SPIE (EPA:SPIE) - SPIE - SEPTEMBER 30th, 2016 TRADING UPDATE

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04/11/2016 07:00

Press Release

                       SEPTEMBER 30th, 2016 TRADING UPDATE

                 Continued delivery despite a mixed background

                      On track to meet full-year targets

Cergy, November 4th, 2016

Highlights

* Continued delivery despite a mixed background
  o Q3: improving revenue trends, stable EBITA margin
  o EBITA margin up 17 bps over 9 months
  o EBITA: +5.6% YTD excluding Oil & Gas (-2.0% at Group level)
  o Revenue: +0.6% YTD excluding Oil & Gas (-4.6% at Group level)

* Active M&A
  o 6 acquisitions in 2016 to date, adding annualised revenue of EUR145 million
  o Strategic development in Germany & Central Europe and ICT
  o Growing number of potential acquisitions under review

* 2016 full-year outlook confirmed
  o Revenue to grow by c.3% excluding Oil & Gas
  o c.EUR200 million of acquired revenue
  o Group EBITA margin to grow by 15 to 20 bps
  o 100% cash conversion

In millions of euros
(unaudited figures)                  9m 2015
                       9m 2016   Restated(1)     Variance

Revenue                3,696.2       3,875.6        -4.6%
EBITA                    229.6         234.3        -2.0%
EBITA margin              6.2%          6.0%      +17 bps

(1) Restated in accordance with IFRS 5

Gauthier Louette, Chairman & CEO, commented: 'Despite a mixed economic
background, with  a particularly challenging Oil & Gas market, SPIE continues
to deliver a resilient performance and we expect 2016 to be another year of
EBITA growth, excellent cash conversion and dynamic M&A activity. With 6
companies acquired in 2016 to date, our strategy of reinvesting our strong and
recurring free cash flow in bolt-on acquisitions provides us with low-risk,
quasi- organic growth targeted on the strategic priorities of the Group. In
Germany, our second largest market, we are ahead of schedule in terms of margin
improvement and we see good growth potential, both organically and through
acquisitions.'

Group revenue was EUR3,696.2 million in the first 9 months of 2016, down -4.6%
year-on-year due to the contraction of our Oil & Gas activities. Excluding
Oil & Gas, revenue was up 0.6%. In the 3rd  quarter of 2016, revenue trends
improved, with Group revenue down -2.9%, versus -5.5% in the first half of the
year. Excluding Oil & Gas, revenue was up 1.9% in the quarter (despite a -1.8%
impact of the sudden weakening of the GBP), whereas it was stable in the first
half of the year.

Group EBITA was EUR229.6 million, down -2.0% year-on-year and up 5.6% excluding
Oil & Gas. EBITA margin was 6.2%, up 17 basis points compared to the first
9 months of 2015. In the 3rd  quarter of 2016, EBITA margin was 6.9%, stable
year-on-year.

Comments by segment

France

In the France segment, the economic environment has remained challenging,
several regions showing, however, better trends. Certain industrial sectors
such as Telecoms, Aeronautics, and Pharmaceutical continued to prove the most
resilient. After a marked contraction in 2015, the public sector showed some
signs of stabilisation. Against this backdrop, our constant focus on contract
selectivity and cost base adjustment continued to translate into excellent
margins.

The creation of SPIE Facilities and SPIE CityNetworks is progressing as
planned. It will enhance our client offering, improve our processes and
strengthen our innovation capability as early as 2017.

Germany & Central Europe

In Germany, EBITA margin made further progress towards our short-term target of
5%, which will be reached ahead of schedule. Revenue growth over the first nine
months of 2016 was strong, benefitting from recent acquisitions and from the
ramp up of organic growth.

In Central Europe, we completed in August 2016 the acquisition of AGIS Fire and
Security Group, which will strengthen our position as a significant player in
the Polish market. In Switzerland, the restructuring process is progressing as
planned.

North-Western Europe

The North-Western Europe segment reported an increase in both revenue and EBITA
over the first nine months of 2016, with a good contribution from recent
acquisitions and in spite of the negative translation impact of a weaker GBP.

Our UK business reported better organic growth in the 3rd quarter, as planned.
Both Belgium  and the Netherlands kept delivering margin increases, with
dynamic revenue trends.

Oil & Gas and Nuclear

Our Nuclear activities reported solid year-on-year growth in both margin and
revenue. Activity was particularly strong during the summer, as we were
actively involved in the 'Grand Carénage' nuclear reactors life extension
programme.

In Oil & Gas, market conditions remain very challenging, with particularly low
customer activity and intense competition. However, our negotiation discipline
and highly flexible cost base allowed us to continue to deliver steady
margins.

Acquisitions

On August 31st, 2016, SPIE finalised the acquisition of AGIS Fire and Security
Group, a specialist in fire protection, security and building technology
solutions, with operations mainly in Poland and Hungary, and 2015 revenue of
EUR28 million. With this acquisition, SPIE strengthens its geographical
footprint in Central Europe.

On October 11th, 2016, SPIE announced its intention to purchase Alewijnse
Technisch Beheer ("Alewijnse TB") in the Netherlands. Alewijnse TB is a
technical services provider focusing on the management of building-related
installations, with more than 200 employees and annual revenue of approximately
EUR33 million. This acquisition will enable SPIE to expand its customer
portfolio in the Netherlands and densify its presence in the central part of
the country.

2016 full-year outlook

We expect 2016 to be another year of EBITA growth, excellent cash conversion
and strong M&A activity.

Including  acquisitions, revenue should grow, for  the whole of  our  non-Oil &
Gas business,    by c.3%.

With 6 acquisitions in 2016 to date, we have acquired EUR145 million of
annualised revenue and anticipate reaching our target of acquiring
approximately EUR200 million over the full year.

We anticipate Group EBITA margin for the full year to grow by 15 to 20 basis
points.

Cash conversion should be 100%, consistent with our long term track record.

Analyst and investor conference call

Speakers:
Gauthier Louette, Chairman & CEO
Denis Chêne, Group CFO

Date:
Friday, November 4th, 2016
9:00 am Paris time - 8:00 am London time

Upcoming events

SPIE 2016 investor day: focus on SPIE Nederland - December 6th, 2016.
FY16 results - March 10th, 2017 before market opening.

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 38,000 employees working from close to 600 sites in 38 countries, SPIE
achieved in 2015 consolidated revenues of EUR5.3 billion and consolidated EBITA
of EUR351 million.

SPIE IR App: easy access to the latest financial information on SPIE when you
are on the move.
Available for iPad, iPhone and Android devices.

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

Disclaimer

Certain information included in this press release 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.

Forward-looking statements speak only as of the date of this press release and
SPIE expressly disclaims any obligation or undertaking to release any update or
revisions to any forward- looking statements included in this press release to
reflect any change in expectations or any change in events, conditions or
circumstances on which these forward-looking statements are based. Such
forward- looking statements are for illustrative purposes only. Forward-looking
information and statements are not guarantees of future performances and are
subject to  various risks and uncertainties, many of which are difficult to
predict and generally beyond the control of SPIE. Actual results could differ
materially from those expressed in, or implied or projected by, forward-looking
information and statements. These risks and uncertainties include those
discussed or identified under Chapter 4 "Facteurs de Risques" in the 2015
Registration Document, which received the AMF visa n° R. 16 - 00 30 on April
28th, 2016, and is available on the website of the Company (www.spie.com) and
of the AMF (www.amf-france.org).

Appendix

3rd quarter Group revenue and EBITA

In millions of euros
(unaudited figures)
                         2016                   2015 Restated(1)
                H1        Q3       9m         H1       Q3       9m

Revenue      2,431.7   1,264.5   3,696.2   2,573.1   1,302.4   3,875.6
EBITA          142.2      87.4     229.6     144.2      90.0     234.3
EBITA margin    5.8%      6.9%      6.2%      5.6%      6.9%      6.0%

          Variance
    H1       Q3        9m

  -5.5%    -2.9%      -4.6%
  -1.4%    -2.9%      -2.0%
+24 bps    0 bps    +17 bps

Reconciliation between revenue (as per management accounts) and revenue under
IFRS

In millions of euros
(unaudited figures)              9m 2016          9m 2015
                                              Restated(1)
Revenue
(as per management accounts)     3,696.2          3,875.6
Sonaid                             (11.7)            92.5
Holding activities                  23.6             19.3
Others                               0.9             (1.5)
Revenue under IFRS               3,709.0          3,985.9

Reconciliation between EBITA and Operating income

In millions of euros
(unaudited figures)
                                 9m 2016          9m 2015
                                              Restated(1)

EBITA                              229.6            234.3
Amortisation of intangible
assets (allocated goodwill)        (27.6)           (25.4)
Discontinued activities and
restructuring costs                 (5.9)            (0.4)
Financial commissions               (1.4)            (1.3)
Non-controlling interests           (0.8)             2.8
Others                               0.4             (3.0)
Operating Income                   194.3            207.0

(1) Restated in accordance with IFRS 5

Contacts

SPIE
Pascal Omnès
Group Communications Director
Tel. + 33 (0)1 34 41 81 11
pascal.omnes@spie.com

SPIE
Thomas Guillois
Investor Relations Director
Tel. + 33 (0)1 34 41 80 72
thomas.guillois@spie.com

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

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