- Revenue stable at €1.085 billion;
- EBITDA down 2%1 to €560 million, in line with announced
objectives;
- Strong growth of 20% in consolidated net profit to €159
million2;
- A 14% increase in the dividend will be proposed at the next
AGM on 30 April 2020, to €0.41 per share, bringing the total amount
returned to shareholders, including share-buy-backs, to €1.4
billion since 2008.
Regulatory News:
Getlink (Paris:GET):
Jacques Gounon, Chairman and Chief Executive of the Group
said: “Getlink has achieved its highest net result since 2007 on a
like-for-like basis. The Group performed robustly in 2019, in line
with our forecasts and in line with market expectations, despite a
changing and complex environment.”
- 2020 financial objectives
- 2020 dividend in respect of the 2019
financial year: €0.41 per share subject to approval at the AGM on
30 April 2020, an increase of €0.05 per share;
- EBITDA3: €580million based on taking a
prudent view of the current risk from the COVID-19 virus.
- EBITDA above €735 million;
- Dividend increase of €0.05 per share per
year.
ANNUAL HIGHLIGHTS
- Group
- Settlement with the UK Secretary of State for Transport
totalling £33 million (€38 million) of which £11 million has been
received.
- Change to the governance structure from 1 July 2020, with the
appointment of Yann Leriche as Chief Executive Officer and Jacques
Gounon as Chairman of the Board of Directors.
- Eurotunnel
- In 2019, Eurotunnel Shuttles transported more than 2.6 million
passenger vehicles and nearly 1.6 million trucks;
- Yield increase of 3%, in line with the quality of service
strategy and premium policy;
- The Le Shuttle and Le Shuttle Freight services confirmed their
position as leading market players on the Short Straits, with
market shares of 56.9% for the car activity and 40.4% for the truck
activity;
- A new record for Eurostar which carried more than 11 million
passengers in 2019. This is driven by the development of the London
– Amsterdam service;
- €30 million investment in new infrastructure in preparation for
Brexit (Pit-Stops, French e-gates, customs and Sanitary and
Phytosanitary control centre (SPS), export parking, Fréthun
scanner) and smart border technology.
- Europorte
- Europorte recorded good growth in annual revenue, up 4% to
€126.5 million, despite the difficult end to the year impacted by
SNCF strikes;
- Europorte achieved a substantial EBITDA of €24 million;
- Europorte recorded a positive net profit before tax, confirming
the profitability of this activity.
- ElecLink
- The IGC has announced that it has received the final dossier,
and that it intends to take its final decision on authorising the
installation of the cable in the Tunnel in April 2020.
FINANCIAL RESULTS
The Group’s consolidated revenue for the 2019 financial year
amounts to €1.085 billion, a very slight increase compared to
2018.
Consolidated EBITDA was in line with guidance at €560 million,
down €12 million compared to 2018 at a constant exchange rate.
Operating profit was €409 million, up €13 million.
The Group’s consolidated net profit for the 2019 financial year
was €159 million compared to €132 million in 2018, a strong
increase of 20%.
The cost of net financial debt fell by €14 million to €257
million due mainly to the favourable impact of lower British and
French inflation rates on the cost of the index-linked tranche of
the debt.
Cash held at the end of December 2019 amounted to €525
million.
OBJECTIVES
Confident in the robustness of its economic model and the solid
results in 2019, the Group confirms its intention to pursue its
dividend policy in the service of its shareholders. Accordingly, it
will propose at the AGM to increase the dividend to €0.41 per share
for the 2019 financial year, an increase of 14% compared to
2018.
In an economic context that is still uncertain following the
UK’s exit from the European Union on 31 January 2020 and with
possible consequences of the COVID-19 coronavirus crisis, the Group
has set a financial target for a 2020 EBITDA of €580 million at an
exchange rate of £1=€1.14 and on a like-for-like basis.
The uncertain short-term environment does not diminish the
Group’s confidence in the soundness of its various businesses and
their growth potential in the medium- and long-term. The Group
maintains its objective of exceeding €735 million in EBITDA by 2022
(at £1=€1.14) following the entry into service of the ElecLink
electricity interconnector mid-2021 or shortly thereafter.
Dates for your 2020
diary:
23 April 2020: 2020 first quarter revenue and traffic 30 April
2020: AGM 23 July 2020: 2020 half-year results
Additional information:
The Board of Directors at its meeting on Wednesday 26 February
2020 under the chairmanship of Jacques Gounon, approved the
financial statements for the year ending 31 December 2019.
The financial analysis of the consolidated financial statements
is available on the Group’s website: www.getlinkgroup.com
Getlink SE’s consolidated and parent company accounts for 2019
have been audited and certified by the statutory auditors.
REVIEW OF THE CONSOLIDATED RESULTS AND
FINANCIAL SITUATION THE FOR THE YEAR ENDED 31 DECEMBER
2019
The following information relating to Getlink SE’s financial
situation and consolidated results must be read in conjunction with
the consolidated financial statements set out in section 2.2.1 of
the 2019 Universal Registration Document.
Accounting standards applied4 and presentation of the
consolidated results
Pursuant to EC Regulation 297/2008 of 11 March 2008 on the
application of international accounting standards, the consolidated
financial statements of Getlink SE for the financial year ended 31
December 2019 have been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted by the European
Union at 31 December 2019.
1 ANALYSIS OF CONSOLIDATED INCOME STATEMENT
In order to enable a better comparison between the two years,
the 2018 consolidated income statement presented in this section
has been recalculated at the exchange rate used for the 2019 income
statement of £1=€1.140.
Summary
In 2019, the Group’s consolidated revenues amounted to €1,085
million, an increase of €1 million compared to 2018 in a difficult
context. The Group estimates that the strike by French customs
officials in the spring and the strike action against the pension
reform in France in December had a negative impact on the Group's
revenue of approximately €18 million in 2019. Operating costs,
which include non-recurring costs related in particular to the
preparation of Brexit, amounted to €525 million, an increase of €13
million (3%) compared to 2018. EBITDA decreased by €12 million (2%)
to €560 million and the trading profit decreased by €20 million
€378 million. After accounting for an income of €38 million (£33
million) arising from the settlement agreement between the UK
Secretary of State for Transport and Eurotunnel (see note A.3 to
the consolidated financial statements in section 2.2.1 to the 2019
Universal Registration Document), the operating profit for 2019 was
up by €13 million compared to 2018, to €409 million. Net finance
costs decreased by €14 million compared to the previous year mainly
due to the favourable impact of lower British and French inflation
rates on the cost of the index-linked tranche of the debt. The
pre-tax profit for the Group’s continuing operations improved by
€25 million to €156 million for the 2019 financial year (including
€38 million for the settlement agreement referred to above).
After taking into account a tax income of €2 million, the net
result for the continuing activities of the Group was a profit of
€158 million, up €26 million. The Group’s net consolidated result
for 2019 was a profit €159 million, an improvement of €27
million.
€ million
2019
2018
Change
2018
Improvement/(deterioration) of result
restated*
€M
%
published
Exchange rate €/£
1.140
1.140
1.128
Eurotunnel
958
961
(3)
-0%
956
Getlink
1
2
(1)
-50%
2
Europorte
126
121
5
+4%
121
Revenue
1,085
1,084
1
+0%
1,079
Eurotunnel
(406)
(399)
(7)
-2%
(397)
Getlink
(17)
(16)
(1)
-6%
(16)
Europorte
(102)
(96)
(6)
-6%
(96)
ElecLink
–
(1)
1
+100%
(1)
Operating costs
(525)
(512)
(13)
-3%
(510)
Operating margin (EBITDA)
560
572
(12)
-2%
569
Depreciation
(182)
(174)
(8)
-5%
(174)
Trading profit
378
398
(20)
-5%
395
Other net operating income/(charges)
31
(2)
33
(2)
Operating profit (EBIT)
409
396
13
+3%
393
Net finance costs
(257)
(271)
14
+5%
(269)
Other net financial income/(charges)
4
6
(2)
5
Pre-tax profit from continuing
operations
156
131
25
+19%
129
Income tax income/(expense)
2
1
1
1
Net profit from continuing
operations
158
132
26
+20%
130
Net profit from discontinued
operations
1
–
1
–
Net consolidated profit for the
year
159
132
27
+20%
130
* Restated at the rate of exchange used
for the 2019 income statement (£1=€1.140).
The evolution of the pre-tax result from continuing operations
by segment compared to 2018 is presented below:
€ million
Eurotunnel
**Getlink
Europorte
ElecLink
Total Group
Pre-tax result from continuing
activities: 2018 restated *
133
-
1
(3)
131
Improvement/(deterioration) of result:
Revenue
-3
-1
+5
-
+1
Operating expenses
-7
-1
-6
+1
-13
EBITDA
-10
-2
-1
+1
-12
Depreciation
-6
-1
-
-1
-8
Trading result
-16
-3
-1
-
-20
Other net operating income/charges
+33
-
-
-
+33
Operating result (EBIT)
+17
-3
-1
-
+13
Net financial costs and other
-10
+29
+1
-8
+12
Total changes
+7
+26
-
-8
+25
Pre-tax result from continuing
operations for 2019
140
26
1
(11)
156
* Restated at the rate of exchange used for the 2019 income
statement (£1=€1.140).
** Included in the Getlink segment’s finance line is €27 million
of unrealised intra-Group exchange gains in 2019 compared to €2
million in 2018.
a) Eurotunnel segment
The Group’s core business is the Eurotunnel segment which
operates and directly markets its Shuttle Services and also
provides access, on payment of a toll, for the circulation of
High-Speed Passenger Trains (Eurostar) and the Train Operators’
Rail Freight Trains through its Railway Network.
€ million
Change
Improvement/(deterioration) of result
2019
* 2018
M€
%
Exchange rate €/£
1.140
1.140
Shuttle Services
630
640
(10)
-2 %
Railway Network
315
307
8
+3 %
Other revenue
13
14
(1)
-7 %
Revenue
958
961
(3)
-0 %
External operating costs
(218)
(219)
1
+0 %
Employee benefits expense
(188)
(180)
(8)
-4 %
Operating costs
(406)
(399)
(7)
-2 %
Operating margin (EBITDA)
552
562
(10)
-2 %
EBITDA/revenue
58 %
59 %
-1pt
* Restated at the rate of exchange used for the 2019 income
statement (£1=€1.140).
i) Eurotunnel revenue
Revenue generated by this segment, which in 2019 represented 88%
of the Group’s total revenue, is down by 0.3% compared to 2018, to
€958 million. Labour unrest in France in 2019 has had a significant
negative impact on Eurotunnel's business, with an estimated loss of
revenue of around €14 million, of which €10 million is explained by
the national work-to-rule movement by French customs officials
during the spring which impacted all Eurotunnel traffic (trucks,
cars and Eurostar), and €4 million in revenue from Eurostar arising
from the impact of national strikes in France from 5 December
2019.
Shuttle Services
Traffic (number of vehicles)
2019
2018
Change
Truck Shuttle
1,595,241
1,693,462
-6 %
Passenger Shuttle:
Cars *
2,601,791
2,660,414
-2 %
Coaches
50,268
51,300
-2 %
* Includes motorcycles, vehicles with trailers, caravans and
motor homes.
Despite the decline in cross-Channel markets due to the
uncertainty surrounding the Brexit date and the impact of this
decline on traffic volumes, Shuttle Services’ revenue of €630
million for 2019 was only down by 1.6% compared to the previous
year due to growth in yields which benefit from the strategy of
optimising the profitability of its Shuttle business.
Truck Shuttle
In a year marked by the uncertainties surrounding Brexit, the
French customs officials strike and the downturn in the automobile
market, the Short Straits truck market contracted by approximately
4.9% in 2019 and the Truck Shuttle service’s share of the Short
Straits market was slightly down, to 40.4%. The number of trucks
transported by Eurotunnel decreased by 6% to 1,595,241.
Passenger Shuttle
In spite of the Short Straits car market being impacted by the
uncertainties surrounding Brexit and in decline by 6.2% in 2019,
Eurotunnel’s car traffic was down by only 2% as a result of car
market share up by 2.3 points to 56.9% compared to the previous
year. The Passenger Shuttle’s car activity carried 2,601,791
vehicles.
The Short Straits coach market contracted by approximately 4.0%
in 2019 but the Passenger Shuttle’s coach market share increased
compared to the previous year, to 40.5%.
Railway Network
Traffic
2019
2018
Change
High-Speed Passenger Trains (Eurostar)
Passengers *
11,046,608
10,971,650
1 %
Train Operators' Rail Freight Services
**:
Number of tonnes
1,390,303
1,301,460
7 %
Number of trains
2,144
2,077
3 %
* Only passengers travelling through the
Channel Tunnel are included in this table, excluding those who
travel between continental stations (such as Brussels-Calais,
Brussels-Lille, Brussels-Amsterdam, etc.).
** Rail freight services by train
operators (DB Cargo for BRB, SNCF and its subsidiaries, GB
Railfreight, Rail Operations Group, RailAdventure and Europorte)
using the Tunnel.
The Group earned revenues of €315 million in 2019 from the use
of its Railway Network by Eurostar’s High-Speed Passenger Trains
and by the Train Operators’ Rail Freight Services, an increase of
3% compared to 2018.
The 11,046,608 Eurostar passengers using the Tunnel in 2019
represent an all-time record. The growth of 0.7% compared with 2018
is driven by the continued success of the London-Amsterdam service
launched in April 2018 with the addition of a third frequency in
June 2019, despite the significant impact on Eurostar Paris-London
traffic of the work-to-rule by French customs officials in March,
April and May and the strikes in France in December 2019.
After a first half of 2019 with a 10% increase in traffic,
cross-Channel rail freight was heavily impacted by strikes in
France in December, but nevertheless recorded a 3.2% increase in
the number of cross-Channel rail freight trains in 2019 compared
with the previous year.
ii) Eurotunnel operating costs
In 2019, the Eurotunnel segment’s operating charges increased by
2% (€7 million) compared with 2018 to €406 million.
The impact of inflation, both in France and the United Kingdom,
amounted to €5.5 million, of which €1 million related to the
increase in electricity tariffs over the period. This increase is
partly offset by the reduction in the capacity plan, made possible
by the relative stability of traffic and the improvement in load
factors, for an amount of €2 million.
Continued efforts have been made to improve the quality of
service provided to customers which represented additional
expenditure of €8 million, split between customer relations for €1
million, digital initiatives for €1.5 million and improvement of
service reliability for €5.5 million. The 2019 financial year was
also marked by the intensification of preparations for the United
Kingdom’s exit from the European Union as well as an increase in
personnel costs related to free share incentive plans.
The Group implemented a series of cost reduction and
productivity initiatives aimed at mitigating the financial impact
of external factors (Brexit, the French customs officials strike,
strike action against pension reforms in France) which amounted to
€10 million.
b) Getlink segment
The Getlink segment includes the activities of the Group’s
holding company, Getlink SE, as well as its direct subsidiaries
including the railway training centre CIFFCO.
For the 2019 financial year, the Getlink segment’s operating
charges amounted to €17 million.
c) Europorte segment
The Europorte segment covers the entire rail freight transport
logistics chain in France and includes notably Europorte France and
Socorail.
€ million
Change
Improvement/(deterioration) of result
2019
2018
€M
%
Revenue
126
121
5
+4 %
External operating costs
(51)
(48)
(3)
-6 %
Employee benefits expense
(51)
(48)
(3)
-6 %
Operating costs
(102)
(96)
(6)
-6 %
Operating margin (EBITDA)
24
25
(1)
-4 %
In 2019, Europorte’s revenues increased by 4% despite a
difficult end to the year with activity very strongly impacted by
the SNCF strike action which is estimated to have lost the business
an estimated €4 million in revenues. This increase is the result of
growth in cement and petrochemicals transportation activities and
the winning of new logistics contracts for industrial sites.
Impacted by the strike in December, EBITDA decreased by €1 million
compared to 2018.
d) ElecLink segment
ElecLink’s activity is the construction and operation of a 1GW
electricity interconnector between the UK and France. Construction
works began in the second half of 2016 and the interconnector is
expected to be in commercial operation mid-2021 or shortly
thereafter.
Costs directly attributable to the project are capitalised as
assets under construction. Investment on the project during 2019
amounted to €136 million.
e) Operating margin (EBITDA) and trading profit
EBITDA by business segment evolved as follows:
€ million
Eurotunnel
Getlink
Europorte
ElecLink
Total Group
EBITDA 2018 restated *
562
(14)
25
(1)
572
Improvement/(deterioration):
Revenue
(3)
(1)
5
–
1
Operating costs
(7)
(1)
(6)
1
(13)
Total changes
(10)
(2)
(1)
1
(12)
EBITDA 2019
552
(16)
24
–
560
* Restated at the rate of exchange used
for the 2019 income statement (£1=€1.140).
At €560 million in 2019, the Group’s operating margin decreased
by €12 million (-2%) compared to 2018, impacted by social movements
in 2019 as described above.
Depreciation charges increased by €8 million compared to 2018 to
€182 million as a result of the capital investment projects
completed in 2018 and 2019.
The trading profit in 2019 decreased by €20 million (5%)
compared to 2018, to €378 million.
f) Operating profit (EBIT)
At 31 December 2019, net other operating income included €38
million (£33 million) in respect of the settlement agreement
between the UK Secretary of State for Transport and Eurotunnel (see
note A.3 to the Group’s financial statements in section 2.2.1 of
the 2019 Universal Registration Document).
After taking into account this one-off income, the operating
profit for the 2019 financial year was up by €13 million (3%)
compared to 2018, to €409 million.
g) Net financial charges
At €257 million for 2019, net finance costs were down by €14
million compared to 2018 at a constant exchange rate. Lower
inflation rates in the UK and France had a favourable effect on the
cost of the indexed tranche of the debt (€20 million) and the
capitalisation of interest related to the financing of ElecLink
increased by €7 million. These reductions were partially offset by
the full-year impact of the increase in interest expense resulting
from the issuance of the Senior Secured Notes in October 2018 (€12
million).
h) Net result from continuing operations
The Group’s pre-tax result for continuing operations for the
2019 financial year was a profit of €156 million, an improvement of
€25 million compared to 2018 at a constant exchange rate.
In 2019, net income tax was a credit of €2 million (2018: credit
of €1 million).
The Group’s post-tax result for continuing operations for the
2019 financial year was a profit of €158 million, an improvement of
€26 million at a constant exchange rate, including the
non-recurring income of €38 million.
i) Net result from discontinued operations
Information on discontinued activities is set out in note C.2 to
the Group’s consolidated financial statements in section 2.2.1 of
the 2019 Universal Registration Document.
j) Net consolidated result
The net consolidated result for the Group for the 2019 financial
year was a profit of €159 million compared to a profit of €132
million (restated at an equivalent exchange rate) for 2018.
2 ANALYSIS OF CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
€ million
31 December 2019
31 December 2018
Exchange rate €/£
1.175
1.118
Fixed assets
6,734
6,657
Other non-current assets
613
569
Total non-current assets
7,347
7,226
Trade and related receivables
77
97
Other current assets
83
65
Cash and cash equivalents
525
607
Total current assets
685
769
Total assets
8,032
7,995
Total equity
1,639
2,006
Total financial liabilities
4,998
4,907
Interest rate derivatives
1,055
748
Other liabilities
340
334
Total equity and liabilities
8,032
7,995
The table above summarises the Group’s consolidated statement of
financial position as at 31 December 2019 and 31 December 2018. The
main elements and changes between the two dates, presented at the
exchange rate for each period, are as follows:
- At 31 December 2019, fixed assets include property, plant and
equipment and intangible assets amounting to €5,877 million for the
Eurotunnel segment, €747 million for the ElecLink segment and €101
million for the Europorte segment. The increase between 31 December
2018 and 31 December 2019 results mainly from investment in the
ElecLink project (€136 million in 2019).
- Other non-current assets at 31 December 2019 include the G2
inflation-linked notes held by the Group amounting to €348 million
and a deferred tax asset of €205 million.
- At 31 December 2019, cash and cash equivalents amounted to €525
million after payment of the €193 million dividend, net capital
expenditure of €246 million, €255 million in debt service costs
(net interest, repayments and fees).
- Equity decreased by €367 million as a result of the impact of
the dividend payment (€193 million), the recycling to the income
statement of the fair value and the change in the mark-to-market
valuation of the partially terminated hedging contracts (€264
million) and the impact of the evolution of the cumulative
translation reserve (€82 million). These decreases have been
partially offset by the impact of the net profit for the year (€159
million), changes in share-based payments (€11 million) and the
purchase of treasury shares (€6 million).
- Financial liabilities have increased by €91 million compared to
31 December 2018 as a result of the impact of the increase in the
exchange rate on the sterling-denominated debt (€114 million) and
the increase of €38 million arising from of the evolution of
inflation indexation and costs. These increases have been partially
offset by the effect of the €60 million of contractual debt
repayments and by the €4 million decrease in lease liabilities
under IFRS 16.
- Interest rate derivatives increased by €307 million as a result
of the impact of the decrease in long-term rates on the market
value of the hedging instruments that were partially terminated in
2017.
- Other liabilities include €242 million of trade and other
payables and provisions, as well as retirement liabilities of €98
million.
3 Analysis of consolidated cash flows
a) Consolidated cash flows
€ million
2019
2018
Exchange rate €/£
1.175
1.118
Continuing activities:
Net cash inflow from trading
589
588
Other operating cash flows and
taxation
8
(14)
Net cash inflow from operating
activities
597
574
Net cash outflow from investing
activities
(246)
(269)
Net cash outflow from financing
activities
(442)
(422)
Net cash inflow from financing
operations
–
115
Decrease in cash in year from
continuing activities
(91)
(2)
Discontinued activities *:
Increase/(decrease) in cash in year from
discontinued activities
1
(1)
Total decrease in cash in year
(90)
(3)
* Maritime segment, see note C.2 to the
consolidated accounts at 31 December 2019.
At €589 million in 2019, net cash generated from trading by
continuing operations improved by €1 million compared to 2018:
- a reduction of €2 million in the Eurotunnel and Getlink
segments to €561 million (2018: €563 million),
- an increase of €2 million in Europorte’s cash flows to €29
million (2018: €27 million), and
- ElecLink’s operating expenditure remained stable.
The positive variance of €22 million in “Other operating cash
and taxation” between the two years is principally due to a change
in tax payments (net receipts of €4 million in 2019 compared to net
payments of €10 million in 2018) and to the receipt of £11 million
(€13 million) in respect of the settlement agreement between the UK
Secretary of State for Transport and Eurotunnel (see note A.3 to
the consolidated financial statements at 31 December 2019).
At €246 million in 2019, net cash payments for investing
activities are down by €23 million compared to 2018. In 2019, these
comprised mainly:
- €104 million relating to Eurotunnel and Getlink (2018: €74
million). The main expenditure was €25 million on preparations for
Brexit (such as the Pit-Stops to regroup the different security
controls and inspections, the SIVEP zone for customs, veterinary
and phytosanitary controls and e-gates with facial recognition for
coach passengers), €26 million on rolling stock (including €15
million on the start of the mid-life maintenance work on the
Passenger Shuttles), €27 million on infrastructure (including €18
million on catenary and power supply) and €16 million on computing
and digital projects, and
- payments of €141 million in the ElecLink project (€194 million
in 2018).
Net financing payments in 2019 amounted to €442 million compared
to €422 million in 2018. During 2019, cash flow from financing
comprised:
- capital transactions with an outflow of €187 million consisting
of:
- €193 million paid in dividends (2018: €160
million), and - €3 million net receipts in respect of the liquidity
contract (€1 million paid in 2018) and receipts of €3 million in
respect of the exercise of stock options (€3 million in 2018);
- net debt service costs of €255 million:
- €189 million of interest paid on the Term
Loan and on other borrowings (€174 million in 2018), the increase
of €15 million being mainly due to interest paid on the Senior
Secured Notes issued by Getlink SE in October 2018 (€20 million in
2019 and €5 million in 2018), - €52 million paid in respect of the
scheduled repayment of the Term Loan and other borrowings (€63
million in 2018), - €5 million received in respect of the
contractual repayment of the G2 notes held by the Group (€7 million
in 2018), - €21 million paid in relation to leasing contracts (€19
million in 2018), - €7 million paid in relation to the operation to
simplify the debt completed in 2015 (€7 million in 2018), and - net
receipts of €10 million from interest received on investments and
on the G2 notes held by the Group (2018: €8 million in 2018).
b) Free Cash Flow
The Group’s Free Cash Flow represents the cash generated by its
current activities in the normal course of its business. It can be
used to distribute dividends to shareholders and to make strategic
investments in the Group’s development in order to add value for
all stakeholders. The Group defines it as net cash flow from its
current activities excluding extraordinary or exceptional cash
movements in respect of the equity-related cash flows, financial
transactions such as the raising of new debt to help finance new
activities, debt refinancing, renegotiation or early repayment as
well as investment in new activities or the divestment of
activities and related assets.
€ million
2019
2018
Exchange rate €/£
1.175
1.118
Net cash inflow from operating
activities
598
573
Net cash outflow from investing
activities
(105)
(75)
Net debt service costs (interest
paid/received, fees and repayments)
(255)
(249)
Other receipts
3
3
Free Cash Flow
241
252
Dividend paid
(193)
(160)
Purchase of treasury shares and net
movement on liquidity contract
3
(16)
ElecLink: project expenditure
(141)
(194)
Refinancing operations
–
115
Use of Free Cash Flow
(331)
(255)
Decrease in cash in the year
(90)
(3)
At €241 million in 2019, Free Cash Flow has decreased by €11
million compared to 2018 for the reasons out in section a)
above.
4 DEBT COVER RATIOS
a) Getlink ratios
EBITDA to finance cost ratio
The ratio of the Group’s consolidated EBITDA to its finance
costs (excluding interest received and indexation) is 2.4 at 31
December 2019 (2018 restated: 2.5).
€ million
2019
2018 * restated
Exchange rate €/£
1.140
1.140
EBITDA
560
572
Finance cost
259
273
Indexation
(26)
(46)
Finance cost excluding
indexation
233
227
EBITDA / finance cost excluding
indexation
2.4
2.5
* Restated at the rate of exchange used
for the 2019 income statement (£1=€1.140).
Net debt to EBITDA ratio
The Group defines its net debt to EBITDA ratio as the ratio
between financial liabilities less the indexed nominal value of the
G2 notes held by the Group and cash and cash equivalents, and
consolidated EBITDA. At 31 December 2019, the ratio was 7.6
compared to 7.2 at 31 December 2018.
€ million
31 December 2019
31 December 2018
Non-current financial liabilities
4,853
4,759
Current financial liabilities
61
55
Other non-current liabilities
50
57
Other current liabilities
34
36
Total financial liabilities
4,998
4,907
Inflation-indexed notes (G2)
(232)
(222)
Cash and cash equivalents
(525)
(607)
Net debt
4,241
4,078
EBITDA
560
569
Net debt / EBITDA
7.6
7.2
Statement of financial position exchange
rate €/£
1.175
1.118
Income statement exchange rate €/£
1.140
1.128
b) Eurotunnel ratios
Financial covenants in respect of the Term Loan
The debt service cover ratio and the synthetic service cover
ratio on the Term Loan apply to the Eurotunnel Holding SAS
sub-group. These ratios are described in note G.1.2.b) to the
consolidated financial statements contained in section 2.2.1 of the
2019 Universal Registration Document.
At 31 December 2019, Eurotunnel has respected its financial
covenants under the Term Loan with a debt service cover ratio and a
synthetic service cover ratio of approximately 2.
1 All comparisons with the 2018 income statement are based on
the average exchange rate for 2019 of £1 = € 1.14. 2 Of which €38
million (£33 million) in respect of the settlement agreement
between the UK Secretary of State for Transport and Eurotunnel. 3
At the rate of £1 = €1.14 and current scope. 4 The Group has
applied IFRS 5 “Non-current Assets Held for Sale and Discontinued
Operations” to its maritime segment since the cessation of
MyFerryLink’s operations in the second half of 2015. Accordingly,
the net results of these activities for the current and previous
financial years are presented as a single line in the income
statement called “Net profit from discontinued operations”. More
information on these transactions is given in note C.2 to the
consolidated financial statements in section 2.2.1 to the 2019
Universal Registration Document.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200226006095/en/
Getlink Contacts: For UK
media enquiries contact John Keefe on + 44 (0) 1303
284491 Email: press@getlinkgroup.com
For other media enquiries contact Anne-Laure Desclèves on
+33(0)1 4098 0467 For investor enquiries contact:
Jean-Baptiste Roussille on +33 (0)1 40 98 04 81 Email: jean-baptiste.roussille@getlinkgroup.com
Michael Schuller on +44 (0) 1303 288749 Email: Michael.schuller@getlinkgroup.com
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