first-half 2019 results - assystem.com

FIRST-HALF 2019 RESULTS

DOMINIQUE LOUISChairman & CEO

PHILIPPE CHEVALLIERCFO & Deputy CEO

SEPTEMBER 2019

2

DisclaimerFIRST-HALF 2019 RESULTS

This presentation includes forward-looking statements, which, by their very nature, involve inherent risks and uncertainties. Thesestatements concern future financial performance and other risks relating to Assystem's markets as well as its results, levels ofbusiness, performance, and objectives.

Actual results could therefore differ significantly from those currently anticipated. Assystem considers that such statements are basedon reasonable assumptions, but cannot and does not give any assurance that future results, levels of business, performance orachievements will be consistent with those statements.

The above-mentioned risks include: trends in Assystem's markets; increased competition in these markets; the profitability ofAssystem's expansion strategy; challenges to or loss of its intellectual property rights; its ability to establish and maintain strategicrelationships in its major businesses; its ability to develop and take advantage of new software and services; and the effect of futureacquisitions and investments on the Assystem share price.

Due to the uncertain nature of these forward-looking statements, the reader is advised that they do not constitute a guarantee bythe Company or by any other person as to the achievement of Assystem's objectives and projects. Neither the Company nor any otherperson assumes any liability for the accuracy or completeness of these statements, which apply solely to this presentation.

3

5% 38.2%

ASSYSTEM TODAY


ENERGY & INFRASTRUCTURE STAFFING

100%

Assystem’s % interest

100% 100%

CONTENTS PART 1 ● Reaping the benefits of a consistent strategy

PART 2 ● First-half 2019 financial performance

PART 3 ● Targets for full-year 2019

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8

19

APPENDICES 22

PART 1

REAPING THE BENEFITS OF A CONSISTENT STRATEGY

6

Reaping the benefits of a consistent strategy (1/2)

Profitable growth


• Very robust growth

• A marked upswing in operating profitability in both absolute value and margin terms(1)

• 12-month EBITA to free cash flow conversion rate more than 80%(2)

(1) EBITA and EBITA as a % of revenue(2) Period from 1 July 2018 to 30 June 2019

7

Reaping the benefits of a consistent strategy (2/2)

Developments in our core businesses


23.4% like-for-like growth for nuclear engineering, underpinned by:

- The depth and quality of our offering - Our strong reputation for project delivery- Our increasing international reach

A major contract win with SNCF for public transport engineering:

- To partner SNCF Réseau in implementing the Rolling Stock Blueprint aimed at modernising the rail network in Paris and its suburbs

Acquisition of Asco, which:

- Reinforces our franchise for projects to maintain and extend the life of French nuclear power plants

- Rounds out the project management services we offer to our major clients – a business we have built up since 2016 by combining organic and acquisition-led growth

PART 2

FIRST-HALF 2019 FINANCIAL PERFORMANCE

9

Application of IFRS 16 and financial indicatorsFIRST-HALF 2019 RESULTS

Assystem adopted IFRS 16, “Leases” on 1 January 2019 using the modified retrospective approach. In accordance with this approach, the financial statements for 2018 have not been restated.

The first-time application of this new standard had only a limited effect on EBITA and consolidated profit for theperiod. However, it did have highly significant impacts on the EBITDA and free cash flow indicators used byAssystem. All of these impacts are disclosed in this document together with the related figures.

In view of these highly significant impacts, in order to permit meaningful year-on-year comparisons of the aboveindicators and maintain a method of calculating EBITDA and free cash flow consistent with that used to calculatenet debt, Assystem will continue to use EBITDA and free cash flow indicators as calculated excluding the impactsof IFRS 16.

In the consolidated statement of financial position, the Group's adoption of IFRS 16 resulted in the recognition oflease liabilities and right-of-use assets presented on the liabilities and assets side respectively under “Leaseliabilities” and “Right-of-use assets”. The net debt indicator used by Assystem does not include lease liabilities.

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€246.5m

€15.6m6.3% of revenue

Key figures for first-half 2019FIRST-HALF 2019 RESULTS

Revenue

+ 14.1%

EBITA(1)

+ 69.5%

(1) The Group’s first-time application of IFRS 16 had a €0.2 million positive impact on EBITA in first-half 2019.(2) Excluding the impact of IFRS 16.(3) The Group’s first-time application of IFRS 16 had a €0.1 million negative impact on consolidated profit for the period in first-half 2019.


12-month free cash flow(2)


Consolidated profit for the period(3)

x 2

11

Revenue FIRST-HALF 2019 RESULTS

216.10.4 246.5

H1 2018 H1 2019

30.8

(0.8)

E&I Staffing Other

(In €m)

+14.1%

Like-for-like growth: 13.2%

Impact of changes inscope of consolidation: -

Currency effect: + 0.9%

Total growth: 14.1%

Impact on like-for-like growth of change in no. of business days: - 0.8%

12

EBITA and EBITA marginFIRST-HALF 2019 RESULTS

9.2

0.4 15.6

H1 2018 H1 2019

6.1 (0.1)

E&I Staffing Other

(In €m and % of revenue )

+69.3%4.3%

6.3%

+69.5%

13

Energy & Infrastructure (E&I) – RevenueFIRST-HALF 2019 RESULTS

(1) Total growth (breaking down as a 15.9% like-for-like increase and a 0.4% positive currency effect).(2) Total growth (breaking down as a 23.4% like-for-like increase and a 0.3% positive currency effect).(3) Total growth (breaking down as a 2.7% like-for-like increase and a 0.6% positive currency effect).

€219.9m

Robust momentum in the Nuclear sectorRamp-up of business with key accounts

Faster growth in the Middle East and Turkey (with revenue up €13.1m vs H1 2018)

Total revenue +16.3%(1)

120.6149.1

Nuclear revenue ET&I revenue

A mixed picture depending on the sectorRobust growth in building infrastructure for

Radicon and in life sciencesStreamlining measures under way for

some sectors

+23.7%(2)

68.5

70.8

+3.3%(3)

(In €m)H1 2018 H1 2019 H1 2018 H1 2019

14

E&I – EBITA and EBITA marginFIRST-HALF 2019 RESULTS

Return to a normal level of EBITA margin for the period

(In €m and % of revenue)

10.3

16.4

5.4%+€6.1m

7.5%

H1 2018 H1 2019

15

Staffing: Revenue and Operating profit before non-recurring items (EBITA)


• Stabilised revenue weighting between sectors

0.40.8

H1 2018 H1 2019

EBITA (in €m and % of revenue)

Oil & Gas

Industry

12.2-0.9%

10.5+5.0%

Revenue (in €m)

€22.7m +2.0%(1) 1.8%

3.4%

(1) Including a 5.0% positive currency effect.

• Increase in EBITA margin during the period

16

From EBITA to consolidated profit for the period FIRST-HALF 2019 RESULTS

(In €m)

15.6

6.7

14.3

(1.8)(4.5)

EBITA Consolidated profit

for the period

Net non-recurring expenses

Impact of Expleo Group

non-recurring expenses

Income tax expense

(1.2)

(2.6)

Contribution of Expleo Group excl. impact of non-recurring

expenses(1)

(1) Comprising €4.4 million in coupons on Expleo Group convertible bonds and €2.3 million for Assystem’s share of Expleo Group’s profit for first-half 2019 excluding the impact of non-recurring expenses recorded by Expleo Group during the period.

OtherFree share plan

expenses

(0.3)

Framatome dividend

2.4

17

Movements in net debtFIRST-HALF 2019 RESULTS

68.7

(43.8)

11.3

15.0 2.0

9.3

Free cash flow (excl. IFRS 16 impact):• As expected, working capital requirement related to the K.A.CARE contract returned

to a normal level in first-half 2019. The down payment received on this contract in late 2018 was used during the period.

(In €m)

Free cash flow

Dividends paid to Assystem’s

shareholders

Net debt at 31 Dec. 2018

Other movements

Acquisitions of shares

(additional consideration for Framatome) and

purchased goodwill

Net debt at 30 June 2019

31.1

NB: Consolidated EBITDA (excluding the IFRS 16 impact) contributing to free cash flow amounted to €17.4m. The impact of IFRS 16 on EBITDA was €4.6m.

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Expleo Group: H1 2019 revenue and EBITDA FIRST-HALF 2019 RESULTS

€544.2m

Revenue

+6.4%o/w +0.1% like-for-like

€47.5m

EBITDA(1)

(1) EBITA before net depreciation expense and net additions to provisions for recurring operating items, excluding the impact of IFRS 16 on EBITA and depreciation expense.

+15.9%representing 8.7% of revenue

TARGETS FOR FULL-YEAR 2019

PART 3

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Targets for full-year 2019FIRST-HALF 2019 RESULTS

Consolidated revenue at least€500m

Free cash flow(1)

representing more than6% of revenue

EBITA margin at least 6.8%(1)

(1) Excluding the impact of the application of IFRS 16.

Including ASCO, consolidated as from 1 October 2019.

for the 24-month period covering the 2018 and 2019 financial years

APPENDICES

23

Condensed consolidated income statementFIRST-HALF 2019 RESULTS

(1) Operating profit before non-recurring items (EBITA) including share of profit of equity-accounted investees other than Expleo Group (€0.6 million in first-half 2018 and €0.5 million in first-half 2019). The Group’s first-time application of IFRS 16 had a €0.2 million positive impact on EBITA in first-half 2019.

(2) Including profit attributable to non-controlling interests: a nil amount in first-half 2018 and €0.2 million in first-half 2019. Profit for the period attributable to owners of the parent therefore totalled €7.1 million in first-half 2018 and €14.1 million in first-half 2019. The Group’s first-time application of IFRS 16 had a €0.1 million negative impact on consolidated profit for the period in first-half 2019.

In € millions H1 2018 H1 2019Revenue 216.1 246.5

Operating profit before non-recurring items (EBITA)(1) 9.2 15.6EBITA margin 4.3% 6.3%

Non-recurring income and expenses 0.4 (1.2)Share-based payments (0.1) (0.3)

Operating profit 9.5 14.1

Share of profit/(loss) of Expleo Group (consolidated by the equity method) (2.9) (0.3)Income from Expleo Group convertible bonds 3.9 4.4Net financial income/(expense) (0.2) 0.6

Income tax expense (3.1) (4.5)

Profit from continuing operations 7.2 14.3

Profit/(loss) from discontinued operations (0.1) -

Consolidated profit for the period(2) 7.1 14.3

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Condensed balance sheet at 30 June 2019FIRST-HALF 2019 RESULTS

BALANCE SHEET TOTAL: €528.4m

Net WCR(2) : €53.9m Net debt: €68.7m

NC liabilities(3) : €38.5m

Equity€384.1m

Non-current assets(1):€111.1m

O/w goodwill: €83m

(1) Goodwill, intangible assets, property, plant and equipment, deferred tax assets, investment property and miscellaneous financial assets.(2) Including €15.1m in research and CICE tax credits.(3) Not including lease liabilities and debt items.

Expleo Group shares and conv. bonds

€194.2m

Framatome shares:€132.3m

Right-of-use assets (IFRS 16):€36.9m

Lease liabilities (IFRS 16): €37.1m

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Assystem’s ownership structure FIRST-HALF 2019 RESULTS

(1) HDL Development is a holding company controlled by Dominique Louis (Assystem's Chairman and Chief Executive Officer), notably through HDL, which itself holds 0.35% of Assystem's capital.

(2) Including 0.35% held by HDL.

Euronext Compartment B

FR0000074148Mid-caps deferred

settlement service (SRD)

Indices:

CAC All-Shares

CAC Industrials

CAC Support Services

Next 150

Market capitalisation:€598m

(share price at 30/08: €38.15)Number of shares:

15,668,216o/w 658,205

held in treasury

HDL Development(1)

61.34%

Treasury shares4.20%

Free float(2)

34.46%

at 31 August 2019

first-half 2019 results - assystem.com

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