sharing and incentive scheme | 2,966 | 2,989 |
| Personnel expenses | 21,019 | 20,939 |
(1) The method used to calculate share-based payments is set out in note 9.3.
| In thousands of euros | June 2016 | June 2015 |
|---|---|---|
| Tests and studies | 8,660 | 10,298 |
| Leasing, maintenance & insurance | 2,651 | 2,530 |
| External staff | 77 | 138 |
| Fees | 3,624 | 2,381 |
| Transport, travel & reception expenses | 4,360 | 3,674 |
| Postal & telecommunication expenses | 116 | 110 |
| Others | 1,213 | 981 |
| Total | 20,702 | 20,112 |
| In thousands of euros | June 2016 | June 2015 |
|---|---|---|
| Depreciation and amortisation | 1,624 | 1,410 |
| Provisions | 1,996 | 299 |
| Reversal of provisions | (673) | (2,382) |
| Depreciation, amortisation and provisions (Reversal) | 2,946 | (673) |
Allocations and reversals of provisions mainly concern litigation and current assets risks.
| In thousands of euros | June 2016 | June 2015 |
|---|---|---|
| Research tax credit | 3,380 | 2,184 |
| Competitiveness and employment tax credit (CICE) | 61 | 107 |
| Others | 273 | 757 |
| Other operating income and expense | 3,714 | 3,048 |
"Other operating income and expenses" mainly comprises the Research Tax Credit (3,380 thousand euros) and other operating income amounting to 286 thousand euros, corresponding to a Hydrocarbon Support Fund cash advance due in 2016.
| In thousands of euros | Land and Buildings |
Technical installations |
Leased assets |
Others | Total |
|---|---|---|---|---|---|
| Gross value as at 31.12.2014 | 5,030 | 28,920 | 3,593 | 7,812 | 45,355 |
| Acquisitions | 2,300 | 2,912 | - | 562 | 5,774 |
| Disposals | - | (52) | - | (544) | (596) |
| Gross value as at 31.12.2015 | 7,331 | 31,779 | 3,593 | 7,830 | 50,533 |
| Acquisitions | 88 | 1,355 | - | 72 | 1,514 |
| Disposals | (32) | (520) | - | (152) | (704) |
| Gross value as at 30.06.2016 | 7,387 | 32,614 | 3,593 | 7,750 | 51,343 |
| Accumulated depreciation as at | |||||
| 31.12.2014 | 635 | 24,217 | 2,156 | 3,750 | 30,757 |
| Depreciation | 184 | 1,757 | 180 | 459 | 2,580 |
| Reversal | - | (50) | - | (544) | (593) |
| Accumulated depreciation as at | |||||
| 31.12.2015 | 818 | 25,925 | 2,335 | 3,665 | 32,744 |
| Depreciation | 197 | 915 | 90 | 210 | 1,412 |
| Reversal | - | (18) | - | (110) | (128) |
| Accumulated depreciation as at | 1,015 | 26,823 | 2,425 | 3,765 | 34,028 |
| 30.06.2016 | |||||
| Net value as at 31.12.2014 | 4,396 | 4,703 | 1,437 | 4,062 | 14,598 |
| Net value as at 31.12.2015 | 6,512 | 5,855 | 1,257 | 4,165 | 17,789 |
| Net value as at 30.06.2016 | 6,371 | 5,791 | 1,168 | 3,985 | 17,315 |
In the absence of any external debt linked to the building of fixed assets, no interest costs are capitalised in compliance with IAS 23 - Borrowing costs.
Assets acquired under finance leases correspond to the building used since 2003 as the Company headquarters, as described in note 2.8 to the financial statements for the financial year ended December 31, 2015.
With regard to the building used since 2003 as the company headquarters, its historical acquisition cost under the first-time application of IFRS, was determined using the transfer price paid by GTT in January 2003 to the previous tenant in order to obtain the rights and obligations relative to the leasing contract for this building, increased by the outstanding capital element at the date of the lease transfer, to be amortised over the remaining term of the lease contract. GTT became the owner of this building at the end of contractual lease period in December 2005.
| In thousands of euros | Loans and receivables |
Held-to maturity financial assets |
Available-for sale financial assets |
Financial assets at fair value through profit or loss |
Total |
|---|---|---|---|---|---|
| Values as at 31.12.2014 | 466 | - | 12,470 | - | 12,936 |
| Acquisitions | 12 | - | 26 | 10,006 | 10,045 |
| Disposals | 65 | - | 1,426 | 7,500 | 8,991 |
| Other variations | - | - | (8,119) | 9,575 | 1,456 |
| Values as at 31.12.2015 | 413 | - | 2,952 | 12,082 | 15,445 |
| Acquisitions | 13 | - | 127 | - | 140 |
| Disposals | 136 | - | - | - | 136 |
| Other variations | - | - | (245) | 85 | (160) |
| Values as at 30.06.2016 | 290 | - | 2,834 | 12,166 | 15,290 |
The decrease in "Loans and receivables" during the first half of 2016 mainly corresponds to the partial repayment of a subsidiary advance.
The increase in "Available for sale financial assets" corresponds to the sale of UCITS collective investment units as part of the liquidity contract (see note 9.4) prior to their investment in GTT shares. Other variations of 245 thousand euros correspond to the fair value of equity investments (Level 3).
Other variations in "Financial assets at fair value through profit or loss" stem from the change in the accrued interest for these financial assets.
| Gross book value (in thousands of euros) | June 2016 | December 2015 |
Change |
|---|---|---|---|
| Trade and other receivables | 86,363 | 83,900 | +2,463 |
| Trade and other operating receivables | - | - | - |
| Tax and social security receivables | 24,356 | 28,569 | -4,213 |
| Other receivables | 551 | 927 | -376 |
| Prepaid expenses | 1,569 | 1,528 | +41 |
| Total other current assets | 26,476 | 31,024 | -4,548 |
| Total | 112,839 | 114,924 | -2,085 |
| Depreciation (in thousands of euros) | June 2016 | December 2015 |
Change |
| Trade and other receivables | 1,194 | 646 | +548 |
| Trade and other operating receivables | - | - | - |
| Tax and social security receivables | - | - | - |
| Other receivables | - | - | - |
| Prepaid expenses | - | - | - |
| Total other current assets | - | - | - |
| Total | 1,194 | 646 | +548 |
| Net book value (in thousands of euros) | June 2016 | December 2015 |
Change |
| Trade and other receivables | 85,168 | 83,254 | +1,915 |
| Trade and other operating receivables | - | - | - |
| Tax and social security receivables | 24,356 | 28,569 | -4,213 |
| Other receivables | 551 | 927 | -376 |
| Prepaid expenses | 1,569 | 1,528 | 41 |
| Total other current assets | 26,476 | 31,024 | -4,548 |
| Total | 111,645 | 114,278 | -2,633 |
The book value of trade receivables corresponds to a reasonable approximation of their fair value.
A provision for impairment was recognised for 100% of a trade receivable that has been outstanding for over two years.
| In thousands of euros | June 2016 | December 2015 |
Change |
|---|---|---|---|
| Trade and other payables | 8,700 | 11,187 | -2,487 |
| Tax and social security payables | 18,516 | 24,423 | -5,907 |
| Other debts | 16 | 4,180 | -4,164 |
| Deferred income | 68,656 | 89,244 | -20,589 |
| Other current liabilities | 87,188 | 117,847 | -30,659 |
| Total | 95,887 | 129,034 | -33,146 |
| In thousands of euros | June 2016 | December 2015 |
|---|---|---|
| Short-term investments | 58,548 | 58,517 |
| Cash and cash equivalent | 1,043 | 14,927 |
| Cash in balance sheet | 59,590 | 73,444 |
| Bank overdrafts and equivalent | - | - |
| Net cash position | 59,590 | 73,444 |
Cash equivalent mainly comprises term accounts and medium-term notes (MTN), stated at fair value (Level 2) and meeting the criteria for classification as cash equivalents.
As at June 30, 2016, the share capital comprised 37,078,357 shares with a nominal value of 0.01 euros.
The shareholders meeting held on May 18, 2016 approved the payment of an ordinary dividend of 2.66 euros per share for the year ended December 31, 2015 payable in cash.
As an interim dividend was paid on September 30, 2015 for 48,165,556 euros, the balance of 50,385,027 euros was paid on May 31, 2016.
| Date of allocation (1) |
Plan no. | Vesting period |
Minimum lock-up period |
Shares originally allocated |
Fair value of the share on the allocation date |
Expired shares |
Shares allocated at the end of the vesting period |
Existing shares as at June 30, 2016 |
|---|---|---|---|---|---|---|---|---|
| February 10, 2014 |
AFS 1 | 2 years | 2 years | 5,745 | €46 | 945 | 4,800 | - |
| February 10, 2014 |
AFS 2 | 2 to 4 years |
2 years | 250,000 | €24 | 41,670 | 83,330 | 125,000 |
| May 18, 2016 | AFS 3 | 2 years | 2 years | 16,000 | €10 | - | ||
| May 18, 2016 | AFS 4 | 2 to 4 years |
1 year | 15,150 | €21 | - | ||
| May 18, 2016 | AFS 5 | 2 years | - | 5,250 | €23 | - | ||
(1) The allocation date corresponds to the date on which the Board of Directors approved these allocation plans.
For these plans, the Board of Directors drew up the following acquisition conditions:
AFS plan no. 3: 100% of the shares are allocated subject to:
o The employees being present at the end of the vesting period
In application of the IFRS 2, an expense representing of the benefit granted to beneficiaries of these plans is recorded under "Personnel expenses" (operating income) (note 4.1).
For share-based plans benefiting all employees, the unit value is based on the share price when the plan is allocated and takes changes in headcount into account.
For share-based plans allocated to executive committee members, the unit value is based on the share price when the plan is allocated, weighted by the reasonable estimation of attaining the share allocation criteria.
The expense is calculated by multiplying these unit values by the estimated number of shares to be allocated. It is spread over the rights vesting period following the date of the decision by the Board of Directors on each plan, and according to the probability of performance criteria fulfilment.
For the period from January 1 to June 30, 2016, the expense recognised for the share-based plans no.1 and no.2 amounted to 502 thousand euros. It amounted to 847 thousand euros at June 30, 2015. No expenses were recorded for the plans nos.3, 4 and 5, decided by the Board of Directors on May 18, 2016, as the information to the concerned employees has not been done yet at the end of June 2016.
The Company entered into a liquidity contract on November 10, 2014. Under IAS 32, the buyback of treasury shares is deducted from equity. Treasury shares owned by the entity are not taken into account when calculating earnings per share. As at June 30, 2016, the Company holds 30,185 treasury shares.
| June 2016 | June 2015 | |
|---|---|---|
| Net income in euros | 60,513,583 | 54,229,113 |
| Average number of shares outstanding (excluding treasury shares) | 37,046,601 | 37,064,628 |
| - AFS plan no.1 | - | 5,745 |
| - AFS plan no. 2 | 125,000 | 250,000 |
| Number of diluted shares | 37,171,601 | 37,320,373 |
| Basic net earnings per share in euros | 1.63 | 1.46 |
| Diluted net earnings per share in euros | 1.63 | 1.45 |
Net earnings per share as at June 30, 2016 was calculated on the basis of a share capital comprising 37,046,601 shares, excluding treasury shares.
To date, the Company has allocated 125,000 free shares which have been included in the calculation of diluted net earnings per share.
Provisions for retirement indemnities are as follows:
| In thousands of euros | June 2016 | December 2015 |
|---|---|---|
| Closing balance of the value of the commitments | (2,074) | (1,536) |
| Closing balance of the fair value of the assets | 1,454 | 1,445 |
| Financial plan assets | (620) | (91) |
| Cost of unrecognised past services | - | - |
| Others | - | - |
| Provisions and prepaid expenses | 620 | 91 |
The change in the value of commitments and in the fair value of the retirement plan assets is as follows:
| In thousands of euros | June 2016 | December 2015 |
|---|---|---|
| Opening balance of the commitment value | (92) | (201) |
| Normal cost | (207) | (271) |
| Interest expense | (11) | (3) |
| Cost of past services | - | - |
| Actuarial (gains) and losses | (306) | 392 |
| Services paid | (5) | (9) |
| Closing balance of the value of the commitments | (620) | (91) |
| In thousands of euros | Provisions for litigation |
Current | Non-current |
|---|---|---|---|
| Values as at 31.12.2014 | 5,742 | - | 5,742 |
| Provisions | 1,808 | - | 1,808 |
| Reversal | (4,351) | - | (4,351) |
| Reversal of provisions not used | - | - | - |
| Values as at 31.12.2015 | 3,198 | - | 3,198 |
| Provisions | 1,236 | - | 1,236 |
| Reversal | (673) | - | (673) |
| Reversal of provisions not used | - | - | - |
| Values as at 30.06.2016 | 3,761 | - | 3,761 |
Other provisions cover potential risks in disputes between GTT and former employees and a potential risk in receivables in the amount of 2.3 million euros.
The reversals are due to an adjustment made to obsolete provisions.
On January 29, 2016, the Company received notification from the Korean competition authority (Korea Fair Trade Commission) informing it of the opening of an investigation into a possible abuse by the Company of its dominant position, because of its commercial practices in Korea. At this early stage, it is not possible to estimate either the length of the enquiry or its potential outcome. GTT believes that its business practices are compliant with the relevant competition laws and intends to fully cooperate with the KFTC.
| In thousands of euros | June 2016 | June 2015 |
|---|---|---|
| Current tax | (10,444) | (9,260) |
| Deferred tax | (13) | (277) |
| Income tax on profit | (10,457) | (9,537) |
| Distribution tax | (1,512) | (1,290) |
| Total income tax | (11,969) | (10,827) |
The distribution tax is a tax on the dividends paid during the first half of 2016, amounting to 3% of the total amount distributed.
| June 2016 | June 2015 | |
|---|---|---|
| Net income | 60,514 | 54,229 |
| Income tax charge | 11,969 | 10,827 |
| Profit before tax | 72,482 | 65,056 |
| Ordinary tax rate | 15.00% | 15.00% |
| Theoretical tax burden | 10,872 | 9,758 |
| Permanent differences | (193) | 193 |
| Tax group adjustments | (25) | (370) |
| 3.3% tax supplement | 310 | 283 |
| Tax on dividend | 1,512 | 1,290 |
| Research tax credit | (507) | (327) |
| Total income tax charge | 11,969 | 10,827 |
According to the revised application of IFRIC 21, property tax and the social solidarity contribution (Contribution sociale de solidarité) should be fully recognised as at January 1 of the year in which they are paid.
| In thousands of euros | June 2016 | December 2015 |
|---|---|---|
| On other temporary difference | 826 | 852 |
| On regulated provisions | (114) | (143) |
| On IFRIC 21 | 5 | |
| On buildings acquired via financial lease | (175) | (189) |
| On retirement commitments | 93 | 14 |
| On fair value of short-term investments | 5 | 3 |
| On discounting of advances from Hydrocarbon | ||
| Support Fund | (9) | (12) |
| On revaluation of non-consolidated investments | (242) | (242) |
| Deferred tax Assets/(Liabilities) | 389 | 282 |
The Company is active in only one operating segment within the meaning of IFRS 8 – Operating Segments.
The Company's activities are closely related, and involve the production of services related to the construction of storage facilities for transporting liquefied natural gas (LNG). At present, there is no "Principal Operating Decision Maker" who would receive specific reports on several types of products and services.
Clients are mainly located in Asia. It is currently not considered relevant to make a distinction between countries in the region.
Assets and liabilities are located in France.
The GTT financial statements are consolidated according to the full consolidation method in the consolidated financial statements prepared by ENGIE.
Transactions with shareholder companies are as follows:
| ENGIE (formerly GDF SUEZ) in thousands of euros | June 2016 | Dec-2015 |
|---|---|---|
| Payables | - | 183 |
| Trade and other receivables | 94 | 98 |
| Studies (Income) | 79 | 114 |
| Social security fees and Costs (Income) | - | 6 |
| Supplies and travel expenses | 70 | |
| Outsourced tests and studies (Expenses) | - | 419 |
Transactions with French subsidiaries are as follows:
| CRYOVISION in thousands of euros | June 2016 | Dec-2015 |
|---|---|---|
| Trade and other payables | 137 | 26 |
| Trade and other receivables | 74 | 75 |
| Financial current accounts | 23 | 326 |
| Rent (Income) | 4 | 8 |
| Personnel procurement (Income) | 144 | 334 |
| Miscellaneous Rebilling (Income) | 16 | 29 |
| Equipment (Fixed assets) | - | 10 |
| Outsourced tests and studies (Expenses) | 114 | 115 |
| Cryometrics in thousands of euros | June 2016 | Dec-2015 |
| Trade and other receivables | 2,019 | 2,003 |
| Financial current accounts | 13 | 1 |
| Miscellaneous Rebilling (Income) | 23 | 1,669 |
Transactions with foreign subsidiaries are as follows:
| GTT NA in thousands of euros | June 2016 | Dec-2015 |
|---|---|---|
| Trade and other payables | 1,204 | 657 |
| Trade and other receivables | 1,202 | 736 |
| Financial current accounts | 21 | 21 |
| Personnel procurement (Income) | 222 | 484 |
| Outsourced tests and studies (Expenses) | 1,276 | 2,305 |
| GTT TRAINING in thousands of euros | June 2016 | Dec-2015 |
|---|---|---|
| Trade and other payables | - | 89 |
| Trade and other receivables | 1 | 2 |
| Financial current accounts | 158 | 158 |
| Loans | 185 | 314 |
| Rent (Income) | 3 | - |
| Outsourced tests and studies (Expenses) | 213 | 637 |
| GTT SEA in thousands of euros | June 2016 | Dec-2015 |
| Trade and other payables | (85) | (7) |
| Trade and other receivables | 11 | 53 |
| Financial current accounts | - | 72 |
| Personnel procurement (Income) | 71 | 53 |
| Outsourced tests and studies (Expenses) | 234 | 93 |
| in thousands of euros | June 2016 | June 2015 |
|---|---|---|
| Wages and bonuses | 668 | 485 |
| Payments in shares (IFRS 2) | - | - |
| Expenses for payments in shares (IFRS 2) | - | - |
| Other long-term benefits | 88 | 65 |
The compensation shown above at the end of June 2016 includes the nomination of Julien Burdeau as Chief Operating Officer of GTT since October 2015.
On June 30, 2016, the company entered into a line of credit agreement with BNP PARIBAS for 25 million euros for a 5-year period with the possibility of a renewal for two years, with a pari passu clause, without any guarantees or security interests, without any financial covenant, without restrictions on the distribution of dividends and with limited defaulting conditions. This line of credit was not used between June 1 and June 30, 2016.
This is a free translation into English of the statutory auditors' review report on the half-yearly financial information issued in French and it is provided solely for the convenience of Englishspeaking users. This report also includes information relating to the specific verification of information given in the group's half-yearly management report.
This report should be read in conjunction with and construed in accordance with French law and professional standards applicable in France.
In compliance with the assignment entrusted to us by your annual general meeting and in accordance with the requirements of article L. 451-1-2 III of the French monetary and financial code ("Code monétaire et financier"), we hereby report to you on:
These condensed half-yearly financial statements are the responsibility of your board of directors. Our role is to express an opinion on these financial statements based on our review.
We conducted our review in accordance with professional standards applicable in France. A review of interim financial information mainly consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with professional standards applicable in France and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed half-yearly consolidated financial statements are not prepared in all material respects in accordance with IAS 34 – the standard of the IFRSs as adopted by the European Union applicable to interim financial information.
We have also verified the information provided in the half-yearly management report in respect of the condensed half-yearly financial statements subject to our review.
We have no matters to report on the fair presentation and consistency of this information with the condensed half-yearly financial statements.
Paris-La Défense, July 21, 2016
The statutory auditor ERNST & YOUNG Audit French original signed by
Aymeric de La Morandière
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