Eiffage Sa · EURONEXT:FGR

Eiffage Sa — H1 2023 Earnings Presentation

59 slides from Eiffage Sa's earnings presentation, Aug 30, 2023

  1. Slide 1: Half-year results 30th August 2023

    Half-year results 30th August 2023

  2. Slide 2: Highlights

    Highlights Benoît de Ruffray Chairman and Chief Executive Officer

  3. Slide 3: Highlights - Group

    Highlights - Group Business experiencing significant growth up to 10.4% Solid financial position at the service of growth         Significant improvement in earnings Contracting order book to €19.8 billion (+10% year-on-year)   3

  4. Slide 4: Highlights - Contracting

    Highlights Contracting Activity Order intake    Activity, operational  profitability and order  book to high levels    4

  5. Slide 5: Major contracts signed and pluriannual

    Major contracts signed and pluriannual Construction Civil Engineering Energy Systems    Group benefits from various major contracts, signed and  pluriannual but not accounted in order book   5

  6. Slide 6: Highlights - Contracting

    Highlights - Contracting SUSTAINABLE URBAN DEVELOPMENT NEW TRAMWAY LINE - ANGERS VILLENEUVE DEMAIN MAINTENANCE RENOVATION OF SITES IN USE TECHNICAL FACILITY M&E NOTRE-DAME DE PARIS LA HAGUE MAINTENANCE OF THE ELECTRIC BATTERY GIGAFACTORY - LEVERKUSEN BRIDGE - GERMANY FIRE SAFETY INSTALLATION CATHEDR

  7. Slide 7: Highlights - Concessions

    Highlights Concessions Activity Strengthening of the portfolio with close to €1.5 billion of investment  over 12 months Strenghtening of portfolio          7

  8. Slide 8: Highlights - Concessions

    CGOÉ NN SI E T RCUI C VTI LI O N Highlights - Concessions EQUITY ACCOUNTING OF EIFFAGE NOVÉ - MAN AGING OF HOUSING STOCK OF RECOVERY IN AIR TRAFFIC SUN’R INTEGRATION PARTICIPATION IN GETLINK THE FRENC H MINISTR Y OF ARMED FORCES SOLAR FARMS ON SPARE LAND ON STRENGTHENING OF EQUITY CARPOOLING PARKING

  9. Slide 9: Carbon climate issues

    Carbon climate issues Value chain integration Group’s low carbon approach  Assess the carbon impact of our purchases  2030: targets set based on a 1.5°C trajectory to curb greenhouse gas emissions  46% for Scopes 1 and 2 Value chain integration  30% for upstream and downstream Scope 3 Financial

  10. Slide 10: Eiffage - 1st semester 2023

    Eiffage - 1st semester 2023 Revenue €M +10.4% Operating profit €M +9.1% Net profit group share €M +10.7% 10,431 1,009 836 925 9,452 392 8,700 679 354 8,535 290 260 6,918 262 -8 H1 2019 H1 2020 H1 2021 H1 2022 H1 2023 H1 2019 H1 2020 H1 2021 H1 2022 H1 2023 H1 2019 H1 2020 H1 2021 H1 2022 H1 2023 Fre

  11. Slide 11: Outlook 2023

    Outlook 2023 Growth of Contracting and Concessions revenue Increase of operating profit and net profit group Outlook 2023 confirmed 11

  12. Slide 12: Results by business line and financial results

    Results by business line and financial results Christian Cassayre Chief Financial Officer

  13. Slide 13: Revenue (exc. Ifric 12)

    Revenue (exc. Ifric 12) Breakdown Concessions / Contracting (€M) Breakdown by geographical area (€M) 10,431 +10.4% 10,431 +10.4% +9.0% 290 -20.8% 9,452 9,452 366 1,756 +10.2% +9.7% 2,808 +22.4% +16.4% 1,593 2,295 8,675 +10.4% +8.8% 7,859 7,333 6,791 +8.0% H1 2022 H1 2023 ∆23/22 ∆23/22 H1 2022 H1 202

  14. Slide 14: Contracting revenue (exc. Ifric 12)

    Contracting revenue (exc. Ifric 12) Breakdown by division (€M) Breakdown by geographical area (€M) and % of total 8,675 +10.4% +8.8% +10.4% 8,675 7,859 257 (3%) (23.1)% 7,859 +10.7% 334 (4%) 2,833 +15.4% (5 %) +16.6% 2,808 (32%) +22.4% 2,454 2,295 (29%) +9.2% 3,641 +9.2% 3,334 5,230 (67%) 5,610 (65%

  15. Slide 15: Operating profit on ordinary activities and margins

    Operating profit on ordinary activities and margins H1 2022 H1 2023 Var. M€ % CA M€ % CA Construction 71 3.4% 75 3.4% 4 Infrastructure (33) (1.0)% (20) (0.5)% 13 Energy Systems 97 4.0% 123 4.3% 26 Sub-total Contracting 135 1.7% 178 2.1% 43 Concessions 791 49.6% 847 48.2% 56 Holding (1) (16)* (15) Gr

  16. Slide 16: Construction - Activity and results

    Construction - Activity and results Stability of pperating margin on ordinary activities at 3.4% of revenue Revenue increased by 6.3% Property development (+6.1% lfl)  Revenue (€m) and operating margin on ordinary activities 2,201 2,018 2,071  1,970 1,473 3.4% 3.4% 3.4% 3.4% Urban development  -2

  17. Slide 17: Athletes' Village - Saint-Ouen-sur-Seine

    CONSTRUCTION Athletes’ Village - Saint-Ouen-sur-Seine 17

  18. Slide 18: Infrastructure - Activity and results

    Infrastructure - Activity and results Improvement of operating margin on ordinary activities at -0.5% of revenue Revenue increased by 9.2% Low-carbon projects Revenue (€m) and operating margin on ordinary (+9.2% lfl) activities  3,641  3,334 3,167 Delivery 2,998   2,548 -0.5% Order intake -1.0%

  19. Slide 19: Saint-Denis Pleyel metro station

    C COI VNI SL T E RNUG C ITNI O EENR I N G Saint-Denis Pleyel metro station 19

  20. Slide 20: Energy Systems - Activity and results

    Energy Systems - Activity and results Improvement of operating margin on ordinary activities at 4.3% of revenue Results Revenue increased by 15.4%  (+10.7% lfl) Revenue (€m) and operating margin on ordinary activities External growth 2,833  2,454 2,250 2,102 4.3% Delivery 1,764 4.0% 4.0%  3.6% 

  21. Slide 21: Athletes' Village geothermal power plant

    C EONN ESRT G RY U SC YT SI O TENMS Athletes’ Village geothermal power plant - Saint-Denis/Saint-Ouen 21

  22. Slide 22: APRR - Activity and results

    APRR - Activity and results EBITDA margin up to 76.8% of revenue Revenue (excl. Ifric 12) Low-carbon projects increased by 7.8%  Revenue (€m) and EBITDA margin APRR and AREA traffic up 3.0% 1,454 1,348 1,251   1,113 934 76.8%  76.4% 76.5%  75.3% Price increase introduced on 1 February 2023 73.1

  23. Slide 23: Millau Viaduct - Relay of the flame

    CONCESSIONS Millau Viaduct - Relay of the flame 23

  24. Slide 24: Concessions - Activity and results

    Concessions - Activity and results Revenue (€m) and operating margin on ordinary Operating margin at 48.2% of revenue activities 1,756 1,593 Revenue up 10.2% versus H1 2022 (+9.7% lfl) 1,417 51.6% 1,313 Revenue 23/22 chg. 23/22 chg. in traffic 49.6% Name (end of concession | % holding) €m 48.2% % To

  25. Slide 25: Basketball and Handball events - Pierre Mauroy Stadium

    CONCESSIONS Basketball and Handball events - Pierre Mauroy Stadium 25

  26. Slide 26: Consolidated income statement

    Consolidated income statement in millions of euros H1 2022 H1 2023 Δ 23/22 Sales(1) 9,452 10,431 +10.4% Operating profit on ordinary activities 925 1,009 +9.1% (% of sales) (9.8%) (9.7%) Other income (expenses) from operations (20) (28) Operating profit 905 981 +8.4% Net finance costs (125) (158) Ot

  27. Slide 27: Financial net debt evolution

    Financial net debt* evolution in millions of euros Δ WCR Concessions Variations Dividendes inc. Holding & Contracting €M 466 Interest & Holding & Debt repayment Acquisitions without flows & Capital EBITDA Concessions €M 18 Taxes paid Contracting Concessions and disposals and disposals of funds trans

  28. Slide 28: Financial net debt structure

    Financial net debt* structure in millions of euros Total (9,888) (9,332) (10,166) (10,233) (9,988) (10,649) FND* 977 1,018 775 Holding & Contracting 587 555 (193) (10,350) (10,753) (10,763) (10,456) (10,865) (10,788) FND* Concessions 31/12/20 31/12/21 31/12/22 30/06/21 30/06/22 30/06/23 *Exc. IFRS 1

  29. Slide 29: Contracting order book

    Contracting order book Contracting order book Order book breakdown by division (€bn) (€bn and number of months) and 12 months variations 19.8 +10% 18.0 4.8 -5% 19.8 18.5 5.1 18.0 16.6 16.3 9.1 +18% 7.8 13.0 12.4 13.4 13.1 13.4 5.2 5.9 +13% months months months months months 30/06/22 30/06/23 ∆23/22

  30. Slide 30: Appendices

    Appendices =) EIFFAGE

  31. Slide 31: Group shareholding structure

    Group shareholding structure Shareholding at 30/06/2022 Shareholding at 31/12/2022 Shareholding at 30/06/2023 (98M shares) (98M shares) (98M shares) 20.1% 19.3% 20.5% 2.6% 1.6% 3.4% 77.3% 77.3% 77.9% Employees Treasury shares Floating 31

  32. Slide 32: Revenue (excluding Ifric 12)

    Revenue (excluding Ifric 12) Revenue breakdown (€M) Revenue breakdown in Europe excluding France (€M) 757 7,333 6,791 600 606 504 471 466 383 351 2,808 2,295 249 145 165 150 144 112 366 290 France International exc. Europe Europe exc. France H1 2022 H1 2023 H1 2022 H1 2023 32

  33. Slide 33: Concessions financial net debt breakdown

    Concessions financial net debt breakdown Non recourse debt located in dedicated SPVs for €10.5 billion* Non recourse FND breakdown (€M) Non recourse FND structure (€M) Eiffarie APRR APRR and Eiffarie 1,037 6,865 Toulouse Airport A65 81 706 7,902 Motorways Autoroute de l'avenir motorway Millau Viaduc

  34. Slide 34: Liquidity and net financial debt

    Liquidity and net financial debt* Holding & Contracting’s liquidity Concessions’s liquidity APRR 1.6 + 2.0 = 3.6 1.1 + 2.0 = 3.1 billion of euros billion of euros billion of euros billion of euros billion of euros billion of euros of cash undrawn revolving of liquidity of cash undrawn of liquidity c

  35. Slide 35: Consolidated balance sheet - Assets

    Consolidated balance sheet - Assets in millions of euros 30/06/2022 31/12/2022 30/06/2023 Property, plant and equipment 1,758 1,928 2,047 Usage rights of rented assets 998 1,049 1,108 Investment property 55 81 78 Fixed assets held under concessions 11,593 11,481 11,204 Goodwill on acquisition 3,526

  36. Slide 36: Consolidated balance sheet - Equity and liabilities

    Consolidated balance sheet - Equity and liabilities in millions of euros 30/06/2022 31/12/2022 30/06/2023 Share capital 392 392 392 Consolidated reserves 4,863 4,744 5,328 Profit & losses directly accounted for in equity 138 144 63 Net profit for the period 354 896 392 Total capital and reserves, at

  37. Slide 37: Consolidated income statement

    Consolidated income statement in millions of euros 30/06/2022 31/12/2022 30/06/2023 Revenue(1) 9,787 20,867 10,656 Other income 7 17 7 Raw materials and consumables used (1,705) (3,540) (1,943) Staff costs (2,171) (4,317) (2,348) Other expenses (4,213) (9,037) (4,490) Taxes other than corporate tax

  38. Slide 38: Consolidated cash flow statement

    Consolidated cash flow statement in millions of euros 30/06/2022 31/12/2022 30/06/2023 in millions of euros 30/06/2022 31/12/2022 30/06/2023 Cash and equivalents at 1 January 4,724 4,724 4,621 Purchases of fixed assets (167) (494) (268) Purchase of intangible concession assets (332) (527) (111) Curr

  39. Slide 39: Financial expense

    Financial expense in millions of euros H1 2022 2022 H1 2023 Concessions (120) (255) (156) Of which: APRR (50) (99) (54) Eiffarie & Financière Eiffarie (4) (9) (18) Groupe Financière Eiffarie (54) (108) (72) A65 - A’liénor (12) (25) (13) Millau Viaduct (18) (48) (29) Autoroute de l’Avenir motorway (2

  40. Slide 40: Contracts won by Eiffage

    Contracts won by Eiffage as at 30/06/23 as part of the Grand Paris Express 40

  41. Slide 41: Evolution of the operating profit and operating margin

    Evolution of the operating profit (€M) and operating margin Contracting Concessions 847 178 791 731 128 135 115 2.1% 49.6% 51.6% 48.2% 1.7% 1.6% 1.7% 554 410 H1 2019 H1 2020 H1 2021 H1 2022 H1 2023 42.2% 36.2% (2.5)% H1 2019 H1 2020 H1 2021 H1 2022 H1 2023 -146 41

  42. Slide 42: APRR & AREA - Tariff formulae 2023 - 2036

    APRR & AREA - Tariff formulae 2023 - 2036 Annual tariff increase absent of new management contract 2023 2024 - 2026 2027 - 2036 70% x I* 70% x I* Tariff increase 1st of February 2023 + APRR 4.74% 0.315% AREA 4.77% 0.330% *I = Inflation 42

  43. Slide 43: APRR & Eiffarie - Financial net debt structure

    APRR & Eiffarie - Financial net debt structure* in millions of euros 8,038 8,157 8,211 7,973 7,902 7,715 1,022 1,061 1,048 1,060 1,037 1,056 7,016 7,096 6,913 7,163 6,865 6,659 31/12/2020 31/12/2021 31/12/2022 30/06/2021 30/06/2022 30/06/2023 *Excluding IFRS 16 debt, mtm of the CNA debt and the swap

  44. Slide 44: APRR - Gross debt profile

    APRR - Gross debt profile in millions of euros Profile as at 30/06/2023 700 500 500 500 116 700 700 700 500 500 500 500 500 500 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 EMTN Programme 44

  45. Slide 45: APRR - Changes to traffic

    APRR - Changes to traffic 125 124.2 120 122.1 115 LV 112.1 110 105 Total 100 100 95 90 HGV 85 80 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 20

  46. Slide 46: Getlink - Activity and results

    Getlink - Activity and results Revenue €M Revenue increased by 64% compared to H1 2022 934 Key figures  523 571  370 330 Background   H1 2019 H1 2020 H1 2021 H1 2022 H1 2023  Eurotunnel Europorte ElecLink  Net profit €M 159 41 50 H1 2020 H1 2021 *Comparisons with the income statement for the f

  47. Slide 47: Assets under concession globally consolidated

    Assets under concession globally consolidated Project Type Country End of concession Status % Shares APRR & AREA Concession FR 2035/2036 Operational 52.00% A65 – A'liénor Concession FR 2067 Operational 100.00% A79 – Aliaé Concession FR 2068 Operational 52.00% Millau Viaduct Concession FR 2079 Operat

  48. Slide 48: Assets under concession equity accounted and financial participations

    Assets under concession equity accounted and financial participations Project Type Country End of concession Status % Shares Getlink Concession FR / UK 2086 Operational 18.79 % A41 – Adelac Concession FR 2060 Operational 52.00% Bordeaux Aqua center Concession FR 2041 Operational 49.00% Prado South T

  49. Slide 49: Assets in concession consolidated

    Assets in concession consolidated Carrying value of assets held under concession (€M)* 30/06/2022 31/12/2022 30/06/2023 APRR & AREA 9,033 8,906 8,661 Getlink S.E. / / 1,711 Toulouse Airport 1,086 1,069 1,046 Bretagne-Pays de la Loire HSRL 947 919 896 A65 - A’liénor 932 947 941 A79 – Aliaé 665 724 72

  50. Slide 50: PPP life cycle

    PPP life cycle Value Eiffage Financial investor Financial structuring PPP contracts signing Length in years 1 YEAR 3 TO 6 YEAR 1 TO 2 YEARS 15 TO 20 YEARS Tender Construction Operation Operation / Capex Ramp up Call for tender 5% - 10% Equity Sale of equity 90% - 95% Debt Preservation of O&M contrac

  51. Slide 51: Revenue of the 1st semester

    Revenue of the 1st semester 1st semester Variation in millions of euros 2022 2023 ∆23/22 Actual structure Lfl Construction 2,071 2,201 +6.3% +6.1% of which property development 501 421 Infrastructure 3,334 3,641 +9.2% +9.2% Energy Systems 2,454 2,833 +15.4% +10.7% Contracting 7,859 8,675 +10.4% +8.8

  52. Slide 52: Revenue of the 2nd quarter

    Revenue of the 2nd quarter 2nd quarter Variation in millions of euros 2022 2023 2023 / 2022 Construction 1,094 1,110 +1.5% of which property development 266 230 Infrastructure 1,897 2,020 +6.5% Energy Systems 1,263 1,434 +13.5% Contracting 4,254 4,564 +7.3% Concessions (exc. Ifric 12) 825 921 +11.6%

  53. Slide 53: Reconciliation tables of two alternative performance indicators

    Reconciliation tables of two alternative performance indicators Reconciliation between the aggregates Reconciliation between items reported of the cash flow statement and the free cash flow in the balance sheet and net financial debt in millions of euros H1 2022 H1 2023 in millions of euros H1 2022

  54. Slide 54: Major balances

    Major balances Contracting Concessions  Sustain and develop the Harness all the Group’s  Manage, optimise and extend Group’s European roots business lines right across the the maturity of our assets value chain  Strengthen our portfolio  Complete acquisitions in  Greenfield concessions speciali

  55. Slide 55: A Group catering to the major trends in Europe

    A Group catering to the major trends in Europe Energy sovereignty Industrial sovereignty All the Group’s business lines harnessed  Decarbonisation of energy right across the value chain  Relocation & extension of generation manufacturing facilities  Eiffage Énergie Systèmes  Optimisation of use

  56. Slide 56: Concessions: portfolio strengthened

    Concessions: portfolio strengthened 2015 2016 2018 2019 2020 2021 2022 2023 Concessions Aliaé (A79) won Reims Lille Nové Arena Airport Baie des (Cegelog) Anges marina Autoroute de SMTPC l’Avenir Lille Extension APRR motorway in Airport Senegal APRR Adelac (A41) 2% Increase in the 25% share capital A

  57. Slide 57: Glossary

    Glossary Item Definition Definition of concessions revenue under Ifric 12: the Construction revenue of Concessions corresponds to costs relating to services to build or improve the Construction revenue of Concessions infrastructure committed by the concession operator determined in accordance with t

  58. Slide 58: Investor relations contact and Agenda

    Investor relations contact and Agenda Eiffage APRR Quarterly information and turnover for the 3rd quarter 2023 08.11.2023 19.10.2023 Xavier Ombrédanne Quarterly information and turnover for the 4th quarter 2023 28.02.2024 29.01.2024 xavier.ombredanne@eiffage.com 2023 annual results and analysts pres

  59. Slide 59: Disclaimer

    Disclaimer This presentation may contain forward-looking statements and information about the financial situation, operating results, activities and development strategy of Eiffage. These statements and this information are based on assumptions that may prove incorrect and that are subject to major

Eiffage — H1 2023 Earnings Presentation on 6ix