2017 Half-Year Results July 28 th, 2017

Transcription

1 2017 Half-Year Results July 28 th,

2 Disclaimer This presentation 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. Certain information included in this presentation and other statements or materials published or to be published by SPIE are not historical facts but are forwardlooking 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 presentation and SPIE expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements in this presentation 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 in this presentation 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 2016 Registration Document, which received the AMF visa n R on April 18 th, 2017, and is available on the website of the Company ( and of the AMF ( This presentation includes pro forma financial information in relation to the financial years ended December 31 st, 2011 and 2013 that have been prepared as if the Group had been acquired by the Consortium at January 1 st, 2011 and all the acquisitions made in 2013, including Hochtief s Service Solutions, had been acquired at January 1 st, 2013.These pro forma information are provided only for information purposes and do not represent the results that would have been achieved if these acquisitions had actually been completed on January 1 st, 2011 and This presentation 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 presentation. The historical figures (up to FY16) related to SAG included in this presentation 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 presentation includes pro forma financial information in relation to the financial year ended December 31 st, 2016, which has been prepared as if the acquisition of SAG by SPIE had been completed as of January 1 st, 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

3 H Highlights Gauthier Louette, Chairman & CEO - 3 -

4 Postbank branch network, Germany SPIE implements a new energy management system in 61 locations, with identification of a considerable energysaving potential of 1,750,000 kwh of electricity and 2,570,000 kwh of heating per year - 4 -

5 Lyon Saint-Exupéry Airport, France SPIE CityNetworks, working for Orange, is deploying 3G-4G network coverage in the airport s new terminal, and renovating existing equipment in terminals 1 and 2-5 -

6 Luchon thermal spa complex, France SPIE is upgrading the entire heating and air-conditioning system of the largest thermal spa complex in the Pyrenees - 6 -

7 Holland malt Eemshaven plant, The Netherlands SPIE provides electrotechnical installations for the plant s expansion, which will double its capacity by

8 H financial highlights Revenue growth Stronger than expected +5.3% ex SAG +16.6% incl. SAG 1 1 Bolt-on M&A Ahead of full-year outlook 267m Total revenue secured EBITA Up +1.2% Adjusted net earnings Up +4.4% % 6.0% 5.3% 67.5m 70.5m H H1 2016R H H H1 2016R H H1 2016R H Notes: 1 Total growth at constant FX - 8 -

9 SAG part of SPIE since March 31 st, 2017 Step-up in Germany & Central Europe revenue Geographical balancing in progress +70% o/w SAG : +52% France H revenue 44% 18% Germany & CE France H revenue 40% 27% Germany & CE H H H H % O&G and Nuclear 26% NW Europe O&G and Nuclear 9% 24% NW Europe Integration progressing swiftly All work streams on track First synergies already delivered to plan m 20 5 Divestment of SAG s Gas & Offshore activities initiated Does not fit within SPIE s strategy Accounted for under IFRS 5 as discontinued operation c.14% of SAG 2016 revenue

10 H operating highlights Strong performance in Germany Supportive market background Steady margin improvement France: revenue to stabilize in 2017 Environment still challenging Current trends pointing to improvement in the medium term Underperformance in the UK Impacting Group margin in H1 No further impact expected in H2 Continued contraction in Oil & Gas Margins affected Downsizing in progress

11 Continued strong bolt-on M&A 8 Acquisitions 1 267m Total annual revenue acquired 1 Already ahead of full-year guidance North-Western Europe 4m 5m Germany & Central Europe 130m H acquisitions targeted on the Group s development priorities: Progress towards a balanced activity portfolio in Germany (Lück, adding strong Mechanical and Electrical services capabilities, PMS) (1) 114m 3m Scale up positions in attractive markets (Ziut 1 in the Smart City market, Ad Bouman) Develop ICT capabilities (Mer) France 5m 3m Nuclear 3m Acquire niche expertise (MMC in nuclear predictive maintenance, Probia Ingénierie in automated material handling equipment) Densify local footprints (JM Electricité) Notes: Figures above are annual revenue of each company acquired 1 Signing of the acquisition of Ziut subject to finalisation of Works Councils consultation

12 H Financial Results Denis Chêne, CFO

13 Income statement highlights m H H1 2016R 1 Change H Published FY16R 2 Revenue 2, , % 2, ,083.1 EBITA % EBITA margin 5.3% 6.0% 5.8% 6.9% Interest charges (23.7) (18.5) (18.5) (39.4) Net income (Group share) Adjusted net earnings % Notes: 1 Restated in accordance with IFRS 5 (refer to the notes to 2017 interim consolidated financial statements for further details) 2 Restated in accordance with IFRS 5, based on the assumption that no further activity is discontinued in H

14 Strong revenue growth +15.4% In m: -1.1% +6.4% +11.3% % -29 2,761 2, SAG Bolt-on +5.3% H1 2016R 1 Organic Acquisitions FX H Total revenue growth ex FX: +16.6% Notes: 1 H figures are restated in accordance with IFRS 5 (refer to the notes to 2017 Interim financial statements for further details)

15 EBITA +1.2%, margin slightly down Group EBITA ( m) Group EBITA margin % Full year 6.2% 5.2% 6.4% 5.4% 6.6% 5.6% 6.9% 6.0% 5.3% Half year H FY13 H FY14 H FY15 H1 FY16R R 1 2 H R 2017 Notes: 1 Pro forma financial information including all acquisitions carried out during 2013, in particular the Hochtief Service Solutions activities, as if such acquisitions had been carried out as of January 1 st, figures are restated in accordance with IFRS 5 (refer to the notes to 2017 Interim consolidated financial statements for further details)

16 Key cash conversion drivers Negative working capital Low capex requirement Working capital in days of revenue 1 : Net Capex: (2) (21) (8) (27) (8) ex SAG 2 Jun-15 Dec-15 Jun-16 Dec-16 Jun % 0.6% 0.6% 0.5% 0.6% Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 m % of revenue Note: 1 As the OCTG activity s contribution is equity-accounted since January 1 st, 2016 (fully consolidated before), it has been restated from 2014 and 2015 positions for comparison purposes. 2 (6) days including SAG

17 Cash flow statement m H H1 2016R 1 FY16R 1 EBITA Depreciation Capex (16.1) (13.4) (28.1) Change in working capital and provisions (311.5) (226.0) 70.0 Operating cash flow (157.3) (78.3) Taxes paid (38.2) (23.2) (58.1) Net interest paid (17.1) (16.4) (35.8) Other 2 (21.0) (15.9) (40.4) Free cash flow (233.6) (133.8) Acquisitions (637.7) (27.2) (95.9) Dividends (81.5) (77.0) (77.6) FX impacts (3.5) (7.0) (17.7) Other 3 (41.6) (78.5) (89.4) Change in net debt (997.8) (323.5) 15.0 Note: 1 H and FY16 figures are restated in accordance with IFRS 5 2 Includes cash restructuring costs, discontinued activities and acquisition costs 3 H amount includes SAG s finance leases and borrowing costs. H amount includes the effect of the change in consolidation method of SONAID

18 Solid balance sheet Net debt High liquidity SAG acqu. 490m Liquidity as at June 30 th, x 1 340m net cash 150m undrawn RCF 2.6x 3.2x SAG pro forma 2.8x 2.3x 1 3.3x Ex SAG Debt maturity profile 1,907 Gross debt at June 30 th, 2017 by maturity ( m): 1, , , Dec-15 Jun-16 Dec-16 Jun Net debt ( m) X Net debt/ LTM EBITDA ( m) Senior loan Bond RCF Securitization Note: 1 Excluding synergies

19 H Business Review Gauthier Louette, Chairman & CEO

20 Performance by segment - overview France Germany & Central Europe 40% of Group H revenue EBITA margin 5.8% in H % of Group H revenue EBITA margin 4.9% in H Revenue +3.9% (6.2% in H1 2016R) Revenue +70.4% (3.2% in H1 2016R) North-Western Europe Oil & Gas and Nuclear 24% of Group H revenue EBITA margin 2.4% in H % of Group H revenue EBITA margin 8.4% in H Revenue +9.2% (4.0% in H1 2016R) Revenue -12.5% (10.0% in H1 2016R)

21 France Revenue and EBITA ( m) 1,057 1, % 5.8% H1 2016R 1 H Revenue EBITA EBITA margin Revenue growth: +3.9% H highlights Addition of SAG s French activities Good momentum at recently created SPIE CityNetworks Slight increase in public sector activity High contract selectivity in Commercial sector Organic growth in line with expectations Margin lower in H1 2017, against a very strong H Environment in Commercial sector still challenging Rapidly expanding activity with telecom operators (FTTH), with lower initial margin. 2 bolt-on acquisitions, active pipeline H Revenue change +3.9% -1.1% 0.0% +5.0% Organic FX Acquisitions 2017 full-year outlook Revenue to stabilise organically over the full year Current market trends and tendering activity pointing to improvement in medium term Notes: 1 H figures are restated in accordance with IFRS 5 (refer to the notes to 2017 interim financial statements for further details)

22 Germany & Central Europe Revenue and EBITA ( m) % % H1 2016R 1 H Revenue EBITA EBITA margin H Revenue change H highlights Strong performance in Germany Very supportive market background Solid organic growth Continued momentum in bolt-on M&A Strong margin improvement at SPIE s historical operations Integration of SAG progressing well First synergies delivered to plan Divestment of Gas & Off-shore initiated (c.14% of SAG FY16 revenue) Switzerland aligned with the SPIE model SPIE SAG Field Service Management project +70.4% +3.8% +0.3% +66.3% Organic FX Acquisitions +52.4% +13.9% 2017 full-year outlook Continued good trends in Germany Switzerland on the way to profitable growth SAG Bolt-ons Notes: 1 H figures are restated in accordance with IFRS 5 (refer to the notes to 2017 interim financial statements for further details)

23 North-Western Europe Revenue and EBITA ( m) % 2.4% H1 2016R 1 H Revenue EBITA EBITA margin H Revenue change Underperformance in the UK Loss booked in electricity distribution operations, no further impact expected in H2 Increasingly competitive environment Very strong performance in the Netherlands Excellent organic growth Further progress in margin Sizeable acquisition in the Smart City market Good trends in Belgium H highlights Activity gaining momentum throughout the year Further progress in margin Initiated divesture of soft FM activities in Northern UK PFI school contracts, 37m revenue in FY % 2017 full-year outlook -0.4% -4.1% +13.7% Organic FX Acquisitions Trends in The Netherlands and Belgium to remain positive More challenging environment in the UK Notes: 1 H figures are restated in accordance with IFRS 5 (refer to the notes to 2017 interim financial statements for further details)

24 Oil & Gas and Nuclear Revenue and EBITA ( m) H highlights % % Oil & Gas still challenging Continued deterioration in customer activity SPIE actively managing further downsizing Margin affected, while still well-above Group average Now less than 5% of Group revenue H1 2016R 1 H Revenue EBITA EBITA margin Robust performance in Nuclear Stable revenue and solid margin Low value-added logistics activity discontinued ( 24m revenue in FY16) H Revenue change -12.5% 2017 full-year outlook No short-term improvement in Oil & Gas -11.5% -1.5% +0.5% Organic FX Acquisitions Continued good trends in Nuclear Revenue decline linked to Grand Carénage cyclicality expected to be less than initially forecast Notes: 1 H figures are restated in accordance with IFRS 5 (refer to the notes to 2017 interim financial statements for further details)

25 2017 Full-year Outlook Gauthier Louette, Chairman & CEO

26 2017 full-year outlook slightly revised Reflecting the initiated divesture of SAG s Gas & Off-shore activities, now accounted for as discontinued operation under IFRS 5 Compared with previous forecast: Bolt-on acquisitions: 270m to 300m FY revenue acquired Higher Group revenue: total growth ex FX: 23% to 25% (c.6% ex SAG) Higher Group EBITA margin: 6.3% to 6.5% Slightly lower Cash conversion: c.100% Unchanged Adjusted EPS: Dividend: Strong growth c.40% of adj. net income 0.16 interim dividend to be paid in September 2017 Unchanged Unchanged

27 - 27 -

28 Appendices

29 Revenue and EBITA by segment Group France Germany & CE North- Western Europe Oil & Gas and Nuclear Holding H H1-2016R 1 Change FY-2016R 2 Revenue 2, , % 5,083.1 EBITA % Margin 5.3% 6.0% 6.9% Revenue 1, , % 2,253.5 EBITA % Margin 5.8% 6.2% 7.0% Revenue % EBITA % 45.2 Margin 4.9% 3.2% 4.9% Revenue % 1,337.2 EBITA % 67.4 Margin 2.4% 4.0% 5.0% Revenue % EBITA % 61.8 Margin 8.4% 10.0% 10.9% EBITA % 19.9 Note: 1 Restated in accordance with IFRS 5 2 Restated in accordance with IFRS 5, based on the assumption that no further activity is discontinued in the 2nd half of

30 EBITA margin: unfavourable mix effect Change in segmental mix: Lower share of Group revenue contributed by higher-margin segments H1 2016R revenue H revenue North-western Europe Oil & Gas and Nuclear 26% 12% France France 44% North-western Europe Oil & Gas and Nuclear 24% 9% 40% 18% Germany & CE 27% Germany & CE Segments with margin above Group average Segments with margin below Group average Slight unfavourable impact on Group margin regardless of segmental performance

31 Consolidated income statement m H H1-2016R 1 Revenue from ordinary activities 2, ,426.3 Other income Operating expenses (2,655.1) (2,322.8) Recurring operating income Other operating expense (24.2) (1.1) Other operating income Operating income Net income / (loss) from companies accounted for under the equity method Operating income including equity-accounted companies Interests charges and losses from cash equivalents (23.7) (18.5) Gains from cash equivalents Cost of net financial debt (23.6) (18.4) Other financial expense (14.6) (26.1) Other financial incomes Other financial income and expenses (9.5) (20.2) Pre-tax income Income tax expense (32.3) (34.5) Net income from continuing operations Net income from discontinued operations (8.9) (2.9) Net income Net income attributable to owners of the parent Non-controlling interests Note: 1 Restated in accordance with IFRS 5 (refer to the notes to 2017 consolidated financial statements for further details)

32 Income statement bridges Revenue to Revenue from ordinary activities EBITA to Operating income m H H1-2016R 1 Revenue as per management accounts 2, ,392.4 Sonaid 2 (4.9) (8.9) Holdings activities Others 4 (10.5) 23.3 Revenue under IFRS 2, ,426.3 m H H1-2016R 1 EBITA Amortisation of allocated goodwill (7.8) (19.8) Discontinued activities and restructuring costs 5 (15.5) (2.2) Financial commissions (0.7) (0.8) Non-controlling interests 6 (0.6) (0.1) Others 7 (11.5) 2.6 Operating income (incl. equity-accounted companies) Notes: 1 Restated in accordance with IFRS 5 (refer to the notes to 2017 consolidated financial statements for further details). 2 SONAID is consolidated using the equity method in the Group s consolidated accounts whereas it is accounted proportionally (55%) in management accounts 3 Non-Group revenue of SPIE Operations and other non-operational entities 4 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 reinvoicing of expenses incurred on behalf of partners); restatements of revenues from entities consolidated under the equity method, or not yet consolidated or for which IFRS 5 restatement is pending. 5 Restructuring costs pertaining to the France segment and to Oil & Gas activities; Operating result contribution from activities for which IFRS 5 restatement has been decided but is pending at the end of the period. 6 Restatement of SPIE s Share of SONAID s EBITA (55%) in H Although SONAID is equity accounted in the Group s IFRS consolidated accounts, no contribution from SONAID is included in H Operating income, due to negative retained earnings. 7 In H1 2017, Others mainly include costs related to external growth projects ( (8.0) million), a restatement made pursuant to IFRIC 21 ( 2.1) million) and the recognition of a cost related to the free share plan allocation, in accordance with IFRS 2 ( 2.4) million). In H1 2016, others mainly included the capital gain subsequent to the change in consolidation method of SONAID pursuant to IFRS 11 ( 5.3 million), a restatement made pursuant to IFRIC 21 ( (2.1) million) and costs related to external growth projects

33 Consolidated balance sheet m Jun-2017 Dec-2016 Intangible assets Goodwill 3, ,207.3 Property, plant and equipment Investments in companies accounted for under the equity method Non-consolidated shares and long-term loans Other non-current financial assets Deferred tax assets Total non-current assets 4, ,386.0 Inventories Trade receivables 1, ,370.9 Current tax receivables Other current assets Other current financial assets Cash management financial assets Cash and cash equivalents Total current assets from continuing operations 2, ,222.0 Assets classified as held for sale Total current assets 2, ,237.3 Total assets 7, ,623.2 m Jun-2017 Dec-2016 Share capital Share premium 1, ,170.5 Consolidated reserves 92.6 (11.8) Net income attributable to owners of the parent Equity attributable to owners of the parent 1, ,415.1 Non-controlling interests Total equity 1, ,417.2 Interest-bearing loans and borrowings 1, ,126.9 Non-current provisions Accrued pension and other employee benefits Other long-term liabilities Deferred tax liabilities Total non-current liabilities 2, ,742.1 Trade payables Interest-bearing loans and borrowings (current portion) Current provisions Income tax payable Other current operating liabilities 1, ,211.1 Total current liabilities from continuing operations 3, ,447.0 Liabilities associated with assets classified as held for sale Total current liabilities 3, ,463.9 Total equity and liabilities 7, ,

34 Net debt m Jun-2017 Dec-2016 Loans and borrowings per balance sheet 2, ,459.2 Capitalised borrowing costs Others (5.8) (1.0) Gross financial debt (a) 2, ,469.9 Cash management financial assets per balance sheet Cash and cash equivalent per balance sheet Accrued interest Cash held in discontinued operations (2.7) (7.0) Gross cash (b) Consolidated net debt (a) (b) 1, Unconsolidated net cash (5.9) (1.7) Net debt 1,

35 Consolidated cash flow statement m H H Cash and cash equivalent at beginning of the period Net income Loss from companies accounted for under the equity method (0) (0.2) Depreciation, amortisation and provisions Proceeds on disposals of assets (0.8) 0.0 Income tax expenses Elimination of cost of net financial debt Other non cash items (7.9) 4.0 Internally generated funds from (used in) operations Income tax paid (26.8) (22.8) m H H Proceeds from loans and borrowings Repayments of loans and borrowings (527.2) (46.1) Net interest paid (17.1) (16.4) Dividends paid to owners of the parent (81.7) (77.0) Dividends paid to non-controlling interests - (0.2) Net cash flows from financing activities (37.3) Impact of changes in exchange rate (3.5) (7.0) Net change in cash and cash equivalent (178.2) (265.1) Cash and cash equivalent at end of the period Changes in operating working capital requirements (295.4) Dividends received from companies accounted for under the Equity Method Net cash flow from (used in) operating activities (203.6) (104.1) Effect of changes in the scope of consolidation (158.3) (102.0) Acquisition of property, plant & equipment and intangible assets (19.7) (15.5) Changes in loans and advances granted (16.3) (1.2) Proceeds from disposals of property, plant & equipment and intangible assets Net cash flow from (used in) investing activities (190.8) (116.7)

36 Cash flow statement bridge m H H Operating cash flow per management accounts (157.3) (78.3) Exclude: capex Include: taxes paid (38.2) (23.2) Cash impacts of items in the EBITA/ Operating income bridge (24.2) (15.9) Net cash flow from operating activities (203.6) (104.1)

37 Discontinued operations H H1 2016R m Discontinued in 2017 Country Revenue Contribution to net income Revenue Contribution to net income SAG Gas & Offshore activities Germany 48.2 (5.3) - - UK School PFI contracts UK 11.2 (4.5) SPIE IdFNO Residential business France 4.1 (3.0) 4.8 (0.5) Sono Technic France 0.5 (0.1) SPIE Infoservices Logistics business France (0.5) SPIE IFS AG Switzerland 1.2 (0.2) 3.2 (0.6) SPIE Maroc ONEE business Morocco (0.3) (0.3) 1.8 (2.6) Tecnospie SA Portugal (0.6) Foraid Algerie Algeria Others Total 66.2 (8.9) 35.3 (2.9) Refer to the notes to 2017 interim financial statements for further details

38 Next events: September 29 th, 2017: November 10 th, 2017: December 5 th, 2017: 2017 interim dividend payment Sept. 30 th, 2017 trading update SPIE 2017 Investor day in Germany IR contact: Thomas Guillois +33 (0) thomas.guillois@spie.com investors@spie.com ! Download the SPIE IR App Available for ipad, iphone and Android devices SPIE, sharing a vision for the future