EIFFAGE (EPA:FGR) - Eiffage - Financial information to 30 September 2019

Transparency directive : regulatory news

06/11/2019 17:40

Vélizy-Villacoublay, 6 November 2019
17:40

               Financial information to 30 September 2019

* Total sales to 30 September 2019 of EUR13.2bn (+10.6%, +8.6% lfl*)
  - Brisk activity in Contracting (+12.7%, +10.3% lfl), both in France (+12.8%)
    for international operations (+12.6%).
  - Concessions revenue growth of 1.5%; slight decline in motorway traffic
   (-0.8% on the APRR network).
* Contracting order book increased by +4% over one year to EUR14.5bn,
  representing almost 12 months of activity.
* Confirmation of the Group's guidance of growth of activity and results for
  the full year.

1 - SALES TO 30 SEPTEMBER 2019

                             To 30/09/2018 To 30/09/2019        Change
in millions of euros                                        Actual      Like-
                                                       consolidation  for-like
                                                            scope      (lfl*)

Construction                     2,779      3,020           +8.7%      +6.5%
Of which Property development      574        668
Infrastructure                   3,970      4,732          +19.2%     +16.7%
Energy Systems                   2,979      3,215          + 7.9%      +5.5%
Sub-total Contracting            9,728     10,967          +12.7%     +10.3%
Concessions (excl. Ifric 12)     2,218      2,251           +1.5%      +1.5%
Total Group (excl. Ifric 12)    11,946     13,218          +10.6%      +8.6%
Of which:
France                           8,894      9,781          +10.0%      +8.8%
International                    3,052      3,437          +12.6%      +8.2%
Europe outside France            2,462      2,858          +16.1%     +10.8%
Outside Europe                     590        579           -1.9%      -2.7%
Construction revenue (Ifric 12)**  223        256                   nm

2 - SALES FOR THE THIRD QUARTER OF 2019

in millions of euros      3rd quarter 2018 3rd quarter 2019      Change
Construction                       944         1,002             +6.1%
Of which Property development      205           223
Infrastructure                   1,494         1,734            +16.1%
Energy Systems                   1,044         1,113             +6.6%
Sub-total Contracting            3,482         3,849            +10.5%
Concessions (excl. Ifric 12)       819           834             +1.8%
Total Group (excl. Ifric 12)     4,301         4,683             +8.9%
Construction revenue
(Ifric 12)**                        95            80               nm

3 - REVIEW OF ACTIVITY

Consolidated sales reported by Eiffage for the 3rd quarter of 2019 reached
EUR4.7bn, up by 8.9% compared with the 3rd quarter of 2018 (+10.5% in
Contracting and +1.8% in Concessions).

The Group's consolidated sales to 30 September 2019 thus came to EUR13.2bn, up
by 10.6% on a reported basis and by 8.6% lfl.

Sales contributed by Contracting increased by 12.7% (+10.3% lfl) to almost
EUR11.0bn.

Construction: sales of EUR3,020m (+8.7% on a reported basis and +6.5% lfl)

- For construction, sales increased by 8.6% to EUR2,254m in France and by 9.0%
  to EUR766m in Europe outside France on account of the contribution made by
  Priora, the Swiss-based construction company acquired in 2018.

- For property development, sales increased by 16.4%. The marketing of new
  housing units remained upbeat, with 3,356 reservations at the end of
  September 2019 compared with 3,079 at the end of September 2018.

Infrastructure: sales of EUR4,732m (+19.2% on a reported basis and +16.7% lfl)
- In France, sales increased by 25.4% to EUR3,139m, with very sensible
  increases for civil engineering, due notably to work on the Grand Paris
  Express projects, as well as road construction (+11.9%).
- In Europe outside France, sales increased by 8.5% to EUR1,200m, particularly
  in Spain.
- Outside Europe, sales increased by 8.9% to EUR393m.

Energy Systems: sales of EUR3,215m (+7.9% on a reported basis and +5.5% lfl)
- In France, sales increased by 2.2% to EUR2,178m.
- In Europe outside France, sales increased sharply by 36.4% to EUR892m, mainly
  in the Netherlands (following the acquisition of Kropman) and in Spain.
- Outside Europe, sales reached EUR145m, compared to EUR193m at 30 September
  2018.

Sales contributed by Concessions increased by 1.5% to EUR2,251m.

Total revenue contributed by APRR, excluding construction, reached EUR1,986m,
up by 1.4%. Overall traffic on the APRR network, as measured by the number of
kilometres travelled, declined slightly by 0.8% at  30 September 2019 (-0.5% in
the third quarter) compared with the same period in 2018, when traffic
benefited from the disruption of rail services. Light vehicle (LV) traffic
declined by 1.2%, whereas heavy goods vehicle (HGV) traffic increased by
1.0%.

As regards the A65 Pau-Langon motorway, revenue increased by 3.6% to EUR51m,
with overall traffic up 1.5% (LV +1.9% and HGV -2.1%).

On the Millau viaduct, revenue increased by 2.5% to EUR42m despite a 2.1%
decline in traffic (LV -2.7% and HGV +3.3%).

Revenue contributed by the Pierre-Mauroy Stadium in Lille amounted to EUR23m,
while revenue contributed by the Autoroute de l'Avenir in Senegal came to
EUR40m.

Other concessions and public-private partnerships generated revenue of EUR109m
(EUR116m at 30 September 2018).

4 - SIGNIFICANT EVENT AFTER 30 JUNE 2019

On 25 July, Eiffage and Aéroport Marseille-Provence signed the concession
agreement for the Lille Airport. The concession company in which Eiffage holds
a majority stake, is responsible for making investments as well as servicing,
maintaining and operating the airport over a 20-year period starting as of 1st
of January 2020.

5 - FINANCIAL SITUATION
The Group's liquidity, as measured by money market investments and undrawn
confirmed credit lines, reached EUR3.7bn at 30 September 2019, up EUR1.3bn
year-on-year, due chiefly to the EUR1bn increase in the syndicated credit line
signed by the Group in May 2019.

6 - OUTLOOK
The Contracting order book stood at EUR14.5bn at 30 September 2019, up by 4%
over one year (-3% over 3 months), representing 11.7 months of activity.

Eiffage confirms its guidance of growth of activity and results for the full
year.

The Group's sales and results for the financial year 2019 will be published on
26 February 2020 after trading.

Change in order books (in billions of euros)

             At 30/09/2018 At 30/06/2019 At 30/09/2019   % change   % change
                                                      over 1 year over 3 months

Contracting         13.9          14.9        14.5       +4%            -3%

Property
development          0.6           0.6         0.5      -10%           -15%
Concessions          1.1           1.1         1.1       -3%            -1%

Glossary

Item                                          Definition
* Construction revenue           The construction revenue of concessions
of Concessions (Ifric 12)        corresponds to costs relating to services
                                 to build or improve the infrastructure
                                 committed by the concession operator
                                 determined in accordance with the
                                 requirements of Ifric 12, "Service
                                 Concession Arrangements", after elimination
                                 of intragroup operations.

Contracting activities order     Portion of signed
book                             contracts not executed.

** lfl or like-for-like          Constant consolidation scope is
                                 calculated by neutralising:
                                 The 2019 contribution made by companies
                                 consolidated for the first time in 2019;
                                 The 2019 contribution made by companies
                                 consolidated for the first time in 2018,
                                 for the period equivalent to that in 2018
                                 before they were consolidated for the
                                 first time;
                                 The 2018 contribution made by companies
                                 deconsolidated in 2019, for the period
                                 equivalent to that in 2019 after they
                                 were deconsolidated;
                                 The 2018 contribution made by companies
                                 deconsolidated in 2018.
                                 Constant exchange rates: 2018 exchange
                                 rates applied to 2019 local currency sales.

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

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EIFFAGE (EPA:FGR) - Eiffage - Financial information to 30 September 2019

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