COLAS (EPA:RE) - PR Colas - Results at end September 2021

Transparency directive : regulatory news

16/11/2021 07:30

PRESS RELEASE

Paris, November 16, 2021

Certified with WIZTRUST

                         Results at end-September 2021

- Order backlog: very high level at EUR9.6 billion, up 4% year-on-year at
constant exchange rates

- Revenue: EUR9.8 billion as of September 30, 2021, up 8% at constant scope and
exchange rates compared to end-September 2020

- Sharp growth in current operating income: up EUR109 million vs end-September
2020 and EUR10 million vs end-September 2019

- Net profit attributable to the Group: EUR127 million (+EUR107 million vs
end-September 2020)

- Free cash flow: improves by EUR71 million vs end-September 2020 and EUR12
million vs end-September 2019

- Net debt is down sharply at EUR443 million, i.e., +EUR395 million vs
end-September 2020

- Outlook confirmed as forecast

The Board of Directors of Colas, chaired by Frédéric Gardès, met on November
9, 2021 to approve the financial statements at September 30, 2021 and outlook
for the current year.

Consolidated key figures
                                                                  At constant
                                                           Change   scope and
in millions of euros          9M 2019   9M 2020   9M 2021  vs 2020   exchange

                                                                      rates

Revenue                        10,182    9,085     9,787     +8%        +8%
of which France                 4,885    3,980     4,487    +13%       +13%
of which International          5,297    5,105     5,300     +4%        +5%
Current operating profit          223      124       233    +109
Current operating profit
margin                           2.2%     1.4%      2.4%   +1.0 pt
Operating profit                  223    63(a)       233    +170
Net profit attributable
to the Group                      140       20       127    +107
Free cash flow (b)                273      214       285     +71
Net surplus cash/
(Net debt)(b)                  (1,220)   (838)     (443)    +395

(a) Including EUR61 million in non-current expenses
related to the reorganization of the Group's road business in France and the
continued dismantling of the Dunkirk site.

(b) See definition in glossary on page 5.

Order backlog

The order backlog at the end of September 2021 was very high, standing at
EUR9.6 billion, up 4% year-on- year at constant exchange rates.

In Mainland France, the order backlog was down 6% year-on-year at EUR3.1
billion, mainly in the Railway segment, while the order backlog in the Roads
segment was up 4%.

Order backlog for International and French Overseas units stood at EUR6.5
billion, up 9% at constant exchange rates. In the third quarter, Colas secured
major road contracts, in particular in Canada and Madagascar. Colas Rail's
international order backlog is up, pending significant orders in the fourth
quarter of 2021.

International and French Overseas units account for 68% of Colas' total order
backlog.

Revenue

Consolidated revenue at September 30, 2021 amounted to EUR9.8 billion, up 8%
compared to September 30, 2020. Revenue totaled EUR4.5 billion (+13%) in France
and EUR5.3 billion in the international units (+4% and +5% at constant scope
and exchange rates).

Business during the third quarter was stable compared to 2020, and down a
slight 4% from the third quarter of 2019.

Roads:

Revenue for the Roads segment amounted to EUR8.8 billion at September 30, 2021,
up 8% at constant scope and exchange rates year-on-year:

* In the France and Indian Ocean zone, revenue was up 13% compared with the end
of September 2020, boosted by a favorable comparison basis with the same period
in 2020 impacted by the Covid lockdown. Business was down 6% compared to the
end of September 2019 reflecting the decline in invitations to bid in a
post-election period in France.

* In the EMEA zone (Europe, Middle East, Africa), business improved slightly by
3% at constant scope and exchange rates, boosted by Europe.

* In the United States, revenue improved slightly year-on-year (+2% at constant
scope and exchange rates) but it was impacted in the third quarter of 2021 by
poor weather.

* In Canada, revenue was up 5% year-on-year at constant scope and exchange
rates, where teams have profited from good weather conditions since the
beginning of the year.

* Finally, in the Asia-Pacific region, revenue was up 3% year-on-year at
constant scope and exchange rates.

Railways and Other Activities:

Revenue from the Railways and Other Activities was up 12% compared to the end
of September 2020 (+14% at constant scope and exchange rates). Colas Rail's
revenue was boosted by the good performance reported by its businesses in
France and in the United Kingdom.

Financial performance

Current operating income at September 30, 2021 amounted to EUR233 million, an
increase of EUR109 million compared to September 30, 2020. The current
operating margin totaled 2.4%, an 0.2-point improvement compared with the end
of September 2019, as performance was boosted by early resumption of activity
in Canada, the initial effects of optimization plans in the industrial
segments, and the new organization of Colas France.

In the third quarter of 2021, current operating income amounted to EUR333
million, a 7% decrease from Q3 2019, due in particular to a decline in business
in France and the United States.

The share of income from joint ventures and associates totaled EUR11 million,
down EUR21 million compared to the end of September 2020. Tipco Asphalt's
EUR14-million contribution was EUR11 million lower than at the end of September
2020.

Net profit attributable to the Group stood at EUR127 million euros, compared
with EUR20 million at the end of September 2020, and EUR140 million at the end
of September 2019.

Net debt
Net debt at September 30, 2021 was EUR443 million euro, compared with net debt
of EUR838 million euro at the end of September 2020. The change was made
possible by improved results, good management of working capital requirements
and tight control of investments.

CSR commitments

The Group's greenhouse gas (GHG) reduction targets have been validated by the
Science Based Targets initiative (SBTi).

SBTi has validated the fact that the Group's targets are aligned with the Paris
Agreement, opening the way to changes that will keep global warming below 2°C.
The objectives and actions undertaken by Colas include its value chain, which
accounts for over 80% of its carbon footprint.

Outlook

The recovery recorded since the second quarter means that revenue for 2021 is
expected to be significantly higher than in 2020, but without actually reaching
the same level as in 2019.

The current operating profit margin for 2021 is expected to rise compared to
2019 (3.2% of consolidated revenue), and a target of 4% has been set for 2023.

The outlook above is understood to exclude any further deterioration in the
Covid-19 health crisis.

Colas (www.colas.com)

Colas, a subsidiary of the Bouygues Group, has one mission: to imagine, build
and maintain sustainable transport infrastructure. Backed by a network of 800
construction business units and 3,000 material production units in more than 50
countries on five continents, the Group's 55,000 employees act locally to
connect communities and foster exchanges for today and tomorrow. Colas'
ambition is to be the world leader in innovative, sustainable mobility
solutions.
In 2020, consolidated revenue at Colas totaled EUR12.3 billion (55% outside of
France).

FOR FURTHER INFORMATION :

Fabienne BOULOC Tel. : +33 6 67 06 90 21
fabienne.bouloc@colas.com

Agathe DUCELLIER Tel. : +33 7 62 12 58 69
agathe.ducellier@colas.com

Marine ALLEMANDOU Tel. : +33 1 47 61 74 52

Mélodie LAMIAUX Tel. : +33 1 47 61 75 61
contact-investors@colas.fr

Condensed consolidated income statement for Q3 2021

                                                                  At constant
                                                           Change   scope and
in millions of euros          Q3 2019   Q3 2020   Q3 2021  vs 2020   exchange
                                                                        rates

Revenue                         4,348     4,215     4,196       0%         0%
Current operating profit          359       428       333      -95
Operating profit                  359       412       333      -79
Net profit attributable to
the Group                         242       315       239      -76

Revenue at September 30, 2021 by business segment

                                                                  At constant
                                                           Change   scope and
in millions of euros          9M 2019   9M 2020   9M 2021  vs 2020   exchange
                                                                        rates

Roads France - Indian Ocean     4,478     3,724     4,211     +13%       +13%
Roads EMEA                      1,635     1,585     1,640      +3%        +3%
Roads United States             1,372     1,327     1,270      -4%        +2%
Roads Canada                    1,317     1,310     1,402      +7%        +5%
Roads Asia - Pacific              288       262       286      +9%        +3%
Total Roads                     9,090     8,208     8,809      +7%        +8%
Railways and Other Activities   1,072(a)    867       971     +12%       +14%
Parent company                     20        10         7      ns         ns
TOTAL                          10,182(a)  9,085     9,787      +8%        +8%

(a) As a reminder, Smac, which was deconsolidated in the 2nd quarter of 2019,
contributed to the amount of EUR141 million in the 1st quarter of 2019.

Glossary

Order backlog: the amount of work still to be done on projects for which a firm
order has been taken, i.e. the contract has been signed and has taken effect
(after notice to proceed has been issued and suspensory clauses have been
lifted).

Changes in revenue at constant scope and exchange rates:

- at constant exchange rates: change after translating foreign-currency sales
for the current period at the exchange rates for the comparative period;

- at constant scope: change in revenue for the periods compared, adjusted as
follows:

* for acquisitions, by deducting from the current period those sales of the
acquired entity that have no equivalent during the comparative period;

* for divestments, by deducting from the comparative period those sales of the
divested entity that have no equivalent during the current period.

Free Cash Flow: Net cash flow (determined after (i) cost of net debt, (ii)
interest expense on lease obligations and (iii) income taxes paid), minus net
capital expenditure and repayments of lease obligations. It is calculated
before changes in WCR (working capital requirement).

Net surplus cash/(Net debt): the aggregate of cash and cash equivalents,
overdrafts and short-term bank borrowings, non-current and current debt, and
financial instruments. Net surplus cash/(Net debt) does not include non-current
and current lease obligations. A positive figure represents net surplus cash
and a negative figure represents net debt.

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COLAS (EPA:RE) - PR Colas - Results at end September 2021

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