EIFFAGE (EPA:FGR) - Eiffage - Financial information to 30 September 2018
Transparency directive : regulatory news
06/11/2018 17:45
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Vélizy-Villacoublay, November 6, 2018
17:40
Financial information to 30 September 2018
> Total sales to 30 September 2018 in growth of 10.7% to EUR11.9bn (+13.2%
during the 3rd quarter)(1)
- Brisk activity in Contracting (+11.8% of which +15.6% during the 3rd
quarter)(1):
o +7.2% of organic growth
o Strong growth of international operations
- Noticeable growth of Concessions revenue (+6.4%)(1):
o Upbeat motorway traffic, notably for HGVs (+5.2% for APRR)
> Contracting order book increased by 16% year-on-year to EUR13.9bn,
representing 12.4 months of Contracting activity(2)
> 2018 outlook confirmed:
- New progress of activity and results(3) in Contracting and in Concessions
1 - SALES FOR THE NINE MONTHS TO 30 SEPTEMBER 2018
in millions To 30/09/2017 To 30/09/2018 Change
of euros (restated for IFRS 15)(1) Actual Like-for-like
consolidation (lfl*)
scope
Construction 2,616 2,779 +6.2% +0.4%
Of which Property
development 533 574
Infrastructures 3,387 3,970 +17.2% +13.1%
Energy Systems 2,701 2,979 +10.3% +6.3%
Sub-Total
Contracting 8,704 9,728 +11.8% +7.2%
Concessions
(exc. IFRIC 12) 2,085 2,218 +6.4% +6.8%
Total Group
(exc. IFRIC 12) 10,789 11,946 +10.7% +7.1%
Of which:
France 8,507 8,894 +4.5% +4.1%
International 2,282 3,052 +33.7% +18.4%
Europe outside
France 1,945 2,462 +26.6% +13.6%
Rest of world 337 590 +78.1% +46.3%
"Construction"
revenue (IFRIC 12) 237 223 nm
(1)The IFRS 15 norm, applicable from 1st January 2018 leads to, at 30 September
2017, a EUR22 million increase in property development revenue (and therefore
of the Construction) in France, a EUR1 million decrease in Energy Systems
revenue in France and to a EUR8 million decrease in Concessions revenue in
France.
The IFRS 15 norm implies, in property development on one hand, the
incorporation of the land in the measure of the progress of the revenue as soon
as the signature of the notarial deed and in concessions on the other hand in
multi-year PPP contracts, the accounting of the revenue covering the heavy
maintenance as they are actually performed as opposed to invoiced.
All 2017 revenues and 2018/2017 percentages of change contained in the current
release take these 2017 changes into account.
(2) For the order book, IFRS 15 specifies notably:
- new conditions governing the recognition of contracts in the order book,
leading to the restatement (in part or in whole) of certain contracts of the
order book published in 2017;
- the determination and disclosure of the order book for property development,
corresponding to the notarial deeds, which were not taken into account in
2017;
- the determination and disclosure of the order book for concessions,
corresponding to operation and maintenance services (including major
maintenance and repair work), which were not taken into account in 2017, over
the entire term of the contract.
(3) Before any adjustment to non-current deferred taxes.
2 - SALES FOR THE THIRD QUARTER OF 2018
in millions of euros 3rd quarter 3rd quarter % change
2017 2017
(restated for IFRS 15)(1)
Construction 852 944 +10.8%
Of which Property
development 201 205
Infrastructures 1,235 1,494 +21.0%
Energy Systems 924 1,044 +13.0%
Sub-Total Contracting 3,011 3,482 +15.6%
Concessions
(exc. IFRIC 12) 789 819 +3.8%
Total Group
(exc. IFRIC 12) 3,800 4,301 +13.2%
"Construction"
revenue (IFRIC 12) 62 95 nm
3 - REVIEW OF ACTIVITY(1)
Consolidated sales reported by Eiffage for the 3rd quarter of 2018 reached
EUR4.3bn, up by 13.2% compared with the 3rd quarter of 2017 (+15.6% in
Contracting and +3.8% in Concessions).
The Group's consolidated sales to 30 September 2018 thus came to almost
EUR12bn, up by 10.7% on a reported basis and by 7.1% lfl.
Sales contributed by Contracting increased by 11.8% (+7.2% lfl) to more than
EUR9.7bn.
Construction: sales of EUR2,779m (+6.2% on a reported basis and +0.4% lfl)
- For construction, sales decreased by 4.0% to EUR2,076m in France, but
increased by 54.8% to EUR703m in Europe outside France, more particularly in
the Benelux countries. The contribution to the activity of Priora, the
recently-acquired Swiss based construction company is EUR153m.
- For property development, sales increased by 7.7%. The marketing of new
housing units remained upbeat, with 3,079 reservations at the end of
September 2018, compared with 3,314 at the end of September 2017 (difference
due to the phasing of bloc sales between 2018 and 2017).
Infrastructures: sales of EUR3,970m (+17.2% on a reported basis and +13.1% lfl)
- In France, sales increased by 12.0% to EUR2,503m, with very strong increases
for civil engineering, due to work on the Grand Paris Express, as well as
road construction (+7.7%).
- In Europe outside France, sales increased by 9.8% to EUR1,106m, particularly
in Germany and Spain.
- Outside Europe, sales reached EUR361m, compared to EUR145m at 30 September
2017, in part thanks to the maritime works activities acquired from Saipem at
the end of 2017 (which contributed EUR101m).
Energy Systems: sales of EUR2,979m (+10.3% on a reported basis and +6.3% lfl)
- In France, sales increased by 3.9% to EUR2,132m.
- In Europe outside France, sales increased by 34.8% to EUR654m, mainly in
Spain and Belgium. The contribution to the activity of the recently acquired
subsidiaries (EDS in Spain and Kropman in the Netherlands) is EUR101m.
- Outside Europe, sales reached EUR193m, compared to EUR165m at 30 September
2017.
Sales contributed by Concessions increased by 6.4% (+6.8% lfl) to EUR2,218m.
Total revenue contributed by APRR, excluding construction, reached EUR1,958m,
up by 5.8%. Traffic on the APRR network, as measured by the number of
kilometres travelled, increased by 3.3% at 30 September 2018 compared with the
same period in 2017 (+1.3% in the 3rd quarter). Light vehicle (LV) traffic
increased by 3.0% and heavy goods vehicle (HGV) traffic by 5.2%.
As regards the A65 Pau-Langon motorway, revenue increased by 10.4% to EUR49m
with a traffic up by 5.7% (LV +5.5% and HGV +7.4%).
On the Millau viaduct revenue increased by 2.8% to EUR41m despite a 1.2%
decline in traffic (LV -1.7% and HGV +3.3%).
Revenue contributed by the Pierre Mauroy Stadium in Lille amounted to EUR21m,
while revenue contributed by the Autoroute de l'Avenir in Senegal came to
EUR33m.
Other concessions and public-private partnerships generated revenue of EUR116m
(EUR99m at 30 September 2017).
4 - SIGNIFICANT EVENTS IN THE PERIOD
APRR and AREA have signed a motorway investment plan covering 12 projects
enabling the acceleration of the network development and modernisation, in
particular in the fields of protection of the environment and customer service.
This plan amounting to nearly EUR187m, which is being financed by an additional
annual tariff increase over the years 2019 to 2021 of 0.198% for APRR and
0.389% for AREA.
5 - FINANCIAL SITUATION
The Group's liquidity, as measured by money market investments and undrawn
confirmed credit lines, reached EUR2.4bn at 30 September 2018, stable
year-on-year.
6 - OUTLOOK
The group 2018 outlook, new progress of activity and results3 in Contracting
and in Concessions, is thus comforted.
The Contracting order book stood at EUR13.9bn at 30 September 2018, up by 16%
over one year (-4% over 3 months)(2), representing 12.4 months of activity for
the Contracting activities.
Change in order books after restatement of comparatives to reflect the
application of IFRS 15(2) (in billions of euros):
At 30/09/2017 At 30/06/2018 At 30/09/2018 % change % change
over 1 year over 3 months
Contracting 12.0 14.4 13.9 +16% -4%
Property
development 0.6 0.6 0.6 +3% -8%
Concessions 1.1 1.1 1.1 -2% -1%
Glossary:
* Like-for-like (lfl) means at constant consolidation scope and exchange rates:
Constant consolidation scope is calculated by neutralising:
- the 2018 contribution made by companies consolidated for the first time in
2018;
- the 2018 contribution made by companies consolidated for the first time in
2017, for the period equivalent to that in 2017 before they were consolidated
for the first time;
- the 2017 contribution made by companies deconsolidated in 2018, for the
period equivalent to that in 2018 after they were deconsolidated;
- the 2017 contribution made by companies deconsolidated in 2017.
Constant exchange rates: this means applying 2017 exchange rates to 2018
local currency sales.
Next publication:
Group's sales and results for the year ending 31 December 2018 will be
published on 27 February 2019 after market.
Investor relations Press contact
Xavier Ombrédanne Sophie Mairé
Tel: + 33 (0)1 71 59 10 56 Tel: + 33 (0)1 71 59 10 62
e-mail: xavier.ombredanne@eiffage.com e-mail: sophie.maire@eiffage.com