COLAS (EPA:RE) - Press release Colas - Revenue and Results at end-September 2016

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16/11/2016 07:35

PRESS RELEASE

                                                 Boulogne, November 16, 2016

                       REVENUE AND RESULTS at end-September 2016

Improved operational profitability despite a decrease in activity thanks to the
positive impact of action and adaptation plans
o Revenue strongly impacted by changes in scope and exchange rates:
    - EUR8.1 billion (-9%)
    - -5% at constant scope and exchange rates
o Current operating income: EUR241 million (+EUR46 million)
o Net profit attributable to the Group: EUR167 million (EUR189 million at
   end-September 2015)
o Work-on-hand: EUR7.2 billion (+1%)

Consolidated key figures as of September 30, 2016

in millions of euros
                         As of        As of     Change    Full year
                       30/09/2016  30/09/2015                2015
Consolidated revenue      8,115      8,933        -9%      11,960
of which France           4,256      4,478        -5%       6,044
of which International    3,859      4,455       -13%       5,916
Current operating income    241        195       +EUR46 M      344
Operating income            202(a)     195        +EUR7 M      249
Consolidated net profit
attributable to the Group   167        189       -EUR22 M      234
Net cash
(Net debt)                  (17)      (231)     +EUR214 M      560

(a) As of the end of September 2016, charges incurred by the refined products
    activity that is being closed (fixed costs and adjustments of charges
    relating to the Employment Social Plan currently under way) have been
    accounted for in non-current expenses for an amount of 39 million euros.

Revenue

As of September 30, 2016, the Colas Group's consolidated revenue amounted to
8.1 billion euros, down 9% from September 30, 2015, with strong impact from
changes in scope (-258 million) and exchange rates (-106 million). At constant
scope and exchange rates, business decreased 5% (-3.6% in France and -6.6% in
the international units).

The majority of the changes in scope are due to the sale of the bitumen storage
and trade subsidiaries in Asia to the Thai subsidiary Tasco, accounted for by
the equity method (-147 million euros), and the cessation of the sales of
refined products in France (-102 million).

Trends by business segment are as follows:

Roads

In Mainland France, in a market that appears to be stabilizing after a sharp
two-year drop, revenue amounted to 2.9 billion euros, unchanged from the first
nine months of 2015.

In the International and French Overseas units, revenue totaled 3.7 billion
euros, down 14% and 9% at constant scope and exchange rates, due in particular
to downward trends in business in:

- Central Europe, due to delays in the launching of highway and road projects
  during the first half of 2016 (-38%);
- Canada, essentially in the western Provinces due to a decrease in the oil and
  gas sector (-16%);
- French Overseas (-11%).

Business is making headway in the United States and Oceania (Australia and New
Caledonia), and is close to that recorded during the first nine months of 2015
in Northern Europe and in the Indian Ocean and Africa zone.

Specialized Activities (excluding the sales of refined products)

As of the end of September 2016, revenue for Specialized Activities decreased
8% (-6% at constant scope and exchange rates), compared to the end of September
last year. All the business segments were down between 3 and 9%, including
Railways (impact of the high basis for comparison in 2015).

Lastly, the halting of the production and sales of refined products at the end
of 2015 led to a gap of 102 million euros in revenue for the first nine months
of 2016.

Profitability

Current operating income at end-September 2016 totaled 241 million euros, up 46
million  euros from end-September 2015 thanks to the end of current losses for
the sales of refined products segment and improved profit margins in the roads
sector.

As of September 30, 2016, an amount of 39 million euros was accounted for in
non-current expenses. This figure includes charges relating to structural costs
at the subsidiary SRD (mainly personnel costs over nine months) and additional
charges linked to the Employment Social Plan provided for at the end of
December 2015.

In addition, income from associates and joint ventures totaled 40 million
euros, compared to 67 million euros at end-September 2015 (impact of the high
basis for comparison at Tasco along with positive non recurrent items in
2015).

The share of net profit attributable to the Group amounted to 167 million
euros, compared to 189 million euros at end-September 2015.

Financial situation

Net financial debt amounts to 17 million euros, compared to 231 million euros
at September 30, 2015.

Outlook

Work-on-hand at end-September 2016 totals 7.2 billion euros, up 1% from
end-September  2015 (-1% in Mainland France and +3% in the International and
French Overseas units).

Based on all currently available data, revenue for 2016 is expected to be down
some 4% at constant scope and exchange rates. Improved profitability in 2016 is
confirmed.

The financial statements have been subject to a limited review by statutory
auditors.

This press release is available in English and in French at www.colas.com

Consolidated condensed income statement for 3rd quarter 2016

in millions of euros          3rd quarter         Change
                              2016    2015
Revenue                       3,437  3,729         -8%
Current operating income        326    314        +EUR12 M
Operating income                317    314         +EUR3 M
Consolidated net profit
attributable to the Group       238    258        -EUR20 M

Revenue as of September 30, 2016 by business segment

in millions of euros
                        As of      As of       Change   Change at constant
                      30/09/2016  30/09/2015                 scope and
                                                          exchange rates
Roads Mainland
France                 2,927       2,935          =             =
Roads Europe           1,013       1,245        -19%           -17%
Roads North America    1,887       2,042         -8%            -6%
Roads Rest of the World  810       1,008        -20%            -3%
Total Roads            6,637       7,230         -8%            -5%
Specialized activities 1,448       1,577         -8%            -6%
Sales of refined
products                  12         114         ns              ns
Parent company            18          12         ns              ns
TOTAL                  8,115       8,933         -8%            -5%

Revenue as of September 30, 2016 by geographic zone

in millions of euros
                                  As of       As of        Change
                               30/09/2016  30/09/2015
Mainland France                  3,938        4,117          -4%
French Overseas Departments        318          361         -12%
France                           4,256        4,478          -5%
North America                    1,891        2,045          -8%
Europe (excl. France)            1,311        1,632         -20%
Rest of the World(1)               657          778         -16%
International(1)                 3,859        4,455         -13%
TOTAL                            8,115        8,933          -9%

(1) Including French Overseas Territories

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COLAS (EPA:RE) - Press release Colas - Revenue and Results at end-September 2016

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