Groupe Crit Sa · EURONEXT:CEN
Groupe Crit Sa — FY2019 Earnings Presentation
36 slides from Groupe Crit Sa's earnings presentation, March 2020
Slide 1: 2019 Annual Results
2019 ANNUAL RESULTS
Slide 2: Group profile
Group profile TWO BUSINESS DIVISIONS GROUP CRIT IN 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) 19th largest global staffing firm (1) Airport services N
Slide 3: Solid results
SOLID RESULTS • €2.5bn revenue • €170m EBITDA • 6.8% EBITDA margin • €73m net income • €622.3m equity • €221.6m net cash Revenues are presented after application of IFRS 16 unless indicated otherwise 2019 annual results 3
Slide 4: Temporary staffing & recruitment
Temporary staffing & recruitment Strong resilience in France International revenue of €500m
Slide 5: High level of activity
Temp. staffing & recruitment HIGH LEVEL OF ACTIVITY Annual revenue of over €2bn 81.8% of total revenue Temporary staffing & recruitment revenue Geographical breakdown (€m) 2 062 2 026 2 034 International 24.4% -1.4% France 75.6% 2017 2018 2019 Organic growth -2.2% and -1.9% working-day adjusted (WDA
Slide 6: Strong resilience in France
Temp. staffing & recruitment STRONG RESILIENCE IN FRANCE Temp. staffing & recruitment revenue – France (€m) 1 526 1 569 1 537 76% of Temp. Staffing -2.1% revenue Thriving business despite: • Market slowdown from second half • Decline in automotive industry demand (2.7% impact on YoY growth) 2017 201
Slide 7: Strong resilience in France
Temp. staffing & recruitment STRONG RESILIENCE IN FRANCE 2019 CAGR France revenue growth 2014-2019 Crit WDA organic growth -1.7% +6.8% Adecco (WDA) -3.0% +2.6% Manpower -1.2% +3.4% Randstad (WDA) -1.0% +3.2% Synergie (constant consolidation scope) +4.6% +6.4% Source: corporate – press release report
Slide 8: Strategy continued
Temp. staffing & recruitment STRATEGY CONTINUED 1 Network coverage & client proximity 6 2 Service offering Digitisation scale-up 5 3 Diversity in industries CSR commitments and customers 4 Greater job security for temporary staff 2019 annual results 8
Slide 9: Flexible network serving the most buoyant employment catchment areas
Temp. staffing & recruitment FLEXIBLE NETWORK SERVING THE MOST BUOYANT EMPLOYMENT CATCHMENT AREAS 1 Network coverage An extensive network of branches serving the & client proximity most buoyant employment catchment areas 419 Optimisation of France branches Change in number of branches network in Fra
Slide 10: Further progress in recruitment and expansion of CRIT INSIDE offering
Temp. staffing FURTHER PROGRESS IN RECRUITMENT & recruitment AND EXPANSION OF CRIT INSIDE OFFERING 2 Service offering Emphasis on specialised areas scale-up > Energy, aeronautics, events, etc. Development of the CRIT INSIDE offering > 19 new “inside” since the start of the year 2019 annual target re
Slide 11: Growth of 1% excluding automotive
Travail temporaire GROWTH OF 1% (1) & recrutement EXCLUDING AUTOMOTIVE 3 Diversity in industries SME/key account mix maintained and customers Sector breakdown and revenue growth 2019 Breakdown of revenue (France) by client segment 2019 (2) % of rev. Change 2019 2019/2018 SMEs Industry 45% -5.6% 44%
Slide 12: Our priorities: CDII contracts & training
Travail temporaire OUR PRIORITIES: & recrutement CDII CONTRACTS & TRAINING 4 Greater job security for temporary staff No. of CDII open-ended temp. employment contracts 2 460 x3.7 Ramp-up of CDII open-ended temporary employment contracts: > 2,460 CDII contracts signed by 31/12/2019 1 200 > Target of
Slide 13: Strong commitments
Travail temporaire & recrutement STRONG COMMITMENTS 5 2019 global CSR commitments ranking 71/230 2019 commitments recognised… > Gaia Index 2019 > Echos Executives 2019 Best Recruitment Agency ranking > Rated “Excellent” in Décideurs magazine 2019 HR - Consultancy Firm ranking > Rated Leader in Diver
Slide 14: Strong commitments
Travail temporaire & recrutement STRONG COMMITMENTS February 2019: Crit joins the Corporate Association for a More Inclusive Economy (1) 3 priorities Our initiatives in 2019 > Inclusion through training and apprenticeship: > June 2019: 61,000 young people on work-study programmes at companies Crit,
Slide 15: Ecosystem established
Temp. staffing & recruitment ECOSYSTEM ESTABLISHED 6 Digitisation Learning management system Branches Digitisation of customer relations Paperless environment Productivity Sourcing and loyalty Main Group website Commercial visibility SME platform Employer brand Temp. employees Candidates Businesses
Slide 16: International revenue of €500m
Temp. staffing INTERNATIONAL & recruitment REVENUE OF €500M Temp. staffing & recruitment Geographical breakdown revenue – International (€m) ROW 10% 500 493 497 Spain 27% USA 63% +0.9% 24.4% of temp. staffing revenue Down 2.5% at constant exchange rates 40bp improvement in EBITDA margin (1) 2017 201
Slide 17: United States: continuation of a value-based strategy
Temp. staffing UNITED STATES: CONTINUATION & recruitment OF A VALUE-BASED STRATEGY Annual revenue - United States (US$m) > Historically tight job market > Positive price impact from services upgrade 372 > Sharp improvement in EBITDA margin: 366 352 up 60bp (2) 314 -3.7% 2016 2017 2018 2019 -2.7% (1)
Slide 18: Spain: solid business in a more challenging environment
Temp. staffing SPAIN: SOLID BUSINESS IN A & recruitment MORE CHALLENGING ENVIRONMENT Annual revenue - Spain (€m) Solid business > Challenging basis for comparison: 4 years of strong growth (14% CAGR 2014-2018) 132 131 123 > Slowdown in economic growth: GDP growth of 2.0% (1) in 2019 vs 2.4% forecast
Slide 19: Airport services
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Slide 20: Airport services: strong growth driven by France
Airport services AIRPORT SERVICES: STRONG GROWTH DRIVEN BY FRANCE Airport services revenue Breakdown of airport services revenue (€m) (%) International France +7.1% (1) 381.1 356 94,5 315 +1.6% International 25% 93 88 (2018: 26%) France 75% 286,6 +9.0% (2018: 74%) 263 226 2017 2018 2019 (1) At const
Slide 21: Leadership consolidated in France, international growth
Airport services LEADERSHIP CONSOLIDATED IN FRANCE, INTERNATIONAL GROWTH FRANCE > Revenue up 7% to over €381m (up 5.6% at constant consolidation scope) > 310,000 flights handled in 2019 > 11 contracts signed since 1 January 2019, including renewal of major long-term contract (subcontracting) with Ai
Slide 22: Results
Results Strong performances in growth and profit margins Impact of IFRS 16
Slide 23: IFRS 16: principles and impact
IFRS 16: PRINCIPLES AND IMPACT > Effective 1 January 2019, using 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 accounte
Slide 24: Revenue
REVENUE Revenue growth (€m) 2018 2019 2019 vs 2018 Organic Forex (1) Perimeter (2) Temp. staffing & 2,062.4 2,034.4 -1.4% -2.2% 0.8% 0.0% recruitment Airport services 355.9 381.1 7.1% 5.6% 0.3% 1.2% Other services 103.7 99.2 -4.4% 1.8% 0.0% -6.2% Inter-segment (23.8) (26.2) 10.0% 10.5% 0.0% -0.5% el
Slide 25: EBITDA by business unit
EBITDA (1) BY BUSINESS UNIT Comparable (2) IFRS 16 (2) 2018 2019 2019 Impact €m % of rev. €m % of rev. €m % of rev. €m % of rev. Temp. staffing & 106.5 5.2% 110.3 5.4% 119.4 5.9% 9.1 0.5% recruitment - France 81.3 5.2% 83.1 5.4% 88.7 5.8% 5.6 0.4% - International 25.2 5.1% 27.2 5.5% 30.7 6.2% 3.5 0.
Slide 26: Income statement
INCOME STATEMENT Comparable (1) IFRS 16 (1) €m 2018 2019 2019 Impact REVENUE 2,498.2 2,488.5 2,488.5 - Operating expenses (2,341.5) (2,329.4) (2,311.8) 17.6 Provisions (7.7) (6.6) (6.6) - EBITDA 149.0 152.5 170.1 17.6 EBITDA/REVENUE 6.0% 6.1% 6.8% 0.7% Depreciation (23.3) (24.7) (41.7) (17.0) CURREN
Slide 27: Balance sheet
EQUITY BALANCE SHEET ASSETS DEBTS IFRS 16 RIGHT OF USE FINANCIAL ASSET DEBTS Impact Comparable (1) IFRS 16 (1) Dec.-19 €m Dec.-18 Dec.-19 vs Dec.-18 Dec.-19 Impact Goodwill 158.3 159.5 1.2 159.5 - Net fixed assets 155.3 144.7 (10.6) 212.6 67.9 Working capital 58.1 56.1 (2.0) 56.1 - Provisions (44.9)
Slide 28: Working capital
WORKING CAPITAL Dec.-19 €m Dec.-18 Dec.-19 vs Dec.-18 Inventories and work in progress 2.1 2.3 0.2 Trade receivables 480.7 463.2 (17.5) Trade payables (45.7) (37.7) 8.0 Social security and tax liabilities (383.6) (360.4) 23.2 Other receivables and payables 4.7 (11.3) (16.0) WORKING CAPITAL 58.1 56.1
Slide 29: Net financial debt
NET FINANCIAL DEBT Comparable (1) IFRS 16 (1) 2019 €m Dec.-18 Dec.-19 vs 2018 Dec.-19 Impact Gross financial debt 104.1 72.2 (31.9) 140.4 68.3 Net cash (116.6) (224.9) (108.3) (224.9) - NET FINANCIAL DEBT (12.5) (152.7) (140.2) (84.5) 68.3 CICE (210.3) (137.1) 73.2 (137.1) - NET FINANCIAL DEBT AFTER
Slide 30: Cash flow statement
CASH FLOW STATEMENT Impact IAS 17 IFRS 16 IFRS 16 Depreciation Depreciation CASH FROM CASH FROM OPERATIONS OPERATIONS Debt repayment Debt repayment FINANCING FLOWS FINANCING FLOWS CHANGE IN CASH CHANGE IN CASH Comparable (1) IFRS 16 (1) €m 2018 2019 2019 Impact Consolidated net income including mino
Slide 31: Outlook 2020
Outlook 2020
Slide 32: Impact of COVID-19
IMPACT OF COVID-19 Exceptional and immediate impact on business Outlook unclear on end of crisis First Initial restriction outbreak First cases measures Lockdown Market in China in France in France begins downturn Dec.-19 Feb.-20 12 March- 17 March- End March- 20 20 20 France market (1) France marke
Slide 33: Swift and appropriate measures
SWIFT AND APPROPRATE MEASURES To protect our employees and temporary workers > All branches closed to the public > Teleworking introduced for all administrative and support functions > All temporary employees notified of prevention measures To ensure continuity of services for clients > Roll-out of
Slide 34: Strong capacity to weather the crisis
STRONG CAPACITY TO WEATHER THE CRISIS Temporary Highly resilient variable cost base model staffing & Swift adjustment of cost base recruitment Airport services Strong capacity for adaptation due to: • Significant proportion of fixed-term and temporary employment contracts (25% of workforce) • Signif
Slide 35: Dividend maintained: €1/share
DIVIDEND MAINTAINED: €1/SHARE > Proposal for upcoming Annual Shareholders' Meeting on 5 June 2019 > Dividend of €1/share > Payment of dividend on 26 June 2020 2019 annual results 35
Slide 36: Share characteristics
SHARE CHARACTERISTICS Share price movements (rolling 12-month) Shareholder structure at 29/02/2020 Treasury shares 1.4% Float 24.2% ISIN code FR0000036675 Market compartment Euronext B Number of shares 11,250,000 Family-held Average daily trading volume 3,295 74.4% since 1 January 2020 Share price a