Slide 1: H1 2019 Results
H1 2019 RESULTS ww.groupe-crit.cor
Slide 2: Group profile: two business divisions
Group profile TWO BUSINESS DIVISIONS CRIT GROUP 2018 REVENUE: €2.5bn (+3.7% organic growth) EBITDA: €149m (stable) TEMPORARY STAFFING & RECRUITMENT MULTI-SERVICES €2.1bn revenue (+2.4% organic growth) € 460m revenue (+11.4%) (82.6% of total revenue) (17.4% of total revenue) 18th largest global staff
Slide 3: 20 years of strong growth
Group profile 20 YEARS OF STRONG GROWTH Revenue growth EBITDA growth +14.1% CAGR +14.4% CAGR 2 498 149 1 451 51 180 10 H1 2019 results 3
Slide 4: H1 2019 Results: a high level of activity in a more demanding environment
1 H1 2019 RESULTS A high level of activity in a more demanding environment
Slide 5: A high level of activity in a more demanding environment
A HIGH LEVEL OF ACTIVITY IN A MORE DEMANDING ENVIRONMENT > Revenues: over €1.2bn over the period, growth of 1.3% > More than €78m in EBITDA > EBITDA margin of 6.3% > Net profit of €32.4 m > €576m of equity > €157m of net cash Revenues are presented after application of IFRS 16 unless indicated other
Slide 6: Temp. staffing & recruitment
Temp.staffing & recruitment TEMP. STAFFING & RECRUITMENT A high level of activity in a more demanding environment
Slide 7: A high level of activity: more than €1bn over the period
Temp. staffing & recruitment A HIGH LEVEL OF ACTIVITY More than €1bn over the period > 83% of total revenue Temp. staffing & recruitment revenue Geographical breakdown (€m) 1 013.8 1 011.4 International 987.6 24% +2.7% ≈ France 76% H1 2019 results 7
Slide 8: Strong resilience in France
Temp. staffing & recruitment STRONG RESILIENCE IN FRANCE > Business level remains high Temp. staffing & recruitment revenue - France (€m) 775 768 734 76% of the business unit's revenue -0.8% Strong resilience despite the market slowdown in Q2 Activity stable after working day adjustment H1 2019 resu
Slide 9: Growth of 1% excluding automotive
Temp. staffing GROWTH OF 1% & recruitment EXCLUDING AUTOMOTIVE > Growth in the construction and services sectors H1 2019 revenue growth by sector H1 2019 revenue (France) by client segment (1) SMEs Change % of rev. H1 2019 vs 46% H1 2019 H1 2018 Industry 47% -4.0% Excl. automotive -0.9% Building 15%
Slide 10: In line with main competitors' performance
Temp. staffing IN LINE WITH MAIN COMPETITORS’ & recruitment PERFORMANCE > Historical outperformance Revenue Revenue Revenue Revenue Revenue CAGR growth growth growth growth Growth H1 2015- France H1 2015 H1 2016 H1 2017 H1 2018 H1 2019 H1 2019 CRIT ORGANIC +12.5% +15.1% +10.9% +5.5% -0.8% +8.5% Adec
Slide 11: Developing our growth drivers
Temp. staffing DEVELOPING OUR & recruitment GROWTH DRIVERS Increase of CDIIs (open-ended temp. employment contracts): > 2,150 CDII contracts signed by the end of August 2019 Target of 2,000 CDII contracts exceeded Expansion of perm. fees (recruitment activities) > Half-year revenues: +16% 2019 annua
Slide 12: International growth: +1.6%
Temp. staffing & recruitment INTERNATIONAL GROWTH: +1.6% Temp. staffing & recruitment revenue - International (€m) 253.8 239.3 243.1 24% of Temp. staffing division revenue On a like-for-like perimeter and constant forex: -2.4% Improvement in EBITDA margin -5.7% +1.6% H1 2019 results 12
Slide 13: Spain: stability in a more challenging context
Temp. staffing SPAIN: STABILITY & recruitment IN A MORE CHALLENGING CONTEXT First half revenue - Spain (€m) 65.1 63.9 60.6 Activity stable after working day adjustment despite: > An unfavourable basis for comparison Growth 100% organic 4 years of strong growth (+14% CAGR 2014/2018) > A slowdown in e
Slide 14: United States: continuation of a value-based strategy
Temp. staffing UNITED-STATES: CONTINUATION & recruitment OF A VALUE-BASED STRATEGY First half revenue - United States (US$m) 184.6 180.0 176.9 > Positive price effects due to value growth in services > Sharp improvement in EBITDA margin Up 100 bps in H1 2019 (2) -2.5% -1.7% -3.8% (1) -1.7% (1) (1) O
Slide 15: Airport services
Vn @ — > = 7 1) Ld = s) a a <x GROUPE, censemble> CPC
Slide 16: Airport services: strong growth driven by France
Airport services AIRPORT SERVICES: STRONG GROWTH DRIVEN BY FRANCE Airport services revenue Geographical breakdown (€m) (%) International France +12.4%(1) 184.5 +9.8% 164.1 45.8 149.5 +1.8% International 45.0 +5.3% 24.8% 42.8 (H1 2018: 27.4%) France 75.2% 138.7 +16.4% (H1 2018: 72.6%) 119.1 +11.6% 10
Slide 17: Leadership consolidated in France, international growth
Airport services LEADERSHIP CONSOLIDATED IN FRANCE, INTERNATIONAL GROWTH FRANCE > Revenue up 12.8% fully organic closed to €139m > 8 contracts signed since 1 January 2019… including a major contract renewal (sub-contracting) with Air France at CDG 2 (>20,000 flights/year) New premium contract at Nic
Slide 18: Results
2 RESULTS Strong performances in growth and profit margins Impact of IFRS 16
Slide 19: IFRS 16: principles and impact
IFRS 16: PRINCIPLES AND IMPACT > Effective January 1st 2019, implemented with the simplified retrospective approach (i.e. without restatement of previous accounting periods) > Balance sheet impact Present value of future lease payments recorded under financial debt A right-of-use for the same amount
Slide 20: Activity: change in half-year revenues
ACTIVITY Change in half-year revenues (€m) Change H1 2019/ Organic Forex impact Perimeter H1 2018 H1 2019 H1 2018 change (1) impact (2) Temp. staffing & recruitment 1,013.8 1,011.4 (0.2)% (1.2)% 1.0% 0.0% Airport services 164.1 184.5 12.4% 9.5% 0.2% 2.7% Other services 50.0 49.0 (2.1)% 4.0% 0.0% (6.
Slide 21: EBITDA by business unit
EBITDA (1) BY BUSINESS UNIT Impact IAS 17 IFRS 16 IFRS 16 Operating expenses Operating expenses Leases EBITDA EBITDA Depreciation Depreciation OPERATING INCOME OPERATING INCOME Financial expenses Financial expenses Comparable (2) IFRS 16 (2) H1 2018 H1 2019 H1 2019 Impact €m % of rev. €m % of rev. €
Slide 22: Income statement
INCOME STATEMENT Comparable (1) IFRS 16 (1) €m H1 2018 H1 2019 H1 2019 Impact REVENUES 1,216.7 1,232.5 1,232.5 - Operating expenses (1,148.7) (1,159.5) (1,150.8) 8.7 Provisions (3.4) (3.6) (3.6) - EBITDA 64.6 69.4 78.1 8.7 EBITDA/Revenue 5.3% 5.6% 6.3% 0.7% Depreciation (11.4) (11.9) (20.3) (8.4) CU
Slide 23: Balance sheet
BALANCE SHEET EQUITY ASSETS DEBTS IFRS 16 RIGHT OF USE ASSET FINANCIAL DEBTS Impact Comparable (1) IFRS 16 (1) June-19 €m June-18 Dec.-18 June-19 vs Dec.-18 June-19 Impact Goodwill 157.9 158.3 158.7 0.4 158.7 - Competitiveness and Employment Tax Credit CICE 228.6 210.3 206.8 (3.5) 206.8 - Net fixed
Slide 24: Working capital
WORKING CAPITAL June 2019 €m June 2018 Dec. 2018 June 2019 vs Dec. 2018 Inventories and work in progress 2.7 2.1 2.1 0.0 Trade receivables 530.8 480.7 522.1 41.4 Trade payables (47.3) (45.7) (44.3) 1.5 Social security and tax liabilities (407.9) (383.6) (395.8) (12.2) Other receivables and payables
Slide 25: Net financial debt
NET FINANCIAL DEBT Comparable (1) IFRS 16 (1) June-19 €m June-18 Dec.-18 June-19 vs Dec.-18 June-19 Impact Gross Financial debt 123.6 104.1 96.7 (7.4) 170.1 73.4 Net cash (39.1) (116.6) (120.0) (3.4) (120.0) - NET FINANCIAL DEBT 84.5 (12.5) (23.2) (10.7) 50.2 73.4 Competitiveness and Employment Tax
Slide 26: Cash flow statement
CASH FLOW STATEMENT Impact IAS 17 IFRS 16 IFRS 16 Depreciation Depreciation CASH FROM OPERATIONS CASH FROM OPERATIONS Debt repayment Debt repayment FINANCING FLOWS FINANCING FLOWS CHANGE IN CASH CHANGE IN CASH Comparable (1) IFRS 16 (1) €m H1 2018 H1 2019 H1 2019 Impact Net results including minorit
Slide 27: Outlook 2019
ae) > _ i) OUTLOOK 2019
Slide 28: Temp. staffing & recruitment: continued high level of activity
Staffing TEMP. STAFFING & RECRUITMENT: & recruitment CONTINUED HIGH LEVEL OF ACTIVITY > Activity: confirmation of H1 trends Market slowdown… … but sustained high activity levels > Results: strengthened capacity to maintain solid profitability > Following acquisition opportunities in Europe H1 2019 r
Slide 29: Airport services: good visibility
Airport services AIRPORT SERVICES: GOOD VISIBILITY FRANCE INTERNATIONAL > Good orientation in airlines traffic > Activity expected to continue in line (+1.1% in July 2019 (1) at CDG and Orly) with H1 trends > Full benefit of the cargo contracts > Brexit: potential impact of around and commercial suc
Slide 30: Share characteristics
SHARE CHARACTERISTICS Share price movements (rolling 12-month) Shareholder structure at 30/06/2019 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 1,999 since 1 January 2019 Share price a