Half-Year Financial Report - For the Six Months Ended June 30, 2020

Chapter 2. Consolidated interim financial statements half-year ended june 30, 2020

Note 4 Personnel costs and headcount

Personnel costs include salaries, commissions, employee profit sharing, vacation pay and bonus estimation. They also include expenses related to share-based payments (stock option and free share plans) and expenses related to pensions (excluding the net effect of unwinding the discount on benefit obligations, which is included in other financial income and expenses). The increase in personnel costs is due to Epsilon acquisition on July 1, 2019. This also explains the increase in headcount as of June 30, 2020 compared to June 30, 2019.

(in millions of euros)

June 30, 2020

(6 months)

June 30, 2019

(6 months)
Compensation

Compensation

June 30, 2020

(6 months)

(2,573)

Compensation

June 30, 2019

(6 months)

(2,241)

Social security charges, including post-employment benefits

Social security charges, including post-employment benefits

June 30, 2020

(6 months)

(482)

Social security charges, including post-employment benefits

June 30, 2019

(6 months)

(427)

Share-based payments

Share-based payments

June 30, 2020

(6 months)

(28)

Share-based payments

June 30, 2019

(6 months)

(37)

Temporary employees and freelancers

Temporary employees and freelancers

June 30, 2020

(6 months)

(141)

Temporary employees and freelancers

June 30, 2019

(6 months)

(174)

Total

Total

June 30, 2020

(6 months)

(3,224)

Total

June 30, 2019

(6 months)

(2,879)


/ Breakdown of headcount at June 30 by geographic region

June 30, 2020December 31, 2019June 30, 2019
Europe

Europe

June 30, 2020

21,026

Europe

December 31, 2019

21,762

Europe

June 30, 2019

21,921

North America

North America

June 30, 2020

25,846

North America

December 31, 2019

27,098

North America

June 30, 2019

20,933

Latin America

Latin America

June 30, 2020

6,116

Latin America

December 31, 2019

6,081

Latin America

June 30, 2019

6,045

Asia Pacific

Asia Pacific

June 30, 2020

24,202

Asia Pacific

December 31, 2019

24,431

Asia Pacific

June 30, 2019

21,017

Middle East & Africa

Middle East & Africa

June 30, 2020

3,597

Middle East & Africa

December 31, 2019

3,863

Middle East & Africa

June 30, 2019

3,937

Total

Total

June 30, 2020

80,787

Total

December 31, 2019

83,235

Total

June 30, 2019

73,853


Note 5 Depreciation, amortization and impairment loss

(in millions of euros)

June 30, 2020

(6 months)

June 30, 2019

(6 months)
Amortization of other intangible assets (excluding intangibles arising from acquisitions)

Amortization of other intangible assets (excluding intangibles arising from acquisitions)

June 30, 2020

(6 months)

(24)

Amortization of other intangible assets (excluding intangibles arising from acquisitions)

June 30, 2019

(6 months)

(15)

Depreciation of property, plant and equipment

Depreciation of property, plant and equipment

June 30, 2020

(6 months)

(77)

Depreciation of property, plant and equipment

June 30, 2019

(6 months)

(61)

Amortization of right-of-use assets

Amortization of right-of-use assets

June 30, 2020

(6 months)

(200)

Amortization of right-of-use assets

June 30, 2019

(6 months)

(197)

A mortization expense (excluding intangibles arising from acquisitions)

A mortization expense (excluding intangibles arising from acquisitions)

June 30, 2020

(6 months)

(301)

A mortization expense (excluding intangibles arising from acquisitions)

June 30, 2019

(6 months)

(273)

Amortization of intangibles from acquisitions

Amortization of intangibles from acquisitions

June 30, 2020

(6 months)

(142)

Amortization of intangibles from acquisitions

June 30, 2019

(6 months)

(27)

Impairment of right-of-use assets

Impairment of right-of-use assets

June 30, 2020

(6 months)

(231)

Impairment of right-of-use assets

June 30, 2019

(6 months)

(90)

Impairment of equity investments

Impairment of equity investments

June 30, 2020

(6 months)

-

Impairment of equity investments

June 30, 2019

(6 months)

(23)

Total depreciation, amortization and impairment loss

Total depreciation, amortization and impairment loss

June 30, 2020

(6 months)

(674)

Total depreciation, amortization and impairment loss

June 30, 2019

(6 months)

(413)


Amortization of intangibles arising from acquisitions

From July 1, 2019, brands are amortized over a period of eight years, corresponding to their estimated period of use. The amortization expense for brands represented euro 48 million in the first half of 2020. In the first half of 2019, the expense was nil since the brands began to be amortized on July 1, 2019.