EIFFAGE (EPA:FGR) - Eiffage - Financial information at 30 september 2020

Transparency directive : regulatory news

04/11/2020 17:40

Vélizy-Villacoublay, 4 November 2020
17:40

                 Financial information at 30 September 2020

* Revenue at 30 September 2020 of EUR11.5 billion (-13.1%; -13.7%
  like-for-like)
* Activity fell slightly in third quarter, by 2.3% (Contracting: -3.1%;
  Concessions: +1.3%)
* Liquidity up over 12 months reaching EUR4.1 billion for Eiffage S.A. and
  EUR3.4 billion for APRR
* Contracting order book of EUR16.4 billion (+13% year-on-year)
* Confirmation of full-year 2020 activity and results expected to be down
  sharply with a significant recovery in the second semester

1 - REVENUE AT 30 SEPTEMBER 2020

in millions of euros At 30/09/2019 At 30/09/2020     Changes
                                                 Actual      Constant
                                                             scope and
                                                             exchange
                                                              rates

Construction             3,020        2,439      -19.2%      -19.5%
of which Property          668          543
Infrastructure           4,732        4,272       -9.7%       -9.7%
Energy Systems           3,215        2,803      -12.8%      -13.1%
Sub-total Contracting   10,967        9,514      -13.2%      -13.4%
Concessions
(excl. Ifric 12)         2,251        1,978      -12.1%      -15.1%
Total for Group
(excl. Ifric 12)        13,218       11,492      -13.1%      -13.7%
of which:
France                   9,781        8,395      -14.2%      -14.9%
International            3,437        3,097       -9.9%      -10.3%
Europe outside France    2,858        2,516      -12.0%      -12.6%
Rest of the world          579          581       +0.3%       +1.0%
Construction revenue
(Ifric 12)                 256          184              n.m.

2 - REVENUE IN THE 3rd QUARTER 2020

in millions of euros        Q3 2019    Q3 2020    Changes

Construction                 1,002       966       -3.6%
of which Property              223       222
Infrastructure               1,734     1,724       -0.6%
Energy Systems               1,113     1,039       -6.6%
Sub-total Contracting        3,849     3,729       -3.1%
Concessions (excl. Ifric 12)   834       845       +1.3%
Total for Group
(excl. Ifric 12)             4,683     4,574       -2.3%
Construction revenue
(Ifric 12)                     80        74         n.m.

3 - GENERAL DESCRIPTION OF THE ACTIVITY

In third quarter 2020, Eiffage posted consolidated revenue of EUR4.6 billion,
down slightly by 2.3% compared to third quarter 2019 (-3.1% in Contracting and
+1.3% in Concessions).

At 30 September 2020, the Group's consolidated revenue thus stood at EUR11.5
billion, down 13.1% in actual terms and 13.7% on a like-for-like basis.

In Contracting, activity fell by 13.2% (-13.4% like-for-like) to stand at
EUR9.5 billion.

Construction: EUR2,439 million (-19.2% in actual terms and -19.5%
like-for-like)

- In Construction, activity was down 20.0% to EUR1,803 million in France (-0.4%
over the quarter), and by 17.0% to EUR636 million in Europe outside France.

- In Property, revenue was down 18.7% year-on-year, but is stable over the
quarter. A total of 3,186 reservations were recorded at end-September 2020
compared to 3,356 at end-September 2019.

Infrastructure: EUR4,272 million (-9.7% in actual and like-for-like)

- In France, revenue was down 11.4% to EUR2,782 million, though it did rise by
0.7% over the quarter, particularly in Civil Engineering thanks to the ramp-up
in activity on "Grand Paris Express" projects.

- In Europe outside France, activity fell by 11.7% to stand at EUR1,060
million.

- However, outside Europe, revenue was up 9.4% to EUR430 million.

Energy Systems: EUR2,803 million (-12.8% in actual terms and -13.1%
like-for-like)

- In France, revenue stood at EUR1,872 million, down 14.0% (-4.1% over the
quarter).

- In Europe outside France, activity fell by 8.2% to stand at EUR819 million.

- Outside Europe, revenue was EUR112 million, compared to EUR145 million at 30
September 2019.

In Concessions, activity stood at EUR1,978 million, down 12.1% (-15.1%
like-for-like).

The consolidated revenue of APRR, excluding construction, stood at EUR1,658
million, down 16.5%. Overall traffic across the APRR network, measured in
kilometres travelled, was down 19.9% at 30 September 2020 (-2.7% for third
quarter) compared to the same period in 2019. Light vehicle (LV) traffic fell
by 21.5% (-2.5% in third quarter) while heavy goods vehicle (HGV) traffic fell
by 10.6% (-3.4% in third quarter).

On the A65 motorway (Pau-Langon), revenue fell 15.5% to stand at EUR43 million,
with traffic down 20.7% (LV: -22.0% and PL: -9.4%).

On the Millau Viaduct, revenue fell 16.6% to stand at EUR35 million, with
traffic down 23.5% (LV: -25.6% and PL: -4.8%).

Revenue for the Pierre Mauroy Stadium in Lille stood at EUR18 million, while
that for "Autoroute de l'Avenir" in Senegal was stable at EUR40 million.

The airport concessions (Lille and Toulouse-Blagnac airports) saw a 63.7% drop
in passenger traffic, for revenue of EUR78 million.

Other concessions and Public-Private Partnership operations generated revenue
of EUR107 million (EUR109 million at 30 September 2019).

4 - POST-BALANCE SHEET EVENTS AT 30 SEPTEMBER 2020

On the 21st of October, Eiffage launched its low-carbon communication campaign"
Making the invisible visible" and announced the contract with the group Lidl to
build its new headquarters in Châtenay-Malabry.

On the 28th of October, Eiffage won the EPC contract for the Campanario mega
solar plant (250MWc) in Spain in a deal worth over EUR120 million.

On the 30th of October, a period of lockdown was established in France until
1st of December followed by similar measures in several European countries
where the Group is present. In this context, Eiffage will continue to be
proactive in reinforcing health measures in its various businesses to ensure
the safety of its employees and third parties present where it operates. Whilst
Contracting activity is maintained, this second lockdown will inevitably
penalise motorway and airport traffic in France.

5 - FINANCIAL SITUATION

At 30 September 2020, Eiffage S.A. and its Contracting subsidiaries had
liquidity of EUR4.1 billion (up EUR0.4 billion year-on-year), consisting of
EUR2.1 billion in cash at hand and an undrawn bank credit line of EUR2.0
billion, with no financial covenant, maturing in 2025, with a possible one-year
extension.

At 30 September 2020, APRR for its part had liquidity of EUR3.4 billion (up
EUR0.8 billion year-on-year), consisting of EUR1.4 billion in cash at hand and
an undrawn bank credit line of EUR2.0 billion maturing in 2025, with two
possible one-year extensions.

In addition, in September 2020, APRR undertook a bond issue for EUR500 million
maturing in January 2029, with a coupon of 0.125%. Finally, on 28 October 2020,
the rating agency Fitch Ratings reaffirmed APRR's credit rating at A-with a
stable outlook and upgraded the short-term credit rating from F2 to F1.

6 - COMPOSITION OF THE BOARD OF DIRECTORS

Mrs Michèle Grosset, within the Group for 30 years, was appointed on 15
September 2020 by the Group Works Council as the Director of Eiffage
representing the employees.

7 - OUTLOOK

The Contracting order book stood at EUR16.4 billion at 30 September 2020, up
13% year-on-year (-4% in the last three months), representing 14.3 months of
activity. Its year-on-year growth is explained by the production postponement
in the first half of the year, but also by the awarding of major contracts
despite a decline in orders in certain business activities.

This order book and the level of activity in Works between July and October
confirm the prospect of a slight decline in revenue in the second half of the
year. This forecast is based on the assumption that construction sites will
continue to operate during periods of lockdown in the various countries where
Eiffage operates. The measures taken by the Group to face up to the sanitary
constraints as well as the desire of the respective governments are such as to
allow this continuity.

In Concessions, as indicated at the time of publication of the interim
financial statements, the development of the pandemic and its consequences in
terms of travel restrictions do not allow reliable anticipation of motorway and
air traffic.

In view of these factors and the activity in the third quarter, Eiffage still
anticipates a marked decline in its business and results for the year as a
whole, which will however recover significantly in the second half of the year
when compared to the first one.

For the Group, revenue and results for the 2020 financial year will be
published on 24 February 2021 after market closing. For APRR, revenue for the
2020 financial year will be published on 26 January 2021 after markets.

Change in order books (EURbn)

                  At        At         At        Change     Change over
             30/09/2019 30/06/2020 30/09/2020  over 1 year   3 months

Contracting     14.5       17.1       16.4        +13%         -4%

Property         0.5        0.7        0.7        +25%         -2%
Concessions      1.1        1.0        1.0         -5%          =

Investor Contact                         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

Glossary

Item                   Definition

Construction revenue
of Concessions
(Ifric 12)             Construction revenue of the concessions corresponds to
                       the costs of carrying out the construction or upgrade
                       of infrastructure incurred by the concession holder
                       in application of the provisions of Ifric 12
                       "Service Concession Arrangements", after elimination
                       of intra-group transactions.

Contracting order book Portion of signed contracts not yet executed.

Like-for-like or at
constant scope and
exchange rate          Constant consolidation scope is calculated by
                       neutralising:
                       the 2020 contribution made by companies consolidated
                       for the first time in 2020;
                       the contribution made by companies consolidated
                       for the first time in 2019 in the period of 2020
                       equivalent to that of 2019 which preceded their
                       first-time consolidation;
                       the contribution made in 2019 by companies
                       deconsolidated in 2020 for the period equivalent to
                       that of 2020 after they were deconsolidated;
                       the 2019 contribution made by companies deconsolidated
                       in 2019.
                       Constant exchange rate: 2019 exchange rates applied
                       to 2020 revenues in currency.

Liquidity of the Group The Group's liquidity is calculated as follows: cash
                       and cash equivalents managed by Eiffage S.A. and its
                       contracting subsidiaries + unused bank line(s) from
                       Eiffage S.A.

Liquidity of APRR      APRR's liquidity is calculated as follows:
                       cash and cash equivalents managed by APRR S.A. +
                       unused bank line(s) from APRR S.A.

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11/03/2024 18:10

EIFFAGE (EPA:FGR) - Eiffage - Financial information at 30 september 2020

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