Significant demand for original content and high-performance broadband products but continuing supply constraints resulting from the pandemic. Technicolor on track to meet its 2021 and 2022 guidance
Paris (France), November 04, 2021 – Technicolor (Euronext Paris: TCH; OTCQX: TCLRY) is today announcing its results for the third quarter of 2021.
Richard Moat, Chief Executive Officer of Technicolor, stated:
“Technicolor benefited from strong and growing demand across all activities during the third quarter of 2021. Results are robust, and demonstrate significant profitability improvement, reflecting our disciplined operational focus. Demand for creative VFX artistry and technology continues to improve across media and entertainment, boosted by the increasing desire for original content. Live action production is ramping up as expected, with almost all of our 2021 Visual Effects and Animation pipeline committed, and more than 75% of our 2022 pipeline. Revenue and profitability in DVD Services was ahead of expectations, driven by higher-than-anticipated strength in back catalog, and ongoing growth in supply chain activity. In Connected Home, despite very strong demand in North America and in Eurasia, revenue has been impacted by component shortages, leading to sales being pushed into 2022. However, our customers are now committing on volumes and have agreed on pass through contracts to secure components supply. Based on business activity for the first nine months and the continued successful optimization of its businesses, the Group is confirming its outlook for 2021 and 2022.”
Technicolor delivered a positive third quarter 2021, and a significant improvement in profitability, despite supply constraint challenges affecting both Connecting Home and Technicolor Creative Studios.
For the first nine months of the year, Technicolor reported:
All Technicolor activities are benefiting from sustained market demand
The Group is on track to achieve the c. €115 million cost savings planned for calendar year 2021, with €75 million cost savings realized in the first 9 months. The target of delivering a cumulative €325 million in savings by the end of 2022 is confirmed.
Based on business activity for the first 9 months, the Group is reiterating the outlook presented in its FY 2020 results press release issued on March 11, 2021.
Third quarter 2021 results and forward outlook – key highlights
|
Third Quarter |
YTD September |
|
|||||||
In € million |
2021 |
2020 |
At |
At |
2021 |
2020 |
At |
At |
|
|
Revenues from continuing operations |
690 |
798 |
(13.4)% |
(14.6)% |
2,050 |
2,230 |
(8.1)% |
(4.4)% |
||
Adjusted EBITDA from continuing operations |
76 |
53 |
+42.8% |
+41.4% |
176 |
106 |
+66.6% |
+71.3% |
||
As a % of revenues |
11.0% |
6.7% |
|
8.6% |
4.7% |
|
||||
Adjusted EBITA from continuing operations |
31 |
2 |
na |
na |
46 |
(65) |
na |
na |
||
Free Cash Flow from continuing before Tax & Financial |
3 |
(35) |
na |
na |
(206) |
(278) |
+26.0% |
+22.1% |
End of September 2021 year-to-date Group key indicators for continuing operations:
Outlook
Continuing Operations – post IFRS 16 |
|
|
|
|
€ million, FYE Dec post IFRS-16 |
2020 |
2021e |
2022e |
|
|
||||
Adjusted EBITDA from continuing operations |
167 |
270 |
385 |
|
Adjusted EBITA from continuing operations |
(56) |
60 |
180 |
|
Continuing FCF before financial results and tax |
(124) |
c.0 |
230 |
Segment Review – Third quarter 2021 Results Highlights
Third Quarter |
Change QoQ |
YTD September |
Change YoY |
|||||
Technicolor Creative Studios* |
2021 |
2020 |
At current rate |
At constant rate |
2021 |
2020 |
At current rate |
At constant rate |
In € million |
||||||||
Revenues |
157 |
111 |
+41.2% |
+37.9% |
452 |
390 |
+15.9% |
+17.9% |
Adj. EBITDA |
33 |
(2) |
na |
na |
74 |
0 |
na |
na |
As a % of revenues |
+21.3% |
(1.5)% |
|
|
+16.4% |
+0.1% |
|
|
Adj. EBITA |
16 |
(24) |
na |
na |
22 |
(75) |
na |
na |
As a % of revenues |
+10.1% |
(21.1)% |
|
|
+4.8% |
(19.2)% |
|
|
(*) including Post Production
###
Third Quarter |
Change QoQ |
YTD September |
Change YoY |
|||||
Connected Home |
2021 |
2020 |
At current rate |
At constant rate |
2021 |
2020 |
At current rate |
At constant rate |
In € million |
||||||||
Revenues |
330 |
488 |
(32.4)% |
(33.9)% |
1,100 |
1,327 |
(17.1)% |
(13.1)% |
Adj. EBITDA |
17 |
31 |
(45.5)% |
(50.9)% |
73 |
85 |
(13.6)% |
(11.0)% |
As a % of revenues |
+5.1% |
+6.3% |
|
|
+6.7% |
+6.4% |
|
|
Adj. EBITA |
1 |
15 |
(90.7)% |
na |
31 |
35 |
(12.9)% |
(13.0)% |
As a % of revenues |
+0.4% |
+3.0% |
|
|
+2.8% |
+2.7% |
|
|
The division has intensified its collaboration with clients and suppliers to maximize deliveries, and to mitigate potential profitability and working capital impacts.
New wins and product launches are driven by better user experience in the home with Wi-Fi 6, while innovation is coming with new technologies in the field of sound and far-field voice. Public announcements for the quarter were:
The division continues to focus on selective investments in key customers, platform-based products and partnerships optimizing fixed costs that will lead to improved margins over the year.
Third Quarter |
YTD September |
||||||
In € million |
2021 |
2020 |
% Change* |
2021 |
2020 |
% Change* |
|
Total revenues |
330 |
488 |
(33.9)% |
1,100 |
1,327 |
(13.1)% |
|
By region |
Americas: |
212 |
327 |
(36.9)% |
729 |
902 |
(15.3)% |
- North America |
185 |
282 |
(36.2)% |
633 |
745 |
(11.5)% |
|
- Latin America |
27 |
45 |
(41.0)% |
96 |
157 |
(33.2)% |
|
Eurasia: |
118 |
161 |
(27.8)% |
371 |
425 |
(8.2)% |
|
- Europe, Middle East and Africa |
63 |
92 |
(33.2)% |
218 |
246 |
(6.3)% |
|
- Asia-Pacific |
55 |
69 |
(20.6)% |
153 |
179 |
(11.0)% |
|
By product |
Video |
137 |
187 |
(28.2)% |
415 |
505 |
(14.0)% |
Broadband |
193 |
302 |
(37.4)% |
685 |
822 |
(12.5)% |
(*) Change at constant rate
###
Third Quarter |
Change QoQ |
YTD September |
Change YoY |
|||||
DVD Services |
2021 |
2020 |
At current rate |
At constant rate |
2021 |
2020 |
At current rate |
At constant rate |
In € million |
||||||||
Revenues |
198 |
193 |
+2.5% |
+3.6% |
481 |
495 |
(2.9)% |
+1.2% |
Adj. EBITDA |
29 |
27 |
+6.1% |
+9.9% |
39 |
29 |
+37.3% |
+42.6% |
As a % of revenues |
+14.6% |
+14.1% |
|
|
+8.2% |
+5.8% |
|
|
Adj. EBITA |
18 |
15 |
+18.6% |
+25.4% |
8 |
(14) |
na |
na |
As a % of revenues |
+9.0% |
+7.8% |
|
|
+1.6% |
(2.9)% |
|
|
DVD Services continued to progress previously announced structural division-wide initiatives to adapt distribution and manufacturing operations, and related customer contract agreements, in response to continued volume reductions. Two significant North American facility closures were completed in the first half of 2021 as part the ongoing transformation plan.
Third Quarter |
September YTD |
||||||
In million units |
2021 |
2020 |
% Change |
2021 |
2020 |
% Change |
|
Total Combined Volumes |
242.9 |
260.2 |
(6.7)% |
582.0 |
586.4 |
(0.8)% |
|
By Format |
SD-DVD |
168.0 |
189.3 |
(11.2)% |
413.9 |
409.4 |
1.1% |
Blu-ray™ |
66.5 |
61.5 |
7.8% |
143.9 |
150.0 |
(4.4)% |
|
CD |
8.5 |
9.4 |
(9.8)% |
24.2 |
27.0 |
(10.4)% |
|
By Segment |
Studio/Video |
226.4 |
240.1 |
(5.7)% |
541.9 |
537.5 |
0.7% |
Games |
5.9 |
7.7 |
(23.4)% |
10.7 |
14.0 |
(23.6)% |
|
Music & Software |
10.6 |
12.4 |
(14.6)% |
29.3 |
34.9 |
(16.0)% |
The ongoing Covid-19 impact will be dependent on the extent and duration of ongoing restrictions driven by the rate of new Covid case growth. DVD Services has accelerated certain aspects of its future restructuring plans in an effort to adapt to these potential impacts.
###
Third Quarter |
Change QtQ |
YTD September |
Change YoY |
|||||
Corporate & |
2021 |
2020 |
At current rate |
At constant rate |
2021 |
2020 |
At current rate |
At constant rate |
In € million |
||||||||
Revenues |
5 |
5 |
+3.0% |
+3.0% |
16 |
18 |
(7.9)% |
(7.9)% |
Adj. EBITDA |
(3) |
(3) |
+2.3% |
(0.4)% |
(11) |
(8) |
(27.9)% |
(30.0)% |
As a % of revenues |
(58.0)% |
(58.4)% |
|
|
(64.0)% |
(46.1)% |
|
|
Adj. EBITA |
(4) |
(4) |
(3.9)% |
(1.8)% |
(14) |
(11) |
(22.9)% |
(24.8)% |
As a % of revenues |
(77.9)% |
(77.3)% |
|
|
(83.2)% |
(62.4)% |
|
|
Corporate & Other recorded revenues of €16 million at the end of September 2021 YTD, decreasing compared to last year as a result of a reduction in retained patent revenue. Adjusted EBITDA amounted to €(11) million and Adjusted EBITA was €(14) million.
###
As part of the financial restructuring transaction completed in 2020, debt maturities were extended and new financings executed, reinforcing the Group’s liquidity.
In million currency |
Currency |
Nominal Amount |
IFRS Amount |
Type of rate |
Nominal rate (1) |
Repayment Type |
Final maturity |
Moodys / S&P rating |
|
||||||
New Money Notes |
EUR |
371 |
381 |
Floating |
12.00%(2) |
Bullet |
Jun. 30, 2024 |
Caa1/B |
|
||||||
New Money Term Loans |
USD |
110 |
113 |
Floating |
12.15%(3) |
Bullet |
Jun. 30, 2024 |
Caa1/B |
|
||||||
Reinstated Term Loans |
EUR |
467 |
398 |
Floating |
6.00%(4) |
Bullet |
Dec. 31, 2024 |
Caa3/CCC |
|
||||||
Reinstated Term Loans |
USD |
126 |
107 |
Floating |
5.90%(5) |
Bullet |
Dec. 31, 2024 |
Caa3/CCC |
|
||||||
Subtotal |
EUR |
1,074 |
999 |
|
8.69% |
|
|
|
|
||||||
Lease Liabilities(6) |
Various |
186 |
186 |
Fixed |
8.20% |
|
|
|
|
||||||
Accrued PIK Interest |
EUR+USD |
5 |
5 |
NA |
0% |
|
|
|
|
||||||
Accrued Interest |
Various |
4 |
4 |
NA |
0% |
|
|
|
|
||||||
Wells Fargo Line |
USD |
37 |
37 |
Floating |
5.25% |
Revolving |
Dec.31, |
|
|
||||||
Other Debt |
Various |
1 |
1 |
NA |
0% |
|
|
|
|
||||||
Total Gross Debt |
|
1,307 |
1,232 |
|
8.46% |
|
|
|
|
||||||
Cash & Cash equivalents |
Various |
49 |
49 |
|
|
|
|
|
|
||||||
Total Net Debt |
|
1,258 |
1,183 |
|
|
|
|
|
|
||||||
(1) Rates as of September 30, 2021. |
|||||||||||||||
(2) Cash interest of 6-month EURIBOR with a floor of 0% +6.00% and PIK interest of 6.00%. |
|||||||||||||||
(3) Cash interest of 6-month USD LIBOR with a floor of 0% +6.00% and PIK interest of 6.00%. |
|||||||||||||||
(4) Cash interest of 6-month EURIBOR with a floor of 0% + 3.00% and PIK interest of 3.00%. |
|||||||||||||||
(5) Cash interest of 6-month USD LIBOR with a floor of 0% + 2.75% and PIK interest of 3.00% |
|||||||||||||||
(6) Of which €10 million are capital leases and €176 million is operating lease debt under IFRS 16 |
|||||||||||||||
Summary of consolidated results for nine months ended
|
Third Quarter |
YTD September |
|||||
In € million |
2021 |
2020 |
Change* |
2021 |
2020 |
Change* |
|
Revenues from continuing operations |
690 |
798 |
(13.4)% |
2,050 |
2,230 |
(8.1)% |
|
Change at constant currency (%) |
- |
- |
(14.6)% |
- |
- |
(4.4)% |
|
o/w |
Technicolor Creative Studios |
157 |
111 |
+41.2% |
452 |
390 |
+15.9% |
DVD Services |
198 |
193 |
+2.5% |
481 |
495 |
(2.9)% |
|
Connected Home |
330 |
488 |
(32.4)% |
1,100 |
1,327 |
(17.1)% |
|
Corporate & Other |
5 |
5 |
+3.0% |
16 |
18 |
(7.9)% |
|
Adjusted EBITDA from continuing operations |
76 |
53 |
+42.8% |
176 |
106 |
+66.6% |
|
Change at constant currency (%) |
- |
- |
+41.4% |
- |
- |
+71.3% |
|
As a % of revenues |
+11.0% |
+6.7% |
434bps |
+8.6% |
+4.7% |
385bps |
|
o/w |
Technicolor Creative Studios |
33 |
(2) |
na |
74 |
0 |
na |
DVD Services |
29 |
27 |
+6.1% |
39 |
29 |
+37.3% |
|
Connected Home |
17 |
31 |
(45.5)% |
73 |
85 |
(13.6)% |
|
Corporate & Other |
(3) |
(3) |
+2.3% |
(11) |
(8) |
(27.9)% |
|
Adjusted EBITA from continuing operations |
31 |
2 |
na |
46 |
(65) |
na |
|
Change at constant currency (%) |
- |
- |
na |
- |
- |
na |
|
As a % of revenues |
+4.5% |
+0.3% |
420bps |
+2.3% |
(2.9)% |
518bps |
|
Adjusted EBIT from continuing operations |
21 |
(7) |
na |
18 |
(96) |
na |
|
Change at constant currency (%) |
- |
- |
na |
- |
- |
na |
|
As a % of revenues |
+3.1% |
(0.9)% |
400bps |
+0.9% |
(4.3)% |
519bps |
|
EBIT from continuing operations |
12 |
(17) |
na |
7 |
(212) |
na |
|
Change at constant currency (%) |
- |
- |
na |
- |
- |
na |
|
As a % of revenues |
+1.7% |
(2.2)% |
385bps |
+0.3% |
(9.5)% |
983bps |
|
Financial result |
(31) |
172 |
- |
(94) |
105 |
- |
|
Income tax |
(8) |
(1) |
- |
(19) |
(5) |
- |
|
Share of profit/(loss) from associates |
0 |
0 |
- |
0 |
0 |
- |
|
Profit/(loss) from continuing operations |
(28) |
154 |
- |
(105) |
(111) |
- |
|
Profit/(loss) from discontinued operations |
1 |
(9) |
- |
(1) |
(10) |
- |
|
Net income |
(27) |
144 |
- |
(106) |
(121) |
- |
(*) Change at current rate
Reconciliation of adjusted indicators
In addition to published results, and with the aim of providing a more comparable view of the evolution of its operating performance in 2021 compared to 2020, Technicolor is presenting a set of adjusted indicators which exclude the following items as per the statement of operations of the Group’s consolidated financial statements:
These adjustments, the reconciliation of which is detailed in the following table, amounted to an impact on EBIT from continuing operations of €(11) million in 2021 compared to €(116) million in 2020 (including IFRS 16).
|
YTD September |
||
In € million |
2021 |
2020 |
Change (*) |
EBIT from continuing operations |
7 |
(212) |
219 |
Restructuring charges, net |
(31) |
(51) |
20 |
Net impairment losses on non-current operating assets |
0 |
(71) |
71 |
Other income/(expense) |
20 |
6 |
14 |
Adjusted EBIT from continuing operations |
18 |
(96) |
114 |
As a % of revenues |
+0.9% |
(4.3)% |
519bps |
Depreciation and amortization (“D&A”) (**) |
158 |
200 |
(42) |
IT capacity use for rendering in Technicolor Creative Studios |
0 |
2 |
(2) |
Adjusted EBITDA from continuing operations |
176 |
106 |
70 |
As a % of revenues |
8.6% |
4.7% |
385bps |
(*) Variation at current rates
(**) including reserves (Risk, litigation and warranty reserves)
Free Cash Flow Reconciliation and Summarized Financial Structure
Technicolor defines “Free Cash Flow” as net cash from operating activities (continuing and discontinued) plus proceeds from sales of property, plant and equipment (“PPE”) and intangible assets, minus purchases of PPE and purchases of intangible assets including capitalization of development costs.
Nine months ended (IFRS) |
|
||
In € million |
September 30, |
September 30, |
|
2021 |
2020 |
|
|
|
|||
Adjusted EBITDA from continuing operations |
176 |
106 |
|
Changes in working capital and other assets and liabilities |
(240) |
(238) |
|
IT capacity use for rendering in Creative Studios |
- |
(2) |
|
Pension cash usage of the period |
(19) |
(22) |
|
Restructuring provisions – cash usage of the period |
(60) |
(36) |
|
Interest paid |
(59) |
(45) |
|
Interest received |
- |
- |
|
Income tax paid |
(13) |
(4) |
|
Other items |
1 |
(10) |
|
Net operating cash generated from continuing activities |
(213) |
(252) |
|
Purchases of property, plant and equipment (PPE) |
(28) |
(25) |
|
Proceeds from sale of PPE and intangible assets |
- |
- |
|
Purchases of intangible assets including capitalization |
(36) |
(58) |
|
of development costs |
|
||
Net operating cash used in discontinued activities |
(15) |
(12) |
|
Free cash-flow |
(292) |
(347) |
|
Nominal gross debt (including Lease debt) |
1,307 |
1,285 |
|
Cash position |
49 |
241 |
|
Net financial debt at nominal value (non IFRS) |
1,258 |
1,044 |
|
IFRS adjustment |
(75) |
(89) |
|
Net financial debt (IFRS) |
1,183 |
955 |
An analyst audio webcast hosted by Richard Moat, CEO and Laurent Carozzi, CFO will be held today, November 04, 2021 at 6:30pm CET.
Financial calendar
FY 2021 results |
24 February 2022 |
###
Warning: Forward Looking Statements
This press release contains certain statements that constitute "forward-looking statements", including but not limited to statements that are predictions of or indicate future events, trends, plans or objectives, based on certain assumptions or which do not directly relate to historical or current facts. Such forward-looking statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the future results expressed, forecasted or implied by such forward-looking statements. For a more complete list and description of such risks and uncertainties, refer to Technicolor’s filings with the French Autorité des marchés financiers
###
About Technicolor:
www.technicolor.com
Technicolor shares are admitted to trading on the regulated market of Euronext Paris (TCH) and are tradable in the form of American Depositary Receipts (ADR) in the United States on the OTCQX market (TCLRY).
Investor Relations Media
Christophe le Mignan Stephanie Varlotta
Christophe.lemignan@technicolor.com Stephanie.varlotta@technicolor.com
Alexandra Fichelson Nathalie Feld
Alexandra.fichelson@technicolor.com nfeld@image7.fr
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
Nine months ended September 30, |
|||
(€ in million) |
2021 |
|
2020 |
CONTINUING OPERATIONS |
|||
Revenues |
2,050 |
2,230 |
|
Cost of sales |
(1,779) |
(2,040) |
|
Gross margin |
271 |
|
190 |
|
|||
Selling and administrative expenses |
(189) |
|
(214) |
Research and development expenses |
(63) |
|
(72) |
Restructuring costs |
(31) |
|
(51) |
Net impairment gains (losses) on non-current operating assets |
0 |
|
(71) |
Other income (expense) |
20 |
|
6 |
Earnings before Interest & Tax (EBIT) from continuing operations |
7 |
|
(212) |
|
|||
Interest income |
0 |
|
0 |
Interest expense |
(93) |
|
(54) |
Other financial income (expense) |
(1) |
|
159 |
Net financial income (expense) |
(94) |
|
105 |
|
|||
Share of gain (loss) from associates |
0 |
|
0 |
Income tax |
(19) |
|
(5) |
Profit (loss) from continuing operations |
(105) |
|
(111) |
|
|||
DISCONTINUED OPERATIONS |
|
||
Net gain (loss) from discontinued operations |
(1) |
|
(10) |
|
|||
Net income (loss) |
(106) |
|
(121) |
|
|||
Attribuable to: |
|||
- Equity holders |
(106) |
(121) |
|
- Non-controlling interest |
0 |
0 |
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(€ in million) |
September 30, 2021 |
December 31, 2020 |
||
ASSETS |
||||
Goodwill |
756 |
716 |
||
Intangible assets |
516 |
535 |
||
Property, plant and equipment |
134 |
140 |
||
Right-of-use assets |
159 |
148 |
||
|
Other operating non-current assets |
29 |
27 |
|
TOTAL OPERATING NON-CURRENT ASSETS |
1,594 |
1,566 |
||
Non-consolidated investments |
16 |
14 |
||
|
Other non-current financial assets |
39 |
47 |
|
TOTAL FINANCIAL NON-CURRENT ASSETS |
55 |
61 |
||
Investments in associates and joint-ventures |
2 |
1 |
||
|
Deferred tax assets |
52 |
45 |
|
TOTAL NON-CURRENT ASSETS |
1,703 |
1,674 |
||
Inventories |
281 |
195 |
||
Trade accounts and notes receivable |
470 |
425 |
||
Contract assets |
83 |
63 |
||
|
Other operating current assets |
235 |
224 |
|
TOTAL OPERATING CURRENT ASSETS |
1,069 |
907 |
||
Income tax receivable |
16 |
14 |
||
Other financial current assets |
26 |
17 |
||
Cash and cash equivalents |
49 |
330 |
||
|
Assets classified as held for sale |
1 |
76 |
|
TOTAL CURRENT ASSETS |
1,162 |
1,344 |
||
TOTAL ASSETS |
2,865 |
3,018 |
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(€ in million) |
September 30, 2021 |
December 31, 2020 |
||
EQUITY AND LIABILITIES |
||||
Common stock (235,823,571 shares at September 30, 2021 with nominal value of 0.01 euro per share) |
2 |
2 |
||
Subordinated Perpetual Notes |
500 |
500 |
||
Additional paid-in capital & reserves |
59 |
126 |
||
|
Cumulative translation adjustment |
(422) |
(456) |
|
Shareholders equity attributable to owners of the parent |
140 |
173 |
||
|
Non-controlling interests |
0 |
0 |
|
TOTAL EQUITY |
140 |
173 |
||
Retirement benefits obligations |
283 |
325 |
||
Provisions |
25 |
33 |
||
Contract liabilities |
2 |
2 |
||
|
Other operating non-current liabilities |
21 |
21 |
|
TOTAL OPERATING NON-CURRENT LIABILITIES |
331 |
381 |
||
Borrowings |
1,004 |
948 |
||
Lease liabilities |
123 |
122 |
||
Other non-current liabilities |
1 |
- |
||
|
Deferred tax liabilities |
19 |
15 |
|
TOTAL NON-CURRENT LIABILITIES |
1,477 |
1,466 |
||
Retirement benefits obligations |
31 |
30 |
||
Provisions |
56 |
90 |
||
Trade accounts and notes payable |
567 |
710 |
||
Accrued employee expenses |
126 |
142 |
||
Contract liabilities |
68 |
41 |
||
Other current operating liabilities |
260 |
215 |
||
TOTAL OPERATING CURRENT LIABILITIES |
1,109 |
1,228 |
||
Borrowings |
42 |
16 |
||
Lease liabilities |
62 |
|
56 |
|
Income tax payable |
33 |
|
21 |
|
|
Other current financial liabilities |
1 |
|
2 |
Liabilities classified as held for sale |
- |
|
56 |
|
TOTAL CURRENT LIABILITIES |
1,248 |
1,379 |
||
|
|
|
||
TOTAL LIABILITIES |
2,725 |
2,845 |
||
TOTAL EQUITY & LIABILITIES |
2,865 |
3,018 |
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
Nine months ended |
|||
(€ in million) |
2021 |
2020 |
|
Net income (loss) |
(106) |
(121) |
|
Income (loss) from discontinuing activities |
(1) |
(10) |
|
Profit (loss) from continuing activities |
(105) |
(111) |
|
Summary adjustments to reconcile profit from continuing activities to cash generated from continuing operations |
|||
Depreciation and amortization |
166 |
210 |
|
Impairment of assets |
0 |
74 |
|
Net changes in provisions |
(49) |
(9) |
|
Gain (loss) on asset disposals |
(29) |
13 |
|
Interest (income) and expense |
93 |
54 |
|
Other items (including tax) |
23 |
|
(194) |
Changes in working capital and other assets and liabilities |
(240) |
(241) |
|
Cash generated from continuing activities |
(141) |
(203) |
|
Interest paid on lease debt |
(11) |
(15) |
|
Interest paid |
(48) |
(30) |
|
Interest received |
0 |
- |
|
Income tax paid |
(13) |
(4) |
|
NET OPERATING CASH GENERATED FROM CONTINUING ACTIVITIES (I) |
(213) |
(252) |
|
Acquisition of subsidiaries, associates and investments, net of cash acquired |
0 |
(7) |
|
Proceeds from sale of investments, net of cash |
27 |
9 |
|
Purchases of property, plant and equipment (PPE) |
(28) |
(25) |
|
Proceeds from sale of PPE and intangible assets |
0 |
- |
|
Purchases of intangible assets including capitalization of development costs |
(36) |
(58) |
|
Cash collateral and security deposits granted to third parties |
(2) |
(26) |
|
Cash collateral and security deposits reimbursed by third parties |
1 |
- |
|
NET INVESTING CASH USED IN CONTINUING ACTIVITIES (II) |
(38) |
(107) |
|
Increase of Capital |
0 |
|
60 |
Proceeds from borrowings |
35 |
757 |
|
Repayments of lease debt |
(50) |
(64) |
|
Repayments of borrowings |
0 |
(158) |
|
Fees paid linked to the debt and capital operations |
(1) |
(41) |
|
Other |
(4) |
5 |
|
NET FINANCING CASH USED IN CONTINUING ACTIVITIES (III) |
(20) |
557 |
|
NET CASH FROM DISCONTINUED ACTIVITIES (IV) |
(21) |
(12) |
|
CASH AND CASH EQUIVALENTS AT THE BEGINING OF THE PERIOD |
330 |
65 |
|
Net increase (decrease) in cash and cash equivalents (I+II+III+IV) |
(291) |
186 |
|
Exchange gains / (losses) on cash and cash equivalents |
10 |
(10) |
|
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD |
49 |
241 |
Free cash flow defined as: Adj. EBITDA – (net capex + restructuring cash expenses + change in pension reserves + change in working capital and other assets & liabilities + cash impact of other non-current result).