SPIE - Press release - Quarterly information as at March 31st, 2024

    SPIE - Press release - Quarterly information as at March 31st, 2024 

Cergy, April 25th, 2024

Q1 2024 revenue up +11.6%, confirming our unique positioning on dynamic markets overall and reflecting our outstanding delivery on our bolt-on M&A strategy

• Strong +6.2% organic growth including a very high contribution from The Netherlands, Austria, Poland and Global Services Energy, a good level of organic growth in Germany at +4.1% and France remaining very solid at +2.2%
• +5.1% contribution from bolt-on acquisitions
• +0.3% from currency movements
• Positive dynamics on our markets overall with a good visibility for the year

Outstanding M&A activity supported by a rich pipeline of opportunities in our geographies

• Closing of the acquisition of Correll group (Global Services Energy) in January 2024 and ROBUR in March 2024 (Germany)
• In Q1 2024 SPIE announced the acquisition of:
  • ICG in Germany in City Networks and Grids activities with c. 230 million euros annual revenue (closed on April 18th, 2024)
  • MBG in Germany in Technical Facility Management with c.15 million euros annual revenue (closed on March 27th, 2024)

2024 outlook confirmed

• Further organic growth, at a slower pace than in 2023
• Further EBITA margin increase
• Continuation of a dynamic bolt-on M&A strategy, remaining at the core of SPIE’s business model
• The proposed dividend pay-out ratio will remain at c.40% of Adjusted Net Income1 attributable to the Group

Gauthier Louette, Chairman & CEO, commented: “SPIE continued to deliver a strong organic growth in Q1 2024 after a record year in 2023. It evidences the good momentum on our markets, as well as SPIE’s unique positioning in highly valuable multi-technical services related to change in energy mix, decarbonation and electrification in industry, low carbon mobility, energy efficiency, and smart city. This unique positioning as a key enabler for energy transition, combined with a high quality of execution and a well-balanced business profile provide the Group with a strong dynamic. With 245 million euros of annual acquired revenue already announced in Q1, this quarter has been very active, and the pipeline of opportunities remains very rich to nurture our compounding model. This strong Q1 performance reinforces our confidence to achieve our 2024 guidance.”

Revenue

Consolidated revenue was €2,225.5 million in Q1 2024, up +11.6% year-on-year compared to €1,994.0 million in Q1 2023. SPIE’s revenue grew organically by +6.2% compared to the first quarter of 2023 (+10.9% organic growth in Q1 2023). Contribution from acquisitions was +5.1% and currency movements accounted for +0.3%.

In millions of euros(unaudited)	Q1 2024	Q1 2023		Change	o/w organic growth	o/w external growth	o/w disposal	o/w foreign exchange
France	819.9	789.7		+3.8%	+2.2%	+1.7%	-	-
Germany	621.0	528.3*		+17.6%	+4.1%	+13.5%	-	-
North-Western Europe	472.4	427.2		+10.6%	+10.0%	+0.6%	-	-
Central Europe	177.3	158.5*		+11.8%	+3.2%	+4.1%	-	+4.5%
Global Services Energy	134.9	90.3		+49.4%	+43.7%	+7.2%	-	-1.5%
Group revenue	2,225.5	1,994.0		+11.6%	+6.2%	+5.1%	-	+0.3%

* Reclassification of Traffic System revenue from Germany to Austria (for €1.8 million in Q1 2023) compared to the segmentation provided in the FY2023 results press release. The table presenting the new segmentation with 2023 figures is in the appendix of the present press release.

France

The France segment’s revenue grew by +3.8% in Q1 2024, including a +2.2% organic growth. Contribution from acquisitions accounted for +1.7%.

Despite a high comparison basis and constrained nuclear activities, the organic growth in Q1 2024 remained very solid at +2.2%. Building Solutions continued to be supported by highly technical solutions featuring substantial components on energy efficiency (such as energy renovation of office buildings, HVAC systems in the pharmaceutical sector) or on digital transformation (such as data centres installation). Technical Facility Management was well-oriented with an excellent level of renewals and additional works performed on top of the maintenance base contract. City Networks was supported by smart public lighting solutions and public transportation. Industry Services was resilient with higher added value contracts linked to electrification and decarbonation. Nuclear Services remained constrained in Q1. However, our activity in this segment remains solid with the 5-year framework agreement with EDF for nuclear power plant in operation that was renewed at the end of 2023, illustrating the key role of SPIE in this sector.

Germany The Germany segment’s revenue increased by +17.6% in Q1 2024, including a +4.1% organic growth and a +13.5% related to the contribution from bolt-on acquisitions.

Germany registered a good level of organic growth at +4.1% in Q1 2024. The activity was very dynamic in High Voltage thanks to the ongoing ramp up of several projects nurtured by massive investments made across the country related to the change in energy mix; visibility remains very good, supported by an all-time high backlog. City networks and Grids benefitted from the strong need for modernization and upgrade of distribution grids, but also fibre roll-out projects. Technical Facility Management will progressively ramp up along the year supported by a permanent focus from our customers on energy efficiency and decarbonation. The good level of organic growth recorded in Germany in Q1 evidences the quality of our positioning focusing on energy transition markets. The contributions from bolt-on acquisitions accounted for +13.5%, illustrating the continuing deployment of our positions in our biggest addressable market.

North-Western Europe

Revenue in the North-Western Europe segment increased by +10.6% in Q1 2024, including +10.0% organic growth. Contribution from acquisitions accounted for +0.6%.

In the Netherlands the activity was at a very high level in Q1 supported by High Voltage activities that were driven by renewables connections and modernization of the grids, as well as Bridges and Locks activities fostered by massive investments from public authorities. Building Solutions was also very dynamic thanks to the needs for renovation and decarbonation and despite the slowdown in real estate construction, where SPIE has a very limited exposure. Industry Services was supported by the transformation towards electrification, but also a strong need for engineering solutions where SPIE has become a key partner for its clients.

In Belgium, revenue growth was stimulated by the need for building renovation related to energy efficiency challenges and the high voltage projects with the ongoing investments made into the grids (for upgrade and expansion of capacity).

Central Europe Revenue in the Central Europe segment in Q1 2024 was up + 11.8%, including +3.2% of organic growth and +4.1% related to growth from acquisitions. The foreign exchange amounted to +4.5%, mainly linked to the zloty.

In Central Europe, excluding Switzerland, the organic growth was very strong, mainly driven by Austria where our markets are very favourable, bolstered by the investments made in infrastructures (especially tunnels and transportation infrastructures). In Poland, SPIE benefitted from its very strong positioning in the dynamic markets of High Voltage, Building Solutions and Technical Facility Management. The acquisitions made over the last two years in Central Europe enable SPIE to be uniquely positioned to capture the strong market growth.

In Switzerland, organic growth was in negative territory due to the exceptionally high level of activity in Q1 2023 related to the catching up of activities following prior supply chain delays in Information and Communication Services.

Global Services Energy

The Global Services Energy segment’s revenue grew by +49.4%, including a +43.7% organic growth in Q1 2024. The external growth had a +7.2% contribution and the currency movements had a -1.5% impact, mainly related to US Dollar/ Euro parity.

In Q1 2024 the organic growth reached an exceptional level despite the already high comparison basis. The activity was propelled by the full ramp-up of several contracts signed over the last two years mainly in West Africa. The mid-term visibility remains good on that segment given the nature and the length of its contractual base. The integration of Correll group, acquired recently, is progressing well and accelerate the diversification of Global Services Energy towards renewable energy.

2024 outlook confirmed

• Further organic growth, at a slower pace than in 2023
• Further EBITA margin increase
• Continuation of a dynamic bolt-on M&A strategy, remaining at the core of SPIE’s business model
• The proposed dividend pay-out ratio will remain at c.40% of Adjusted Net Income2 attributable to the Group

Conference call for investors and analysts

Date: Thursday, April 25th, 20249:00 am Paris time – 8:00 am London time

Speakers: Gauthier Louette, Chairman & CEOJérôme Vanhove, CFO

Dial-in details:

• France: [phone]
• UK-Wide: [phone]
• US: [phone]
• Password: SPIE
• Webcast: https://channel.royalcast.com/landingpage/spie/20240425_1/

Next events

2024 Annual General Meeting:                         May 3rd, 2024

Dividend ex-date3:                                         May 14th, 2024

Dividend payment date1:                                 May 16th, 2024

2024 Half-year results:                                 July 26th, 2024, before market opening

Quarterly information at September 30th, 2024:         October 31st, 2024, before market opening

Financial definitions

Organic growth represents the production completed during the twelve months of year N by all the companies consolidated by the Group for the financial year ended December 31 of year N-1 (excluding any contribution from any companies acquired during year N) compared with the production completed during the twelve months of year N-1 by the same companies, independently of the date on which they were first consolidated within the Group.

Segment Central Europe includes Poland, Switzerland, Austria, Czech Republic, Hungary and Slovakia.

Segment North-Western Europe includes The Netherlands and Belgium.

About SPIE

SPIE is the independent European leader in multi-technical services in the areas of energy and communications. Our 50,000 employees are committed to achieving the energy transition and responsible digital transformation alongside our customers. SPIE achieved in 2023 consolidated revenue of €8.7 billion and consolidated EBITA of €584 million.

Contacts

SPIEPascal OmnèsGroup Communications Director Tel. + 33 (0)1 34 41 81 [e-mail]

SPIEAudrey BourgeoisInvestor Relations DirectorTel. + 33 (0)1 34 41 80 [e-mail]

IMAGE 7Laurent Poinsot & Claire DoligezTel. + 33 (0)1 53 70 74 [e-mail]

www.spie.comhttps://www.facebook.com/SPIEgrouphttp://twitter.com/spiegroup

Disclaimer

Certain information included in this press release are not historical facts but are forward-looking statements. These forward-looking statements are based on current beliefs, expectations and assumptions, including, without limitation, assumptions regarding present and future business strategies and the environment in which SPIE operates, and involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements, or industry results or other events, to be materially different from those expressed or implied by these forward-looking statements.Forward-looking statements speak only as of the date of this press release and SPIE expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements included in this press release to reflect any change in expectations or any change in events, conditions or circumstances on which these forward-looking statements are based. Such forward-looking statements are for illustrative purposes only. Forward-looking information and statements are not guarantees of future performances and are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of SPIE. Actual results could differ materially from those expressed in, or implied or projected by, forward-looking information and statements. These risks and uncertainties include those discussed or identified under Chapter 2 “Risk factors and internal control” in SPIE’s 2023 Universal Registration Document, filed with the French Financial Markets Authority (AMF) on April 5th, 2024, under number D.24-0245 which is available on the website of SPIE (www.spie.com) and of the AMF (www.amf-france.org).This press release includes only summary information and does not purport to be comprehensive. No reliance should be placed on the accuracy or completeness of the information or opinions contained in this press release.This press release does not contain or constitute an offer of securities for sale or an invitation or inducement to invest in securities in France, the United States or any other jurisdiction.        

Appendix

Reconciliation between revenue (as per management accounts) and revenue under IFRS

In millions of euros (unaudited)		Q1 2024	Q1 2023
Revenue (as per management accounts)		2,225.5	1,994.0
Holding activities		3.5	4.5
Others	(a)	(41.2)	3.7
Revenue under IFRS		2,187.8	2,002.3

(a)   The amount in Q1 2024 mainly corresponds to the revenue contributions from ROBUR (1 month) and Correll Group (3 months) as these two companies have been acquired during Q1 2024 but are not yet consolidated in the accounts as at March 31st, 2024.New reporting segment (as from 2024)

Revenue 2023 - new reporting segment

	Q1 2023		Q2 2023	H1 2023	Q3 2023	9m 2023	Q4 2023		2023 Full-Year
France		789.7	796.3	1,585.9	772.6	2,358.6	920.7		3,279.3
Germany*		528.3	589.4	1,117.7	631.0	1,748.6	691.7		2,440.3
North-Western Europe		427.2	442.6	869.8	448.3	1,318.1	491.5		1,809.6
Central Europe*		158.5	195.2	353.8	187.7	541.5	231.2		772.6
Global Services Energy		90.3	96.5	186.8	105.5	292.4	114.7		407.1
Group	1,994.0		2,120.0	4,114.0	2,145.1	6,259.2	2,449.8		8,709.0

*Reclassification of Traffic System revenue from Germany to Austria compared to the segmentation provided in the FY2023 results press release

EBITA 2023 – new reporting segment

				H1 2023	2023 Full-Year
France				94.1	229.0
Germany*				53.0	161.6
North-Western Europe				46.7	106.6
Central Europe*				8.6	38.9
Global Services Energy				15.2	36.4
Holding				2.4	11.7
Group				220.0	584.2

*Reclassification of Traffic System revenue and the corresponding EBITA from Germany to Austria compared to the segmentation provided in the FY2023 results press release

*** End of document ***

1 Adjusted for i) operating income items restated from the Group’s EBITA, ii) the change in fair value and amortisation costs of derivative related to the ORNANE, and iii) the corresponding normative tax income adjustment2 Adjusted for i) operating income items restated from the Group’s EBITA, ii) the change in fair value and amortisation costs of derivative related to the ORNANE, and iii) the corresponding normative tax income adjustment3 Subject to shareholders’ approval at the next Annual General Meeting on May 3rd, 2024

Attachment

• SPIE - Press release - Quarterly information as at March 31st 2024