EIFFAGE (EPA:FGR) - Eiffage - Financial information at 31 March 2019

Transparency directive : regulatory news

14/05/2019 18:35

Vélizy-Villacoublay, 14 May 2019
18:35

Financial information at 31 March 2019

* Total sales reached EUR3.9bn at 31 March 2019 (+15.9%)
  - Activity was brisk at all Contracting divisions (+19.2%)
  - Concessions sales are up (+2.4%) with upbeat heavy goods vehicle traffic
  - Growth of activity in France (+12.0%) and outside France (+28.8%)
* Contracting order book of EUR15.2bn (+8% year-on-year), representing close to
  13 months of activity
* Confirmation of guidance for 2019

1 - SALES FOR THE FIRST QUARTER OF 2019

                                                           % change
                                                    Actual
                       1st quarter  1st quarter  consolidation  Like-for-like
in millions of euros      2018         2019          scope         (lfl*)

Construction               799          923         +15.5%         +7.8%
of which property          174          205
Infrastructure           1,017        1,318         +29.6%        +26.6%
Energy Systems             897          993         +10.7%         +5.1%
Sub-total Contracting    2,713        3,234         +19.2%        +13.8%
Concessions
(excluding IFRIC 12)**     666          682          +2.4%         +2.4%
Total
Group
(excluding IFRIC 12)**   3,379        3,916         +15.9%        +11.6%
Of which:
France                   2,602        2,915         +12.0%        +10.8%
International              777        1,001         +28.8%        +14.0%
Europe excluding France    614          815         +32.7%        +14.3%
Rest of the world          163          186         +14.1%        +12.9%
Construction revenue of
Concessions (IFRIC 12)**    42           70                  nm

2 - REVIEW OF ACTIVITY

Consolidated sales reported by Eiffage for the first quarter of 2019 reached
EUR3.9bn, up by 15.9% compared to the first quarter of 2018 (+11.6% lfl).

Readers are reminded that one quarter taken in isolation is not representative
of the year as a whole, given the seasonal profile of the Contracting
activities. In particular this year, the first quarter benefited from the
particularly mild weather conditions in France, whereas in 2018 the first
quarter was affected by poor weather conditions.

Sales contributed by the Contracting activities increased by 19.2% (+13.8% lfl)
to EUR3.2bn. Construction: EUR923m (+15.5% on a reported basis and +7.8% lfl)

- For Construction, sales increased by 8.0% to EUR685m in France and by 44.2%
  to EUR238m in Europe exlcuding France (+3.0% lfl, with a contribution of
  EUR69m in the first quarter of 2019 by Eiffage Suisse - formerly Priora -,
  which is consolidated since 1 April 2018).

- For Property Development, sales increased by 17.8% to EUR205m. The marketing
  of new housing units remained strong, with 1,591 reservations at the end of
  March 2019 compared to 1,000 at the end of March 2018, buoyed notably by a
  greater number of block sales in the beginning of this year.

Infrastructure: EUR1,318m (+29.6% on a reported basis and +26.6% lfl)

- In France, sales increased by 35.2% to EUR865m (+30.6% lfl), mainly because
  of the ramping up of work on the Grand Paris Express (GPE) project and a
  significant increase in activity for Road Construction in France (+22.2%).
  Note that there was a favourable base effect, as work on line 16 of the GPE
  started in April 2018.

- In Europe excluding France, sales increased by 15.9% to EUR321m

- Outside Europe, sales increased to EUR132m compared to EUR100m in the first
  quarter of 2018.

Energy Systems: EUR993m (+10.7% on a reported basis and +5.1% lfl)

- In France, sales increased by 3.4% to EUR696m (+2.8% lfl).

- In Europe outside France, sales increased by 48.8% to EUR256m (+22.7% lfl,
  the contribution by recent acquisitions, notably Kropman in the Netherlands,
  reaching EUR45m in the first quarter of 2019).

- Rest of the world, sales reached EUR41m, compared to EUR52m in the first
  quarter of 2018.

Sales contributed by Concessions, excluding construction revenue**, increased
by 2.4% to EUR682m (+2.4% lfl).

Traffic on the APRR network, as measured by the number of kilometres travelled,
increased by 0.1% in the first quarter of 2019. Light vehicle traffic decreased
by 0.4%, affected by an unfavourable calendar effect (Easter weekend) and
slight disruptions linked to the latest social movements. Heavy goods vehicle
traffic remained upbeat, increasing by 2.2%.

Total revenue contributed by APRR (excluding construction revenue**) reached
EUR602.3m (+2.4%).

As regards the A65 Pau-Langon motorway, overall traffic increased by 0.1% up by
0.3% for light vehicles and down 0.9% for heavy goods vehicles. Total revenue
increased by 2.3% to EUR16.4m.

Overall traffic on the Millau viaduct decreased by 1.1%, down by 2.2% for light
vehicles and up 4.3% for heavy goods vehicles. Total revenue increased by 4.7%
to EUR8.0m.

Revenue contributed by the Pierre Mauroy Stadium in Lille amounted to EUR6.4m,
while revenue contributed by the Autoroute de l'Avenir in Senegal amounted to
EUR13.0m.

Other concessions and public-private partnerships generated revenue of
EUR36.3m.

3 - FINANCIAL SITUATION

The Group's liquidity, as measured by money market investments and undrawn
confirmed credit lines, reached EUR2.6bn at 31 March 2019, improving by
EUR0.3bn year-on-year.

Furthermore, this day, Eiffage announced that it has increased to EUR2bn its
credit line incorporating social and environmental criteria.

This new facility is destined for the general corporate purpose of Eiffage. It
will substitute itself to the existing undrawn EUR1bn credit line maturing in
April 2021. Signed for 5 year with 2 possible 1 year extension, this facility
lengthen the horizon of the Group means and enhances their terms.

In order to translate the Group's undertaking in social and environmental
matters, this facility margin will partially depend from the Group's
performance in two extra financial domains of deep attention, health & safety
and carbon footprint. As such, an improvement on either one of these topics
will lead to a reduction in the credit margin. A deterioration would lead to
compensation measures in favour of associations and a foundation working in the
general interest.

The transaction which is oversubscribed by 45% by a syndicate of 20
institutions illustrates their trust towards the Group.

4 - SIGNIFICANT EVENTS SINCE 31 MARCH 2019

This day, Eiffage announced entering into exclusive negotiations to acquire the
entire participation of CASIL Europe at the capital of the Aéroport
Toulouse-Blagnac (ATB) company, representing 49.99% of ATB capital. ATB is the
concession company until 2046 of the Toulouse-Blagnac airport, France 3rd
biggest regional airport with 9.6M passengers in 2018.

This operation fits in Eiffage strategy aimed at diversifying its concessions
portfolio, already strong of a number of holdings in transport infrastructure
in Europe, as well as lengthening its duration.

Eiffage reminds that the sale procedure to CASIL Europe by the State of 49.99%
ownership in ATB has been challenged before the French courts and this
litigation has recently been brought before the Conseil d'Etat, the result of
which conditions the closing of the potential acquisition by Eiffage of CASIL
Europe shareholding in ATB.

In case of conclusion of a disposal agreement, the operation would also be
subject to certain customary conditions precedents.

5 - OUTLOOK

Given the high level of activity at all divisions, the brisk order intake by
Contracting and the resilient motorway traffic, Eiffage confirms its 2019
guidance of further growth in the Group's activity and profits.

The Contracting order book reached EUR15.2bn at 31 March 2019, up by 8%
year-on-year (and by 9% over three months). This represents 12.9 months of
activity for the Contracting divisions. The order book for Property Development
reached EUR0.6bn (-13% year-on-year), while for Concessions it reached EUR1.1bn
(-4% year-on-year).

Group sales for the second quarter of 2019 and results for the first half of
2019 will be published on 28 August 2019 after trading hours.

Change in order books (in billion of euros)

                                                                    % change
                    At           At           At       % change    quarter-on-
               31/03/2018   31/12/2018   31/03/2019  year-on-year   quarter

Contracting        14.1         13.9         15.2         +8%          +9%
Property
development         0.6          0.6          0.6        -13%          -2%
Concessions         1.1          1.1          1.1         -4%          -1%

Glossary
* Like-for-like (lfl) means at constant consolidation scope and constant
  exchange rates. Constant consolidation scope: calculated by neutralising:
- the 2019 contribution made by companies consolidated for the first time in
  2019;
- the 2019 contribution made by companies consolidated for the first time in
  2018, for the period equivalent to that in 2018 before they were consolidated
  for the first time;
- the 2018 contribution made by companies deconsolidated in 2019, for the
  period equivalent to that in 2019 after they were deconsolidated;
- the 2018 contribution made by companies deconsolidated in 2018.
Constant exchange rates: 2018 exchange rates applied to 2019 local currency
sales.

**Definition of concessions revenue under IFRIC 12: the construction revenue of
concessions corresponds to costs relating to services to build or improve the
infrastructure committed by the concession operator determined in accordance
with the requirements of IFRIC 12, "Service Concession Arrangements", after
elimination of intragroup operations.

Investor relations                          Press contact
Xavier Ombrédanne                           Sophie Mairé
Tel: +33 (0)1 71 59 10 56                   Tel: +33 (0)1 71 59 10 62
e-mail: xavier.ombredanne@eiffage.com       e-mail: sophie.maire@eiffage.com

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11/03/2024 18:10

EIFFAGE (EPA:FGR) - Eiffage - Financial information at 31 March 2019

Transparency directive : regulatory news

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