Groupe Crit Sa · EURONEXT:CEN
Groupe Crit Sa — H1 2020 Earnings Presentation
28 slides from Groupe Crit Sa's earnings presentation, 2020
Slide 1: H1 2020 Results
H1 2020 RESULTS
Slide 2: Group profile in 2019
GROUP PROFILE IN 2019 Groupe Crit 2 BUSINESS DIVISIONS CRIT GROUP 2019 REVENUE : €2.5bn EBITDA : €170m TEMPORARY STAFFING & RECRUITMENT MULTI-SERVICES €2.0bn revenue(-2.2% organic growth) €480m revenue (+4.5%) (81.8% of total revenue) (18.2% of total revenue) Top 20 worldwide (1) Airport services 60
Slide 3: H1 2020 highlights
H1 2020 Groupe Crit Major covid-19 impact Resilience of operating margins > Revenue : €814m down 33.9% > Positive Ebitda : €20m > Ebitda margin : 2,5% > Net profit : €(11)m > €611m equity > €274m net cash H1 2020 results 3
Slide 4: Covid-19: Direct impact on business
COVID 19 : Groupe Crit Direct impact on business Change in revenue Revenue breakdown (€m) by division Quarter Semester 1 232.5 Multi-services 15% -33.9% -13.2% 814.1 650.0 582.4 -52.6% 505.8 308.3 Temporary staffing & recruitment Q1 Q2 S1 85% 2019 2020 A downturn in demand starting in March H1 2020
Slide 5: Temporary staffing & recruitment
Temporary staffing & recruitment COVID -19 Major impact in France International more resistant
Slide 6: Temporary staffing & recruitment
TEMPORARY STAFFING & RECRUITMENT Temp. Staffing & recruitment Major Covid-19 impact in France International more resistant Temporary staffing & recruitment revenue Geographical breakdown (€m) Quarter Semester 2019 2020 1 011.4 -31.4% International 28% -13.6% 693.6 533.5 -47.4% 477.8 412.8 280.8
Slide 7: Temporary staffing in France
Temp. Staffing TEMPORARY STAFFING IN FRANCE & recruitment 72% Major Covid-19 impact in Q-2 of temporary staffing division Temporary staffing revenue - France (€m) Quarter Semester 768.2 -34.7% Second quarter : -15.7% 501.7 Low point in April 409.0 -51.4% Progressive recovery over the 359.2 302.8
Slide 8: Temporary staffing in France
Temp staffing TEMPORARY STAFFING IN FRANCE & recruitment Sector particulary affected by the crisis Gradual recovery over the months Market decreasing by -30.7% in FTEs, 1st half of 2020 (baromètre Prism’emploi) Low point between March 15 and March 30 : -70% CRIT : Temp. employees decreasing
Slide 9: Temporary staffing in France: impact on all sectors
Temp. Staffing TEMPORARY STAFFING IN FRANCE & recruitment Impacting all sectors Sector breakdown and change in revenue (France) Contributing sectors % of rev. Change Incl. Incl. Automotive H1 2020 2020/2019 change Q1 change Q2 Q2 decreasing by -80% 45% -38% -20% -55% The most impacted Industry S
Slide 10: CRIT: Early adjustment measures
Temp. Staffing & recruitment CRIT : EARLY ADJUSTMENT MEASURES To protect our employees and temporary workers During the lock-down > Setting up home working > Online trainings After the lock-down > Reopening branches to the public > Health and safety prevention campaigns among permanent and temporary
Slide 11: Temporary staffing in France: strong impact on all sectors
Temp. Staffing TEMPORARY STAFFING IN FRANCE & recruitment Strong impact on all sectors Crit : very strong resilience of Ebitda margin Change Revenue Ebitda margin Ebitda margin France Change H1 2020 H1 2020 vs. H1 2019 Crit organic -34.7% 4.3% -110 bps Excl. automotive -29.6% Adecco (organic ATD) -2
Slide 12: International: Temporary staffing
Temp. Staffing INTERNATIONAL : TEMPORARY STAFFING & recruitment More resistant Temporary staffing revenue - International Half year revenue breakdown (€m) by geographic area Quarter Semester ROW 11% 243.2 -21.1% 191.8 Spain -7.3% 29% 118.6 110.0 124.5 -34.3% United States 81.8 60% 28% of the tempora
Slide 13: International: Temporary staffing
INTERNATIONAL : TEMPORARY STAFFING Temp. Staffing & recruitment Limited decline in United States Significant resistance in Spain H1 revenue (€m) Spain United States 156.1 -25.7% (1) 116.0 -11.8% 63.9 56.4 H1 2019 H1 2020 H1 2019 H1 2020 (1) At constant exchange rate H1 2020 -27,5% Significant re
Slide 14: Multi-services
Multi-services Airport services heavily impacted
Slide 15: Airport services: heavily impacted market
AIRPORT SERVICES HEAVILY IMPACTED MARKET Airport services 74% of multi-services Airport services H1 revenue division (€m) (79% in H1 2019) 184.5 Paris Aéroport (CDG-Orly) : traffic (1) H1 2020 down -48.8% -55.9% 94.4 Q1 : -10.1% Q2 : -82.3% H1 2019 H1 2020 (1) Movements of planes H1 2020 results 15
Slide 16: Airport services: action plan vs. Covid-19
AIRPORT SERVICES Action plan implemented vs. Covid-19 Airport services H1 measures H2 measures > Implementation of partial activity France (according to specific framework per country) > Partial activity maintained as air transportation still eligible to government's > Workforce adaptation depending
Slide 17: Results
Results Resilience of the results Strengthening of the financial structure in an exceptional context
Slide 18: Activity
Groupe ACTIVITY Crit Change in half-year revenues (€m) change H1 2020/ Organic Forex Perimeter H1 2019 H1 2020 H1 2019 change impact (1) impact (2) Temp. Staffing & recruitment 1 011.4 693.6 (31.4)% (31.7)% 0.3% 0.0% Airport services 184.5 94.4 (48.8)% (48.9)% 0.0% 0.0% Other services 49.0 33.2 (32.
Slide 19: EBITDA by business unit
Groupe EBITDA (1) BY BUSINESS UNIT Crit H1 2019 H1 2020 €m % of rev. €m % of rev. Temp. Staffing 55.9 5.5% 27.2 3.9% France 41.5 5.4% 21.6 4.3% International 14.4 5.9% 5.6 2.9% Multi-services 22.2 9.5% (7.0) (5.5)% Airport services 18.1 9.8% (6.1) (6.5)% Other 4.1 8.4% (0.9) (2.7)% GROUP TOTAL 78.1
Slide 20: Income statement
Groupe INCOME STATEMENT Crit €m H1 2019 H1 2020 REVENUES 1 232.5 814.1 Operating expenses (1 150.8) (791.5) Provision (3.6) (2.4) EBITDA 78.1 20.2 EBITDA/REVENUE 6.3% 2.5% Depreciation (20,3) (21.7) CURRENT OPERATING INCOME 57.7 (1.5) COI/REVENUE 4.7% (0.2)% Other income and expenses 0.8 (0.3) OPERA
Slide 21: Balance sheet
Groupe BALANCE SHEET Crit June 2020 €m June 2019 Dec. 2019 June 2020 vs. dec. 2019 Goodwill 158.7 159.5 159.4 (0.1) Net fixed assets 222.5 212.6 198.7 (13.9) Working capital 82.9 56.1 (5.7) (61.8) Provisions (48.6) (43.2) (43.6) (0.4) Tax payable and deferred tax 3.5 15.7 27.9 12.2 CAPITAL EMPLOYED
Slide 22: Working capital
Groupe WORKING CAPITAL Crit June 2020 €m June 2019 Dec. 2019 June 2020 vs. dec. 2019 Inventories and work in progress 2.1 2.3 2.4 0.0 Trade receivables 522.1 463.2 307.1 (156.1) Trade payables (44.3) (37.7) (30.6) 7.1 Social security and tax liabilities (395.8) (360.4) (292.8) 67.6 Other receivables
Slide 23: Net financial debt
Groupe NET FINANCIAL DEBT Crit June 2020 €m June 2019 Dec. 2019 June 2020 vs. dec. 2019 Gross financial debt 170.1 140.4 140.4 0.0 Net cash (120.0) (224.9) (337.4) (112.5) NET FINANCIAL DEBT 50.2 (84.5) (197.0) (112.5) Competitiveness and Employment Tax Credit (206.8) (137.1) (76.9) 60.2 CICE NET FI
Slide 24: Cash flow statement
Groupe CASH FLOW STATEMENT Crit €m H1 2019 H1 2020 Net results including minority interests 32.4 (10.8) Restatement of non cash items 18.7 71.4 Cost of financial debt 2.1 1.5 Income tax 25.3 7.1 CASH FLOW BEFORE NET COST OF DEBT AND INCOME 78.5 69.2 TAX Change in working capital (24.7) 62.3 Tax paid
Slide 25: Outlook
Outlook Temporary staffing : a gradual recovery Airport services : full recovery will take time
Slide 26: Temporary staffing: towards a gradual recovery
Temp. Staffing TEMPORARY STAFFING & RECRUITMENT & recruitment Towards a gradual recovery Positive signs of economic recovery Uncertainty related to the Covid-19 evolution France International Recovery in line with the market United States : a gradual recovery > Temp. FTEs CRIT July / August : -2
Slide 27: Airport services: airlines traffic significantly impacted
AIRPORT SERVICES Airlines traffic significantly impacted Airport services Wordwide airlines traffic: Full recovery will take time Traffic Paris Aéroport in CDG and Orly (in movements of planes), source ADP > July : -77.1% > August : -53.1% > YTD traffic (8 months) -56.8% Airport services division (F
Slide 28: Share characteristics
Groupe SHARE CHARACTERISTICS Crit Share price movements (rolling 12-month) Shareholder structure at 30/06/2020 Treasury shares 1.4% Float 24.2% ISIN code FR0000036675 Market compartment Euronext B Family-held Number of shares 11,250,000 74.4% Average daily trading volume since 1 year 2,426 Share pri