FINANCIERE DE L'ODET: Third-quarter 2017 financial information

FINANCIÈRE DE l'ODET

Consolidated Financière de l'Odet turnover up 5%

1. Havas third quarter 2017 turnover is included in Vivendi's third quarter turnover. 2017 figures include, Vivendi contribution from April 26 to September 30; Havas contribution from January 1 to June 30, 2017.

At constant scope and exchange rates, compared with the first nine months of 2016, change in the major business lines was as follows:

• Transportation and logistics, Oil logistics:
   
  • The turnover of the Transportation and logistics business increased by nearly 6% thanks to growth in the turnover of the freight forwarding business and in logistics, which benefited from higher freight rates and volumes. Turnover from operations in Africa also rose, with an increase in pace in the third quarter of 2017. It reflects strong growth in the port terminal business, particularly in West Africa (TICT in Nigeria, Abidjan Terminal in Republic of Côte d'Ivoire, Conakry Terminal in Guinea, Benin Terminal, Freetown Terminal in Sierra Leone, etc.), and a slight increase in the logistics and handling activities driven by new projects, although some countries such as Tanzania and Cameroon are still penalized by the weakness of the oil sector. Lastly, rail operations were once again impacted by a decline in passenger and freight traffic.
     
  • Oil logistics turnover (+11%) benefited from higher prices for oil products, which offset lower volumes attributable to less favorable weather condition than in the first nine months of 2016.

-  Communication (Vivendi, Havas, media, telecoms): turnover in the Communications businesses was up 3%. The Vivendi Group delivered reported organic growth of 4% over the first nine months, benefiting from the growth of Universal Music Group (UMG) (+11%) and the stabilization of the Canal+ Group in the third quarter of 2017 (compared with a decline of 1.6% in turnover in the first nine months of 2017 and a decline of 2.7% in the same period of 2016). Havas, now consolidated by Vivendi, reported turnover down 0.3%, although with a slight increase in the third quarter of 2017 (+0.1%). The increase in turnover from other communication businesses is attributable mainly to strong growth in telecom activities (Wifirst), where the number of rooms and camping sites in service continues to expand at a sustained pace.

-  Electricity storage and solutions: the turnover of industrial activities (electricity storage, plastic films, dedicated terminals and systems) increased by 1% compared with the first nine months of 2016, thanks to strong growth in the dedicated terminals division (terminals and air locks for stations and airports) and strong turnover in plastic films. In contrast, the first nine months were marked by a decline in Bluecar sales, partly offset by stronger Bluebus sales and growth in the car-sharing activity, which continues to expand steadily and now has a fleet of 4,950 electric vehicles and 1,600 stations equipped with 8,200 charging terminals. The number of annual premium subscribers active in the Bolloré Group's car-sharing services in France (Paris, Lyon, Bordeaux), the United States (Indianapolis) and Italy (started in Turin in October 2016) has edged down slightly to 115,500 due to the success of the launch of the ready-to-go subscriber offering, which represented 48,000 subscriptions at the end of September 2017. The car-sharing activities operated by the Bolloré Group currently represent approximately 6 million rentals per year.

• Transportation and logistics 
   
  • Kribi: signing of the concession contract for the new Kribi container terminal in Cameroon on July 25, 2017. The consortium comprising Bolloré Transport & Logistics, CMA-CGM and Chinese group CHEC has been entrusted with the funding and operation of the Kribi container terminal for 25 years, which they will manage as a Public-Private Partnership. With a 350-meter wharf and a depth of 16 meters, the Kribi terminal can accommodate vessels with a capacity of 8,000 TEU. In Phase 2, Kribi Container Terminal will be able to handle 11,000-TEU vessels. It will boast a 715-meter wharf, and will have the capacity to handle 1.3 million TEU.
     
  • Partial offer for the assets of Necotrans: approval by the Paris Commercial Court at the end of August 2017 of the offer by the consortium of which Bolloré Group is a member. This in particular has resulted in:
    • the takeover of the French freight forwarding business;
    • the acquisition of certain oilfield activities in Africa;
    • the acquisition of the Brazzaville terminal in Congo and that of Lomé in Togo (conventional);
    • the acquisition of Necotrans' non-controlling interests in terminals operated by the Group (Cameroon, Republic of Côte d'Ivoire, Burkina Faso and Benin).
       
  • Sitarail: signing of an agreement with the Republic of Côte d'Ivoire and Burkina Faso governments on a program to renovate the railroad linking Abidjan (Republic of Côte d'Ivoire) and Kaya (Burkina Faso).

• Gabon: inauguration on October 14, 2017 of the new Owendo multi-purpose terminal for which the Bolloré Group and the Olam Group have partnered for the development and operation. Under this agreement, STCG, a subsidiary of the Bolloré Group, already the concession holder of the existing container terminal, will become the exclusive operator of the container business on this new port, while the Olam group (Gsez-Ports) will manage the conventional terminal. These developments will increase the capacity of the port of Owendo, thereby meeting the needs of the Gabonese economy for the coming years.

• Communication (Vivendi, Havas, media, telecoms)
   
  • Havas: acquisition by Vivendi of the Bolloré Group's 59.2% stake in Havas at a price of 9.25 euros per share in July 2017, then launch by Vivendi of a simplified takeover bid on Havas in September 2017. Following completion of the simplified public tender offer that ran from September 21 to October 4, 2017, and the subsequent processing of an additional redemption request for approximately 1.6% of Havas's share capital, as of October 11, 2017, Vivendi held 96.15% of Havas's share capital. Due to the sharply reduced free float, Vivendi decided to implement a public buyout offer followed by a mandatory squeeze-out, which is expected to be launched shortly.
     
• Electricity storage and solutions
   
  • Blue Solutions: finalization of Bolloré's simplified takeover bid on Blue Solutions in July, with the acquisition of 7.6% of Blue Solutions for 37.3 million euros.
     
• Shareholdings 
   
  • Gaumont: sale of the stake in Gaumont for 31 million euros in July 2017, as part of the buyout offer launched by the company.

(1) at constant scope and exchange rates.
All amounts are expressed in millions of euros and rounded to the nearest decimal.
As a result, the sum of the rounded amounts may differ slightly from the reported total.