| (in millions of euros) | June 30, 2020 | December 31, 2019 |
|---|---|---|
| Financial debt (long- and short-term) | Financial debt (long- and short-term) June 30, 2020 6,527 | Financial debt (long- and short-term) December 31, 2019 5,888 |
| Fair value of hedging derivatives on the 2021 and 2024 Eurobonds(1) | Fair value of hedging derivatives on the 2021 and 2024 Eurobonds (1)June 30, 2020 169 | Fair value of hedging derivatives on the 2021 and 2024 Eurobonds (1)December 31, 2019 112 |
| Fair value of hedging derivatives on the 2025, 2028 and 2031 Eurobonds(1) | Fair value of hedging derivatives on the 2025, 2028 and 2031 Eurobonds (1)June 30, 2020 214 | Fair value of hedging derivatives on the 2025, 2028 and 2031 Eurobonds (1)December 31, 2019 87 |
| Fair value of hedging derivatives on medium-term syndicated loans(1) | Fair value of hedging derivatives on medium-term syndicated loans (1)June 30, 2020 - | Fair value of hedging derivatives on medium-term syndicated loans (1)December 31, 2019 0 |
| Fair value of derivatives hedging intra-group loans and borrowings(1) | Fair value of derivatives hedging intra-group loans and borrowings (1)June 30, 2020 54 | Fair value of derivatives hedging intra-group loans and borrowings (1)December 31, 2019 39 |
| Total financial debt including market value of the associated derivatives | Total financial debt including market value of the associated derivatives June 30, 2020 6,964 | Total financial debt including market value of the associated derivatives December 31, 2019 6,126 |
| Cash and cash equivalents | Cash and cash equivalents June 30, 2020 (3,743) | Cash and cash equivalents December 31, 2019 (3,413) |
| Net financial debt | Net financial debt June 30, 2020 3,221 | Net financial debt December 31, 2019 2,713 |
| Debt/equity (including minority interests) | Debt/equity (including minority interests) June 30, 2020 0.46 | Debt/equity (including minority interests) December 31, 2019 0.37 |
(1) Carried on the consolidated balance sheet under “Other receivables and current assets” and/or under “Other payables and current liabilities”.
Net financial debt amounted to euro 3,221 million as of June 30, 2020 compared to euro 2,713 million as of December 31, 2019. The Group’s average net debt in H1 2020 amounted to euro 3,684 million compared to euro 550 million in H1 2019. The increase in average net debt reflects the financing linked to the acquisition of Epsilon, for USD 4.5 billion.
Net cash flow from operations resulted in a surplus of euro 31 million in the first six months of 2020, after an outflow of euro 89 million for the corresponding period in the previous year. Income tax paid totaled euro 74 million in 2020 compared with euro 190 million in 2019. Working capital requirements deteriorated by 853 million euro, vs. a deterioration of 826 million euro in 2019.
Net cash flows from investing activities used up euro 115 million in H1 2020 compared with outflow of euro 83 million in H1 2019. Net investments in property, plant and equipment and intangible assets amounted to euro 73 million (including investments relating to the “All in One” real estate plan) compared with euro 65 million in 2019. Net investment in the acquisition of subsidiaries amounted to euro 35 million compared with euro 30 million in 2019.
Financing operations represented a surplus of 339 million euro at June 30, 2020, after a surplus of euro 1,707 million at June 30, 2019. The surplus comes mainly from the issuance in June 2019 of three Eurobonds -totaling euro 2.3 billion- subscribed in connection with the acquisition of Epsilon (which were only paid on July 1, 2019).
In total, the Group’s cash position net of credit balances on bank accounts increased by euro 330 million in the first half of 2020, compared with a n increase of euro 1,537 million over the corresponding period in the previous year.
Including lines of credit that can be drawn down on short notice, the Group’s available liquidity amounted to euro 5,369 million at June 30, 2020 compared to euro 6,045 million at December 31, 2019.
The Group’s free cash flow, before change in working capital requirements, is euro 495 million, equivalent when compared to last year (euro 491 million). The change in working capital requirements is euro 853 million in H1 2020, compared to euro 826 million in H1 2019. Free cash flow after change in working capital requirements is therefore euro -358 million, a slight decrease compared to last year (euro -335 million).
