SPIE (EPA:SPIE) - SPIE - Q3-2015 Trading Update - On track to meet full-year EBITA and cash conversion targets

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30/10/2015 07:00

Press Release

                           Q3-2015 Trading Update

         On track to meet full-year EBITA and cash conversion targets

Cergy, October 30, 2015

Results highlights

Euro million
(unaudited)    Q3 2015  YOY change  9m 2015  YOY change
Revenue       1,308.2     -0.7%     3,892.5    +3.2%
EBITA            90.0     +2.8%       232.7    +5.7%
EBITA margin      6.9%   +24 bps        6.0%  +14 bps

Revenue for Q3 was EUR1,308.2 million (-0.7%), and EUR3,892.5 million for the
YTD (+3.2%). EBITA for Q3 was EUR90.0 million (+2.8%), and EUR232.7 million YTD
(+5.7%).

We are on track to meet our full-year EBITA target, with cash conversion of
100%.

While revenue for the year will be slightly below our previous expectations,
primarily due to the impact of the oil price on OCTG(1) activities and to France
remaining subdued, we now anticipate an EBITA margin improvement of 15 bps or
more, markedly better than previously expected, thanks to our selective market
positioning, careful approach to bidding and cost control programmes.

In France, the last three quarters have seen weak new build activity, especially
in the public sector,  with maintenance activities being more resilient.
Industry activities continue to grow, particularly in maintenance and related
small works. We anticipate these trends to continue through the remainder of the
current financial year.

(1) Oil Country Tubular Goods

Margins will continue to improve, thanks to the implementation of an array of
organisational and commercial initiatives.

Germany & C.E.

SPIE GmbH is benefitting from the rapid implementation of the SPIE business
model with margins and volumes confirming H1 improvement. We are making good
progress in winning new contracts in health, education and food industries,
resulting in good underlying organic growth. The outlook for the segment is
favourable.

North-Western Europe has continued to report steady margin improvements, as well
as revenue growth supported by acquisitions. The collapse of a major competitor
is presenting the Group with  some good quality business opportunities,
particularly in the Netherlands. The recent acquisitions are performing well.

Oil & Gas and Nuclear

Nuclear has achieved continued good growth in both margins and volumes. In Oil
& Gas, the OCTG volumes have been weak over the last 2 quarters after a period
of strong growth in 2014, reflecting the further fall in the oil price. This
has impacted the segment's revenue but only had a minimal impact on EBITA, due
to the lower pass-through margin of this business. In our core Oil and Gas
maintenance activities, on the other hand, margins have improved thanks to the
flexibility  of the Group's service offering and responsive cost structure,
while revenue held up well in the circumstances. We recently signed a multi-year
contract in Nigeria for maintenance services, demonstrating the continued
demand for the Group's services even at a depressed oil price.

M & A

We completed the acquisition of Leven in the UK at the beginning of Q3 and have
acquired annualised revenues of EUR111 million to date. We are poised to
complete further acquisitions in Q4. Furthermore,  our mid-term pipeline is
particularly strong in our targeted geographies.

Employee offering

We are delighted to report that more than 14,000 employees elected to subscribe
close to EUR35 million(2) in the recent employee offering. This result reflects
the dedication and commitment of SPIE's  employees to the Group and the services
levels to which we aspire. Coupled with the employers matching scheme this will
result in approximately 4.1 million shares being issued, bringing the total
number of shares to 154.1 million effective December 10, 2015.

(2) Assuming 100% settlement on December 10, 2015

Outlook

We anticipate another year of successful delivery of our business model, focused
on EBITA, cash and regular bolt-on acquisitions. We are on track to meet
full-year EBITA and cash conversion targets, and benefit from an excellent
acquisition pipeline.

A detailed presentation of the results is available on www.spie.com.

About SPIE

As the independent European leader in multi-technical services in the areas of
energy and communications, SPIE supports its customers to design, build, operate
and maintain energy-efficient and environmentally-friendly facilities.

With more than 38,000 employees working from close to 550 sites in 35 countries,
SPIE achieved consolidated revenue of EUR5.22 billion in 2014 and consolidated
EBITA of EUR334 million.

www.spie.com
https://www.facebook.com/SPIEgroup
http://twitter.com/spiegroup

Disclaimer
Certain information included in this press release and other statements or
materials published or to be published by SPIE are not historical facts but are
forward-looking statements. These forward-looking statements are based on
current beliefs, expectations and assumptions, including, without limitation,
assumptions regarding present and future business strategies and the environment
in which SPIE operates, and involve known and unknown risks, uncertainties and
other factors, which may cause actual results, performance or achievements, or
industry results or other events, to be materially different from those
expressed or implied by these forward-looking statements.

Appendix- P&L bridges (unaudited)

     Bridge Revenue                          Bridge EBITA(1)

EURm                9m 2015  9m 2014    EURm               9m 2015  9m 2014

Underlying Revenue  3,892.5  3,771.6    EBITA               232.7     220.2


OCTG activities
(SONAID(2)             92.5    120.0   Amortisation of
                                       intangible assets(3) (25.4)    (33.2)


Holdings activities    19 3     22.8   Discontinued
                                       activities and
                                       restructuring costs   (1.1)     (0.5)

Others                 (0.9)   (25.6)  Financial commissions (1.3)     (1.4)

Revenue (IFRS)      4,003.4  3,888.8   Non-controlling        2.8       3.3
                                       interests(4)

                                       Others                (3.0)     (3.6)

                                       Operating income     204.7     184.9
                                      (IFRS)

                                       EBITA margin          5.98%     5.84%

Notes:
(1) EBITA represents, in the Company's internal reporting, profit from recurring
    operations before tax and financial expenses. EBITA is calculated before
    amortisation of allocated goodwill
(2) SONAID is entered in the consolidated account using the full consolidation
    method while it is integrated on a proportional basis in our management
    accounts (55%)
(3) Allocated goodwill
(4) Minority stake in SONAID

Contacts

SPIE
Rémy Dumoulin
Investor Relations Director
Tél. : + 33 (0)1 34 22 53 70
remy.dumoulin@spie.com

SPIE
Pascal Omnès
Communication Director
Tél. : + 33 (0)1 34 22 58 21
pascal.omnes@spie.com

Brunswick
Agnès Catineau
Tél. : + 33 (0)1 53 96 83 84
acatineau@brunswickgroup.com

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SPIE (EPA:SPIE) - SPIE - Q3-2015 Trading Update - On track to meet full-year EBITA and cash conversion targets

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