GET: Groupe Eurotunnel SA: Groupe Eurotunnel SA: Results and Traffic up in the First Half of 2014

  GET: Groupe Eurotunnel SA: Groupe Eurotunnel SA: Results and Traffic up in   the First Half of 2014  UK Regulatory Announcement  PARIS  Groupe Eurotunnel SA (Paris:GET):    *Revenues: a further increase to €559 million (+8%^1)   *EBITDA progresses by 6% to €216 million.   *Channel Tunnel Fixed Link Concession:         *Revenues increased to €393 million (+5%)        *Railway traffic:              *Growth in the number of passengers on high-speed trains (+2%)             *Strong increase in the number of rail freight trains (+15%)    *Europorte:         *Continuing growth in revenues (+10%) to €127 million.    *MyFerryLink:         *Increase in revenues by 31% to €39 million.  Jacques Gounon, Chairman and Chief Executive Officer of Groupe Eurotunnel SA, stated:  “All areas of our business are growing. The Fixed Link achieved a record level of operating margin in a very active cross-Channel market. The new environmental constraints which will be imposed on the ferry companies from 1 January 2015 reinforce the attractiveness of the Fixed Link.”  _____________________ ^1 All comparisons with the income statement figures for the first half of 2013 are made at the exchange rate used for the first half of 2014: £1=€1.229.  Significant events in the half year    *The European Commission indicated in April to the French and British     governments that it has dropped its objections set out in its reasoned     opinion of 20 June 2013 linked to the level of access charges for the     Channel Tunnel, thereby validating Eurotunnel’s charging structure and     economic model.   *The Competition and Markets Authority (CMA) has prohibited MyFerryLink     from operating the Berlioz and the Rodin from Dover within 6 months from     the date of the official order, even though this decision was rejected on     appeal in December 2013.  The Fixed Link: solid growth in a highly competitive environment  During the first half of 2014, revenues from Shuttle Services increased by 6%, by comparison to the first half of 2013. The car activity has been sustained with 1,120,487 vehicles (+5%) and a very strong market share of 54% in a slightly growing cross-Channel market (+1%), Truck traffic has increased by 3% to 698,531 trucks. Eurotunnel continues to benefit from the upturn in the UK economy and to attract customers with its frequent shuttle departures. In a growing market, Eurotunnel has maintained its established market share at 38%.  Revenues from the railway network increased by 3% in the first half year. For Eurostar, this positive trend slowed during in the spring and was affected by the SNCF strikes in June (no Eurostar cancellations, but as connections were not guaranteed, some passengers were dissuaded from taking the train) and limited passenger growth to just 2% compared to the first half of 2013, the 5 million passenger mark has been passed for the first time.  Eurostar has also announced that the arrival of the new Siemens Velaro trains which will significantly increase the comfort and attractiveness of its services.  The rail freight business grew substantially (+15%) due to the commercial impact of the ETICA (Eurotunnel Incentive for Capacity Additions) scheme which provides support for start-ups and despite the impact of the SNCF strike during the month of June which caused major disturbance to traffic.  Europorte: new contracts  Europorte, which comprises the rail freight subsidiaries of Groupe Eurotunnel SA in France and the United Kingdom, continues to see strong growth in revenues (+10%) as a result of new contracts. These require additional start up costs, which explains the 13% increase in operating costs; the SNCF strike which prevented Europorte trains from circulating in France in June also contributed to the deterioration in the operating margin.  GB Railfreight, the third largest freight operator in the UK also continued to grow thanks to the strengthening of growth areas in the United Kingdom particularly where intermodal and bulk transport activities have benefitted from the economic upturn. Amongst the numerous contracts signed, the 11 train per week Sibelco contract to transport silica sand from Kings Lynn in Norfolk to Goole in Yorkshire stands out.  MyFerryLink: a credible alternative in the cross-Channel market  Freight traffic has leapt by 30% despite the series of negative announcements from the CMA, which is a clear indication of customer support for MyFerryLink. For cars, a continuing lack of awareness of MyFerryLink is slowing its progression.  It is on behalf of the customers who are attracted in significant numbers to the quality service offered by this maritime operator that Eurotunnel is appealing the prohibition, decreed by the CMA, from operating out of Dover. This decision, if it is confirmed, would lead immediately to a reduction in consumer choice across the Channel and would probably increase prices for consumers.  A reduction in net finance costs  The consolidated figures for the first half of the year show an increase of €12 million in EBITDA to €216 million despite a highly competitive market. Revenues and the operating result are subject to significant seasonal variations through the year.  For the Fixed Link, this is the fifth year in succession with an increase in EBITDA, which has reached a record level (€221 million).  Operating costs for the Fixed Link have increased by 6% to €172 million, although comparison with the previous year must take into account an exceptional insurance indemnity received in 2013.  For the first six months of the year, net finance costs have reduced by €6 million as a result of the impact of the reduction in the inflation rate in the UK on the cost of the indexed tranche of the debt and of debt repayments.  Free cash flow at the end of June amounted to €215 million.  For the first half of 2014, the Group has recorded a net loss of €11 million. Excluding the losses from MyFerryLink, the consolidated net result for the Group is positive at €3 million.  REVENUE  First half (January - June)                                         1^st half                1^st half                          1^st half                   % € million                          2013                 2013                          2014                        change                                        restated*                published** Shuttle Services       236.9       224.4       +6%      219.6 Railway network          149.1         144.3         +3%        141.1 Other revenues         6.6         6.1         +8%      6.0 Sub-total Fixed Link   392.6       374.8       +5%      366.7 Europorte              126.9       114.7       +10%     112.1 MyFerryLink            39.1        29.9        +31%     29.8 Revenue                558.6       519.4       +8%      508.6  * Average exchange rate for the first half of 20134: £1=€1.229 ** Average exchange rate for the first half of 2013: £1=€1.174  Reminder: first quarter (January - March)                           1^st         1^st quarter                1^st quarter                          quarter                       % € million                         2013                    2013                          2014                          change                                       restated*                   published** Shuttle Services       106.5      101.8          +5%      100.9 Railway network          70.2         68.9             +2%        68.2 Other revenues         3.1        2.6            +20%     2.6 Sub-total Fixed Link   179.8      173.3          +4%      171.7 Europorte              62.4       56.0           +11%     55.4 MyFerryLink            18.3       11.2           +64%     11.2 Revenue                260.5      240.5          +8%      238.3  * Average exchange rate for the first quarter of 2014: £1=€1.207 ** Average exchange rate for the first quarter of 2013: £1=€1.183  Second quarter (April - June)                           2^nd         2^nd quarter                2^nd quarter                          quarter                       % € million                         2013                    2013                          2014                          change                                       restated                    published Shuttle Services       130.4      122.6          +6%      118.7 Railway network          78.9         75.4             +5%        72.9 Other revenues         3.5        3.5            0%       3.4 Sub-total Fixed Link   212.8      201.5          +6%      195.0 Europorte              64.5       58.7           +10%     56.7 MyFerryLink            20.8       18.7           +12%     18.6 Revenue                298.1      278.9          +7%      270.3                                                                     FIXED LINK TRAFFIC  First half                                      1^st half     1^st half     %                                                                                              2014          2013          change Truck Shuttles                    698,531     677,702     +3% Passenger Shuttles  Cars*        1,120,487   1,071,164   +5%                     Coaches      33,188      33,723      -2% High-Speed  Passenger Trains    Passengers   5,041,375   4,944,655   +2%  (Eurostar)** Rail freight***      Tonnes       839,753     676,032     +24%                     Trains       1,483       1,287       +15%                                                            Reminder: 1st quarter                                      1^st quarter     1^st quarter     %                                                                                                    2014             2013             change Truck Shuttles                    347,021        333,167        +4% Passenger Shuttles  Cars*        448,481        445,653        +1%                     Coaches      11,963         12,740         -6% High-Speed  Passenger Trains    Passengers   2,305,578      2,232,516      +3%  (Eurostar)** Rail freight***      Tonnes       399,991        323,230        +24%                     Trains       706            624            +13%                                                                  Second quarter                                      2^nd quarter     2^nd quarter     %                                                                                                    2014             2013             change Truck Shuttles                    351,510        344,535        +2% Passenger Shuttles  Cars*        672,006        625,511        +7%                     Coaches      21,225         20,983         +1% High-Speed  Passenger Trains    Passengers   2,735,797      2,712,139      +1%  (Eurostar)** Rail freight***      Tonnes       439,762        352,802        +25%                     Trains       777            663            +17%                                                                  *    Including motorcycles, vehicles with trailers, caravans and motor homes. **    Only passengers using Eurostar to cross the Channel are included in this       table, thus excluding journeys between Paris-Calais and Brussels-Lille. ***   Rail freight services by trains operators (DB Schenker on behalf of BRB,       SNCF and its subsidiaries, and Europorte) using the Tunnel.         MYFERRYLINK TRAFFIC  First half              1^st half     1^st half     %                                              2014          2013          change Freight   183 913     141 377     +30% Cars*     108 825     116 606     -7% Coaches   932         279         +234%                                    Reminder: 1st quarter              1^st quarter     1^st quarter     %                                                    2014             2013             change Freight   91 450         56 795         +61% Cars*     35 474         30 308         +17% Coaches   420            15             -                                          Second quarter              2^nd quarter     2^nd quarter     %                                                    2014             2013             change Freight   92 463         84 582         +9% Cars*     73 351         86 298         -15% Coaches   512            264            +94%                                          * Including motorcycles, vehicles with trailers, caravans and motor homes.                             www.eurotunnelgroup.com                               GROUPE EUROTUNNEL SA                         HALF-YEARLY FINANCIAL REPORT*                       FOR THE SIX MONTHS TO 30 JUNE 2014  * English translation of GET SA’s 2014 “rapport financier semestriel” for information purposes only.  Contents  HALF-YEARLY ACTIVITY REPORT AT 30 JUNE 2014                               1 Summary                                                                     1 Analysis of cash flows                                                      6 Other financial indicators                                                  7 Outlook                                                                     8 SUMMARY CONSOLIDATED HALF-YEARLY FINANCIAL STATEMENTS AT 30 JUNE 2014       9 Consolidated income statement                                               9 Consolidated statement of other comprehensive income                        9 Consolidated statement of financial position                                10 Consolidated statement of changes in equity                                 11 Consolidated statement of cash flows                                        12 Notes to the summary financial statements                                   13 1 Important events                                                          13 2 Basis of preparation and significant accounting policies                  13 3 Segment reporting                                                         15 4 Finance costs                                                             15 5 Other financial income and (charges)                                      16 6 Income tax expense                                                        16 7 Earnings per share                                                        17 8 Property, plant and equipment                                             17 9 Financial assets and liabilities                                          17 10 Share capital                                                            18 11 Changes in equity                                                        20 12 Financial liabilities                                                    20 13 Related party transactions                                               21 14 Events after the reporting period                                        21 DECLARATION BY THE PERSON RESPONSIBLE FOR THE HALF-YEARLY FINANCIAL         22 REPORT AT 30 JUNE 2014 STATUTORY AUDITORS’ REPORT ON THE 2014 HALF-YEARLY FINANCIAL                23 INFORMATION                                                                               GROUPE EUROTUNNEL SA: HALF-YEARLY FINANCIAL REPORT FOR THE SIX MONTHS TO 30 JUNE 2014 Half-yearly activity report                   HALF-YEARLY ACTIVITY REPORT AT 30 JUNE 2014  To enable a better comparison between the two periods, Groupe Eurotunnel SA’s consolidated income statement for the first half of 2013 presented in this half-yearly activity report has been recalculated at the exchange rate used for the 2014 half-yearly income statement of £1=€1.229.  SUMMARY  The Group’s consolidated revenues for the first half of 2014 amounted to €559 million, an increase of €40 million or +8% compared to the first half of 2013. Operating costs of €343 million increased by €28 million compared to the first half of 2013 of which €18 million arose from the activities of Europorte and MyFerryLink and €10 million from those of the Fixed Link (including €4 million relating to an insurance indemnity received in 2013). EBITDA improved by €12 million to €216 million, and at €132 million the operating profit improved by €11 million. Net financial costs decreased by €6 million.  For the first half of 2014, the Group recorded a net loss of €11 million (including a loss of €14 million for the MyFerryLink segment) after an income tax charge of €2 million.  Free cash flow generated changed from €17 million in the first half of 2013 to €12 million in the first half of 2014 mainly as a result of increased capital expenditure.  At 30 June 2014, the Group held cash balances of €215 million (€277 million at 31 December 2013) after capital expenditure of €60 million, payment of a dividend of €81 million and €16 million in debt repayments.                            30 June  30 June      Change       30 June 2013                             2014      2013 € million                             restated *                  published Exchange rate €/£         1.229    1.229        €M    %     1.174 Fixed Link                  393       374           +19   +5%    367 Europorte                   127       115           +12    +10%   112 MyFerryLink               39       30           +9    +31%  30 Revenue                     559       519           +40    +8%    509 Fixed Link                  (172)     (162)         +10    +6%    (159) Europorte                   (121)     (107)         +14    +13%   (105) MyFerryLink               (50)     (46)         +4    +9%   (46) Operating costs           (343)    (315)        +28   +9%   (310) Operating margin            216       204           +12    +6%    199 (EBITDA) Depreciation              (82)     (82)         –     –     (82) Trading profit              134       122           +12    +9%    117 Net other operating       (2)      (1)          +1         (2) charges Operating profit (EBIT)     132       121           +11    +9%    115 Net finance cost            (136)     (142)         (6)    -4%    (138) Other net financial       (5)      7            (12)       7 (charges)/income Pre-tax result: loss      (9)      (14)         +5         (16) Income tax expense        (2)      (2)                    (2) Net result: loss          (11)     (16)         +5         (18)  * Restated at the rate of exchange used for the 2014 half-year income statement (£1=€1.229).  The evolution of the pre-tax result by segment compared to the first half of 2013 is presented below:  € million                          Fixed                               Total Improvement/(deterioration) of   Link     Europorte  MyFerryLink  Group result Pre-tax result for the first half of 2013 restated at the     5        –          (19    )     (14  ) 2014 exchange rate Improvement/(deterioration) of result: Revenue                            +19       +12         +9            +40 Operating expenses               (10  )   (14   )    (4     )     (28  ) EBITDA                             +9        (2    )     +5            +12 Depreciation                     (1   )   1         –           –     Trading result                     +8        (1    )     +5            +12 Net other operating              (1   )   –         –           (1   ) income/charges Operating result (EBIT)            7         (1    )     +5            +11 Net finance cost                   +6        –           –             +6 Other net financial charges      (13  )   +1        –           (12  ) Total changes                    –       –         +5          +5    Pre-tax result for the first     5       –         (14    )     (9   ) half of 2014                                                                          1. Fixed Link Concession segment  The Group’s core business is the Channel Tunnel Fixed Link Concession which operates and directly markets its integrated vehicle transport service (Shuttles) and also manages the circulation of the Train Operators’ services through its Railway Network in return for the payment of a toll. This segment also includes the Group’s corporate services.  € million                   30 June 2014  30 June 2014  Change Exchange rate £1=€1.229                  restated      €M   % Shuttle Services              237            224            +13  +6% Railway Network               149            144            +5    +3% Other revenue               7             6             +1   +8% Revenue                       393            374            +19   +5% External operating costs      (97)           (89)           +8    +9% Employee benefits expense   (75)          (73)          +2   +3% Operating costs             (172)         (162)         +10  +6% Operating margin (EBITDA)   221           212           +9   +4% EBITDA / revenue            56.2 %        56.8 %            -0.6pt                                                                     1.1. Fixed Link Concession revenues  Revenue generated by this segment, which represents 70% of the Group’s total revenue, increased by 5% to €393 million compared to the first half of 2013.  a) Shuttle Services  Traffic      1^st quarter (January to    2^nd quarter (April to      1^st half (January to June)               March)                       June) (number of   2014     2013     %       2014     2013     %       2014       2013       % vehicles)                         change                       change                           change Truck                                                                                   Shuttle:   Trucks   347,021  333,167  +4%     351,510  344,535  +2%     698,531    677,702    +3% Passenger Shuttle:   Cars*     448,481   445,653   +1%      672,006   625,511   +7%      1,120,487   1,071,164   +5%    Coaches  11,963   12,740   -6%     21,225   20,983   +1%     33,188     33,723     -2%  * Including motorcycles, vehicles with trailers, caravans and motor homes.  At €237 million, Shuttle Services revenues increased by 6% compared to the first half of 2013.  i) Truck Shuttles  The Short Straits cross-Channel market for trucks has continued to grow in 2014, up by an estimated 7% compared to the first half of 2013. During the first half of 2014 the number of trucks transported by the Shuttles increased by 3% compared to the first half of 2013 and the Truck Shuttle’s market share was 38%, a decrease of 1.4 points.  ii) Passenger Shuttles  The Short Straits cross-Channel car market grew in the first half of 2014 by an estimated 1%. The number of cars transported by the Shuttles increased by 5% and the Passenger Shuttle’s share of the car market increased by two points to reach 54.5% for the period.  The number of coaches transported by the Fixed Link during the half-year decreased by 2% and its market share was at 41%.  b) Railway network  Traffic          1^stquarter (January to March)  2^ndquarter (April to June)     1^sthalf (January to June)                 2014       2013       %       2014       2013       %       2014       2013       %                                           change                           change                           change High-Speed Passenger                                                                                                     Trains Eurostar:   Passengers*  2,305,578  2,232,516  +3%     2,735,797  2,712,139  +1%     5,041,375  4,944,655  +2% Train Operators’ Rail  Freight Services**:   Tonnes        399,991     323,230     +24%     439,762     352,802     +25%     839,753     676,032     +24%    Trains       706        624        +13%    777        663        +17%    1,483      1,287      +15%  * Only passengers using Eurostar to cross the Channel are included in this table, thus excluding journeys between Paris-Calais and Brussels-Lille. ** Rail freight services by trains operators (DB Schenker on behalf of BRB, SNCF and its subsidiaries, and Europorte) using the Tunnel.  For the first half of 2014, revenues arising from the use of the Tunnel’s railway network by Eurostar high-speed trains and rail freight trains increased by 3% to €149 million.  The number of Eurostar passengers travelling through the Tunnel increased by 2% compared to the first half of 2013, reaching 5.0 million.  The number of rail freight trains increased by 15%, primarily as a result the ETICA (Eurotunnel Incentive for Capacity Additions) programme launched by Eurotunnel to support the start-up of new rail freight services through the Channel Tunnel.  1.2. Fixed Link Concession operating costs  At €172 million, the Fixed Link’s operating costs for the first half of 2014 increased by 6% compared to the first half of 2013. Excluding the impact of a one-off €4 million insurance indemnity received in 2013, operating costs increased by 3.5%.  2. Europorte Segment  The Europorte segment covers the entire rail freight transport logistics chain in France and the UK. It includes GBRf in the UK, and Europorte France and Socorail in France.  € million                   30 June 2014  30 June 2013  Change Exchange rate £1=€1.229                  restated      €M   % Revenue                       127            115            +12  +10% External operating costs      (75)           (66)           +9    +14% Employee benefits expense   (46)          (41)          +5   +12% Operating costs             (121)         (107)         +14  +13% Operating margin (EBITDA)   6             8             (2)  -21%                                                                     2.1. Europorte revenues  The increase of €12 million (10%) in Europorte’s revenue was mainly generated by new contracts starting in the first half of 2014. Europorte France’s activity was affected significantly by the SNCF strike in June 2014 (estimated impact of €1 million).  2.2. Europorte operating costs  Operating costs increased by 13% reflecting the increase in activity as well as the additional costs generated by the start-up of several new contracts during the first half of 2014.  3. MyFerryLink segment  The Eurotunnel Group’s maritime subsidiaries “MyFerryLink” lease their ships to the SCOP (an operating company outside the Eurotunnel Group) and sell cross-Channel crossings for freight and tourist vehicles. The three ferries operate in the Short Straits cross-Channel market between Dover and Calais.  € million                   30 June 2014  30 June 2013  Change                                                      €M  % Revenue                       39             30             +9  +31% Operating costs             (50)          (46)          +4  +9% Operating margin (EBITDA)   (11)          (16)          +5  +31%                                                                    3.1. MyFerryLink revenues  Traffic     1^stquarter (January to   2^ndquarter (April to     1^sthalf (January to June)               March)                     June) (number                         %                          %                            % of          2014    2013    change  2014    2013    change  2014     2013     change vehicles) Freight       91,450  56,795  +61%    92,463  84,582  +9%     183,913  141,377  +30% Cars^(*^)     35,474   30,308   +17%     73,351   86,298   -15%     108,825   116,606   -7% Coaches     420     15      ns      512     264     +94%    932      279      +234%  * Including motorcycles, vehicles with trailers, caravans and motor homes.  The segment generated revenues of €39 million during the first half of 2014, including €6 million from leasing the ferries, an increase of 31% compared to the first half of 2013. MFL’s freight activity has increased its market share compared to the first half of 2013 to 9.8% and the market share for its car activity was 5.4%.  3.2. MyFerryLink operating costs  Operating costs of €50 million for the period comprise mainly the purchase of crossings from the SCOP, port fees linked to traffic transported (€8 million) and commercial and administrative costs.  The segment’s operating margin improved by €5 million (31%) in the first half of 2014 compared to the same period last year, reflecting the improved load factors.  4. Operating margin (EBITDA)  EBITDA by business segment compared to the first half of 2013 evolved as follows:  € million                 Fixed Link  Europorte  MyFerryLink  Total Group EBITDA 1^st half 2013     212         8          (16    )     204 Change in revenue           +19          +12         +9            +40 Change in operating       (10    )    (14   )    (4     )     (28    ) costs EBITDA 1^st half 2014     221        6         (11    )     216                                                                          At €216 million, the Group’s consolidated operating margin improved by €12 million compared to the first half of 2013.  5. Operating profit (EBIT)  Depreciation charges remained stable at €82 million for the first half of 2014.  The operating profit for the first half of 2014 was €132 million compared to €121 million for the first half of 2013.  6. Net finance costs  At €136 million for the first half of 2014, net finance costs decreased by €6 million compared to the first half of 2013 at a constant exchange rate, mainly as a result of the impact of lower UK inflation rates on the index-linked tranche of the debt and of the first contractual debt repayments in 2013.  “Other net financial income and charges” during the period included net exchange losses of €8 million compared to net exchange gains of €4 million in the first half of 2013 (an unfavourable variance of €12 million) principally arising from unrealised exchange differences generated on the revaluation of intra-group balances in sterling held by French subsidiaries These intra-group balances arise primarily from funding flows between the Concessionaires and GETSA. “Other net financial income and charges” also includes interest receivable on the floating rate notes of €3 million (2013: €3 million).  7. Net result  After a tax charge relating to the dividend tax of €2 million in the first half of 2014, the Group recorded a net loss of €11 million.  ANALYSIS OF CASH FLOWS  € million                                    30 June 2014  30 June 2013 Exchange rate €/£                            1.248         1.167 Net cash inflow from trading                   211            202 Other operating cash flows and taxation      (3)           (2) Net cash inflow from operating activities      208            200 Net cash outflow from investing activities     (60)           (48) Net cash outflow from financing activities   (216)         (241) Decrease in cash                             (68)          (89)                                                                 The net cash outflow for the first half of 2014 was €68 million, compared to a net cash outflow of €89 million for the same period in 2013. At €208 million, net cash inflow from operating activities improved by €8 million compared to the first half of 2013.  At €60million, net cash outflow from investing activities increased by €12 million compared to the first half of 2013. During the first half of 2014, cash flow from investing activities comprised:    *€18 million relating to the Fixed Link (€21 million in the first half of     2013) of which €5 million was spent on the replacement of rails in the     Tunnel,   *€38 million for Europorte (€16 million in the first half of 2013), mainly     in respect of the acquisition of new locomotives in the United Kingdom and     in France to support the development of this activity. It is intended that     this investment will be refinanced, and   *€3 million of investment in subsidiary undertakings in ElecLink Limited.  Net cash outflows from financing activities in the first half of 2014 amounted to €216 million compared to €241 million in the first half of 2013. During the first half of 2014, cash flow from financing comprised:    *€122 million of interest paid on the Term Loan and associated hedging     transactions (at the same level as for the first half of 2013),   *€16 million paid in respect of the scheduled repayment of the Term Loan     (€30 million in the first half of 2013),   *€81 million paid in dividends (2013: €65 million), and   *€4 million of interest received of which €3 million related to floating     rate notes owned by the Group (2013: €4 million of which €3 million was     for floating rate notes).  Debt service cover ratio  Under the terms of the Term Loan, Groupe Eurotunnel SA is required to meet certain financial covenants as described in paragraph 10.6 of the 2013 Registration Document.  At 30 June 2014, the debt service cover ratio (net operating cash flow less capital expenditure compared to debt service costs on a rolling 12 month period) and the synthetic debt service cover ratio (calculated on the same basis but taking into account a hypothetical amortisation on the Term Loan) were 1.66 and 1.66 respectively. The financial covenants for the period were respected.  OTHER FINANCIAL INDICATORS  Free cash flow  The free cash flow as defined by the Group in paragraph 10.8 of the 2013 Registration Document, is the net cash flow from operating activities less net cash flow from investing activities (excluding the initial investment in new activities and the acquisition of shareholdings in subsidiary undertakings) and net cash flow from financing activities relating to the service of the debt (loans and hedging instruments) plus interest received (on cash and cash equivalents and other financial assets).  For the first six months of 2014, free cash flow amounted to €12 million compared to €17 million for the same period in 2013, a decrease of €5 million mainly due to higher capital expenditure.  € million                                    30 June  30 June  31 December                                                2014      2013      2013 Exchange rate €/£                            1.248    1.167    1.199 Net cash inflow from operating activities      208       200       453                                                                     Net cash outflow from investing activities     (60)      (48)      (49) Adjustment for investment in subsidiary        –         7         – undertakings* Adjustment for the acquisition and             –         5         6 rehabilitation of maritime assets                                                                     Interest paid on loans and hedging             (122)     (121)     (242) contracts Scheduled debt repayments                      (18)      (30)      (47) Interest received                            4        4        8 Free cash flow                               12       17       129  * As ElecLink Limited was consolidated for the first time at 31 December 2013, advances made to it by the Group are treated as normal investment activity.  Long-term debt to asset ratio  The long-term debt to asset ratio as defined by the Group in paragraph 10.7 of the 2013 Registration Document is the ratio between long-term financial liabilities less the value of the floating rate notes purchased as a percentage of tangible fixed assets. At 58.7% at 30 June 2014, the ratio remained stable compared to 31 December 2013 restated at the exchange rate used at 30 June 2014.                                               30 June  31 December 2013 € million                                       2014      restated  published Exchange rate €/£                           1.248    1.248     1.199 Long-term financial liabilities         A       3,966     3,968      3,890 Other financial assets: floating      B      154      154       151 rate notes Long-term financial liabilities         A-B=C   3,812     3,814      3,739 less other financial assets Tangible fixed assets: property,      D      6,493    6,530     6,529 plant and equipment* Long-term debt to asset ratio         C/D    58.7%    58.4%     57.3%  * Concession fixed assets are converted using historic exchange rates.  OUTLOOK  During the first half of the year, the Group’s Shuttle Services have increased their share of the car market and the outlook for traffic for the peak summer season confirms this trend. In a cross-Channel truck market boosted by the upturn in the UK economy, and to a lesser extent by that of the Euro Zone, the number of trucks supported by Shuttles increased by 3% in the first half of the year in a market which remains highly competitive. Building on its core advantages of speed, frequency, safety and quality of service, the Group has launched significant new capital investment projects relating to the extension of its two terminals and the acquisition of three new Truck Shuttles, in order to support long-term performance and value creation.  During the first half of 2014, the Group announced initiatives relating to the development of cross-Channel rail freight, in particular the extension of the ETICA programme (Eurotunnel Incentive for Capacity Additions) to support the launch of new rail freight services and the reduction of certain tariffs for the passage of rail freight trains through the Tunnel at off-peak times. In addition, the Group continues to work actively with the rail operators on the development of new high-speed passenger rail services.  For the Europorte segment, the first half of 2014 was marked by the consolidation of its activities in France with a number of new developments in the cereals sector and in the transport of hazardous materials, and by the pursuit of its growth in the United Kingdom where the intermodal and bulk transport activities have benefitted from the economic upturn. The Group is continuing with its plans to extend and improve the reliability of its rolling stock fleet in order to support the development of its rail freight activity.  During the first half of 2014, the Group’s maritime activity, which operates under the MyFerryLink name, continued to strengthen its position in the Short Straits cross-Channel market despite difficult market conditions. The future of this activity remains uncertain following the final decision published by the UK’s Competition and Markets Authority at the end of June prohibiting it to operate in and out of the port of Dover. The Group disputes this decision and has decided to appeal.  In this context, the Group confirms its financial target published in its 2013 annual report of a consolidated EBITDA of €460 million for the 2014 financial year. This target is based on data, assumptions and estimations considered reasonable but which may nevertheless change or be modified due to uncertainties relating to the economic, financial, competitive or regulatory environments.  The main risks and uncertainties which the Eurotunnel Group may face in the remaining six months of the year are identified in chapter 4 “Risk Factors” of the 2013 Registration Document filed with the Autorité des marchés financiers (the French financial markets authority) on 21 March 2014. In respect of recent events see note 1 to the summary consolidated financial statements below.  GROUPE EUROTUNNEL SA: HALF-YEARLY FINANCIAL REPORT FOR THE SIX MONTHS TO 30 JUNE 2014 Summary consolidated half-yearly financial statements      SUMMARY CONSOLIDATED HALF-YEARLY FINANCIAL STATEMENTS AT 30 JUNE 2014  CONSOLIDATED INCOME STATEMENT  €’000                             Note  30 June    30 June    31 December                                            2014        2013        2013 Revenue                           3     558,600    508,623    1,091,986 Operating expenses                         (221,777)   (197,718)   (411,698) Employee benefit expense                   (121,091)   (112,369)   (231,227) Depreciation                           (81,838)   (81,818)   (166,149) Trading profit                      3      133,894     116,718     282,912 Other operating income                     881         739         4,207 Other operating expenses               (2,881)    (2,437)    (2,122) Operating profit                           131,894     115,020     284,997 Share of result of                     (125)      –          (1,220) equity-accounted companies Operating profit after share of result of equity-accounted                 131,769     115,020     283,777 companies Finance income                             1,196       972         1,918 Finance costs                     4     (136,803)  (139,272)  (271,399) Net finance costs                          (135,607)   (138,300)   (269,481) Other financial income              5      12,659      17,056      14,894 Other financial charges           5     (17,399)   (9,898)    (8,762) Pre-tax result for the period:         (8,578)    (16,122)   20,428 (loss)/profit Income tax expense                6     (2,448)    (2,034)    80,934 Result for the period:                 (11,026)   (18,156)   101,362 (loss)/profit Result: Group share                        (10,877)    (18,156)    101,361 Result: minority interest share        (149)      –          1 (Loss)/profit per share (€)         7      (0.02)      (0.03)      0.19 (Loss)/profit per share after     7     (0.02)     (0.03)     0.19 dilution (€)                                                                      CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME  €’000                              Note  30 June    30 June   31 December                                             2014        2013       2013 Items not recyclable to the                                   income statement: Actuarial gains and losses on               –           –          7,515 employee benefits Related tax                                 –           –          2,086 Items recyclable to the income statement: Foreign exchange translation                (61,838)    79,936     36,799 differences Movement in fair value of            12     (188,374)   156,201    229,092 hedging contracts Related tax                             2,372      –         42,388 Net (loss)/profit recognised directly in other comprehensive             (247,480)   236,137    317,880 income (Loss)/profit for the period -          (10,877)   (18,156)  101,361 Group share Total comprehensive                         (258,357)   217,981    419,241 (expense)/income - Group share Total comprehensive (expense)/income) - minority            (148)      –         5 interest share Total comprehensive                     (258,505)  217,981   419,246 (expense)/income                                                                      The accompanying notes form part of these financial statements.  CONSOLIDATED STATEMENT OF FINANCIAL POSITION  €’000                                      Note  30 June    31 December                                                     2014        2013 ASSETS                                                      Goodwill                                            17,680      16 997 Intangible assets                               9,641      9 814 Total intangible assets                             27,321      26 811 Concession property, plant and equipment     8      6,269,526   6 333 187 Other property, plant and equipment        8     223,219    195 858 Total property, plant and equipment                 6,492,745   6 529 045 Investment in subsidiary undertakings               1,086       880 Deferred tax asset                                  130,259     127 496 Other financial assets                     9.2   163,013    157 259 Total non-current assets                            6,814,424   6 841 491 Stock                                               3,519       3 622 Trade receivables                                   143,450     130 600 Other receivables                                   49,280      30 280 Other financial assets                              193         207 Cash and cash equivalents                       215,249    276 725 Total current assets                            411,691    441 434 Total assets                                    7,226,115  7 282 925 EQUITY AND LIABILITIES Issued share capital                         10     220,000     220 000 Share premium account                               1,711,796   1 711 796 Other reserves                               11     90,178      252 328 (Loss)/profit for the period                        (10,877)    101 361 Cumulative translation reserve                  133,242    195 080 Equity – Group share                                2,144,339   2 480 565 Minority interest share                         (143)      5 Total equity                                        2,144,196   2 480 570 Retirement benefit obligations                      44,279      43 203 Financial liabilities                        12     3,965,939   3 889 951 Interest rate derivatives                  12    815,299    626 925 Total non-current liabilities                       4,825,517   4 560 079 Provisions                                          772         907 Financial liabilities                        12     40,936      39 527 Trade payables                                      154,287     170 837 Other payables                                  60,407     31 005 Total current liabilities                       256,402    242 276 Total equity and liabilities                    7,226,115  7 282 925                                                                   The accompanying notes form an integral part of these financial statements.  CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                       Issued    Share       Consolidated               Cumulative    Group       Minority €’000              share    premium    reserves      Result     translation  Share      interests  Total                      capital   account                                reserve 1 ^ January 2013   220,000  1,711,796  32,339        31,719     158,281      2,154,135  –          2,154,135 Transfer to consolidated                               31,719         (31,719)                  –                       – reserves Payment of                                 (65,189)                                 (65,189)                (65,189) dividend Share based                                5,390                                    5,390                   5,390 payments Acquisition/sale of treasury                                (33,012)                                 (33,012)                (33,012) shares Result for the                                            101,361                   101,361     1           101,362 period Net profit / (loss) recorded directly in                          281,081                 36,799       317,880    4          317,884 other comprehensive income 31 December 2013     220,000   1,711,796   252,328        101,361     195,080       2,480,565   5           2,480,570 Transfer to consolidated                               101,361        (101,361)                 –                       – reserves Payment of dividend (note                             (80,886)                                 (80,886)                (80,886) 11) Share based                                2,594                                    2,594                   2,594 payments^(*) Acquisition/sale of treasury                                423                                      423                     423 shares Result for the                                            (10,877)                  (10,877)    (149)       (11,026) period Profit / (loss) recorded directly in other comprehensive income:   *Movement in     fair value                             (188,374)                                (188,374)               (188,374)     of hedging     contracts   *Related tax                            2,732                                    2,732                   2,732   *Minority                                                                        –           1           1     interests   *Foreign     exchange                                                (61,838)     (61,838)             (61,838)     translation     differences 30 June 2014       220,000  1,711,796  90,178        (10,877)   133,242      2,144,339  (143)      2,144,196  * Of which €1,308,000 in respect of free shares, €1,026,000 in respect of share options and €260,000 in respect of free preference shares.  The accompanying notes form an integral part of these financial statements.  CONSOLIDATED STATEMENT OF CASH FLOWS  €’000                              30 June 2014  30 June 2013  31 December                                                                    2013 Result for the period:             (11,026)      (18,156)      101,362 (loss)/profit Tax expense                          2,448          2,034          (80,934) Net other financial                  4,740          (7,158)        (6,132) charges/(income) Net finance costs                    135,607        138,300        269,481 Share of result of                   125            –              1,220 equity-accounted companies Other operating                      2,000          1,698          (2,085) expenses/(income) Depreciation                       81,838        81,818        166,149 Trading profit before                215,732        198,536        449,061 depreciation Exchange adjustment*                 2,131          (739)          3,019 Increase in inventories              117            (252)          (371) Increase in trade and other          (26,299)       (8,738)        2,847 receivables Increase in trade and other        19,664        13,328        4,457 payables Net cash inflow from trading         211,345        202,135        459,013 Other operating cash flows           (1,254)        (2,451)        (4,487) Taxation (paid)/received           (2,447)       32            (1,943) Net cash inflow from operating     207,644       199,716       452,583 activities Payments to acquire property,        (57,336)       (42,376)       (74,937) plant and equipment Sale of property, plant and          9              1,307          31,235 equipment Change in loans and advances       (3,014)       (7,190)       (4,858) Net cash outflow from investing    (60,341)      (48,259)      (48,560) activities Dividend paid                        (80,886)       (65,265)       (65,189) Purchase of treasury shares          –              (29,418)       (35,447) Interest paid on Term Loan           (90,199)       (88,084)       (177,756) Interest paid on hedging             (31,599)       (31,184)       (63,086) instruments Scheduled repayment of Term Loan     (16,166)       (29,573)       (45,835) Interest paid on other loans         (662)          (693)          (1,374) Repayment of other loans             (603)          (623)          (1,443) Interest received on cash and        1,195          979            1,864 cash equivalents Interest received on other           3,178          3,095          6,217 financial assets Net payments on liquidity          424           790           2,304 contract Net cash outflow from financing    (215,318)     (239,976)     (379,745) activities (Decrease)/increase in cash in     (68,015)      (88,519)      24,278 period  * The adjustment relates to the restatement of elements of the income statement at the exchange rate ruling at the periodend.  Movement during the year           30 June 2014  30 June 2013  31 December €’000                                                              2013 Cash and cash equivalents at 1     276,725       256,228       256,228 January Effect of movement in exchange       6,471          (8,720)        (3,838) rate (Decrease)/increase in cash in       (68,015)       (88,519)       24,278 the period (Decrease)/increase in interest    68            (7)           57 receivable in the period Cash and cash equivalents at the   215,249       158,982       276,725 end of the period                                                                      The accompanying notes form an integral part of these consolidated financial statements.  GROUPE EUROTUNNEL SA: HALF-YEARLY FINANCIAL REPORT FOR THE SIX MONTHS TO 30 JUNE 2014  Summary consolidated half-yearly financial statements                    NOTES TO THE SUMMARY FINANCIAL STATEMENTS  Groupe Eurotunnel SA is the consolidating entity of the Eurotunnel Group, whose registered office is at 3rue La Boétie, 75008 Paris, France and whose shares are listed on Euronext Paris and on NYSE Euronext London. The term “Groupe EurotunnelSA” or “GETSA” refers to the holding company which is governed by French law. The term “Group” or “the Eurotunnel Group” refers to Groupe EurotunnelSA and all its subsidiaries.  The activities of the Group are the design, financing, construction and operation of the Fixed Link in accordance with the terms of the Concession (which will expire in 2086), as well as rail freight and maritime activities.  1 Important events  1.1 Maritime activity: procedure before the UK Competition and Markets Authority  In 2012, the Eurotunnel Group created the company Euro-TransManche Holding SAS as part of the project to acquire certain assets of the SeaFrance group in liquidation, including notably the ferries the Berlioz, the Rodin and the Nord Pas-de-Calais. The transfer of ownership of these assets occurred on 2 July 2012 (with a clause prohibiting the transfer of the ferries for a period of five years imposed by the French Tribunal de Commerce). The ferries are owned by three subsidiaries of Euro-TransManche Holding SAS. The commercial activity is carried out by another subsidiary of Euro-TransManche Holding SAS, MyFerryLink SAS.  Following the appeal by Groupe Eurotunnel SA and SCOP SeaFrance, the Competition Appeal Tribunal issued its judgement on 4 December 2013. This judgement quashed the decision by the UK Competition Commission of 6 June 2013 which prohibited Groupe EurotunnelSA (or any connected party) from operating ferry services out of the port of Dover, either directly or indirectly, for a period of ten years using the ferries the Berlioz and the Rodin, and for a period of two years for any other ship.  The Tribunal considered that the Competition Commission (which has since become the Competition and Markets Authority), having failed to demonstrate that Groupe EurotunnelSA had acquired an enterprise and not just individual assets, had not justified that it had jurisdiction in the matter. The Tribunal therefore remitted to the Competition Commission the question of whether the Eurotunnel Group had acquired an enterprise.  On 27 June 2014, the Competition Commission confirmed that it had jurisdiction in the matter as it considered that the Eurotunnel Group had acquired SeaFrance giving rise to a merger under the UK’s merger regime, and concluded that MyFerryLink must cease activities within six months from the date of the official order which the Competition and Markets Authority must publish for its decision to be effective.  The Eurotunnel Group will lodge its appeal of this decision before the Competition Appeals Tribunal before the deadline of 24 July.  The Eurotunnel Group confirms its determination to continue its maritime activity and maintains its position that the acquisition of the ferries from the former SeaFrance, nine months after it ceased operations, does not constitute the acquisition of an enterprise that would fall within the Competition and Markets Authority’s jurisdiction. The Eurotunnel Group believes that the performance of MyFerryLink increases competition in a cross-Channel market which has evolved significantly since the cessation of SeaFrance’s activities. Furthermore, the Group underlines the disproportionate character of the remedies imposed by the UK Competition and Markets Authority as well as their inconsistency with those required by the French competition authority, the Group’s compliance with which is monitored by an independent trustee.  In this context, the Group’s financial statements at 30 June 2014 have been prepared on the basis that the maritime business will continue.  1.2 Reasoned opinion issued by the European Commission on the implementation of the first railway package  During the first half of 2014, the European Commission announced that it had dropped the objections set out in the “reasoned opinion” issued to the French and British governments on 20 June 2013 concerning the track access charges for railway operators using the Channel Tunnel.  2 Basis of preparation and significant accounting policies  2.1 Statement of compliance  The half-year summary consolidated financial statements have been prepared in accordance with IAS34 and accordingly do not contain all the information necessary for complete annual financial statements and must be read in conjunction with Groupe Eurotunnel SA’s consolidated financial statements for the year ended 31 December 2013.  The half-year summary consolidated financial statements for 2014 were prepared under the responsibility of the meeting of the Board of Directors which was held on 21 July 2014.  2.2 Scope of consolidation  The half-year summary consolidated financial statements for Groupe EurotunnelSA and its subsidiaries are prepared as at 30 June. The basis of consolidation at 30 June 2014 is the same as that used for Groupe Eurotunnel SA’s annual financial statements to 31 December 2013.  2.3 Basis of preparation and presentation of the consolidated financial statements  The half-year summary consolidated financial statements have been prepared using the principles of currency conversion as defined in the 2013 annual financial statements.  The average and closing exchange rates used in the preparation of the 2014 and 2013 half-year accounts and the 2013 annual accounts are as follows:  €/£            30 June 2014   30 June 2013   31 December 2013 Closing rate   1.248          1.167          1.199 Average rate   1.229          1.174          1.187                                                      2.4 Principal accounting policies  The half-year summary consolidated financial statements have been prepared in accordance with IFRS. The accounting principles and bases of calculation used for these half-year summary consolidated financial statements are consistent in all significant aspects with those used for GET SA’s 2013 annual consolidated financial statements, with the exception of the following standards published by the IASB and adopted by the European Union and which became applicable to the Group on 1 January 2014:    *The amendments to IAS32 “Offsetting Financial Assets and Financial     Liabilities”, IAS36 “Recoverable Amount Disclosures for Non-Financial     Assets” and IAS39 “'Novation of Derivatives and Continuation of Hedge     Accounting”.   *IFRS10 “Consolidated Financial Statements” which will replace IAS27     “Consolidated and Separate Financial Statements” for the part relating to     consolidated financial statements as well as interpretation SIC12     “Consolidation-Special Purpose Entities”.   *IFRS11 “Joint Arrangements” which will replace IAS31 “Interests in Joint     Ventures” as well as the interpretation SIC13 “Jointly Controlled     Entities– Non-Monetary Contributions byVenturers”.   *IFRS12 “Disclosure of Involvement with Other Entities”.   *Revision to IAS27 renamed “Separate Financial Statements” and IAS28     “Investments in Associates and Joint Ventures”.  No significant impact resulting from the initial application of these standards has been identified.  The interpretation IFRIC 21 “levies imposed by governments” published by the IASB has been adopted by the European Union for mandatory application for accounting periods commencing on or after 1 January 2015. This interpretation states that the obligating event that gives rise to a liability to pay a levy is the activity described in the relevant legislation that triggers the payment of the levy. The Group does not expect any significant effect to arise from the application of this standard.  The main texts which may be applicable to the Group that have been published by the IASB but are not yet in force (not adopted by the European Union) are:    *IFRS 9 “Financial Instruments: Classification and measurement of financial     assets and liabilities”. Subject to its being adopted by the European     Union, this standard will be mandatory for accounting periods commencing     on or after 1 January 2018 following the decision by the IASB in February     2014,   *IFRS 15 “Revenue from Contracts with Customers” for accounting periods     commencing on or after 1 January 2017,   *revision to IFRS 11 “Joint Arrangements” for accounting periods commencing     on or after 1 January 2016,   *revision to IAS 16 “Property, Plant and Equipment” and IAS 38 “Intangible     Assets” for accounting periods commencing on or after 1 January 2016.  The other standards, interpretations and amendments to existing standards are not applicable to the Group.  2.5 Seasonal variations  The revenue and the trading result generated in each reporting period are subject to seasonal variations over the year, in particular for the Passenger Shuttle and MyFerryLink’s car activities during the peak summer season. Therefore the results for the first half of the year cannot be extrapolated to the full year.  3 Segment reporting  The Group is structured around the following three activities which correspond to the internal information reviewed and used by the main operational decision makers (the Executive Committee):    *the “Concession for the cross-Channel Fixed Link” segment which includes     the Group’s corporate services and ElecLink Limited,   *the “Europorte” segment the main activity of which is that of rail freight     operator, and   *the “MyFerryLink” segment, the main activity of which is the lease of     ferries and the sale of cross-Channel crossings. The ferries are leased to     SCOP SeaFrance which is an operating company outside the Eurotunnel Group.  €’000                       Fixed Link  Europorte  MyFerryLink  Total At 30 June 2014                                                 Revenue                       392,592      126,869     39,139        558,600 EBITDA                        220,811      6,153       (11,232)      215,732 Trading profit/(loss)         146,613      887         (13,606)      133,894 Net result before             5,957        (63)        (14,472)      (8,578) taxation Investment in property,       12,277       32,884      331           45,493 plant and equipment Property, plant and         6,270,594   179,434    70,038       6,520,066 (intangible and tangible) At 30 June 2013 Revenue                       366,669      112,093     29,861        508,623 EBITDA                        207,294      7,475       (16,233)      198,536 Trading profit/(loss)         133,423      1,943       (18,648)      116,718 Net result before             3,174        1           (19,297)      (16,122) taxation Investment in property,       14,463       16,262      4,023         34,748 plant and equipment Property, plant and         6,386,176   164,748    74,993       6,625,917 (intangible and tangible) At 31 December 2013 Revenue                       779,188      238,493     74,305        1,091,986 EBITDA                        452,212      19,241      (22,392)      449,061 Trading profit/(loss)         303,780      8,324       (29,192)      282,912 Net result before             43,715       7,215       (30,502)      20,428 taxation Investment in property,       37,442       31,445      5,495         74,382 plant and equipment Property, plant and         6,334,257   149,519    72,080       6,555,856 (intangible and tangible)                                                                        4 Finance costs  €’000                                        30 June  30 June  31 December                                                2014      2013      2013 Interest on loans before hedging             90,007   88,836   178,157 Adjustments relating to hedging                31,416    31,209    62,868 instruments Effective rate adjustment                    563      509      1,034 Sub-total                                      121,986   120,554   242,059 Inflation indexation of the nominal          14,817   18,718   29,340 Total finance costs after hedging            136,803  139,272  271,399                                                                      At the end of June, the inflation indexation of the nominal reflects the estimated effect of annual French and British inflation rates on the nominal amount of tranches A1 and A2 of the Term Loan as described in note V of the annual consolidated financial statements at 31 December 2013.  5 Other financial income and (charges)  €’000                                       30 June   30 June  31 December                                               2014       2013      2013 Unrealised exchange gains*                  8,041     12,934   6,112 Other exchange gains                          1,078      754       1,856 Interest received on floating rate notes      3,378      3,293     6,689 Other                                       162       75       221 Other financial income                        12,659     17,056    14,878 Unrealised exchange losses*                   (16,291)   (9,155)   (7,278) Other exchange losses                       (1,108)   (743)    (1,468) Other financial charges                     (17,399)  (9,898)  (8,746) Total                                       (4,740)   7,158    6,132 Of which net unrealised exchange            (8,250)   3,779    (1,166) gains/(losses)  * Mainly arising from the re-evaluation of intra-group debtors and creditors.  6 Income tax expense  €’000               30 June  30 June  31 December                       2014      2013      2013 Current tax:                          Income tax            (21)      (78)      (133) Tax on dividends    (2,427)  (1,956)  (1,956) Total current tax     (2,448)   (2,034)   (2,089) Deferred tax        –        –        83,023 Total               (2,448)  (2,034)  80,934                                             The current tax charge relates to amounts paid or to be paid in the short term to the tax authorities in relation to the period in accordance with the rules in force in the different countries and specific conventions. In the first half of 2014, income tax for the period relates to taxes to be paid outside France and the UK.  At 30 June 2014, in view of the result for the period and the prospect of a profit for the 2014 financial year, the Eurotunnel Group has not accounted for charges in relation to its income tax positions in France or the UK. In light of the forecasts set out in its business plan the Group still considers the deferred tax asset recognised at 31 December 2013 to be recoverable.  7 Earnings per share                                   30 June       30 June      31 December                                       2014           2013          2013 Weighted average number:                                      - of issued ordinary shares           550,000,000    550,000,000   550,000,000 - of treasury shares              (11,195,296)  (6,652,243)  (9,038,787) Number of shares used to calculate the result per          538,804,704   543,347,757  540,961,213 share (A)                                                                     - impact of share options        i    706,057        –             – - impact of free shares        ii  1,138,855     1,544,610    1,398,503 Potential number of ordinary      1,844,912     1,544,610    1,398,503 shares (B)                                                            Number of shares used to calculate the diluted result      540,649,616   544,892,367  542,359,716 per share (A+B)                                                                     (Loss)/profit (€’000) (C)             (10,877)       (18,156)      101,362 (Loss)/profit per share (€)           (0.02)         (0.03)        0.19 (C/A) (Loss)/profit per share           (0.02)        (0.03)       0.19 after dilution (€) (C/(A+B))                                                                      The calculations were made on the following bases:  (i) on the assumption of the exercise of all the options issued and still in issue at 30 June 2014 when the average share price during the period exceeds the exercise price of the options (which was not the case in 2013). The exercise of these options is conditional on attaining the targets described in note T of the consolidated financial statements at 31 December 2013; and  (ii) on the assumption of the acquisition of:    *all the free shares issued to staff. During the first half of 2014,     667,430 of the free shares issued in 2012 were acquired by staff. Details     of the free shares are described in note T.2 of the consolidated financial     statements at 31 December 2013, and   *free preference shares issued and still in issue at 30 June 2014 in     accordance with the applicable terms of conversion as described in note     10.3i below and taking into account average share price over the period.     Conversion of these preference shares is subject to achieving certain     targets and remaining in the Group’s employment.  8 Property, plant and equipment  “Other property, plant and equipment” consists mainly of the rolling stock owned by the subsidiaries of Europorte and the ferries owned by the maritime companies.  In relation to its maritime assets, the Eurotunnel Group confirms that their recoverable amount at 30 June 2014 remains higher than their net accounting value. The recoverable amount was estimated using the studies by independent experts as at 31 December 2013.  The Group has not identified any indication of impairment in either the tangible or intangible assets of its Concession and Europorte activities.  9 Financial assets and liabilities  9.1 Hierarchy of fair value  The table below analyses the financial instruments which are accounted for at their fair value, according to their method of valuation. The different levels are defined in noteB.4to the consolidated financial statements at 31 December 2013.  €’000         Carrying amount                                                             Fair value                 Assets                 at fair   Available-                               Liabilities Class of        value     for-sale     Loans and     Hedging       at            Total net financial     through  financial   receivables  instruments  amortised    carrying   Level 1  Level 2  Level 3    Total instrument      profit    assets                                   cost          value                 and                 loss Financial assets                                                                                                            measured at fair value Other non-current   n/a      n/a         n/a          n/a          n/a          n/a        n/a      n/a      n/a        n/a financial assets Financial assets not measured at fair value Other current and non-current                            163,206                                   163,206     na        na        na          na financial assets Trade                                  143,450                                   143,450     na        na        na          na receivables Cash and cash          215,249                                                 215,249    215,249                    215,249 equivalents Financial liabilities                                                                      , measured at fair value Interest rate                             ,            815,299                  815,299            815,299            815,299 derivatives Financial liabilities not                                                                              , measured at fair value Financial                                                          4,006,875     4,006,875                       4,883,834   4,883,834 liabilities Trade                                                    154,287      154,287    na       na       na         na payables                                                                                                                                Other financial assets which are not measured at fair value consist mainly of floating rate notes.  At 30 June 2014, the information relating to the fair value of the financial liabilities remains as described in note W of the annual consolidated financial statements at 31 December 2013, the reduction being the nominal debt repaid during the period.  9.2 Other financial assets  €’000                                     30 June  31 December                                             2014      2013 Floating rate notes                       154,237  151,357 Other                                     8,776    5,902 Total non-current                         163,013  157,259 Accrued interest on floating rate notes   193      207 Total current                             193      207                                                     10 Share capital  10.1 Share capital evolution  At 30 June 2014, the issued share capital of GET SA amounted to €220,000,000.00divided into 550,000,000 fully paid-up GETSA ordinary shares with a nominal value of €0.40 each, unchanged compared to 31 December 2013.  10.2 Treasury shares  Movements in the number of treasury shares during the period were as follows:                                       Share buyback  Liquidity  Total                                         programme       contract At 1 January 2014                     11,215,450     220,000    11,435,450 Shares transferred to staff (free       (667,430)                   (667,430) share plan) Net purchase/(sale) under liquidity                 (37,500)   (37,500) contract At 30 June 2014                       10,548,020     182,500    10,730,520                                                                       Treasury shares held as part of the share buy back programme renewed by the general meeting of shareholders and implemented by decision of the board of directors on 29 April 2014 are allocated, in particular, to cover share option plans and the grant of free shares, whose implementation was approved by the general meetings of shareholders in 2010, 2011, 2013 and 2014.  10.3 Share-based payments  i. Preference shares convertible into ordinary shares  Preference share plan (treated as an equity instrument)  On 29 April 2014, the general meeting of shareholders authorised the board of directors to grant to executives and senior staff of GETSA and its subsidiaries preference shares with a nominal value of €0.01 each with no voting rights which are convertible into GETSA ordinary shares subject to performance conditions at the end of a four-year period. The total number of preference shares may not give the right to more than 1,500,000 ordinary shares of a nominal value of €0.40each. Under this scheme, the board of directors approved on 29 April 2014 the grant of 300 preference shares, each convertible at the end of the four-year period into a maximum of 5,000 ordinary shares.  Characteristics and conditions of the preference share plan  Date of grant /     Number of      Conditions for acquiring           Vesting main staff        preference   rights                           period concerned           shares                                    Staff must remain as employees                                    of the Group.  Preference                         Market performance condition: shares granted                     calculated on a tapering scale to key                             corresponding to the executives and    300          percentage achievement of the    4 years senior staff on                    target share-price increase 29 April 2014                      after a period of four years                                    with a minimum target of an                                    average price of €9.335 and a                                    maximum target of an average                                    price of €11.50.                                                                  Information on the preference share plan                               2014 In issue at 1 January         – Granted during the period       300 Renounced during the period     – Exercised during the period     – Expired during the period     – In issue at 30 June 2014      300 Exercisable at 30 June 2014   –                                   Assumptions used for the fair value measurement on the grant date  The fair value on grant date of the rights granted to staff as part of the plan (the 1,500,000 ordinary shares on conversion of the preference shares) was calculated by using the Monte Carlo valuation model. The assumptions used to measure the fair value of the plan on grant date were asfollows:  Fair value of shares and assumptions                  2014 plan Fair value on grant date (€)                          2.68 Share price on grant date (€)                           9.68 Number of beneficiaries                                 36 Risk-free interest rate (based on government bonds)   0.5831%                                                           ii. Grant of free shares  Following the approval by the general meeting of shareholders on 29April2014 of the plan to issue existing free shares, GETSA’s board of directors decided on 29 April 2014 to grant a total of 369,100GETSA Shares (100 shares per employee) to all employees of GETSA and its related companies with the exception of executive and corporate officers. The definitive acquisition of these shares by the employees is subject to their remaining in employment with the Group and they cannot be sold for a minimum period of 4years.  On 26 April 2014, 667,430 free shares issued in 2012 were acquired by employees.  Number of shares              2014       2013 In issue at 1 January         1,254,090  1,700,470 Granted during the period       369,100     – Renounced during the period     (15,840)    (35,070) Acquired during the period      (667,430)   (411,310) Expired during the period     –          – In issue at 30 June 2014      939,920    1,254,090                                               The assumptions used to measure the fair value of the free shares were asfollows:  Fair value of free shares and assumptions             2014 grant Fair value of free shares on grant date (€)           9.28 Share price on grant date (€)                           9.68 Number of beneficiaries                                 3,691 Risk-free interest rate (based on government bonds)   0.33%                                                           A charge of €2,621,000was made for the first half of 2014 relating to the free shares, stock options and preference shares (first half of 2013: €2,832,000).  11 Changes in equity  Changes in equity during the period including the movement in the fair value of hedging contracts (see note 12) and the payment of the dividend are set out in the consolidated statement of changes in equity on page 11.  Dividend  On 29 April 2014, Groupe Eurotunnel SA’s shareholders’ general meeting approved the payment of a dividend relating to the financial year ended 31 December 2013, of €0.15 per share. This dividend was paid on 28 May 2014 for a total of €80.9 million (before 3% tax on dividends amounting to €2.4 million).  12 Financial liabilities  The movements in financial liabilities during the period were as follows:                  31          31 December                                       Interest, €’000         December   2013              Reclassification  Repayment  indexation  30 June                 2013        ^(*)recalculated                                  and          2014                 published                                                     costs Term Loan     3,868,491  3,946,253         (17,078)                     15,580      3,944,755 Other loans     16,401      16,401             (447)                                       15,954 Finance       5,059      5,262             (32)                                   5,230 leases Total non-current   3,889,951  3,967,916         (17,557)          –          15,580      3,965,939 financial liabilities Term Loan       32,582      33,246             17,078             (16,166)                 34,158 Other loans     867         867                447                (429)                    885 Finance         559         581                32                 (174)                    439 leases Accrued interest on   5,519      5,627                                        (173)       5,454 Term Loan Total current       39,527     40,321            17,557            (16,769)   (173)       40,936 financial liabilities Total         3,929,478  4,008,237         –                 (16,769)   15,407      4,006,875  * The financial liabilities at 31 December 2013 (calculated at the year end exchange rate of £1=€1.199) have been recalculated at the exchange rate at 30 June 2014 (£1=€1.248) in order to facilitate comparison.  Interest rate exposure  The Eurotunnel Group has hedging contracts in place 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 LIBOR against a fixed rate of 5.26%). The nominal value of the swaps is €953 million and £350 million.  These derivatives generated a net charge of €31,416,000 during the first six months of 2014 which has been accounted for in the income statement (a net charge of €31,209,000 during the first six months of 2013).  These derivatives have been measured at their fair value on the balance sheet as follows:                 Market value of hedging contracts   *Changes in market value €’000          30 June 2014    31 December 2013   Contracts in     Liability of    Liability of        161,468 euros            627,529          466,061 Contracts in   Liability of    Liability of       26,906 sterling         187,770          160,864 Total          Liability of    Liability of       188,374                  815,299          626,925  * Recorded directly in other comprehensive income.  13 Related party transactions  13.1 Eurotunnel Group subsidiaries  All Eurotunnel Group subsidiaries were fully consolidated at 30 June 2014 except for ElecLink as described in note P to the annual consolidated financial statements at 31 December 2013.  13.2 Other related parties  During the financial restructuring in 2007, the Eurotunnel Group concluded interest rate hedging contracts with financial institutions, in the form of swaps (see note 12 above). Goldman Sachs International was one of the counterparties to these hedging contracts, and at 30 June 2014 held 2.7% of the contracts, representing a charge of €0.8 million in the first half of 2013 and a liability of €22 million at 30 June 2014.  Two of Goldman Sachs’s infrastructure funds (GS Global Infrastructure Partners I, L.P., and GS International Infrastructure Partners I, L.P., together known as GSIP) hold (on the basis of the last declaration of threshold crossing in September 2011) approximately 15.5% of GET SA’s share capital at 30 June 2014.  14 Events after the reporting period  Nothing to report.  GROUPE EUROTUNNEL SA: HALF-YEARLY FINANCIAL REPORT FOR THE SIX MONTHS TO 30 JUNE 2014 Declaration by the person responsible for the half-yearly financial report  DECLARATION BY THE PERSON RESPONSIBLE FOR THE HALF-YEARLY FINANCIAL REPORT AT                                  30 JUNE 2014  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 Groupe Eurotunnel SA and of all the companies included in the consolidation, and that this half-yearly 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.                                                                 Jacques Gounon,                  Chairman and Chief Executive Officer of Groupe Eurotunnel SA,                                                                   21 July 2014  GROUPE EUROTUNNEL SA: HALF-YEARLY FINANCIAL REPORT FOR THE SIX MONTHS TO 30 JUNE 2014 Statutory auditors’ report on the half-yearly financial information     STATUTORY AUDITORS’ REPORT ON THE 2014 HALF-YEARLY FINANCIAL INFORMATION  This is a free translation into English of the statutory auditors’ review report on the half-yearly 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-yearly management 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 your general assembly and in accordance with the requirements of article L.451-1-2III of the French Monetary and Financial Code ("Code monétaire et financier"), we hereby report to you on:    *the review of the accompanying condensed half-yearly consolidated     financial statements of Groupe Eurotunnel SA, for the period from 1     January 2014 to 30 June 2014,   *the verification of the information presented in the half-yearly     management report.  These condensed 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 condensed half-yearly consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 - standard of the IFRSs 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 management report on the condensed half-yearly consolidated financial statements subject to our review. We have no matters to report as to its fair presentation and consistency with the condensed half-yearly consolidated financial statements.  The statutory auditors Paris La Défense, 21 July 2014      Courbevoie, 21 July 2014 KPMG Audit                               Mazars Department of KPMG S.A.                                                                                     Fabrice Odent                            Jean-Marc Deslandes Partner                                  Partner                                            Eurotunnel Contacts: For UK media enquiries: John Keefe, 44 (0) 1303 284491 press@eurotunnel.com or For investor enquiries: Jean-Baptiste Roussille, +33 (0)1 40 98 04 81 jean-baptiste.roussille@eurotunnel.com or Michael Schuller, +44 (0) 1303 288749 Michael.schuller@eurotunnel.com  Contact:  Groupe Eurotunnel SA  The story has been truncated, [TRUNCATED]  
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