2019 Full-Year results: strong delivery of the SPIE model

Solid revenue growth, industry-leading EBITA margin, sharp rebound in net income.
High free cash flow allowing targeted external growth, increased dividend and deleveraging.
Green share of 2019 revenue per E.U. taxonomy for sustainable activities: c.35%.

• Strong operational performance reflected in solid 2019 results

   - +3.8% revenue growth; +3.6% at constant currency

   - Organic growth at +1.6%; external growth at +2.0%^[1]

   - EBITA up +3.9%, with EBITA margin maintained at industry-leading level (6.0%)

   - Sharp rebound in net income: +65.6%; adjusted net income up +6.0%

• Another year of strong delivery of SPIE’s cash generative model

   - High free cash flow, at €285.3 million, driven by a 101% cash conversion of EBITA, allowing:

        > Continued delivery on SPIE’s bolt-on M&A strategy, with €210 million of full-year revenue acquired

        > +5.2% increase in recommended dividend, at 0.61€ per share^[2]

        > Further reduction in leverage^[3] to 2.7x, €98.2 million reduction in net debt

• Active contribution to climate change mitigation

   - SPIE pioneer in applying the E.U. taxonomy for sustainable activities: c.35% of SPIE’s 2019 revenue is derived from activities substantially contributing to climate change mitigation

   - Investor Day focused on ESG: May 13th, 2020

• 2020 outlook

   - Continued solid revenue growth at constant currency

   - Bolt-on acquisitions: total full-year revenue to be acquired in 2020 in the order of €200 million

   - EBITA^[4] margin of at least 6.0%

   - Sustained strong free cash flow generation, leading to a leverage ratio below 2.5x4

   - No impact from covid-19 on SPIE’s activities at present date; 2020 guidance based on the assumption of no major deterioration of SPIE’s business conditions related to the epidemic

Gauthier Louette, Chairman & CEO, declared: ‘This year, SPIE celebrates its 120th anniversary, a testimony of the Group’s enduring capacity to create value and of its ability to thrive through more than a century of technical revolution within the energy, transport and communication sectors. Today, our services are at the very core of the energy transition and the digital transformation of our customers. SPIE is clearly part of the solution to tackle climate change, as evidenced by the high green share of our revenue. In 2019, we delivered solid results capitalising on our leading positions in France and Germany. This performance is illustrated by our outstanding free cash flow generation, which allows targeted external growth, an increased dividend and continued deleveraging, all in line with our proven model.’

Read the complete 2019 Full-Year results here.

^{[1] Net of a -0.2% impact from 2018 disposals
[2] Subject to shareholders’ approval at the next Annual General Meeting on May 29th, 2020
[3] Ratio of net debt at end December to pro forma EBITDA for the full year
[4] Excluding the impact of IFRS 16}