Quarterly information at September 30th, 2020

Published on 05 November 2020

Good recovery momentum in Q3, outlook confirmed

Cergy, November 5th, 2020

Swift recovery in Q3, with revenue and EBITA margin close to last year’s levels

- Q3 revenue decrease limited to -1.8% on an organic basis (-3.1% on a reported basis)
- Good recovery momentum post lockdown in France, growth in Germany
- Q3 EBITA margin only 50 bps below that of Q3 2019

Demonstrating strong resilience through the Covid-19 crisis

- Revenue decrease over the first 9 months of 2020 limited to -5.5% (-6.4% organically)
- Year-to-date margin decrease narrowed to -130 bps, compared to -170 bps in H1 2020

Outlook confirmed

- H2 2020 Group revenue expected close to H2 2019 level on an organic basis;
- H2 2020 Group EBITA margin expected within 50 basis points from H2 2019 level of 7.0%;
- Continued robust cash generation, leading to a limited increase in year-end leverage[1], expected at maximum 3.0x in 2020. Significant decrease expected in 2021.

Recent stimulus plan announcements supportive of SPIE’s markets

- French and German plans supporting energy transition and connectivity
- SPIE well positioned with c.35% green share of revenue per the E.U. taxonomy[2] and a leading expertise in information & communication technologies.

[1] Excluding IFRS 16.

[2] Based on FY19 revenue and the European Union draft taxonomy for sustainable activities as of February 2020.

[3] 2019 figures have been restated to account for the contribution of SPIE UK’s schools facility management activity. Previously under a divesture process, it was presented as a discontinued operation in accordance with IFRS 5. As part of SPIE UK’s reorganisation, the divesture process has been stopped and this activity, with a realigned service portfolio, has been reintegrated into the continued perimeter

Gauthier Louette, Chairman & CEO, commented:

"In the third quarter, SPIE’s revenue and margin came back close to last year’s levels, showing a significant sequential improvement compared to the previous quarter, and confirming our strong resilience since the onset of the Covid-19 crisis. Business recovered rapidly in France, and we experienced good revenue growth in Germany. Cash collection remained very strong through the quarter.

Most European countries have recently stepped up Covid-19 restrictions, yet the services we provide are mission-critical and firmly driven by the energy transition and the digital transformation. The recently announced stimulus plans are supportive of our markets and will contribute to our future growth, thanks to our comprehensive service offering in energy efficiency, energy infrastructure, clean mobility and information and communication technologies."

Download the full press release of the 2020 Q3 results here.