Groupe Crit Sa · EURONEXT:CEN
Groupe Crit Sa — H1 2018 Earnings Presentation
30 slides from Groupe Crit Sa's earnings presentation, 2018
Slide 1: First Half Results 2018
FIRST HALF RESULTS 2018 Fo | e in” an a BT - aa S‘engager, grandir, partager, ensemble > crit www.groupe-crit.com
Slide 2: Group profile
Group profile GROWTH IN BOTH BUSINESS UNITS 2017 figures GROUP CRIT (FY 2017) 2017 REVENUE: €2.4bn (+12.7%) EBITDA: €149.6m (+20%) TEMPORARY STAFFING MULTI-SERVICES & RECRUITMENT €2bn revenue (+10.7%) €412m revenue (+23.4%) (83.8% of total revenue) (16.2% of total revenue) 18th largest global staffi
Slide 3: A period of growth in revenue and margins
1 A PERIOD OF GROWTH IN REVENUE AND MARGINS
Slide 4: A period of growth in revenue and margins
A PERIOD OF GROWTH IN REVENUE AND MARGINS > Revenue of €1,216.7m up 4.9% on a like-for-like perimeter basis and constant forex • Temporary staffing: first half revenue of over €1 billion (up 4.2% on a like-for-like perimeter basis and constant forex) • Airport services: organic growth of >10% > EBIT
Slide 5: Progress on key issues
PROGRESS ON KEY ISSUES TEMPORARY STAFFING & RECRUITMENT > Confirm growth trend > Strengthen international positions > Support business transformation AIRPORT SERVICES > Continue strong development in growth and profit margins H1 2018 results 5
Slide 6: Temporary staffing & recruitment
2.1 TEMPORARY STAFFING & RECRUITMENT
Slide 7: Temporary staffing: strong growth
Temporary staffing STRONG GROWTH & recruitment > First half revenue exceeds the €1bn mark Temp. staffing & recruitment revenue (€m) 83% of total revenue 4.2% organic growth +17.4% +12.6% +13.0% +2.7% +4.2% H1 2018 results 7
Slide 8: Growth trend confirmed in France
1. GROWTH TREND Temporary staffing CONFIRMED IN FRANCE & recruitment > Sustained organic growth Temp. staffing & recruitment revenue - France (€m) 76% of BU revenue 100% organic growth 6.4% growth after working day adjustment +15.1% +10.9% +5.5% H1 2018 results 8
Slide 9: Growth historically superior to market leaders
1. GROWTH TREND Temporary staffing CONFIRMED IN FRANCE & recruitment > Growth historically superior to market leaders Revenue Revenue Revenue Revenue growth growth growth growth CAGR France H1 2015 H1 2016 H1 2017 H1 2018 H1 2015-2018 CRIT ORGANIC +12.5% +15.1% +10.9% +5.5% 10.9% Adecco 0.0% +5.0% +
Slide 10: Growth driven by services and industry
1. GROWTH TREND Temporary staffing CONFIRMED IN FRANCE & recruitment > Growth driven by services and industry H1 2018 revenue growth by sector H1 2018 revenue growth by sector France France (%) H1 2018 vs H1 2017 Industry +5.1% Services 37% Building -1.9% Industry 49% Services +10.1% TOTAL +5.5% Bui
Slide 11: Outperforming the market excluding automotive
1. GROWTH TREND Temporary staffing CONFIRMED IN FRANCE & recruitment > Outperforming the market (excl. automotive) Main sector contribution to first half growth (FTE temp. employees – France) CRIT Market CRIT: 6.5% FTE growth excl. automotive Market*: +6.1% FTE growth excl. automotive Commerce/ Buil
Slide 12: International organic growth up 0.3%
2. STRENGTHEN OUR Temporary staffing INTERNATIONAL POSITIONS & recruitment > international organic growth up 0.3% Temp. staffing & recruitment revenue - International (€m) 24% of temporary staffing revenue Severe exchange rate impact (6.8%) Organic growth: +0.3% +5.4% +19.3% -5.7% +0.3% H1 2018 resu
Slide 13: Strong growth in Spain
2. STRENGTHEN OUR Temporary staffing INTERNATIONAL POSITIONS & recruitment > Strong growth in Spain First half revenue - Spain (€m) 100% organic growth Spain: solid growth Four consecutive years of booming growth Further improvement in EBITDA margin +17.5% +21.1% +7.5% in H1 2018 H1 2018 results 13
Slide 14: Slight decline in the USA
2. STRENGTHEN OUR Temporary staffing INTERNATIONAL POSITIONS & recruitment > Slight decline in the USA First half revenue - USA (US$m) USA: slight decline in revenue Organic growth -3.8% Recruitment challenges in a full employment market (shortage of labour in key sectors incl. IT) Sharp improvement
Slide 15: Support business transformation
3. SUPPORT BUSINESS TRANSFORMATION Developing our fields of operation... > Crit Inside offer +50% on-site operations since 1 January 2018 > CDII open-ended temporary employment contracts 1,200 CDII contracts signed at 31 August 2018 x2.3 vs 31 August 2017 > Permanent recruitment Revenue up 24% vs H1
Slide 16: Airport services: strong growth in France and overseas
4. AIRPORT SERVICES: Airport services STRONG GROWTH IN FRANCE AND OVERSEAS Airport services revenue growth Breakdown of airport services revenue (€m) (%) International +9.8% 164.1 France International 149.5 27.4% 45,0 (H1 2017: 28.6%) +5.3% 115.8 42,8 X2 21,1 x2 119,1 106,7 +12.7% +11.6% 94,7 France
Slide 17: Airport services: France and international
4. AIRPORT SERVICES: Airport services STRONG GROWTH IN FRANCE AND OVERSEAS FRANCE INTERNATIONAL > 11.6% organic growth > 6.4% organic growth (on a like-for-like perimeter basis and constant forex) > 7 new contracts signed since 1 January 2018… > 6 new long-term contracts since 1 … including 4 cargo
Slide 18: New expertise in business aviation and cargo flights
4. AIRPORT SERVICES: NEW EXPERTISE IN BUSINESS Airport services AVIATION AND CARGO FLIGHTS New expertise in business aviation Operation at Paris-Le Bourget airport > Acquisition of Advanced Air Support, a company specialising in business aviation at Paris-Le Bourget Runway services and ground operat
Slide 19: First half
2 FIRST HALF Strong performances in growth and profit margins
Slide 20: Activity: revenue growth
ACTIVITY Revenue growth (€m) Change Organic Forex Perimeter H1 2017 H1 2018 2018 vs 2017 change impact (1) effect (2) Temp. staffing & recruitment 987.6 1,013.8 2.7% 4.2% (1.7)% 0.2% Airport services 149.5 164.1 9.8% 10.1% (0.5)% 0.3% Other services 47.1 50.0 6.2% 6.2% - - Inter-segment eliminations
Slide 21: EBITDA by business unit
EBITDA (1) BY BUSINESS UNIT H1 2017 H1 2018 €m % of rev. €m % of rev. Temp. staffing & recruitment 47.5 4.8% 47.4 4.7% - France 37.3 5.1% 36.2 4.7% - International 10.2 4.0% 11.2 4.7% Multi-services 12.8 6.5% 17.2 8.0% - Airport services 10.8 7.2% 14.7 9.0% - Other 2.0 4.2% 2.5 4.9% GROUP TOTAL 60.3
Slide 22: Profit & loss
PROFIT & LOSS €m H1 2017 H1 2018 REVENUE 1,174.7 1,216.7 Operating expenses (1,111.1) (1,148.7) Provisions (3.3) (3.4) EBITDA 60.3 64.6 EBITDA/revenue 5.1% 5.3% Depreciation (11.2) (11.4) CURRENT OPERATING INCOME 49.1 53.2 COI/revenue 4.2% 4.4% Other income and expenses - (0.1) OPERATING INCOME 49.1
Slide 23: Balance sheet
BALANCE SHEET €m 30/06/2017 30/06/2018 31/12/2017 Fixed assets 521.6 544.3 518.0 Current assets 534.8 582.0 517.3 Treasury 76.3 82.3 137.6 ASSETS 1,132.7 1,208.6 1,172.9 Shareholder’s Equity 462.7 504.7 511.9 Provisions 39.5 45.8 43.5 Financial debt 145.9 166.8 146.8 Current liabilities 484.6 491.3
Slide 24: Net financial debt
NET FINANCIAL DEBT €m 30/06/2017 30/06/2018 31/12/2017 Borrowings, non-current portion 93.2 54.1 62.8 Borrowings, current portion 35.4 69.5 56.6 S/T Gross Financial debt 128.6 123.6 119.4 Cash and cash equivalents (76.3) (82.3) (137.6) Overdrafts 17.3 43.2 27.4 S/T Net cash (59.0) (39.1) (110.2) NET
Slide 25: Cash flow statement
CASH FLOW STATEMENT €m H1 2017 H1 2018 Net results including minority interests 31.8 40.2 Restatement of non cash items (10.6) (18.5) Cost of financial debt 1.1 1.2 Income tax 12.5 15.5 CASH FLOW BEFORE COST OF NET DEBT AND INCOME TAX 34.8 38.4 Change in working capital (17.4) (37.8) Taxes paid (16.
Slide 26: Outlook: second half 2018
3 OUTLOOK Second half 2018 Confidence reaffirmed
Slide 27: Temporary staffing outlook
Temporary staffing TEMPORARY STAFFING & recruitment > A less buoyant market environment… FRANCE Expected slowdown in growth during second half… > France GDP forecast revised downwards from 1.9% to 1.7% (source: Consensus Economics, August 2018) …although business levels will remain high > 815,000+ F
Slide 28: Temporary staffing priorities
Temporary staffing TEMPORARY STAFFING & recruitment > Our priorities FRANCE INTERNATIONAL OPERATIONS Increase the efficiency of sourcing and retention > Step up training initiatives > Deployment of MyCRIT platform Focus on US profit margins Expand our service offering for clients > Capitalise on spe
Slide 29: Airport services: excellent visibility
AIRPORT SERVICES: Airport services EXCELLENT VISIBILITY FRANCE INTERNATIONAL OPERATIONS A promising second half Continued growth during the second half > Good orientation in airlines traffic > Ramp up of new Air France Cargo contracts at Roissy CDG > Continuation of H1 growth curve > Paris-Le Bourge
Slide 30: Share characteristics
SHARE CHARACTERISTICS 2018 Share price movements (rolling 12-month) €96 Euronext Paris (compartment B FR0000036675) €92 €88 Shareholder structure €84 at 30/06/2018 €80 Treasury shares 7€6 1.3% €72 €68 Float 19/10 28/11 10/01 19/02 29/03 11/05 20/06 30/07 06/10 24.2% ISIN code FR0000036675 Market com