Altareit : HY 2022 results - Consolidated financial statements

ALTAREIT

SUMMARY INTERIM CONSOLIDATED FINANCIAL

STATEMENTS AT 30 JUNE 2022

1

CONTENTS

1	FINANCIAL STATEMENTS.....................................................................................................	3
2	NOTES - CONSOLIDATED INCOME STATEMENT BY SEGMENT ......................................	7

3 OTHER INFORMATION ATTACHED TO THE INTERIM CONSOLIDATED FINANCIAL

STATEMENTS.........................................................................................................................

8

2	SUMMARY INTERIM CONSOLIDATED FINANCIAL STATEMENTS AT 30
JUNE 2022	ALTAREIT

1	Financial statements
Consolidated balance sheet
€millions			Note	30/06/2022	31/12/2021
Non-current assets			795.6	803.9
Intangible assets		7.1	303.1	304.1
o/w Goodwill				192.1	192.1
o/w Brands				105.4	105.4
o/w Other intangible assets			5.6	6.7
Property, plant and equipment			23.3	24.7
Right-of-use on tangible and intangible fixed assets	7.2	127.5	128.0
Investment properties	7.3	91.5	91.5
o/w Investment properties in operation at fair value			9.6	9.2
o/w Investment properties under development and under construction at cost			78.7	78.7
o/w Right-of-use on Investment properties			3.2	3.5
Securities and investments in equity affiliates	4.5	229.5	239.2
Non-current financial assets	4.6	20.4	15.1
Deferred taxes assets	5.3	0.3	1.2
Current assets				3,282.3	3,679.7
Net inventories and work in progress	7.4	1,021.0	883.4
Contract assets		7.4	676.8	714.1
Trade and other receivables	7.4	690.6	690.0
Income credit				6.5	7.8
Current financial assets	4.6	17.1	29.0
Cash and cash equivalents	6.2	870.3	1,355.4
TOTAL ASSETS				4,077.9	4,483.6
Equity				1,096.7	1,079.3
Equity attributable to Altareit SCA shareholders			1,055.5	1,026.1
Share capital		6.1	2.6	2.6
Other paid-in capital			76.3	76.3
Reserves				940.7	874.9
Income associated with Altareit SCA shareholders			35.9	72.2
Equity attributable to minority shareholders of subsidiaries			41.2	53.2
Reserves associated with minority interests in subsidiaries			32.0	35.2
Income associated with minority onterests in subsidiaries			9.2	18.0
Non-current liabilities			880.9	1,030.5
Non-current borrowings and financial liabilities	6.2	800.2	947.9
o/w Bond issues				398.2	496.8
o/w Borrowings from lending establishments			246.4	257.5
o/w Negotiable European Medium Term Note			15.0	52.0
o/w Advances from Group shareholders and partners			0.9	0.4
o/w Lease liabilities			139.8	141.3
Long-term provisions	6.3	15.5	17.1
Deposits and security interests received			0.3	0.6
Deferred tax liability	5.3	64.9	64.9
Current liabilities			2,100.3	2,373.8
Current borrowings and financial liabilities	6.2	556.5	746.8
o/w Bond issues				11.6	7.3
o/w Borrowings from lending establishments			89.1	65.6
o/w Negotiable European Commercial Paper			366.0	357.0
o/w Bank overdrafts			11.1	12.3
o/w Advances from Group shareholders and partners			61.6	288.2
o/w Lease liabilities			17.1	16.5
Contract liabilities	7.4	219.1	168.1
Trade and other payables	7.4	1,315.7	1,443.9
Tax due				9.0	14.9
TOTAL LIABILITIES			4,077.9	4,483.6

	SUMMARY INTERIM CONSOLIDATED FINANCIAL STATEMENTS AT 30	3
ALTAREIT	JUNE 2022

Statement of consolidated comprehensive income

€millions	Note	30/06/2022	31/12/2021	30/06/2021
Revenue		1,256.8	2,789.8	1,315.4
Cost of sales		(1,097.1)	(2,438.9)	(1,165.0)
Other income		(48.2)	(102.7)	(49.2)
Net charge to provisions for current assets		(8.4)	(10.3)	(0.0)
Net property income	5.1	103.1	237.9	101.2
External services		12.6	21.9	10.0
Own work capitalised and production held in inventory		94.3	188.0	86.6
Personnel costs		(90.7)	(186.4)	(85.9)
Other overhead expenses		(36.9)	(87.4)	(31.6)
Depreciation expenses on operating assets		(11.3)	(22.5)	(11.1)
Net overhead expenses		(32.0)	(86.4)	(32.1)
Other income and expenses		(1.5)	(2.7)	(2.0)
Depreciation expenses		(0.0)	(0.1)	(0.0)
Transaction costs		0.2	(2.3)	(5.0)
Others		(1.2)	(5.1)	(7.0)
Change in value of investment properties		-	2.0	1.6
Net impairment losses on other non-current assets		0.5	(1.2)	(1.0)
Net charge to provisions for risks and contingencies		(0.3)	(1.2)	(1.3)
	OPERATING INCOME BEFORE THE SHARE OF NET INCOME OF EQUITY-METHOD		70.0		146.0		61.3
	AFFILIATES
Share in earnings of equity-method affiliates	4.5	1.6	6.2	0.7
	OPERATING INCOME AFTER THE SHARE OF NET INCOME OF EQUITY-METHOD		71.5		152.2		62.0
	AFFILIATES
Net borrowing costs	5.2	(5.8)	(22.6)	(11.4)
Financial expenses		(7.3)	(25.0)	(12.5)
Financial income		1.5	2.3	1.1
Other financial results	5.2	(7.0)	(10.9)	(5.8)
Change in value and income from disposal of financial instruments		1.0		-	0.0
Net gain/(loss) on disposal of investments		(0.5)	0.2	0.0
Profit before tax		59.3	118.8	44.9
Corporate income tax	5.3	(14.2)	(28.6)	(11.7)
	NET INCOME		45.0		90.3		33.2
	o/w Attributable to shareholders of Altareit SCA		35.9		72.2		24.8
o/w Attributable to minority interests in subsidiaries		9.2	18.0	8.4
Average number of non-diluted shares		1,748,420	1,748,440	1,748,424
	Net income per share attributable to shareholders of Altareit SCA (€)	5.4	20.53		41.32		14.17
Diluted average number of shares		1,748,420	1,748,440	1,748,424
	Diluted net income per share attributable to shareholders of Altareit SCA (€)	5.4	20.53		41.32		14.17

Other comprehensive income

€millions	30/06/2022	31/12/2021	30/06/2021
NET INCOME	45.0	90.3	33.2
Actuarial differences on defined-benefit pension plans	1.8	2.1	1.3
o/w Taxes	(0.6)	(0.7)	(0.5)
Subtotal of comprehensive income items that may not be reclassified to profit	1.8	2.1	1.3
OTHER COMPREHENSIVE INCOME	1.8	2.1	1.3
CONSOLIDATED COMPREHENSIVE INCOME	46.9	92.4	34.4
o/w Net comprehensive income attributable to Altareit SCA shareholders	37.7	74.3	26.1
o/w Net comprehensive income attributable to minority interests in subsidiaries	9.2	18.0	8.4

4	SUMMARY INTERIM CONSOLIDATED FINANCIAL STATEMENTS AT 30
JUNE 2022	ALTAREIT

Consolidated cash flows statement

€millions	Note	30/06/2022	31/12/2021	30/06/2021
Cash flow from operating activities
Net income		45.0	90.3	33.2
Elimination of income tax expense (income)	5.3	14.2	28.6	11.7
Elimination of net interest expense (income) and dividends	5.2	12.4	33.4	16.7
Net income before tax and before net interest expense (income)		71.7	152.3	61.6
Elimination of share in earnings of equity-method affiliates	4.5	(1.6)	(6.2)	(0.7)
Elimination of depreciation and impairment		11.7	27.4	14.2
Elimination of value adjustments		(1.0)	(2.0)	(1.7)
Elimination of net gains/(losses) on disposals		0.4	(0.4)	(0.3)
Estimated income and expenses associated with share-based payments	6.1	(11.3)	(0.7)	(9.4)
Net cash flow		70.0	170.3	63.9
Tax paid		(16.5)	(18.1)	(12.1)
Impact of change in operational working capital requirement (WCR)	7.4	(152.6)	(100.7)	(154.6)
OPERATING CASH FLOW		(99.1)	51.5	(102.8)
Cash flow from investment activities
Net acquisitions of assets and capitalised expenditures		(0.8)	(9.9)	(7.8)
Gross investments in equity affiliates	4.5	(31.4)	(48.1)	(17.7)
Acquisitions of consolidated companies, net of cash acquired	4.3	5.5	16.7	16.7
Other changes in Group structure		(0.0)	0.2	(0.1)
Increase in loans and advances		(22.6)	(31.7)	(25.1)
Sale of non-current assets and reimbursement of advances and down payments		2.9	3.1	2.9
Disposals of equity affiliates	4.5	13.9	27.4	14.4
Disposals of consolidated companies, net of cash transferred		(0.3)	1.8	(0.1)
Reduction in loans and other financial investments		36.8	20.8	6.1
Dividends received		15.6	23.7	14.6
Interest income on loans		1.7	3.2	1.5
CASH FLOW FROM INVESTMENT ACTIVITIES		21.3	7.3	5.4
Cash flow from financing activities
Share of miinority interests in the capital increase of subsidiaries		-	0.4	-
Capital increase		(0.1)	-	(0.1)
Dividends paid to minority shareholders of subsidiaries		(20.6)	(16.1)	(0.1)
Issuance of borrowings and other financial liabilities	6.2	269.2	701.4	275.4
Repayment of borrowings and other financial liabilities	6.2	(637.6)	(544.8)	(459.9)
Repayment of lease liabilities	6.2	(8.7)	(2.1)	(1.4)
Net sales (purchases) of treasury shares		0.0	0.0	0.1
Net change in security deposits and guarantees received		(0.3)	(1.0)	(0.1)
Interest paid on financial debts		(8.0)	(34.8)	(10.6)
CASH FLOW FROM FINANCING ACTIVITIES		(406.1)	103.0	(196.7)
Change in cash balance		(483.9)	161.9	(294.0)
Cash balance at the beginning of the year	6.2	1,343.1	1,181.2	1,181.2
Cash and cash equivalents		1,355.4	1,185.1	1,185.1
Bank overdrafts		(12.3)	(3.9)	(3.9)
Cash balance at period-end	6.2	859.2	1,343.1	887.2
Cash and cash equivalents		870.3	1,355.4	889.6
Bank overdrafts		(11.1)	(12.3)	(2.5)

	SUMMARY INTERIM CONSOLIDATED FINANCIAL STATEMENTS AT 30	5
ALTAREIT	JUNE 2022