Groupe Crit Sa · EURONEXT:CEN
Groupe Crit Sa — FY2017 Earnings Presentation
32 slides from Groupe Crit Sa's earnings presentation, March 2018
Slide 1: Annual Results 2017
ANNUAL RESULTS 2017 Fo | e in” an a BT - aa S‘engager, grandir, partager, ensemble > crit www.groupe-crit.com
Slide 2: 2 Business Units
2 BUSINESS UNITS Profil GROUPE CRIT REVENUE 2017: 2.4 €b (+12.7%) EBITDA: 149.6 €m (+20%) TEMPORARY STAFFING MULTI-SERVICES & RECRUITMENT 2 €b revenue (+10.7%) 412 €m revenue (+23.4%) (83.8% of total revenue) (16.2% of total revenue) 18e world’s largest staffing firm (1) Airport services N.1 french
Slide 3: A Sustained Growth…
A SUSTAINED GROWTH… Profil Change in annual revenue (in M€) 2 418.2 2 145.3 1 939.9 growth 1 695.1 2017 vs 2016 1 512.4 1 490.1 1 558.6 1 310.8 France +9.8% +15.4% -1.5% +4.6% +8.8% +14.4% +10.6% +12.7% International +23.1% organic growth +12.6% -6.3% +1.5% +5.1% +11.1% +10.3% +8.5% Annual results 2
Slide 4: …Improved Earnings and Margins
…IMPROVED EARNINGS Profil AND MARGINS Change in annual EBITDA (in M€) 149.6 124.3 116,5 growth 97,1 2017 vs 2016 81,1 France 44,4 55,7 54,3 +19.1% +25.5% -2.5% +49.3% +19.7% +20.0% +6.6% +20.4% International +25.4% EBITDA in% 3.7% 3.6% 5.2% 5.7% 6.0% 5.8% 6.2% Annual results 2017 4
Slide 5: Continued International Development
CONTINUED INTERNATIONAL DEVELOPMENT Profil Share of international revenue (in €m and % of total revenue) 2010 2017 International 24% International 8% X 5.4 109 €m 588 €m France 92% France 76% Annual results 2017 5
Slide 6: 2017. Significant developments
1 2017. Significant developments
Slide 7: 2017 Group Key Issues
2017 GROUP KEY ISSUES Temporary staffing Airport services & recruitment 1 Confirm growth trend in France 4 Maintien French performance & integrate COBALT 2 Strengthen international positions 3 Accelerate the digitalization of the business > Significant progress on all these issues Annual results 201
Slide 8: 1. Confirm growth trend in France: exceeded the 2B € mark
Temp. staffing 1. CONFIRM GROWTH TREND IN FRANCE & recruitment > Exceeded the 2B € mark Change in revenue (in M€) International France International 2 026 +11.3% 1 830 +10.7% 25% 500 1 645 +15.6% +14.5% 437 1 423 +3.1% 424 +27.5% 332 France 1 526 75% 1 393 +9.6% 1 221 +14.1% 1 091 +12.0% Growth at c
Slide 9: Historical performance compared to market leaders
Temp. staffing 1. CONFIRM GROWTH TREND IN FRANCE & recruitment > Historical performance compared to market leaders Change in Change in Change in Change in revenue revenue revenue revenue CAGR France 2014 2015 2016 2017 2013-2017 Adecco -2.0% +2.0% +5.0% +8.0% 3.2% Manpower +1.2% +4.3% +4.0% +10.6% 5
Slide 10: Progress in all key sectors
Temp. staffing 1. CONFIRM GROWTH TREND IN FRANCE & recruitment > Progress in all key sectors Contribution to growth by main sectors (in full-time equivalent – France) CRIT Market CRIT : +9.9% FTE growth excl. automotive Market (1) : +7.7% FTE growth excl. automotive Commerce/ Building- Industries ex
Slide 11: A dynamic and balanced customer mix
Temp. staffing 1. CONFIRM GROWTH TREND IN FRANCE & recruitment > A dynamic and balanced customer mix Change in key accounts revenue (1) Breakdown by customer profil (in €m) (in %) 806.6 SMA 726.2 +11.1% 47% (2016 : 49%) Change in SMA revenue (in €m) 719.6 Key accounts 668.9 +7.9% 53% (1) (2016 : 51%
Slide 12: 2. Strengthen international positions: over 500 €m revenue
2. STRENGTHEN INTERNATIONAL Temp. staffing & recruitment POSITIONS > over 500 €m revenue Change in international revenue Breakdown by geography (in €m) (in %) 500.1 436.6 423.5 Spain 24.5% +3.1% +14.5% United-States 65.7% ROW (Marocco. Tunisia. Germany. Switzerland) 9.8% Growth at constant perimeter
Slide 13: 2. Strengthen international positions
2. STRENGTHEN INTERNATIONAL Temp. staffing & recruitment POSITIONS Change in revenue by country (in €m) Spain United-States 328.6 285.9 285.1 122.6 105.2 90.3 -0.3% +15.3% (1) +16.6% +16.5% (1) -0.5% at constant perimeter and exchange rate Annual results 2017 13
Slide 14: Rank 42 in US staffing
2. STRENGTHEN INTERNATIONAL Temp. staffing & recruitment POSITIONS Consolidation in a contrasted market CRIT IN THE US: > Stability in organic growth > Rank 42 in US staffing industry (85th in 2012) (1) • Lack of human resources in key sectors: IT… • Penalized organic growth despite dynamic labor ma
Slide 15: 3. Accelerate the digitalization of the business
3. ACCELERATE THE DIGITALIZATION Temp. staffing & recruitment OF THE BUSINESS From temp. staffing to HR solutions Objective: to become the reference actor of all HR solutions Temp. staffing HR Management CDI INTERIMAIRES RECRUITMENT Open-ended temporary employment contracts 37 177 on-site management
Slide 16: CSR commitment
3. ACCELERATE THE DIGITALIZATION Temp. staffing & recruitment OF THE BUSINESS > CSR commitment TRAINING: skills development Training budget up +17% vs 2016 = closed to 3% of the payroll > 17 700 employees trained (+14%vs 2016) > 30 600 trainings in 2017 (+19%vs 2016) > 800 000 training hours HEALTH
Slide 17: Digital strategy
3. ACCELERATE THE DIGITALIZATION Temp. staffing & recruitment OF THE BUSINESS > DIGITAL STRATEGY To retain our temp. employees > MyCRIT : a secure professional et personnal online space dedicated to temp. Employees Dematerialization: contract /e-signature, personnal record, attestations from the Fre
Slide 18: 4. Airport services: maintain French performance & integrate COBALT
4. AIRPORT SERVICES : MAINTIEN FRENCH PERFORMANCE Airport services & INTEGRATE COBALT Change in Airport services revenue Breakdown of Airport services revenue (in €m) (in %) International France 314.6 +28.5% International 88.2 231.7 244.8 28% (2016 : 17%) +113% 41.4 44.0 226.4 203.4 +11.3% 187.7 Fra
Slide 19: Airport services: France and International
4. AIRPORT SERVICES: MAINTIEN FRENCH PERFORMANCE Airport Aéroportuaire services & INTEGRATE COBALT FRANCE INTERNATIONAL > A growth purely organic up 11.3% > Successful Integration of COBALT GROUND SOLUTIONS > 13 contracts signed in 2017… N.3 in ground handling services at London Heathrow airport > …
Slide 20: Results
2 RESULTS Strong performance in growth and profitability
Slide 21: Activity
ACTIVITY Change in revenue (in €m) Change Organic Currency Perimeter 2016 2017 2017/2016 change effect (1) effect (2) Temp. staffing & recruitment 1 829.7 2 026.3 10.7% 8.3% (0.4)% 2.8% Airport services 244.9 314.6 28.5% 9.3% (0.2)% 19.4% Other services 89.7 98.1 9.4% 9.4% - Inter-segment eliminatio
Slide 22: EBITDA by division
EBITDA (1) BY DIVISION 2016 2017 €m % €m % Temp. staffing & recruitment 98.6 5.4% 115.4 5.7% - France 78.0 5.6% 93.5 6.1% - International 20.6 4.7% 21.9 4.4% Multi-services 25.7 7.7% 34.2 8.3% - Airport services 20.4 8.3% 29.2 9.3% - Other 5.2 5.8% 5.0 5.1% TOTAL GROUP 124.3 5.8% 149.6 6.2% (1) Curr
Slide 23: Profit & Loss
PROFIT & LOSS (€ million) 2016 2017 REVENUE 2 145.3 2 418.2 Operating expenses (2 013.8) (2 259.8) Provisions (7.2) (8.8) EBITDA 124.3 149.6 EBITDA/revenue 5.8% 6.2% Depreciation (19.2) (23.0) CURRENT OPERATING INCOME 105.1 126.6 COI/revenue 4.9% 5.2% Other expenses - 0.2 OPERATING INCOME 105.1 126.
Slide 24: Balance Sheet
BALANCE SHEET (€ million) 12/31/2016 12/31/2017 Fixed assets 487.6 518.0 Current assets 472.6 517.3 Treasury 107.1 137.6 ASSETS 1 067.3 1 172.9 Shareholder’s equity 435.6 511.9 Provisions 39.0 43.5 Financial debt 153.4 146.8 Current liabilities 439.3 470.7 LIABILITIES 1 067.3 1 172.9 Annual results
Slide 25: Net Financial Debt
NET FINANCIAL DEBT € million 12/31/2016 12/31/2017 Borrowings, non current portion 96.1 62.8 Borrowings, current portion 34.2 56.6 S/T GROSS FINANCIAL DEBT 130.3 119.4 Cash and cash equivalents (107.1) (137.6) Overdrafts 23.1 27.4 S/T NET CASH (84.0) (110.2) NET FINANCIAL DEBT 46.3 9.2 CICE (155.3)
Slide 26: Cash Flow Statement
CASH FLOW STATEMENT € million 12/31/2016 12/31/2017 Net results including minority interests 75.3 83.4 Restatement of non cash items (25.9) 1.1 Cost of financial debt 1.4 2.6 Income tax 34.3 31.7 CASH FLOW BEFORE COST OF NET DEBT AND INCOME TAX 85.1 118.8 Change in working capital (26.9) (17.1) Taxe
Slide 27: Outlook 2018
3 OUTLOOK 2018 Offensive in France and abroad
Slide 28: Temp. staffing & recruitment: under favorable market conditions
TEMP. STAFFING & RECRUITMENT: Temp. staffing & recruitment UNDER FAVORABLE MARKET CONDITIONS > Under favorable market conditions… FRANCE Good orientation of the activity > GDP estimated growth up 1.9% in 2018 (Banque de France March 2018) > New acceleration of the French manufacturing PMI (1) in Dec
Slide 29: Temp. staffing & recruitment: our priorities
Temp. staffing TEMP. STAFFING & RECRUITMENT & recruitment > … Our priorities IN FRANCE 1. To benefit from the dynamics in our markets… 2. To accompany the evolution of our regulatory environment 3. To accelerate the digitalization of our businesses ABROAD 1. Priority to organic growth 2. Looking for
Slide 30: Airport services: strong visibility
AIRPORT SERVICES : Airport services STRONG VISIBILITY FRANCE : a good beginning of year > Good orientation in airlines traffic > Cumulated revenue as at Feb. 2018 : +15.5% (100% organic) > 1st January, 2018 : two 5 years major contracts renewed at Orly and Roissy CDG airports INTERNATIONAL : the pur
Slide 31: Dividend: 4.40 €/share
DIVIDEND : 4.40 €/SHARE > Proposed at the next shareholder’s general meeting of June 08th, 2018 > Dividend of 4.40 €/share Annual results 2017 31
Slide 32: Share characteristics
SHARE CHARACTERISTICS 2017 Change in market price over 1 year Group CRIT enters the indice Euronext Family Business 88 Group CRIT enters the Gaïa Index 86 84 82 80 Distribution ofcapital 78 at 02/28/2018 76 74 Own shares 72 1.3% 70 09/05 16/06 26/07 04/09 12/10 21/11 03/01 12/02 22/03 Code ISIN FR00