Slide 1: 2019 Oddo BHF Forum
2019 Oddo BHF Forum January 2019 January 2019 | Oddo BHF Forum -1-
Slide 2: SPIE at a glance
SPIE at a glance The independent European leader in multi-technical Balanced European footprint services in the areas of energy and communication (2017 pro forma revenue) Oil & Gas and 46 650 €6.1bn Nuclear Employees 2017 revenue North-Western 8% France Europe 38% 22% Balanced activity portfolio (20
Slide 3: What we do
What we do January 2019 | Oddo BHF Forum -3-
Slide 4: SPIE: a long-term partner for mission-critical services
SPIE: a long-term partner for mission-critical services SPIE provides mission-critical services… …to a high-quality recurring customer base… ✓ Technical services key to our customers’ processes ✓ In-depth knowledge of increasingly complex customers’ assets …through a dense local footprint >800 sites
Slide 5: A comprehensive technical services offering with strong long-term drivers
SPIE: a comprehensive technical services offering with strong long-term drivers Technical Facility Mechanical & Electrical Information & Transmission & Management Services Communication Distribution Services Services 28% 32% 20% 20% Energy efficiency Strong Shift in energy mix long-term Upgrade of c
Slide 6: Technical Facility Management
Technical Facility Management Frankfurt, Germany - SPIE developed France - SPIE launched SMART FM predictive maintenance tools which 360°, its new unified digital platform for contributed to optimise costs for the Technical Facility Management Lufthansa Aviation Training Center January 2019 | Oddo B
Slide 7: Mechanical & Electrical Services
Mechanical & Electrical Services Frankfurt, Germany SPIE will provide all of the technical building equipment and interior installations in a 4,600 m2 data centre, for data centre operator Interxion. This is the eighth data centre on which Interxion and SPIE will have worked together. Courbevoie, Fr
Slide 8: Information & Communication Services
Information & Communication Services France – SPIE installed the new IT infrastructure of the Royal Champagne Hotel and Spa. A 10 Gb Lan/Wifi solution offering premium service to the hotel’s customers. Brussels, Belgium – Gial, the technology partner of the city of Brussels, has just signed a 4-year
Slide 9: Transmission and distribution services
Transmission and distribution services Germany - Innovative compactLine© HV overhead line: pilot project deployed in August 2018 The Netherlands - SPIE has successfully Germany – SPIE is replacing a 110 kV aerial line suspended a cable between two high-voltage pylons for Schleswig-Holstein Netz AG u
Slide 10: SPIE's business model
SPIE’s business model January 2019 | Oddo BHF Forum - 10 -
Slide 11: The SPIE model
The SPIE model Deleveraging Revenue Margins Cash 3.3x 3.1x end 2017 end 2018 Total growth = Operational 100% cash Bolt-on Dividend Discipline conversion of acquisitions EBITA c. 40% + of Adj. net income Selective organic growth Bolt-on > 7.0% 6.0% or more c. 100% acquisitions constant FX up vs. 2017
Slide 12: Bolt-on acquisitions and selective organic growth
Bolt-on acquisitions and selective organic growth SPIE’s revenue growth from bolt-on acquisitions and organic 1.9% 5.0% 2.9% 11.8% 6.4% 3.2% 7.1% 6.0% 5.4% 4.3% 3.2% 4.4% 3.4% 3.6% 2.1% 1.2% -3.3% 0.1% -0.3% 0.1% -3.6% -4.7% -1.3% -1.3% -2.2% -0.7% 1.1% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2
Slide 13: A virtuous cash cycle: long-term track record
A virtuous cash cycle: long-term track record Cash conversion Free Cash Flow Operating cash flow / EBITA (€m) 296 122% 110% 234 106% 100% 102% 105% 102% 183 179 178 117 92 2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017 Cost of bolt-on M&A (before WC optimization) Leverage (€m)
Slide 14: Revenue and EBITA resilience across cycles
Revenue and EBITA resilience across cycles SPIE’s long-term track record (€m) Group Revenue Group EBITA 7 000 500 Subprime crisis Oil & Gas crisis 6 000 400 5 000 4 000 300 3 000 200 2 000 100 1 000 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Revenue EBITA Diversified custom
Slide 15: Balance sheet
Balance sheet January 2019 | Oddo BHF Forum - 15 -
Slide 16: Reversal of H1 working capital outflow
Reversal of H1 working capital outflow Change in Group working capital and provisions (€m) 100% cash conversion target implies full reversal in H2 2018 296 303 -226 -312 -425 H1 H2 H1 H2 H1 H2 2016 2017 2018 Fully consistent with usual seasonality January 2019 | Oddo BHF Forum - 16 -
Slide 17: Consistent capital allocation
Consistent capital allocation Bolt-on M&A: limited cost 2018: back to gradual deleveraging (€m) (€m) €184m €263m €321m ✓ Partly self-financed Revenue Revenue Revenue 3.3x Acquired Acquired Acquired with optimization of targets’ WC 1 532 3.1x ✓ No meaningful 2.6x 112 2.3x 79 impact on leverage 999 51
Slide 18: Debt structure
Debt structure No significant maturity before 2023 Balances at end June 2018 (€m) 1 200 Intra-year Intra-year financing W financing 600 246 270 2018 2019 2020 2021 2022 2023 2024 Securitization RCF Term loan Bond Significant covenant headroom Limited interest cost 4.5x Covenant at end Dec. 2018 W 2.
Slide 19: Conclusion
Conclusion ✓ SPIE’s business model creates value, reflected in the Group’s long-term track record ✓ Strong long-term business drivers ✓ Proven resilience across economic cycles ✓ FY18 outlook confirmed ✓ Gradual deleveraging on track January 2019 | Oddo BHF Forum - 19 -
Slide 20: Appendix
Appendix January 2019 | Oddo BHF Forum - 20 -
Slide 21: Income statement highlights
Income statement highlights Strong revenue growth, EBITA margin up vs. pro forma In millions of euros Revenue 4,771.0 +11.0% +2.4% organic 9m 2018 EBITA 251.1 +2.1% EBITA margin 5.3% +10 bps vs.pro forma In millions of euros Revenue 1,662.0 +3.8% +0.5% organic Q3 2018 EBITA 101.5 +5.2% EBITA margin
Slide 22: 2018 outlook confirmed
2018 outlook confirmed ✓ Strong revenue growth in 2018: - c. €370m additional incremental revenue from 2017 acquisitions - Group organic growth to improve compared to 2017 - c. €200m full-year revenue to be acquired in 2018 through bolt-on acquisitions, subject to the signing in Q4 of 2 acquisitions
Slide 23: 9m 2018 revenue by segment
9m 2018 revenue by segment o/w o/w o/w 9m 2017 external o/w organic foreign In millions of euros 9m 2018 Restated1 Change growth disposals2 growth exchange France 1,785.0 1,697.3 +5.2% +4.2% - +0.9% - Germany & CE 1,557.2 1,288.4 +20.9% +16.9% - +4.5% -0.5% o/w Germany 1,301.9 1,058.9 +22.9% +19.0%
Slide 24: Q3 2018 revenue by segment
Q3 2018 revenue by segment o/w o/w o/w Q3 2017 external o/w organic foreign In millions of euros Q3 2018 Restated1 Change growth disposals2 growth exchange France 603.5 601.7 +0.3% +2.0% - -1.7% - Germany & CE 554.0 553.5 +0.1% +0.5% - -0.1% -0.3% o/w Germany 465.7 454.9 +2.4% +0.7% - +1.6% - North-
Slide 25: Income statement bridges
Income statement bridges Revenue to Revenue from ordinary activities EBITA to Operating income €m 9m 2018 9m 2017R1 €m 9m 2018 9m 2017R1 Revenue as per management accounts 4,771.0 4,298.7 EBITA 251.1 246.0 Sonaid 0.1 (6.5) Amortisation of allocated goodwill (43.3) (13.4) Holdings activities 14.1 16.
Slide 26: Shareholding structure
Shareholding structure CDPQ1 12.1% 73.4% FFP Public 5.5% 9.1% Employees2 Notes: 1 Caisse de Dépôt et Placement du Québec (CDPQ), on the basis of the information known at August 23rd, 2018 2 Of which 4.4% held by employees through employee shareholding plans, on the basis of the information known at
Slide 27: SPIE's Corporate and Social Responsibility
SPIE’s Corporate and Social Responsibility Social ✓ Provide a safe work place Economy ✓ Offer training ✓ Offer career progression ✓ Seek economic performance opportunities ▪ Strong business ethics ✓ Foster constructive industrial ▪ Mutual trust relations ▪ Long-term relationships with stakeholders.
Slide 28: SPIE committed to a sustainable development
SPIE committed to a sustainable development Employee Safety Apprenticeship Shareholding 6.6 4.1 % 34 % SPIE’s accident frequency rate: one of the lowest in our of our employees are on of our employees are industry work-study contracts shareholders SPIE signed up to the UN Environment Environment Glo
Slide 29: Bolt-on M&A: a driving force of SPIE's growth model
Bolt-on M&A: a driving force of SPIE’s growth model Consolidating highly Long-term track record: Average EBITA multiple1: 117 bolt-on acquisitions Self-financed growth fragmented markets since 2006 5.7x Bolt-on acquisitions accounted on average for 3.8% growth2 since 2006 Average: 7,1% Local 5.4% de
Slide 30: Bank debt refinancing: cost of new facilities
Bank debt refinancing: cost of new facilities The tables below present the costs of new bank facilities put in place in June 2018 (€1,200 million term loan and €600 million revolving credit facility) compared to that of facilities previously in place (€1,125 million term loan and €400 million revolv
Slide 31: Next events
Next events: March 12th, 2019: 2018 Full-year Results April 30th, 2019: Quarterly information at March 31st, 2019 July 26th, 2019: 2019 Half-year Results November 8th, 2019: Quarterly information at September 30th, 2019 IR contact: Thomas Guillois +33 (0)1 34 41 80 72 Download the SPIE IR App thomas