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Spie Sa — H1 2024 Earnings Presentation

48 slides from Spie Sa's earnings presentation, Jul 26, 2024

  1. Slide 1: 2024 Half-Year results

    2024 Half-Year results July 26th, 2024 SPIE, sharing a vision for the future

  2. Slide 2: Disclaimer

    Disclaimer Certain information included in this presentation 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 stra

  3. Slide 3: Electrification and decarbonation of Parc des Princes

    Electrification and decarbonation of iconic Parisian Parc des Princes for hosting sports events • Commissioned by the municipality of Paris, SPIE installed high voltage substations to ensure electrical supply for upcoming sports events at Parc des Princes, in collaboration with Elcimaï (engineering

  4. Slide 4: France: services on a siphon collector under the Marne river

    France: Providing services on a siphon collector under the Marne river to improve water quality • SPIE France completed the electrical, instrumentation, automation, and fire detection systems for the SIAAP (Syndicat Interdépartemental pour l'Assainissement de l'Agglomération Parisienne) across three

  5. Slide 5: Modernisation of tunnel systems in Austria

    SPIE contributes to the modernisation of tunnel systems in Austria • SPIE is upgrading, for the Austrian public company Asfinag, the electrotechnical equipment of five tunnel systems along Austria's A10 highway, covering a 14-kilometre stretch • SPIE is responsible for the overall modernisation, inc

  6. Slide 6: Contract extension with Lufthansa Technik AG in Hamburg

    Contract extension in Technical Facility Management with Lufthansa Technik AG in Hamburg • SPIE has received a four-year contract extension from Lufthansa Technik AG at their Hamburg base, where SPIE has been operating for 20 years • SPIE will continue to provide a wide range of technical services w

  7. Slide 7: SPIE Nucléaire consortium for EPR2 diesel backup generators

    SPIE Nucléaire is part of a consortium for the installation of the main diesel backup generators for six new EPR2 nuclear reactors for EDF • SPIE Nucléaire, along with Eiffage Énergie Systèmes and ABC, signed a contract with EDF to supply and install main backup diesel generators for six EPR2 nuclea

  8. Slide 8: H1 2024 Highlights

    H1 2024 Highlights

  9. Slide 9: H1 2024 Very strong financial performance

    H1 2024 Very strong financial performance High level Significant EBITA margin Intense bolt-on FY 2024 EBITA Sustainability: of organic growth increase +30 bps, acquisitions activity, margin guidance upgrade of SPIE’s at +5.8% at 5.6% of revenue, with a high focus in firmed-up: at least MSCI score to

  10. Slide 10: H1 2024 Financial highlights

    H1 2024 Financial highlights +14.4% +0.1x total revenue +8.3% growth +5.8% vs. H1 2023 from acquisitions organic growth Leverage Revenue ratio1 € 4,705m 2.4x EBITA M&A € 266m € 245m of annual revenue acquired2 +30 bps +20.7% vs. H1 2023 vs. H1 2023 2 acquisitions announced Notes: 1. Ratio of net deb

  11. Slide 11: High level of organic growth at +5.8% in H1

    High level of organic growth at +5.8% in H1 Dynamic contribution from external growth: +8.3% H1 2024 Group revenue growth excluding FX Total growth at +2.1% constant FX France +1.9% +4.0% Germany +6.0% +24.6% +30.6% North-Western Europe +8.3% +1.4% +9.7% Central Europe +3.2% +0.7% +3.9% Global Servi

  12. Slide 12: Significant increase of EBITA margin

    Significant increase of EBITA margin Improvements across the board +10 bps +50 bps +50 bps +60 bps +30 bps + 30 bps 266 In €m Excl. Holdings 99 220 94 75 56 1 5.6% 53 47 5.3% 22 6.0% 5.2% 5.9% 11 15 8.4% 5.9% 5.4% 1 4.7% 9 3.0% 8.1% 2.4% H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 202

  13. Slide 13: France

    France Solid organic growth and continuous EBITA margin increase 35% of H1 2024 revenue HIGHLIGHTS Revenue & EBITA Solid organic growth at +2.1% with a very challenging comparison basis 1,650 • Tech FM activities were very dynamic marked by a high rate of contract renewals, notably with 1,586 blue c

  14. Slide 14: Germany

    Germany Becoming this year the largest contributing country for SPIE, both in revenue and EBITA 31% of H1 2024 HIGHLIGHTS revenue Revenue & EBITA Very strong +6% organic growth in H1 2024 1,459 1,118 • High Voltage and City Networks and Grids activities: SPIE benefits from a unique 5.2% positioning

  15. Slide 15: North-Western Europe

    North-Western Europe Exceptional organic growth and significant EBITA margin increase 20% of H1 2024 revenue HIGHLIGHTS Revenue & EBITA The Netherlands: exceptional organic growth in H1 2024 954 • This performance was driven by High Voltage activities (overhead lines and substations) as 870 well as

  16. Slide 16: Central Europe

    Central Europe Very strong momentum driven by Austria and Poland 8% of H1 2024 revenue HIGHLIGHTS Revenue & EBITA • But for Switzerland, very strong momentum in Central Europe, mainly driven by: 380 3.0% • Austria, where our markets are very favourable bolstered by tunnels and 354 transportation inf

  17. Slide 17: Global Services Energy

    Global Services Energy Exceptional level of organic growth and good visibility 6% of H1 2024 revenue HIGHLIGHTS Revenue & EBITA Global Services Energy 262 • Global Services Energy experienced an exceptional level of organic growth in H1 2024 8.4% explained by : 187 8.1% 22 • the ramp-up of several p

  18. Slide 18: Intense bolt-on acquisitions activity

    Intense bolt-on acquisitions activity High focus in Germany 3 c. € 320m 1 Acquisitions in Germany full-year revenue acquisition in France announced in H1 & July 2024 acquired1 in Germany in July 2024 Nuclear Services City Networks and Grids Leading player in telecommunication infrastructure c. € 35m

  19. Slide 19: H1 2024 Financial Results

    H1 2024 Financial Results

  20. Slide 20: Income statement highlights

    Income statement highlights Very strong financial performance in H1 2024 24/23 In millions of euros H1 2024 H1 2023 Change Revenue 4,705 4,114 +14.4% Organic growth +5.8% +9.8% - Total growth +14.4% +9.6% - EBITA (incl. IFRS16) 266 220 +20.7% EBITA margin 5.6% 5.3% +30 bps Net income (Group share) 5

  21. Slide 21: Revenue bridge

    Revenue bridge €m +14.4% +8.3% +0.3% +5.8% 4,705 4,114 +14.1% ex FX 21

  22. Slide 22: Adjusted net income at €158 million, +29% yoy

    Adjusted net income at €158 million, +29% yoy Mainly driven by EBITA increase 24/23 In millions of euros H1 2024 H1 2023 Change EBITA 265.6 220.0 +20.7% Net Interest (38.8) (34.8) +11.5% Other financial charges1 (8.4) (11.6) -27.9% Adjusted income tax (61.5) (50.7) +21.3% Normative tax rate 28.2% 29

  23. Slide 23: Adjusted to reported net income

    Adjusted to reported net income Bridge 24/23 In millions of euros H1 2024 H1 2023 Change Reported net income (Group share) 56.8 73.2 -22.4% Amortisation of allocated goodwill1 57.9 36.2 +60.2% Integration & restructuring costs 0.3 0.3 - Acquisitions costs (IFRS 3) 6.4 0.9 - EBITA contribution from n

  24. Slide 24: ORNANEs IFRS accounting treatment

    ORNANEs IFRS accounting treatment H1 2024 impacts Group financial impacts Split accounting method (IFRS) Balance sheet – financial debt FINANCIAL DEBT As of January 2023 €400m As of 30/06/2024 (at issuance) (principal amount assumed Derivative instrument to be redeemed in cash) €89.3m €47.8m €400m €

  25. Slide 25: Sustained highly negative working capital

    Sustained highly negative working capital Excellent performance and permanent focus on cash management Negative working capital in days of revenue COVID-19 (45) (43) (8) (38) (37) (34) (32) (30) (37) excluding (22) (22) (22)1 2024 consolidated (21) acquisitions (16) (17) (7) (3) Jun-18 Dec-18 Jun-19

  26. Slide 26: Free cash flow

    Free cash flow €m H1 2024 H1 2023 EBITA incl. IFRS 16 265.6 220.0 IFRS 16 restatement (4.8) (4.2) Depreciation excl. IFRS 16 29.9 26.5 Net capex (34.8) (16.4) Change in Working Capital and Provisions (335.9) (429.8) Operating Cash Flow excl. IFRS 16 (79.9) (203.9) Taxes paid (78.8) (46.7) Net intere

  27. Slide 27: Limited increase of the Group's leverage ratio

    Limited increase of the Group’s leverage ratio Self-financing our intense M&A activity Group leverage ratio Ratio of net debt at end June and end December to pro forma EBITDA, excluding IFRS 16 4.3x 4.3x 3.9x 3.9x 3.6x 3.6x 3.0x 3.0x 3.0x 2.8x 2.7x 2.8x 2.4x 2,5 2.3x 2.3x 2.4x 1.8x 1.6x 1.2x Jun-18

  28. Slide 28: A sound financial structure

    A sound financial structure A well-diversified debt structure and no upcoming maturity before 2026 Debt profile & maturities (in m€) Very attractive financing as of 30/06/2024 conditions Liquidity H1 2024 €1,046m 600 1,0003 c. 3.4% €346 m net cash 600 Weighted cost of gross debt €700 m undrawn RCF R

  29. Slide 29: Sustainability

    Sustainability

  30. Slide 30: SPIE's strong ESG commitment

    SPIE’s strong ESG commitment Rewarded by external ratings Upgraded in June 2024 Top 5% SPIE rated B SPIE rated A of the companies rated in its sector A- in 2022 BBB in 2023 Top 7% in 2022 ESG Rating Universe: MSCI ACWI Index constituents, distribution Commercial Services & Supplies, n=19 Score 72/10

  31. Slide 31: Focus on our Scopes 1 & 2 and Scope 3

    Focus on our Scopes 1 & 2 and Scope 3 Illustrative actions implemented Scopes 1 & 2 Scope 3 SPIE’s direct carbon footprint Emissions related to SPIE’s suppliers SPIE’s direct emissions come from: c. 90% c. 10% Vehicle fleet Real estate % of emissions related to our procurement made with Share of bat

  32. Slide 32: Outlook

    Outlook

  33. Slide 33: 2024 outlook firmed-up

    2024 outlook firmed-up EBITA margin reaching at least 7% of revenue In 2024 SPIE expects: Further organic growth, EBITA margin: at a slower pace than in 2023 at least 7% of revenue (unchanged) (a minimum of +30 bps increase compared to 2023) Continuation of a dynamic bolt-on M&A Proposed dividend at

  34. Slide 34: Notes

    Notes 34 SPIE

  35. Slide 35: Appendices

    Appendices «

  36. Slide 36: Shareholding structure

    Shareholding structure 9.0% - 7.1% Employee funds - 1.9% Gauthier Louette & managers 5.5% 80.4% Public 5.1% Note: All information as of June 30th, 2024 36

  37. Slide 37: H1 2024 revenue growth by segment

    H1 2024 revenue growth by segment o/w organic o/w external o/w o/w foreign In millions of euros H1 2024 H1 2023 Change growth growth disposals exchange France 1,649.5 1,585.9 +4.0% +2.1% +1.9% - - 1 Germany 1,459.2 1,117.7 +30.6% +6.0% +24.6% - - North-Western Europe 954.0 869.8 +9.7% +8.3% +1.4% -

  38. Slide 38: New segment reporting (as from 2024)

    New segment reporting (as from 2024) Revenue and EBITA Revenue 2023 – new segment reporting Q1 2023 Q2 2023 H1 2023 Q3 2023 9m 2023 Q4 2023 FY 2023 France 789.7 796.3 1,585.9 772.6 2,358.6 920.7 3,279.3 Germany 1 528.3 589.4 1,117.7 631.0 1,748.6 691.7 2,440.3 North-Western Europe 427.2 442.6 869.8

  39. Slide 39: Financial definitions

    Financial definitions • Organic growth represents the production completed during the six months of year N by all the companies consolidated by the Group for the financial year ended December 31st of year N-1 (excluding any contribution from any companies acquired during year N) compared with the pr

  40. Slide 40: Consolidated income statement

    Consolidated income statement In millions of euros H1 2024 H1 2023 Revenue 4,656.1 4,129.5 Other income 51.3 54.7 Operating expenses (4,516.2) (4,006.4) Recurring operating income 191.2 177.8 Other operating expenses (11.9) (7.5) Other operating income 4.3 3.5 Total other operating income (expenses)

  41. Slide 41: Income statement bridges

    Income statement bridges Reconciliation between revenue (as per management accounts) and Reconciliation between EBITA and operating income revenue under IFRS In millions of euros H1 2024 H1 2023 EBITA 265.6 220.0 In millions of euros H1 2024 H1 2023 Amortisation of intangible assets (allocated goodw

  42. Slide 42: Consolidated statement of financial position

    Consolidated statement of financial position In millions of euros June 30th, 2024 Dec 31st, 2023 In millions of euros June 30th, 2024 Dec 31st, 2023 Non-current assets Equity Intangible assets 1,136.4 1,028.9 Share capital 78.4 78.2 Goodwill 3,751.1 3,504.7 Share premium 1,319.2 1,319.4 Right of use

  43. Slide 43: Consolidated cash flow statement

    Consolidated cash flow statement In millions of euros H1 2024 H1 2023 * Cash flows relating to the repayment of the principal on lease CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD 1,113.6 1,181.8 liabilities, in accordance with IFRS 16, amounted to €85,300 thousand Operating activities as at

  44. Slide 44: Cash flow statement – Management accounts

    Cash flow statement – Management accounts H1 2024 IFRS 16 H1 2024 H1 2023 In millions of euros excl. IFRS 16 impacts incl. IFRS 16 excl. IFRS 16 EBITA 260.9 4.8 265.6 215.9 Depreciation 29.9 86.5 116.4 26.5 Capex (34.8) - (34.8) (16.4) Change in Working Capital and Provisions (335.9) (0.1) (335.9) (

  45. Slide 45: Net debt and leverage

    Net debt and leverage In millions of euros June 30th, 2024 June 30th, 2023 Dec 31st, 2023 Loans and borrowings as per balance sheet 2,941.0 2,307.0 2,549.8 Deduct debt on operating and financial leases – continued activities (459.2) (375.6) (453.2) Capitalised borrowing costs 10.8 11.5 10.2 Amortisa

  46. Slide 46: Financing conditions (1/2) – cost of bank debt facilities

    Financing conditions (1/2) – cost of bank debt facilities Cost of bank debt facilities The table below presents the costs of the bank facilities put in place in October 2022 (for €600 million term loan and €600 million revolving credit facility). These costs are margins added to EURIBOR (or any othe

  47. Slide 47: Financing conditions (2/2) – ORNANE

    Financing conditions (2/2) – ORNANE Detailed characteristics of the ORNANE convertible bonds SPIE issued Sustainability-linked bonds settled in cash and/or convertible into new shares and/or exchangeable for existing shares (« ORNANE »), for an amount of €400 million and bear interest at an annual r

  48. Slide 48: Financial schedule and IR contact details

    IR contact details IR SPIE 2022 Investor Day SPIE 2021 Investor @SPIE IR application Focus on MT perspectives Day Focus on ESG Available for iPad, iPhone Replay available here Replay available here and Android devices Audrey Bourgeois Investor Relations Director +33 1 34 41 80 72 audrey.bourgeois@sp

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