ID Logistics : Financial report H1 2021

Half-year financial report

______

June 30, 2021

This document is a non-certified translation into English of the half-year financial report issued in French and

filed on September 3, 2021 with the Autorité des Marchés Financiers (AMF)

ID LOGISTICS GROUP

A French corporation (société anonyme) with capital stock of €2,836,894.00

Head office: 55, chemin des Engranauds - 13660 Orgon

TARASCON TRADE AND COMPANIES REGISTER NO. 439 418 922

Table of contents

1	PERSON RESPONSIBLE .............................................................................................................	3
1.1	PERSON RESPONSIBLE FOR THE HALF-YEAR FINANCIAL REPORT ......................................	3
1.2	STATEMENT OF THE PERSON RESPONSIBLE FOR THE DOCUMENT.....................................	3
2	HALF-YEAR BUSINESS REPORT ..............................................................................................	4
3	SUMMARY FINANCIAL STATEMENTS .....................................................................................	9
4	STATUTORY AUDITORS' REPORT..........................................................................................	19

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• PERSON RESPONSIBLE

1.1 PERSON RESPONSIBLE FOR THE HALF-YEAR FINANCIAL REPORT

Mr. Eric Hémar, Chairman and CEO of ID Logistics Group.

1.2 STATEMENT OF THE PERSON RESPONSIBLE FOR THE DOCUMENT

I hereby certify that, to the best of my knowledge, the summary consolidated financial statements for the six months ended June 30, 2021 were prepared in accordance with applicable accounting standards and give a fair view of the Company's assets and liabilities, financial position and earnings, as well as those of all of its consolidated companies. I also certify that the attached half-year business report presents a fair statement of key events that occurred during the first six months of the year, the impact thereof on the financial statements and the main related party transactions, as well as a description of the main risks and uncertainties to be faced during the remaining six months of the year.

Orgon, September 3, 2021

Eric Hémar

Chairman and CEO

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• HALF-YEARBUSINESS REPORT

The reader is invited to read the following information concerning the Group's financial position and earnings in conjunction with the summary consolidated financial statements for the six months ended June 30, 2021 as set out in Chapter 3 "Summary financial statements" of the half-year financial report.

Given that the figures stated in euro millions in the tables and analyses in this chapter have been rounded, the totals shown do not necessarily equal the sum of the individual rounded figures. Similarly, the sum of the percentages that are based on the rounded figures does not necessarily equal 100%.

In addition to the financial indicators directly presented in the consolidated financial statements, the Group uses a number of alternative performance indicators:

• Like-for-likechange in revenues: this reflects the Group's organic growth, excluding the impact of:

• • changes in consolidation scope: the contribution to revenues of companies acquired during the period and companies sold during the previous period is excluded;
  • changes in the applicable accounting principles;
  • changes in exchange rates, by calculating revenues for the various periods on the basis of identical exchange rates: published data for the previous period is converted using the exchange rate for the current period.
• EBITDA: underlying operating income (EBIT) before net depreciation, amortization and impairment of PP&E and intangible assets
• Net borrowings: gross borrowings plus bank overdrafts less cash and cash equivalents
• Net debt: net borrowings plus lease liabilities recognized in application of IFRS 16 "Leases"
• Gearing: net borrowings over consolidated equity
  2.1 First half highlights

The impact of the COVID-19 global health crisis continued into the first half of 2021. Thanks to a diverse customer portfolio primarily based in the food and e-commerce sectors, a broad geographical footprint, and the responsiveness of its teams and management, ID Logistics was able to limit the financial impact of the health crisis during the first half of 2021.

2.2 Consolidated income statement

€m	H1 2021	H1 2020
Revenues	893.1	776.6
Purchases and external charges	(440.3)	(378.7)
Staff costs	(326.6)	(294.3)
Miscellaneous taxes	(9.0)	(7.3)
Other underlying income (expenses)	0.3	0.4
Net (increases) write-backs to provisions	0.4	0.8
EBITDA	117.9	97.5
Net depreciation/impairment	(90.2)	(77.4)
EBIT before amortization of acquired customer relations	27.7	20.1
Amortization of acquired customer relations	(0.6)	(0.6)
Non-recurring expenses	-	(1.5)
Net financial items	(5.8)	(6.9)
Corporate income tax	(6.8)	(5.1)
Share of earnings of equity affiliates	0.3	0.5
Total consolidated net income	14.8	6.5
Minority interests	1.9	1.2
Group share	12.9	5.3

ID Logistics posted H1 2021 revenues of €893.1 million, up 15.0% (up 17.7% like-for-like) compared to H1 2020, when revenues rose 4.3%. E-commerce business continued to thrive, accounting for 27% of total first half revenues. Nine new warehouses have been launched so far this year (four in France and five in other countries), in line with the roadmap adopted for 2021.

In accordance with the definition of alternative performance indicators set out above, the reconciliation between reported and like-for-like revenue data is as follows:

€m	H1	Impact of	Impact of	Impact of	Like-for-like	H1
change in	change in	application of
	2020	change	2021
	consolidation	exchange rates	IAS 29
Revenues	776.6	-0.2%	-2.5%	-0.0%	+17.7%	893.1

Revenues break down as follows:

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€m	H1 2021	H1 2020
France	376.7	344.1
International	516.4	432.5
Total revenues	893.1	776.6

• In France, after a first quarter up 4.2%, the second quarter saw a dramatic 14.8% upswing versus Q2 2020, when revenues shrank 5.9% under the impact of the COVID-19 health crisis. H1 2021 France revenues totaled €376.7 million, up 9.5% versus H1 2020.
• H1 2021 international revenues totaled €516.4 million, up 19.4% despite adverse currency movements, notably in Latin America and during the first quarter, and including the changes in consolidation scope resulting from the cessation of China operations in 2020. Restated for these items, first half revenue growth came to 24.6%.

First half 2021 purchases and external charges amounted to €440.3 million, up from €378.7 million in first half 2020. As a percentage of revenues, purchases and external charges increased from 48.8% to 49.3%, mainly due to continued extensive subcontracting (mainly temporary staff), the usual solution adopted by the Group to ensure the smooth launch of a large number of new warehouses and to handle the business fluctuations inherent in e-commerce.

First half 2021 staff costs amounted to €326.6 million, up from €294.3 million in H1 2020. As a percentage of revenues, staff costs fell from 37.9% in H1 2020 to 36.6% in H1 2021. This decrease is the counterweight to the aforementioned proportional increase in subcontracting compared to the previous year.

Miscellaneous taxes were stable at 1.0% of H1 2021 revenues versus 0.9% in H1 2020.

As in first half 2020, other income and expenses netted out close to zero for the first half of 2021.

Net provision write-backs mainly correspond to expenses recognized under purchases and external charges or staff costs.

Following the above items, EBITDA amounted to €117.9 million in first half 2021, up from €97.5 million in first half 2020. In line with H2 2020 performance and despite the ongoing disruption caused by the COVID-19 health crisis, the EBITDA margin improved significantly from 12.6% in H1 2020 to 13.2%.

Net depreciation/impairment came to €90.2 million in H1 2021 compared to €77.4 million in H1 2020. As a percentage of revenues, this item edged up from 10.0% in H1 2020 to 10.1%.

The table below shows the impact of these changes on EBIT margins before amortization of customer relations:

€m	H1 2021	H1 2020
France	13.5	9.7
EBIT margin (% revenues)	3.6%	2.8%
International	14.2	10.4
EBIT margin (% revenues)	2.7%	2.4%
Total	27.7	20.1
EBIT margin (% revenues)	3.1%	2.6%

First half 2021 EBIT before amortization of customer relations amounted to €27.7 million, generating an EBIT margin of 3.1%, up sharply by 50 bps from first half 2020:

• In France, first half 2020 EBIT was impacted by the COVID-19 health crisis and the strict lockdown measures imposed between mid-March and mid-May. This period saw major and unexpected upward and downward changes in business volumes depending on the sector, as well as direct (face masks, gel sanitizer, cleaning and disinfecting, COVID bonus, etc.) and indirect (social distancing, loss of production, absenteeism, etc.) additional costs that could not be fully shared with customers. Although the health crisis continued into the first half of 2021, the impact was less severe and the effects better handled, which is the main reason for the improvement in EBIT versus 2020.
• International EBIT continued to grow due to the improvement in Spain's results, after lockdown restrictions in 2020 similar to those imposed in France, and skillful management of a large number of new site launches over the past 18 months.

As a reminder, ID Logistics' business is seasonal and the first half tends to be less profitable than the second.

Amortization charges for acquired customer relations were stable compared to the previous year.

There were no non-recurring expenses in H1 2021. Non-recurring expenses in the first half of 2020 were related to the shutdown of the Group's activities in China and included:

• write-offof goodwill relating to ID Logistics activities in China following the cessation of the Group's activities in the country (€0.5 million);

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