Alten : Presentation of 2019 annual results

ALTEN

2019 Annual results

Simon Azoulay

Chairman and Chief Executive Officer

Bruno Benoliel

Deputy Chief Executive Officer

Paris, February 19th 2020

DISCLAIMER

"This presentation may contain information that may be considered forward-looking. This information constitutes trends or targets and should not be considered to be a forecast of the Company's results or any other performance indicator.

By its nature, this information is subject to risk and uncertainty, which may be outside the Company's control in certain cases. A more detailed description of these risks and uncertainties appears in the Company's Registration Document, available on its website (www.alten.com)."

BUSINESS AND

HIGHLIGHTS IN 2019

ALTEN, LEADER IN ENGINEERING & TECHNOLOGY CONSULTING (ETC)

REVENUE: €2,624.0 M

+15.6%

Of which 10.7% organic

INTERNATIONAL:

• 56.8% of revenue

€1,489.5 M: +20.1%

Of which => 11.2% organic => 1.2% Forex effect

FRANCE:

• 43.2% of revenue

€1,134.5 M: +10.2%

Organic only

Oper. Profit on Activity:

€260.8 M

9.9% of revenue

GEARING: -6.7%

Employees: 37,200

32,550

Engineers

Of which 20,830 overseas

87.5% OF

TOTAL HEADCOUNT

FOOTPRINT IN OVER

25 COUNTRIES

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Full-Year Results 2019

32,550 ENGINEERS IN OVER 25 PAYS INCLUDING OVER 60% OVERSEAS

CANADA

AMERICAS

1,820

1,570

EUROPE

EXCLUDING FRANCE

13,660

12,670

FRANCE

11,720

11,250

FRICA &

MIDDLE EAST

ASIA/CHINA/INDIA

4,550

3,450

2019

2018

February 19th 2020 l

Full-Year Results 2019

800

660

5

ALTEN'S POSITIONING (SERVICES FROM ENGINEERS ONLY)

	Risk Level			Position	Estimated Gross	% Group activity
			Margin
		§	IP, Risk sharing, software publisher
	4	§	Capex investments:	Random & long	0%
		prototyping, testing and pre-	term
			production activities
	3			Work Packages		60%
			With Technical Direction
			Specific Methodologies & specific tools
					25% - 35%
				Time & Material (TM)
	2		With added value: HR management and		38%
				bench risks
		Nb: 2+ High-level consultancy
	1			Staffing, Freelance	5 - 18%	2%
	For information:	- Level 5 = manufacturer (Tier-1 plant & production)
				- Level 6 = industry (OEM - complete integrator)

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Full-Year Results 2019

ALTEN Group covers the whole cycle of a product development

Engineering

IS & Internal networks

(Products & Services

(Enterprise Services

delivered by the client)

for IT/IS departments)

Consulting

PMO

Customer

Organisation

Support

Internal

BPO

IS Software &

Support

Expertise &

Training

Operations

IS

Software

Applications

1 & 2

packages

ALTEN's

Engineering

Engineering

Industrial process &

Core business

Outsourced R&D

Manufacturing

Networks

Conception & Design

Support

engineering

Internal

BPO

Infra, Cloud,

1 & 2

networks

Security

Prototyping

Design

ALTEN's positioning mainly remains on Engineering (70%) 80% of ALTEN's whole activity is digital technology

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Full-Year Results 2019

• WELL-BALANCEDSECTOR-BASED DISTRIBUTION

		Aerospace
20.9%
	16.2%
20.8% 2018		Defence & Security
		4.7%

		Media	FY 2019
		€2,624 M
13.2%		6.8%
13.4% 2018		Telecoms
		6.4%

Retail & Services & Public sector

18.4% 10.7%

18.2% 2018

Banking Finance Insurance

7.7%

Automotive

20.5% 24.4%

Rail/Naval 24.7% 2018

3.9%

Energy

10.6%

Other Industries 23.1%

5.6% 22.9% 2018

Life Sciences

6.9%

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Full-Year Results 2019

OUR MARKETS

AUTOMOTIVE

20.5%

RAIL/NAVAL

3.9%

AEROSPACE/SPACE

16.2%

DEFENCE & SECURITY

4.7%

• Slow-downcaused by a decrease in sales and engine electrification.
• Needs remain high in ADAS, Infotainment, electric vehicles, engines & emissions, Big data and customer service.
• Significant investments from manufacturers (Bombardier/Alstom).
• Growth of ship fleets. Sharp expansion of submarine markets on export sales and for the French Navy (FDI/SNLE3/etc.).
• Challenges in the transformation of the industrial tool (Manufacturing engineering - Industry 4.0).
• Digital transformation of design and development.
• Investments in PLM (PMO, Big data, Predictive Maintenance, Quality, Customer support).
• Programs: Falcon/FX/A321 XLR.
• Launchers business recovery.
• Development of European tank, fighter aircraft and new generation of launchers, ….
• Sharp growth in the civil and military cybersecurity sectors.

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Full-Year Results 2019

OUR MARKETS

ENERGY

10.6%

LIFE SCIENCES

6.9%

TELECOMS

• Investments in Oil & Gas have resumed, (engineering & infrastructures), with major projects in the extraction and liquefaction of gas.
• New EPR programs (UK, India), modernisation and refurbishment of nuclear plants.
• Projects in renewable energy and more specifically wind energy.
• Pharmacy:
• Rationalisation of purchasing policies, changes in regulation, decrease in medicine investments.
• Medical equipments:
• Enforcement of regulation in compliance with quality systems from ISO 13485 standards
• Development of connected medical equipment (eHealth, IOT, embedded softwares).
• Design and implementation of very high speed infrastructures (FTTM/4G/5G/fibre)

6.4%

BFA/SERVICES/PUBLIC SECTOR

18.4%

• Development of digital services with providers (contents, payments, IOT, etc.)
• Regulatory compliance (Bale III, RGPD, etc.)
• Digital transformation of legacy to support the new techniques and reduce costs (cloud, mobile, automation process, RPA, big data/analytics)
• Cyber security projects and testing.

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Full-Year Results 2019

CONTINUED GROWTH STRATEGY THROUGH ACQUISITIONS

ALTEN completed SEVEN ACQUISITIONS OUTSIDE FRANCE:

(= 830 consultants and €65 M of revenue)

2 COMPANIES IN GERMANY: ANNUAL REVENUE: €22.5 M, 255 CONSULTANTS

1 COMPANY IN SPAIN: ANNUAL REVENUE: €6 M, 95 CONSULTANTS

1 COMPANY IN THE UK: ANNUAL REVENUE: €11 M, 170 CONSULTANTS

1 COMPANY IN DENMARK: ANNUAL REVENUE: €6 M, 50 CONSULTANTS

1 COMPANY IN INDIA: ANNUAL REVENUE: €8.5 M, 260 CONSULTANTS

1 BUSINESS IN THE US: ANNUAL REVENUE: €11 M

Thanks to a targeted plan for external growth, ALTEN pursues its development on an international level.

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Full-Year Results 2019

SHAREHOLDER BASE AS OF FEBRUARY 12TH 2020

Public

82.66%

FCPE Alten

1.07%	% IN SHARES

Founder		Treasury stock
14.92%
	1.35%

Capitalization (as of 12/02/20):

€3.781 MM

Number of shares

(as of 12/02/20):

34 170 940

Euronext Paris

Compartment A

FR 0000071946

(SRD)

% of voting rights

Founder	26.22%
FCP Alten	0.95%
Public	72.83%

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Full-Year Results 2019

2019

ANNUAL RESULTS

ONGOING INTERNATIONAL GROWTH
							2,624.0
M						2,269.9
INT					1,984.7
FR				1,540.9*			56.8%
				54.6%
					53.4%
			916.6*	48.4%
		*	30.9%				43.2%
*	436.2			46.6%	45.4%
193.1	27.0%		69.1%	51.6%
2.5%
73.0%
93.5%
2000	2005		2010	2015	2017	2018	2019

• Data is not restated under IFRS 15

February 19th 2020 l ALTEN - 2019 Full-Year Results

HEADCOUNT PROGRESSION

37,200

33,700 32,550 engineers

INT

FR

28,000

24,700 engineers

20,433

29,600 engineers

64.0%

62.0%

12,600

11,200 engineers

34.9%

65.1%

18,000 engineers

50.4%

49.6%

58.2%

41.8%

38.0% 36.0%

2010

2015 2017

2018 2019

February 19th 2020 l ALTEN - 2019 Full-Year Results

GROWTH IN BUSINESS - GROUP

€M	2018 Revenue	2019 Revenue	YoY change
Revenue on a l-f-l basis	2,269.9	2,512.8
	+10.7%
Change in scope		96.3
	+4.2%
FX impact		14.9	+0.7%
Consolidated revenue	2,269.9	2,624.0	+15.6%

Organic growth remains sustained and accounts for more than two third of the Group's growth.

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Full-Year Results 2019

GROWTH IN BUSINESS - INTERNATIONAL

€M	2018 revenue	2019 revenue
Revenue on l-f-l basis	1,240.0	1,378.3
Change in scope		96.3
FW impact		14.9
International - TOTAL	1,240.0	1,489.5

YoY change

+11.2%

+7.8%

+1.2%

+20.1%

Business outside France is still growing sharply: organic growth remains sustained with acquisitions accounting for nearly 40% of total growth.

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Full-Year Results 2019

PROGRESSION OF ORGANIC GROWTH IN 2019

%	Q1	Q2		H1	Q3	Q4		H2	FY
France	12.5%	14.3%		13.4%	10.2%	4.3%		7.1%	10.2%
International	12.6%	10.9%		11.7%	11.5%	9.8%		10.6%	11.2%
GROUP	12.6%	12.4%		12.5%	10.9%	7.3%		9.0%	10.7%
Growth on				13.2%				8.7%	10.8%
constant	13.6%	12.8%		9.5%	8.1%
business days

There is almost no business day effect on organic growth.

The pace of growth gets back to « normal » at the end of the year.

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Full-Year Results 2019

BREAKDOWN OF REVENUE PER GEOGRAPHICAL AREA AT DEC. 31TH 2019 (€M)

			FY				Change
COUNTRY		2018	%		2019	%	Published	Change in	Forex	Organic, excl.
		scope	Forex effect
FRANCE		1,029.9	45.4%		1,134.5	43.2%	10.2%	0.0%	0.0%	10.2%
INTERNATIONAL		1,240.0	54.6%		1,489.5	56.8%	20.1%	7.8%	1.2%	11.2%
NORTH AMERICA		257.7	11.4%		324.8	12.4%	26.0%	1.9%	6.0%	18.1%
GERMANY		222.0	9.8%		250.5	9.6%	12.8%	8.7%	0.0%	4.1%
SCANDINAVIA		166.9	7.4%		197.2	7.5%	18.2%	14.5%	-2.7%	6.4%
SPAIN		121.2	5.3%		155.6	5.9%	28.4%	22.6%	0.0%	5.8%
ITALY		87.3	3.8%		105.6	4.0%	21.1%	0.0%	0.0%	21.1%
ASIA PACIFIC		61.0	2.7%		95.9	3.7%	57.3%	16.9%	2.8%	37.6%
UK		82.0	3.6%		89.3	3.4%	9.0%	4.3%	0.8%	3.9%
NETHERLANDS		70.9	3.1%		80.5	3.1%	13.5%	6.5%	0.0%	7.0%
BELGIUM		73.0	3.2%		73.4	2.8%	0.6%	0.0%	0.0%	0.6%
OTHERS		98.0	4.3%		116.7	4.4%	19.0%	2.0%	1.6%	15.4%
TOTAL		2,269.9	100.0%		2,624.0	100.0%	15.6%	4.2%	0.7%	10.7%
February 19th 2020 l	Full-Year Results 2019								19

CONDENSED INCOME STATEMENT

€M	H1	H2	FY 2018	H1	H2	FY 2019	YoY change
2018	2018	2019	2019	2018/2019 %
Revenue	1,099.9	1,169.9	2,269.9	1,292.3	1,331.7	2,624.0	+15.6%
Operating Profit on Activity	102.7	121.3	224.0	116.6	144.2	260.8	+16.4%
As % of Revenue	9.3%	10.4%	9.9%	9.0%	10.8%	9.9%
Share-based payments	-0.9	-5.2	-6.2	-3.2	-2.0	-5.2
Non-recurring profit & impairment	-1.5	-2.2	-3.7	-4.5	-12.8	-17.3
Operating Profit	100.3	113.9	214.2	108.9	129.3	238.2	+11.2 %
As % of Revenue	9.1%	9.7%	9.4%	8.4%	9.7%	9.1%
Financial Income	0.1	-1.5	-1.5	0.1	-3.5	-3.4
Income tax expense	-28.9	-32.3	-61.2	-34.9	-42.4	-77.3
EMCs and minority interests	3.5	2.8	6.4	2.3	4.4	6.7
Net income, Group Share	75.0	82.9	157.9	76.4	87.8	164.2	+4.0%
As % of Revenue	6.8%	7.1%	7.0%	5.9%	6.6%	6.3%

• Strong growth of operating profit on activity.
• The operating margin on activity is close to 10% despite significant and ongoing structuring efforts.

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Full-Year Results 2019

FINANCIAL INCOME ANALYSIS

	2018	2019
Cost of net financial debt	-1.2	-1.3
Interests on leasing contracts (IFRS16)	-	-1.7
Cost of financial debt and lease	-1.2	-3.0
Forex result	1.1	1.0
Other net financial income	-1.4	-1.4
NET FINANCIAL INCOME	-1.5	-3.4

• Financial income is stable (IFRS16 impacts excluded)

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Full-Year Results 2019

CONDENSED INCOME STATEMENT BY REGION

€M	2018	2018	2018	2019	2019	2019
France	Intl.	Group	France	Intl.	Group
Revenue	1,029.9	1,240.0	2,269.9	1,134.5	1,489.5	2,624.0
Operating Profit on Activity	113.3	110.7	224.0	124.6	136.2	260.8
As % of Revenue	11.0%	8.9%	9.9%	11.0%	9.1%	9.9%
Share-based payments	-5.8	-0.4	-6.2	-4.2	-1.1	-5.2
Non-recurring profit & impairment	-	-3.7	-3.7	-6.1	-11.2	-17.3
Operating Profit	107.6	106.6	214.2	114.3	124.0	238.2
As % of Revenue	10.4%	8.6%	9.4%	10.1%	8.3%	9.1%
Financial income	-1.0	-0.4	-1.5	1.4	-4.8	-3.4
Income tax expense	-31.3	-29.9	-61.2	-44.3	-33.0	-77.3
EMCs and minority interests	9.0	-2.6	6.4	6.1	0.6	6.7
Net income, Group share	84.2	73.6	157.9	77.4	86.8	164.2
As % of Revenue	8.2%	5.9%	7.0%	6.8%	5.8%	6.3%

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Full-Year Results 2019

A VERY HEALTHY BALANCE SHEET

ASSETS

Equity & LIABILITIES

	Dec. 2018			Dec. 2019 (IFRS16)
	NON-CURRENT ASSETS:		NON-CURRENT ASSETS:
	619.4			843.9
	o/w goodwill : 494.1		o/w goodwill : 535.6
				Incl. Right of use: 174.0
	CURRENT ASSETS:		CURRENT ASSETS:
	921.8			1,003.6
	o/w customer receivables: 760.8		o/w customer receivables: 860.6
				Cash & cash equivalents: 202.6
	Cash & cash equivalents: 120.4

Dec. 2018

SHAREHOLDER'S EQUITY:

972.4

o/w Group share: 967.6

N-C LIABILITIES: 56.2

CURRENT LIABILITIES:

532.1

o/w customer-driven liabilities:

92.6

Current financial liabilities: 100.9

Dec. 2019 (IFRS16)

SHAREHOLDER'S EQUITY:

1,113.3

o/w Group share:

1,113.8

N-C LIABILITIES: 181.4

Incl. lease debts: 134,1

CURRENT LIABILITIES:

630.5

Incl. lease debts: 42.8

Incl. Customer-driven liabilities:

107.6

Current financial liabilities:124.9

Gearing is - 6,7 %

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Full-Year Results 2019

CHANGE IN NET CASH POSITION (€M)

Free cash flow : +160.3

	-18.8
	dont -2.0 IFRS16
			-77.1
320.3				-17.9
		-46.3
							IFRS16

-66.8

-33.42.3

		Incl. 48.3
		IFRS16
12.5		Cash flow from
Net cash
31/12/2018	operating activities

							74.9
					Other
Change in	Tax paid Capex	Flows from lease	Financial	Dividends	Net cash
financing	31/12/2019
WCR		debts	investments
		IFRS16			flows	24

February 19th 2020 l

Full-Year Results 2019

FREE CASH FLOW ANALYSIS

	2018	H1	H2	2019
OPERATIONAL CASH FLOW (MBA)	242.0	123.1	148.9	272.0
AS % OF REVENUE	10.7%	9.5%	11.2%	10.4%
DEPRECIATION OF RIGHTS OF USE AND	-	22.8	25.5	48.3
FINANCIAL COSTS(*)
CASH FLOW (MBA) IFRS16 (*)		145.9 (*)	174.4(*)	320.3 (*)
TAX PAID	(60.5)	(29.0)	(48.1)	(77.1)
CHANGE IN WCR	(82.2)	(27.9)	9.1	(18.8)
FLOWS FROM LEASE DEBT(*)	-	(22.1) (*)	(24.2) (*)	(46.3) (*)
CASH FROM OPERATIONS	99.3	66.9	111.2	178.1
AS % OF REVENUE	4.4%	5.2%	8.3%	6.8%
CAPEX	(16.8)	(8.0)	(9.9)	(17.9)
FREE CASH FLOW	82.5	58.9	101.4	160.3
AS % OF REVENUE	3.6%	4.6%	7.6%	6.1%
			* IFRS 16 applies to year 2019 only
February 19th 2020 l Full-Year Results 2019				25

FREE CASH FLOW ANALYSIS

Operational cash flow is higher than 10% of revenue, in proportion with Operating Profit on Activity.

Increase in WCR is limited because of:

• organic growth, getting back to « normal » rates on Q4 2019, is less cash consuming,
• improvement in DSO between December 2019 (92 days) and December 2018 (93 days), (as a reminder: 97 days in June 2019 due to the seasonal effect of activity).
• Decrease in social receivable (CICE) by €30 M

Capex is stable (0.7% of revenue).

February 19th 2020 l

Full-Year Results 2019

IFRS16 FINANCIAL IMPACTS: TRANSITION IN YEAR 2019 ONLY

BALANCE
SHEET	( € M )
A S S E T S
§ Rights of use	174.0
§Finance lease (IAS17)	(1.6)
L I A B I L I T I E S	172.4
§ Net income	0.4
§Translation reserve	(0.2)
§Lease debt	176.9
§ Financial lease debt (IAS17)	(1.6)
§ Rent free	(3.4)
§ Tax	0.3
		172.4

I N C O M E			F I N A N C I N G
S T A T E M E N T ( € M )		S T A T E M E N T ( € M )
§ OPA	0.4		§Cash flow	+48.3
			Depreciation of rights of use &
§Financial Income	(1.7)		financial costs
§ Non-recurring result	2.0		§WCR	-2.0
§ Tax	(0.3)		§Suppression of flows from lease	-46.3
	debts
§ Net income	0.4		§Free cash flow	0

V e r y l o w i m p a c t o n P & L	N o i m p a c t o n T F T &
G r o u p c a s h f l o w

IFRS16 lease debts are not included in the net cash flows of ALTEN Group.

They account for € 176.9 M at the end of December 2019 (of which 89% estate, 10% vehicles, 1% others).

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Full-Year Results 2019

SUMMARY

This is another year of strong growth in business for ALTEN. Organic growth - above 10%, gets back to « normal » at the end of 2019.

The Operating Margin of Activity is close to 10% despite ongoing structuring efforts.

Free cash flow (> 6% of revenue) almost doubled as compared to 2018 (+94%);

• despite a high organic growth;
• thanks to a very good control of WCR and low Capex.

ALTEN has self-financedits growth (organic and external) and its dividends. The Group benefits from a sound financial structure (gearing: -7%) to pursue its development.

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Full-Year Results 2019

GROWTH STRATEGY

STRATEGY 2020 - 2022

• A clear positioning on Engineering activities with a high added value, on Consulting and Work packages
• Strengthen our leadership in Design Engineering; enhance development of Process engineering (industry 4.0) and IT Services (Entreprise Services) within a digital environment accounting for more than 80% of ALTEN's total activity.
• Support our clients in their requests for globalisation, transformation and off-shoring
  2,300 x-shore engineers in 2019 è 4 000 in 2022.
• External growth focused on the international development, mainly through add-ons.
• Reach the critical size of 2,000 consultants by targeted country and more than 60% of revenue overseas.

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Full-Year Results 2019

Business growth plan - Progression of engineer headcount

1989 - 2000		2001 - 2019
12 yrs		19 yrs

First WP - Technical Direction

INTL Dvpt

			Acquisitions	+ 8,800
						+
						23,750
				+ 20,750
				Organic in 19 years
			3,000
3,000			30% external growth
TOTAL	3,000			TOTAL	32,550

• 3 growth vectors: - ALTEN Model for organic growth
• • Project and HR management
  • Targeted acquisitions

2020 - 2022

3 yrs

Acquisitions	> 3,500
		+
		>38,500
	> 6 000
	Organic in 3 yrs
32,550

32% external growth

TOTAL

> 42,000

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February 19th 2020 l ALTEN - 2019 Full-Year Results

CONCLUSION

ALTEN foresees to outreach its goal of

42,000 engineers in 2022, without any major acquisition with:

• An Operating margin on activity averaging 10%;
• An international activity accounting for 60% of revenue.

February 19th 2020 l ALTEN - 2019 Full-Year Results

APPENDICES

PROGRESSION OF BUSINESS GROWTH BY REGION

	Q1 2019	Q2 2019	Q3 2019	Q4 2019	FY 2019
P	Published	Organic,	Published	Organic,	Published	Organic,	Published	Organic,	Published	Organic,
AYS	excl. Forex	excl. Forex	excl. Forex	excl. Forex	excl. Forex
		effect		effect		effect		effect		effect
FRANCE	12.5%	12.5%	14.3%	14.3%	10.2%	10.2%	4.3%	4.3%	10.2%	10.2%
INTERNATIONAL	21.9%	12.6%	20.0%	10.9%	20.3%	11.5%	18.5%	9.8%	20.1%	11.2%
NORTH AMERICA	24.8%	16.2%	24.3%	17.7%	25.2%	17.6%	29.5%	20.5%	26.0%	18.1%
GERMANY	16.3%	5.6%	11.8%	3.3%	12.2%	4.1%	11.2%	3.6%	12.8%	4.1%
SCANDINAVIA	22.7%	13.5%	19.0%	8.4%	16.8%	5.3%	14.3%	-1.1%	18.2%	6.4%
SPAIN	46.3%	12.8%	36.8%	4.3%	0.9%	4.5%	7.6%	3.2%	28.4%	5.8%
ITALY	20.3%	20.3%	20.0%	20.0%	22.4%	22.4%	21.6%	21.6%	21.1%	21.1%
ASIA PACIFIC	80.8%	56.4%	61.7%	41.9%	49.4%	31.7%	46.4%	27.9%	57.3%	37.6%
UK	-4.7%	-5.7%	-1.9%	-2.1%	10.2%	11.0%	31.8%	12.1%	9.0%	3.9%
NETHERLANDS	11.6%	11.6%	18.2%	9.8%	15.3%	6.5%	9.4%	0.9%	13.5%	7.0%
BELGIUM	-2.3%	-2.3%	1.7%	1.7%	3.0%	3.0%	0.2%	0.2%	0.6%	0.6%
OTHERS	22.8%	19.4%	17.7%	13.9%	21.2%	17.0%	14.0%	11.2%	19.0%	15.4%
TOTAL	17.5%	12.5%	17.5%	12.4%	15.8%	10.9%	12.1%	7.3%	15.6%	10.7%
February 19th 2020	l Full-Year Results 2019								34

BALANCE SHEET - ASSETS (IN THOUSANDS OF EUROS) (IFRS 16 IN 2019)

ITEM	December 2019	December 2018
Goodwills	535 606	494 125
Right of use	174 012
Intangible assets	8 548	9 703
Tangible assets	31 471	28 267
Investments in associates	25 024	28 901
Non-current financial assets	58 852	45 930
Deferred tax assets	10 382	12 435
NON CURRENT ASSETS	843 895	619 361

Trade receivables

Assets associated with client agreements Other current assets

Current tax assets

Cash and cash equivalents

693 564	626 641
167 059	134 142
68 443	67 174
74 626	93 891
202 550	120 372

CURRENT ASSETS	1 206 243	1 042 220
TOTAL ASSETS	2 050 138	1 661 581

	Audit in progress
February 19th 2020 l	35
Full-Year Results 2019

BALANCE SHEET - LIABILITIES (IN THOUSANDS OF EUROS)	(IFRS 16 IN 2019)
	ITEM	Décembre 2019	Décembre 2018
	Capital	35 864		35 522
	Premiums	60 250		54 375
	Consolidated reserves	853 413		719 804
	Consolidated earnings	164 225		157 869
	SHAREHOLDERS' EQUITY	1 113 752		967 571
	MINORITY INTERESTS	-425		4 863
	Employee benefits	13 743		22 778
	Provisions	11 745		5 889
	Non-current financial liability	3 111		7 246
	Non-current Lease debt	134 128
	Other non-current liabilities	18 171		19 878
	Deferred tax liabilities	476		425
	NON CURRENT LIABILITIES	181 374		56 216
	Provisions	8 807		7 565
	Current financial liabilities	124 864		100 881
	Current lease debt	42 806
	Trade payables	90 119		79 045
	Other current liabilities	367 293		346 427
	Assets associated with client agreements	107 561		92 568
	Current tax liabilities	13 987		6 446
	CURRENT LIABILITIES	755 437		632 932
	TOTAL LIABILITIES	2 050 138		1 661 581
				Audit in progress	36

February 19th 2020 l

Full-Year Results 2019

INCOME STATEMENT (IN THOUSANDS OF EUROS) (IFRS 16 IN 2019)

	ITEM	2019	2018
	NET REVENUE	2 623 990	2 269 885
	Purchase consumed	-224 870	-188 923
	Payroll expenses	-1 861 119	-1 615 171
	External charges	-203 545	-212 720
	Taxes other than on income	-12 220	-10 285
	Depreciation and amortization	-60 415	-15 315
	Other operating income and expenses	-1 051	-3 466
	OPERATING PROFIT ON ACTIVITY	260 771	224 005
	Share based payments	-5 233	-6 173
	OPERATING PROFIT ON ACTIVITY BEFORE EXCEPTIONALS	255 538	217 833
	Non recurrent profit	-17 307	-3 680
	OPERATING PROFIT	238 231	214 153
	Net borrowing costs	-3 026	-1 150
	Other financial income and expenses	-377	-312
	FINANCIAL INCOME	-3 404	-1 462
	Share of earning of equity affiliates	6 105	9 117
	Income tax expense	-77 364	-61 200
	NET OVERALL EARNINGS	163 568	160 608
	PROFIT ATTRIBUTABLE TO MINORITY INTERESTS	656	-2 739
	PROFIT ATTRIBUTABLE TO THE GROUP	164 225	157 869
			Audit in progress
February 19th 2020 l	Full-Year Results 2019		37

CASH FLOW STATEMENT (IN THOUSANDS OF EUROS)	(IFRS 16 IN 2019)
	ITEM	2019		2018
	CASH FLOW		320 348	242 033
	Consolidated net earnings		163 568	160 608
	Earnings from associates		-6 105	-9 117
	Depreciation, provisions and other calculated expenses		74 526	19 990
	Share-based payments		5 233	6 173
	Income tax expense		77 364	61 200
	Capital gains or losses from disposal		-68	352
	Net borrowings costs		3 026	1 150
	Financial cost on update and provisions		2 803	1 677
	Tax paid		-77 133	-60 505
	Change in working capital requirements		-18 787	-82 228
	NET CASH FLOW GENERATED BY ACTIVITY		224 428	99 300
	Acquisition / Disposal on fixed assets		-29 159	-15 273
	Impact of change in scope of consolidation and earn-outs paid		-53 385	-63 389
	NET CASH FLOW ON INVESTMENTS		-82 544	-78 662
	Net financial interest paid		-3 380	-1 207
	Dividends paid to shareholders		-33 445	-33 365
	Capital increase		0	11
	Buy back of shares		1 046	-226
	Repayment of long-term financial debt		-2 008	-421
	Change in current financial liabilities		21 402	50 315
	Change in lease debts		-44 563
	NET CASH FLOW FROM FINANCING OPERATIONS		-60 947	15 107
	CHANGE IN CASH RELATED TO FOREIGN EXHANGE POSITION		1 241	662
	CHANGE IN CASH POSITION		82 179	36 406
	Cash on hand		202 550	120 372
	Bank loans		-119 147	-101 734
	Overdrafts		-8 512	-6 182
	NET CASH POSITION		74 892	12 456		38
February 19th 2020 l Full-Year Results 2019			Audit in progress

ALTEN

2019 Annual results

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