Ladies and gentlemen, good morning. I'd like to welcome you to this meeting presenting our half yearly results at June 30th 2019, Batiste Jean, your Administrative and Financial Director on my right will present the results and of course, on the left, you know Manuel Anderson, who's in charge of for Investor Relations, all 3 of us will be available to take your questions after the presentation. Before that, I'd like to say a few words about the financial performance during the first half and express my confidence in the outlook for 2019 and also beyond. This first half confirms the relevance of our growth strategy, the first half twenty nineteen was characterized, first of all, by a sustained pace acquisitions, good level of activity in our core business and of course, solid operational results. On the international front, CECE took a leading position in South Africa.
CECE strengthened its position in Peru, and we established ourselves in Italy our return on loan to these 3 acquisitions in terms of business on its historic scope, it achieved quality growth in France as well as internationally and only our pollution removal activities in France are down over last year, but that's temporary and was set to recover that makeup for that in the second half. We were buoyed by the activity of the circular economy and of our revenue, the results the operating results demonstrates so the good trend of our profitability over the midterm, this high profitability is the reflect our positioning on value added recovery and waste processing and of course, our innovation capacity, strengthening our activity with clients. It also reflects the daily work of our teams to boost our productivity and the expected increase in financial results financially now, Seche Environement confirmed its capacity to generate significant operating free cash flow to fund its acquisitions. We have a solid, liquid and flexible balance serving our growth strategy with controlled debt ratios given the active firm acquisition policy during the first half. Well, as I recalled earlier, this first half was active in strategic acquisition internationally.
The first is the control of Canet in Peru. It's a company. We were minority shareholders since 2015, and we now hold 100%. These companies are very active in pollution removal, these are works that are not linear over the year and the delay in the first half doesn't change our expectations full year. This company has a high potential in the processing of hazardous waste, in particular medical waste.
It has international standard equipment to serve the large industrial clients in that country, multinationals who expect an offer with the highest standards, Cannae offers commercial and industrial complementarity with another company called Taris, RAS, which is another subsidiary that we own in Peru. Tariffs is an active company in the storage of hazardous waste, and we're now going to work to build synergies between those two companies because we own 100% of those two companies. Turning to South Africa, we acquired Inter Waste, number 2 in Waste Management in South Africa. We want to make it a technological and industrial leader in this rapidly growing market and undergoing regulatory change in South Africa, we serve 1st and foremost industry clients. They're again large international corporations in the Mining Commodities or Energy Sector, these are customers that we know well, we want to offer them the best in terms of circular economy solutions and sustainable our business, Inter Waste, works with large municipalities.
This year, we will support it on its major expansion projects such as, for example, setting up a facility for recovering and processing waste at Muscle Bay. Muscle Bay is right in the south between Port Elizabeth and Cape Town. It's an operation set to get underway in the second half of this year should contribute to the growth in activity and results as of T20, for Inter Waste, we want 2019 to be a year of integration and strategic positioning. Its economic and financial performance in the first half reflect a base effect with a first half twenty eighteen that was high. We're very confident in the ability of Interways to replicate in 2019 the performance achieved in 2018, South Africa is for us, a very promising market.
We want to accelerate our growth in these regions in South Africa and in neighboring countries. For that, we've set up a new subsidiary, which will the bridgehead of our operations in Southern Africa, CECE South Africa equipped with human technological and financial resources in order to accelerate our expansion across Southern Africa. It's a new subsidiary that will carry forward development plans complementing InterWaste, in the first half is the acquisition of a company called Mekomer in Italy. Mekomer is a specialist in hazardous waste, only hazardous in Northern Italy in the Milan region, not far from Sales. There again, we're moving closer to industry clients that we know well, in particular, the world of liquid waste from the chemical, pharmaceutical and energy industry, but also solid waste too.
Now this acquisition is a key milestone to position us as a European player in the secular economy in the market for hazardous Waste, Mekome is a company growing strongly. It's also very profitable. Since the 1st April,
we
own 90%. Our partners, Stefano Ferrante, who's the CEO, is also the head of the the son of the founder continues to be at our side. We're working on accelerating its I must say how pleased I am to have achieved these fine transactions that strengthens the positioning of CECE Environement on international markets that are growing strongly and profitably. In summary for this first half, I say that we confirmed our trajectory of sustainable and profitable growth and that this first half demonstrates our financial solidity with the balance sheet able to carry forward our growth investments and successive acquisitions in France and internationally, markets have trended well, in particular, 3 markets benefiting from an ever sustained demand for our know how, in particular in recovery and processing. As I said, pollution removal activities are slightly down versus last year, but we expect to catch in the second half, markets with municipalities remain buoyant owing to the regulations linked to the circular economy in this area, our technological edge in sorting and energy recovery strengthens our activity with clients who are mindful of municipal environment protection in most of our activities, we've seen growth in volume and price.
In France, these positive commercial effects that are sustainable have strengthened the robustness of our operating margins mid even if these margins suffered one off costs in the first half linked to acquisitions and a significant increase in local taxation internationally. The commercial acquisitions in Chile, Mexico confirmed the ramp up of our subsidiaries in this perimeter, both in terms of business and profitability, I mentioned my confidence in the ability of the scope recently acquired to grow its margins. The operating profitability is trending well across all our scopes in terms of our fundamentals, all in all, we're posting a strong financial structure that is flexible and liquid, our net debt is under control. Its development represents the funding of our international strategic acquisitions. On this first half, Serves Cherenvironmar confirms its ability to generate free cash flow that is abundant and recurring.
Our free cash flow is the cash flow that remains available to fund growth investments, free cash flow generation will allow us to return rapidly to our objectives of financial leverage of 3 times operating income in the middle of the cycle. We have strong financial growth driving our strategy for organic and external growth. So our objectives are fully confirmed for 2019. The year 2019 we'll be compared in France to a 2018 year that was particularly promising for the second half 2019, we anticipate economic performance that confirms that. In the first half, in France, we expect financial dynamics to be sustainable, we expect to return to a high level of activity and service activity, notably pollution removal, internationally, the scope recently acquired we'll continue to ramp up.
In Peru, can I? The new contracts Harold, strong increase in business in the second half twenty nineteen will allow us to outsource in Peru, Cannae performance of the same order of 2018. South Africa Inter Waste is set to see an acceleration in its growth given the start up of industrial contracts that had been delayed from the Q1, in Italy, Mecco Merani contributed 1 quarter in the first half, is set to continue its strong growth and boost its contribution and performance in the second half. All in all, we're confident in our ability to grow all our results at constant scope in 20 '19 versus 2018, we're also confident in our ability to reach even exceed this year certain of the economic and financial targets that we set in June 2018 for the year 20 2024, this reason I wanted our new strategic objectives the 2022 be presented in terms of operating and financial performance. This will take place at an Investor the date to be held on December 17, 2019.
Of course, you're all invited. That will confirm our profile of sustainable, profitable and value creation growth. Over to Baptiste for a more detailed presentation of our business, of our results of our financial situation at June 30, 2019. Over to you, Baptiste.
I can't find my pointer, but let me okay, we're going to be on Slide 7, the key figures for first half twenty nineteen, a lot Joelle said a lot what I wanted to say, but I'll try to be as clear as I But there are 2 problems. First of all, IFRS 16, you know the accounting standards that have to do with operational leases, which to a certain extent are factored into the 2019 figures indicated, but not in the first half twenty eighteen, obviously. And then there are the scope effects that Joel indicated that is acquisitions which have an obvious impact on our results, Comer, Canai and Inter Waste. On H1 twenty nineteen, CANAI in Peru and Inter Waste are accounted in H1 twenty nineteen at 100%, whereas Mekom Air only the results only affect the second half of the half year of the second quarter that is. Now when we look at the key figures, let's begin with €319,800,000 UP 18.8 Percent contributed revenue strengthened by the international acquisitions over the period.
At a constant perimeter, the contributed figure would be EUR 286,600,000, a rise of 3.2 percent confirming the organic growth dynamic of our group over in the main markets in France and abroad in France, an organic growth of 1.3% and abroad organic growth of 18%. So a very strong dynamic internationally and a moderate, but nonetheless positive dynamic in France. When it comes to the on 31 June 2019, 63.6% is the EBITDA, 63.6% rather, 19.3% of contributed revenue, that's a gross change of +23 percent over the previous year. That EBITDA was impacted in 2019 by IFRS 16 to the tune of €4,300,000 and by the scope variations as well on a like for like basis, an excellent EBITDA for the first half of twenty nineteen that is up 1.7%. The current operating results EUR 22,100,000 up 6.9% over the previous year, had a very low impact from IFRS.
The net result, a group share net income group share euros 7,600,000,000. The H1 2018 was marked by a non recurrent effect that is the renunciation by the administration to raise its property tax calculation basis for 20 2018, it's €1,800,000 that was impacted in positive terms. In S1 2018, given H1 2019 and the non recurring elements that have an impact on the first half of twenty nineteen, we think that the net income group share will be higher then that of H1, 2018, EUR15,600,000 free cash flow is up strongly €35,000,000 that's operating cash flow after the compulsory expenses such as interest recurring CapEx and taxes, that strong rise shows our ability to manage operations and to define investment on the basis of cash generation and that amount of €35,000,000 shows the ability and the capacity of to remove debt in the long term, net banking debt, €390,400,000 You find the IFRS amount in our financial reports. This is basically so much for the key figures. Let us now take a closer look at them.
We'll begin with the contributed revenue. While we break down the contributed revenue, up 19%. We have, 1st of all, the scope effect, EUR 43,200,000. As I said, Meikomera was only consolidated in the 1st second quarter, then up 26% over the second half 2018, Interways, EUR 32,000,000 and Canai, EUR 900,000. Those are all of the scope effects.
Organic growth of €9,000,000 which means income organic income up by 3.2%. Growth in the hazardous and non hazardous waste, hazardous waste to stream, which represents 56% of the consolidated revenue up 23% when compared with H1 2018 and at constant scope, up 4.5%, that is to say a very strong dynamic on hazardous waste with industrial markets that are trending well both in volume and price terms And then benefited some of our activities benefited from that, particularly processing, whereas as Joel said, we've observed when it comes to services, some delays in our projects in France and internationally. When it comes to non hazardous 35% of the consolidated contributed revenue, we have a growth of 11.9% in published data and organic growth of 1.2%. Of course, we benefited from the Congratulations on the circular economy that helped to buttress our recovery and processing operations. We've also seen delays in service activities, particularly deep pollution, both in hazardous and nonhazardous.
When it comes to activities per quarter, Slide 9. We have what you'll find on this slide, the quarter by quarter development, you have in both dangerous, hazardous and nonhazardous. What's important is that whether it be the Q1 or the Q2, albeit hazardous or nonhazardous activities, the two streams both contribute to growth and we've observed a solid growth in France and abroad, particularly internationally, we're in our historic scope particularly in hazardous waste, a very dynamic growth. On the following slide, you have the breakdown between France and international. International, what's interesting to note is that revenue is 80 €80,000,000 in 2019 compared to €31,400,000 a year earlier, 24% revenue in the first half is internationally.
It was 11% some in the previous year, so there's a sharp growth in our international activities due to the scope effects, as we've said, MACOMARE 10,000,000 strong growth, more than 26% compared to the last There's a commercial dynamic, which is very strong. We're not drawing all the benefits yet from the synergies between the groups, but we can see a dynamic, which is very solid, intra waste, as we expected, the first half is slightly lower EUR 32,000,000 when compared with H1 2018. This is marked by the level of activity that is that was high, but it was particularly high in H1 2018, particularly on specific asbestos contracts that were in H1 2018 and it will be in to 2019, the asbestos contracts are very important for Entra Waste and they are contributive. They are recurrent. But from time to time, the results can be found in H1 and other years in H2.
We think therefore that in 2019 when it comes to Intraways, the results will be in line with those of 2018 on the basis of the contracts that exist that have been identified, can I EUR €900,000 in revenue, major delays in deep in particular activities such as de pollution that was offset by the start up in the second half of significant contracts, depollution contracts? In our historical scope, we have a very good level of activities, particularly in Latin America. I would like to mention at least to Chile with activities on hazardous waste storage, which is very high in 2019 and PCB activity in Mexico with a strong Commercial dynamic chemical cleansing, which is very dynamic in H1 2018 continues to be dynamic this year, in terms of activity, H1 twenty nineteen's results are in line with those of H1 2018. When it comes to France, we have a revenue of €249,500,000, up 1.3% over the period. We have activities of energy recovery in nonhazardous waste that are very Dynamic and processing activities that benefit from solid industrial markets.
With as I said, a specific delay on service activities. Let me now say a few words about activities processing and recovery that are contributed to revenue growth in H1 2019. Processing activities represent 47.9% of revenue. That growth is 4.1% in a like for like basis for the first half of twenty nineteen. In France, there are processing activities that are up 1.2% and a benefit from favorable market conditions, particularly when it comes to price, with a good trend in the industrial markets, that performance involves processing volumes that are lower in H1 2019 than in H1 2018, H1 2018 was very dynamic when it comes to processing internationally, as we said, there's still a strong dynamic for commercial conquest, particularly in Latin America.
Therefore, there's a growth in very strong growth in processing activities. When it comes to recovery, there's a rise in energy recovery activities, particularly in nonhazardous, on 31st June 2019, those activities represented 18.3% of other contributed revenue, when it comes to services on a like for like basis, it's minus 4.1%, as I said, mainly due to specific delays in Depollution work in France and internationally. Those services activities are up to 33.7% of contributed revenue, so much for our business, let me now go on to results and profitability. Let's begin with EBITDA up 23%, Slide 12. We have an EBITDA which is on 31st June, EUR 63,600,000.
When we break down the main effects, first of all, there's an IFRS 16 effect, €4,300,000 there's a scope effect, EUR 6,600,000, of course, mainly from interwaste and Mekomera. And when we look at organic growth, we have commercial effects that are positive, a price effect and a positioning effect on high added value activities. And the reason I make that point is that you can see that we're not just speaking about price rises also in the framework of recovery and the mix of waste and processing, we have more and more high added value activities, which means that we have the possibility of increasing prices and added value. So when we look at those net effects, net of the variable expenses and for a global analysis of operating margins, we have operating margins at €8,400,000 in our historic scope and we have changes in structural costs and various other expenses, it's €7,600,000 on the whole, but there are many different things in this EUR 7,600,000. If you look at fixed charges, fixed expenses, they're not necessarily recurrent.
So let me, if I may, give you a detailed breakdown of these different expenses. We have, first of all, the increase in expenses due to property taxes and specific professional tax There was a bonus of EUR 4,000,000 in 2018. There is an increase of those Expenses in H1 2019, €1,500,000 So there's a difference of €2,900,000 between the 2. All of these additional charges are annual, even if they are accounted for in the first half, there won't be any change in that in the second half 2019 that's important to keep in mind. Secondly, specific expenses due to acquisition costs, €1,200,000 which are in fact expenses that are not recurrent, which will help us to prepare for greater profitability tomorrow when we create synergies with our recently acquired activity.
Local restructuring cost to prepare tomorrow's growth for 1,600,000, Joel mentioned the fact that we have an African operation sending expertise to develop our no hardware maintenance and repair costs in the first half of twenty nineteen on several incinerators speakers, as we presented to you during the annual results, a significant stoppage and investments in the Salas incinerator in Q3, Q4 and of course, maintenance work on the other incinerators during the first half in order to offset the stoppage of Salas during the second half shown here is EBITDA. Here, you have a different split, France versus International with the various impacts by activity, I won't say any more than that at the risk of repeating myself. Let's move straight to current operating income at June 30, CRI, EUR 22,100,000 at 6 0.7% of contributed revenue. This increase represents a one off effect linked to the application of IFRS, EUR 16,300,000 scope effect for EUR 2,700,000 that's the contribution of can I enter Waste and Micom Air? And this difference reflects the increase in comparable EBITDA, offset by contributions to amortizations and provisions, net of IFRS 16, that's why we indicated both France and International, the amortization linked to IFRS 16, we have additional amortization in France linked to the creation and amortization of storage units at costs it's higher than previously.
When we move down the P and L between operating income and net income. Operating income is in line with current operating income. We have a financial expense that is up €6,500,000 H1, 2018 to 8.4 €1,000,000 this year, €500,000 linked to IFRS. The debt recovery in recently acquired affiliates, that's debt in South Africa and in Peru. That debt rates that are very high linked to local interest rates in those countries were closer to 9% interest rates than rates currently practiced in Europe, an increase in the debt cost linked acquisition, euros 600,000 Nevertheless, we note that the average debt maturity went for 3.6 years in June 2018 to 6 years mid-twenty 19.
In terms of corporate tax, we have an IFRS estimated tax of €5,000,000 This apparent high corporate tax rate for H1 twenty nineteen will give rise to optimization in going into H2 2019, this brings us to net income group share at €7,600,000 for H1 2019. In terms of CapEx, controlled industrial investments in the first half of twenty nineteen, we're seeing as regards recurring CapEx that represents 6.1% of contributed revenue versus 7.1% at June 30, 2018, this stable level, because we go from 8 point EUR 2,000,000,000 to EUR 1,200,000,000 recurring CapEx to maintain the industrial capability means that we can redeploy capacity on nonrecurring CapEx that create additional value principally in the treatment activities, the aim being, of course, to improve the operational efficiency of our treatment unit as regards free cash flow, the amount was mentioned. Of course, free cash flow it's sharply up, stands at €35,000,000 That's a cash conversion rate sharply up at 55% primarily linked to the increase in the EBITDA and good CapEx control and an improved in working capital requirement linked both to the improvement of receivables in the clients line item because €5,000,000 linked to the acquisition of Micomera. When we complete on net financial debt.
As you can see, we go from net financial debt EUR 317,000,000 to EUR 390,000,000 linked to the free cash flow of EUR 35,000,000 non recurring CapEx EUR 9,600,000 and primarily, net financial investment, EUR 69,000,000 acquisitions, debt effects in acquired companies of €25,800,000 turning now to the financial structure. As was mentioned by Joel, but it's a key component in terms of credit quality, we have a very good liquidity situation. Cash position, €94,000,000, €289,000,000 key positions are very strong liquidity situation. There was a refinancing in May for €84,000,000 at very useful conditions, €80,000,000 at a rate of around 3%, which extended the millions at a rate of around 3%, which extended the maturity to 6 years and to no longer have maturing debt in the coming years. Also very positive developments in terms of credit because as you know, most of the banks today, no, there was a 5 basis point bonus linked to corporate social see improvements in improved ESG rating by Eti Finance, an external company.
This brings us to financial leverage, which is a key metric for us in terms of financial policy. At 3.2, as I indicated, McCormick was only included in the second quarter of goal is 3% in mid cycle. So overall, if and given our expectations, we're fully in line with the ratio cycle target of 3% that we have mid term. Outlook in 2019, I'll be very quick because Joel has described the objectives. We expect organic growth driven by international business with in France maintaining a good level of activity, we had activity that was sustained in 2018, so we have a demanding 2018 baseline.
But given the way industrial markets are trending, we expect to continue to see modest growth in France, but quality growth, international, we expect the ramp up of for acquisitions to kick in on the scope acquired in 2017, we delivered excellent results into 2018. In H1 2019, we expect to increase and continue to maintain this good momentum in Latin America and in Chemical Cleansing in Spain, we expect a ramp up as of H2, stemming from recent acquisitions and for Latin America, a return of Cannae two level of business in line with 2018. In South Africa 2019, on a par with 20 2018, we keep exactly the same target that we indicated for the annual results. 2019 on a par with 2018, and we're currently preparing the next stage for 2020, where in South Africa, all of the things being equal because, of course, there are cyclical effects that can occur, we expect positive growth of operations in South Africa. Rest of the world, as I indicated, in spite of the fact we have a demanding 2018 baseline.
We expect sustained activity in 2019. As regards operating income, well, obviously, in France, we have the implementation of the operational efficiency planned as we indicated at the Investor Day, we'll update you on that at the end of the year. At the next Investor today, operational efficiency and cost reduction policy is a priority. International, we expect a further increase in contribution to operating income and historic scope plus new scope, growth CapEx, this is a slide that we presented. It's an important point on France, implementation of the operational efficiency plan generates 1 off for CapEx, the revamping of the Salas 2 incinerator, that significant CapEx, EUR 7.7 €1,000,000 in H2, the advantage that will boost availability rate as of 2020 and that means increased earnings.
International significant projects, the first PPP in South Africa was mentioned, €11,000,000,000 in CapEx 2020, expect to begin in H2 2020. The aim is, of course, to manage our recurring CapEx so as to have availability on these CapEx that above all create value. So in terms of the various targets mentioned mid year, of course, the targets to reach our 2020 targets mentioned at the Investor Day, further targets will be disclosed to you at the Investor Day in December 2019, these will be targets in terms of business growth and profitability in 2022, of course, we're impacted by various factors, the macroeconomic environment today, as I indicated, we're seeing strong industrial markets that makes us confident in 2019 internationally. We're bound to recognize that it's really a mixed bag. The macro environment was pretty poor, even very poor in South Africa in the first half, poor in Peru, but we're managing, as I indicated, to prepare the future and to deliver results.
And we expect in spite of a macro environment that's not favorable to continue to maintain our strong growth across most international geographies with greater contribution from inter waste and cane. Profitability, the issue is obviously that of industrial efficiency in France and the ramp up of international subsidiaries in order to grow our results in 2019 as compared to 2018. Cash management is key in terms financial policy, managing our industrial CapEx, containing those, we're clearly managing. We continue to manage EBITDA minus CapEx with financial leverage target unchanged, that is times 3 EBITDA in mid cycle. That's to say when we've integrated our acquisitions.
So that was the presentation of the results, and we're now happy to take your questions. Thank you.
Are there any questions? Good morning, Nicolas Waijo, Francois Paris. Three questions. The first of all concerns Mako Mayor. Can you please tell us what the fundamentals for the strong growth were, which should continue, perhaps not at the same rate.
And can you, there's about €1,000,000 in revenue in H1 and more than EUR 10,000,000 in H2 because of a certain volatility. And perhaps a word on SENARVAL, are there any impacts of that acquisition for H2?
Mr. Holot,
on make comment, first of all. The activity is very dynamic. It is not linked to volume effects, but rather to the fact that all in all, in Europe, there's a capacity saturation. That's nothing new. Therefore, the capacity to make rate increases because of the particular expertise of Maeko Mer because that's a hazardous waste platform as such.
There are few companies that know how to densify hazardous waste as well as Mercomere does. I said that therefore, it was a very clear commercial dynamic. Today, it's mainly rate increases that Makeover benefited from. But those are rate increases that we can see in the Italian market in general, on your second question now, depollution activities because Cannae it's mainly impacted by the pollution activities. Our activities which are cyclical by nature depends mainly on the projects proposed by Peruvian Industrial There can be a lot of volatility and historically, KNE has experienced a major volatility.
So today in H1, there are only operations proposed by the industrial customers, but there's an increase in activity for this last summer that should have an impact on H2. It all depends on the industrial climate in Peru. Depollution is a spot market. Pollution is in successive at times, there's a lot of pollution in a certain place and then there isn't. So therefore, we can get several deep pollution contracts, but that's seldom the case.
There's usually a bit of a lag between 1 deep pollution project and another, which is a case for H1. Now on your first point, Cenavable that took place went very well. The customer and ourselves, we're pleased with the operations. Subjectively, this was an industrial success operations since August resumed and the operations were acquired and this is very effective. Now what about H2, would that have an impact?
Well, when we restart an incinerator, we're never at the standard level at first, throughout the period of the time in which the incinerator was stopped, we had an EBITDA in activity that were based on nominal terms. There was a nominative EBITDA that would assume that the incinerator was running 100 But when we restarted Incinerator, we can't run it at nominal level from the very beginning. So therefore that restart up is occurring as per the action plan. Nonetheless, it's a gradual start up, so there should be a slight impact on H2 when compared to H1. But the H2 figure would concern real activity whereas the H1 figure concerned the When it comes to Senevao, could you please tell us what its profitability it is in H1, so that we can gauge the risk, can 8,900,000 in revenue, can you give us a greater detail, more granularity when it comes to profits and losses of the three acquisitions for the first half year.
I have some other questions. Sadis, 2, you said that that will have no impact on revenue. The revamping that is of the operation will have no impact. Will it have an impact on COI and operating income? And second and CapEx in South Africa, euros 11,000,000 for the Eden project.
Is this that comprised under future debt or miscellaneous debt. You spoke about 3 times EBITDA. There's an objective, but I'm a bit lost. I'm a bit confused with IFRS. On the one hand, you have an EBITDA, which has the positive impact because of IFRS 16, three times is that EBITDA not taking account of IFRS 16 or taking account of IFRS 16, can you please be a bit more specific?
Let me begin with the last question because it's an important one. We provided that objective of a threefold increase at the last Investor Day without IFRS, so the objective as we said in terms of guidance was 3 times not taking account of IFRS, that's our objective. The 4.3% on the first quarter, you multiply that by 3 and you're not far from the truth. We will of course update those objectives in terms of credit at the Investor Day at the end of the year, I think we've had it simple to give you a guidance on the basis of IFRS because these are I say probably because today when we speak about the net banking debt with a financial covenant that's not taking account of IFRS. And today, our documentation is valid until 2023.
On that basis, we're speaking about documentation without IFRS. I just wanted to make that clear. Now the previous question, South Africa, Eden, that's Debt in the IFRS meaning of the terms that will be part of the IFRS debt. Nonetheless, that debt is without recourse when it comes to the parent company, so it won't have an impact on our financial covenants. Salis II.
The reason I said what I said was that, I mean, we think that there will be a moderate impact on our business, of course, we tried to smooth out the operations over the other incinerators and we think that we will be able to continue to serve our customers and therefore, the impact on revenue it's low on the whole since we have alternative action plans. When it comes to CanE, let me be very clear about this. For us, it is a delay indeed. There's a delay and the depollution work, we're very active, commercially speaking. In order to offset that in H2, so we have a negative result if you look at revenue and structural charges for H1, because we don't have total flexibility, there are some fixed costs.
So therefore, the result is negative for H1. But we think that we will compensate for that in H2. And Seneschal, well, we are not used to providing profitability figures per business unit or per subsidiary. So let me put this in another way. We think that the impact in terms of profitability will be low in H2, because the ramp up will occur over H2, we think it will be fully we'll be fully up to the normative levels by the end of the year.
Thank you. Just a word on international activities and acquisitions, KA running a loss. If it's 10,000,000, I imagine that there's annual expenses which is at least 5,000,000 to 6 1,000,000, no, no. 3,000,000 to 4,000,000? No.
Well, anyway, the loss it's €1,000,000 or €2,000,000 with Canino H1, global I'm not I mean, all I'm trying to do is to understand what sort of recovery can occur in the second half. If you say you're going to catch up, that means you're going to be very profitable in the second half, right? Yes, absolutely. I'm not going to ask you how much, but in South Africa, you're not profitable in H1? Yes.
You said the situation is difficult, but I gave you revenue. For us, what's important is to keep up profitability. You know that profitability EBITDA margin in 2018, well, there was no drop in the EBITDA margin in 2019. Well, what was in 2018, remind me? I think that we already provided that figure.
It was slightly lower than 20%. In McCormere, there will be another quarter. Is there going to be exceptional profitability in the second quarter, I'm not sure I understood your question. We are only consolidating Mercomero for the second quarter. So therefore, in the second half, you will have one more quarter than in the first half.
So will there be exceptional profitability in the second over the Q4, the Q2 of the second half, well, we think that the commercial dynamic will continue in Merkomba and therefore its profitability will as well. Thank you.
Good question. Any further questions, please? Good morning, gentlemen. I'm from Financiere Dussess. I'm discovering your company, and I have two questions.
The first, the share ownership, the shareholder owns 10%. Who's that, ICM? ICM is a financial investor from the Mayen region, okay, who's a long standing shareholder and increases his stake from time to time, who's bought shares in 2019, very good. And my second question in terms of governance, the Board of Directors, Could you say a few words? I mean, how many board members are there?
Are there independent board members? And lastly, please, do you have gender equality, men, women? I mean, there are 40% rules to respect. Answer, yes. We have 10 Board members, 7 are independent, and there are 4 women who sit on the Board of Directors, 4 out of any further good questions, please?