COLAS (EPA:RE) - PR Colas - 1st Quarter 2021 Results

Transparency directive : regulatory news

20/05/2021 07:30

PRESS RELEASE
Paris, May 20, 2021

                          1st Quarter 2021 Results

Reminder: given the highly seasonal nature of its businesses, the Colas
Group?s Q1 figures are not representative of its full year results
- Order backlog: EUR9.9 Bn, up 1% at constant exchange rates compared to
end-March 2020
- Revenue: EUR2.0 Bn, up 3% compared to Q1 2020 (+4% at constant scope and
exchange rates)
- Current operating result: -EUR277 M, a sharp improvement (+EUR93 M compared
to Q1 2020), exceeding Q1 2019
- Net profit attributable to the Group: -EUR227 M, returning to Q1 2019 level
- Free cash flow: -EUR274 M, up EUR95 M compared to Q1 2020
- Net debt: -EUR441m (+EUR503 M compared to end of March 2020)

The Board of Directors of Colas, chaired by Mr. Frédéric Gardès, met on May
18, 2021 to review the accounts closed as of March 31, 2021 and outlook for the
year.

Consolidated key figures

                                                                 Constant
                                                                scope and
                                                        Change   exchange
in millions of euros         Q1 2019  Q1 2020  Q1 2021  vs 2020   rates

Revenue                        2,287    1,959    2,020    +3%      +4%
of which France                1,353    1,024    1,168   +14%     +14%
of which International           934      935      852    -9%      -6%
Current operating
profit / (loss)                 (298)    (370)    (277)   +93
Operating profit / (loss)       (298)    (370)    (277)   +93
Net profit attributable
to the Group                    (227)    (300)    (227)   +73
Free cash flow (a)              (304)    (369)    (274)   +95
Net surplus (net debt) (a)    (1,068)    (944)    (441)  +503

(a) See definition in glossary on page 4.

Order backlog

Order backlog at the end of March 2021 remained high, at EUR9.9 billion, down a
slight 2% over one year (+1% at constant exchange rates).

In mainland France, order backlog amounts to EUR3.4 billion, down 6% over one
year, reflecting a drop in calls for bids for the Railways and Roads segments
in the wake of the health crisis and lockdowns.

Order backlog for the International and Overseas France units totaled EUR6.5
billion, stable over one year and up 1% at constant exchange rates. Colas has
won significant contracts in the Roads segment in West Africa and Central
Europe. International and Overseas France units account for 66% of the Group's
total order backlog.

Revenue

Consolidated revenue for the 1st quarter of 2021 amounted to EUR2.0 billion, up
3% compared to the 1st quarter of 2020 (+4% at constant scope and exchange
rates). In France, Q1 revenue totaled EUR1.1 billion (+14%, and +14% at
constant scope and exchange rates). In the International units, Q1 revenue was
down at EUR0.9 billion (-6% at constant scope and exchange rates).

Roads:

Q1 2021 revenue amounted to EUR1.7 billion, up 3% at constant scope and
exchange rates.

* The improvement in revenue figures is particularly visible in the France -
Indian Ocean zone (+13% compared to the 1st quarter of 2020), which benefits
from a favorable comparison base with Q1 2020 due to the fact that as of March
17, 2020, France had gone into a strict lockdown and construction projects had
been halted. This figure was also boosted by good performance in the
geography's businesses.

* EMEA (Europe, Middle East, Africa) and the United States (respectively -14%
and -10% at constant scope and exchange rates compared to Q1 2020) were
impacted by unfavorable weather conditions in the 1st quarter.

* Good weather bolstered business in Canada, which is up 9% at constant scope
and exchange rates compared to Q1 2020, returning to same level as Q1 2019.

* Finally, in the Asia-Pacific zone, business dropped 6% compared to Q1 2020.

Railways and other Activities:

Revenue from Railways and other Activities was up 8% (+10% at constant scope
and exchange rates). The increase in revenue at Colas Rail is fostered by good
performance in France and the United Kingdom.

Financial performance

Current operating result for Q1 2021 totaled -EUR277 million, up a sharp EUR93
million compared to Q1 2020. Current operating result is higher than Q1 2019,
mainly thanks to good performance in the Roads segment in France and Canada.

As a reminder, the impact of the Covid-19 pandemic on current operating profit
for Q1 2020 was estimated at around -EUR75 million (loss of current operating
margin and unavoidable costs).

The share of income from joint ventures and associates amounted to -EUR2
million, a EUR7-million improvement compared to Q1 2020. At EUR4 million, Tipco
Asphalt's contribution is up EUR12 million compared to the end of March 2021.

Net profit attributable to the Group was -EUR227 million euros, compared to
-EUR300 million at end-March 2020, and -EUR227 million in 2019.

Net debt

Net debt at March 31, 2021 stood at EUR441 million, compared to net debt of
EUR944 million at end-March 2020, a difference owing to controlled investment
in 2020, as well as to improved profits and good control over working capital
requirements during Q1 2021.

Outlook

The outlook below is understood to exclude any further decline in the health
crisis.

After a slump in activity in 2020, Colas' operating units are setting their
sights on recovery in 2021. The second half of the year should see the first
effects of recovery plans announced in 2020, particularly in France and in the
European Union.

In 2021, Colas' current operating profit should also increase against 2020, and
approach the level recorded in 2019, bolstered by cost optimizing actions
rolled out in 2020, and by ongoing operational excellence programs across its
industrial activities.

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 MORE INFORMATION:

Delphine LOMBARD Tel.: +33 6 60 07 76 17
Rémi COLIN Tel.: +33 7 60 78 25 74
contact-presse@colas.fr

Marine ALLEMANDOU Tel.: +33 1 47 61 74 52
Mélodie LAMIAUX Tel.: +33 1 47 61 75 61
contact-investors@colas.fr

Q1 revenue by business segment

                                                                 Constant
                                                                scope and
                                                        Change   exchange
in millions of euros         Q1 2019  Q1 2020  Q1 2021  vs 2020   rates

Roads France - Indian Ocean    1,148      953    1,081    +13%     +14%
Roads EMEA                       331      349      292    -16%     -14%
Roads United States              168      189      156    -17%     -10%
Roads Canada                      93       88       92     +5%      +9%
Roads Asia - Pacific             111      102       96     -6%     -14%
Total Roads                    1,851    1,681    1,717     +2%      +3%
Railways and other Activities    431      277      300     +8%     +10%
Parent Company                     4        1        3      ns       ns
TOTAL                          2,287    1,959    2,020     +3%      +4%

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 - 1st Quarter 2021 Results

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