SPIE (EPA:SPIE) - SPIE - Press release - Quarterly information at September 30th, 2020

Transparency directive : regulatory news

05/11/2020 07:00

Press release

                 Quarterly information at September 30th, 2020

                         Good recovery momentum in Q3
                              Outlook confirmed

Cergy, November 5th, 2020

Swift recovery in Q3, with revenue and EBITA margin close to last year's
levels

- Q3 revenue decrease limited to -1.8% on an organic basis (-3.1% on a reported
  basis)
- Good recovery momentum post lockdown in France, growth in Germany
- Q3 EBITA margin only 50 bps below that of Q3 2019

Demonstrating strong resilience through the Covid-19 crisis

- Revenue decrease over the first 9 months of 2020 limited to -5.5% (-6.4%
  organically)
- Year-to-date margin decrease narrowed to -130 bps, compared to -170 bps in H1
  2020

Outlook confirmed

- H2 2020 Group revenue expected close to H2 2019 level on an organic basis;
- H2 2020 Group EBITA margin expected within 50 basis points from H2 2019 level
  of 7.0%;
- Continued robust cash generation, leading to a limited increase in year-end
  leverage(1), expected at maximum 3.0x in 2020. Significant decrease expected
  in 2021.

Recent stimulus plan announcements supportive of SPIE's markets

- French and German plans supporting energy transition and connectivity
- SPIE well positioned with c.35% green share of revenue per the E.U.
  taxonomy(2) and a leading expertise in information & communication
  technologies.

In millions of euros             2020/ 2019R(3)               2020/ 2019R
(unaudited)             Q3 2020         Change        9m 2020      Change


Revenue                1,715.6           -3.1%        4,737.2      -5.5%
Organic growth           -1.8%                          -6.4%
EBITA                     96.4          -10.4%          189.7     -28.1%
EBITA margin              5.6%         -50 bps           4.0%   -130 bps

(1) Excluding IFRS 16.
(2) Based on FY19 revenue and the European Union draft taxonomy for sustainable
activities as of February 2020.
(3) 2019 figures have been restated to account for the contribution of SPIE
UK's schools facility management activity. Previously under a divesture
process, it was presented as a discontinued operation in accordance with IFRS
5. As part of SPIE UK's reorganisation, the divesture process has been stopped
and this activity, with a realigned service portfolio, has been reintegrated
into the continued perimeter

Gauthier Louette, Chairman & CEO, commented: 'In the third quarter, SPIE's
revenue and margin  came back close to last year's levels, showing a
significant sequential improvement compared to the previous quarter, and
confirming our strong resilience since the onset of the Covid-19 crisis.
Business recovered rapidly in France, and we experienced good revenue growth in
Germany. Cash collection remained very strong through the quarter.
Most European countries have recently stepped up Covid-19 restrictions, yet the
services we provide are mission-critical and firmly driven by the energy
transition and the digital transformation. The recently announced stimulus
plans are supportive of our markets and will contribute to our future growth,
thanks to our comprehensive service offering in energy efficiency, energy
infrastructure, clean mobility and information and communication
technologies.'

Revenue

Q3 2020

Revenue was EUR1,715.6 million in Q3 2020, down -3.1% year-on-year. On an
organic basis, the decline was limited to -1.8%, reflecting a rapid business
recovery following the sharp decline caused by Covid- 19-related lockdowns in
Q2. Growth from 2019 acquisitions was +0.3%, while the impact from disposals
was -1.2%. Currency movements accounted for -0.4%.

In millions of euros
(unaudited)               Q3 2020       Q3 2019R(1)      Change

France                     642.4           661.0         -2.8%
Germany & CE               622.4           613.8         +1.4%
o/w Germany                523.0           494.3         +5.8%
North-Western Europe       336.5           364.7         -7.7%
Oil & Gas and Nuclear      114.3           130.4        -12.4%
Group revenue            1,715.6         1,769.9         -3.1%

o/w organic   o/w external   o/w disposal(2)  o/w foreign
   growth        growth                         exchange

-2.8%           -                  -               -
+0.8%           +0.9%              -           -0.3%
+4.6%           +1.2%              -               -
-1.9%           -              -5.7%           -0.2%
-9.3%           -                  -           -3.1%
-1.8%           +0.3%          -1.2%           -0.4%

9m 2020

Over the first nine months of the year, consolidated revenue was EUR4,737.2
million, down -5.5% year-on- year. Revenue contracted -6.4% on an organic
basis. Growth from acquisitions was +1.8%, while impact from disposals was
-0.9%. The net impact from currency movements was insignificant.

(1) 2019 figures have been restated to account for the contribution of SPIE
UK's schools facility management activity. Previously under a divesture
process, it was presented as a discontinued operation in accordance with IFRS
5. As part of SPIE UK's reorganisation, the divesture process has been stopped
and this activity, with a realigned service portfolio, has been reintegrated
into the continued perimeter
(2) Disposal of SPIE?s UK mobile maintenance activities, completed in March
2020

In millions of euros
(unaudited)            9m 2020    9m 2019R(1)    Change

France                 1,695.6      1.909.9      -11.2%
Germany & CE           1,710.7      1,636.6       +4.5%
o/w Germany            1,422.2      1,338.9       +6.2%
North-Western Europe     990.3      1,083.7       -8.6%
Oil & Gas and Nuclear    340.5        382.3      -10.9%
Group revenue          4,737.2      5,012.5       -5.5%

o/w organic   o/w external   o/w disposal(2)  o/w foreign
   growth        growth                         exchange

-12.1%           +0.9%           -                -
-0.1%           +4.5%           -               +0.1%
+1.4%           +4.8%           -                -
-4.7%           -               -4.1%           +0.2%
-10.5%           -               -               -0.4%
-6.4%           +1.8%           -0.9%            0.0%

France

In Q3, the France segment's revenue recorded a limited -2.8% organic
contraction, on a high comparison basis (+7.0% in Q3 2019). Activity rapidly
returned to normal levels through the quarter, with a good recovery momentum in
all divisions. Telecom infrastructure services continued to be very dynamic.
Business levels were robust in industry services, technical facility
management, commercial installation and information and communication
services.

Over the first nine months of 2020, the segment's revenue declined by -11.2%,
including a -12.1% organic contraction. The full-year consolidation of Cimlec
Industrie, acquired in July 2019, contributed for +0.9%.

Germany & Central Europe

The Germany & Central Europe segment's revenue grew +1.4% in Q3, of which +0.8%
on an organic basis.

Germany delivered a very strong quarter, with organic growth at +4.6%,
reflecting solid underlying trends in a country where Covid-19 impacts on our
activities have been limited. Transmission & Distribution services remained
very dynamic, firmly driven by energy transition investments. Activity levels
in Technical Facility Management were solid, notably in the logistics sector.

Revenue in other geographies was down overall, affected by contract phasing in
Hungary and lower activity in Austria, while Poland recorded a good growth.

(1) 2019 figures have been restated to account for the contribution of SPIE
UK's schools facility management activity. Previously under a divesture
process, it was presented as a discontinued operation in accordance with IFRS
5. As part of SPIE UK's reorganisation, the divesture process has been stopped
and this activity, with a realigned service portfolio, has been reintegrated
into the continued perimeter
(2) Disposal of SPIE?s UK mobile maintenance activities, completed in March
2020

Over the first nine months of 2020, the Germany & Central Europe segment has
shown remarkable resilience. Organic growth remained broadly flat (-0.1%)
despite the Covid-19 crisis, and revenue grew +4.5% thanks to the acquisitions
made in 2019 (Osmo, Telba, Christof Electrics).

North-Western Europe

Revenue in the North-Western Europe segment recorded a limited -1.9% organic
contraction in Q3. Due to the disposal of UK mobile maintenance activities in
March 2020, revenue decreased by -7.7% on a reported basis.

In the Netherlands, SPIE continued to benefit from solid underlying trends,
particularly in infrastructure services and technical facility management,
offsetting headwinds in industry services. Revenue in the United Kingdom showed
resilience in Q3, underpinned by data center contracts. In Belgium, post
lockdown recovery was rapid.

Over the first nine months of the year, the segment's revenue contracted by
-8.6%, of which -4.7% on an organic basis.

Oil & Gas and Nuclear

The Oil & Gas and Nuclear segment's revenue declined -12.4% in Q3, of which a
-9.3% organic decrease and a -3.1% impact from currency movements.

In a difficult market environment, Oil & Gas Services continued to show
resilience, mirroring our focus on recurring maintenance and operations. In Q3,
a high-single digit organic revenue contraction was compounded by a negative
currency impact due to the weakening of the US Dollar.

In Nuclear Services, Q3 revenue was lower year-on-year as a high 'Grand
Carénage' workload initially planned in H2 was spread out into 2021, and the
Flamanville EPR project continued to ramp down.

Over the first nine months of the year, the segment's revenue was down -10.9%,
including a -10.5% organic contraction.

EBITA

Group EBITA was EUR96.4 million in Q3 2020, down -10.4% compared with Q3 2019R.
EBITA margin  was 5.6%, down only 50 basis points year-on-year, consistent with
our H2 2020 outlook.

Additional expenses generated by the health situation (equipment, lower
productivity) are being gradually passed on to customers. Reorganisations
initiated in the second quarter in the UK and in Oil & Gas services are
producing benefits.

Over the first nine months of the year, Group EBITA was EUR189.7 million, down
-28.1% year-on-year. EBITA margin was 4.0%, down -130 basis points.

Outlook confirmed

Most European countries have recently stepped up Covid-19 restrictions, while
preserving business continuity for our type of services. SPIE continues to
expect trading in H2 2020 to be close to last year's levels. In an uncertain
economic context, this reflects the Group's resilience as a provider of
mission- critical services across a broad customer portfolio. In particular:

* H2 2020 Group revenue expected close to H2 2019 level on an organic basis;

* H2 2020 Group EBITA margin expected within 50 basis points from H2 2019 level
of 7.0%;

* Continued robust cash generation, leading to a limited increase in year-end
leverage(1), expected at maximum 3.0x in 2020. Significant decrease expected in
2021.

Conference call for investors and analysts

Date: Thursday, November 5th, 2020
9.00 am Paris time - 8.00 am London time

Speakers:
Gauthier Louette, Chairman & CEO Michel Delville, CFO

Dial-in details:
* FR: +33 (0) 1 7037 7166
* UK: +44 (0) 20 3003 2666
* Password: spie

Webcast: https://channel.royalcast.com/webcast/spie/20201105_1/

(1) Excluding IFRS 16

Next events

2020 Full-year Results: March 11th, 2021 before market opening

Quarterly information at March 31st, 2021: April 29th, 2021 2021

Half-year Results: July 28th, 2021

Quarterly information at September 30th, 2021: November 4th, 2021

Financial definitions

Organic growth represents the production completed during the twelve months of
year N by all the companies consolidated by the Group for the financial year
ended December 31 of year N-1 (excluding any contribution from any companies
acquired during year N) compared with the production performed during the
twelve months of year N-1 by the same companies, independently of the date on
which they were first consolidated within the Group.

EBITA represents adjusted operating income before amortization of allocated
goodwill, before tax and financial income.

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 about 47,200 employees and a strong local presence, SPIE achieved in 2019
consolidated revenues of EUR6.9 billion and consolidated EBITA of EUR416
million.

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

IMAGE 7
Laurent Poinsot
Tel. + 33 (0)1 53 70 74 77
lpoinsot@image7.fr

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, especially in the context of
the current health crisis. 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 2 "Risk factors and internal control" in SPIE's 2019 Universal
Registration Document, filed with the French Financial Markets Authority (AMF)
on April 17th, 2020, which is available on the website of SPIE (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. 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

Group revenue and EBITA

In millions of euros                2020
                          9m         Q3          H1
Revenue                4,737.2   1,715.6      3,021.6
EBITA                    189.7      96.4         93.3
EBITA margin              4.0%      5.6%         3.1%

              2019R(1)                            2019 Reported
9m               Q3         H1             9m           Q3         H1
5,012.5      1,769.9      3,242.6      4,982.7      1,759.0      3,223.8
  264.0        107.6        156.4        263.9        107.6        156.3
   5.3%         6.1%         4.8%         5.3%         6.1%         4.8%

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

In millions of euros (unaudited)          9m 2020     9m 2019R(1)

Revenue (as per management accounts)      4,737.2      5,012.5
Sonaid                                       -0.3         -1.2
Holding activities                           15.6         20.5
Others                                        2.3         15.2
Revenue under IFRS                        4,754.8      5,047.0

Reconciliation between EBITA and Operating income

In millions of euros (unaudited)      9m 2020   9m 2019R
EBITA                                   189.7     264.0
Amortisation of allocated goodwill      -41.0     -43.8
Restructuring costs                     -13.9      -4.4
Financial commissions                    -1.0      -1.0
Impact of equity affiliates               1.7      -1.5
Others                                  -46.3      -1.7
Consolidated Operating Income            89.2     211.6

(1) 2019 figures have been restated to account for the contribution of SPIE
UK's schools facility management activity. Previously under a divesture
process, it was presented as a discontinued operation in accordance with IFRS
5. As part of SPIE UK's reorganisation, the divesture process has been stopped
and this activity, with a realigned service portfolio, has been reintegrated
into the continued perimeter

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03/11/2023 06:52

SPIE (EPA:SPIE) - SPIE - Press release - Quarterly information at September 30th, 2020

Transparency directive : regulatory news

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