FERMENTALG : Half-year results and publication of the 2017 half-year financial report

Libourne – 11 September 2017 – Fermentalg, France's market leader in microalgae production for the nutrition and health industries, has announced that its 2017 half-year financial report is now available to the public and has been filed with the French market authority, the Autorité des marchés financiers (AMF).

As indicated in the Group's half-year results press release published on 20 July 2017, Fermentalg's gross cash position amounted to €10.2 million at 30 June 2017, versus €15.7 million at end-2016 and €12.7 million at end-March 2017.

The slowdown in cash expenditure is in line with forecasts, and comes on the back of controlled spending, notably through cuts in administrative costs (primarily fees), as the Group prepares for its future industrial deployment. Operating income for the period came in at a negative €3.1 million, compared with a negative €2.8 million for the first half of 2016 and a negative €4.9 million for the second half of 2016.

The second half of 2017 will see Fermentalg focus on signing new distribution contracts and the first sales for DHA350, which is the first product to be marketed by the Group.

Furthermore, the major contract announced today with the world leader in food colorings, DIC Corp., should lead to an acceleration in Fermentalg's expansion on the natural pigments market. Backed by Fermentalg's historical shareholders, the new alliance should also enable the Group to strengthen its financial resources in order to underpin its development in the years ahead (see press release published today).

Fermetalg's financial report can be downloaded from the Group website.

About Fermentalg

Fermentalg is the French leader in microalgae. Based in Libourne (Gironde), the company produces oils, pigments and proteins through the bio-industrial exploitation of microalgae. Its primary markets are the human nutrition and animal feed sectors as well as the health industry. Fermentalg shares are listed on Euronext in Paris (FR0011271600 - FALG). For more information, visit the Fermentalg website at: www.fermentalg.com.

Press Relations:
Investor Relations:

ACTUS finance & communication

Alexandra Prisa

Tel: +33 (0)1 53 67 36 90

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ACTUS finance & communication

Jérôme Fabreguettes-Leib

Tel: +33 (0)1 53 67 36 78

[email protected]

Comprehensive income statement

(€ thousands)

First-half

2017

Full-year 2016

First-half

2016

Revenue

0

137

172

Other income from operations

336

568

466

Production costs

(485)

(133)

0

Research and development expenses

(1,588)

(2,566)

(1,196)

Administrative and sales expenses

(1,619)

(4,250)

(1,949)

Other operating income and expenses

0

0

0

Operating income before share-based payments

(3,356)

(6,244)

(2,507)

Payroll expenses linked to share-based payments

(18)

138

(8)

Other non-recurring operating income and expenses

241

(1,594)

(284)

Operating income after share-based payments

(3,133)

(7,700)

(2,799)

Income from cash and cash equivalents

134

328

209

Cost of gross debt

(38)

(70)

(32)

Cost of net debt

96

258

177

Other financial income and expenses

(12)

(61)

(2)

Net tax expense

0

(67)

0

Consolidated net income

(3,050)

(7,570)

(2,624)

Non-controlling interests

2

11

0

Consolidated net income (Group share)

(3,048)

(7,559)

(2,624)

Other comprehensive income

0

0

0

Comprehensive consolidated net income

(3,050)

(7,570)

(2,624)

Non-controlling interests

2

11

0

COMPREHENSIVE CONSOLIDATED NET INCOME (GROUP SHARE)

(3,048)

(7,559)

(2,624)

Consolidated net earnings (loss) per share (in euros)

-0.25

-0.63

-0.22

Consolidated diluted net earnings (loss) per share

(in euros)

-0.25

-0.62

-0.22

Balance sheet

(€ thousands)

30 June 2017
30 Dec. 2016
30 June 2016

ASSETS

Goodwill

0
0
0

Intangible assets

7,408
6,020
4,925

Property, plant and equipment

17,245
17,613
14,884

Non-current financial assets

133
140
132

Deferred tax assets

3,236
3,236
3,302

TOTAL NON-CURRENT ASSETS

28,022
27,009
23,244

Inventories

683
558
0

Client receivables

17
7
55

Corporate income tax receivables

0
0
0

Other receivables

2,718
2,814
3,624

Other non-financial current assets

0
0
0

Cash and cash equivalents

10,248
15,707
22,273

TOTAL CURRENT ASSETS

13,666
19,086
25,952

TOTAL ASSETS

41,688
46,095
49,196

LIABILITIES

Capital

484
484
484

Premiums

40,549
50,289
50,289

Reserves and retained earnings

(4,389)
(6,582)
(6,449)

Comprehensive net income

(3,047)
(7,559)
(2,623)

Shareholders' equity (Group share)

33,597
36,632
41,701

Non-controlling interests

(45)
(43)
17

TOTAL SHAREHOLDERS' EQUITY

33,552
36,589
41,718

Borrowings

3,386
3,348
2,933

Retirement benefit obligations

64
64
65

Provisions for non-current risks

0
0
355

Other non-current liabilities

0
0
0

Affiliated companies

0
0
0

Deferred tax liabilities

0
0
0

TOTAL NON-CURRENT LIABILITIES

3,450
3,412
3,353

Bank overdrafts

0
0
0

Current accounts

0
0
0

Other debt

0
0
0

Provisions for current risks

301
590
0

Corporate income tax liabilities

0
0
0

Trade payables

1,704
3,175
1,602

Other current liabilities

2,681
2,329
2,523

TOTAL CURRENT LIABILITIES

4,686
6,094
4,125

TOTAL LIABILITIES

41,688
46,095
49,196

Statement of cash flows

(€ thousands)

First-half

2017
Full-year

2016
Full-year

2015

Comprehensive net income

(3,050)
(7,570)
(5,295)

Depreciation, amortization and provisions

(excluding provisions against current assets)

580
1,840
992

Expenses on share-based payments

18
(138)
117

Other computed expenses

0
0
0

Change in deferred tax

0
66
0

Share in income of companies accounted for by the equity method

0
0
0

Gains and losses on disposals

(1)
235
0

Share in subsidies

0
0
0

Cash flow

(2,453)
(5,567)
(4,186)

Cost of gross debt

34
70
56

Tax

0
0
0

Cash flow before cost of net debt and taxes

(2,419)
(5,497)
(4,130)

Tax

0
15
0

Change in inventories and consumables

(125)
(373)
12

Change in client receivables

(10)
509
(486)

Change in trade payables

(1,492)
1,165
1,078

Change in other current assets and liabilities (a)

126
712
(279)

Change in working capital from/(used in) activities

(1,501)
2,028
325

NET CASH FLOW FROM/(USED IN) OPERATIONS

(3,920)
(3,469)
(3,805)

Production of fixed assets (capitalized R&D)

(1,674)
(2,460)
(2,039)

Share of subsidies and research tax credit linked to development

projects underway

267
595
739

Acquisitions of other property, plant and equipment and intangible assets

(483)
(6,848)
(8,407)

Change in amounts payable on non-current assets

340
(304)
(264)

Acquisitions of financial assets

0
0
(1)

Disposals of other property, plant and equipment and intangible assets

2
0
5

Disposals of financial assets

7
211
4

Cash linked to the acquisitions and disposal of subsidiaries

0
0
0

NET CASH FLOW FROM/(USED IN) INVESTMENTS

(1,541)
(8,806)
(9,963)

Capital increase linked to parent company

0
0
727

Capital increase linked to subsidiaries

0
0
49

Acquisitions and disposals of own shares

(3)
(7)
(8)

New borrowings and other debt

0
332
889

Repayments of borrowings and other debt

0
0
0

Change in current accounts

2
51
(54)

Interest on borrowings and debt

0
0
0

NET CASH FLOW FROM/(USED IN) FINANCING

(1)
376
1,603

Change in cash and cash equivalents

(5,462)
(11,899)
(12,165)

Opening cash (1)

15,708
27,607
39,772

Closing cash (1)

10,246
15,708
27,607

(a) o/w change in research tax credit:

(500)
1,312
(1,347)