Groupe Eurotunnel (Paris:GET)
-- Revenues: further increase to EUR473 million (+14%)
-- EBITDA improved to EUR205 million (+3%)
-- Growth in trading profit to EUR129 million (+6%)
-- Net profit of EUR5 million
-- The cross-Channel Fixed Link:Revenues increased significantly to EUR370 million (+10%),
including an 18% increase in Shuttle revenuesTraffic growth:
Truck Shuttles (+20%), Passenger Shuttles (cars +4%, coaches
+6%)
Eurostar passengers travelling through the Tunnel (+3%)
-- Europorte : continued growth in revenues (+36%)
Jacques Gounon, Chairman and Chief Executive Officer of Groupe
Eurotunnel SA, stated,"This first half year has been very
satisfactory: traffic has continued to grow in a highly competitive
market due to a distinct service offering. The financial
performance is sound, generating a very good level of
cash-flow."
Key events in the first half of the year
-- Eurotunnel has prepared for the Olympic Games with the addition of
an extra half Shuttle, to transport passenger vehicles through
the
Channel Tunnel. At the same time, the speed of the Passenger
Shuttles
has been increased to 160 kph (normally 140kph), reducing the
crossing
time to 30 minutes (normally 35 minutes). As part of its
ongoing
partnership with Eurolines, coach transport provider for the
Olympic
Games, the timetable has been intensified in order to enable
high
levels of coaches to cross early in the morning, to ensure
that
spectators can arrive in London in time for the morning sessions
of
the Olympic events. Additional booths have been put into service
to
speed up frontier controls and increase the flow of traffic.
During
the Olympic Games significant peaks of traffic are expected
between
the Continent and the UK.
-- Eurotunnel Le Shuttle broke new traffic records during the The
Queen's Diamond Jubilee celebrations, transporting for the first
time
more than 10,000 passenger vehicles in 24 hours in one
direction, from
Folkestone (Kent) to Coquelles (Pas-de-Calais). On Friday 1
June
10,380 cars and 128 coaches travelled to the continent by
Shuttle. In
three days, Eurotunnel transported 26,000 passenger vehicles
from
Folkestone to Coquelles.
-- The Eurotunnel Group opened CIFFCO (the Cote d'Opale International
Railway Training Centre) in order to share its railway expertise
with
other players in the industry. This is the first training centre
of
its kind, open to all European railway companies,
infrastructure
managers and subcontractors to train railway technicians of all
types
who work on the French and neighbouring networks.
-- In partnership with the French telecoms operators, Eurotunnel
announced another new service for its customers in March. A
GSM-P
fibre optic transmission system for 2G and 3G mobile
telephone
communications, which will enable Shuttle and high speed
train
passengers to use their mobile telephones inside the Channel
Tunnel.
-- On 11 June the Paris Commercial Court accepted Eurotunnel's
proposal to acquire the assets of SeaFrance, following its
liquidation. The Eurotunnel Group has purchased the ships
Berlioz,
Rodin and Nord Pas-de-Calais for EUR65 million, in
order to lease them to an independent operating company, My
Ferry
Link. With the transfer of ownership taking place on 2 July,
the
residual payment of EUR58.5 million was made after 30 June.
-- On 19 July, Groupe Eurotunnel transferred dealing in its shares
from the London Stock Exchange to the NYSE Euronext London,
to
increase liquidity and to give direct, simplified access to its
many
European investors. This transfer gives the investor community
a
European platform for trading Eurotunnel shares, with one order
book
in euros across the whole market.
Fixed Link: Sustained performance
Eurotunnel continues to see strong progress in the performance
of Passenger and Truck Shuttle services and Eurostar passenger
numbers, despite the highly competitive market.
Although the truck market has increased by 3% in the first half
year, it remains, nonetheless, 10% below the levels of 2008.
Europorte: New contracts
Europorte, the rail freight subsidiary of Groupe Eurotunnel SA,
continues to grow strongly in its different areas of business:
- Infrastructure management: Europorte won a contract for the
maintenance of the ports at Le Havre and Rouen which started in
January 2012. Ports de Paris has chosen Europorte in partnership
with Colas Rail to operate and maintain the railway infrastructure
at its ports in Gennevilliers (92), Bonneuil-sur-marne (94) and
Limay (78). Ports de Paris, which has 60km of railway
infrastructure, is the largest inland port in France and the second
largest in Europe.
- Railway operations: the major contract with the European
transport and logistics leader, Gefco, is operating as planned with
weekly services between Gevrey, Amberieu, Fos-sur-mer, Marseille,
Toulouse and Bordeaux.
GBRf, the third largest rail freight operator in the UK, also
continues to grow. It has won a two-year contract to transport more
than a million tonnes of spoil from a subcontractor of Crossrail,
the cross London tunnel.
Sound financial results
The figures for the first half year show an increase in EBITDA
(+3% at a constant exchange rate). Operating costs for the Group
have increased by EUR45 million (20%) over the same period,
reflecting the increase of Europorte's activity and the increase in
Shuttle traffic.
At EUR126 million for the first half of 2012, the net cost of
finance and debt service has decreased by EUR9 million compared to
the first half of 2011 at a constant exchange rate, due to the
reduction in the rate of inflation and its impact on the nominal
value of the index-linked tranche of the debt.
For the first six months of 2012, free cash flow was EUR45
million. Over the same period in 2011, after having received EUR66
million in insurance indemnities, the cash flow was EUR16 million
higher at EUR61 million. Available cash flow at the end of June was
EUR267 million, compared to EUR276 at 31 December 2011), after the
purchase of floating rate notes, share buybacks and the continuing
programme of capital expenditure.
Finally, the consolidated net profit is stable at EUR5 million
for the first six months of 2012, recalculated at a constant
exchange rate. On a comparable basis, excluding the EUR29 million
of insurance indemnities accounted for in 2011, the net profit has
increased by EUR29 million.
Appendix 1: Traffic and revenue figures for the first half of
2012
Appendix 2: Half-Yearly Financial Report at 30 June 2012
APPENDIX 1: TABLES SHOWING REVENUE AND TRAFFIC FOR THE FIRST
HALF OF 2012
REVENUE
First half (January - June)
1st half 1st half 1st half
EUR million 2012 2011 % 2011
restated* change published**
Shuttle Services 223.3 189.7 +18% 181.8
Railway network 140.8 142.2 -1% 136.7
Other revenues 5.6 5.5 +1% 5.3
Sub-total Fixed Link 369.7 337.4 +10% 323.8
Europorte 103.2 75.7 +36% 72.4
Revenue 472.9 413.1 +14% 396.2
*Average exchange rate for the first half of 2012:
GBP1=EUR1.22
**Average exchange rate for the first half of 2011:
GBP1=EUR1.119
Reminder: first quarter (January - March)
1st quarter 1st quarter 1st quarter
EUR million 2012 2011 % 2011
restated* change published**
Shuttle Services 101.7 83.9 +21% 81.7
Railway network 67.5 61.5 +10% 59.9
Other revenues 2.3 2.0 +18% 1.9
Sub-total Fixed Link 171.5 147.4 +16% 143.5
Europorte 51.0 36.8 +38% 35.7
Revenue 222.5 184.2 +21% 179.2
*Average exchange rate for the first quarter of 2012:
GBP1=EUR1.199
**Average exchange rate for the first quarter of 2011:
GBP1=EUR1.132
Second quarter (April - June)
2nd quarter 2nd quarter 2nd quarter
EUR million 2012 2011 % 2011
restated* change published**
Shuttle Services 121.6 105.8 +15% 100.2
Railway network 73.4 80.6 -9% 76.7
Other revenues 3.2 3.6 -9% 3.4
Sub-total Fixed Link 198.2 190.0 +4% 180.3
Europorte 52.2 38.9 +34% 36.6
Revenue 250.4 228.9 +9% 216.9
*Average exchange rate for the first half of 2012:
GBP1=EUR1.22
**Average exchange rate for the first half of 2011:
GBP1=EUR1.119
TRAFFIC
First half
1st half 1st half %
2012 2011 change
Truck Shuttles 731,101 608,632 +20%
Passenger Shuttles Cars* 1,048,719 1,006,405 +4%
Coaches 30,059 28,420 +6%
Eurostar** Passengers 4,842,280 4,706,253 +3%
Rail freight*** Tonnes 609,555 709,861 -14%
Trains 1,154 1,276 -10%
Reminder: 1st quarter
1st quarter 1st quarter %
2012 2011 change
Truck Shuttles 364,724 301,074 +21%
Passenger Shuttles Cars* 427,739 399,869 +7%
Coaches 10,615 9,544 +11%
Eurostar** Passengers 2,235,083 2,152,369 +4%
Rail freight*** Tonnes 313,056 305,789 +2%
Trains 589 589 -
Second quarter
2nd quarter 2nd quarter %
2012 2011 change
Truck Shuttles 366,377 307,558 +19%
Passenger Shuttles Cars* 620,980 606,536 +2%
Coaches 19,444 18,876 +3%
Eurostar** Passengers 2,607,197 2,553,884 +2%
Rail freight*** Tonnes 296,499 404,072 -27%
Trains 565 687 -18%
*Including motorcycles, vehicles with trailers, caravans and
motor homes.
**Only passengers using Eurostar to cross the Channel are
included in this table, thus excluding journeys between
Paris-Calais and Brussels-Lille.
***Rail freight services by trains operators (DB Schenker on
behalf of BRB, SNCF and its subsidiaries, and Europorte) using the
Tunnel.
1 All comparisons with the results for the first half of 2011
are made at the constant exchange rate for the first half of 2012
of GBP1= EUR1.22.
www.eurotunnelgroup.com
GROUPE EUROTUNNEL SAHALF-YEARLY FINANCIAL REPORT*FOR THE SIX
MONTHS TO 30 JUNE 2012
*English translation of GET SA's 2012 "rapport financier
semestriel" for information purposes only.
Contents
HALF-YEARLY ACTIVITY REPORT AT 30 JUNE 2012 1
Summary 1
Analysis of the result 1
Revenues 2
Analysis of cash flows 4
Other financial indicators 5
Outlook 6
SUMMARY CONSOLIDATED HALF-YEARLY FINANCIAL 7
STATEMENTS AT 30 JUNE 2012
Consolidated income statement 7
Consolidated statement of comprehensive income 7
Consolidated balance sheet 8
Consolidated statement of changes in equity 9
Consolidated statement of cash flows 10
Notes to the summary financial statements 11
1 Important events 11
2 Basis of preparation and significant accounting policies 11
3 Segment reporting 12
4 Other operating income and (expenses) 12
5 Gross cost of servicing debt 13
6 Other financial income and (charges) 13
7 Earnings per share 14
8 Property, plant and equipment 14
9 Other financial assets 14
10 Share capital 15
11 Changes in equity 16
12 Financial liabilities 16
13 Litigation for which no provision has been made 17
14 Provisions 17
15 Related party transactions 17
16 Post balance sheet events 17
DECLARATION BY THE PERSON RESPONSIBLE FOR THE HALF-YEARLY 18
FINANCIAL REPORT AT 30 JUNE 2012
STATUTORY AUDITORS' REPORT ON THE 2012 19
HALF-YEARLY FINANCIAL INFORMATION
GROUPE EUROTUNNEL SA: HALF-YEARLY FINANCIAL REPORT FOR THE SIX
MONTHS TO 30 JUNE 2012
Half-yearly activity report
HALF-YEARLY ACTIVITY REPORT AT 30 JUNE 2012
For a better comparison between the two periods, Groupe
Eurotunnel SA's consolidated income statement for the first half of
2011 presented in this half-yearly activity report has been
recalculated at the exchange rate used for the 2012 half-yearly
income statement of GBP1=EUR1.22.
Summary
The Eurotunnel Group achieved a strong performance during the
first half of 2012. Consolidated revenues for the first half of
2012 totalled EUR473 million, an increase of EUR60 million (14%)
compared to the first half of 2011. This increase reflects organic
growth from the activities of the Fixed Link (EUR33 million) and
Europorte (EUR27 million). Operating costs increased by EUR45
million, EUR28 million of which resulted from increased Europorte
activity. In the first half of 2011, the Group accounted for
non-recurrent income totalling EUR29 million in respect of
insurance indemnities following the 2008 fire, of which EUR9
million in other income related to operating losses and EUR20
million in other operating income related to rolling stock damage.
Excluding the effect of these items, the operating margin improved
by 8% to EUR205 million and the operating profit improved by EUR14
million to EUR129 million.
The net cost of financing and debt service amounted to EUR126
million, the reduction of EUR9 million (7%) reflecting the effect
of the decrease in inflation rates on the index-linked tranche of
the debt.
With a profit of EUR5 million, the Eurotunnel Group SA's
consolidated net result for the first six months of 2012 was at the
same level as in the first half of 2011 (restated at a constant
exchange rate). On an equivalent basis excluding the insurance
indemnities accounted for in 2011, the net result improved by EUR29
million.
The free cash flow generated in the first half of 2012 amounted
to EUR45 million, compared to EUR61 million in the first half of
2011 which included receipts of EUR66 million relating to insurance
indemnities. At 30 June 2012, the Group's held balances of cash or
cash equivalents of EUR267 million (EUR276 million at 31 December
2011) after EUR61 million of capital expenditure (including a
deposit of EUR6.5 million paid for the acquisition of the SeaFrance
group's assets), the payment of dividends of EUR44 million, EUR18
million paid for the acquisition of floating rate notes and EUR11
million spent on the share buy back programme.
On 2 July 2012, the Eurotunnel Group paid the remaining balance
of EUR58.5 million for the acquisition of the SeaFrance group's
assets.
Analysis of the result
30 June 2012 30 June 2011 30 June 2011
EUR million restated* %
Exchange rate EUR/GBP 1.220 1.220 change 1.119
Shuttle services 223 190 +18% 182
Railway network 141 141 = 137
Other revenue 6 6 = 5
Sub-total Fixed Link 370 337 +10% 324
Europorte 103 76 +36% 72
Revenue 473 413 +14% 396
Other income - 9 9
Total turnover 473 422 +12% 405
External operating (160) (133) +19% (129)
expenses
Employee benefit (108) (90) +20% (87)
expense
Operating margin 205 199 +3% 189
(EBITDA)
Depreciation (76) (77) (77)
Trading profit 129 122 +6% 112
Net other operating - 22 23
income
Operating profit (EBIT) 129 144 135
Income from cash and 2 2 1
cash equivalents
Gross cost of servicing (128) (137) (130)
debt
Net cost of financing (126) (135) -7% (129)
and debt service
Other net financial 2 (4) (4)
income/(charges)
and income tax expense
Net result: profit 5 5 2
EBITDA**/ revenue 43% 46% -3pts
*Restated at the rate of exchange used for the 2012 half-year
income statement (GBP1=EUR1.22).
** EBITDA less other income (EUR9 million in 2011).
Revenues
At EUR370 million, Fixed Link revenues for the first half of
2012 grew by 10% compared to the first half of 2011 at a constant
exchange rate. Europorte's revenues increased by EUR27 million
(36%) to EUR103 million.
Consolidated revenues for the first half of 2012 totalled EUR473
million, an increase of EUR60 million (14%) compared to the first
half of 2011.
Shuttle services
TRAFFIC 1stquarter (January to March) 2ndquarter (April to June) 1sthalf (January to June)
2012 2011 % change 2012 2011 % change 2012 2011 % change
Truck
Shuttle:
Trucks 364,724 301,074 +21% 366,377 307,558 +19% 731,101 608,632 +20%
Passenger
Shuttle:
Cars(*) 427,739 399,869 +7% 620,980 606,536 +2% 1,048,719 1,006,405 +4%
Coaches 10,615 9,544 +11% 19,444 18,876 +3% 30,059 28,420 +6%
*Including motorcycles, vehicles with trailers, caravans and
motor homes.
At EUR223 million, Shuttle Services revenues increased by 18%
compared to the first half of 2011.
Truck Shuttles
The Short Straits cross-Channel market for trucks continued to
grow, with a growth estimated at 3% in the first half of 2012, but
remains nevertheless approximately 10% below 2008 levels. However,
compared to the first half of 2011 the number of trucks transported
by Eurotunnel increased by 20% during the first half of 2012, and
market share increased by approximately 6 points due in part to the
cessation of SeaFrance's operations towards the end of 2011.
Passenger Shuttles
The Short Straits cross-Channel car market contracted by
approximately 3% in the first half of 2012 compared to the same
period in 2011. Despite this trend, Eurotunnel's car traffic
continued to grow during the first half of 2012, with a 4% increase
in the number of cars transported by the Shuttles due to a 3 point
improvement in market share.
In a coach market that grew by approximately 3% in the first
half of 2012, Eurotunnel increased its traffic by 6%.
Railway network
TRAFFIC 1st quarter (January to March) 2nd quarter (April to June) 1st half (January to June)
2012 2011 %change 2012 2011 %change 2012 2011 %change
Eurostar passenger
trains:
Passengers* 2,235,083 2,152,369 +4% 2,607,197 2,553,884 +2% 4,842,280 4,706,253 +3%
Rail freight
trains**:
Tonnes 313,056 305,789 +2% 296,499 404,072 -27% 609,555 709,861 -14%
Trains 589 589 - 565 687 -18% 1,154 1,276 -10%
*Only passengers using Eurostar to cross the Channel are
included in this table, thus excluding journeys between
Paris-Calais and Brussels-Lille.
**Rail freight services by trains operators (DB Schenker on
behalf of BRB, SNCF and its subsidiaries, and Europorte) using the
Tunnel.
The Eurotunnel Group's revenues arising from the use of the
Tunnel's railway network by Eurostar passenger trains and the
freight train services of the rail companies during the first half
of 2012 amounted to EUR141 million, a level comparable to that of
the first half of 2011.
The number of Eurostar passengers travelling through the Tunnel
increased by 3% during the first half. The 10% decrease in the
number of rail freight trains using the Tunnel in the first half of
2012 to 1,154 is the combined result of the impact of the
short-term transportation of the steel during the first half of
2011 and the introduction of the extra toll imposed by Réseau Ferré
de France at Frethun on each operator passing through the Tunnel
which has slowed the momentum in growth of rail freight
traffic.
Europorte
At EUR103 million, Europorte's revenue for the first half of
2012 increased by EUR27 million compared to the same period in
2011, driven by the start-up of new contracts and increased
activity in existing contracts for GBRf in the UK and for Europorte
France.
Total turnover
No other income was accounted for in the first half of 2012. An
income of EUR9 million was accounted for in the first half of 2011
following the payments received from insurers relating to operating
losses following the fire in 2008.
Operating margin (EBITDA)
The Group's operating costs increased by EUR45 million (20%) for
the first half of 2012.
This increase was mainly due to the growth in Europorte's
activity following the start of new contracts, with an increase in
staff costs of EUR9 million (32%) and an increase in other costs of
EUR19 million (40%).
Operating costs of the Fixed Link increased by EUR17 million
reflecting the increased levels of activity of the Shuttle Services
in the first six months of 2012.
At EUR205 million, the Group's operating margin for the first
half of 2012 improved by EUR6 million (3%) compared to the first
half of 2011. Excluding the insurance indemnities accounted for in
2011, the operating margin improved by 8%. Of the Group's operating
margin of EUR205 million, a profit of EUR207 million is
attributable to the Fixed Link and a loss of EUR2 million is
attributable to Europorte.
Operating profit (EBIT)
Depreciation for the first half of 2012 remained stable.
The operating profit for the first half of 2012 was EUR129
million compared to EUR144 million for the first half of 2011, a
decrease of EUR15 million. Excluding the insurance indemnities
accounted for in 2011, the operating result improved by EUR14
million.
Net cost of financing and debt service
At EUR128 million for the first half of 2012, the gross cost of
servicing debt reduced by EUR9 million compared to the first half
of 2011 at a constant exchange rate, mainly as a result of lower
British inflation rates (estimated at 3% for 2012 at 30 June 2012
compared to 5% for 2011 at 30 June 2011) and its effect on the
nominal value of the of the index-linked tranche of the debt.
Net result
Other net financial income and charges in the first half of 2012
included an income of EUR2 million relating to interest on the
floating rate notes acquired by the Group at the end of 2011 and in
the first half of 2012.
With a profit of EUR5 million, the Eurotunnel Group's
consolidated net result for the first six months of 2012 was at the
same level as in the first half of 2011 (restated at a constant
exchange rate). On an equivalent basis excluding the insurance
indemnities accounted for in 2011, the net result improved by EUR29
million.
Analysis of cash flows
EUR million 30 June 2012 30 June 2011
Exchange rate EUR/GBP 1.239 1.108
Net cash inflow from trading 198 195
Other operating cash flows and taxation 4 (1)
Net cash inflow from operating activities 202 194
Net cash outflow from investing activities (61) (33)
Net cash outflow from financing activities (156) (121)
(Decrease)/increase in cash (15) 40
In total, the net cash outflow for the first half of 2012 was
EUR15 million, compared to a net cash inflow of EUR40 million for
the same period in 2011 which included receipts of EUR66 million
relating to insurance indemnities relating to the fire in 2008.
At EUR202 million, net cash inflow from operating activities
increased by EUR8 million in 2012 compared to 2011. Excluding the
effect of the insurance indemnities relating to operating losses
received in the first half of 2011 (EUR46 million), net cash inflow
from operating activities increased by EUR54 million, principally
as a result of a EUR42 million increase in receipts from Fixed Link
revenues mainly from Shuttle Services. Operating expenditure for
the Fixed Link and net cash flows for the Europorte companies
remained stable.
At EUR61 million, net cash outflow from investing activities
increased by EUR28 million compared to 2011. Excluding the effect
of the insurance indemnities relating to rolling stock received in
the first half of 2011 (EUR20 million), net cash outflow from
investing activities increased by EUR8 million. During the first
half of 2012, cash flow from investing activities comprised:
-- EUR29 million relating to the Fixed Link (EUR30 million in the first half
of 2011) of which EUR11 million was spent on the renovation and
upgrade
of power of locomotives and EUR6 million on the project to
install the
GSM-R (digital radio communication system),
-- EUR24 million for Europorte (EUR23 million in the first half of 2011),
mainly for the acquisition of new locomotives as part of
Europorte's
development plan, and
-- a deposit of EUR6.5 million paid in respect of the acquisition of assets
from the SeaFrance group (total offer of EUR65 million); the
balance
(EUR58.5 million) was paid on 2 July 2012.
Net cash outflows from financing activities in the first half of
2012 amounted to EUR156 million compared to EUR121 million in the
first half of 2011. During the first half of 2012, cash flow from
investing financing comprised:
-- EUR108 million of interest paid on the term loan and associated hedging
transactions (EUR102 million in the first half of 2011),
-- EUR18 million paid for the acquisition of floating rate notes,
-- EUR11 million paid under the share buy back programme,
-- EUR44 million paid in dividends (EUR21 million 2011),
-- EUR3 million received in respect of the exercise of the 2007 Warrants,
and
-- EUR18 million received following the partial refinancing of the
locomotives purchased by Europorte in 2011 and 2012.
Debt service cover ratio
Under the terms of the term loan, Groupe Eurotunnel SA is
required to meet certain financial covenants as described in
paragraph 10.6 of the 2011 Registration Document.
At 30 June 2012, the debt service cover ratio (net operating
cash flow less capital expenditure compared to net financial
expenses on a rolling 12 month period) and the synthetic debt
service cover ratio (calculated on the same basis but taking into
account a hypothetical amortisation on the Term Loan) were 1.74 and
1.53 respectively. Thus the financial covenants for the period were
respected.
Other financial indicators
Free cash flow
The free cash flow as defined by the Group in paragraph 10.8 of
the 2011 Registration Document, is the net cash flow from operating
activities less net cash flow from investing activities (excluding
investment in subsidiary undertakings) and net cash flow from
financing activities relating to the service of the debt (term loan
and hedging instruments) plus interest received (on cash and cash
equivalents and other financial assets). For the first six months
of 2012, free cash flow amounted to EUR45 million compared to EUR61
million for the same period in 2011, a decrease of EUR16 million
mainly due to the absence of non-recurrent receipts relating to
insurance indemnities received in 2011 (EUR66 million).
30 June 30 June 31 December
EUR'000 2012 2011 2011
Exchange rate EUR/GBP 1.239 1.108 1.197
Net cash inflow from operating activities 201,947 194,397 415,983
Net cash outflow from (60,660) (33,183) (77,377)
investing activities
Investment in subsidiary undertakings 569 - -
Deposit for the purchase of assets 6,500 - -
of the SeaFrance group
Interest paid on the term loan (84,242) (76,476) (161,525)
Interest paid on hedging instruments (23,424) (25,140) (49,063)
Interest received on cash 1,926 1,199 3,421
and cash equivalents
Interest received on other 2,238 17 698
financial assets
Free cash flow 44,854 60,814 132,137
Long-term debt to asset ratio
The long-term debt to asset ratio as defined by the Group in
paragraph 10.7 of the 2011 Registration Document, is the ratio
between long-term financial liabilities less the value of the
floating rate notes purchased as a percentage of tangible fixed
assets. At 30 June 2012, the ratio remained stable at 57.4%
compared to 31 December 2011 restated at the exchange rate used at
30 June 2012.
30 June 2012 31 December 2011
EUR'000 restated published
Exchange rate EUR/GBP 1.239 1.239 1.197
Long-term financial A 3,947,178 3,939,095 3,871,622
liabilities
Other financial assets: B 152,861 134,241 131,931
floating rate notes
Long-term financial A-B=C 3,794,317 3,804,854 3,739,691
liabilities
less other financial assets
Tangible fixed assets: D 6,611,680 6,627,525 6,626,841
property,
plant and equipment
Long-term debt C/D 57.4% 57.4% 56.4%
to asset ratio
*Concession fixed assets are converted using historic exchange
rates.
Outlook
The main risks and uncertainties by which the Eurotunnel Group
may be confronted in the remaining six months of the year have not
evolved significantly compared to those identified in chapter 4
"Risk Factors" of the 2011 Registration Document filed with the
Autorité des marchés financiers (the French financial markets
authority) on 1 March 2012. The economic crisis, and in particular
the crisis in public finances in some eurozone countries, make it
difficult to assess the economic outlook.
During the first half of the year, the Group has to a certain
extent benefited more from a pre-Olympic Games volume uplift, than
from a transfer of ex-SeaFrance customers who, being more
accustomed to the ferries, have mostly transferred towards the
other operators. In this context, Eurotunnel has continued to
successfully improve the visibility and the quality of its offer.
Faced with increased competition on the cross-Channel market
between Le Havre and Dunkirk, Eurotunnel remains confident that its
offer, which is based on the quality of its service, remains
clearly identifiable by its customers.
During the first half of 2012, the Europorte segment has
experienced significant growth in revenues for its rail freight
activities in France and the UK. During the second half, the Group
plans to continue its development plan for this segment and, as
part of this, Europorte continues to invest significantly in
rolling stock and recruitment. These initiatives, together with an
extensive review of its operating and administrative costs, should
enable this segment to continue its progress towards breakeven.
On 2 July 2012, the Group acquired from the company in
liquidation SeaFrance the three ships (the Berlioz, the Rodin and
the Nord Pas-de-Calais) and entered into contracts with the
cooperative company formed by ex-SeaFrance employees which will be
responsible for their operation. This new activity should allow the
Group to expand its offer on the cross-Channel market. The outlook
for this activity in 2012 remains modest, but the structures and
the organisation which will be put in place will create the basis
for development in the future.
GROUPE EUROTUNNEL SA: HALF-YEARLY FINANCIAL REPORT FOR THE SIX
MONTHS TO 30 JUNE 2012
Summary consolidated half-yearly financial statements
SUMMARY CONSOLIDATED HALF-YEARLY FINANCIAL STATEMENTS AT 30 JUNE
2012
Consolidated income statement
30 June 30 June 31 December
EUR'000 Note 2012 2011 2011
Revenue 3 472,929 396,175 844,839
Other income - 9,321 9,322
Total turnover 472,929 405,496 854,161
Operating expenses (159,398) (128,780) (266,496)
Employee benefit expense (108,273) (87,358) (184,431)
Depreciation (76,658) (77,206) (156,089)
Trading profit 3 128,600 112,152 247,145
Other operating income 4 136 22,669 27,602
Other operating expenses 4 - (29) (2,796)
Operating profit 128,736 134,792 271,951
Income from cash and 1,866 1,475 3,628
cash equivalents
Gross cost of servicing debt 5 (127,603) (130,201) (267,466)
Net cost of financing (125,737) (128,726) (263,838)
and debt service
Other financial income 6 12,752 6,625 16,840
Other financial charges 6 (10,212) (10,516) (13,185)
Income tax expense (302) (291) (496)
Result for the period 5,237 1,884 11,272
Result : Group share 5,237 1,884 11,272
Result : minority interest share - - -
Profit per share (EUR) 7 0.01 N/S 0.02
Profit per share after 7 0.01 N/S 0.02
dilution (EUR)
Consolidated statement of comprehensive income
30 June 31 December
EUR'000 Note 2012 2011
Foreign exchange translation differences (58,681) (49,028)
Movement in fair value of hedging contracts 12 (112,565) (335,643)
Total items recycled in the net result * (171,246) (384,671)
Net loss recognised directly in equity (171,246) (384,671)
Profit for the period - Group share 5,237 11,272
Total comprehensive income/(expense) (166,009) (373,399)
- Group share
Total comprehensive income/(expense) - -
- minority interest share
Total comprehensive income/(expense) (166,009) (373,399)
*Neither in the first half of 2012 nor in 2011 are there any
elements of comprehensive income that cannot be recycled in the net
result.
The notes form part of these financial statements.
Consolidated balance sheet
30 June 31 December
EUR'000 Note 2012 2011
ASSETS
Goodwill 17,564 16,965
Intangible assets 11,830 11,971
Total intangible assets 29,394 28,936
Concession property, plant and equipment 8 6,494,525 6,538,386
Other property, plant and equipment 8 117,155 88,455
Total property, plant and equipment 6,611,680 6,626,841
Non-current financial assets
Investment in subsidiary undertakings 10 5
Other financial assets 9 155,272 133,467
Total non-current assets 6,796,356 6,789,249
Stock 2,906 2,258
Trade receivables 127,257 105,960
Other receivables 47,328 44,575
Other financial assets 130 135
Cash and cash equivalents 267,226 275,522
Total current assets 444,847 428,450
Total assets 7,241,203 7,217,699
EQUITY AND LIABILITIES
Issued share capital 10 224,229 224,229
Share premium account 1,769,795 1,769,895
Other reserves 11 41,656 196,147
Profit for the period 5,237 11,272
Cumulative translation reserve 140,132 198,813
Total equity 2,181,049 2,400,356
Retirement benefit obligations 22,010 26,187
Financial liabilities 12 3,947,178 3,871,622
Interest rate derivatives 12 840,479 727,914
Total non-current liabilities 4,809,667 4,625,723
Provisions 14 1,527 2,343
Financial liabilities 12 36,359 5,127
Other financial liabilities 2 7
Trade payables 162,849 159,084
Other payables 49,750 25,059
Total current liabilities 250,487 191,620
Total equity and liabilities 7,241,203 7,217,699
The notes form part of these financial statements.
Consolidated statement of changes in equity
Other
Issued Share equity Cumulative
share premium Consolidated and similar Retained translation
EUR'000 capital account reserves instruments earnings reserve Total
1 January 213,684 1,812,316 606,964 - (56,800) 244,248 2,820,412
2011
Transfer (56,800) 56,800 -
to
non-distributable
reserves
Payment of (20,938) (20,938)
dividend
Share issue (1,232) (1,232)
costs
Allocation 959 30 (989) -
of loyalty
shares
for 2008
rights
issue
and
adjustment
of special
reserve
Conditional (404) (404)
additional
return on
SDES
Exercise 12,986 (4) 12,982
of 2007
Warrants
Cancellation (3,400) (40,811) 44,211 -
of
treasury
share
Share based 2,170 2,170
payments
Acquisition/sale (39,235) (39,235)
of
treasury
shares
Result 11,272 11,272
of the
period
Input (3,593) 3,593 -
of
conversion
difference
on partial
redemption
of
loan with
UK
subsidiary
Net profit (335,643) (49,028) (384,671)
/ (loss)
recorded
directly in
equity
At 224,229 1,769,895 196,147 - 11,272 198,813 2,400,356
31 December
2011
Transfer 11,272 (11,272) -
to
non-distributable
reserves
Payment of (44,105) (44,105)
dividend
(note 11)
Share issue (100) (100)
costs
Share based * 2,050 2,050
payments
Acquisition/sale (11,143) (11,143)
of
treasury
shares
Result 5,237 5,237
of the
period
Net (112,565) (58,681) (171,246)
profit/(loss)
recorded
directly in
equity
30 June 2012 224,229 1,769,795 41,656 - 5,237 140,132 2,181,049
*Of which EUR1,364,000 in respect of free shares (see note 10.3)
and EUR686,000 in respect of share options.
The notes form part of these financial statements.
Consolidated statement of cash flows
*The adjustment relates to the restatement of elements of the
income statement at the exchange rate ruling at the period end
30 June 30 June 31 December
EUR'000 Note 2012 2011 2011
Result for the period: profit 5,237 1,884 11,272
Income tax expense 302 291 496
Other financial (income) (2,540) 3,891 (3,655)
and expenses
Net cost of financing 125,737 128,726 263,838
and debt service
Other net operating income (136) (22,640) (24,806)
Depreciation 76,658 77,206 156,089
Trading profit before 205,258 189,358 403,234
depreciation
Exchange adjustment* 2,026 (1,047) 10,377
Increase in inventories (639) (634) (833)
(Increase)/decrease in trade (16,679) 1,388 260
and other receivables
Increase in trade and 8,411 6,460 4,781
other payables
Net cash inflow from trading 198,377 195,525 417,819
Other net operating cash flows 3,742 (922) (1,630)
Taxation (172) (206) (206)
Net cash inflow from 201,947 194,397 415,983
operating activities
Payments to acquire property, (61,563) (53,070) (97,503)
plant and equipment
Sale of property, plant 1,472 7 246
and equipment
Investment in subsidiary (569) - -
undertakings
Receipt of compensation - 19,880 19,880
for rolling stock
Net cash outflow from (60,660) (33,183) (77,377)
investing activities
Dividend paid (44,105) (20,938) (20,938)
Share issue costs (460) (780) (1,167)
Acquisition of floating (18,400) - (128,258)
rate notes
Draw down of bank loan 12 18,500 - -
Payments relating to - (403) -
equity operations
Share buy back programme (11,477) - (39,217)
Exercise of 2007 Warrants 2,932 - 9,892
Interest paid on Term Loan (84,242) (76,476) (161,525)
Interest paid on hedging (23,424) (25,140) (49,063)
instruments
Interest received on cash 1,926 1,199 3,421
and cash equivalents
Other interest received 2,238 17 698
Net proceeds from sale 332 1,001 (489)
of treasury shares
Net cash outflow from (156,180) (121,520) (386,646)
financing activities
Increase in cash in period (14,893) 39,694 (48,040)
Movements during the period
30 June 30 June 31 December
EUR'000 2012 2011 2011
Cash and cash equivalents at 1 January 275,522 316,323 316,323
Increase in cash in the period (14,893) 39,694 (48,040)
Increase in interest receivable (133) 245 214
in the period
Effect of movement in exchange rate 6,730 (10,495) 7,025
Cash and cash equivalents 267,226 345,767 275,522
at the end of the period
The notes form part of these financial statements.
GROUPE EUROTUNNEL SA: HALF-YEARLY FINANCIAL REPORT FOR THE SIX
MONTHS TO 30 JUNE 2012
Summary consolidated half-yearly financial statements
Notes to the summary financial statements
Groupe Eurotunnel SA (GET SA) refers to the holding company
governed by French law, whose registered office is at 3 rue La
Boétie, 75008 Paris, France. GET SA is the consolidating entity of
the Group and its shares are listed on Euronext Paris and the
London Stock Exchange. The shares will be admitted to trading on
NYSE Euronext London on 19 July 2012 and their listing on the
London Stock Exchange will cease on 20 July 2012.
The term "Group" or "Eurotunnel Group" refers to Groupe
Eurotunnel SA and all its subsidiaries.
The principal activities of the Group are the design, financing,
construction and operation of the Fixed Link in accordance with the
terms of the Concession, and rail freight activity. The Concession
will expire in 2086.
1Important events
On 11 June 2012, the Paris Commercial Court decided to accept
the offer made by the Eurotunnel Group for the acquisition of the
assets of the SeaFrance group in liquidation which constitute
mainly of the ships the Berlioz, the Rodin and the Nord
Pas-de-Calais, for a total of EUR65 million. The transfer of
ownership of these assets occurred on 2 July 2012 and as a
consequence, these assets were not accounted for in Groupe
Eurotunnel SA's financial statements at 30 June 2012 (see note 16
below for significant post balance sheet events).
2Basis of preparation and significant accounting policies
2.1Statement of compliance
The half-year summary consolidated financial statements have
been prepared in accordance with IAS 34 and accordingly do not
contain all the information necessary for complete annual financial
statements and must be read in conjunction with Groupe Eurotunnel
SA's consolidated financial statements for the year ended 31
December 2011.
The half-year summary consolidated financial statements for 2012
were drawn up by the board of directors on 20 July 2012.
2.2Scope of consolidation
The half-year summary consolidated financial statements for
Groupe Eurotunnel SA and its subsidiaries are prepared as at 30
June. The basis of consolidation at 30 June 2012 is the same as
that used for Groupe Eurotunnel SA's annual financial statements to
31 December 2011.
2.3Basis of preparation and presentation of the consolidated
financial statements
The half-year summary consolidated financial statements have
been prepared using the principles of currency conversion as
defined in the 2011 annual financial statements.
The average and closing exchange rates used in the preparation
of the 2012 and 2011 half-year accounts and the 2011 annual
accounts are as follows:
EUR/GBP 30 June 2012 30 June 2011 31 December 2011
Closing rate 1.239 1.108 1.197
Average rate 1.220 1.119 1.148
2.4Principal accounting policies
The half-year summary consolidated financial statements have
been prepared in accordance with IFRS. The accounting principles
and bases of calculation used for these half-year summary
consolidated financial statements are consistent in all significant
aspects with those used for GET SA's 2011 annual consolidated
financial statements, with the exception of the amendment to IAS 1
relating to the presentation of other comprehensive income (see the
Consolidated statement of comprehensive income on page 7) which is
compulsory for periods beginning on or after 1 July 2012 and which
the Eurotunnel Group has decided to apply in advance at 30 June
2012.
The following amendment, published by the IASB and adopted by
the European Union has not been applied in advance by the
Eurotunnel Group:
-- the amendment to IAS19 "Employee Benefits".
The main texts published by the IASB but not yet in force (not
adopted by the European Union) and which therefore have not been
applied early by the Group are as follows:
-- IFRS 9 "Financial Instruments: Classification and measurement of
financial assets and liabilities".
-- IFRS 10 "Consolidated Financial Statements" which will replace IAS 27
"Consolidated and Separate Financial Statements" for the part
related
to consolidated financial statements as well as the
interpretation
SIC 12 "Consolidation - Special Purpose Entities".
-- IFRS 11 "Joint Arrangements" which will replace IAS 31 "Interests in
Joint Ventures" as well as the interpretation SIC 13
"Jointly
Controlled Entities - Non-monetary Contributions by
Venturers".
-- IFRS 12 "Disclosure of Interests in Other Entities".
-- IFRS 13 "Fair Value Measurement".
-- Amendment to IAS 28 "Investments in Associates and Joint Ventures".
The analysis of the impacts of these standards on the financial
statements of the Group is currently being studied, in particular
those resulting from the revision of IAS 19 whose main consequence
is the removal of the corridor method currently used by the Group
leading to the correction of the provision and the opening equity
for unrecognised actuarial differences.
3Segment reporting
The Group is structured around the following two activities
which correspond to the internal information reviewed and used by
the main operational decision makers (the Executive Committee):
-- the segment "Concession for the cross-Channel Fixed Link", and
-- the segment "Europorte" which includes the activities of Europorte SAS
and its subsidiaries (Europorte Channel, Europorte France,
Europorte
Proximité, Socorail, Eurosco and GBRf).
At 30 June 2012 At 30 June 2011 At 31 December 2011
EUR'000 Revenue Trading result Revenue Trading result Revenue Trading result
Fixed Link 369,729 134,619 323,782 116,427 686,964 255,643
Europorte 103,200 (6,019) 72,392 (4,275) 157,875 (8,498)
Total 472,929 128,600 396,175 112,152 844,839 247,145
4Other operating income and (expenses)
30 June 30 June 31 December
EUR'000 2012 2011 2011
Net profit on disposal 44 19,890 19,333
or write-off of assets
Other 92 2,779 8,269
Other operating income 136 22,669 27,602
Other - (29) (2,796)
Other operating charges - (29) (2,796)
Total 136 22,640 24,806
In 2011, the net profit on disposal or write-off of assets
included EUR19.9 million relating to the final compensation for the
rolling stock considered irreparable following the fire in
September 2008 and written off during 2008 and 2009.
5Gross cost of servicing debt
30 June 30 June 31 December
EUR'000 2012 2011 2011
Interest on loans before hedging 83,423 76,829 158,568
Adjustments relating to hedging instruments 23,536 25,069 48,193
Effective rate adjustment 470 414 878
Sub-total 107,429 102,312 207,639
Inflation indexation of the nominal 20,174 27,889 59,827
Total gross cost of servicing 127,603 130,201 267,466
debt after hedging
With effect from 28 June 2012, interest on loans before hedging
includes the additional margin of 2% on the nominal value of
tranches C1 and C2.
At the end of June, the inflation indexation of the nominal
reflects the estimated effect of annual French and British
inflation rates on the nominal amount of tranches A1 and A2 of the
Term Loan as described in note U.1i of the annual consolidated
financial statements at 31 December 2011.
6Other financial income and (charges)
30 June 30 June 31 December
EUR'000 2012 2011 2011
Unrealised exchange gains* 8,431 5,767 13,769
Realised exchange gains 1,845 858 2,166
Interest received on floating rate notes 2,381 - 836
Other 95 - 69
Other financial income 12,752 6,625 16,840
Unrealised exchange losses* (9,083) (9,631) (12,060)
Realised exchange losses (1,129) (885) (1,125)
Other financial charges (10,212) (10,516) (13,185)
Total 2,540 (3,891) 3,655
*Resulting from the re-evaluation of intra-group debtors and
creditors. 30 June 2012: net loss of EUR652,000 (30 June 2011: net
loss of EUR3,864,000, 31 December 2011: net gain of
EUR1,709,000).
7Earnings per share
30 June 30 June 31 December
2012 2011 2011
Weighted average number:
- of issued ordinary shares 560,572,129 531,602,705 535,886,473
- of treasury shares (9,226,383) (8,219,714) (6,531,074)
Number of shares used 551,345,746 523,382,991 529,355,399
to calculate
the result per share (A)
- conversion of 2007 Warrants - 35,588,160 -
- share options i - 125,591 54,658
- free shares ii 1,737,307 664,600 651,698
Potential number of ordinary 1,737,307 36,378,351 706,356
shares (B)
Number of shares used 553,083,053 559,761,342 530,061,755
to calculate the
diluted result per
share (A+B)
Profit (EUR'000) (C) 5,237 1,884 11,272
Profit per share (EUR) (C/A) 0.01 N/S 0.02
Profit per share after 0.01 N/S 0.02
dilution (EUR) (C/(A+B))
The calculations were made on the following bases:
(i) on the assumption of the exercise of the maximum number of
options issued on 16 July 2010 and 21 July 2011 and remaining in
issue at 30 June 2012 (when the average price of the share during
the period exceeds the exercise price of options). The exercise of
these options is conditional on attaining the targets described in
note S of the consolidated financial statements at 31 December
2011; and
(ii) on the assumption of the acquisition of the maximum number
of free shares issued to staff (see note 10.3 below).
8Property, plant and equipment
At 30 June 2012, the Eurotunnel Group has not identified any
indication of impairment.
Intangible assets are mainly composed of the rolling stock owned
by the subsidiaries of Europorte.
9Other financial assets
30 June 31 December
EUR'000 2012 2011
Floating rate notes 152,861 131,931
Other 2,411 1,536
Total non-current 155,272 133,467
Accrued interest on floating rate notes 130 135
Other - -
Total current 130 135
Other financial assets consist mainly of floating rate notes. As
in 2011, during the first half of 2012, the Group acquired notes
issued by Channel Link Enterprises Finance (CLEF), the structure
that securitised the Group's debt in 2007. These purchases, carried
out by way of private transactions for EUR18 million, related to
floating rate notes with a nominal value of EUR20 million,
representing an average discount of approximately 8%. These notes
correspond to the securitisation of tranche C of the Group's debt
and have the same characteristics in terms of maturity and interest
as described in note P.2 of the consolidated financial statements
to 31 December 2011.
The accounting value of the floating rate notes is made up as
follows:
EUR'000 Notes in GBP Notes in EUR Total
Nominal value 75,090 94,650 169,740
Discount (net of acquisition (7,264) (9,615) (16,879)
costs)
Accounting value 67,826 85,035 152,861
Maturity 20/06/2046 20/06/2041
-20/06/2050 -20/06/2050
Interest rate (*)Libor +3.25% (*)Euribor +3.25%
*1.25% prior to 28 June 2012.
10Share capital
10.1Share capital evolution
At 30 June 2012 and 31 December 2011, the issued share capital
of GET SA amounted to EUR224,228,851.60 divided into 560,572,129
fully paid-up GET SA ordinary shares with a nominal value of
EUR0.40 each.
10.2Treasury shares
Movements in the number of treasury shares during the period
were as follows:
Share
buyback Liquidity
programme contract Total
At 1 January 2012 8,827,660 337,399 9,165,059
Share buyback programme 1,867,709 - 1,867,709
Net purchase/(sale) under - (41,399) (41,399)
liquidity contract
At 30 June 2012 10,695,369 296,000 10,991,369
Treasury shares held as part of the share buy back programme
renewed by the general meeting of shareholders and implemented by
decision of the board of directors on 26 April 2012 are allocated,
in particular, to cover share option plans and the grant of free
shares, whose implementation was approved by the general meetings
of shareholders in 2010 and 2011.
10.3Free shares
Following the approval by the general meeting of shareholders on
28 April 2011 of a plan to issue free shares, the board of
directors of GET SA proceeded on 26 April 2012 to a second grant
for a total of 1,102,360 GET SA ordinary shares (310 shares per
employee) to all employees of GET SA and companies which are linked
to it (with the exception of executive and corporate officers). The
definitive acquisition of these shares by the employees is subject
to them remaining in employment with the Group for a minimum period
of 4 years.
Number of shares
In issue at 1 January 2012 644,400
Granted during the year 1,102,360
Cancelled during the year (20,230)
Exercised during the year -
Expired during the year -
In issue at 30 June 2012 1,726,530
Exercisable at 30 June 2012 -
The assumptions used to measure the fair value of the free
shares were as follows:
Fair value of free shares and assumptions 2012 plan 2011 plan
Fair value of free shares on grant date (EUR) 5.89 6.62
Share price on grant date (EUR) 6.26 7.232
Number of beneficiaries 3,556 3,302
Risk-free interest rate (based on government bonds) 1.05% 2.25%
A charge of EUR1,379,000 (at the exchange rate used to calculate
the income statement) relating to the free shares was made in the
half year accounts to 30 June 2012.
11Changes in equity
Dividend
On 26 April 2012, Groupe Eurotunnel SA's shareholders' general
meeting approved the payment of a dividend relating to the
financial year ended 31 December 2011, of 8 cents of a euro per
share. This dividend was paid on 25 May 2012 for a total of EUR44.1
million.
12Financial liabilities
The movements in financial liabilities during the period were as
follows:
31 December 31 December Interest,
2011 2011 Draw down Reclass- indexation 30 June
EUR'000 published restated* of loan ification and fees 2012
Non-current
financial
liabilities
Term 3,871,622 3,939 095 - (30,500) 20,896 3,929,491
loan
Other - - 17,687 - - 17,687
loans
Total 3,871,622 3,939 095 17,687 (30,500) 20,896 3,947,178
non-current
financial
liabilities
Current
financial
liabilities
Term - - - 30,500 - 30,500
Loan
Accrued 5,127 5,214 - - (172) 5,042
interest
on
term
loan
Other - - 813 - 4 817
loans
Total 5,127 5,214 813 30,500 (168) 36,359
current
financial
liabilities
Total 3,876,749 3,944,309 18,500 - 20,728 3,983,537
*The financial liabilities at 31 December 2011 (calculated at
the year end exchange rate of GBP1=EUR1.197) have been recalculated
at the exchange rate at 30 June 2012 (GBP1=EUR1.239) in order to
facilitate comparison.
"Other loans" in the table above represent a bank loan of
EUR18.5 million taken out in June 2012 by Europorte SAS as part of
the refinancing of the acquisition of certain locomotives by its
subsidiaries. This loan carries a fixed rate of interest of 4.14%
and is repayable over seven years.
The repayment of tranche B of the term loan will begin on 20
June 2013 (see notes U and V of the Group's consolidated financial
statements at 31 December 2011) with a payment of EUR30.5
million.
At 30 June 2012, the Group has not identified any new factors
that would modify the information relating to the fair value of the
financial liabilities as described in note W.2 of the annual
consolidated financial statements to 31 December 2011.
Interest rate exposure
The Eurotunnel Group has hedging contracts in place to cover its
floating rate loans (tranches C1 and C2) in the form of swaps for
the same duration and for the same value (EURIBOR against a fixed
rate of 4.85% and LIBOR against a fixed rate of 5.2%). No premiums
were paid to obtain these contracts. The nominal value of the swaps
is EUR953 million and GBP350 million.
These derivatives generated a net charge of EUR23,536,000 during
the first six months of 2012 which has been accounted for in the
income statement (a net charge of EUR25,069,000 during the first
six months of 2011).
These derivatives have been measured at their fair value on the
balance sheet as follows:
Market value of hedging contracts *Changes in market value
EUR'000 30 June 2012 31 December 2011
Contracts in euros Liability of 617 553 Liability of 516 568 (100 985)
Contracts in sterling Liability of 222 926 Liability of 211 346 (11 580)
Total Liability of 840 479 Liability of 727 914 (112 565)
*Recorded directly in equity.
13Litigation for which no provision has been made
The judgments of 2 August 2006, by which the Paris Commercial
Court opened safeguard procedures in favour of TNU PLC, Eurotunnel
Services Limited, EurotunnelPlus Limited, Eurotunnel Finance
Limited and CTG, were subject to third-party opposition by certain
Elliot companies. These third-party proceedings were rejected by
the Paris Commercial Court in five judgments dated 15 January 2007.
The appeal lodged by the Elliot companies in relation to this first
series of decisions was rejected by five orders of the Paris Court
of Appeal (Cour d'appel de Paris) delivered on 29 November 2007
(see paragraph 20.7.1 of the 2008 Reference Document). On 30 June
2009, the Supreme Court of Appeal (Cour de cassation) quashed the
five orders of the Paris Court of Appeal in so far as they related
to the admissibility of this appeal and referred the matter back to
the Paris Court of Appeal.
On 26 June 2012, the Supreme Court of Appeal, within the limited
scope of the appeal brought before it, rejected Elliott's claims
and declared inadmissible the appeal on the ground of the alleged
lack of knowledge of the legal basis on which the safeguard
procedure was opened. The Paris Court of Appeal has confirmed its
judgment of 15 January 2007 in respect of the following five
companies: TNU PLC (now merged with GET SA), Eurotunnel Services
Limited, EurotunnelPlus Limited, Eurotunnel Finance and CTG.
This procedure has not challenged the validity of the safeguard
plan and its result is consistent with the assessment which had
been made by the Group.
14Provisions
Charge to Release of
1 January income unspent Provisions 30 June
EUR'000 2012 statement provisions utilised 2012
Restructuring 539 539
Other 1,804 37 (853) 988
Total 2,343 37 - (853) 1,527
15Related party transactions
15.1Eurotunnel Group subsidiaries
All Eurotunnel Group subsidiaries were fully consolidated at 30
June 2012.
15.2Other related parties
During the financial restructuring in 2007, the Eurotunnel Group
concluded interest rate hedging contracts with financial
institutions, in the form of swaps (see note 12 above). Goldman
Sachs International was one of the counterparties to these hedging
contracts, and at 30 June 2012 held 2.6% of the contracts,
representing a charge of EUR0.6 million in the first half of 2012
and a liability of EUR22 million at 30 June 2012.
Two of Goldman Sachs's infrastructure funds (GS Global
Infrastructure Partners I, L.P., and GS International
Infrastructure Partners I, L.P., together known as GSIP) hold
approximately 16% of GET SA's share capital at 30 June 2012 and 26%
of voting rights.
16Post balance sheet events
On 2 July 2012, the Eurotunnel Group acquired the assets of the
SeaFrance group for a total of EUR65 million. These assets
consisted mainly of the ships the Berlioz, the Rodin and the Nord
Pas-de-Calais.
GROUPE EUROTUNNEL SA: HALF-YEARLY FINANCIAL REPORT FOR THE SIX
MONTHS TO 30 JUNE 2012
Declaration by the person responsible for the half-yearly
financial report
DECLARATION BY THE PERSON RESPONSIBLE FOR THE HALF-YEARLY
FINANCIAL REPORT AT 30 JUNE 2012
I declare that, to the best of my knowledge, these summary
half-year consolidated financial statements have been prepared in
accordance with applicable accounting standards and present fairly
the assets, financial situation and results of Groupe Eurotunnel SA
and of all the companies included in the consolidation, and that
this half-yearly financial report presents fairly the important
events of the first six months of the financial year, their effect
on the summary half-year consolidated financial statements, the
main transactions between related parties, and a description of the
main risks and uncertainties for the remaining six months of the
financial year.
Jacques Gounon,Chairman and Chief Executive Officer of Groupe
Eurotunnel SA,20 July 2012
STATUTORY AUDITORS' REPORT ON THE 2012 HALF-YEARLY FINANCIAL
INFORMATION
This is a free translation into English of the statutory
auditors' report issued in the French language and is provided
solely for the convenience of English speaking readers.
This report should be read in conjunction with, and is construed
in accordance with, French Law and professional auditing standards
applicable in France.
To the Shareholders,
Following our appointment as statutory auditors by your Annual
General Meeting and in accordance with article L. 451-1-2 III of
the French Monetary and Financial Law ("Code monétaire et
financier"), we hereby report to you on:
-- the review of the accompanying condensed half-year consolidated
financial statements of Groupe Eurotunnel SA for the six-month
period
ended 30 June 2012, as attached to the present report ;
-- the verification of the information contained in the half-year
management report.
These condensed half-year consolidated financial statements are
the responsibility of the board of directors. Our role is to
express a conclusion on these financial statements based on our
review.
I. Conclusion on the financial statements
We conducted our review in accordance with professional
standards applicable in France. A review of interim financial
information 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-year
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.
II. Specific verification
We have also verified the information given in the half-year
management report on the condensed half-year consolidated financial
statements subject to our review. We have no matters to report as
to its fair presentation and consistency with the condensed
half-year consolidated financial statements.
The statutory auditors
Paris La Défense, 20 July 2012 Courbevoie, 20 July 2012
KPMG Audit Mazars
Department of KPMG S.A.
Philippe Cherqui Jean-Marc Deslandes
Partner Partner
Groupe Euro. (LSE:GETS)
Historical Stock Chart
From Apr 2024 to May 2024
Groupe Euro. (LSE:GETS)
Historical Stock Chart
From May 2023 to May 2024
