Jeronimo Martins — Interim / Quarterly Report 2018

Feb 27, 2019

Full Year 2018 Results

Lisbon, 27 February 2019

+6.5% SALES TO €17.3 BN (+6.8% at constant exchange rates)

+4.1% EBITDA TO €960 MN (+3.9% at constant exchange rates)

+4.1% NET PROFIT

TO €401 MN

+3.2% EPS TO €0.65 (excluding

Operational performance sets new records with the Group reinforcing its leadership positions in very demanding environments

• CONSOLIDATED SALES grew 6.5% (+4.3% in Q4) with Group LFL of 3.1% (2.1% in Q4) Biedronka sales increased 5.8% in zloty (+4.6% in Q4), with LFL of 2.7% (+1.2% in Q4) Pingo Doce sales grew 4.6% (+3.2% in Q4), with LFL (excl. fuel) of 3.5% (+2.8% in Q4) Recheio sales increased 4.0% (+5.6% in Q4), with LFL of 4.4% (+6.6% in Q4) Ara sales in local currency grew 53.9% (+40.8% in Q4) Hebe sales in local currency grew 25.0% (+27.5% in Q4)
• GROUP EBITDA increased 4.1% to €960 million
• NET PROFIT attributable to JM was €401 million, 4.1% higher than in 2017
• FUNDS FROM OPERATIONS grew 5.4% to €788 million
• NET DEBT was €80 million as at the end of the year; gearing stood at 3.9%
• PRE-TAX ROIC was 26.5%
• In line with the policy in force, at the General Shareholders' Meeting, the Board of Directors will propose a DIVIDEND payment of €204.2 million, the equivalent of €0.325 per share (gross value)

MESSAGE FROM THE CHAIRMAN AND CEO

Other Profits/Losses)

PEDRO SOARES DOS SANTOS

'2018 was a year of great achievements. Despite the new challenges brought by the Sunday Ban in Poland, Biedronka delivered LFL growth, stable EBITDA margin and market share gains, proving its strength, flexibility, and resilience.

The Group fulfilled once again its planned objectives and delivered very positive growth in sales and earnings. This performance is particularly remarkable given the high investment level, the continued improvement in our employees' compensation packages, and the progress made towards reaching our sustainability goals.

For 2019, we expect more challenges in our markets and more uncertainty in the international context. I believe, however, that we entered the new year with reinforced operations and that our strategic priorities remain valid: to continue investing in expansion and growth, strengthen leadership positions, and preserve our profitability profile.'

OUTLOOK FOR 2019

We entered 2019 confident of our ability to seize growth opportunities and reinforce market positions.

In Poland, we expect the continuation of a good economic performance during 2019.

Biedronka is well prepared to continue adapting to the progressive implementation of the Sunday ban regulation. The 2019 LFL will nonetheless reflect the effect of 13 fewer trading days and of subdued basket inflation.

The Company is continuously improving the quality, the mix and the reach of its store network. Building on the successful performance of its smaller stores, Biedronka will add c.50 openings of slightly smaller units to the c.100 openings (c.60 net additions) of its most common format.

Hebe will continue to assertively address the challenges posed by the Sunday ban while expanding the network (c.50 new stores) and improving profitability. The banner will also further increase its convenience through an omnichannel approach to the Health & Beauty Polish market.

In Portugal, despite the expected slowdown in economic growth, we anticipate a stable pattern in food consumption.

Pingo Doce and Recheio will continue focused on gaining market share and on being the consumer and client's first choice. Our supermarket banner should maintain its store opening pace and continue its refurbishment programme. Enhanced customer experience, together with further promotional dynamics and an overall improved offer, including private brands, with locally sourced products, will remain key to the strategy.

In Colombia, we expect a positive consumption outlook despite some short-term volatility in consumer confidence.

Ara will continue to prioritise the scale-up of its physical infrastructure, maintaining its store expansion pace and preparing to open two new distribution centres by the end of 2019. At the same time the Company will keep working on its sales and profitability drivers to reduce the start-up losses at EBITDA level.

All in all, we expect the focus on profitability to continue bearing fruits in both our established and newer businesses. At EBITDA level, Hebe is expected to reach breakeven and Ara's losses should fall by 20-25% versus 2018, at constant exchange rate.

In 2019, the Group plans to invest €700-750 mn in three main areas: i. the network expansion of Biedronka, Hebe, Pingo Doce and Ara, ii. the ongoing upgrading of existing stores, and iii. the improvement of the operational and logistic infrastructure across the three markets.

The Group's financial strength will support the delivery of its growth targets and provide the flexibility to capture any potential non-organic growth opportunity that fits with its strategic vision.¹

¹ Guidance provided on a pre IFRS 16 basis

KEY FIGURES

CONSOLIDATED RESULTS

(Million Euro)	2018		2017		D	Q4 18		Q4 17		D
Net Sales and Services	17,337		16,276			6.5% 4,537		4,350		4.3%
Gross Profit		3,760 21.7%		3,458 21.2%	8.7%		991 21.8%		931 21.4%	6.4%
Operating Costs		-2,800 -16.2%		-2,536 -15.6%	10.4%		-740 -16.3%		-678 -15.6%	9.1%
EBITDA	960	5.5%	922	5.7%	4.1%	250	5.5%	253	5.8%	-0.9%
Depreciation		-364 -2.1%		-331 -2.0%	9.9%		-94 -2.1%		-89 -2.1%	5.5%
EBIT	596	3.4%	591	3.6%	0.8%	156	3.4%	163	3.8%	-4.5%
Net Financial Costs		-25 -0.1%		-12 -0.1%	106.4%	-	6 -0.1%	-	3 -0.1%	75.7%
Gains in Joint Ventures and Associates	0	0.0%	0	0.0%	n.a.	0	0.0%	0	0.0%	n.a.
Other Profits/Losses	-	9 -0.1%		-14 -0.1%	n.a.	-	2 -0.1%	-	3 -0.1%	n.a.
EBT	562	3.2%	565	3.5%	-0.5%	148	3.3%	157	3.6%	-5.8%
Income Tax		-132 -0.8%		-152 -0.9%	-13.3%		-30 -0.7%		-51 -1.2%	-41.8%
Net Profit	430	2.5%	413	2.5%	4.2%	119	2.6%	106	2.4%	11.5%
Non Controlling Interests		-29 -0.2%		-27 -0.2%	5.8%		-10 -0.2%	-	6 -0.1%	54.3%
Net Profit Attributable to JM	401	2.3%	385	2.4%	4.1%	109	2.4%	100	2.3%	8.8%
EPS (€)	0.64		0.61		4.1%	0.17		0.16		8.8%
EPS without Other Profits/Losses (€)	0.65		0.63		3.2%	0.18		0.16		8.8%

CONSOLIDATED BALANCE SHEET

(Million Euro)	2018	2017
Net Goodwill	637	647
Net Fixed Assets	3,842	3,639
Total Working Capital	-2,454	-2,496
Others	70	54
Invested Capital	2,096	1,843
Total Borrowings	624	529
Leasings	15	8
Accrued Interest	2	4
Marketable Sec. & Bank Deposits	-562	-712
Net Debt	80	-170
Non Controlling Interests	238	225
Share Capital	629	629
Reserves and Retained Earnings	1,149	1,159
Shareholders Funds	2,016	2,013
Gearing	3.9%	-8.5%

CASH FLOW

(Million Euro)	2018	2017
EBITDA	960	922
Interest Payment	-24	-15
Other Financial Items	0	0
Income Tax	-148	-160
Funds From Operations	788	747
Capex Payment	-717	-662
Change in Working Capital	70	168
Others	- 5	- 4
Free Cash Flow	135	249

SALES PERFORMANCE

Group net sales grew 6.5% to €17.3 bn (+6.8% at constant exchange rates), with a LFL increase of 3.1%.

This performance was delivered despite 21 fewer trading days in Poland and low food inflation in our three geographies.

Biedronka, Pingo Doce and Recheio strengthened their commercial dynamics and value propositions to consumers and clients, while Ara progressed on its expansion plan and improved its marketing-mix management to further drive sales.

Sales (Million Euro)

In Poland, the food retail sector was (and remains) highly promotional, in part because of the efforts of retailers to mitigate the impact of the Sunday ban.

Food inflation fell from 4.2% in 2017 to 2.6% in 2018, namely as a result of deflation experienced in some commodities and fresh produces.

In a demanding competitive environment, Biedronka's reinforced consumer focus yielded a gain in market share. The banner was able to absorb, to a large extent, the impact of having 21 fewer trading days in the year while preserving the efficiency of its operation.

Sales reached €11.7 bn, growing 5.6% in euros and 5.8% in local currency. On a LFL basis, sales increased 2.7% having been impacted in c.1.3p.p. by the Sunday ban.

Despite the effect of the Sunday closures, Hebe's sales reached €207 mn, growing 24.7% in euros and 25.0% in local currency. This performance confirms the strength of its current value proposition and the banner's capacity to gain relevance in the Polish market.

In Portugal, the food retail sector remained highly promotional despite a favourable consumer environment. Food inflation was low at 0.7%.

The competitive strengths and sales dynamics of both Pingo Doce and Recheio resulted in their market outperformance.

Pingo Doce delivered sales growth of 4.6% to €3.8 bn, with a remarkable LFL performance (excl. fuel) of 3.5%.

Recheio had another strong year, registering sales of €980 mn, a 4.0% increase versus the

previous year. On a LFL basis, the top line grew 4.4%. In Colombia, we operated in an environment of improving consumer confidence despite some

volatility in the second half of the year.

Ara sales amounted to €599 mn, growing 47.9% in local currency and 53.9% at constant exchange rates. The Company's top priority is to expand the store network and continue to improve the relevance of its offer in different regions. Ara's private brand, one of the company's strategic pillars, continued to gain acceptance in all regions, representing 44% of sales.

RESULTS PERFORMANCE

Group EBITDA reached €960 mn in 2018, increasing 4.1% relative to the previous year (+3.9% at constant exchange rates). Excluding the impact of Ara and Hebe, EBITDA increased 3.2%.

The investments implemented by our banners are motivated by two goals:

• 1. To reinforce their competitive positions, by improving their offers and shopping experience, while expanding their store networks;
• 1. To create the conditions for better remuneration packages and compensation mechanisms to its teams.

A set of well-crafted commercial actions improved our sales mix and drove profitable growth.

EBITDA & EBITDA Margin

In Poland, Biedronka successfully overcame the effects of the Sunday ban both at top line and operational efficiency level. EBITDA reached €850 mn, 5.6% higher than in the previous year (+5.8% at constant exchange rate). The EBITDA margin was 7.3%, which is in line with its value in 2017.

In a highly competitive environment with additional cost pressures, this delivery resulted from careful margin mix management and strong cost discipline.

Pingo Doce's EBITDA of €188 mn

was broadly in line with the previous year. The strong sales performance softened the impact of the remuneration package improvement implemented throughout Q4 17. Nonetheless, the EBITDA margin was 4.9%, down from 5.1% in 2017.

Recheio delivered EBITDA of €53 mn, 5.1% ahead of 2017. The EBITDA margin was 5.4% (5.3% in 2017). The strong performance reflected a strategy focused on growing sales and maximising the benefits of the benign consumer backdrop.

Ara and Hebe registered joint EBITDA losses of €80 mn, with Ara accounting for c.90% of the total. The depreciation of the zloty and the peso helped reduce the value of the losses in euros. The comparable losses in 2017 were €85 mn.

As planned and despite the impact of the Sunday ban, Hebe continued to register a declining trend in its EBITDA losses. In Colombia, the improvement in the sales mix and larger scale of operation helped stabilize the losses despite the significant costs related to store and logistic expansion.

Net financial costs were €-25 mn, increasing relative to the previous year as a result of the higher interest-bearing debt in foreign currencies (Polish Zloty and Colombian Peso). We expect further future increases in net financial costs associated with our expansion in Colombia.

Other profits/losses of €-9 mn, are mainly attributable to restructuring costs.

Group net profit was €401 mn, 4.1% higher than in 2017, reflecting a very positive operating performance.

CAPEX CASH FLOW NET DEBT In 2018, Group capex amounted to €658 mn of which 41% was allocated to expansion (new stores and distribution centres). The remainder was devoted to store and distribution centre refurbishing projects, as well as to normal maintenance expenditures.

At Biedronka, the investment programme for the year totalled €372 mn. This programme included the opening of 122 stores (77 net additions), 230 refurbishments, and the improvement of the logistics infrastructure.

Hebe accelerated its store opening pace, inaugurating 51 new locations during the year.

Pingo Doce invested €90 mn in three areas: i. 10 new stores, eight of which are part of the Pingo Doce & Go convenience concept, ii. 29 in-depth refurbishments and iii. 21 lighter refurbishments.

In Colombia, Ara invested €118 mn, opening 143 stores over the course of the year. As the Company evolves in its knowledge of the market, it has managed to reduce its investment per store without compromising store performance.

Cash flow generated in the year reached €135 mn, down from €249 mn a year ago due to the higher capex payment and the lower release of funds from working capital, which was particularly favourable in 2017. Nevertheless, funds from operations grew by 5.4% to €788 mn.

Net debt evolved from a positive net cash position in 2017 to €80 mn of debt in 2018. The balance sheet, with gearing standing at 3.9%, remains strong even after the dividend payment of €385.2 mn in May 2018. This dividend represented an exceptional payout of c.100%, nearly the double of what would have resulted from applying the Company's dividend policy.

DIVIDEND PROPOSAL

In line with the dividend policy in place, the Board of Directors will propose, at the Annual General Shareholder's Meeting, the distribution of €204.2 mn in dividends.

This proposal corresponds to a gross dividend of €0.325 per share, excluding the 859,000 own shares in the portfolio, representing a payout of c.50% of ordinary consolidated net earnings.

The proposed dividend distribution leaves the Group with full flexibility to accelerate its expansion plans and to take advantage of any potential non-organic growth opportunities while maintaining a low level of net debt exposure.

IFRS 16 APPLICATION

From January 1 on, 2019 Jerónimo Martins will have to report its consolidated accounts in accordance with IFRS 16. As a result, rents expense will be replaced by interest and depreciation on the Income Statement.

Jerónimo Martins decided to adopt the modified retrospective method in the Group accounts for two reasons. First, the Group companies have a variety of lease agreements, some of which are longstanding in nature and have been signed in different legal contexts and regimes. Second, some of our major companies (including all polish subsidiaries) will not apply this norm in its statutory accounts.

As the adopted method does not require any restatement of prior years, the information presented in note number 2 in this release is merely illustrative of the impact that IFRS 16 would have had if it had been adopted in the FY 2018 accounts.

2019 results will be reported from Q1 with the application of the new standard. To allow comparison with 2018, results will also be presented without the impact of IFRS 16.

The application of the standard will not affect cash, nor will it change the way we evaluate the performance or manage the business.

+351 21 752 61 05 investor.relations@jeronimo-martins.com Cláudia Falcão claudia.falcao@jeronimo-martins.com Hugo Fernandes hugo.fernandes@jeronimo-martins.com

FINANCIAL CALENDAR

General Shareholders Meeting: 11 April 2019

Q1 2019 Results: 26 April 2019 (before the market opening)

H1 2019 Results: 25 July 2019 (after the market close)

9M 2019 Results: 23 October 2019 (after the market close)

DISCLAIMER

Statements in this release that are forward-looking are based on current expectations of future events and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. The risks and uncertainties relate to factors that are beyond Jerónimo Martins' ability to control or estimate precisely, such as general economic conditions, credit markets, foreign exchange fluctuations, and regulatory developments.

Except as required by any applicable law or regulation, Jerónimo Martins assumes no obligation to update the information contained in this release or to notify a reader in the event that any matter stated herein changes or becomes inaccurate.

APPENDIX INCOME STATEMENT BY FUNCTIONS

(Million Euro)	2018	2017
Net Sales and Services	17,337	16,276
Cost of Sales	-13,577	-12,818
Gross Profit	3,760	3,458
Distribution Costs	-2,874	-2,606
Administrative Costs	-289	-261
Other Operating Profits/Losses	- 9	-14
Operating Profit	587	577
Net Financial Costs	-25	-12
Profit Before Taxes	562	565
Income Tax	-132	-152
Profit Before Non Controlling Interests	430	413
Non Controlling Interests	-29	-27
Net Profit Attributable to JM	401	385

SALES BREAKDOWN

(Million Euro)	2018		2017		D %		Q4 18			Q4 17	D %
		% total			% total excl. FX Euro			% total			% total excl. FX	Euro
Biedronka	11,691	67.4%		11,075 68.0%	5.8%	5.6%		3,059 67.4% 2,972 68.3%			4.6%	2.9%
Pingo Doce	3,835	22.1%		3,667 22.5%		4.6%		1,006 22.2%		975 22.4%		3.2%
Recheio	980	5.7%	942	5.8%		4.0%		242 5.3%	229	5.3%		5.6%
Ara	599	3.5%	405		2.5% 53.9% 47.9%			160 3.5%	117		2.7% 40.8% 37.2%
Hebe	207	1.2%	166		1.0% 25.0% 24.7%			64 1.4%	51		1.2% 27.5% 25.5%
Others & Cons. Adjustments	24	0.1%	20	0.1%		15.4%		6 0.1%	6	0.1%		-2.3%
Total JM	17,337	100%		16,276 100%	6.8%	6.5%		4,537 100% 4,350 100%			5.5%	4.3%

SALES GROWTH

		Total Sales Growth							LFL Sales Growth
					Q1 18 Q2 18 H1 18 Q3 18 9M 18 Q4 18 2018 Q1 18 Q2 18 H1 18 Q3 18 9M 18 Q4 18 2018
Biedronka
Euro			15.6% 2.2% 8.6% 2.6% 6.5%			2.9% 5.6%
PLN			11.9% 3.3% 7.5% 3.7% 6.2%					4.6% 5.8% 8.6% 0.6% 4.5% 0.8% 3.2%					1.2% 2.7%
Pingo Doce	7.1%		2.3% 4.6% 6.0% 5.1%					3.2% 4.6% 5.8% 0.7% 3.1% 4.7% 3.7%					2.8% 3.5%
Excl. Fuel	7.7%		2.4% 4.9% 5.9%					5.3% 3.2% 4.7% 6.4% 0.7% 3.4% 4.6%					3.8% 2.8% 3.5%
Recheio	4.2%		2.9% 3.5% 3.6% 3.5%					5.6% 4.0% 3.6% 2.6% 3.0% 4.9% 3.7%					6.6% 4.4%

STORE NETWORK

				Openings		Closings
Number of Stores	2017	Q1 18	Q2 18	Q3 18	Q4 18	2018	2018
Biedronka	2,823	11	19	24	68	45	2,900
Pingo Doce	422	0	3	5	2	0	432
Recheio	43	0	1	0	0	2	42
Ara	389	25	25	36	57	0	532
Hebe	182	11	9	7	24	3	230

Sales Area (sqm)	2017	Openings				Closings/Remodellings	2018
		Q1 18	Q2 18	Q3 18	Q4 18	2018
Biedronka*	1,853,075	8,378	14,676	19,405	50,766	13,196	1,933,104
Pingo Doce	503,897	0	764	2,456	231	594	506,754
Recheio	131,997	0	3,942	0	0	2,113	133,826
Ara	133,692	9,010	8,939	12,185	18,178	0	182,005
Hebe	43,053	2,719	2,376	1,746	5,604	462	55,035

* Restated figure from 1,856,992 published in 2017 FY

EBITDA BREAKDOWN

(Million Euro)	2018	Mg	2017	Mg
Biedronka	850	7.3%	805	7.3%
Pingo Doce	188	4.9%	188	5.1%
Recheio	53	5.4%	50	5.3%
Others & Cons. Adjustments	-131	n.a.	-122	n.a.
JM Consolidated	960	5.5%	922	5.7%

FINANCIAL RESULTS

(Million Euro)	2018	2017
Net Interest	-20	-12
Exchange Differences	-1	3
Others	-4	-4
Financial Results	-25	-12

CAPEX

(Million Euro)	2018	Weight	2017	Weight
Biedronka	372	57%	354	49%
Distribution Portugal	118	18%	130	18%
Ara	118	18%	169	23%
Others	51	8%	71	10%
Total CAPEX	658	100%	724	100%

WORKING CAPITAL

(Million Euro)	2018	2017
Inventories	978	847
in days of sales	21	19
Customers	55	56
in days of sales	1	1
Suppliers	-2,960	-2,849
in days of sales	-62	-64
Trade Working Capital	-1,928	-1,946
in days of sales	-41	-44
Others	-526	-551
Total Working Capital	-2,454	-2,496
in days of sales	-52	-56

NET DEBT

(Million Euro)	2018	2017
Long Term Debt	278	232
as % of Total Borrowings	44.5%	43.8%
Average Maturity (years)	2.9	2.4
Other Debt	278	232
Short Term Debt	347	298
as % of Total Borrowings	55.5%	56.2%
Total Borrowings	624	529
Average Maturity (years)	1.5	1.4
Leasings	15	8
Accrued Interest & Hedging	2	4
Marketable Securities & Bank Deposits	-562	-712
Net Debt	80	-170
% Debt in Euros (Total Borrowings + Leasings)	7.8%	24.3%
% Debt in Zlotys (Total Borrowings + Leasings)	47.4%	44.8%
% Debt in Colombian Pesos (Total Borrowings + Leasings)	44.8%	30.9%

NOTES 1. DEFINITIONS

Like For Like (LFL) sales: sales made by stores that operated under the same conditions in the two periods. Excludes stores opened or closed in one of the two periods. Sales of stores that underwent profound remodelling are excluded for the remodelling period (store closure).

Gearing: Net Debt / Shareholder Funds

2. IFRS 16 ILLUSTRATIVE IMPACT (non-audited)

(Million Euro)	2018	Adjustments	2018 Illustrative
	Reported		Under IFRS 16
Net Sales and Services	17,337	-	17,337
Gross Profit	3,760	-	3,760
Operating Costs	-2,800	369	-2,431
EBITDA	960	369	1,329
Depreciation	-364	-295	-659
EBIT	596	74	670
Net Financial Costs	-25	-129	-155
Gains in Joint Ventures and Associates	0	-	0
Other Profits/Losses	- 9	-	- 9
EBT	562	-56	506
Income Tax	-132	9	-123
Net Profit	430	-47	383
Non Controlling Interests	-29	3	-25
Net Profit Attributable to JM	401	-43	358

BALANCE SHEET

(Million Euro)	2018 Reported	Adjustments	2018 Illustrative
			Under IFRS 16
Net Goodwill	637	-	637
Net Fixed Assets	3,842	-	3,842
Right of Use (RoU)	-	2,411	2,411
Total Working Capital	-2,454	-13	-2,467
Others	70	-	70
Invested Capital	2,096	2,398	4,494
Net Debt	80	2,398	2,478
Shareholders Funds	2,016	-	2,016

EBITDA MARGIN

	2018	2018 lllustrative
	Reported	Under IFRS 16
Biedronka	7.3%	9.5%
Pingo Doce	4.9%	6.6%
Recheio	5.4%	5.9%
JM Consolidated	5.5%	7.7%

3. P&L RECONCILIATION NOTE

Following ESMA guidelines on Alternative Performance Measures from October 2015

Income Statement in this Release	Income Statement by Functions in the Consolidated Report & Accounts - 2018 Results
Net Sales and Services	Net sales and services
Gross Profit	Gross profit
Operating Costs	Includes headings of Distribution costs; Administrative costs; Other operating costs and excludes Depreciations of €-363.7 mn
EBITDA
Depreciation	Value reflected in the Other operating costs by nature note
EBIT
Net Financial Costs	Net financial costs
Gains in Joint Ventures and Associates	Gains (losses) in joint ventures and associates
Other Profits/Losses	Includes headings of Other operating profits/losses; Gains in disposal of business (when applicable) and Gains (losses) in other investments
EBT
Income Tax	Income tax
Net Profit
Non-Controlling Interests	Non-Controlling interests

Net Profit Attributable to JM

Balance Sheet in this Release	Balance Sheet in the Consolidated Report & Accounts - 2018 Results
Net Goodwill	Value reflected in Intangible assets note
Net Fixed Assets	Includes the headings Tangible and Intangible assets excluding the Net goodwill value (€637.5 mn)
Total Working Capital	Includes the headings Current trade debtors, accrued income and deferred costs; Inventories; Biological assets; Trade creditors, accrued costs and deferred income; Employee benefits; the value of €3.8 mn Cash and cash equivalents (note - Cash and cash equivalents) and the value of €-12.7 mn related to 'Others' due to its operational nature. Excludes the value of €-1.8 mn related to Interest accruals and deferrals (note - Financial debt)
Others	Includes the headings Investment property; Investments in joint ventures and associates; Other financial investments; Non-Current trade debtors, accrued income and deferred costs; Deferred tax assets and liabilities; Income tax receivable and payable; and Provisions for risks and contingencies. Excludes the value of €19.4 mn related to collateral deposits associated to Financial debt (note - Trade debtors, accrued income and deferred costs); and also the value of €-12.7 mn related to Others due to its operational nature
Invested Capital
Total Borrowings	Includes the heading Borrowings excluding Leasings
Leasings	Value reflected in Borrowings note
Accrued Interest & Hedging	Includes the heading Derivative financial instruments and the value of €-1.8 mn related to Interest accruals and deferrals (value reflected in note - Financial debt)
Marketable Sec. & Bank Deposits	Includes the heading Cash and cash equivalents and the value of €19.4 mn related to collateral deposits associated to Financial debt (reflected in Trade debtors note) and excludes the value of €3.8 mn in Cash and cash equivalents (reflected in note - Cash and cash equivalents)
Net Debt
Non-Controlling Interests	Non-Controlling interests
Share Capital	Share capital
Reserves and Retained	Includes the heading Share premium, Own shares, Other

Shareholders' Funds

Cash Flow in the Consolidated Report & Accounts Cash Flow in this Release RECONCILIATION - 2018 Results NOTE EBITDA Included in the heading of Cash generated from operations Interest Payment Includes the headings of Interest paid and Interest received Other Financial Items Dividends received Income Tax Income tax paid Funds from Operations Includes the headings Disposal of tangible assets; Disposal of intangible assets; Disposal of other financial and Capex Payment investment property; Acquisition of tangible fixed assets; Acquisition of intangible assets; Acquisition of other financial investments and investment property Change in Working Capital Included in the heading of Cash generated from operations	Following ESMA guidelines on Alternative Performance Measures from October 2015			5.
					CASH FLOW
Includes the headings disposal of business Others applicable), being the remaining amount included in the heading Cash generated from operations
Free Cash Flow

February 27, 2019 | 15