Close

Form 8-K Criteo S.A. For: Feb 10

FREE Breaking News Alerts from StreetInsider.com!

E-mail Address

StreetInsider.com Top Tickers, 4/26/2024

1. META
2. CMG
3. LRCX
4. IBM
5. SPY
6. BA
7. HCP
8. SNAP
9. TMUS
10. MSFT


February 10, 2016 7:03 AM EST


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
 
FORM 8-K
 
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 10, 2016
 
CRITEO S.A.
(Exact name of registrant as specified in its charter)
 

France
 
001-36153
 
Not Applicable
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(I.R.S. Employer
Identification No.)
 
32, rue Blanche, Paris - France
 
75009
(Address of principal executive offices)
 
(Zip Code)
Registrant’s telephone number, including area code: +33 14 040 2290
(Former name or former address, if changed since last report)

 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
c
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
c
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
c
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-(b))
 
 
c
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-(c))




ITEM 2.02
 Results of Operations and Financial Condition

On February 10, 2016, Criteo S.A. (the “Company”) issued a press release and will hold a conference call regarding its financial results for the quarter and full year ended December 31, 2015. A copy of the press release is furnished as Exhibit 99.1 to this report.

The information furnished with this Item 2.02, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

The Company is making reference to non-GAAP financial information in both the press release and the conference call. A reconciliation of these non-GAAP financial measures to the most comparable GAAP financial measures is contained in the attached Exhibit 99.1 press release.
ITEM 9.01
 Financial Statements and Exhibits.
 
 
(d)
Exhibits
Exhibit
Number
  
Description
99.1
  
Press release dated February 10, 2016.
 








SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
 
Criteo S.A.
 
 
 
Date: February 10, 2016
By:
/s/ Benoit Fouilland
 
Name:
Benoit Fouilland
 
Title:
Chief Financial Officer






EXHIBIT INDEX
Exhibit
Number
  
Description
99.1
  
Press release dated February 10, 2016.

 
 






Exhibit 99.1

CRITEO REPORTS RECORD RESULTS
FOR THE FOURTH QUARTER AND FISCAL YEAR 2015  

NEW YORK - February 10, 2016 - Criteo S.A. (NASDAQ: CRTO), the performance marketing technology company, today announced financial results for the fourth quarter and fiscal year ended December 31, 20151.

•
Revenue for the fourth quarter 2015 increased 55% year-over-year (or 46% at constant currency2) to €362 million.
Revenue for fiscal year 2015 increased 60% year-over-year (or 50% at constant currency) to €1,193 million.

•
Revenue excluding Traffic Acquisition Costs, or Revenue ex-TAC, for the fourth quarter 2015 grew 51% year-over-year (or 43% at constant currency) to €146 million, or 40.3% of revenue.
Revenue ex-TAC for fiscal year 2015 grew 59% year-over-year (or 49% at constant currency) to €482 million, or 40.4% of revenue.

•
Net income for the fourth quarter 2015 increased 101% year-over-year to €35 million.
Net income for fiscal year 2015 increased 60% year-over-year to €57 million.

•
Adjusted EBITDA for the fourth quarter 2015 increased 53% year-over-year (or 49% at constant currency) to €49 million, or 13.5% of revenue.
Adjusted EBITDA for fiscal year 2015 increased 64% year-over-year (or 59% at constant currency) to €130 million, or 10.9% of revenue.

•
Adjusted net income per diluted share for the fourth quarter 2015 was €0.66.
Adjusted net income per diluted share for the fiscal year 2015 was €1.26.

•
Free cash flow for the fourth quarter 2015 increased 45% year-over-year to €43 million.
Free cash flow for fiscal year 2015 increased 8% year-over-year to €57 million.

“2015 was another terrific year for us. We crossed the 10,000 client and €1 billion revenue marks while continuing to invest significantly in innovation,” said Eric Eichmann, CEO. “I am thrilled to take the helm at such an exciting time and look forward to our 2016 initiatives.”

"I am very pleased with our growing profitability and strong free cash flow generation in 2015," said Benoit Fouilland, Chief Financial Officer. "Our unique financial model continues to be a key differentiator in our space."

___________________________________________________ 
1 We are providing amounts in this release in euros and in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board (“IFRS”) for the fourth quarter and fiscal year 2015 due to the fact that we previously provided guidance for such periods in euros and in accordance with IFRS. Please refer to appendices for financial measures in U.S. dollars (“USD”) and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).As explained below in the “Business Outlook” section, from the first quarter 2016 onward, we will be presenting our results in USD and in accordance with U.S. GAAP. For the year ended December 31, 2015, we expect to file our annual report on form 10-K on February 29th, 2016, which will include our consolidated financial statements for the three years ended December 31, prepared in accordance with U.S. GAAP and presented in USD. For more information, see “Business Outlook” and “Non-IFRS/non-GAAP Measures” herein. For the convenience of the reader, please see the full reconciliation of our consolidated financial statements in euros, in accordance with IFRS, to our consolidated financial statements in USD, in accordance with U.S. GAAP, for the fourth quarter and fiscal year 2015 and the corresponding periods in the prior year, included at the end of this release.
2 Growth at constant currency excludes the impact of foreign currency fluctuations and is computed by applying the 2014 average exchange rates for the relevant period to 2015 figures.

1


Operating Highlights

•
We added over 900 net clients in Q4 2015, while maintaining client retention at over 90%.
•
Over 47% of our Revenue ex-TAC was generated from mobile ads during the month of December 2015.
•
Our Q4 2014 clients generated 20% more Revenue ex-TAC at constant currency in Q4 2015, demonstrating our ability to drive revenue expansion within our customer base.
•
More than 3,000 of our clients were live on Facebook mobile via our integration with dynamic product ads as of December 31, 2015.
•
In Q4 2015, we generated 25% of our Revenue ex-TAC from users that were matched on at least two devices, illustrating the continued deployment of our cross-device solution to our clients.


Revenue ex-TAC

Revenue ex-TAC for the fourth quarter 2015 grew 51%, or 43% at constant currency, to €146 million, compared with €96 million in the fourth quarter 2014. This increase was primarily driven by the continued roll-out of our technology improvements across all devices including mobile, the addition of a record number of new clients and the expansion of our direct relationships with publishers.

Revenue ex-TAC for fiscal year 2015 grew 59%, or 49% at constant currency, to €482 million, compared with €304 million in fiscal year 2014.

•
In the Americas region, Revenue ex-TAC for the fourth quarter 2015 grew by 78% year-over-year, or 61% at constant currency, to €60 million and represented 41% of total Revenue ex-TAC.
Americas Revenue ex-TAC for fiscal year 2015 grew by 98% compared to 2014, or 73% at constant currency, to €178 million and accounted for 37% of total Revenue ex-TAC.
•
In the EMEA region, Revenue ex-TAC in the fourth quarter 2015 grew by 23% year-over-year, or 22% at constant currency, to €57 million and represented 39% of total Revenue ex-TAC.
EMEA Revenue ex-TAC for fiscal year 2015 increased by 32% compared to 2014, or 31% at constant currency, to €205 million and accounted for 43% of total Revenue ex-TAC.
•
In the Asia-Pacific region, Revenue ex-TAC in the fourth quarter 2015 grew by 76% year-over-year, or 62% at constant currency, to €30 million and represented 20% of total Revenue ex-TAC.
Asia-Pacific Revenue ex-TAC for fiscal year 2015 grew by 68% compared to 2014, or 57% at constant currency, to €99 million and accounted for 21% of total Revenue ex-TAC.

Revenue ex-TAC margin as a percentage of revenue for the fourth quarter 2015 was 40.3%, in line with prior quarters.

Revenue ex-TAC margin as a percentage of revenue for fiscal year 2015 was 40.4%, in line with prior years.


2


Adjusted EBITDA and Operating Expenses

Adjusted EBITDA for the fourth quarter 2015 was €49 million, an increase of 53%, or 49% at constant currency, compared with €32 million for the fourth quarter 2014. This increase in Adjusted EBITDA is primarily the result of the strong Revenue ex-TAC performance in the quarter. We incurred slightly higher than anticipated expenses, primarily as a result of the negative impact of changes in foreign currency exchange rates and variable costs.

Adjusted EBITDA for fiscal year 2015 was €130 million, an increase of 64%, or 59% at constant currency, compared with €79 million for fiscal year 2014.

Adjusted EBITDA margin as a percentage of revenue for the fourth quarter was 13.5% compared with 13.7% in the fourth quarter 2014.

Adjusted EBITDA margin as a percentage of revenue for fiscal year 2015 was 10.9%, a 0.2 percentage point improvement compared with 10.7% for fiscal year 2014. Excluding the impact of investments in search marketing in 2015, Adjusted EBITDA margin as a percentage of revenue for fiscal year 2015 was 12.1%, a 1.4 percentage point improvement compared with fiscal year 2014.

Operating expenses for the fourth quarter 2015 increased by 50% to €99 million compared with the fourth quarter 2014. Operating expenses for the fourth quarter 2015, excluding the impact of share-based compensation expense, pension costs, depreciation and amortization and acquisition-related deferred price consideration, which we refer to as Non-IFRS Operating Expenses, were €89 million, an increase of 52% compared with the fourth quarter 2014. This increase is primarily related to year-over-year headcount growth in Research & Development (60%) and Sales & Operations (35%), as we continued to scale our organization.

Operating expenses for fiscal year 2015 were €356 million, an increase of 57% compared with fiscal year 2014. On a Non-IFRS basis, our operating expenses for fiscal year 2015 were €322 million, an increase of 58% compared with fiscal year 2014. Non-IFRS operating expenses as a percentage of revenue for fiscal year 2015 were 27.0%, a decrease of 0.4 percentage points compared with fiscal year 2014, driven by the decrease in our Sales & Operations and General & Administrative expenses, by 0.3 percentage points and 0.5 percentage points respectively. Excluding the impact of investments in search marketing in 2015, Non-IFRS operating expenses as a percentage of revenue were 25.7% for fiscal year 2015, a decrease of 1.7 percentage points compared with fiscal year 2014.


Net Income and Adjusted Net Income

Net income for the fourth quarter 2015 was €35 million, an increase of 101% compared with €18 million for the fourth quarter 2014. Net income available to shareholders of Criteo S.A. for the fourth quarter 2015 was €35 million, or €0.53 per share on a diluted basis, compared with €17 million, or €0.27 per share on a diluted basis, for the fourth quarter 2014.

Net income for fiscal year 2015 was €57 million, an increase of 60% compared with €35 million for fiscal year 2014. Net income available to shareholders of Criteo S.A. for fiscal year 2015 was €54 million, or €0.84 per diluted share, compared with €34 million, or €0.55 per diluted share, for fiscal year 2014.

Adjusted Net Income, or net income adjusted to eliminate the impact of share-based compensation expense, amortization of acquisition-related intangible assets, acquisition-related deferred price consideration and the tax impact of these adjustments, for the fourth quarter 2015 was €43 million, or €0.66 per share on a diluted basis, an increase of 83% compared with €23 million, or €0.37 per share on a diluted basis, for the fourth quarter 2014.

Adjusted Net Income for fiscal year 2015 was €82 million, or €1.26 per share on a diluted basis, an increase of 53% compared with €53 million, or €0.86 per share on a diluted basis, for fiscal year 2014.

3


Cash Flow and Cash Position

Cash flow from operating activities for the fourth quarter 2015 increased 53% to €60 million, compared with €40 million for the fourth quarter 2014.

Cash flow from operating activities for fiscal year 2015 increased 41% to €124 million, compared with €88 million for fiscal year 2014.

Free cash flow, defined as cash flow from operating activities less acquisition of intangible assets, property, plant and equipment and net of proceeds from disposal, increased 45% to €43 million for the fourth quarter 2015, compared with €30 million for the fourth quarter 2014.

Free cash flow for fiscal year 2015 increased 8% to €57 million, compared with €52 million for fiscal year 2014.

Total cash and cash equivalents were €325 million as of December 31, 2015, an increase of €35 million compared to December 31, 2014.


Business Outlook

As of January 1, 2016, we began reporting as a U.S. domestic registrant under the Securities Exchange Act of 1934. As a result, we are required under U.S. Securities and Exchange Commission (“SEC”) rules to prepare our financial statements in accordance with U.S. GAAP, rather than IFRS, and to present our financial information in U.S. dollars instead of euros. Our first Annual Report on Form 10-K will present our results for 2013, 2014 and 2015 in U.S. dollars and in accordance with U.S. GAAP. In addition, from the first quarter 2016 onward, we will be presenting our results in U.S. dollars and in accordance with U.S. GAAP. Accordingly, the outlook for the first quarter and fiscal year 2016 is no longer provided in euros and in accordance with IFRS but rather provided in U.S. dollars and in accordance with U.S. GAAP.

The following forward-looking statements reflect Criteo’s expectations as of February 10, 2016.

First Quarter 2016 Guidance:
•
We expect Revenue ex-TAC for the first quarter 2016 to be between $153 million and $158 million (or between €139 million and €144 million).
•
We expect Adjusted EBITDA for the first quarter 2016 to be between $36 million and $41 million (or between €33 million and €37 million).

Fiscal Year 2016 Guidance:
•
We expect Revenue ex-TAC growth for fiscal year 2016 to be between 30% and 34% at constant currency.
•
We expect our Adjusted EBITDA margin as a percentage of revenue for fiscal year 2016 to increase between 60 basis points and 100 basis points compared to fiscal year 2015.

The above guidance assumes no additional acquisitions are completed during the first quarter ending March 31, 2016 and the fiscal year ending December 31, 2016.


4


Non-IFRS/non-GAAP Financial Measures
This press release and its attachments include the following financial measures defined as non-IFRS/non-GAAP financial measures by the SEC: Revenue ex-TAC, Revenue ex-TAC by Region, Revenue ex-TAC margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income per diluted share, Free Cash Flow, and Non-IFRS/Non-GAAP Operating Expenses. These measures are not calculated in accordance with IFRS or U.S. GAAP.
Revenue ex-TAC is our revenue excluding Traffic Acquisition Costs (“TAC”) generated over the applicable measurement period and Revenue ex-TAC by Region reflects our Revenue ex-TAC by our core geographies. Revenue ex-TAC and Revenue ex-TAC by Region are key measures used by our management and board of directors to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that the elimination of TAC from revenue can provide a useful measure for period-to-period comparisons of our core business and across our core geographies. Accordingly, we believe that Revenue ex-TAC and Revenue ex-TAC by Region provide useful information to investors and the market generally in understanding and evaluating our operating results in the same manner as our management and board of directors.
Adjusted EBITDA is our income (loss) from operations before interest, taxes, depreciation and amortization, adjusted to eliminate the impact of share-based compensation expense, pension service costs and acquisition-related deferred price consideration. Adjusted EBITDA is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short‑ and long-term operational plans. In particular, we believe that by eliminating non-cash compensation expense, pension costs and acquisition-related deferred price consideration, Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and the market generally in understanding and evaluating our results of operations in the same manner as our management and board of directors.
Adjusted Net Income is our net income adjusted to eliminate the impact of share-based compensation expense, amortization of acquisition-related intangible assets, acquisition-related deferred price consideration, and the tax impact of these adjustments. Adjusted Net Income is a key measure used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that by eliminating share-based compensation expense, amortization of acquisition-related intangible assets and acquisition-related deferred price consideration and the tax impact of these adjustments, Adjusted Net Income can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that Adjusted Net Income provides useful information to investors and the market generally in understanding and evaluating our results of operations in the same manner as our management and board of directors.
Free cash flow is defined as cash flow from operating activities less acquisition of intangible assets, property, plant and equipment and net of proceeds from disposal. Free cash flow is a key measure used by our management and board of directors to evaluate the Company's ability to generate cash. Accordingly, we believe that Free Cash Flow permits a more complete and comprehensive analysis of our available cash flows.
Please refer to the supplemental financial tables provided in the appendix of this press release for a reconciliation of Revenue ex-TAC to Revenue, Revenue ex-TAC by Region to Revenue by Region, Adjusted EBITDA to net income, Adjusted Net Income to net income and Free Cash Flow to cash flow from operating activities, in each case, the most comparable IFRS and U.S. GAAP measurement. Our use of non-IFRS/non-GAAP financial measures has limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under IFRS or U.S. GAAP. Some of these limitations are:  (1) other companies, including companies in our industry which have similar business arrangements, may address the impact of TAC differently; and (2) other companies may report Revenue ex-TAC, Revenue ex-TAC by Region, Adjusted EBITDA, Adjusted Net Income, Free Cash Flow or similarly titled measures but calculate them differently or over different regions, which reduces their usefulness as comparative measures. Because of these and other limitations, you should consider these measures alongside our IFRS and U.S. GAAP financial results, including revenue and net income.
With respect to our expectations under “Business Outlook” above, reconciliation of Revenue ex-TAC and Adjusted EBITDA guidance to the closest corresponding U.S. GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our share price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future U.S. GAAP financial results.

5


Forward-Looking Statements Disclosure

This press release contains forward-looking statements, including projected financial results for the quarter ending March 31, 2016 and the fiscal year ending December 31, 2016, our expectations regarding our market opportunity and future growth prospects and other statements that are not historical facts, and involve risks and uncertainties that could cause actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to: recent growth rates not being indicative of future growth, uncertainty regarding legislative, regulatory or self-regulatory developments regarding data privacy matters, uncertainty regarding our ability to access a consistent supply of internet display advertising inventory and expand access to such inventory, the investments in new business opportunities and the timing of these investments, the impact of competition, our ability to manage growth, potential fluctuations in operating results, our ability to grow our base of clients, uncertainty regarding international growth and expansion, and the financial impact of maximizing Revenue ex-TAC, as well as risks related to future opportunities and plans, including the uncertainty of expected future financial performance and results and those risks detailed from time-to-time under the caption “Risk Factors” and elsewhere in the Company’s SEC filings and reports, including the Company's Annual Report on Form 20-F filed with the SEC on March 27, 2015, as well as future filings and reports by the Company. Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events, changes in expectations or otherwise.


Conference Call Information

Criteo’s earnings conference call will take place today, February 10, 2016, at 8:00am ET, 2:00pm CET. The conference call will be webcast live on the Company’s website http://ir.criteo.com and will be available for replay.

Conference call details:
•
U.S. callers:             +1 877 870 4263
•
International callers:        +1 412 317 0790 or +33 1 76 74 05 02

Please ask to be joined into the “Criteo S.A.” call.

As the Company will report for the first time its financial statements presented in U.S. dollars and in accordance with U.S. GAAP, Criteo will host a separate conference call today, February 10, 2016, at 9:15am ET, 3:15pm CET. The purpose of this second call will be to discuss the conversion of its financial statements presented in euros and in accordance with IFRS into financial statements presented in U.S. dollars and in accordance with U.S. GAAP. The conference call will be webcast live on the Company’s website http://ir.criteo.com and will be available for replay.

Conference call details:
•
U.S. callers:             +1 877 870 4263,     
•
International callers:        +1 412 317 0790 or +33 1 76 74 05 02

Please ask to be joined into the “Criteo U.S. GAAP Transition call”.


About Criteo

Criteo (NASDAQ: CRTO) delivers personalized performance marketing at an extensive scale. Measuring return on post-click sales, Criteo makes ROI transparent and easy to measure. As of December 31, 2015, Criteo has over 1,800 employees in 27 offices across the Americas, EMEA and Asia-Pacific, serving over 10,000 advertisers worldwide and with direct relationships with close to 14,000 publishers. For more information, please visit www.criteo.com.


6


Contacts

Criteo Investor Relations
Edouard Lassalle, Head of IR

Friederike Edelmann, Sr. Manager IR

Criteo Public Relations
Emma Ferns, Global PR director






Financial information to follow


7


CRITEO S.A.
IFRS Consolidated Statement of Income
(Euros in thousands, except per share data)
(unaudited)

 
 
Three Months Ended
 
 
 
Twelve Months Ended
 
 
 
 
December 31,
 
 
 
December 31,
 
 
 
 
2014

 
2015

 
YoY Change

 
2014

 
2015

 
YoY Change

Revenue
 
€
232,796

 
€
361,732

 
55.4
 %
 
€
745,081

 
€
1,193,414

 
60.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of revenue:
 
 
 
 
 
 
 
 
 
 
 
 
Traffic acquisition costs
 
(136,493
)
 
(215,980
)
 
58.2
 %
 
(441,427
)
 
(711,755
)
 
61.2
 %
Other cost of revenue
 
(11,054
)
 
(16,213
)
 
46.7
 %
 
(36,150
)
 
(56,100
)
 
55.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross Profit
 
85,249

 
129,539

 
52.0
 %
 
267,504

 
425,559

 
59.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Research and development expenses
 
(12,191
)
 
(24,215
)
 
98.6
 %
 
(45,293
)
 
(78,313
)
 
72.9
 %
Sales and operations expenses
 
(39,668
)
 
(54,953
)
 
38.5
 %
 
(133,393
)
 
(206,325
)
 
54.7
 %
General and administrative expenses
 
(13,698
)
 
(19,386
)
 
41.5
 %
 
(48,788
)
 
(71,386
)
 
46.3
 %
Total operating expenses
 
(65,557
)
 
(98,554
)
 
50.3
 %
 
(227,474
)
 
(356,024
)
 
56.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from operations
 
19,692

 
30,985

 
57.3
 %
 
40,030

 
69,535

 
73.7
 %
Financial income (expense)
 
1,264

 
644

 
(49.1
)%
 
8,587

 
(4,094
)
 
(147.7
)%
Income before taxes
 
20,956

 
31,629

 
50.9
 %
 
48,617

 
65,441

 
34.6
 %
Provision for income taxes
 
(3,313
)
 
3,861

 
(216.5
)%
 
(13,253
)
 
(8,689
)
 
(34.4
)%
Net income
 
€
17,643

 
€
35,490

 
101.2
 %
 
€
35,364

 
€
56,752

 
60.5
 %
 - Net income available to shareholders of Criteo S.A.
 
€
17,256

 
€
34,580

 
 
 
€
34,354

 
€
54,296

 
 
 - Net income available to non-controlling Interests
 
€
387

 
€
910

 
 
 
€
1,010

 
€
2,456

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 - Basic
 
60,519,987

 
62,348,620

 
 
 
58,928,563

 
61,835,499

 
 
 - Diluted
 
63,854,664

 
65,092,423

 
 
 
62,065,699

 
64,775,108

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income allocated to shareholders per share
 
 
 
 
 
 
 
 
 
 
 
 
 - Basic
 
€
0.29

 
€
0.55

 
 
 
€
0.58

 
€
0.88

 
 
 - Diluted
 
€
0.27

 
€
0.53

 
 
 
€
0.55

 
€
0.84

 
 

8


CRITEO S.A.
IFRS Consolidated Statement of Financial Position
(Euros in thousands)
(unaudited)

 
 
December 31,

 
December 31,

 
 
2014

 
2015

Goodwill
 
€
22,944

 
€
38,553

Intangible assets
 
10,560

 
15,126

Property, plant and equipment
 
43,027

 
75,762

Non-current financial assets
 
9,494

 
15,784

Deferred tax assets
 
7,113

 
18,432

TOTAL NON-CURRENT ASSETS
 
93,138

 
163,657

Trade receivables
 
158,633

 
240,264

Current tax assets
 
2,883

 
2,500

Other current assets
 
21,021

 
41,944

Cash and cash equivalents
 
289,784

 
324,733

TOTAL CURRENT ASSETS
 
472,321

 
609,441

TOTAL ASSETS
 
565,459

 
773,098

 
 
 
 
 
Share capital
 
1,523

 
1,562

Additional paid-in capital
 
265,522

 
277,901

Currency translation adjustment
 
4,804

 
11,598

Consolidated reserves
 
35,302

 
90,997

Retained earnings
 
34,354

 
54,296

Equity - attributable to shareholders of Criteo S.A.
 
341,505

 
436,354

Non-controlling interests
 
1,433

 
4,315

TOTAL EQUITY
 
342,938

 
440,669

Financial liabilities - non-current portion
 
4,333

 
3,005

Retirement benefit obligation
 
1,024

 
1,327

Deferred tax liabilities
 
946

 
132

TOTAL NON-CURRENT LIABILITIES
 
6,303

 
4,464

Financial liabilities - current portion
 
7,841

 
6,573

Provisions
 
1,131

 
614

Trade payables
 
135,557

 
226,304

Current tax liabilities
 
7,969

 
14,113

Other current liabilities
 
63,720

 
80,361

TOTAL CURRENT LIABILITIES
 
216,218

 
327,965

TOTAL LIABILITIES
 
222,521

 
332,429

TOTAL EQUITY AND LIABILITIES
 
€
565,459

 
€
773,098


9


CRITEO S.A.
IFRS Consolidated Statement of Cash Flows
(Euros in thousands)
(unaudited)
 
 
Three Months Ended
 
Twelve Months Ended
 
 
December 31,
 
December 31,
 
 
2014

 
2015

 
2014

 
2015

Net income
 
€
17,643

 
€
35,490

 
€
35,364

 
€
56,752

Non-cash and non-operating items
 
16,379

 
14,489

 
53,931

 
70,867

                 - Amortization and provisions
 
7,662

 
13,335

 
25,146

 
42,469

                 - Share-based payment expense
 
4,840

 
7,047

 
14,778

 
21,642

                 - Net gain or loss on disposal of non-current assets
 
110

 
(1,994
)
 
106

 
(1,918
)
                 - Interest paid
 
5

 
(3
)
 
17

 
5

                 - Non-cash financial income and expenses
 
449

 
5

 
632

 
20

                 - Change in deferred taxes
 
(4,573
)
 
(11,343
)
 
(4,007
)
 
(14,098
)
                 - Income tax for the period
 
7,886

 
7,442

 
17,260

 
22,747

Changes in working capital related to operating activities
 
12,252

 
15,543

 
3,516

 
13,022

                 - (Increase)/decrease in trade receivables
 
(26,812
)
 
(50,604
)
 
(63,064
)
 
(75,247
)
                 - Increase/(decrease) in trade payables
 
28,678

 
54,735

 
53,195

 
90,233

                 - (Increase)/decrease in other current assets
 
565

 
412

 
(6,021
)
 
(21,737
)
                 - Increase/(decrease) in other current liabilities
 
9,821

 
11,000

 
19,406

 
19,773

Income taxes paid
 
(6,684
)
 
(5,074
)
 
(5,142
)
 
(16,960
)
CASH FROM OPERATING ACTIVITIES
 
39,590

 
60,448

 
87,670

 
123,681

Acquisition of intangible assets, property, plant and equipment
 
(9,993
)
 
(17,580
)
 
(35,389
)
 
(67,090
)
Proceeds from disposal of intangible assets, property, plant and equipment
 
(10
)
 
8

 
40

 
9

FREE CASH FLOW
 
29,587

 
42,876

 
52,321

 
56,600

Investments
 
—

 
—

 
(18,775
)
 
(18,009
)
Change in other non-current financial assets
 
(521
)
 
(314
)
 
(1,728
)
 
(5,964
)
CASH USED FOR INVESTING ACTIVITIES
 
(10,524
)
 
(17,886
)
 
(55,852
)
 
(91,054
)
Issuance of long-term borrowings
 
1,189

 
723

 
4,243

 
3,582

Repayment of borrowings
 
(1,196
)
 
(2,521
)
 
(4,902
)
 
(8,101
)
Interests paid
 
(5
)
 
(19
)
 
(17
)
 
42

Proceeds from capital increase
 
3,730

 
3,416

 
23,854

 
12,417

Change in other financial liabilities
 
48

 
—

 
205

 
(906
)
CASH FROM FINANCING ACTIVITIES
 
3,766

 
1,599

 
23,383

 
7,034

 
 
 
 
 
 
 
 
 
CHANGE IN NET CASH AND CASH EQUIVALENTS
 
32,832

 
44,161

 
55,200

 
39,661

Net cash and cash equivalents at beginning of period
 
256,719

 
280,857

 
234,342

 
289,784

Effect of exchange rates changes on cash and cash equivalents
 
233

 
(285
)
 
242

 
(4,712
)
Net cash and cash equivalents at end of period
 
€
289,784

 
€
324,733

 
€
289,784

 
€
324,733


10


CRITEO S.A.
IFRS Reconciliation of Revenue ex-TAC by Region to Revenue by Region
(Euros in thousands)
(unaudited)

 
 
 
Three Months Ended
 
 
 
 
 
 
 
 
Twelve Months Ended
 
 
 
 
 
 
 
December 31,
 
 
 
 
 
 
 
 
December 31,
 
 
 
 
 
Region
 
2014

 
2015

 
YoY Change

 
YoY Change at Constant Currency (*)

 
 
Region
 
2014

 
2015

 
YoY Change

 
YoY Change at Constant Currency (*)

Revenue
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
 
Americas
 
€
85,598

 
€
154,761

 
81
%
 
63
%
 
 
Americas
 
€
228,773

 
€
456,049

 
99
%
 
74
%
 
EMEA
 
104,480

 
132,268

 
27
%
 
25
%
 
 
EMEA
 
366,404

 
488,071

 
33
%
 
32
%
 
Asia-Pacific
 
42,718

 
74,703

 
75
%
 
62
%
 
 
Asia-Pacific
 
149,904

 
249,294

 
66
%
 
56
%
 
Total
 
232,796

 
361,732

 
55
%
 
46
%
 
 
Total
 
745,081

 
1,193,414

 
60
%
 
50
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Traffic acquisition costs
 
 
 
Traffic acquisition costs
 
 
 
Americas
 
(52,167
)
 
(95,183
)
 
82
%
 
64
%
 
 
Americas
 
(138,910
)
 
(278,170
)
 
100
%
 
75
%
 
EMEA
 
(58,449
)
 
(75,687
)
 
29
%
 
28
%
 
 
EMEA
 
(211,287
)
 
(283,151
)
 
34
%
 
33
%
 
Asia-Pacific
 
(25,877
)
 
(45,110
)
 
74
%
 
62
%
 
 
Asia-Pacific
 
(91,230
)
 
(150,434
)
 
65
%
 
55
%
 
Total
 
(136,493
)
 
(215,980
)
 
58
%
 
48
%
 
 
Total
 
(441,427
)
 
(711,755
)
 
61
%
 
51
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue ex-TAC
 
 
 
 
 
 
 
Revenue ex-TAC
 
 
 
 
 
Americas
 
33,432

 
59,578

 
78
%
 
61
%
 
 
Americas
 
89,863

 
177,879

 
98
%
 
73
%
 
EMEA
 
46,030

 
56,581

 
23
%
 
22
%
 
 
EMEA
 
155,117

 
204,920

 
32
%
 
31
%
 
Asia-Pacific
 
16,841

 
29,593

 
76
%
 
62
%
 
 
Asia-Pacific
 
58,674

 
98,860

 
68
%
 
57
%
 
Total
 
€
96,303

 
€
145,752

 
51
%
 
43
%
 
 
Total
 
€
303,654

 
€
481,659

 
59
%
 
49
%

(*) Due to entries into the consolidation scope during the year ended December 31, 2015 and U.S. GAAP conversion adjustments, there are slight variances between the year-over-year change at constant currency as determined under IFRS and presented in euros and the year-over-year change at constant currency as determined under U.S. GAAP and presented in U.S dollars.

11


CRITEO S.A.
IFRS Reconciliation of Adjusted EBITDA to Net Income
(Euros in thousands)
(unaudited)

 
Three Months Ended
 
Twelve Months Ended
 
December 31,
 
December 31,
 
2014

 
2015

 
2014

 
2015

Net income
€
17,643

 
€
35,490

 
€
35,364

 
€
56,752

Adjustments:
 
 
 
 
 
 
 
Financial (income) expense
(1,264
)
 
(644
)
 
(8,587
)
 
4,094

Provision (benefit) for income taxes
3,313

 
(3,861
)
 
13,253

 
8,689

Share-based compensation expense
4,840

 
7,047

 
14,778

 
21,642

Research and development
700

 
1,969

 
2,776

 
5,884

Sales and operations
2,814

 
3,281

 
9,267

 
10,534

General and administrative
1,326

 
1,797

 
2,735

 
5,224

Service cost-pension
94

 
100

 
371

 
398

Research and development
31

 
37

 
126

 
147

Sales and operations
36

 
35

 
141

 
138

General and administrative
27

 
28

 
104

 
113

Depreciation and amortization expense
7,131

 
12,715

 
23,532

 
40,197

Cost of revenue
5,008

 
7,822

 
16,176

 
26,936

Research and development
1,009

 
2,886

 
3,731

 
7,214

Sales and operations
854

 
1,587

 
2,762

 
4,670

General and administrative
260

 
420

 
863

 
1,377

Acquisition-related deferred price consideration
97

 
(1,958
)
 
716

 
(1,708
)
Research and development
97

 
42

 
716

 
292

Sales and operations
—

 
—

 
—

 
—

General and administrative
—

 
(2,000
)
 
—

 
(2,000
)
Total net adjustments
14,211

 
13,399

 
44,063

 
73,312

Adjusted EBITDA
€
31,854

 
€
48,889

 
€
79,427

 
€
130,064


12


CRITEO S.A.
IFRS Detailed Information on Selected Items
(Euros in thousands)
(unaudited)

 
Three Months Ended
 
Twelve Months Ended
 
December 31,
 
December 31,
 
2014

 
2015

 
2014

 
2015

Share-Based Compensation Expense
 
 
 
 
 
 
 
Research and development
€
700

 
€
1,969

 
€
2,776

 
€
5,884

Sales and operations
2,814

 
3,281

 
9,267

 
10,534

General and administrative
1,326

 
1,797

 
2,735

 
5,224

Total Share-Based Compensation Expense
4,840

 
7,047

 
14,778

 
21,642

 
 
 
 
 
 
 
 
Service cost-pension

 
 
 
 
 
 
 
Research and development
31

 
37

 
126

 
147

Sales and operations
36

 
35

 
141

 
138

General and administrative
27

 
28

 
104

 
113

Total Service cost-pension
94

 
100

 
371

 
398

 
 
 
 
 
 
 
 
Depreciation and Amortization Expense
 
 
 
 
 
 
 
Cost of revenue
5,008

 
7,822

 
16,176

 
26,936

Research and development
1,009

 
2,886

 
3,731

 
7,214

Sales and operations
854

 
1,587

 
2,762

 
4,670

General and administrative
260

 
420

 
863

 
1,377

Total Depreciation and Amortization Expense
7,131

 
12,715

 
23,532

 
40,197

 
 
 
 
 
 
 
 
Acquisition-Related Deferred Price Consideration
 
 
 
 
 
 
 
Research and development
97

 
42

 
716

 
292

Sales and operations
—

 
—

 
—

 
—

General and administrative
—

 
(2,000
)
 
—

 
(2,000
)
Total Acquisition-Related Deferred Price Consideration
€
97

 
€
(1,958
)
 
€
716

 
€
(1,708
)

13


CRITEO S.A.
IFRS Reconciliation of Adjusted Net Income to Net Income
(Euros in thousands)
(unaudited)

 
 
Three Months Ended
 
Twelve Months Ended
 
 
December 31,
 
December 31,
 
 
2014

 
2015

 
2014

 
2015

 
 
 
 
 
 
 
 
 
Net income
 
€
17,643

 
€
35,490

 
€
35,364

 
€
56,752

Adjustments:
 
 
 
 
 
 
 
 
Share-based compensation expense
 
4,840

 
7,047

 
14,778

 
21,642

Amortization of acquisition-related intangible assets
 
840

 
2,313

 
2,942

 
5,720

Acquisition-related deferred price consideration
 
97

 
(1,958
)
 
716

 
(1,708
)
Tax impact of the above adjustments
 
(31
)
 
(46
)
 
(379
)
 
(792
)
Total net adjustments
 
5,746

 
7,356

 
18,057

 
24,862

Adjusted net income
 
€
23,389

 
€
42,846

 
€
53,421

 
€
81,614

 
 
 
 
 
 
 
 
 
Weighted average shares outstanding
 
 
 
 
 
 
 
 
 - Basic
 
60,519,987

 
62,348,620

 
58,928,563

 
61,835,499

 - Diluted
 
63,854,664

 
65,092,423

 
62,065,699

 
64,775,108

Adjusted net income per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 - Basic
 
€
0.39

 
€
0.69

 
€
0.91

 
€
1.32

 - Diluted
 
€
0.37

 
€
0.66

 
€
0.86

 
€
1.26


14


CRITEO S.A.
IFRS Constant Currency Reconciliation
(Euros in thousands)
(unaudited)

 
 
Three Months Ended
 
 
 
Twelve Months Ended
 
 
 
 
 
December 31,
 
 
 
December 31,
 
 
 
 
 
2014

 
2015

 
YoY Change

 
2014

 
2015

 
YoY Change

Revenue as reported
 
€
232,796

 
€
361,732

 
55
%
 
€
745,081

 
€
1,193,414

 
60
%
Conversion impact euro/other currencies
 
 
 
(11,460
)
 
 
 
 
 
(78,041
)
 
 
Revenue at constant currency (*)
 
232,796

 
339,611

 
46
%
 
745,081

 
1,115,373

 
50
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Traffic acquisition costs as reported
 
(136,493
)
 
(215,980
)
 
58
%
 
(441,427
)
 
(711,755
)
 
61
%
Conversion impact euro/other currencies
 
 
 
6,982

 
 
 
 
 
47,344

 
 
Traffic acquisition costs at constant currency (*)
 
(136,493
)
 
(202,282
)
 
48
%
 
(441,427
)
 
(664,411
)
 
51
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue ex-TAC as reported
 
96,303

 
145,752

 
51
%
 
303,654

 
481,659

 
59
%
Conversion impact euro/other currencies
 
 
 
(4,478
)
 
 
 
 
 
(30,697
)
 
 
Revenue ex-TAC at constant currency (*)
 
96,303

 
137,330

 
43
%
 
303,654

 
450,962

 
49
%
Revenue ex-TAC/Revenue as reported
 
41.4
%
 
40.3
%
 
 
 
40.8
%
 
40.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other cost of revenue as reported
 
(11,054
)
 
(16,213
)
 
47
%
 
(36,150
)
 
(56,100
)
 
55
%
Conversion impact euro/other currencies
 
 
 
1,037

 
 
 
 
 
5,639

 
 
Other cost of revenue at constant currency (*)
 
(11,054
)
 
(14,790
)
 
34
%
 
(36,150
)
 
(50,461
)
 
40
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA
 
31,854

 
48,889

 
53
%
 
79,427

 
130,064

 
64
%
Conversion impact euro/other currencies
 
 
 
(1,481
)
 
 
 
 
 
(3,406
)
 
 
Adjusted EBITDA at constant currency (*)
 
31,854

 
47,408

 
49
%
 
79,427

 
126,658

 
59
%

(*) Due to entries into the consolidation scope during the year ended December 31, 2015 and U.S. GAAP conversion adjustments, there are slight variances between the year-over-year change at constant currency as determined under IFRS and presented in euros and the year-over-year change at constant currency as determined under U.S. GAAP and presented in U.S dollars.


15


CRITEO S.A.
IFRS Information on Share Count
(unaudited)

 
 
2014

 
2015

Shares outstanding as at January 1,
 
56,856,070

 
60,902,695

Weighted average number of shares issued during the period
 
2,072,493

 
932,804

Basic number of shares - Basic EPS basis
 
58,928,563

 
61,835,499

Dilutive effect of share options, warrants, employee warrants - Treasury method
 
3,717,153

 
2,939,609

Diluted number of shares - Diluted EPS basis
 
62,645,716

 
64,775,108

 
 
 
 
 
Shares outstanding as at December 31,
 
60,902,695

 
62,470,881

Total dilutive effect of share options, warrants, employee warrants
 
7,555,249

 
7,798,348

Fully diluted shares as at December 31,
 
68,457,944

 
70,269,229


16


CRITEO S.A.
IFRS Supplemental Financial Information and Operating Metrics
(Euros in thousands except where stated)
(unaudited)

 
 
Q2
2013

Q3
2013

Q4
2013

Q1
2014

Q2
2014

Q3
2014

Q4
2014

Q1
2015

Q2 2015

Q3 2015

Q4 2015

YoY
Change

QoQ Change

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Clients
4,274

4,631

5,072

5,567

6,131

6,581

7,190

7,832

8,564

9,290

10,198

42
 %
10
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
99,400

113,811

135,889

152,520

165,317

194,449

232,796

261,523

270,859

299,299

361,732

55
 %
21
 %
 
Americas
28,846

30,473

38,660

37,630

46,942

58,602

85,598

89,460

100,262

111,566

154,761

81
 %
39
 %
 
EMEA
53,348

59,732

70,291

83,853

84,187

93,885

104,480

117,532

114,824

123,445

132,268

27
 %
7
 %
 
APAC
17,206

23,606

26,937

31,037

34,187

41,962

42,718

54,531

55,773

64,288

74,703

75
 %
16
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue ex-TAC
40,032

46,815

54,855

62,733

67,022

77,596

96,303

105,160

110,455

120,292

145,752

51
 %
21
 %
 
Americas
11,124

11,896

15,108

14,725

18,600

23,106

33,432

35,015

39,803

43,485

59,578

78
 %
37
 %
 
EMEA
21,807

25,358

29,057

35,320

35,101

38,666

46,030

48,050

48,569

51,718

56,581

23
 %
9
 %
 
APAC
7,101

9,561

10,690

12,688

13,321

15,824

16,841

22,095

22,083

25,089

29,593

76
 %
18
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flow from operating activities
4,134

3,731

12,255

11,437

11,162

25,481

39,555

36,421

11,045

15,768

60,448

53
 %
283
 %
 
 
Capital expenditures
6,590

5,737

7,187

3,781

10,459

11,156

9,993

11,436

16,561

21,513

17,580

76
 %
(18
)%
 
 
Net cash position
47,893

39,839

234,343

241,786

242,895

256,719

289,784

294,057

286,986

280,857

324,733

12
 %
16
 %
 
 
Days Sales Outstanding (days - end of month)
56.7

55.6

53.5

53.8

57.1

56.6

54.7

56.5

55.4

55.2

53.5

(2
)%
(3
)%
 

17


CRITEO S.A.
U.S. GAAP Consolidated Statement of Financial Position
(U.S. dollars in thousands)
(unaudited)

 
 
December 31,

 
December 31,

 
 
2014

 
2015

Cash and cash equivalents
 
$
351,827

 
$
353,537

Trade receivables, net of allowances
 
192,595

 
261,581

Current tax assets
 
3,493

 
2,714

Other current assets
 
25,517

 
45,582

TOTAL CURRENT ASSETS
 
573,432

 
663,414

Property, plant and equipment
 
52,239

 
82,482

Intangible assets
 
12,821

 
16,470

Goodwill
 
27,856

 
41,973

Non-current financial assets
 
11,527

 
17,184

Deferred tax assets
 
8,635

 
20,196

TOTAL NON-CURRENT ASSETS

 
113,078

 
178,305

TOTAL ASSETS
 
686,510

 
$
841,719

 
 
 
 
 
Trade payables
 
164,579

 
246,382

Provisions
 
1,373

 
668

Current tax liabilities
 
9,676

 
15,365

Financial liabilities - current portion
 
9,520

 
7,156

Other current liabilities
 
77,362

 
88,269

TOTAL CURRENT LIABILITIES
 
262,510

 
357,840

Deferred tax liabilities
 
1,142

 
139

Retirement benefit obligation
 
1,243

 
1,445

Financial liabilities - non-current portion
 
5,260

 
3,272

TOTAL NON-CURRENT LIABILITIES
 
7,645

 
4,856

TOTAL LIABILITIES
 
270,155

 
362,696

Common stock
 
2,008

 
2,052

Additional paid-in capital
 
387,972

 
425,220

Retained earnings
 
56,680

 
116,278

Accumulated other comprehensive income (loss)
 
(32,045
)
 
(69,225
)
Equity - attributable to shareholders of Criteo S.A.
 
414,615

 
474,325

Non-controlling interest
 
1,740

 
4,698

TOTAL EQUITY
 
416,355

 
479,023

TOTAL EQUITY AND LIABILITIES
 
$
686,510

 
$
841,719


18


CRITEO S.A.
U.S. GAAP Consolidated Statement of Income
(U.S. dollars in thousands, except per share data)
(unaudited)

 
Three Months Ended
 
 
 
Twelve Months Ended
 
 
 
December 31,
 
 
 
December 31,
 
 
 
2014

 
2015

 
YoY Change

 
2014

 
2015

 
YoY Change

Revenue
$
294,489

 
$
397,018

 
34.8
 %
 
$
988,249

 
$
1,323,169

 
33.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
Cost of revenue
 
 
 
 
 
 
 
 
 
 
 
Traffic acquisition costs
(172,538
)
 
(237,056
)
 
37.4
 %
 
(585,492
)
 
(789,152
)
 
34.8
 %
Other cost of revenue
(13,962
)
 
(17,782
)
 
27.4
 %
 
(47,948
)
 
(62,201
)
 
29.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
Gross Profit
107,989

 
142,180

 
31.7
 %
 
354,809

 
471,816

 
33.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
Research and development expenses
(15,247
)
 
(26,665
)
 
74.9
 %
 
(60,075
)
 
(86,807
)
 
44.5
 %
Sales and operations expenses
(50,002
)
 
(60,410
)
 
20.8
 %
 
(176,927
)
 
(229,530
)
 
29.7
 %
General and administrative expenses
(17,202
)
 
(21,280
)
 
23.7
 %
 
(64,723
)
 
(79,145
)
 
22.3
 %
Total operating expenses
(82,451
)
 
(108,355
)
 
31.4
 %
 
(301,725
)
 
(395,482
)
 
31.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
Income from operations
25,538

 
33,825

 
32.4
 %
 
53,084

 
76,334

 
43.8
 %
Financial income (expense)
1,473

 
735

 
(50.1
)%
 
11,390

 
(4,541
)
 
(139.9
)%
Income before taxes
27,011

 
34,560

 
27.9
 %
 
64,474

 
71,793

 
11.4
 %
Provision for income taxes
(4,118
)
 
4,378

 
(206.3
)%
 
(17,578
)
 
(9,517
)
 
(45.9
)%
Net income
$
22,893

 
$
38,938

 
70.1
 %
 
$
46,896

 
$
62,276

 
32.8
 %
 - Net income available to shareholders of Criteo S.A.
$
22,396

 
$
37,936

 
 
 
$
45,556

 
$
59,553

 
 
 - Net income available to non-controlling interests
$
497

 
$
1,002

 
 
 
$
1,340

 
$
2,723

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares outstanding
 
 
 
 
 
 
 
 
 
 
 
 - Basic
60,519,987

 
62,348,620

 
 
 
58,928,563

 
61,835,499

 
 
 - Diluted
63,854,664

 
65,092,423

 
 
 
62,493,260

 
65,096,487

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income allocated to shareholders per share
 
 
 
 
 
 
 
 
 
 
 
 - Basic
$
0.37

 
$
0.61

 
 
 
$
0.77

 
$
0.96

 
 
 - Diluted
$
0.35

 
$
0.58

 
 
 
$
0.73

 
$
0.91

 
 

19


CRITEO S.A.
U.S. GAAP Consolidated Statement of Cash Flows
(U.S. dollars in thousands)
(unaudited)

 
 
Three Months Ended
 
Twelve Months Ended
 
 
December 31,
 
December 31,
 
 
2014

 
2015

 
2014

 
2015

Net income
 
$
22,893

 
$
38,938

 
$
46,896

 
$
62,275

Non-cash and non-operating items
 
20,689

 
15,764

 
71,544

 
78,448

                 - Amortization and provisions
 
9,687

 
14,648

 
33,365

 
47,085

                 - Share-based payment expense
 
6,142

 
7,748

 
19,600

 
23,989

                 - Net gain or loss on disposal of non-current assets
 
146

 
(2,212
)
 
141

 
(2,127
)
                 - Interest paid
 
6

 
(3
)
 
23

 
6

                 - Non-cash financial income and expenses
 
590

 
5

 
838

 
22

                 - Change in deferred taxes
 
(6,081
)
 
(12,599
)
 
(5,315
)
 
(15,748
)
                 - Income tax for the period
 
10,199

 
8,177

 
22,892

 
25,221

Changes in working capital related to operating activities
 
16,495

 
17,572

 
4,661

 
15,231

                 - (Increase)/decrease in trade receivables
 
(34,551
)
 
(55,986
)
 
(83,646
)
 
(83,420
)
                 - Increase/(decrease) in trade payables
 
37,354

 
60,529

 
70,557

 
100,047

                 - (Increase)/decrease in other current assets
 
934

 
563

 
(7,986
)
 
(24,101
)
                 - Increase/(decrease) in other current liabilities
 
12,759

 
12,466

 
25,736

 
22,705

Income taxes paid
 
(8,909
)
 
(5,568
)
 
(6,820
)
 
(18,805
)
CASH FROM OPERATING ACTIVITIES
 
51,169

 
66,706

 
116,281

 
137,149

Acquisition of intangible assets, property, plant and equipment
 
(14,142
)
 
(13,086
)
 
(48,643
)
 
(75,617
)
Proceeds from disposal of intangible assets, property, plant and equipment
 
(15
)
 
150

 
52

 
10

Net change in accounts payable related to intangible assets, property, plant and equipment
 
1,596

 
(6,269
)
 
1,705

 
1,128

FREE CASH FLOW
 
38,608

 
47,501

 
69,395

 
62,670

Investments, net of cash acquired
 
(707
)
 
10

 
(26,103
)
 
(20,542
)
Change in other non-current financial assets
 
(658
)
 
(320
)
 
(2,292
)
 
(6,612
)
CASH USED FOR INVESTING ACTIVITIES
 
(13,926
)
 
(19,515
)
 
(75,281
)
 
(101,633
)
Issuance of long-term borrowings
 
1,493

 
788

 
5,628

 
3,971

Repayment of borrowings
 
(1,483
)
 
(2,776
)
 
(6,502
)
 
(8,974
)
Interests paid
 
(6
)
 
(21
)
 
(23
)
 
47

Proceeds from capital increase
 
4,386

 
3,758

 
31,638

 
13,768

Change in other financial liabilities
 
59

 
—

 
272

 
(1,000
)
CASH FROM FINANCING ACTIVITIES
 
4,448

 
1,749

 
31,013

 
7,812

 
 
 
 
 
 
 
 
 
CHANGE IN NET CASH AND CASH EQUIVALENTS
 
41,691

 
48,940

 
72,013

 
43,328

Net cash and cash equivalents at beginning of period
 
323,029

 
314,644

 
323,181

 
351,827

Effect of exchange rates changes on cash and cash equivalents
 
(12,893
)
 
(10,047
)
 
(43,367
)
 
(41,618
)
Net cash and cash equivalents at end of period
 
$
351,827

 
$
353,537

 
$
351,827

 
$
353,537


20


CRITEO S.A.
U.S. GAAP Reconciliation of Revenue ex-TAC by Region to Revenue by Region
(U.S. dollars in thousands)
(unaudited)

 
 
 
Three Months Ended
 
 
 
 
 
 
 
 
Twelve Months Ended
 
 
 
 
 
 
 
December 31,
 
 
 
 
 
 
 
 
December 31,
 
 
 
 
 
Region
 
2014

 
2015

 
YoY Change

 
YoY Change at Constant Currency (*)

 
 
Region
 
2014

 
2015

 
YoY Change

 
YoY Change at Constant Currency (*)

Revenue
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
 
Americas
 
$
109,543

 
$
170,133

 
55
%
 
61
%
 
 
Americas
 
$
303,436

 
$
505,653

 
67
%
 
74
%
 
EMEA
 
131,275

 
144,905

 
10
%
 
24
%
 
 
EMEA
 
485,986

 
541,105

 
11
%
 
31
%
 
Asia-Pacific
 
53,671

 
81,980

 
53
%
 
62
%
 
 
Asia-Pacific
 
198,827

 
276,411

 
39
%
 
56
%
 
Total
 
294,489

 
397,018

 
35
%
 
45
%
 
 
Total
 
988,249

 
1,323,169

 
34
%
 
49
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Traffic acquisition costs
 
 
 
Traffic acquisition costs
 
 
 
Americas
 
(66,773
)
 
(104,646
)
 
57
%
 
62
%
 
 
Americas
 
(184,245
)
 
(308,427
)
 
67
%
 
75
%
 
EMEA
 
(73,265
)
 
(82,905
)
 
13
%
 
27
%
 
 
EMEA
 
(280,242
)
 
(313,928
)
 
12
%
 
32
%
 
Asia-Pacific
 
(32,500
)
 
(49,505
)
 
52
%
 
62
%
 
 
Asia-Pacific
 
(121,005
)
 
(166,797
)
 
38
%
 
55
%
 
Total
 
(172,538
)
 
(237,056
)
 
37
%
 
47
%
 
 
Total
 
(585,492
)
 
(789,152
)
 
35
%
 
50
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue ex-TAC
 
 
 
 
 
 
 
Revenue ex-TAC
 
 
 
 
 
Americas
 
42,770

 
65,487

 
53
%
 
60
%
 
 
Americas
 
119,191

 
197,226

 
65
%
 
73
%
 
EMEA
 
58,010

 
62,000

 
7
%
 
20
%
 
 
EMEA
 
205,744

 
227,177

 
10
%
 
30
%
 
Asia-Pacific
 
21,171

 
32,475

 
53
%
 
63
%
 
 
Asia-Pacific
 
77,822

 
109,614

 
41
%
 
57
%
 
Total
 
$
121,951

 
$
159,962

 
31
%
 
41
%
 
 
Total
 
$
402,757

 
$
534,017

 
33
%
 
48
%

(*) Due to entries into the consolidation scope during the year ended December 31, 2015 and U.S. GAAP conversion adjustments, there are slight variances between the year-over-year change at constant currency as determined under IFRS and presented in euros and the year-over-year change at constant currency as determined under U.S. GAAP and presented in U.S dollars.


21


CRITEO S.A.
U.S. GAAP Reconciliation of Adjusted EBITDA to Net Income
(U.S. dollars in thousands)
(unaudited)

 
 
Three Months Ended
 
Twelve Months Ended
 
 
December 31,
 
December 31,
 
 
2014

 
2015

 
2014

 
2015

Net income
 
$
22,893

 
$
38,938

 
$
46,896

 
$
62,276

Adjustments:
 
 
 
 
 
 
 
 
Financial (income) expense
 
(1,473
)
 
(735
)
 
(11,390
)
 
4,541

Provision (benefit) for income taxes
 
4,118

 
(4,378
)
 
17,578

 
9,517

Share-based compensation expense
 
6,143

 
7,748

 
19,601

 
23,989

Research and development
 
870

 
2,167

 
3,682

 
6,520

Sales and operations
 
3,553

 
3,606

 
12,291

 
11,678

General and administrative
 
1,720

 
1,975

 
3,628

 
5,791

Service cost-pension
 
129

 
109

 
504

 
441

Research and development
 
38

 
40

 
167

 
163

Sales and operations
 
45

 
38

 
187

 
153

General and administrative
 
46

 
31

 
150

 
125

Depreciation and amortization expense
 
9,000

 
13,967

 
31,213

 
44,564

Cost of revenue
 
6,332

 
8,579

 
21,455

 
29,866

Research and development
 
1,261

 
3,183

 
4,949

 
7,994

Sales and operations
 
1,080

 
1,744

 
3,664

 
5,178

General and administrative
 
327

 
461

 
1,145

 
1,526

Acquisition-related deferred price consideration
 
110

 
(2,172
)
 
950

 
(1,894
)
Research and development
 
110

 
46

 
950

 
324

Sales and operations
 
—

 
—

 
—

 
—

General and administrative
 
—

 
(2,218
)
 
—

 
(2,218
)
Total net adjustments
 
18,027

 
14,539

 
58,456

 
81,158

Adjusted EBITDA
 
$
40,920

 
$
53,477

 
$
105,352

 
$
143,434


22


CRITEO S.A.
U.S. GAAP Detailed Information on Selected Items
(U.S. dollars in thousands)
(unaudited)

 
 
Three Months Ended
 
Twelve Months Ended
 
 
December 31,
 
December 31,
 
 
2014

 
2015

 
2014

 
2015

Share-Based Compensation Expense
 
 
 
 
 
 
 
 
Research and development
 
$
870

 
$
2,167

 
$
3,682

 
$
6,520

Sales and operations
 
3,553

 
3,606

 
12,291

 
11,678

General and administrative
 
1,720

 
1,975

 
3,628

 
5,791

Total Share-Based Compensation Expense
 
6,143

 
7,748

 
19,601

 
23,989

 
 
 
 
 
 
 
 
 
Service cost-pension
 
 
 
 
 
 
 
 
Research and development
 
38

 
40

 
167

 
163

Sales and operations
 
45

 
38

 
187

 
153

General and administrative
 
46

 
31

 
150

 
125

Total Service cost-pension
 
129

 
109

 
504

 
441

 
 
 
 
 
 
 
 
 
Depreciation and Amortization Expense
 
 
 
 
 
 
 
 
Cost of revenue
 
6,332

 
8,579

 
21,455

 
29,866

Research and development
 
1,261

 
3,183

 
4,949

 
7,994

Sales and operations
 
1,080

 
1,744

 
3,664

 
5,178

General and administrative
 
327

 
461

 
1,145

 
1,526

Total Depreciation and Amortization Expense
 
9,000

 
13,967

 
31,213

 
44,564

 
 
 
 
 
 
 
 
 
Acquisition-Related Deferred Price Consideration
 
 
 
 
 
 
 
 
Research and development
 
110

 
46

 
950

 
324

Sales and operations
 
—

 
—

 
—

 
—

General and administrative
 
—

 
(2,218
)
 
—

 
(2,218
)
Total Acquisition-Related Deferred Price Consideration
 
$
110

 
$
(2,172
)
 
$
950

 
$
(1,894
)

23


CRITEO S.A.
U.S. GAAP Reconciliation of Adjusted Net Income to Net Income
(U.S. dollars in thousands)
(unaudited)

 
 
Three Months Ended
 
Twelve Months Ended
 
 
December 31,
 
December 31,
 
 
2014

 
2015

 
2014

 
2015

 
 
 
 
 
 
 
 
 
Net income
 
$
22,893

 
$
38,938

 
$
46,896

 
$
62,276

Adjustments:
 
 
 
 
 
 
 
 
Share-based compensation expense
 
6,142

 
7,748

 
19,601

 
23,989

Amortization of acquisition-related intangible assets
 
1,056

 
2,548

 
3,902

 
6,342

Acquisition-related deferred price consideration
 
110

 
(2,172
)
 
950

 
(1,894
)
Tax impact of the above adjustments
 
(31
)
 
(47
)
 
(503
)
 
(878
)
Total net adjustments
 
7,277

 
8,077

 
23,950

 
27,559

Adjusted net income
 
$
30,170

 
$
47,015

 
$
70,846

 
$
89,835

 
 
 
 
 
 
 
 
 
Weighted average shares outstanding
 
 
 
 
 
 
 
 
 - Basic
 
60,519,987

 
62,348,620

 
58,928,563

 
61,835,499

 - Diluted
 
63,854,664

 
65,092,423

 
62,493,260

 
65,096,487

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted net income per share
 
 
 
 
 
 
 
 
 - Basic
 
$
0.50

 
$
0.75

 
$
1.20

 
$
1.45

 - Diluted
 
$
0.47

 
$
0.72

 
$
1.13

 
$
1.38


24


CRITEO S.A.
U.S. GAAP Constant Currency Reconciliation
(U.S. dollars in thousands)
(unaudited)

 
 
Three Months Ended
 
 
 
Twelve Months Ended
 
 
 
 
December 31,
 
 
 
December 31,
 
 
 
 
2014

 
2015

 
YoY Change

 
2014

 
2015

 
YoY Change

Revenue as reported
 
$
294,489

 
$
397,018

 
35
%
 
$
988,249

 
$
1,323,169

 
34
%
Conversion impact U.S. dollar/other currencies
 
 
 
29,663

 
 
 
 
 
152,061

 
 
Revenue at constant currency (*)
 
294,489

 
426,681

 
45
%
 
988,249

 
1,475,230

 
49
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Traffic acquisition costs as reported
 
(172,538
)
 
(237,056
)
 
37
%
 
(585,492
)
 
(789,152
)
 
35
%
Conversion impact U.S. dollar/other currencies
 
 
 
(17,140
)
 
 
 
 
 
(90,002
)
 
 
Traffic Acquisition Costs at constant currency (*)
 
(172,538
)
 
(254,196
)
 
47
%
 
(585,492
)
 
(879,154
)
 
50
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue ex-TAC as reported
 
121,951

 
159,962

 
31
%
 
402,757

 
534,017

 
33
%
Conversion impact U.S. dollar/other currencies
 
 
 
12,523

 
 
 
 
 
62,059

 
 
Revenue ex-TAC at constant currency (*)
 
121,951

 
172,485

 
41
%
 
402,757

 
596,076

 
48
%
Revenue ex-TAC/Revenue as reported
 
41.4
%
 
40.3
%
 
 
 
40.8
%
 
40.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other cost of revenue as reported
 
(13,962
)
 
(17,782
)
 
27
%
 
(47,948
)
 
(62,201
)
 
30
%
Conversion impact U.S. dollar/other currencies
 
 
 
(777
)
 
 
 
 
 
(4,589
)
 
 
Other cost of revenue at constant currency (*)
 
(13,962
)
 
(18,559
)
 
33
%
 
(47,948
)
 
(66,790
)
 
39
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA
 
40,920

 
53,477

 
31
%
 
105,352

 
143,434

 
36
%
Conversion impact U.S. dollar/other currencies
 
 
 
6,513

 
 
 
 
 
24,302

 
 
Adjusted EBITDA at constant currency (*)
 
40,920

 
59,990

 
47
%
 
105,352

 
167,736

 
59
%

(*) Due to entries into the consolidation scope during the year ended December 31, 2015 and U.S. GAAP conversion adjustments, there are slight variances between the year-over-year change at constant currency as determined under IFRS and presented in euros and the year-over-year change at constant currency as determined under U.S. GAAP and presented in U.S dollars.


25


CRITEO S.A.
U.S. GAAP - Information on Share Count
(unaudited)

 
 
2014

 
2015

Shares outstanding as at January 1,
 
56,856,070

 
60,902,695

Weighted average number of shares issued during the period
 
2,072,493

 
932,804

Basic number of shares - Basic EPS basis
 
58,928,563

 
61,835,499

Dilutive effect of share options, warrants, employee warrants - Treasury method
 
3,717,153

 
3,260,988

Diluted number of shares - Diluted EPS basis
 
62,645,716

 
65,096,487

 
 
 
 
 
Shares outstanding as at December 31,
 
60,902,695

 
62,470,881

Total dilutive effect of share options, warrants, employee warrants
 
7,555,249

 
7,798,348

Fully diluted shares as at December 31,
 
68,457,944

 
70,269,229


26


RECONCILIATION OF CRITEO S.A. FINANCIAL STATEMENTS
FROM IFRS/EURO to U.S. GAAP/U.S. DOLLARS

CRITEO S.A.
Consolidated Statement of Income
Reconciliation from IFRS to U.S. GAAP
(in thousands, except per share data)
(unaudited)

 
Three Months Ended December 31, 2014
 
IFRS
(Euro)

 
Adjustments from
IFRS to U.S.GAAP
(Euro)

 
U.S. GAAP
(Euro)

 
U.S. GAAP
(U.S. Dollar)

Revenue
€
232,796

 
€
—

 
€
232,796

 
$
294,489

 
 
 
 
 
 
 
 
Cost of revenue
 
 
 
 
 
 
 
Traffic acquisition costs
(136,493
)
 
—

 
(136,493
)
 
(172,538
)
Other cost of revenue
(11,054
)
 
—

 
(11,054
)
 
(13,962
)
 
 
 
 
 
 
 
 
Gross Profit
85,249

 
—

 
85,249

 
107,989

 
 
 
 
 
 
 
 
Research and development expenses
(12,191
)
 
—

 
(12,191
)
 
(15,247
)
Sales and operations expenses
(39,668
)
 
—

 
(39,668
)
 
(50,002
)
General and administrative expenses
(13,698
)
 
(9
)
 
(13,707
)
 
(17,202
)
Total operating expenses
(65,557
)
 
(9
)
 
(65,566
)
 
(82,451
)
 
 
 
 
 
 
 
 
Income from operations
19,692

 
(9
)
 
19,683

 
25,538

Financial income
1,264

 
—

 
1,264

 
1,473

Income before taxes
20,956

 
(9
)
 
20,947

 
27,011

Provision for income taxes
(3,313
)
 
—

 
(3,313
)
 
(4,118
)
Net income
€
17,643

 
€
(9
)
 
€
17,634

 
$
22,893

 - Net income available to shareholders of Criteo S.A.
€
17,256

 
€
(9
)
 
€
17,247

 
$
22,396

 - Net income available to non-controlling interests
€
387

 
€
—

 
€
387

 
$
497

 
 
 
 
 
 
 
 
Weighted average shares outstanding
 
 
 
 
 
 
 
 - Basic
60,519,987

 
 
 
60,519,987

 
60,519,987

 - Diluted
63,854,664

 
 
 
63,854,664

 
63,854,664

 
 
 
 
 
 
 
 
Net income allocated to shareholders per share
 
 
 
 
 
 
 
 - Basic
€
0.29

 
 
 
€
0.28

 
$
0.37

 - Diluted
€
0.27

 
 
 
€
0.27

 
$
0.35






27


CRITEO S.A.
Consolidated Statement of Income
Reconciliation from IFRS to U.S. GAAP
(in thousands except per share data)
(unaudited)

 
Twelve Months Ended December 31, 2014
 
IFRS
(Euro)

 
Adjustments from
IFRS to U.S.GAAP
(Euro)

 
U.S. GAAP
(Euro)

 
U.S. GAAP
(U.S. Dollar)

Revenue
€
745,081

 
€
—

 
€
745,081

 
$
988,249

 
 
 
 
 
 
 
 
Cost of revenue
 
 
 
 
 
 
 
Traffic acquisition costs
(441,427
)
 
—

 
(441,427
)
 
(585,492
)
Other cost of revenue
(36,150
)
 
—

 
(36,150
)
 
(47,948
)
 
 
 
 
 
 
 
 
Gross Profit
267,504

 
—

 
267,504

 
354,809

 
 
 
 
 
 
 
 
Research and development expenses
(45,293
)
 
—

 
(45,293
)
 
(60,075
)
Sales and operations expenses
(133,393
)
 
—

 
(133,393
)
 
(176,927
)
General and administrative expenses
(48,788
)
 
(9
)
 
(48,797
)
 
(64,723
)
Total operating expenses
(227,474
)
 
(9
)
 
(227,483
)
 
(301,725
)
 
 
 
 
 
 
 
 
Income from operations
40,030

 
(9
)
 
40,021

 
53,084

Financial income
8,587

 
—

 
8,587

 
11,390

Income before taxes
48,617

 
(9
)
 
48,608

 
64,474

Provision for income taxes
(13,253
)
 
—

 
(13,253
)
 
(17,578
)
Net income
€
35,364

 
€
(9
)
 
€
35,355

 
$
46,896

 - Net income available to shareholders of Criteo S.A.
€
34,354

 
€
(9
)
 
€
34,345

 
$
45,556

 - Net income available to non-controlling interests
€
1,010

 
€
—

 
€
1,010

 
$
1,340

 
 
 
 
 
 
 
 
Weighted average shares outstanding
 
 
 
 
 
 
 
 - Basic
58,928,563

 
 
 
58,928,563

 
58,928,563

 - Diluted
62,065,699

 
 
 
62,493,260

 
62,493,260

 
 
 
 
 
 
 
 
Net income allocated to shareholders per share
 
 
 
 
 
 
 
 - Basic
€
0.58

 
 
 
€
0.58

 
$
0.77

 - Diluted
€
0.55

 
 
 
€
0.55

 
$
0.73










28


CRITEO S.A.
Consolidated Statement of Income
Reconciliation from IFRS to U.S. GAAP
(in thousands except per share data)
(unaudited)

 
Three Months Ended December 31, 2015
 
IFRS
(Euro)

 
 Adjustments from
IFRS to U.S.GAAP
(Euro)

 
U.S. GAAP
(Euro)

 
U.S. GAAP
(U.S. Dollar)

Revenue
€
361,732

 
€
—

 
€
361,732

 
$
397,018

 
 
 
 
 
 
 
 
Cost of revenue
 
 
 
 
 
 
 
Traffic acquisition costs
(215,980
)
 
—

 
(215,980
)
 
(237,056
)
Other cost of revenue
(16,213
)
 
—

 
(16,213
)
 
(17,782
)
 
 
 
 
 
 
 
 
Gross Profit
129,539

 
—

 
129,539

 
142,180

 
 
 
 
 
 
 
 
Research and development expenses
(24,215
)
 
(55
)
 
(24,270
)
 
(26,665
)
Sales and operations expenses
(54,953
)
 
(187
)
 
(55,140
)
 
(60,410
)
General and administrative expenses
(19,386
)
 
(34
)
 
(19,420
)
 
(21,280
)
Total operating expenses
(98,554
)
 
(276
)
 
(98,830
)
 
(108,355
)
 
 
 
 
 
 
 
 
Income from operations
30,985

 
(276
)
 
30,709

 
33,825

Financial income
644

 
—

 
644

 
735

Income before taxes
31,629

 
(276
)
 
31,353

 
34,560

Provision for income taxes
3,861

 
45

 
3,906

 
4,378

Net income
€
35,490

 
€
(231
)
 
€
35,259

 
$
38,938

 - Net income available to shareholders of Criteo S.A.
€
34,580

 
€
(231
)
 
€
34,349

 
$
37,936

 - Net income available to non-controlling interests
€
910

 
€
—

 
€
910

 
$
1,002

 
 
 
 
 
 
 
 
Weighted average shares outstanding
 
 
 
 
 
 
 
 - Basic
62,348,620

 
 
 
62,348,620

 
62,348,620

 - Diluted
65,092,423

 
 
 
65,092,423

 
65,092,423

 
 
 
 
 
 
 
 
Net income allocated to shareholders per share
 
 
 
 
 
 
 
 - Basic
€
0.55

 
 
 
€
0.55

 
$
0.61

 - Diluted
€
0.53

 
 
 
€
0.53

 
$
0.58











29


CRITEO S.A.
Consolidated Statement of Income
Reconciliation from IFRS to U.S. GAAP
(in thousands except per share data)
(unaudited)

 
Twelve Months Ended December 31, 2015
 
IFRS
(Euro)

 
Adjustments from
IFRS to U.S.GAAP
(Euro)

 
U.S. GAAP
(Euro)

 
U.S. GAAP
(U.S. Dollar)

Revenue
€
1,193,414

 
€
—

 
€
1,193,414

 
$
1,323,169

 
 
 
 
 
 
 
 
Cost of revenue
 
 
 
 
 
 
 
Traffic acquisition costs
(711,755
)
 
—

 
(711,755
)
 
(789,152
)
Other cost of revenue
(56,100
)
 
—

 
(56,100
)
 
(62,201
)
 
 
 
 
 
 
 
 
Gross Profit
425,559

 
—

 
425,559

 
471,816

 
 
 
 
 
 
 
 
Research and development expenses
(78,313
)
 
—

 
(78,313
)
 
(86,807
)
Sales and operations expenses
(206,325
)
 
(715
)
 
(207,040
)
 
(229,530
)
General and administrative expenses
(71,386
)
 
—

 
(71,386
)
 
(79,145
)
Total operating expenses
(356,024
)
 
(715
)
 
(356,739
)
 
(395,482
)
 
 
 
 
 
 
 


Income from operations
69,535

 
(715
)
 
68,820

 
76,334

Financial income (expense)
(4,094
)
 
—

 
(4,094
)
 
(4,541
)
Income before taxes
65,441

 
(715
)
 
64,726

 
71,793

Provision for income taxes
(8,689
)
 
118

 
(8,571
)
 
(9,517
)
Net income
€
56,752

 
€
(597
)
 
€
56,155

 
$
62,276

 - Net income available to shareholders of Criteo S.A.
€
54,296

 
€
(597
)
 
€
53,699

 
$
59,553

 - Net income available to non-controlling interests
€
2,456

 
€
—

 
€
2,456

 
$
2,723

 
 
 
 
 
 
 
 
Weighted average shares outstanding
 
 
 
 
 
 
 
 - Basic
61,835,499

 
 
 
61,835,499

 
61,835,499

 - Diluted
64,775,108

 
 
 
65,096,487

 
65,096,487

 
 
 
 
 
 
 
 
Net income allocated to shareholders per share
 
 
 
 
 
 
 
 - Basic
€
0.88

 
 
 
€
0.87

 
$
0.96

 - Diluted
€
0.84

 
 
 
€
0.82

 
$
0.91









30


CRITEO S.A.
Consolidated Statement of Financial Position
Reconciliation from IFRS to U.S. GAAP
(in thousands)
(unaudited)

December 31, 2014
 IFRS Presentation
 
IFRS
(Euro)

 
 U.S. GAAP Presentation
 
IFRS
(Euro)

 
Adjustments from
IFRS to U.S.GAAP
(Euro)

 
U.S. GAAP
(Euro)

 
U.S. GAAP
(U.S. Dollar)

Goodwill
 
€
22,944

 
Cash and cash equivalents
 
€
289,784

 
 
 
€
289,784

 
$
351,827

Intangible assets
 
10,560

 
Trade receivables, net of allowances
 
158,633

 
 
 
158,633

 
192,595

Property, plant and equipment
 
43,027

 
Current tax assets
 
2,883

 
 
 
2,883

 
3,493

Non-current financial assets
 
9,494

 
Other current assets
 
21,021

 
 
 
21,021

 
25,517

Deferred tax assets
 
7,113

 
TOTAL CURRENT ASSETS
 
472,321

 
 
 
472,321

 
573,432

TOTAL NON-CURRENT ASSETS
 
93,138

 
Property, plant and equipment
 
43,027

 
 
 
43,027

 
52,239

Trade receivables
 
158,633

 
Intangible assets
 
10,560

 
 
 
10,560

 
12,821

Current tax assets
 
2,883

 
Goodwill
 
22,944

 
 
 
22,944

 
27,856

Other current assets
 
21,021

 
Non-current financial assets
 
9,494

 
 
 
9,494

 
11,527

Cash and cash equivalents
 
289,784

 
Deferred tax assets
 
7,113

 
 
 
7,113

 
8,635

TOTAL CURRENT ASSETS
 
472,321

 
TOTAL NON-CURRENT ASSETS

 
93,138

 
 
 
93,138

 
113,078

TOTAL ASSETS
 
565,459

 
TOTAL ASSETS
 
565,459

 
 
 
565,459

 
686,510

 
 
 
 
 
 
 
 
 
 


 
 
Share capital
 
1,523

 
Trade payables
 
135,557

 
 
 
135,557

 
164,579

Additional paid-in capital
 
265,522

 
Provisions
 
1,131

 
 
 
1,131

 
1,373

Currency translation adjustment
 
4,804

 
Current tax liabilities
 
7,969

 
 
 
7,969

 
9,676

Consolidated reserves
 
35,302

 
Financial liabilities - current portion
 
7,841

 
 
 
7,841

 
9,520

Retained earnings
 
34,354

 
Other current liabilities
 
63,720

 
 
 
63,720

 
77,362

Equity - attributable to shareholders of Criteo S.A.
 
341,505

 
TOTAL CURRENT LIABILITIES
 
216,218

 
 
 
216,218

 
262,510

Non-controlling interests
 
1,433

 
Deferred tax liabilities
 
946

 
 
 
946

 
1,142

TOTAL EQUITY
 
342,938

 
Retirement benefit obligation
 
1,024

 
 
 
1,024

 
1,243

Financial liabilities - non-current portion
 
4,333

 
Financial liabilities - non-current portion
 
4,333

 
 
 
4,333

 
5,260

Retirement benefit obligation
 
1,024

 
TOTAL NON-CURRENT LIABILITIES
 
6,303

 
 
 
6,303

 
7,645

Deferred tax liabilities
 
946

 
TOTAL LIABILITIES
 
222,521

 
 
 
222,521

 
270,155

TOTAL NON-CURRENT LIABILITIES
 
6,303

 
Common stock
 
1,523

 
 
 
1,523

 
2,008

Financial liabilities - current portion
 
7,841

 
Additional paid-in capital
 
265,522

 
27,123

 
292,645

 
387,972

Provisions
 
1,131

 
Currency translation adjustment
 
4,804

 
(4,804
)
 
—

 
—

Trade payables
 
135,557

 
Consolidated reserves
 
35,302

 
(35,302
)
 
—

 
—

Current tax liabilities
 
7,969

 
Retained earnings
 
34,354

 
8,229

 
42,583

 
56,680

Other current liabilities
 
63,720

 
Accumulated other comprehensive income (loss)
 
—

 
4,754

 
4,754

 
(32,045
)
TOTAL CURRENT LIABILITIES
 
216,218

 
Equity - attributable to shareholders of Criteo S.A.
 
341,505

 
—

 
341,505

 
414,615

TOTAL LIABILITIES
 
222,521

 
Non-controlling interests
 
1,433

 
 
 
1,433

 
1,740

TOTAL EQUITY AND LIABILITIES
 
€
565,459

 
TOTAL EQUITY
 
342,938

 
—

 
342,938

 
416,355

 
 
 
 
TOTAL EQUITY AND LIABILITIES
 
€
565,459

 
€
—

 
€
565,459

 
$
686,510


31


CRITEO S.A.
Consolidated Statement of Financial Position
Reconciliation from IFRS to U.S. GAAP
(in thousands)
(unaudited)

December 31, 2015
 IFRS Presentation
 
IFRS
(Euro)

 
 U.S. GAAP Presentation
 
IFRS
(Euro)

 
Adjustments from
IFRS to U.S.GAAP
(Euro)

 
U.S. GAAP
(Euro)

 
U.S. GAAP
(U.S. Dollar)

Goodwill
 
€
38,553

 
Cash and cash equivalents
 
€
324,733

 
 
 
€
324,733

 
$
353,537

Intangible assets
 
15,126

 
Trade receivables, net of allowances
 
240,264

 
 
 
240,264

 
261,581

Property, plant and equipment
 
75,762

 
Current tax assets
 
2,500

 
 
 
2,500

 
2,714

Non-current financial assets
 
15,784

 
Other current assets
 
41,944

 
 
 
41,944

 
45,582

Deferred tax assets
 
18,432

 
TOTAL CURRENT ASSETS
 
609,441

 


 
609,441

 
663,414

TOTAL NON-CURRENT ASSETS
 
163,657

 
Property, plant and equipment
 
75,762

 
 
 
75,762

 
82,482

Trade receivables
 
240,264

 
Intangible assets
 
15,126

 
 
 
15,126

 
16,470

Current tax assets
 
2,500

 
Goodwill
 
38,553

 
 
 
38,553

 
41,973

Other current assets
 
41,944

 
Non-current financial assets
 
15,784

 
 
 
15,784

 
17,184

Cash and cash equivalents
 
324,733

 
Deferred tax assets
 
18,432

 
118

 
18,550

 
20,196

TOTAL CURRENT ASSETS
 
609,441

 
TOTAL NON-CURRENT ASSETS

 
163,657

 
118

 
163,775

 
178,305

TOTAL ASSETS
 
773,098

 
TOTAL ASSETS
 
773,098

 
118

 
773,216

 
841,719

 
 


 
 
 
 
 
 
 


 
 
Share capital
 
1,562

 
Trade payables
 
226,304

 
 
 
226,304

 
246,382

Additional paid-in capital
 
277,901

 
Provisions
 
614

 
 
 
614

 
668

Currency translation adjustment
 
11,598

 
Current tax liabilities
 
14,113

 
 
 
14,113

 
15,365

Consolidated reserves
 
90,997

 
Financial liabilities - current portion
 
6,573

 
 
 
6,573

 
7,156

Retained earnings
 
54,296

 
Other current liabilities
 
80,361

 
715

 
81,076

 
88,269

Equity - attributable to shareholders of Criteo S.A.
 
436,354

 
TOTAL CURRENT LIABILITIES
 
327,965

 
715

 
328,680

 
357,840

Non-controlling interests
 
4,315

 
Deferred tax liabilities
 
132

 
 
 
132

 
139

TOTAL EQUITY
 
440,669

 
Retirement benefit obligation
 
1,327

 
 
 
1,327

 
1,445

Financial liabilities - non-current portion
 
3,005

 
Financial liabilities - non-current portion
 
3,005

 
 
 
3,005

 
3,272

Retirement benefit obligation
 
1,327

 
TOTAL NON-CURRENT LIABILITIES
 
4,464

 
—

 
4,464

 
4,856

Deferred tax liabilities
 
132

 
TOTAL LIABILITIES
 
332,429

 
715

 
333,144

 
362,696

TOTAL NON-CURRENT LIABILITIES
 
4,464

 
Common stock
 
1,562

 
 
 
1,562

 
2,052

Financial liabilities - current portion
 
6,573

 
Additional paid-in capital
 
277,901

 
48,558

 
326,459

 
425,220

Provisions
 
614

 
Currency translation reserve
 
11,598

 
(11,598
)
 
—

 
—

Trade payables
 
226,304

 
Consolidated reserves
 
90,997

 
(90,997
)
 
—

 
—

Current tax liabilities
 
14,113

 
Retained earnings
 
54,296

 
41,861

 
96,157

 
116,278

Other current liabilities
 
80,361

 
Accumulated other comprehensive income (loss)
 
—

 
11,579

 
11,579

 
(69,225
)
TOTAL CURRENT LIABILITIES
 
327,965

 
Equity - attributable to shareholders of Criteo S.A.
 
436,354

 
(597
)
 
435,757

 
474,325

TOTAL LIABILITIES
 
332,429

 
Non-controlling interests
 
4,315

 
 
 
4,315

 
4,698

TOTAL EQUITY AND LIABILITIES
 
€
773,098

 
TOTAL EQUITY
 
440,669

 
(597
)
 
440,072

 
479,023

 
 
 
 
TOTAL EQUITY AND LIABILITIES

 
€
773,098

 
€
118

 
€
773,216

 
$
841,719


32


CRITEO S.A.
Consolidated Statement of Cash Flows
Reconciliation from IFRS to U.S. GAAP
(in thousands)
(unaudited)

 
Three Months Ended December 31, 2014
 
IFRS
(Euro)

 
Adjustments from
IFRS to U.S.GAAP
(Euro)


 
U.S. GAAP
(Euro)

 
U.S. GAAP
(U.S. Dollar)

Net income
€
17,643

 
€
(9
)
 
€
17,634

 
$
22,893

Non-cash and non-operating items
16,379

 
9

 
16,388

 
20,689

                 - Amortization and provisions
7,662

 
9

 
7,671

 
9,687

                 - Share-based payment expense
4,840

 
 
 
4,840

 
6,142

                 - Net gain or loss on disposal of non-current assets
110

 
 
 
110

 
146

                 - Interest paid
5

 
 
 
5

 
6

                 - Non-cash financial income and expenses
449

 
 
 
449

 
590

                 - Change in deferred taxes
(4,573
)
 
 
 
(4,573
)
 
(6,081
)
                 - Income tax for the period
7,886

 
 
 
7,886

 
10,199

Changes in working capital related to operating activities
12,252

 
—

 
12,252

 
16,495

                 - (Increase)/decrease in trade receivables
(26,812
)
 
 
 
(26,812
)
 
(34,551
)
                 - Increase/(decrease) in trade payables
28,678

 
 
 
28,678

 
37,354

                 - (Increase)/decrease in other current assets
565

 
 
 
565

 
934

                 - Increase/(decrease) in other current liabilities
9,821

 
 
 
9,821

 
12,759

Income taxes paid
(6,684
)
 
 
 
(6,684
)
 
(8,909
)
CASH FROM OPERATING ACTIVITIES
39,590

 
—

 
39,590

 
51,169

Acquisition of intangible assets, property, plant and equipment
(9,993
)
 
(1,204
)
 
(11,197
)
 
(14,142
)
Proceeds from disposal of intangible assets, property, plant and equipment
(10
)
 
—

 
(10
)
 
(15
)
Net change in accounts payable related to intangible assets, property, plant and equipment
—

 
1,204

 
1,204

 
1,596

FREE CASH FLOW
29,587

 
—

 
29,587

 
38,608

Investments
—

 
 
 
—

 
(707
)
Change in other non-current financial assets
(521
)
 
 
 
(521
)
 
(658
)
CASH USED FOR INVESTING ACTIVITIES
(10,524
)
 
—

 
(10,524
)
 
(13,926
)
Issuance of long-term borrowings
1,189

 
 
 
1,189

 
1,493

Repayment of borrowings
(1,196
)
 
 
 
(1,196
)
 
(1,483
)
Interests paid
(5
)
 
 
 
(5
)
 
(6
)
Proceeds from capital increase
3,730

 
 
 
3,730

 
4,386

Change in other financial liabilities
48

 
 
 
48

 
59

CASH FROM FINANCING ACTIVITIES
3,766

 
—

 
3,766

 
4,448

 
 
 
 
 
 
 
 
CHANGE IN NET CASH AND CASH EQUIVALENTS
32,832

 
—

 
32,832

 
41,691

Net cash and cash equivalents at beginning of period
256,719

 
 
 
256,719

 
323,029

Effect of exchange rates changes on cash and cash equivalents
233

 
 
 
233

 
(12,893
)
Net cash and cash equivalents at end of period
€
289,784

 
€
—

 
€
289,784

 
$
351,827



33




CRITEO S.A.
Consolidated Statement of Cash Flows
Reconciliation from IFRS to U.S. GAAP
(in thousands)
(unaudited)

 
Twelve Months Ended December 31, 2014
 
IFRS
(Euro)

 
Adjustments from
IFRS to U.S.GAAP
(Euro)


 
U.S. GAAP
(Euro)

 
U.S. GAAP
(U.S. Dollar)

Net income
€
35,364

 
€
(9
)
 
€
35,355

 
$
46,896

Non-cash and non-operating items
53,931

 
9

 
53,940

 
71,544

                 - Amortization and provisions
25,146

 
9

 
25,155

 
33,365

                 - Share-based payment expense
14,778

 
 
 
14,778

 
19,600

                 - Net gain or loss on disposal of non-current assets
106

 
 
 
106

 
141

                 - Interest paid
17

 
 
 
17

 
23

                 - Non-cash financial income and expenses
632

 
 
 
632

 
838

                 - Change in deferred taxes
(4,007
)
 
 
 
(4,007
)
 
(5,315
)
                 - Income tax for the period
17,260

 
 
 
17,260

 
22,892

Changes in working capital related to operating activities
3,516

 
—

 
3,516

 
4,661

                 - (Increase)/decrease in trade receivables
(63,064
)
 
 
 
(63,064
)
 
(83,646
)
                 - Increase/(decrease) in trade payables
53,195

 
 
 
53,195

 
70,557

                 - (Increase)/decrease in other current assets
(6,021
)
 
 
 
(6,021
)
 
(7,986
)
                 - Increase/(decrease) in other current liabilities
19,406

 
 
 
19,406

 
25,736

Income taxes paid
(5,142
)
 
 
 
(5,142
)
 
(6,820
)
CASH FROM OPERATING ACTIVITIES
87,670

 
—

 
87,670

 
116,281

Acquisition of intangible assets, property, plant and equipment
(35,389
)
 
(1,285
)
 
(36,674
)
 
(48,643
)
Proceeds from disposal of intangible assets, property, plant and equipment
40

 
—

 
40

 
52

Net change in accounts payable related to intangible assets, property, plant and equipment
—

 
1,285

 
1,285

 
1,705

FREE CASH FLOW
52,321

 
—

 
52,321

 
69,395

Investments
(18,775
)
 
 
 
(18,775
)
 
(26,103
)
Change in other non-current financial assets
(1,728
)
 
 
 
(1,728
)
 
(2,292
)
CASH USED FOR INVESTING ACTIVITIES
(55,852
)
 
—

 
(55,852
)
 
(75,281
)
Issuance of long-term borrowings
4,243

 
 
 
4,243

 
5,628

Repayment of borrowings
(4,902
)
 
 
 
(4,902
)
 
(6,502
)
Interests paid
(17
)
 
 
 
(17
)
 
(23
)
Proceeds from capital increase
23,854

 
 
 
23,854

 
31,638

Change in other financial liabilities
205

 
 
 
205

 
272

CASH FROM FINANCING ACTIVITIES
23,383

 
—

 
23,383

 
31,013

 
 
 
 
 


 


CHANGE IN NET CASH AND CASH EQUIVALENTS
55,200

 
—

 
55,200

 
72,013

Net cash and cash equivalents at beginning of period
234,342

 
 
 
234,342

 
323,181

Effect of exchange rates changes on cash and cash equivalents
242

 
 
 
242

 
(43,367
)
Net cash and cash equivalents at end of period
€
289,784

 
€
—

 
€
289,784

 
$
351,827


34


CRITEO S.A.
Consolidated Statement of Cash Flows
Reconciliation from IFRS to U.S. GAAP
(in thousands)
(unaudited)

 
 
Three Months Ended December 31, 2015
 
 
IFRS
(Euro)

 
Adjustments from
IFRS to U.S.GAAP
(Euro)


 
U.S. GAAP
(Euro)

 
U.S. GAAP
(U.S. Dollar)

Net income
 
€
35,490

 
€
(231
)
 
€
35,259

 
$
38,938

Non-cash and non-operating items
 
14,489

 
(45
)
 
14,444

 
15,764

                 - Amortization and provisions
 
13,335

 
 
 
13,335

 
14,648

                 - Share-based payment expense
 
7,047

 
 
 
7,047

 
7,748

                 - Net gain or loss on disposal of non-current assets
 
(1,994
)
 
 
 
(1,994
)
 
(2,212
)
                 - Interest paid
 
(3
)
 
 
 
(3
)
 
(3
)
                 - Non-cash financial income and expenses
 
5

 
 
 
5

 
5

                 - Change in deferred taxes
 
(11,343
)
 
(45
)
 
(11,388
)
 
(12,599
)
                 - Income tax for the period
 
7,442

 
 
 
7,442

 
8,177

Changes in working capital related to operating activities
 
15,543

 
276

 
15,819

 
17,572

                 - (Increase)/decrease in trade receivables
 
(50,604
)
 
 
 
(50,604
)
 
(55,986
)
                 - Increase/(decrease) in trade payables
 
54,735

 
 
 
54,735

 
60,529

                 - (Increase)/decrease in other current assets
 
412

 
 
 
412

 
563

                 - Increase/(decrease) in other current liabilities
 
11,000

 
276

 
11,276

 
12,466

Income taxes paid
 
(5,074
)
 
 
 
(5,074
)
 
(5,568
)
CASH FROM OPERATING ACTIVITIES
 
60,448

 
—

 
60,448

 
66,706

Acquisition of intangible assets, property, plant and equipment
 
(17,580
)
 
6,162

 
(11,418
)
 
(13,086
)
Proceeds from disposal of intangible assets, property, plant and equipment
 
8

 
—

 
8

 
150

Net change in accounts payable related to intangible assets, property, plant and equipment
 
—

 
(6,162
)
 
(6,162
)
 
(6,269
)
FREE CASH FLOW
 
42,876

 
—

 
42,876

 
47,501

Investments
 
—

 
 
 
—

 
10

Change in other non-current financial assets
 
(314
)
 
 
 
(314
)
 
(320
)
CASH USED FOR INVESTING ACTIVITIES
 
(17,886
)
 
—

 
(17,886
)
 
(19,515
)
Issuance of long-term borrowings
 
723

 
 
 
723

 
788

Repayment of borrowings
 
(2,521
)
 
 
 
(2,521
)
 
(2,776
)
Interests paid
 
(19
)
 
 
 
(19
)
 
(21
)
Proceeds from capital increase
 
3,416

 
 
 
3,416

 
3,758

Change in other financial liabilities
 
—

 
 
 
—

 
—

CASH FROM FINANCING ACTIVITIES
 
1,599

 
—

 
1,599

 
1,749

 
 


 
 
 


 


CHANGE IN NET CASH AND CASH EQUIVALENTS
 
44,161

 
—

 
44,161

 
48,940

Net cash and cash equivalents at beginning of period
 
280,857

 
 
 
280,857

 
314,644

Effect of exchange rates changes on cash and cash equivalents
 
(285
)
 
 
 
(285
)
 
(10,047
)
Net cash and cash equivalents at end of period
 
€
324,733

 
€
—

 
€
324,733

 
$
353,537




35



CRITEO S.A.
Consolidated Statement of Cash Flows
Reconciliation from IFRS to U.S. GAAP
(in thousands)
(unaudited)

 
 
Twelve Months Ended December 31, 2015
 
 
IFRS
(Euro)

 
 Adjustments from
IFRS to U.S.GAAP
(Euro)

 
U.S. GAAP
(Euro)

 
U.S. GAAP
(U.S. Dollar)

Net income
 
€
56,752

 
€
(597
)
 
€
56,155

 
$
62,275

Non-cash and non-operating items
 
70,867

 
(118
)
 
70,749

 
78,448

                 - Amortization and provisions
 
42,469

 
 
 
42,469

 
47,085

                 - Share-based payment expense
 
21,642

 
 
 
21,642

 
23,989

                 - Net gain or loss on disposal of non-current assets
 
(1,918
)
 
 
 
(1,918
)
 
(2,127
)
                 - Interest paid
 
5

 
 
 
5

 
6

                 - Non-cash financial income and expenses
 
20

 
 
 
20

 
22

                 - Change in deferred taxes
 
(14,098
)
 
(118
)
 
(14,216
)
 
(15,748
)
                 - Income tax for the period
 
22,747

 
 
 
22,747

 
25,221

Changes in working capital related to operating activities
 
13,022

 
715

 
13,737

 
15,231

                 - (Increase)/decrease in trade receivables
 
(75,247
)
 
 
 
(75,247
)
 
(83,420
)
                 - Increase/(decrease) in trade payables
 
90,233

 
 
 
90,233

 
100,047

                 - (Increase)/decrease in other current assets
 
(21,737
)
 
 
 
(21,737
)
 
(24,101
)
                 - Increase/(decrease) in other current liabilities
 
19,773

 
715

 
20,488

 
22,705

Income taxes paid
 
(16,960
)
 
 
 
(16,960
)
 
(18,805
)
CASH FROM OPERATING ACTIVITIES
 
123,681

 
—

 
123,681

 
137,149

Acquisition of intangible assets, property, plant and equipment
 
(67,090
)
 
(1,112
)
 
(68,202
)
 
(75,617
)
Proceeds from disposal of intangible assets, property, plant and equipment
 
9

 
 
 
9

 
10

Net change in accounts payable related to intangible assets, property, plant and equipment
 
—

 
1,112

 
1,112

 
1,128

FREE CASH FLOW
 
56,600

 
—

 
56,600

 
62,670

Investments
 
(18,009
)
 
 
 
(18,009
)
 
(20,542
)
Change in other non-current financial assets
 
(5,964
)
 
 
 
(5,964
)
 
(6,612
)
CASH USED FOR INVESTING ACTIVITIES
 
(91,054
)
 
—

 
(91,054
)
 
(101,633
)
Issuance of long-term borrowings
 
3,582

 
 
 
3,582

 
3,971

Repayment of borrowings
 
(8,101
)
 
 
 
(8,101
)
 
(8,974
)
Interests paid
 
42

 
 
 
42

 
47

Proceeds from capital increase
 
12,417

 
 
 
12,417

 
13,768

Change in other financial liabilities
 
(906
)
 
 
 
(906
)
 
(1,000
)
CASH FROM FINANCING ACTIVITIES
 
7,034

 
—

 
7,034

 
7,812

 
 
 
 
 
 
 
 
 
CHANGE IN NET CASH AND CASH EQUIVALENTS
 
39,661

 
—

 
39,661

 
43,328

Net cash and cash equivalents at beginning of period
 
289,784

 
 
 
289,784

 
351,827

Effect of exchange rates changes on cash and cash equivalents
 
(4,712
)
 
 
 
(4,712
)
 
(41,618
)
Net cash and cash equivalents at end of period
 
€
324,733

 
€
—

 
€
324,733

 
$
353,537


36

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings