The tax charge amounted to 98 million euro compared to a pre-tax loss of 230 million euro. The Group has not recognized deferred tax assets for Fiscal 2020 of about 122 million euro, mainly related to tax losses in France where the Group restricted the recognition of deferred tax assets to the amount of the deferred tax liabilities. Excluding this, the underlying effective tax rate would have been 30.8% against 29.0% in the previous year.
The share of profit of other companies consolidated by the equity method was 5 million euro. Profit attributed to non-controlling interests was -4 million euro compared to the previous year amount of 21 million euro.
As a result, Group net loss was 315 million euro, compared to a net profi t of 665 million euro in Fiscal 2019. Excluding Other Operating income and expenses, the make-whole in financial expenses and the exceptional tax write-offs, Underlying net profit amounted to 306 million euro, compared to 765 million euro in Fiscal 2019.
Published EPS was -2.16 euro, against 4.56 euro in Fiscal 2019. The weighted average number of shares for Fiscal 2020 was more or less stable at 145,778,963 compared to 145,721,534 shares for Fiscal 2019.
Underlying EPS amounted to 2.10 euro, down -60.1% compared to the previous year.
To protect the balance sheet given the severity of the Covid-19 downturn in activity, and the uncertainty as to the timing of recovery, and in solidarity with the teams, the Board has decided not to propose a dividend for Fiscal 2020 even if the Underlying net prot was positive.
Cash flows for the period were as follows:
| (in million of euro) | H1 | H2 | FISCAL 2020
|
FISCAL 2019
|
|---|---|---|---|---|
| Operating cash flow
|
Operating cash flow H1 791 |
Operating cash flow H2 (122) |
Operating cash flow FISCAL 2020 670 |
Operating cash flow FISCAL 2019 1 139 |
| Change in working capital excluding change in BRS financial assets*
|
Change in working capital excluding change in BRS financial assets* H1 (647) |
Change in working capital excluding change in BRS financial assets* H2 702 |
Change in working capital excluding change in BRS financial assets* FISCAL 2020 55 |
Change in working capital excluding change in BRS financial assets* FISCAL 2019 182 |
| IFRS 16 outflow
|
IFRS 16 outflow H1 (120) |
IFRS 16 outflow H2 (140) |
IFRS 16 outflow FISCAL 2020 (260) |
IFRS 16 outflow FISCAL 2019 - |
| Net capital expenditure
|
Net capital expenditure H1 (268) |
Net capital expenditure H2 (125) |
Net capital expenditure FISCAL 2020 (393) |
Net capital expenditure FISCAL 2019 (415) |
| Free cash flow
|
Free cash flow
H1 (243) |
Free cash flow
H2 315 |
Free cash flow
FISCAL 2020 72 |
Free cash flow
FISCAL 2019 907 |
| Net acquisitions
|
Net acquisitions H1 (13) |
Net acquisitions H2 (5) |
Net acquisitions FISCAL 2020 (18) |
Net acquisitions FISCAL 2019 (301) |
| Share buy-backs
|
Share buy-backs H1 (39) |
Share buy-backs H2 - |
Share buy-backs FISCAL 2020 (39) |
Share buy-backs FISCAL 2019 (7) |
| Dividends paid to shareholders
|
Dividends paid to shareholders H1 (425) |
Dividends paid to shareholders H2 - |
Dividends paid to shareholders FISCAL 2020 (425) |
Dividends paid to shareholders FISCAL 2019 (403) |
| Other changes (including scope and exchange rates)
|
Other changes (including scope and exchange rates) H1 (140) |
Other changes (including scope and exchange rates) H2 (105) |
Other changes (including scope and exchange rates) FISCAL 2020 (245) |
Other changes (including scope and exchange rates) FISCAL 2019 (150) |
| (Increase)/decrease in net debt
|
(Increase)/decrease in net debt
H1 (860) |
(Increase)/decrease in net debt
H2 205 |
(Increase)/decrease in net debt
FISCAL 2020 (655) |
(Increase)/decrease in net debt
FISCAL 2019 47 |
* Excluding change in financial assets related to the Benefits & Rewards Services activity of 55 million euro in Fiscal 2020 versus (53) million euro in Fiscal 2019.Total change in working capital as reported in consolidated accounts: in Fiscal 2020: (373) million euro = (428) million euro + 55 million euro and in Fiscal 2019: 129 million euro = 182 million euro - 53 million euro.
Operating cash flow was down significantly year on year, at 670 million euro compared to 1,139 million euro, reflecting the second half operating losses. The IFRS 16 adjustment of 260 million euro, which comes out below, has no net effect on free cash fl ow. The positive infl ow from working capital in the second half more than offset the outflow in the first half of 647 million euro. This was due to strict cashflow management, with a rapid return to positive cash generation from April, aft er the significant outfl ow in March due to the brutal reduction in cash sales, linked to Covid-19 lockdown, and government aid in the form of delayed payment terms.
As the crisis started, net capital expenditure, including client investments, was pushed back resulting in a 50% reduction in the second half, compared to the first half. As a result, capex was down from 415 million euro to 393 million euro, representing 2% of revenues compared to 1.9% in Fiscal 2019.
