COLAS (EPA:RE) - PR Colas - 1st quarter 2018

Transparency directive : regulatory news

17/05/2018 17:48

PRESS RELEASE

Boulogne, May 17, 2018

1st QUARTER 2018

o High level of work on hand: EUR8.4 billion (+8 %)
o Revenue: +1% at constant scope and exchange rates
o Net profit attributable to the Group: -EUR218 M (-EUR195 M for 1st quarter
  2017), not representative of 2018 performance
o Acquisition of the Miller McAsphalt group in Canada finalized on February 28,
  2018 for a provisional price of EUR585 M

Consolidated key figures
                                                        Reminder
                            1st quarter                  fiscal
In millions of euros       2018     2017     Change       2017

Consolidated revenue      1,898    1,928     - 2% (a)    11,705
of which France           1,166    1,180     - 1%         6,104
of which International      732      748     - 2%         5,601

Current operating income   (302)    (264)    - 38          362

Operating income           (302)    (268)(b)  -34          357

Consolidated net profit
attributable to the Group  (218)    (195)     -23          328

Net cash / (Net debt)      (732)    (171)    -561          433

(a) +1% at constant scope and exchange rates
(b) of which EUR4 M in non-current expenses during the 1st quarter of 2017
relating to preparatory work for the dismantling of the Dunkirk sit.

Seasonal nature of business activity

Due to the highly seasonal nature of most of the Group's businesses, it is
important to underline the fact that Colas' 1st quarter results are of little
significance, and that they are not representative of a full fiscal year. As
such, operating losses are recorded each year during the 1st quarter.

Acquisition of the Miller McAsphalt group in Canada

The acquisition of the Miller McAsphalt group was finalized on February 28,
2018, for a provisional price of EUR585 million. Goodwill of an equivalent
amount was accounted for as of March 31. The Miller McAsphalt group will be
consolidated in the 2nd quarter of 2018, retroactive to March 1.

Revenue

Revenue for the 1st quarter 2018 amounted to EUR1.9 billion, down 2% compared
to 1st quarter 2017 (+1% at constant scope and exchange rates). France posted a
total of EUR1.2 billion (-1%) and the International units recorded EUR0.7
billion (-2% and +4% at constant scope and exchange rates).

Roads:

Revenue totaled EUR1.5 billion, a 1% increase. In Mainland France, revenue is
up 4%, consistent with the figures of the road industry as a whole(1).
Revenue for the International units and French Overseas saw a 3% decrease.
Whereas headway is being made in Europe, revenue in North America is down,
mainly due to the exchange rate effect on the US dollar, and the other markets
are stable for the most part.

Specialized activities:

Revenue amounted to EUR0.4 billion, down 7% (-6% at constant scope and exchange
rates). 1st quarter activity was impacted by adverse weather conditions,
particularly in Networks and  Waterproofing.  Business  was  down  13%  for
Networks,  8%   for   Railways   (-7% at constant scope and exchange rates), 4%
for Waterproofing, and 3% for Safety Signaling.

(1) Routes de France - Monthly survey March 2018

Profitability

Current operating income amounted to -EUR302 million, compared to -EUR264
million in the 1st quarter 2017. Roads and Specialized activities faced
particularly adverse weather conditions in Europe, with an abnormally high
amount of rainfall.
Net profit attributable to the Group amounted to -EUR218 million, compared to
-EUR195 million at the end of March 2017.

Net cash/Net debt

Net debt at March 31, 2018 amounted to EUR732 million, compared to net cash of
EUR433 million at December 31, 2017. This change is on the one hand a
reflection of the seasonal nature of Colas' business, and on the other hand a
result of the acquisition of the Miller McAsphalt group for EUR585 million.
Excluding the acquisition, net debt improved by EUR24 million compared to March
31, 2017.

Outlook

Colas intends to continue to expand in transport infrastructure solutions,
Roads and Railways, to better serve responsible mobility. The Group has the
assets, skills and financial resources needed for this growth.
At the end of March 2018, work on hand amounted to EUR8.4 billion (+8% compared
to the end of March 2017). Work on hand is up 8% at EUR3.6 billion in Mainland
France and is up 8% at EUR4.8 billion in the International units and French
Overseas.

In addition, Colas Rail's acquisition of Alpiq Engineering Services' railway
activities, announced on March 26, 2018, will enable it to strengthen its
expertise in catenaries, a high-added value segment, and to access new growth
markets.

Based on the foregoing and all available data, outlook for the year reported on
February 22, 2018 remains unchanged: 2018 revenue should be significantly
higher than in 2017, and the current operating income is expected to improve.

For further information:
Delphine Lombard (tel.: +33 6 60 07 76 17) /
Rémi Colin (tel.: +33 7 60 78 25 74) contact-presse@colas.fr
Jean-Paul Jorro (tel.: + 33 1 47 61 74 23) /
Zorah Chaouche (tel.: +33 1 47 61 74 36) contact-investors@colas.fr

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