Half-year results 2024: Robust half-year results, annual EBITDA guidance confirmed

PRESS RELEASE                     

Half-year 2024 results: 

Robust half-year results, annual EBITDAguidance confirmed 

➢  Group:

•       Revenue: €808 million (-14%^[1] due to the normalisation of ElecLink's contribution)

•       EBITDA^[2]: €424 million (-15%) after a provision of €55 million relating to the future sharing of ElecLink’s profits

•       Net profit: €173 million, an improvement of +7% 

•       Cash position^[3]: €1,497 million at 30 June 2024 (an improvement of €203 million vs. 30 June 2023)

•       Target EBITDA for 2024 between €780 and €830 million confirmed

➢  Eurotunnel:

•       Revenue of €540 million (+1%)

•       EBITDA at €291 million (+4%)

➢  ElecLink:

•       Revenue of €185 million (vs. €330 million in H1 2023)

•       EBITDA at €117 million (vs. €207 million in H1 2023), after a provision of €55 million for future sharing of the interconnector’s profits 

➢  Europorte:

•       Revenue of €83 million (+14%)

•       EBITDA at €16 million (+23%)

Yann Leriche, Getlink's Chief Executive Officer, commented: "The half-year performance reflects the normalisation of the energy markets and consequently ElecLink's contribution to the Group's results. Thanks to the continuation of its operational and commercial excellence programmes as well as the good momentum of passenger traffic, Getlink reports solid results, enabling us to confirm our targets for 2024.”

Half-Year Highlights 

➢ Governance

•       Yann Leriche's term of office as Chief Executive Officer expired on 30 June 2024; the term was renewed for four years by the Board of Directors. 

•       Géraldine Périchon, the Group's Chief Financial Officer since September 2020 and a member of the Executive Committee, has been appointed Deputy CEO.

•       The Annual General Meeting held on 7 May 2024 approved the amendment to Article 19 of the Articles of Association relating to the age limit for the Chairman, who has reached the age of 70, to maintain the Chairman in office until the end of his term of office as Director, i.e. until the 2026 Annual General Meeting, approving the financial statements for the year ending 31 December 2025.

•       The Annual General Meeting also approved the renewal of the terms of office as Directors of Sharon Flood and Jean-Marc Janaillac for a period of four years. The meeting approved the ratification of the co-option of Jean Mouton as Director. 

➢ CSR strategy

•       Focusing actions to achieve decarbonisation milestones by 2024-2025 in line with the Paris Agreement's 1.5°C trajectory. 

•       Third edition of the Rencontres du Climat held at the Ministry of Ecological Transition and Territorial Cohesion, in the presence of the French Minister.

➢ Group

•       EBITDA at €424 million post-provision for ElecLink profit-sharing of €55 million.

•       Free cash flow of €274 million^[4].

•       Distribution of €298 million in dividends (€0.55 per share) for 2023 financial year.

•       Acquisition of ChannelPorts, a leader in the UK customs services market, strengthening the Group's portfolio of smart border solutions.

•       Getlink's credit rating upgraded to BB by S&P Global Ratings (previously BB-).

➢ Eurotunnel

•       LeShuttle o   Decrease in traffic by 4%, with 967,962 passenger vehicles transported, impacted by intensifying competition from ferry companies, some of which are deviating from the social models applicable in the United Kingdom and France.

o    Confirmation of leadership position on the car market with a 59% market share.

o    Continuation of the commercial excellence strategy with the launch of new initiatives to improve customer experience: new duty-free partner in France, new booking website, new partnerships signed.

•       LeShuttle Freight o     Truck traffic down 4%, penalised by a weak economic environment in the United Kingdom and continuing fierce competition from ferry operators.  o      36% market share.

•       Railway network o     Eurostar traffic up 6%, with almost 5.4 million passengers, exceeding the record level of H1 2019. 

➢ Europorte 

•       Revenue growth of 14% due to acquisitions completed in 2023 and the signing of new contracts. 

•       Improved profitability with EBITDA up 23%.

➢ ElecLink

•       Revenue of €185 million, down 44%, impacted by the expected normalisation of electricity markets. 

•       EBITDA at €117 million, down 43%, after taking into account a profit-sharing provision of €55 million.

•       Outstanding operational performance, with more than 3.5 TWh transported in the first half of the year and an availability rate of 100%.

•       €139 million of revenue already contracted for H2^[5], with 29% of cable capacity still available for H2. 

Operating profit impacted - as expected - by the normalisation of the electricity markets 

The Group's consolidated revenue for the first half of 2024 is €808 million, down 14% compared to the first half of 2023, reflecting the expected normalisation of the electricity markets. Eurotunnel (+1%) and Europorte (+14%) reported solid revenue growth.

The Group's operating costs excluding the provision for ElecLink profit sharing were stable in H1, at €329 million. Eurotunnel segment operating costs were down 3% to €249 million thanks to lower energy costs and ongoing efficiency programmes.

Consolidated EBITDA for the first half amounted to €424 million, down 15% due to the lower contribution from ElecLink (-43%), whilst EBITDA for Eurotunnel and Europorte increased by 4% and 23% respectively.

Net finance costs fell by 24% to €144 million for the first six months of 2024. 

Taxes represented net income of €15 million (vs. an expense of €28 million in the first half of 2023), reflecting the lower pre-tax income of ElecLink and the impact of the activation of tax loss carryforwards on deferred taxes.

The Group's consolidated net profit for the first half of 2024 reaches €173 million, up 7% compared to the first six months of 2023.

Operating cash flow was €457 million in the first half of 2024, compared with €539 million in the first half of 2023.

The Group's free cash flow was €274 million in the first half of 2024, down €81 million for the same period in 2023, due to the lower contribution from ElecLink.

Cash position at 30 June 2024 was €1,497 million (compared with €1,294 million at 30 June 2023).

GUIDANCE

The performance of the first half of 2024 enables the Group to confirm its EBITDA target in 2024 to be between €780 million and €830 million^[6].

This target takes into account:

•       The revenue already secured for ElecLink (at 30 June, 85% of the cable's 2024 capacity has been sold for a revenue of €324 million subject to actual delivery of the service), recent electricity market prices and using a similar method to that used for 2023 with regard to the provision for profit sharing.

•       The implementation of EES formalities, during the 4^th quarter, on Eurotunnel’s sites, which has been the subject of intense preparation to turn it into a competitive advantage. 

In the second half of 2024, against a backdrop of very intense competition in cross-Channel transport, Getlink will pursue its strategy of operational excellence and strengthening its agility in order to optimise the attractiveness of its services and its value creation.

GROUP REVENUE

First half-year (January-June)

*            Average exchange rate for the first half of 2024: £1=€1.172.

**          Restated using the average exchange rate for the first half of 2024.

Second quarter (April-June)

First-quarter reminder (January-March)

*            Average exchange rate for the first quarter of 2024: £1 = €1.169.

**    Restated at the average exchange rate for the first quarter of 2024.               

EUROTUNNEL TRAFFIC

First half-year (January-June)

Second quarter (April-June)

First-quarter reminder (January-March)

*   Including motorbikes, vehicles with trailers, caravans, motorhomes and coaches.

**  Only passengers travelling through the Channel Tunnel are included in this table, which excludes journeys between continental stations (Brussels-Calais, Brussels-Lille, Brussels-Paris, etc..).

***  Trains operated by railway companies (DB Cargo on behalf of BRB, SNCF and its subsidiaries, and GB Railfreight) using the Tunnel.

***************************

The financial statements of the period ending 30 June 2024 were established by the Board of Directors on 24 July 2024 and were subject to a review by the statutory auditors.

The H1 2024 results presentation is available at https://www.getlinkgroup.com.

Q3 2024 revenues will be announced on 17 October 2024.

Disclaimer: All forward-looking statements in this presentation are Getlink SE management’s present expectations of future events and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. For a detailed description of these factors and uncertainties, please refer to the section “Risk Factors” in our Universal Registration Document and documents filed by the Group with the French securities regulator (AMF) (available on the Group’s website https://www.getlinkgroup.com). Getlink SE undertakes no obligation to publicly update or revise any of these forward-looking statements.

About Getlink

Getlink SE (Euronext Paris: GET), through its subsidiary Eurotunnel, is the concession holder until 2086 for the Channel Tunnel infrastructure and operates Truck Shuttles and Passenger Shuttles (cars and coaches) between Folkestone (UK) and Calais (France). Since 31 December 2020 Eurotunnel has been developing the smart border to ensure that the Tunnel remains the fastest, most reliable, easiest and most environmentally friendly way to cross the Channel. Since it opened in 1994, close to 500 million people and more than 102 million vehicles have travelled through the Channel Tunnel. This unique land link, which carries a quarter of trade between the Continent and the United Kingdom, has become a vital link, reinforced by the ElecLink electricity interconnector installed in the Tunnel, which helps to balance energy needs between France and the United Kingdom. Getlink completes its sustainable mobility services with its rail freight subsidiary Europorte. Committed to "low-carbon" services that control their impact on the environment (through its activities, the Group avoids the equivalent of 1.9 million tonnes of CO₂ per year), Getlink has made the place of people, nature and territories a central concern.

https://www.getlinkgroup.com

Press contacts:                                                                                           Analyst and investor contacts:

Anne-Sophie de Faucigny: +33 (0)6.46.01.52.86                                       Virginie Rousseau: +33 (0)6.77.41.03.39

Laurence Bault: +33 (0)6.83.61.89.96

HALF-YEAR ACTIVITY REPORT AT 30 JUNE 2024........................................................................................................................... 1

Context of the preparation of the half-year financial report............................................................................................................... 1

Analysis of consolidated income statement.......................................................................................................................................... 1

Analysis of consolidated statement of financial position.................................................................................................................... 6

Analysis of consolidated cash flows........................................................................................................................................................ 7

Other financial indicators......................................................................................................................................................................... 8

Covenant relating to the Group’s debt.................................................................................................................................................. 8

Outlook....................................................................................................................................................................................................... 9

Risks........................................................................................................................................................................................................... 10

Related parties......................................................................................................................................................................................... 10

SUMMARY HALF-YEAR CONSOLIDATED FINANCIAL STATEMENTS....................................................................................... 11

Consolidated income statement........................................................................................................................................................... 11

Consolidated statement of other comprehensive income................................................................................................................ 11

Consolidated statement of financial position...................................................................................................................................... 12

Consolidated statement of changes in equity..................................................................................................................................... 13

Consolidated statement of cash flows................................................................................................................................................. 14

Notes to the financial statements......................................................................................................................................................... 15

A.  Important events............................................................................................................................................................................................................................................................... 15

B.  Principles of preparation, main accounting policies and methods................................................................................................................................................ 15

C.  Scope of consolidation................................................................................................................................................................................................................................................. 16

D.  Operating data................................................................................................................................................................................................................................................................... 17

E.  Personnel expenses and benefits........................................................................................................................................................................................................................... 19

F.  Intangible and tangible property, plant and equipment....................................................................................................................................................................... 20

G.  Financing and financial instruments.................................................................................................................................................................................................................... 21

H.  Share capital and earnings per share................................................................................................................................................................................................................. 23

I.  Income tax expense.......................................................................................................................................................................................................................................................... 25

J.  Events after the reporting period............................................................................................................................................................................................................................ 25

STATUTORY AUDITORS’ REVIEW REPORT ON THE  2024 HALF-YEAR FINANCIAL INFORMATION............................... 26

DECLARATION BY THE PERSON RESPONSIBLE FOR THE HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2024............ 27

*  English translation of Getlink SE’s “rapport financier semestriel” for information purposes only.

HALF-YEAR ACTIVITY REPORT AT 30 JUNE 2024

CONTEXT OF THE PREPARATION OF THE HALF-YEAR FINANCIAL REPORT 

The Group's results for the first half of 2024 are marked by the expected normalisation of the energy market and of ElecLink's contribution (compared with the first half of 2023 which benefited from particularly exceptional electricity market conditions), as well as by increased competition from some ferry companies derogating from the social models in force in Great Britain and France on the cross-Channel market.

During the first half of 2024, the Group has continued to prepare for its future through its operational and commercial excellence programmes and capital expenditure programmes, while continuing its strategy of prudent cash management. The Group has maintained its high level of liquidity, with net cash and cash management financial assets at 30 June 2024 of €1,497 million after a dividend distribution of €298 million.

Further details on the recent evolution of the Group's results are given in the following sections.

ANALYSIS OF CONSOLIDATED INCOME STATEMENT

To enable a better comparison between the two periods, the consolidated income statement for the first half of 2023 presented in this half-year activity report has been recalculated at the exchange rate used for the 2024 half-year income statement of £1=€1.172. 

At €808 million for the first half of 2024, the Group's consolidated revenue decreased by €132 million (-14%) compared to the first half of 2023 due in particular to the impact of the normalisation of the energy market on ElecLink’s revenue. Operating costs, which totalled €384 million in the period, decreased by €56 million (13%) compared to 2023, mainly due to the reduction between the two periods in the charge for the provision for sharing of the profit of the ElecLink interconnector. Therefore, current EBITDA for the ElecLink segment was down by €90 million. The Group’s current EBITDA was down by €76 million to €424 million. At €302 million, the operating profit for the first six months of 2024 was down by €76 million compared to 2023. After taking into account a reduction in net finance costs of €46 million (including other financial income and charges) (see note 6 below), the Group’s pre-tax result for the first half of 2024 was a profit of €158 million, a deterioration of €30 million compared to the first half of 2023.

After taking into account a net tax income of €15 million, the Group’s consolidated net result for the first six months of 2024 was a profit of €173 million compared to a profit of €161 million (restated) in the first half of 2023, an increase of €12 million.

* Restated at the rate of exchange used for the 2024 half-year income statement (£1=€1.172).

** Trading profit before depreciation charges.

1        EUROTUNNEL SEGMENT

This segment includes the activities of the Eurotunnel sub-group companies, as well as those of the Group’s holding company, Getlink SE and its other direct subsidiaries excluding Europorte and ElecLink. Eurotunnel, which represents the Group’s core business, operates and directly markets its Shuttle Services and also provides access, on payment of a toll, for the circulation of the Railway Companies’ High-Speed Passenger Trains (Eurostar) and Rail Freight Services through its Railway Network.

*      Restated at the rate of exchange used for the 2024 half-year income statement (£1=€1.172).

Eurotunnel revenue by activity (€m)                                                   Eurotunnel current EBITDA (€m)

2023*              2024  2023*        2024

      Shuttle Services        Railway Network         Other revenue                                                Current EBITDA

*      Restated at the rate of exchange used for the 2024 half-year income statement (£1=€1.172).

The Eurotunnel segment’s current EBITDA for the first half of 2024 was €291 million, up 4% compared to the first half of 2023.

1.1       EUROTUNNEL SEGMENT REVENUE

Revenue generated by this segment, which in the first six months of 2024 represented 67% of the Group’s total revenue (57% in the first six months of 2023), amounted to €540 million, up 1% compared to 2023.

1.1.1 Shuttle Services

* Includes motorcycles, vehicles with trailers, caravans and motor homes.

At €328 million for the first half of 2024, Shuttle Services revenue fell by 4% compared to 2023 reflecting an increased competition from ferry companies in the Short Straits market.

Truck Shuttle

Compared with the same period in 2023, the Short Straits market for trucks is stable in the first half of 2024. With 601,710 trucks carried, Eurotunnel's traffic was down 4% compared to the first half of 2023 due to strong competition in the market. In a market that is currently in overcapacity, Eurotunnel's Truck Shuttle service continues to be market leader with a market share of 35.7% for the first half of 2024 (37.0% in the first half of 2023). 

Passenger Shuttle

The Short Straits market in the first half of 2024 grew by 5% compared to the first half of 2023 and Eurotunnel's car traffic decreased by 4% due to strong competition in the market. Eurotunnel's car traffic market share is down 5 points year-onyear to 59.3%. 

In a market that grew by 2% compared to the first half of 2023, Eurotunnel's coach traffic decreased by 33%. The Passenger Shuttle service’s coach market share for the first half of 2024 was 17.1% (25.9% in the first half of 2023). 

1.1.2 Railway Network

* Only passengers travelling through the Channel Tunnel are included in this table, excluding those who travel between continental stations (such as BrusselsCalais, Brussels-Lille, Brussels-Paris, etc.).

** Rail freight services by train operators (DB Cargo for BRB, SNCF and its subsidiaries, and GB Railfreight) using the Tunnel.

In the first half of 2024, revenues of €193 million were generated from the use of the Tunnel’s Railway Network by Eurostar’s high-speed passenger trains and by the cross-Channel rail freight trains, up 7% compared to 2023 driven by continued growth. 

In the first half of 2024, 5,378,082 Eurostar passengers used the Tunnel, 6% above the same period in 2023 and a new record for a first half of the year.

Cross-Channel rail freight traffic was down 9% in the first half of 2024 compared to the first half of 2023.

1.2       EUROTUNNEL SEGMENT OPERATING COSTS

At €249 million in the first half of 2024, operating expenses were down 3% compared to 2023. This decrease of €8 million was mainly due to the reduction in energy costs as well as to actions to improve productivity.

2        EUROPORTE SEGMENT

The Europorte segment, which covers the entire rail freight transport logistics chain in France as well as cross-border flows to Belgium and Germany, includes most notably Europorte France and Socorail.

In the first half of 2024, Europorte recorded an increase of €10 million in revenue and an increase of €3 million in current EBITDA, driven by continued growth in traction activities (particularly in the chemicals and cereals sectors) and infrastructure activities, with the start-up of new contracts. 

3        ELECLINK SEGMENT

ElecLink’s revenues come mainly from sales of interconnector capacity. The decrease in ElecLink's revenue in the first half of 2024 reflects the expected normalisation of the energy market.

ElecLink generated revenues of €185 million and a current EBITDA of €117 million during the first half of 2024. 

During the first half of 2024, ElecLink’s operating costs amounted €68 million, including €55 million in respect of the estimated amount of restitution of interconnector sharing of profits achieved during the period with the French and UK national electricity grid operators in accordance with the exemption granted to ElecLink in 2014 (see note D.5 to the summary consolidated half-year financial statements at 30 June 2024).

4        CURRENT EBITDA

Current EBITDA by business segment evolved as follows:

* Restated at the rate of exchange used for the 2024 half-year income statement (£1=€1.172).

The normalisation of the energy market has had a substantial impact on the Group's current EBITDA, which reduced by 15% compared to 2023, to €424 million for the first half of 2024. Eurotunnel’s and Europorte’s current EBITDA were up by €11 million and €3 million respectively.

5        TRADING PROFIT AND OPERATING PROFIT (EBIT)

Depreciation charges decreased by €1 million compared to the first half of 2023 to €121 million, of which €93 million is in the Eurotunnel segment, €17 million is in the ElecLink segment and €11 million is in the Europorte segment. Depreciation of assets in the ElecLink segment includes the impact of extending the depreciation periods of certain assets whose useful lives are revised from 2024 (see note F to the summary half-year consolidated financial statements at 30 June 2024).

Trading profit in the first half of 2024 was €303 million, down by €75 million compared to 2023.

Operating profit for the first six months of 2024 was down by €76 million compared to 2023, to €302 million. 

6         NET FINANCIAL CHARGES

At €126 million for the first half of 2024, net finance costs decreased by €64 million compared to 2023 at a constant exchange rate due to lower inflation rate in the UK and France that reduced charges on the index-linked tranches of the debt by €46 million and an increase of €18 million in the interest received on its cash investments during the period. 

Other net financial income/charges in the first half of 2024 include interest income on the G2 bonds held by the Group of €8 million (2023: €12 million) and net foreign exchange losses of €5 million (2023: losses of €11 million). In the first half of 2024, other net financial charges included a charge of €19 million for the unwinding of the ElecLink profit sharing provision in accordance with IAS 37.

7        NET CONSOLIDATED RESULT

The Group’s pre-tax result for the first six months of 2024 was a profit of €158 million, a deterioration of €30 million compared to 2023 at a constant exchange rate. The evolution of the pre-tax result by segment compared to the first half of 2023 is presented below:

                                                                                                                                                               +3                    -90                    -76

-                        +5     +1

                                                                                                                                                               +3                    -85                    -75

-                        -        -1

                                                                                                                                                               +3                    -85                    -76

                                                                                                                                                                  -                        -                   +46

    Total changes                                                                                                         +52                     +3                    -85                    -30

* Restated at the rate of exchange used for the 2024 half-year income statement (£1=€1.172).

After taking into account a net tax income of €15 million reflecting the evolution of ElecLink and Eurotunnel activities, the Group’s net consolidated result for the first half of the 2024 financial year was a profit of €173 million compared to a profit of €161 million at an equivalent exchange rate for the first half of 2023, an increase of €12 million.

ANALYSIS OF CONSOLIDATED STATEMENT OF FINANCIAL POSITION

* Cash management financial assets, recognised in the balance sheet as current financial assets, are included in this analysis with “Cash and cash equivalents”.

The table above summarises the Group’s Statement of financial position at 30 June 2024 consolidated statement of financial position as at 30 June 2024 and 31 December 2023. The main elements and changes between the two dates, presented at the exchange rate for each period, are as follows:

▪  At 30 June 2024, Fixed assets include property, plant and equipment, right-of-use assets and intangible assets amounting to €5,627 million for the Eurotunnel segment, €888 million for the ElecLink segment and €132 million for the Europorte segment. 

▪  Other non-current assets at 30 June 2024 include the G2 inflation-linked notes held by the Group amounting to €360 million and a deferred tax asset of €197 million.

▪  At 30 June 2024, Cash, cash equivalents and cash management financial assets amounted to €1,497 million after a dividend payment of €298 million, €116 million in debt service costs (net interest, repayments and fees) and net capital expenditure of €66 million.

▪  Equity decreased by €84 million as a result of the impact of payment of €298 million in dividends relating to the 2023 financial year and the impact of the change in the exchange rate on the translation adjustment (€38 million). These reductions were partially offset by the impact of the net result for the period (profit of €173 million) and the change in the fair value of the hedging instruments of €78 million. 

▪  Financial liabilities increased by €48 million compared to 31 December 2023 due to the impact of the change in exchange rate on the sterling-denominated debt (€66 million) and an increase of €31 million arising from the effect of inflation on the index-linked debt tranches of the Term Loan. These increases have been partially offset by contractual debt repayments of €40 million and a decrease in lease liabilities for an amount of €9 million.

▪  The liability in respect of the fair value of the interest rate derivatives decreased by €60 million mainly due to the impact of higher long term rates on the market value of the hedging instruments.

▪  Other liabilities include €857 million of trade and other payables, provisions, deferred income, retirement and other liabilities.

ANALYSIS OF CONSOLIDATED CASH FLOWS

Consolidated cash flows

At €463 million, net cash generated from trading in the first half of 2024 decreased by €108 million compared to the first half of 2023. This change is explained mainly by the impact of the normalisation of the energy market on ElecLink's contribution:

▪  net cash flow from Eurotunnel’s activities which decreased by €10 million to €292 million (first half 2023: €302 million);

▪  net cash flow from Europorte’s activities which increased by €1 million to €10 million (first half 2023: €9 million); and

▪  net cash flow ElecLink’s activities which decreased by €99 million to €161 million (first half 2023: €260 million) reflecting the normalisation of the energy market.

Other net operating and taxation cash outflows of €6 million in the first half of 2024 are mainly related to net tax payments of €7 million.

In the first half of 2024, net cash flows from investing activities of €66 million comprised mainly:

▪  net payments of €61 million relating to the Eurotunnel segment (2023: €50 million); the main expenditure during the period comprised €22 million on rolling stock and €15 million on infrastructure projects;

▪  Europorte’s capital expenditure of €2 million (2023: €2 million); 

▪  payments of €4 million relating to ElecLink (2023: €0 million); and

▪  payments of €49 million relating to acquisitions (see notes A and C to the summary half-year consolidated financial statements at 30 June 2024) and a decrease of €50 million in cash investments with maturities of more than three months recognised in other financial assets.

Net financing payments in the first half of 2024 amounted to €416 million compared to €402 million in the first half of 2023. In 2024, cash flow from financing mainly comprised:

▪  dividend payment of €298 million paid in respect of the 2023 financial year (2023: €271 million);

▪  €116 million of net debt service costs including:

-        €104 million paid in interest on the Term Loan and on other borrowings (2023: €104 million);

-        €40 million paid in respect of the scheduled repayments on the Term Loan and other borrowings (2023: €37 million);

-        €4 million received from the scheduled repayment of the G2 notes held by the Group and €4 million received in interest thereon (2023: €4 million and €4 million respectively);

-        €9 million paid in relation to leasing contracts (2023: €10 million) presented in cash flows related to financing activities in accordance with IFRS 16; 

-        €33 million received in interest on cash and cash equivalents (2023: €14 million) and

-        €3 million paid relating to financial operations concluded in previous years (2023 : €3 million).

OTHER FINANCIAL INDICATORS

Free Cash Flow

The Group’s Free Cash Flow represents the cash generated by current activities in the normal course of business. It can be used to distribute dividends to shareholders and to make strategic investments in the Group’s development. The Group defines its Free Cash Flow 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, and excluding changes in the amount of cash management financial assets.

* See notes A and C to the summary half-year consolidated financial statements at 30 June 2024.

At €274 million in the first half of 2024, Free Cash Flow has decreased by €81 million compared to the same period in 2023 for the reasons set out in the previous sections.

Current EBITDA to finance cost ratio

The ratio of the Group’s consolidated current EBITDA to its finance costs (excluding interest received and indexation) as defined in section 2.1.4.b of the 2023 Universal Registration Document was 3.16 at 30 June 2024 (30 June 2023 restated:

3.71).

Net debt to current EBITDA ratio

The Group defines its net debt to current EBITDA ratio as the ratio between financial liabilities less the indexed nominal value of the G2 notes held by the Group and cash, cash equivalents and cash management financial assets, and consolidated current EBITDA (section 2.1.4.c of the 2023 Universal Registration Document). The Group does not consider it appropriate to publish this ratio when calculated based on the activity of a six-month period. At 31 December 2023, the ratio was 3.7.

COVENANT RELATING TO THE GROUP’S DEBT

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 2023 Universal Registration Document.

For the 12 months to 30 June 2024, Eurotunnel has respected its financial covenants under the Term Loan. 

OUTLOOK

As indicated in this half-year activity report, the Group’s results and financial position in the first half of 2024, are lower than in 2023, due to the expected normalisation of the electricity market on the ElecLink segment and the decline in Shuttle traffic, offset by the dynamism of the Rail Network business.

The Group's balanced business model enables it to limit the impact of the deterioration in the geopolitical environment and the economic situation in Europe and the United Kingdom on the Group's activities, and in particular on those of Eurotunnel. Moreover, the initiatives taken by the Group in terms of cost management and operational productivity, as well as its strategy focused on the customer, on quality of service and on strengthening its position as the green leader in European transport, are creating value and laying the foundations for the transformation of the business in the years to come. 

During the first half of 2024, Eurotunnel's Passenger Shuttle car traffic volumes contracted as a result of the intensification of the competition from several ferry companies that derogate from the social models applicable in Great Britain and France on the cross-Channel market. Eurotunnel’s teams remain focused on delivering service quality and optimising value creation.

The cross-Channel truck market continues to be affected by the current economic slowdown and the long-term effects of Brexit. The competitive environment continues to reconfigure, notably with the signature in May 2024 of a charter agreement on the Dover-Calais route between Irish Ferries and P&O Ferries, similar to the one concluded between DFDS and P&O in 2021. The Group is questioning whether this creates a dominant market position and has referred the matter to the competition authorities.

Despite these factors and the intensification of the competitive environment on the Short Straits market, the Truck Shuttle business maintains its position as market leader mainly thanks to the efficiency of its First priority service, as well as the continued expansion of services for its customers with the development of its dematerialised border formalities management offer, strengthened by the acquisition of ChannelPorts in April 2024.

The Short Straits market has recently seen operators shifting towards a business model using staff hired under conditions different from those applicable to British and French flags. Both in the UK and France, new regulations have been adopted to counter this shift. The law has been in force in France since 1 July and in the UK, the secondary legislation is expected but has been delayed due to the general election on 4 July. These new regulations could rebalance the cost structures of the different players.

In 2024, the Group continues to focus on its competitive advantages - speed, simplicity, respect for the environment - and, supported by its LeShuttle brand and an innovative, customer-focused marketing strategy, enabling it to maintain its premium positioning. 

During the first half of 2024, the Group continued its disciplined cost control and the implementation of productivity measures in the Eurotunnel segment. Eurotunnel's operating expenses also benefited from the normalisation of energy markets on a cost basis (price effect of €19 million), the impact being offset by the reduction in the electricity value adjustment (EVA) for Truck Shuttle customers, recognised in revenue.

The Group is continuing its preparation for the new European Entry System (EES) which is scheduled for the fourth quarter of 2024. Works are nearing completion on the installation of state-of-the-art equipment and digital solutions to maintain traffic fluidity and ensure minimal impact on journey times for customers.

Europorte continued its strategy of profitable growth in 2024 with growth in traction and infrastructure activities.

The reduction in ElecLink's revenue to €185 million for the first half of 2024 reflects the normalisation of electricity markets since the first half of 2023. The operating performance of the interconnector remains very satisfactory, with an availability rate in the first half of 2024 of 100%. 

As of 30 June 2024, ElecLink had already secured sales for 85 % of its capacity for the year 2024, generating revenues of around €324 million, subject to the effective delivery of the service. Nevertheless, markets remain volatile in the current economic and geopolitical environment and market conditions in the final quarter of the year remain uncertain. 

Discussions with national regulators on the application of the profit-sharing mechanism provided for in the ElecLink exemption have begun and will continue over the next few months. 

The Group is pursuing its strategy of prudent cash management and maintains its high level of liquidity, with cash and cash management financial assets at 30 June 2024 of €1,497 million. The Group continues to examine opportunities to optimise its financing structure in order to minimise the cost of its debt when market conditions allow.

Objectives

The Group has set a target of consolidated current EBITDA for the 2024 financial year of between €780 million and €830 million, based on the current scope of consolidation, an exchange rate of £1=€1.15 and a constant regulatory and tax environment, taking into account in particular:

▪  The revenue already secured by ElecLink (85 % of the capacity of the cable has been sold and revenue of €324 million for the 2024 year has been secured subject to the actual delivery of the service), recent prices in the electricity market (which show a foreseeable normalisation of Franco-British spreads compared with the unusual levels recorded in 2022 and 2023) and using a similar method to that adopted for 2023 with regard to the provision for profit sharing recorded in operating costs.

▪  The implementation of EES formalities from the fourth quarter of 2024 on Eurotunnel sites, which has been the subject of intense preparation to make it a competitive advantage. 

In the second half of 2024, against a backdrop of very intense competition in cross-Channel transport, Getlink will pursue its strategy of operational excellence and strengthening its agility in order to optimise the attractiveness of its services and its value creation. In this context, the Group confirms its consolidated current EBITDA target for 2024 of between €780 million and €830 million.

RISKS

The principal risks and uncertainties that the Group may face in the remaining six months of the financial year are identified in chapter 3 "Risks and Control" of the 2023 Universal Registration Document which includes a detailed description of the risk factors to which the Group is exposed, and in particular, those relating to the competitive environment and the geopolitical and economic context. However, other risks, not identified at the date of publication of this half-year financial report, may exist.

RELATED PARTIES

In the first half of 2024, the Group did not have any related parties transactions as defined by IAS 24.

SUMMARY HALF-YEAR CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED INCOME STATEMENT

* Trading profit before depreciation charges.

CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

The accompanying notes form an integral part of these summary half-year consolidated financial statements. The exchange rates used for the preparation of these financial statements are set out in note B.2 below.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

The accompanying notes form an integral part of these summary half-year consolidated financial statements. The exchange rates used for the preparation of these financial statements are set out in note B.2 below.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

€ million

* See note H.4 below.

The accompanying notes form an integral part of these summary half-year consolidated financial statements. The exchange rates used for the preparation of these financial statements are set out in note B.2 below.

CONSOLIDATED STATEMENT OF CASH FLOWS

* The adjustment relates to the restatement of elements of the income statement at the exchange rate ruling at the period end.

Movement during the period

The accompanying notes form an integral part of these summary half-year consolidated financial statements. The exchange rates used for the preparation of these financial statements are set out in note B.2 below.

NOTES TO THE FINANCIAL STATEMENTS

Getlink SE is the Group’s consolidating entity. Its registered office is at 37-39 rue de la Bienfaisance, 75008 Paris, France, and its shares are listed on Euronext Paris. The term “Getlink SE” refers to the holding company which is governed by French law. The term “Group” refers to Getlink SE and all its subsidiaries.

The main activities of the Group are the design, financing, construction and operation by the Eurotunnel segment of the Fixed Link’s infrastructure and transport system in accordance with the terms of the Concession (which will expire in 2086), the rail freight activity of the Europorte segment as well as the construction and operation of the 1 GW electricity interconnector in the Tunnel by ElecLink. 

The summary half-year consolidated financial statements for 2024 were approved by the Board of Directors at its meeting held on 24 July 2024. 

A. Important events

Acquisition of the companies ChannelPorts Limited and CustomsPro Limited

On 11 April 2024, the Group concluded the acquisition of the british companies ChannelPorts Limited and CustomsPro Limited for £42 million (€49 million). As at 30 June 2024, the Group recognised a provisional goodwill of €44 million in the consolidated statement of financial position (see note C below).

B. Principles of preparation, main accounting policies and methods

B.1 Statement of compliance 

The summary half-year consolidated financial statements have been prepared in accordance with IFRS as adopted by the European Union and applicable on 30 June 2024. They have been prepared in accordance with IAS 34 and therefore do not contain all the information required for complete annual financial statements and must be read in conjunction with Getlink SE’s consolidated financial statements for the year ended 31 December 2023.

B.2 Basis of preparation and presentation of the consolidated financial statements

The summary half-year consolidated financial statements for Getlink SE and its subsidiaries are prepared as at 30 June.

The summary half-year consolidated financial statements have been prepared using the principles of currency conversion as defined in the annual financial statements as at 31 December 2023.

The average and closing exchange rates used in the preparation of the 2024 and 2023 half-year accounts and the 2023 annual accounts are as follows:

                                                                                                                                                                           30 June        31 December

€/£                                                                                                                                                                          2023                      2023

Closing rate                                                                                                                                                             1.165                      1.151

Average rate                                                                                                                                                           1.146                      1.153

B.3 Changes in accounting standards as at 30 June 2024

The standards and interpretations used and described in the annual financial statements as at 31 December 2023 have been supplemented by the standards, amendments and interpretations whose application is mandatory for financial years beginning on or after 1 January 2024.

B.3.1 Texts adopted by the European Union whose application is compulsory

The following texts, concerning accounting rules and methods specifically applied by the Group, have been approved by the European Union:

▪  amendments to IAS 1 - classification of liabilities as current or non-current (including the latest amendments published on 31 October 2022); 

▪  amendments to IFRS 16 - lease liabilities under sale and leaseback transactions (published by the IASB on 22 September 2022); and

▪  amendments to IAS 7 and IFRS 7 - supplier finance arrangements (published by the IASB on 25 May 2023).

These amendments and interpretations do not have a material impact on the Group's consolidated financial statements.

B.3.2 Texts adopted by the European Union but not yet compulsory

The following texts, concerning accounting rules and methods specifically applied by the Group, has been approved by the European Union but whose application is not yet mandatory: 

▪  amendments to IAS 21 - Absence of convertibility (published by the IASB on 15 August 2023);

▪  amendments to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments (published by the IASB on 30 May 2024);

▪  IFRS 18 - Presentation and Disclosure in Financial Statements (which replaces IAS 1), for periods beginning on or after 1 January 2027; and

▪  IFRS 19 - Disclosure by Subsidiaries without a requirement to disclose publicly (published by the IASB on 9 May 2024).

B.3.3 Texts and amendments published by the IASB but not yet approved by the European Union

The following texts concerning accounting rules and methods specifically applied by the Group have not yet been approved by the European Union:

▪              amendments to IAS 7 and IFRS 7 - supplier finance arrangements (published by the IASB on 25 May 2023); and ▪                 amendments to IAS 21 - absence of convertibility (published by the IASB on 15 August 2023).

The potential impact of these texts will be assessed by the Group in subsequent years.

B.4 Use of estimates and judgements

The preparation of the consolidated financial statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses for the period. The Group’s management and Board of Directors periodically review its valuations and estimates based on their experience and various other factors considered relevant for the determination of reasonable and appropriate estimates of the assets’ and liabilities’ carrying value. In addition, the estimates underlying the preparation of these half-year consolidated financial statements to 30 June 2024 have been established in the current economic and geopolitical context. Depending on the evolution of these assumptions, actual results may differ from current estimates.

The use of estimations concerns mainly the evaluation of provisions and in particular the provision for the profit-sharing for the ElecLink activity (note D.5), the evaluation of the Group’s deferred tax situation (note I), the valuation of the Group’s retirement liabilities (note E) and certain elements of the valuation of financial assets and liabilities (note G.5).

C. Scope of consolidation

The scope of consolidation at 30 June 2024 is the same as that at 31 December 2023, with the exception of:

▪  the dissolution of Cheriton Resources 1 Limited and Cheriton Resources 2 Limited on 16 January 2024 and EurotunnelPlus Limited on 21 May 2024, and

▪  the entry into consolidation of the following companies: TS Rail SAS, Renofer SAS, ChannelPorts Limited and CustomsPro Limited. 

Acquisition of TS Rail SAS

TS Rail SAS, 20% of which was acquired by Socorail SAS (a subsidiary of Europorte SAS), has been consolidated in the Group's consolidated financial statements using the equity method at 20% since1 January 2024. 

Acquisition of Renofer SAS

Renofer SAS, 67% of which was acquired by Socorail SAS (a subsidiary of Europorte SAS), has been fully consolidated in the Group's consolidated financial statements since 1 January 2024. The goodwill arising on the acquisition of Renofer, amounting to €0.4 million was recognised as an asset in the consolidated balance sheet at 30 June 2024. The Group expects to allocate the goodwill between the assets, liabilities and contingent liabilities.

Acquisition of ChannelPorts Limited and CustomsPro Limited

On 11 April 2024, Getlink, through its subsidiary Getlink Services SAS, acquired the entire share capital of ChannelPorts and CustomsPro, a leading UK customs services company, for a purchase price of £42 million.

This acquisition is at the heart of transport challenges and the need to simplify cross-Channel trade. Getlink is thus creating a unique range of services and support to facilitate the exchange of goods between Europe and the United Kingdom, fully in line with the Group's strategy, embodying the Low Carbon - High Simplicity ambition.

ChannelPorts and CustomsPro have been fully consolidated in the Group's accounts since 11 April 2024, the date on which Getlink Services, a subsidiary of Getlink SE, took control of them and they are reported in the Eurotunnel segment.

The goodwill arising on the acquisition of ChannelPorts and CustomsPro, amounting to £36.6 million and corresponding to the excess of the acquisition cost in ChannelPorts and CustomsPro compared to the net assets acquired, including an earnout, was recognised as an asset in the consolidated balance sheet at 30 June 2024. The Group plans to allocate the goodwill between the identifiable assets and contingent liabilities of ChannelPorts and CustomsPro, during the 2025 financial year.

D. Operating data

D.1 Segment information

The Group is organised around the following three sectors, which correspond to the internal information reviewed and used by the main operational decision makers (the Executive Committee):

▪  the “Eurotunnel” segment, includes the activities of the Eurotunnel sub-group companies, as well as those of the Group's parent company, Getlink SE and its other direct subsidiaries excluding Europorte and ElecLink,

▪  the “Europorte” segment, the main activity of which is that of rail freight operator, and

▪  the “ElecLink” segment, whose activity is the construction and operation of a 1 GW electricity interconnector running through the Channel Tunnel. 

Information by segment

€ million                                                                                           Eurotunnel             Europorte                 ElecLink                      Total

D.2 Revenue 

Revenue is analysed as follows:

The first half of 2024 is marked by the normalisation of ElecLink's contribution and increased competition from the ferries.

At 30 June 2024, ElecLink had already secured sales for 85% of its capacity for 2024 and revenues of €324 million, subject to effective delivery of the service.

D.3 Operating costs

Operating costs are analysed as follows:

* Net of a credit of €6 million in the first half of 2023 relating to EDF energy certificates in respect of the operation of the new Truck Shuttles.

** Including new activities.

D.4 Other operating income and (expenses)

D.5 Provisions

Provision for ElecLink profit sharing

The exemption granted to ElecLink in 2014 by the European Commission and the national regulators includes a profit sharing condition according to which, above a certain cumulative level in absolute value of return on investment, profits in excess of this return from the interconnector must be shared between ElecLink and the national grids, National Grid and RTE. The definitive rules for the application of this profit-sharing condition need to be clarified. Nevertheless, on the basis of this regulatory commitment, it is highly likely that the financial profit realised by ElecLink since the start of its operations as well as those estimated over the duration of the exemption will lead ElecLink to reach the contractual level of return on investment in absolute terms. In this context, the Group has recognised in its consolidated accounts at 30 June 2024 a provision of €372 million (31 December 2023: €298 million) in respect of the sharing of the profits of the interconnector in accordance with IAS 37 (see notes D.3 and G.7). There is now an unwinding of the discounting for the period that is booked under other financial expenses (see note G.3). The total provision was adjusted at 30 June 2024 on the basis of updated underlying assumptions that take account of the normalisation of electricity market trends. The amount of this provision has been established with the help of external experts, based on in-depth analyses and by performing sensitivity tests of the main key assumptions. However, this amount is subject to many assumptions and factors, including a highly volatile macroeconomic environment and uncertainties related to the components and the calculation method. Discussions with national regulators will continue in 2024. There were no cash outflows linked to this profit-sharing mechanism since the start of commercial operations.

E. Personnel expenses and benefits

E.1     Share-based payments

Free share plans with no performance conditions

Following the approval by the general meeting of shareholders on 7 May 2024 of the plan to issue existing free shares, Getlink SE’s Board of Directors decided on 7 May 2024 to grant a total of 448,240 Getlink SE ordinary shares (130 shares per employee) to all employees of Getlink SE and its related companies with the exception of executive and corporate officers of Getlink SE. The vesting period for these shares is one year and is followed by a three-year lock-up period.

During the first half of 2024, 391,500 free shares issued in 2023 were acquired by employees.

Movements on the free share plans with no performance conditions

Assumptions used for the fair value measurement on the grant date

Year of grant

Fair value of free shares on grant date (€)

Share price on grant date (€)

Number of beneficiaries

Charges to income statement

E.2     Retirement benefits

At 30 June 2024, the Group reviewed the main assumptions used in its actuarial calculations and updated the amount of its pension obligations in respect of its defined benefit pension scheme in the United Kingdom, The Channel Tunnel Group Pension Fund. On this basis, as at 30 June 2024, the UK pension asset has decreased by €2 million compared to 31 December 2023 mainly due to higher discount rates

F. Intangible and tangible property, plant and equipment

Indications of impairment and impairment tests

As at 30 June 2024, the Group has not identified any impairment of the assets of the Concession, Europorte or ElecLink, nor of the various goodwill assets.

Revision of depreciation periods for the ElecLink segment

The technical studies carried out by the Group, assisted by its advisers, during the first half of 2024 show that a significant proportion of ElecLink's assets have a useful life in excess of the exemption period of between 30 and 40 years. On this basis and in light of the current market outlook, the Group has extended the depreciation periods of the assets concerned, resulting in a reduction in the annual depreciation charge of approximately €10 million, i.e. €5 million at 30 June 2024.

G. Financing and financial instruments

G.1 Financial liabilities

The movements in financial liabilities during the period were as follows:

* Impact of recalculation of financial liabilities at 31 December 2023 (calculated at the year-end exchange rate of £1=€1.151) at the exchange rate at 30 June 2024 (£1=€1.182).

G.2 Hedging instruments

In 2007, the Group put in place hedging contracts to cover its floating rate loans (tranches C1 and C2) in the form of swaps for the same duration and for the same value (EURIBOR against a fixed rate of 4.90% and SONIA plus a spread of 0.2766% (previously LIBOR) against a fixed rate of 5.26%). The nominal value of hedging swap is €953 million and £350 million. These derivatives were partially terminated as part of the refinancing of tranche C of the Term Loan in June 2017 and of tranche C2A in May 2022. 

These derivatives have been measured at their fair value as a liability on the statement of financial position as follows:

€ million

At 31 December 2023                                                                                                                 289                          78                         367

Changes in market value *                                                                                                           (32)                        (30)                          (62)

Exchange difference                                                                                                                        –                            2                            2

* Recorded directly in equity.

The amount of negative reserves for hedging instruments changed as follows:

€ million

These derivatives generated a net charge to the income statement of €25 million for the first half of 2024 (a charge of €25 million for the first half of 2023).

G.3    Other financial assets

                                                                                                                                                                                                31 December

€ million                                                                                                                                                                                                2023

G2 notes                                                                                                                                                                                                  351

Net assets on retirement liabilities (see note E.2)                                                                                                                                       10

Other*                                                                                                                                                                                                        47

Total non-current                                                                                                                                                                                  408

Cash management financial assets                                                                                                                                                          287

Other*                                                                                                                                                                                                        25

Total current                                                                                                                                                                                          312

Total                                                                                                                                                                                                       720

* Including €31 million held in the DSRA in accordance with the terms of the Senior Secured Notes’ Trust Deed and €21 million in guarantees paid by ElecLink project at 30 June 2024 (31 December 2023: €31 million and €24 million respectively).

G.4 Other financial liabilities

G.5 Matrix of class of financial instrument and recognition categories and fair value

The table below presents the carrying amount and fair value of financial assets and liabilities. The different levels of fair value are defined in note G.9 to the consolidated financial statements at 31 December 2023. At 30 June 2024

At 30 June 2024, information relating to the fair value of the financial liabilities takes into account the evolution of the yield curves at 30 June 2024 and remains as described in note G.9 to the annual consolidated financial statements at 31 December 2023.

G.6    Net finance costs

The inflation indexation of the loan principal estimated at 30 June 2024 reflects the estimated effect of annual French and British inflation rates on the principal amount of the A tranches of the Term Loan as described in note G.1.2 of the annual consolidated financial statements at 31 December 2023.

G.7 Other financial income and (charges)

* Mainly arising from the re-evaluation of intra-group debtors and creditors.

In the first half of 2024, the Group recognised a charge of €19 million in respect of the unwinding of the ElecLink profit sharing provision in accordance with IAS 37 (see note D.5 above).

H. Share capital and earnings per share

H.1 Changes in share capital

H.2    Treasury shares

The movements in the number of own shares held during the period were as follows:

Treasury shares held as part of the share buyback programme approved by the general meetings of shareholders and implemented by decisions of the Board of Directors are allocated, in particular, to cover the grant of free shares.

H.3 Earnings per share

H.3.1 Number of shares

The calculations were made on the following bases:

▪  on the assumption of the acquisition of all the free shares allocated to staff (details of free shares are given in note E.1 above and note E.4.1 to the consolidated financial statements at 31 December 2023); and

▪  on the assumption of the acquisition of all the free shares with performance conditions attached and still in issue at 30 June 2024. Conversion of these shares is subject to achieving certain targets and remaining in the Group’s employment as described in note E.4.2 to the consolidated financial statements at 31 December 2023. 

H.3.2 Earnings per share

H.4 Detail of consolidated reserves by origin

Dividend

On the 7 May 2024, the ordinary general meeting of Getlink SE decided on the payment of the dividend for the financial year 2023, for an amount of €0.55 per share. This dividend was paid in June 2024 for a total amount of €298 million.

I.     Income tax expense

I.1     Tax accounted for through the income statement

The tax charge is accounted for by integrating into the half year’s result the estimated effective tax rate, based on internal forecasts for the full year. The determination of deferred taxes was based on the latest business plan presented to the Board of Directors.

I.2      Changes to deferred tax during the period

                                                                                                                                                   2024 impact on:                      

J. Events after the reporting period

Nothing to report.

Statutory auditors’ review report on the half-year financial information

STATUTORY AUDITORS’ REVIEW REPORT ON THE  2024 HALF-YEAR FINANCIAL INFORMATION

This is a free translation into English of the statutory auditors’ review report on the half-year financial information issued in French and is provided solely for the convenience of English-speaking users. This report includes information relating to the specific verification of information given in the Group’s half-year activity report. This report should be read in conjunction with, and construed in accordance with, French law and professional standards applicable in France.

To the Shareholders,

In compliance with the assignment entrusted to us by the general meeting and in accordance with the requirements of article L. 451-1-2 III of the French Monetary and Financial Code ("Code monétaire et financier"), we hereby report to you on:

▪  the review of the accompanying summary half-year consolidated financial statements of Getlink SE, for the period from 1 January to 30 June 2024, 

▪  the verification of the information presented in the half-year activity report.

These summary half-yearly consolidated financial statements are the responsibility of the Board of Directors. Our role is to express a conclusion on these financial statements based on our review.

I - Conclusion on the financial statements 

We conducted our review in accordance with professional standards applicable in France. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with professional standards applicable in France and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the accompanying summary half-year consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 - standard of the IFRS as adopted by the European Union applicable to interim financial information.

II - Specific verification 

We have also verified the information presented in the half-yearly activity report on the summary half-yearly consolidated financial statements subject to our review.

We have no matters to report as to its fair presentation and consistency with the summary half-yearly consolidated financial statements.

The statutory auditors, Paris La Défense, 24 July 2024,

                                                               YEAR FINANCIAL REPORT FOR THE SIX MONTHS TO 30 JUNE           

Declaration by the person responsible for the half-year financial report

DECLARATION BY THE PERSON RESPONSIBLE FOR THE HALFYEAR FINANCIAL REPORT AT 30 JUNE 2024

I declare that, to the best of my knowledge, these summary half-year consolidated financial statements have been prepared in accordance with applicable accounting standards and present fairly the assets, financial situation and results of Getlink SE and of all the companies included in the consolidation, and that this half-year financial report presents fairly the important events of the first six months of the financial year, their effect on the summary half-year consolidated financial statements, the main transactions between related parties, and a description of the main risks and uncertainties for the remaining six months of the financial year. 

Yann Leriche

Chief Executive Officer of Getlink SE

24 July 2024