2017 full-year results

Transcription

1 & & é && é& Press release 2017 full-year results A robust performance in a transition year well positioned to benefit from renewed market momentum Cergy, March 9 th, highlights Growth in revenue, EBITA and Adjusted net income % revenue growth at constant currency (+5.8% excluding SAG) - EBITA up +13.5%; Group margin at 6.3% - Adjusted 1 EPS 2 at 1.37 (+7.4%) Pick up in France revenue % organic growth in 2017, strong improvement in H2 (+2.8%) Acceleration of European development - SAG integration well on track; now a leader in Germany - Significantly strengthened footprint in the Netherlands with 5 bolt-on acquisitions A record year for bolt-on M&A, funded by strong Free Cash Flow - 321m total full-year revenue acquired through 11 targeted bolt-on acquisitions - 102% cash conversion 3 ; strong Free Cash Flow, at 234 million after restructuring costs Successful refinancing of bank debt - New bank facilities fully committed, with lower cost and extended maturity (2023) Recommended dividend up +5.7%: 0.56 per share 4 Good momentum in Group organic growth to improve - Improving market environment in continental Europe - Continued delivery on bolt-on M&A strategy - Group EBITA margin at 6.0% or more, higher than 2017 pro forma level 5 1 Adjusted for amortisation of allocated goodwill and exceptional items 2 Earnings per share, fully diluted 3 Ratio of Cash flow from operations for the financial year to EBITA for the same year 4 Subject to shareholders approval at the next Annual General Meeting on May 25 th, Including all acquisitions made in 2017 as if they had been consolidated starting in January 1 st, 2017, 2017 pro forma EBITA margin would have been 5.9% 1

2 In millions of euros Restated 1 Change 2016 Published Revenue 6, , % 5,144.5 EBITA % EBITA margin 6.3% 6.9% 6.8% Adjusted net income, Group share % Reported net income, Group share % Operating cash flow Cash conversion 102% 122% 122% Free cash flow Net debt 1, Adjusted earnings per share, fully diluted ( ) % 1.28 Dividend per share ( ) % 0.53 Gauthier Louette, Chairman & CEO, commented: 2017 was a year of significant changes for, with the acquisition of SAG, the largest ever, a record level of bolt-on acquisitions, the launch of an ambitious reorganisation in France and the disposal of non-core activities. In 2017 we also had to face operational challenges in the UK, which impacted our financial performance. As it emerges from these structural changes, we believe the Group is stronger, truly European and well positioned to benefit from a renewed market momentum. Going forward, we expect further revenue growth, with improving organic trends and strong bolt-on M&A. Even if it will be masked in 2018 by consolidation impacts from last year s acquisitions, underlying margin improvement will resume. 1 Restated in accordance with IFRS 5 (refer to notes to 2017 consolidated financial statements for further details) 2

3 2017 results Consolidated revenue was 6,126.9 million in 2017, up +24.0% year-on-year, due to the consolidation of SAG since April 1 st, 2017 (+19.0%) and to the continued strong contribution from bolt-on acquisitions (+7.1%). Organic growth was -1.3% as expected, with declines in Oil & Gas and in the UK offsetting positive growth in most of our geographies. Foreign exchange impact was -0.8%. EBITA was million, up +13.5% compared to EBITA margin was 6.3%, compared to 6.9% in 2016 on a restated 1 basis (6.8% reported), reflecting margin pressure in France, adverse market conditions at Oil & Gas, as well as the one-off write-downs which affected the UK in the second quarter of Cash conversion was 102%, with Operating Cash Flow at million. Free Cash Flow was strong, at million, after 57.8 million of restructuring cash costs. Adjusted net income Group share (before amortisation of allocated goodwill and exceptional items) amounted to million, with adjusted EPS (fully diluted) at 1.37, up +7.4% compared to Net income Group share amounted to million, lower than its 2016 level of million, primarily due to higher restructuring costs and allocated goodwill amortisation in 2017, as well as a oneoff 35.8 million net gain from deferred tax adjustment in Net Debt was 1,531.9 million at December 31 st, 2017, up from million at December 31 st, The increase reflects the placing, in March 2017, of a 600 million bond to finance the acquisition of SAG. The net debt to EBITDA 2 leverage ratio was 3.3x. A dividend of 0.56 per share, representing a 5.7% increase on 2016, will be proposed to the Annual General Meeting of Shareholders on May 25 th, Since an interim dividend of 0.16 per share was paid in September 2017, the final dividend payment on May 31 st, 2018 (ex date: May 29 th, 2018) will be 0.40 per share if approved. 1 Restated in accordance with IFRS 5 (refer to notes to 2017 consolidated financial statements for further details) 2 Earnings before interest, taxes, depreciation and amortization for the last twelve months, computed as if all 2017 acquisitions had been consolidated starting in January 1 st, 2017 and including SAG synergies 3

4 Revenue In millions of euros Restated 1 Change o/w external growth o/w organic growth o/w foreign exchange 2016 Published France 2, , % +6.3% +1.1% 0.0% 2,253.5 Germany & CE 1, % % +0.8% -0.2% o/w Germany 1, % % +1.1% 0.0% North-Western Europe 1, , % +15.6% -2.4% -2.5% 1,374.3 Oil & Gas and Nuclear % +0.5% -11.8% -1.6% Group revenue 6, , % +26.1% -1.3% -0.8% 5,144.5 EBITA In millions of euros Restated 1 Change 2016 Published France % In % of revenue 6.3% 7.0% 7.0% Germany & CE % 45.2 In % of revenue 6.3% 4.9% 4.9% o/w Germany % 39.2 In % of revenue 6.7% 5.3% 5.3% North-Western Europe % 67.4 In % of revenue 4.1% 4.8% 4.9% Oil & Gas and Nuclear % 62.6 In % of revenue 9.9% 10.9% 10.6% Holding Group EBITA % In % of revenue 6.3% 6.9% 6.8% 1 Restated in accordance with IFRS 5 (refer to notes to 2017 consolidated financial statements for further details). 4

5 Performance by segment France With a +1.1% organic growth over the full year, revenue picked up in France in 2017, after four years of decrease. Organic growth in the second half of the year was higher than anticipated, at +2.8% (-1.1% in the first half). Growth came mostly from the Industrial and Telecom sectors, while activity in the Commercial sector remained very competitive. Growth from acquisitions was +6.3%, primarily reflecting the consolidation of SAG s French activities since April 2017, as well as bolt-on acquisitions. Strong competition in the Commercial sector and, to a lower extent, low initial margins in fiber-to-thehome deployment contracts resulted in margin decreasing to 6.3% in In 2017, initiated an ambitious reorganisation of its activities in France, in order to address more effectively the evolution of clients needs. Following the Ambition 2020 project, which led to the creation of two entities dedicated to Technical Facility Management ( Facilities) and Telecom and Energy infrastructure ( CityNetworks), is now completing the move from a regional multitechnical structure to a national, market-focused organisation, with the creation of two new divisions addressing the Industrial and the Commercial markets. France, a newly-created company, will thus regroup five entities: Facilities, CityNetworks, ICS, Industrie & Tertiaire (which will include two divisions, dedicated to the Industry and Commercial sectors) and Nuclear. This organisation is similar to that adopted in other countries. It aims at maintaining a strong proximity with customers through a dense footprint, while maximising commercial responsiveness and ensuring top-tier expertise and innovation. Germany & Central Europe EBITA for the Germany & Central Europe segment was million in 2017, up +166% compared to 2016, with an EBITA margin of 6.3%. Revenue grew by +104% due to acquisitions, while organic growth was +0.8%. The acquisition of SAG in March 2017 marked a turning point in s development in Germany. The integration is making fast and substantial progress and synergies are being delivered according to plan. s position on the German market was further enhanced by two bolt-on acquisitions and the Group plans to continue growing in this country. At our historical German operations, EBITA margin made further progress thanks to contract selectivity and strong customer activity across the board. 5

6 In Switzerland, after the restructuring carried out in 2016, started to benefit from a much stronger organisation and is now actively looking to grow while continuing to improve its margins. North-Western Europe EBITA for the North-Western Europe segment amounted to 54.3 million, down -6.3% compared to 2016, with EBITA margin at 4.1%. Revenue grew by +10.7%, including strong growth from acquisitions, at +15.6%, and a -2.4% organic decline. In the Netherlands, five bolt-on acquisitions enabled Nederland to gain leadership positions in the Smart City and Retail Installation markets, while strengthening its ICT capabilities. On the back of supportive market conditions, organic growth was solid and EBITA grew significantly. In the UK, reported a small positive EBITA despite the one-off loss recorded in the second quarter of 2017, as well as increased margin pressure in a more challenging economic environment, which led to negative organic growth. Having initiated the exit from low value-added activities, will focus on a smaller portfolio of core services going forward. In Belgium, EBITA grew slightly in 2017 as activity recovered, as anticipated, in the second half of 2017 after a slow start. In January 2018, was recognised as Top employer in Belgium for skills development at all levels, a good working environment and digitalization initiatives. In December 2017, signed an agreement for the sale of its Moroccan subsidiary, in line with the Group s strategy to focus on European markets. Oil & Gas and Nuclear The Oil & Gas and Nuclear segment turned in a 48.9 million EBITA, or 9.9% of revenue in Revenue contracted by -12.9% (-11.8% on an organic basis). s Nuclear activities saw, as planned, a modest decrease in revenue (-2.3%), linked to the Grand Carénage phasing, with no impact on margins. In Oil & Gas, revenue contracted by -17.4% at constant currency and margins decreased as anticipated. In-depth restructuring was effectively completed in 2017 to adapt central and regional overhead structures to current activity levels. 6

7 A record year for bolt-on M&A delivered strongly on its bolt-on acquisitions strategy in 2017, with 11 companies acquired, representing a record level of 321 million of full-year revenue (excluding SAG). Underpinned by the Group s strong Free Cash Flow, bolt-on acquisitions are the driving force of s growth model in very fragmented markets bolt-on M&A activity was primarily focused on Germany and The Netherlands and, to a lesser extent, on France. It allowed the Group to scale up positions in attractive markets, progress towards a balanced activity portfolio, develop ICT capabilities and acquire niche expertise (see appendix). The aggregate EBITA multiple for these transactions was 6.0x 1. Cash generation - Financing Free Cash Flow and net debt Cash conversion was 102% in 2017, with Operating Cash Flow at Structurally negative, net working capital represented -26 days of revenue at December 31 st, 2017 (-27 days excluding SAG), in line with December 31 st, 2016 level. Net capital expenditure remained very low, at 36.2 million or 0.6% of revenue. After interest, taxes paid and restructuring cash costs, Free Cash Flow was strong, at million, after a 57.8 cash outflow from restructuring. Net debt at December 31 st, 2017 was 1,531.9 million, compared to million at December 31 st, The increase reflects the issue, in March 2017, of a 600 million bond (fixed-rate, eurodenominated, with a 7-year maturity and an annual coupon of 3.125%) to finance the acquisition of SAG. The net debt to EBITDA 2 leverage ratio was 3.3x. In 2017, initiated the disposal of four non-core activities, with closing and cash proceeds expected in Before synergies and impact of working capital improvement Based on an adjusted normative EBITA for Ziut 2 Earnings before interest, taxes, depreciation and amortization for the last twelve months, computed as if all 2017 acquisitions had been consolidated starting in January 1 st, 2017 and including SAG synergies 7

8 Financing In March 2018, successfully secured the refinancing of its bank debt through two fully-committed undrawn new facilities: a term loan of 1,200 million and a revolving credit facility of 600 million, both maturing in 2023 (vs for existing facilities) and fully unsecured and unguaranteed (vs. guarantees from s main subsidiaries for existing facilities). These facilities will bear interest equal to EURIBOR (or any other applicable base rate) plus an opening margin of 1.70% for the term loan and 1.30% for the revolving credit facility, compared with 2.38% and 2.28% respectively for the existing facilities (see appendix). In March 2017, successfully issued a 600 million bond, in order to finance the acquisition of SAG (fixed-rate, euro-denominated, with maturity in 2024 and an annual coupon of 3.125%). Upon completion of the above refinancing, guarantees provided by s main subsidiaries for this bond will be automatically released in accordance with its terms and conditions. intends to continue to actively manage its debt and diversify its sources of financing. Liquidity remained high, at million at December 31 st, 2017 (including million net cash and 400 million of undrawn revolving credit facility). s long term corporate credit rating remains at BB (Standard & Poor s) and Ba3 (Moody s) pro forma On account of s particularly high M&A activity in 2017, pro forma revenue and EBITA margin for 2017 (i.e. including all acquisitions made in 2017 as if they had been consolidated starting January 1 st, 2017), are presented below for comparison purposes pro forma revenue would have been 6,501 million pro forma EBITA margin would have been 5.9%, reflecting the impact of the full-year consolidation of acquisitions made in 2017, in particular: SAG (Germany & Central Europe, France), consolidated over 9 months in 2017: due to the seasonal nature of the activity, the first quarter, which will be consolidated for the first time in 2018, has historically reported a small operating loss; 8

9 Ziut (The Netherlands), consolidated over 4 months in 2017: this company is currently not profitable and due to the seasonality of its activity, margin tends to be even lower in the first part of the year. See appendix for calculation details outlook expects strong revenue growth in 2018: Acquisitions made in 2017 are expected to bring additional incremental revenue in 2018 in the order of 370 million (of which approximately 200 million from SAG); Group organic growth is expected to improve compared to 2017; Revenue acquired in 2018 through bolt-on acquisitions is expected to be c. 200 million. As a result, Group revenue is expected to grow in excess of 7.0% at constant currency in Group EBITA margin is expected to be 6.0% or more, higher than 2017 pro forma level 1. Cash conversion is expected to be c.100%. The dividend pay-out ratio will be c.40% of Adjusted Net Income attributable to the Group. Consolidated financial statements The consolidated financial statements of the Group as of and for the year ended December 31 st, 2017 have been approved by the Board of Directors on March 8 th, Audit procedures on the consolidated financial statements are complete and the Statutory Auditors' report is in the process of being issued. 1 Including all acquisitions made in 2017 as if they had been consolidated starting in January 1 st, 2017, 2017 pro forma EBITA margin would have been 5.9% 9

10 The audited consolidated financial statements (full financial statements and notes) and the slide presentation of the 2017 consolidated annual results are available on our website in the Finance/Regulated Information section. Conference call for investors and analysts Date: Friday, March 9 th, am Paris time am London time Speakers: Gauthier Louette, Chairman & CEO Denis Chêne, Group CFO About As the independent European leader in multi-technical services in the areas of energy and communications, supports its customers to design, build, operate and maintain energy-efficient and environmentally-friendly facilities. With more than 46,500 employees and a strong local presence, achieved in 2017 consolidated revenues of 6.1 billion and consolidated EBITA of 388 million

11 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 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 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. 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 on April 18th, 2017, and is available on the website of the Company ( and of the AMF ( 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 includes pro forma financial information in relation to the financial year ended December 31st, 2017, which has been prepared as if all acquisitions made by in 2017 (including SAG) had been completed as of January 1st, This pro forma financial information is provided for information purposes only and does not represent the results that would have been achieved if these acquisitions 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 11

12 Appendix Consolidated income statement In thousands of euros Restated* Revenue 6,127,993 4,952,313 Other income 56,612 33,145 Operating expenses (5,864,742) (4,675,629) Recurring operating income 319, ,829 Other operating expense (67,922) (27,453) Other operating income 11,123 11,634 Operating income 263, ,010 Net income (loss) from companies accounted for under the equity method Operating income including companies accounted for under the equity method , ,436 Interests charges and losses from cash equivalents (58,275) (38,878) Gains from cash equivalents Costs of net financial debt (57,694) (38,691) Other financial expenses (32,902) (34,545) Other financial incomes 14,819 21,353 Other financial incomes and expenses (18,083) (13,192) Pre-tax income 187, ,553 Income tax expense (72,273) (46,869) Net income from continuing operations 115, ,684 Net income from discontinued operations (4,033) (11,652) NET INCOME 111, ,032 Net income from continuing operations attributable to:. Owners of the parent 114, ,672. Non-controlling interests 1, , ,684 Net income attributable to:. Owners of the parent 110, ,020. Non-controlling interests 1, , ,032 * Restated in accordance with IFRS 5 (refer to notes to 2017 consolidated financial statements for further details) 12

13 Reconciliation between revenue (as per management accounts) and revenue under IFRS In millions of euros Restated* Revenue (as per management accounts) 6, ,941.4 Sonaid (a) (7.8) (14.3) Holding activities (b) Others (c) (8.9) 2.2 Revenue under IFRS 6, ,952.3 * Restated in accordance with IFRS 5 (refer to notes to 2017 consolidated financial statements for further details) (a) (b) (c) SONAID is consolidated using the equity method in the Group s consolidated accounts whereas it is accounted proportionally (55%) in management accounts. Non-Group revenue of Operations and other non-operational entities. Re-invoicing of services provided by Group entities to non-managed joint ventures; re-invoicing to non- Group entities that do not correspond to operational activity (essentially re-invoicing of expenses incurred on behalf of partners); restatements of revenues from equity-accounted or non-consolidated entities. Reconciliation between EBITA and Operating income In millions of euros Restated* EBITA Amortisation of allocated goodwill (a) (59.8) (30.9) Restructuring costs (b) (44.5) (17.2) Financial commissions (1.6) (1.8) Minority interests (1.6) 0.1 Other non-recurring items (c) (16.9) 2.3 Operating Income (including equity-accounted companies) ,4 * Restated in accordance with IFRS 5 (refer to notes to 2017 consolidated financial statements for further details) (a) In 2017, amortisation of allocated goodwill includes 41.1 million pertaining to SAG. (b) In 2017, restructuring costs mainly relate to SAG integration ( 16.2 million), reorganisation in France ( 13.3 million) and restructuring of Oil & Gas activities ( 13.5 million). (c) In 2017, Other non-recurring items mainly include costs related to external growth project ( 8.9 million), and the recognition of a cost related to the free share plan allocation, in accordance with IFRS 2 ( 5.1 million). In 2016, Other non-recurring items included the capital gain subsequent to the change in consolidation method of SONAID pursuant to IFRS 11 ( 5.3 million), and costs relating to external growth projects ( 2.4 million). 13

14 Consolidated balance sheet In thousands of euros Dec. 31, 2017 Dec. 31, 2016 Non-current assets Intangible assets 1,075, ,366 Goodwill 3,015,955 2,207,341 Property, plant and equipment 180,446 99,923 Investments in companies accounted for under the equity method 3,062 2,913 Non-consolidated shares and long-term loans 65,081 58,421 Other non-current financial assets 5,142 4,633 Deferred tax assets 288, ,364 Total non-current assets 4,634,054 3,385,961 Current assets Inventories 37,281 24,554 Trade receivables 1,850,370 1,370,872 Current tax receivables 41,586 26,960 Other current assets 246, ,361 Other current financial assets 7,881 7,629 Cash management financial assets 4,800 5,500 Cash and cash equivalents 538, ,157 Total current assets from continuing operations 2,727,101 2,222,033 Assets classified as held for sale 396,069 15,238 Total current assets 3,123,170 2,237,271 TOTAL ASSETS 7,757,224 5,623,232 In thousands of euros Dec. 31, 2017 Dec. 31, 2016 Equity Share capital 72,416 72,416 Share premium 1,170,496 1,170,496 Consolidated reserves 86,085 (11,844) Net income attributable to the owners of the parent 110, ,020 Equity attributable to owners of the parent 1,439,399 1,415,088 Non-controlling interests 2,949 2,160 Total equity 1,442,348 1,417,248 Non-current liabilities Interest-bearing loans and borrowings 1,729,928 1,126,947 Non-current provisions 69,833 49,226 Accrued pension and other employee benefits 721, ,974 Other non-current liabilities 7,281 6,066 Deferred tax liabilities 369, ,845 Total non-current liabilities 2,897,324 1,742,058 Current liabilities Trade payables 990, ,008 Interest-bearing loans and borrowings (current portion) 337, ,293 Current provisions 139,502 93,225 Income tax payable 34,355 30,425 Other current operating liabilities 1,579,973 1,211,062 Total current liabilities from continuing operations 3,081,859 2,447,013 Liabilities associated with assets classified as held for sale 335,694 16,913 Total current liabilities 3,417,553 2,463,926 TOTAL EQUITY AND LIABILITIES 7,757,224 5,623,232 14

15 Net debt In millions of euros Dec. 31, 2017 Dec. 31, 2016 Loans and borrowings per balance sheet 2, ,459.2 Capitalized borrowing costs Others* (16.3) (0.7) Gross financial debt (a) 2, ,469.9 Cash management financial assets per balance sheet Cash and cash equivalent per balance sheet Accrued interest Gross cash (b) Consolidated net debt (a) (b) 1, (-) Cash held in discontinued activities Unconsolidated net cash (8.7) (1.7) Net debt 1, (*) "Others" in 2017 includes accrued interests on the Bond for 14.6m. Bank debt refinancing: cost of new facilities The tables below present the costs of new bank facilities which were fully-committed in March 2018 ( 1,200 million term loan and 600 million revolving credit facility) compared to that of facilities in place at present date ( 1,125 million term loan and 400 million revolving credit facility). These costs are margins added to EURIBOR (or any other applicable base rate) and vary with leverage ratio. In addition, a utilisation fee ranging from 0.10% p.a. to 0.40% p.a. will apply to the new revolving credit facility (no utilisation fee accrues on the existing revolving credit facility). Term loan Leverage ratio New facility Existing facility Higher than 4.0x 2.250% 2.625% Higher than 3.5x up to 4.0x 2.000% 2.625% Higher than 3.0x up to 3.5x 1.700% 2.375% Higher than 2.5x up to 3.0x 1.550% 2.125% Higher than 2.0x up to 2.5x 1.400% 1.875% Up to 2.0x 1.250% 1.625% Revolving Credit Facility Leverage ratio New facility Existing facility Higher than 4.0x 1.950% 2.525% Higher than 3.5x up to 4.0x 1.600% 2.525% Higher than 3.0x up to 3.5x 1.300% 2.275% Higher than 2.5x up to 3.0x 1.150% 2.025% Higher than 2.0x up to 2.5x 1.000% 1.775% Up to 2.0x 0.850% 1.525% 15

16 Consolidated cash flow statement In thousands of euros CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD 518, ,800 Operating activities Net income 111, ,032 Loss from companies accounted for under the equity method (490) (426) Depreciation, amortisation, and provisions 128,658 47,914 Proceeds on disposals of assets (1,071) 2,473 Dividend income - - Income tax expense 77,209 44,065 Elimination of costs of net financial debt 59,476 39,217 Other non-cash items 3,704 (229) Internally generated funds from (used in) operations 378, ,046 Income tax paid (62,403) (58,057) Changes in operating working capital requirements (19,507) 99,006 Dividends received from companies accounted for under the equity method Net cash flow from (used in) operating activities 297, ,345 Investing activities Effect of changes in the scope of consolidation (185,627) (170,803) Acquisition of property, plant and equipment and intangible assets (44,819) (36,449) Net investment in financial assets (59) (80) Changes in loans and advances granted 2,491 1,164 Proceeds from disposals of property, plant and equipment and intangible assets 8,711 8,348 Proceeds from disposals of financial assets Dividends received - - Net cash flow from (used in) investing activities (219,295) (197,538) Financing activities Issue of share capital 11 (53) Proceeds from loans and borrowings 607, Repayment of loans and borrowings (513,278) (63,874) Net interest paid (47,549) (35,755) Dividends paid to owners of the parent (106,312) (77,038) Dividends paid to non-controlling interests (344) (544) Net cash flow from (used in) financing activities (60,147) (176,333) Impact of changes in exchange rates (16,377) (17,741) Impact of changes in accounting policies - - Net change in cash and cash equivalents 1,579 (33,267) CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 520, ,534 16

17 2017 bolt-on acquisitions Company Date of acquisition Country Activity People employed Revenue (in m) AD Bouman BV 03/01/2017 Netherlands Installation services, incl. electro-technical work, heating systems, air conditioning, climate control and security in non-food retail spaces for national and international retailers Maintenance Mesure Contrôle (MMC) PMS Sicherheitstechnik + Kommunikation GmbH (PMS) 25/01/2017 France Predictive maintenance on French electronuclear sites (acoustic control, air leakage tests and infrared thermography). 06/04/2017 Germany Security and communications, from design and planning to installation and maintenance of fire detection, burglar alarm and access control systems, as well as smoke and heat extraction systems Lück Group 13/04/2017 Germany Holistic building technology services and data centre solutions (design, consulting, installation and maintenance of HVAC, electro-technical, security and communication solutions). Mer ICT 01/05/2017 Netherlands Provider of integrated communication solutions: (business telephony, connections and infrastructure, solutions for domotics in the healthcare sector and so-called collaboration applications). JM Electricité 12/07/2017 France Electrical installation works in the housing and tertiary sectors for private customers as well as public communities. Probia Ingénierie 20/07/2017 France Design and delivery of automated industrial equipment for material handling. Ziut B.V. 08/09/2017 Netherlands Installation, management and maintenance of public lighting, traffic control systems and video surveillance. Alewijnse Retail 14/11/2017 Netherlands Design and implementation of retail modification plans, as well as maintenance management and development of tailor-made solutions Inmeco 04/12/2017 Netherlands Commissioning, prevention, maintenance and repairing of industrial instrumentation devices S-Cube 20/12/2017 France Design, integration and maintenance of digital infrastructure, especially data centre solutions and hyperconvergence. 1,

18 2017 pro forma Pro-forma indicators are intended to provide a more comprehensive economic vision which incorporates the income statement over 12 months of companies acquired during 2017 irrespective of the initial consolidation date. In millions of euros Revenue EBITA EBITA margin FY17 reported 6, % Pro forma adjustments: SAG (Q1) (3.9) Ziut (8 months) 70.9 (3.0) Other 2017 acquisitions FY17 pro forma 6, % 18