ALTEN (EPA:ATE) - ALTEN: Full-Year 2020 results

Transparency directive : regulatory news

23/02/2021 17:40

PRESS RELEASE
Paris, February 23rd 2021
5:40 pm

                           2020 FULL-YEAR RESULTS

* BUSINESS AND OPERATING MARGIN ON ACTIVITY IMPACTED BY THE HEALTH CRISIS
* 10 ACQUISITIONS IN FRANCE AND ABROAD IN 2020 & 2021

EUR Million                        2019    2020     Y-o-y
                                                    change

Revenue                          2,624.0  2,331.9   -11.1%
- of which France                1,134.5    907.5   -20.0%
- of which International         1,489.5  1,424.4    -4.4%
Operation Profit on Activity       260.8    142.4   -45.4%
As % of revenue                     9.9%     6.1%
Operating Profit                   238.2    119.2   -49.9%
As % of revenue                     9.1%     5.1%
Net profit, Groupe share           164.2     98.0   -40.3%
As % of revenue                     6.3%     4.2%
Free Cash flow                     160.3    246.8   +54.0%
As % of revenue                     6.1%    10.6%
Net cash position                   74.9    195.6  +161.0%
Headcount                         37,200   33,800    -9.1%
Audit in progress

BUSINESS IN 2020 IMPACTED BY THE HEALTH CRISIS: -11.1%

Revenue reaches EUR2,331.9 M decreasing by 11.1% as compared to 2019. On a
like-for-like basis, business decreases by 12.9% (-19.5% in France and -7.9%
outside France) as it is strongly impacted by the health crisis.

The crisis has mainly impacted the Automotive and Civil aeronautics whereas
Rail/Naval, Life Sciences and Energy (Oil & Gas excepted) are strong and still
growing.

Therefore business has significantly decreased in 2020 in the countries where
the Automotive and Civil aeronautics are predominant - such as France, Germany,
Sweden, the US and the UK. On the contrary, performance was satisfactory in
Southern Europe, Switzerland and Asia Pacific.

OPERATING PROFIT ON ACTIVITY: 6.1% OF REVENUE

The operating profit on activity reaches EUR142.4 M (i.e. 6.1% of revenue).
Measures such as partial unemployment, cost management - SG&A, near freeze-up
on hiring, reduction in workforce, etc. - that were undertaken have helped to
limit a further decrease of the operating margin despite some additional costs
caused by the pandemic.

OPERATING PROFIT:

Operating profit reaches EUR119.2 M (i.e. 5.1% of revenue) including EUR7.9 M
of share-based payments and EUR15.3 M non-recurring costs - mainly
restructuration costs (EUR7.0 M), acquisition costs (EUR5.8 M) and costs
associated with tax adjustements (EUR2.5 M).

NET PROFIT, GROUP SHARE:

Financial result accounts for EUR14.1 M mainly thanks to gains on investment
disposals. After taking into account tax expenses of EUR36.9 M, earnings from
equity affiliates of EUR1.4 M and minority interests of EUR0.2 M, net income
equals EUR98.0 M.

NET CASH: EUR195.6 M / GEARING: -16.1%

Cash flow reaches EUR188.7M (including IFRS16 effects), decreasing by 41.1% as
compared to 2019, in line with a declining OPA (-45.4%). WCR decrease equals
EUR168.9 M as a result of reduced customer receivables linked to a decreased
activity and an improved DSO.

Free cash flow reaches EUR295.3M as 12.7% of revenue. Without IFRS16 effects
operational, free cash flow reaches EUR246.8 M i.e. 10.6%, increasing by 54.0%
as compared to 2019 (EUR160.3 M).

After taking into account net changes in scope (-EUR122.2 M), other financial
flows (-EUR3.9 M) and because of the absence of dividend payment this year, net
cash position equals EUR195.6 M at end of December 2020 (EUR74.9 M in 2019).

EXTERNAL GROWTH: 9 ACQUISITIONS ET 3 COMPANIES SOLD IN 2020 - 1 ACQUISITION IN
2021

ALTEN has consolidated its external development by carring out 10 acquisitions
(9 in 2020 and 1 in 2021):
* In Asia: 2 companies - one specialised in IT and the other one in Software
  development (Revenue: EUR34.5 M, 580 consultants).
* In US/Ukraine: 1 company specialised in Software development (Revenue:
  EUR7.5 M, 110 consultants).
* In Germany: 2 companies in Engineering Consulting (Revenue: EUR43 M, 400
  consultants).
* In Italy: 2 companies - one specialised in Data science and Data management,
  the other one in IT Infra and Digital services
  (Revenue: EUR97 M, 1,185 consultants).
* In France: 2 companies - one specialised in IT infrastructures (Revenue:
  EUR32 M, 180 consultants), the other one in Information Systems
  Transformation (Revenue: EUR38 M, 280 consultants), in February 2021.
* In Portugal: 1 company specialised in IT infra and Digital services (Revenue:
  EUR27 M, 400 consultants).

ALTEN has meanwhile sold 3 non-strategic companies in 2020:
* 1 company in China specialised in the Automotive industry (Revenue: EUR6 M,
  160 consultants).
* 2 companies in France specialised in Support and Network maintenance &
  Manufacturing (Revenue: EUR21 M, 360 consultants).

OUTLOOK FOR 2021:

The crisis has more durably affected the sectors of Automotive, Heavy trucks,
Aerospace & Civil aeronautics. However, contrary to Civil aeronautics,
Automotive should resume activity in 2021. Other sectors will also get back to
a standard pace of growth.

Business is expected to resume more sharply in 2021.

Depending on the evolution of the health crisis, we foresee a resuming activity
and a rebound of organic growth in the second half of 2021.

To improve its development and consolidate its position in strategic sectors
and activities, ALTEN will pursue a targeted strategy of external growth.

Next publication: Avril 26th after market closing: 2021 Q1 Results

About ALTEN
For more information: www.alten.com/investisseurs / Journalists' details:
alten@hopscotch.fr

As a European Leader in Engineering and Technology Consulting (ETC), ALTEN
carries out design and research projects for Technical and IT divisions of
major clients in industry, telecoms and services. ALTEN's stock is listed in
compartment A of the Euronext Paris market (ISIN FR000001946); it is part of
the SBF 120, the IT CAC 50 index and MIDCAP100, and is eligible for the
deferred Settlement Service (SRD).

Appendix to Press Release :

Definition of alternative performance measures and reconciliation with IFRS
standards

The ALTEN Group uses alternative performance measures especially selected to
follow up on its operational activities. The Group has chosen these measures as
they supply additional information allowing the users of periodic financial
information to have a comprehensive understanding of the Group's performance.
Such alternative performance measures are complementary to IFRS standards.

Revenue growth on a like-for-like basis (i.e. organic growth)
Growth on a like-for-like basis (and constant exchange rate) is calculated
excluding the effects of exchange rate variations and the variations of the
consolidation scope on a chosen period.

Exchange rate impacts are measured by converting the revenue of the period with
the average exchange rate from the previous period.
Scope variation impacts are measured excluding acquisitions, revenue of the
period and for transfers, revenue of the previous period, in order to create a
scope which is identical to the previous period. This alternative measure
enables to identify the real performance of the Group in terms of activity on
the chosen period.

This alternative measure enables to identify the real performance of the Group
in terms of activity on the chosen period.

Evolution of business in 2020

EURM                     2019 Revenue   2020 Revenue   % Change
Revenue on a
like-for-like basis         2,613.4        2,276.5      -12.9%
France                      1,127.7          907.5      -19.5%
International               1,485.7        1,369.0       -7.9%
Scope variation                10.6           66.6        2.2%
France                          6.8           -          -0.5%
International                   3.8           66.6        4.2%
Exchange rate impact                         -11.1       -0.4%
France                                        -            -
International                                -11.1       -0.7%
Group revenue               2,624.0        2,331.9      -11.1%
France                      1,134.5          907.5      -20.0%
International               1,489.5        1,424.4       -4.4%

Operating Profit on Activity
Operating Profit on Activity is the operating income before taking into account
the costs on share-based payments, results from significant transfers of
assets, goodwill impairment, as well as other significant and uncommon elements
considered as miscellaneous fees and operational activities.

Since payments on share-based compensation have noticeable heterogeneous annual
changes, the tables included in our financial statements show the operational
performance of the Group and make it possible to compare with previous or
selected periods.

Net cash position (net debt)
Net debt - as defined and used within the Group, stands for cash flow and
assimilated elements of cash flow less gross financial debt (bank loans and
other assimilated financial debts). This indicator is called "net cash
position" when the amount of cash flow or assimilated element of cash flow are
higher than gross financial debt (or "net debt" in the opposite case).

Free Cash-Flow
Free cash flow corresponds to net cash flow from operating activities minus net
operating investments and net cash flow from financing activities related to
payments of leasing debts.

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ALTEN (EPA:ATE) - ALTEN: Full-Year 2020 results

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