COLAS (EPA:RE) - Colas - Press Release - Half Year 2019

Transparency directive : regulatory news

29/08/2019 07:30

PRESS RELEASE
Paris, August 29, 2019

Half Year 2019
* Work on hand: EUR9.9 Bn, +4% at constant exchange rates and excluding Smac
* Revenue: EUR5.8 Bn, up 9% (+8% at constant scope and exchange rates)
* Current operating profit : -EUR136 M, up EUR31 M
* Net profit attributable to the Group: -EUR102 M (vs -EUR129 M)

The Board of Directors of Colas, chaired by Mr. Hervé Le Bouc, met on August
27, 2019 to examine the situation on June 30, 2019 and outlook for the current
year.

Consolidated revenue
                                                                    At
                                                                 constant
                                                                 scope and
                                      1st half year              exchange
in millions of euros               2018 (a)   2019 (a)   Change    rates

Consolidated revenue                5,361      5,834      +9%       +8%
of which France                     2,855      3,071      +8%      +12%
of which International              2,506      2,763     +10%       +4%
Current operating profit            (167)      (136)      +31
Current operating profit
after Leases (b)                    (173)      (144)      +29
Operating profit                    (167)      (136)      +31
Operating profit after Leases (b)   (173)      (144)      +29
Net profit attributable to
the Group                           (129)      (102)      +27
Net surplus cash/(Net debt) (b)   (1,303)    (1,544)    - 241
(a) The consolidated
financial statements for the first half year 2019 have been prepared in
accordance with IFRS 16 (Leases) and IFRIC Interpretation 23 (Uncertainty over
Income Tax Treatment). The consolidated financial statements for first half
year 2018 are presented proforma.

(b) See definitions in glossary on page 6.

Seasonal nature of business activity

Due to the highly seasonal nature of the Group's businesses, operating losses
are recorded each year during the 1st half year. As such, half year results are
not representative of a full fiscal year.

Revenue

Consolidated revenue for the first half of 2019 amounted to EUR5.8 billion, up
9% compared to the first half of 2018 (+8% at constant scope and exchange
rates). France accounted for EUR3.1 billion (+8% and +12% at constant scope and
exchange rates) and the international units accounted for EUR2.7 billion (+10%
and +4% at constant scope and exchange rates).

Roads:

Consolidated revenue from the Roads segment amounted to EUR5.1 billion in the
first half of 2019, up 10% (+8% at constant scope and exchange rates):

* in a dynamic market, revenue in Mainland France was up 13% compared to the
  first half of 2018;
* revenue in Europe increased slightly to +3% (+1% at constant scope and
  exchange rates), boosted by the United Kingdom and Ireland;
* revenue in North America was up 16%. At constant scope and exchange rates,
  the change is +5%, with significant growth in the United States while Canada
  remains stable;
* in the Rest of the World (International excluding Europe and North America),
  revenue was down 1% and stable at constant scope and exchange rates. The
  decrease in Africa was offset by growth in the Asia-Pacific zone.

Railways and other Specialized Activities:

Revenue amounted to EUR0.8 billion in the first half of 2019, a 1% decrease. At
constant scope and exchange rates, revenue is up 12%, driven by growth in the
Railways segment at Colas Rail (+17%), while a 12% drop in business was
recorded for the Networks segment at Spac. Following the sale of Smac to
OpenGate Capital, finalized on May 20, 2019, the half- year contribution of the
Waterproofing business to consolidated revenue was identical to that of the
first quarter, i.e., EUR0.1 billion.

Financial performance

Current operating profit for the first half of 2019 was -EUR136 million, a
31-million-euro improvement compared to the first half of 2018, and a
59-million-euro improvement excluding seasonal losses at Miller McAsphalt in
January and February 2019, two months that were not consolidated in 2018.

The Group's good performance is the result of improved current operating profit
for Roads in Mainland France, the first impact of Colas Rail's recovery
measures in France and the sale of Smac.

The share of income from associates and joint ventures amounted to EUR25
million at the end of June 2019 compared to EUR17 million at the end of June
2018, due mainly to good results at Tipco Asphalt.

Net profit attributable to the Group totaled -EUR102 million in the first half
of 2019, a 27-million-euro improvement compared to the first half of 2018.

Net surplus cash / net debt

Net debt at June 30, 2019 amounted to EUR1,544 million, compared to net debt of
EUR1,303 million at the end of June 2018. The change from December 31, 2018
(net debt of EUR475 million) results from the usual seasonal nature of the
businesses.

Outlook

Work on hand at the end of June 2019 amounted to EUR9.9 billion, up 4% at
constant exchange rates and excluding Smac. In Mainland France, work on hand
excluding Smac is up 9% at EUR3.6 billion, whereas work on hand in the
international and French Overseas units is up 5% with constant exchange rates,
at EUR6.3 billion.

As far as revenue is concerned, the Roads segment is performing well, which
should make it possible to offset the impact of the sale of Smac.

Current operating profit is expected to improve, boosted by strong business
activity in France, the recovery in Colas Rail's profitability and the sale of
Smac.

The financial statements are available at www.colas.com.
The half-year financial report is available at www.colas.com.
The financial statements were subject to a limited review by the Statutory
Auditors, who have published a report thereof.

Colas (www.colas.com)

Colas, a subsidiary of the Bouygues Group, is a world leader whose mission is
to promote transport infrastructure solutions for sustainable mobility. With
58,000 employees in more than 50 countries on five continents, the Group
performs some 85,000 road construction and maintenance projects each year via
800 construction business units and 2,000 material production units.

In 2018, consolidated revenue at Colas totaled 13.2 billion euros (51% outside
of France). Net profit attributable to the Group amounted to 226 million
euros.

                           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

Condensed consolidated income statement for second quarter 2019


                                                            Change
                                          2nd quarter     2nd quarter
in millions of euros                    2018      2019     2019/2018

Revenue                                3,463     3,547       +2 %
Current operating profit                 132       162        +30
Current operating profit after Leases    129       157        +28
Non-current expenses                       0         0          0
Operating profit                         132       162        +30
Operating profit after Leases            129       157        +28
Net profit attributable to the Group      88       125        +37
Revenue at June 30 by business segment

Revenue at June 30 by business segment

                                                                 Change at
                                                                 constant
                                                                 scope and
                                  At           At                 exchange
in millions of euros          30/06/2018   30/06/2019   Change     rates

Roads Mainland France           2,201        2,496       +13%      +13%
Roads Europe                      749          768        +3%       +1%
Road North America              1,009        1,169       +16%       +5%
Roads Rest of the World           629          625        -1%        -
Total Roads                     4,588        5,058       +10%       +8%
Railways and other
Specialized Activities            762          757        -1%      +12%
Parent company                     11           19        ns        ns
TOTAL                           5,361        5,834        +9%       +8%

Glossary

Work on hand: 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.

Current operating profit after Leases: current operating profit, after interest
expense on lease obligations

Operating profit after Leases: operating profit, after interest expense on
lease obligations

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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