SPIE (EPA:SPIE) - SPIE - Press release - Trading Update as at September 30th, 2017

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10/11/2017 07:00

Press release

                    Trading Update as at September 30th, 2017

                    SPIE on track to meet full-year targets

Cergy, November 10th, 2017

9m 2017 highlights

* Strong year-to-date revenue growth: +22.3% at constant currency (+6.1% ex
SAG)
    - Record contribution from bolt-on acquisitions
    - Pick up in France revenue
    - Revenue in line with expectations in all other segments

* Year-to-date EBITA up +7.9%
    - Group EBITA margin down year-on-year, in line with full-year forecast
    - No further impact from the one-off issue in the UK

* Full-year outlook confirmed

In millions of euros
(unaudited figures)  9m 2017  9m 2016               9m 2016
                              Restated(1)  Change   Published
Revenue             4,338.4     3,573.7    +21.4%    3,696.2
EBITA                 247.6       229.5     +7.9%      229.6
EBITA margin           5.7%        6.4%                 6.2%

Gauthier Louette, Chairman & CEO, commented:
'SPIE's revenue and EBITA for the first nine months of 2017 were in line with
our expectations, and the Group is on track to meet its full-year targets.
Building a leadership position in Germany is an overarching priority for SPIE,
and the integration of SAG, which is making swift progress, is a very important
step in this direction. Meanwhile, margins at our historical German operations
have progressed more than planned. In France, a progressive improvement in the
market background already translated into better revenue dynamics, even though
margins remained tight in the third quarter. To adapt to an increasingly
challenging UK market, we continued to selectively exit from lower value-added
activities. Overall, we are fully confident in the Group's prospects and we
continue to deliver on our strategy, which gives priority to quality,
customer-focused innovation, and value creation.'

(1) Restated in accordance with IFRS 5.

9m 2017 results

Group revenue was EUR4,338.4 million in the first nine months of 2017, up
+21.4% year-on-year, including +16.2% from SAG, consolidated since April 1st,
2017, a solid +6.1% total growth (including bolt-on acquisitions) at our
historical operations and a -0.9% foreign exchange impact. In the third quarter
of 2017, Group revenue grew +33.9% at constant currency (+7.7% excluding
SAG).

Group EBITA was EUR247.6 million, up +7.9% year-on-year. The Group EBITA margin
was 5.7%, compared to 6.4% in the first nine months of 2016. In the third
quarter of 2017, EBITA margin decreased to 6.5% (from 7.3% in the third quarter
of 2016) mostly due to the France segment and the Oil & Gas activity.

Comments by segment

France

As customer activity improved progressively, the France segment saw a pick up
in revenue and reported good growth in the third quarter of 2017. The telecom
sector remained dynamic, activity with industrial customers improved noticeably
and a slight increase in public sector activity was confirmed, whereas
competition in the commercial sector remained very high, prompting strong
pressure on margins.

Germany & Central Europe

In Germany, our historical operations reported strong year-on-year growth in
revenue, and margin progressed better than planned, benefitting from an
increasingly prominent position in a dynamic market, as well as the quality of
bolt-on acquisitions made over the past twelve months. Reflecting on the
quality of our services and brand image, SPIE has been elected best facility
management company in Germany in the 2017 Bell Management Consultants customer
satisfaction survey.
The integration of SAG is progressing very well, with the first synergies being
delivered according to plan and a vigorous cash flow recovery plan expected to
deliver results already this year.

In Switzerland, restructuring actions taken until the first half of 2016
continued to bear fruit and margins kept ramping up in the third quarter of
2017.

North-Western Europe

In the UK, as anticipated, there was no further impact from the one-off issue
encountered in our electricity distribution activity, which had led us to book
a loss in the first half of 2017, and the third quarter was back to positive.
In order to adapt to the increasingly challenging UK market, we continued to
selectively exit from lower value-added activities. After having started the
sale process of soft facility management activities (c.EUR37m annual revenue)
in the first half of 2017, we have initiated, in the third quarter, the exit
from underground utilities services (c.EUR60m annual revenue).

In the Netherlands, revenue grew strongly, driven by acquisitions and by a
supportive market background, while margins made further progress. The
acquisition of Ziut, a Dutch leader in Smart City solutions, was successfully
closed in September. In Belgium, trends remained solid, with further margin
improvement.

Oil & Gas and Nuclear

The performance of our Nuclear activities was in line with full-year
expectations of a modest decrease in revenue, linked to the "Grand Carénage"
phasing, with solid margins.

In Oil & Gas, the downsizing of our central and regional overhead structures is
substantially complete. The decline in both revenue and margins reported over
the first nine months of 2017 confirmed our forecasts for the year.

2017 full-year outlook confirmed

Revenue acquired in 2017 through bolt-on acquisitions expected between EUR270
million and EUR300 million on a full-year basis.

Group revenue to grow by 23% to 25% at constant FX (c.6% ex SAG).

Group EBITA margin between 6.3% and 6.5%.

Cash conversion at c.100%. Adjusted EPS to grow strongly.

Dividend pay-out ratio at c.40% of adjusted net income attributable to the
Group.

Conference call for investors and analysts

Date: Friday, November 10th, 2017
9.00 am Paris time - 8.00 am London time

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

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 2016 consolidated revenues of EUR5.1 billion and consolidated EBITA
of EUR352 million.

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 (including the
successful integration of SAG) 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 "Risk factors" in the 2016 Registration
Document, which received the AMF visa n° R. 17 - 0017 on April 18th, 2017, and
is available on the website of the Company (www.spie.com) and of the AMF
(www.amf-france.org).

This press release includes only summary information and does not purport to be
comprehensive. No reliance should be placed on the accuracy or completeness of
the information or opinions contained in this press release.

The historical figures (up to FY16) related to SAG included in this press
release have been provided to SPIE by SAG within the context of the acquisition
process. These historical figures have not been audited or subject to a limited
review by the auditors of SPIE.

This press release includes pro forma financial information in relation to the
financial year ended December 31st, 2016, which has been prepared as if the
acquisition of SAG by SPIE had been completed as of January 1st, 2016. This pro
forma financial information is provided for information purposes only and does
not represent the results that would have been achieved if this acquisition had
actually been completed on such date.

This press release does not contain or constitute an offer of securities for
sale or an invitation or inducement to invest in securities in France, the
United States or any other jurisdiction.

Appendix

3rd quarter Group revenue and EBITA and FY16 restated figures

In millions of euros
(unaudited figures)
                  2017               2016 Restated(1)            Change
          9m      Q3       H1       9m      Q3     H1       9m     Q3     H1
Revenue 4,338.4 1,577.7  2,760.7 3,573.7 1,181.2 2,392.4  +21.4% +33.6% +15.4%

EBITA     247.6   102.1    145.5   229.5    85.8   143.7   +7.9% +19.0%  +1.2%
EBITA
margin     5.7%    6.5%     5.3%    6.4%    7.3%    6.0%

FY16R(1)
4,997.4
  349.6
   7.0%

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

In millions of euros
(unaudited figures)
                                 9m 2017      9m 2016
                                             Restated(1)
Revenue (as per management
accounts)                        4,338.4       3,573.7
Sonaid                              (6.5)        (11.7)
Holding activities                  16.8          23.6
Others                              (6.3)          7.9
Revenue under IFRS               4,342.5       3,593.5

Reconciliation between EBITA and Operating income

In millions of euros
(unaudited figures)               9m 2017      9m 2016
                                             Restated(1)
EBITA                              247.6         229.5
Amortisation of intangible
assets (allocated goodwill)        (13.4)        (25.6)
Restructuring costs and
discontinued activities            (23.2)         (8.5)
Financial commissions               (1.2)         (1.4)
Non-controlling interests           (0.5)         (0.8)
Others                             (16.0)          3.4
Operating Income                   193.3         196.6

(1) Restated in accordance with IFRS 5.

Press 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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