2020 FULL-YEAR RESULTS

• Business and operating margin on activity impacted by the health crisis
• 10 acquisitions in France and abroad in 2020 & 2021

BUSINESS IN 2020 IMPACTED BY THE HEALTH CRISIS: ‐11.1%

Revenue reaches €2,331.9 M decreasing by 11.1% as compared to 2019. On a like‐for‐like basis, business decreases by 12.9% (‐19.5% in France and ‐7.9% outside France) as it is strongly impacted by the health crisis.

The crisis has mainly impacted the Automotive and Civil aeronautics whereas Rail/Naval, Life Sciences and Energy (Oil & Gas excepted) are strong and still growing.

Therefore business has significantly decreased in 2020 in the countries where the Automotive and Civil aeronautics are predominant – such as France, Germany, Sweden, the US and the UK. On the contrary, performance was satisfactory in Southern Europe, Switzerland and Asia Pacific.

OPERATING PROFIT ON ACTIVITY: 6.1% OF REVENUE

The operating profit on activity reaches €142.4 M (i.e. 6.1% of revenue). Measures such as partial unemployment, cost management – SG&A, near freeze‐up on hiring, reduction in workforce, etc. – that were undertaken have helped to limit a further decrease of the operating margin despite some additional costs caused by the pandemic.

OPERATING PROFIT

Operating profit reaches €119.2 M (i.e. 5.1% of revenue) including €7.9 M of share‐based payments and €15.3 M non‐recurring costs ‐ mainly restructuration costs (€7.0 M), acquisition costs (€5.8 M) and costs associated with tax adjustements (€2.5 M).

NET PROFIT, GROUP SHARE

Financial result accounts for €14.1 M mainly thanks to gains on investment disposals. After taking into account tax expenses of €36.9 M, earnings from equity affiliates of €1.4 M and minority interests of €0.2 M, net income equals €98.0 M.

NET CASH: €195.6 M / GEARING: ‐16.1%

Cash flow reaches €188.7M (including IFRS16 effects), decreasing by 41.1% as compared to 2019, in line with a declining OPA (‐45.4%). WCR decrease equals €168.9 M as a result of reduced customer receivables linked to a decreased activity and an improved DSO.
Free cash flow reaches €295.3M as 12.7% of revenue. Without IFRS16 effects operational, free cash flow reaches €246.8 M i.e. 10.6%, increasing by 54.0% as compared to 2019 (€160.3 M).
After taking into account net changes in scope (‐€122.2 M), other financial flows (‐€3.9 M) and because of the absence of dividend payment this year, net cash position equals €195.6 M at end of December 2020 (€74.9 M in 2019)

EXTERNAL GROWTH: 9 ACQUISITIONS ET 3 COMPANIES SOLD IN 2020 – 1 ACQUISITION IN 2021

ALTEN has consolidated its external development by carring out 10 acquisitions (9 in 2020 and 1 in 2021):

• In Asia: 2 companies – one specialised in IT and the other one in Software development (Revenue: €34.5 M, 580 consultants).
• In US/Ukraine: 1 company specialised in Software development (Revenue: €7.5 M, 110 consultants).
• In Germany: 2 companies in Engineering Consulting (Revenue: €43 M, 400 consultants).
• In Italy: 2 companies – one specialised in Data science and Data management, the other one in IT Infra and Digital services (Revenue: €97 M, 1,185 consultants).
• In France: 2 companies – one specialised in IT infrastructures (Revenue: €32 M, 180 consultants), the other one in Information Systems Transformation (Revenue: €38 M, 280 consultants), in February 2021.
• In Portugal: 1 company specialised in IT infra and Digital services (Revenue: €27 M, 400 consultants).

ALTEN has meanwhile sold 3 non‐strategic companies in 2020:

• 1 company in China specialised in the Automotive industry (Revenue: €6 M, 160 consultants).
• 2 companies in France specialised in Support and Network maintenance & Manufacturing (Revenue: €21 M, 360 consultants).

OUTLOOK FOR 2021

The crisis has more durably affected the sectors of Automotive, Heavy trucks, Aerospace & Civil aeronautics. However, contrary to Civil aeronautics, Automotive should resume activity in 2021. Other sectors will also get back to a standard pace of growth.
Business is expected to resume more sharply in 2021.
Depending on the evolution of the health crisis, we foresee a resuming activity and a rebound of organic growth in the second half of 2021.
To improve its development and consolidate its position in strategic sectors and activities, ALTEN will pursue a targeted strategy of external growth.