Applus Services S A : 245 25/02/2020 Applus+ 2019 Full Year Results Presentation

Applus+ Group

FY 2019

Results Presentation

25 February 2020

Disclaimer

This document may contain statements that constitute forward looking statements about Applus Services, SA ("Applus+" or "the Company"). These statements are based on financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations, which refer to estimates regarding, among others, future growth in the different business lines and the global business, market share, financial results and other aspects of the activity and situation relating to the Company.

Such forward looking statements, by its nature, are not guarantees of future performance and involve risks and uncertainties, and other important factors that could cause actual developments or results to differ from those expressed or implied in these forward looking statements. These risks and uncertainties include those discussed or identified in fuller disclosure documents filed by Applus+ with the relevant Securities Markets Regulators, and in particular, with the Spanish Market Regulator, the Comisión Nacional del Mercado de Valores.

Applus+ does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that the projected performance, conditions or events expressed or implied therein will not be realized.

This document contains summarised information or information that has not been audited. In this sense this information is subject to, and must be read in conjunction with other publicly available information including if necessary any fuller disclosure document published by Applus+.

Nothing in this presentation should be construed as a profit forecast.

2

Results Presentation FY 2019

HIGHLIGHTS

FINANCIAL REVIEW

BUSINESS REVIEW

SUMMARY

STRATEGY UPDATE & OUTLOOK

Fernando Basabe

Chief Executive Officer

Highlights of the Year

• Mid single digit organic revenue growth contributed by all divisions
• Good margin increase leading to double digit growth in Operating Profit and EPS
• Three acquisitions with €13 million revenue p.a. and strongly margin accretive
• Auto Irish contract renewed for another 10 years
• FY Results:
• • • Revenue of €1,777.9 million up 6.1% (organic1 +5.0%)
    • Operating profit2 of €197.1 million up 10.3% (organic1 +7.9%)
    • Operating profit2 margin of 11.1%, up 42 bps (organic1 +29 bps)
    • Adjusted2 free cash flow of €187.4 million up 16.6%
    • Earnings per Share2 of €0.76, up 11.5%
  • Board proposes a dividend of €0.22 per share, 47% increase over previous year

1. Organic is at constant exchange rates and based on prior year proforma figures including IFRS16
2. Adjusted for Other Results, amortisation of acquisition intangibles and the increases based on prior year proforma figures including IFRS16

4

Results Presentation FY 2019

HIGHLIGHTS

FINANCIAL REVIEW

BUSINESS REVIEW

SUMMARY

STRATEGY UPDATE & OUTLOOK

Joan Amigó

Chief Financial Officer

FY 2019. Revenue Bridge

EUR Million

+6.1%

Mid single digit organic revenue growth

6

FY 2019. Adjusted Operating Profit Bridge

EUR Million	10.3%

IFRS 16

(*)

Double digit growth with 42 bps margin improvement

(*) FY 2018 Figures are Proforma including IFRS 16	7

FY 2019. Summary Income Statement

EUR Million	Excluding IFRS 16
							Including IFRS 16
				FY			IFRS 16			FY
			2019	2018	Change		2019	2018		2019	2018 (*)		Change
					Proforma
	Revenue	1,777.9	1,675.9	6.1%					.9	1,675.9	6.1%
	Adj. Operating Profit(1)	188.9	170.8	10.6%		8.2	7.9		197.1	178.7	10.3%
	Adj.Op.Profit margin	10.6%	10.2%	+ 43 bps				11.1%	10.7%		+ 42 bps
	PPA Amortisation	(59.1)	(59.2)					(59.1)	(59.2)
	Other results	(7.2)	(6.9)					(7.2)	(6.9)
	Operating profit	122.6	104.8	17.0%		8.2	7.9		130.8	112.7	16.1%
	Finance result	(16.2)	(17.3)		(7.7)	(7.5)	(23.9)	(24.8)
	Refinancing Costs	0.0	(3.9)					0.0	(3.9)
	Profit before tax	106.4	83.5	27.4%		0.5	0.4		106.9	83.9		27.4%
	Income taxes	(30.2)	(23.4)			(0.2)	(0.2)		(30.4)	(23.6)
	Net Profit	76.2	60.2	26.7%		0.3	0.2		76.6	60.4	26.8%
	Minorities	(20.9)	(19.0)					(20.9)	(19.0)
	Net Profit Group	55.4	41.2	34.4%		0.3	0.2		55.7	41.4	34.5%
	Adjusted Net Profit Group	108.3	97.2	11.4%		0.3	0.2		108.6	97.4	11.5%
	EPS in €	0.39	0.29	34.4%					0.39	0.29	34.5%
	(2)		0.76	0.68	11.4%					0.76	0.68	11.5%
	Adjusted EPS in €

1. Adjusted Op. Profit is stated before amortisation of acquisition intangibles, restructuring and transaction & integration costs
2. EPS is adjusted for Other Results and amortisation of acquisition intangibles with the related tax impact

(*) FY 2018 Figures are Proforma including IFRS 16	8

FY 2019. Cash Flow

EUR Million
		Excluding IFRS 16				Including IFRS 16
			FY				IFRS 16
			2019	2018		2019	2018			(*) Change
	Adjusted EBITDA (1)	240.9	218.0		55.6	52.4		9.7%
	Increase in working capital	0.1	(27.7)
	Capex	(57.6)	(50.4)
	Adjusted Operating Cash Flow	183.4	139.9		55.6	52.4		24.3%
	Cash Conversion rate	76.1%	64.2%
	Taxes Paid	(41.3)	(24.0)
	Interest Paid	(10.2)	(7.5)
	Adjusted Free Cash Flow	131.8	108.4		55.6	52.4		16.6%
	Extraordinaries & Others	(4.9)	(8.0)
	Applus+ Dividend	(21.5)	(18.6)
	Dividends to Minorities	(23.8)	(14.3)
	Operating Cash Generated	81.6	67.5		55.6	52.4		14.4%
	Acquisitions	(35.7)	(43.8)
	Cash b/Changes in Financing & FX	45.9	23.7		55.6	52.4
	Changes in financing	(31.2)	(14.8)	(55.6)	(52.4)
	Treasury Shares	(3.0)	(3.6)
	Currency translations	1.1	(2.3)
	Cash increase	12.8	3.1		-	-

1. Adjusted EBITDA is stated as Operating Profit before depreciation, amortisation and Other results

(*) FY 2018 Figures are Proforma including IFRS 16	9

FY 2019. Net Debt - as defined by bank covenant1

EUR Million

DEC 2018

DEC 2019

IFRS 16

(131.8)

NET DEBT/EBITDA(*)

NET DEBT/EBITDA (*)

Including IFRS 16

Excluding IFRS 16

Net debt reduced by 47.2M€

Covenant is at 4.0x defined at Frozen GAAP (excluding IFRS 16)

1. LTM EBITDA includes proforma annual results from acquisitions
   (1) Stated at annual average rates
   (2) Others includes Extraordinaries, Dividends paid to minorities, Applus Dividend and other items

10

Results Presentation FY 2019

HIGHLIGHTS

FINANCIAL REVIEW

BUSINESS REVIEW

SUMMARY

STRATEGY UPDATE & OUTLOOK

Fernando Basabe

Chief Executive Officer

FY 2019. Splits by Division, End Market and Geography

Revenue by Division	Revenue By Geography

Labs 5%	Energy &
*5%	Industry 60%
IDIADA 13%	*60%
*13%

Auto 22%

*22%

Adj. Op. Profit by Division

Labs 6%*5%

Energy &

IDIADA 13%	Industry
*13%	40% *40%

Auto 41%

*42%

* FY 2018

(1) Revenue from China 1.2%

Middle East &
Africa 10%	Spain 23%
(1)	*11%	*22%
Asia Pacific
11%
*10%
LatAm
11%
*10%
North		Rest of
America		Europe
19% *20%		26% *27%
Revenue By End Market
Others 14%	O&G Opex 25%
	*13%
Aerospace 3%	*25%

*3%

Construction 5%

*4%

Power 9%

*9%

Automotive	O&G Capex
OEM 13%
*13%	9%*11%

Statutory Vehicle

Inspection 22%*22%

12

Energy & Industry Division (I)

	Revenue		Adj.Op. 40%
	60%	Profit
EUR Million

FY 2019 Revenue			FY 2019 Adj. Op. Profit
+4.4%	+9.1%

• Good revenue growth despite a low Q4 due to tough comp (+11.5% Q4 2018)
• Margin improvement due to cost control, stable pricing and operational leverage
• Strong growth in Mediterranean (18% of division revenue), Asia Pac (14%) and LatAm (11%). Northern Europe (17%) back to growth this year, but Africa-Middle East (15%) was down due to continued reduction in a large Angola contract
• North America (25%) was down due to the decrease in O&G Capex services demand, despite a good performance in O&G Opex services and Aerospace

13

Energy & Industry Division (II)

REVENUE (M€)

• Power, Construction, Aerospace, Mining, Telecom (42% of division revenue) high single digit organic growth in the year benefiting from geographic expansion of these services

• O&G Capex
• O&G Opex
• Power, Construction, Aerospace, Mining & Telecom

CAGR 14-19 Focus

+7% Develop & Expand

	Oil & Gas Opex (43%) performed well in 2019	+1%	Low growth
	Oil & Gas Capex (15%) was down in 2019 but positioned to	-17%	Opportunistic
	benefit from any market recovery

14

5%6%

Laboratories Division

Adj.Op.

Revenue

EUR Million

Profit

FY 2019 Revenue		FY 2019 Adj. Op. Profit
+21.3%	+31.8%

• Double-digitorganic revenue and profit growth with margin up significantly across all business lines
• Seven acquisitions made over the last 3 years with €19m revenue, all acquired at single digit EBITDA multiples and accretive margins. Acquisition momentum and scale expected to accelerate
• Organic build-out and further acquisitions to create regional networks of laboratories giving customers enhanced service and supporting growth

15

Automotive Division (I)

EUR Million

FY 2019 Revenue

+3.8%

	Revenue	Adj.Op.
22%	Profit
		41%

FY 2019 Adj. Op. Profit

+7.3%

• Good underlying growth and excellent margin improvement
• New contracts ramped-up in Uruguay, Argentina, Ecuador and Chile
• Irish contract renewed (no re-tenders lost in last 10 years), to start in July under new conditions
• Acquisition of ITV Canary Islands with €4m revenue expected to close in March
• Washington with €7.7m revenue in 2019 terminated

16

Automotive Division (II)

• Low single digit revenue growth in Spain. Most of the regions growing with Canary Islands, Galicia and Madrid leading contributors
• Northern Europe flat. Growth in Ireland offsetting the decrease in the Nordics
• USA low single digit growth with good performance in all contracts
• LatAm strong performance in Costa Rica, Uruguay, Argentina and Chile. Slow ramp up of some Ecuador contracts

17

Auto - Renewals and Opportunities expected 2020-2021

2020		2021

Renewals (1)

Opportunities

Buenos Aires Prov.

15.7

July

Connecticut

7.4

May

Georgia

4.4

Dec

Andorra

1.3

May

Aragón

5.3

Dec

Healthy pipeline of opportunities mostly in US and LatAm

Strong track record in new and renewed programmes

(1) estimated annual revenue in €m

18

18

IDIADA Division

13%13%

Adj.Op.

RevenueProfit

EUR Million

FY 2019 Revenue			FY 2019 Adj. Op. Profit
+12.4%	+8.5%

• Double digit organic revenue growth led by electric and autonomous vehicles, ADAS (advance driver assistance systems), WLTP (EU emission standard) and outsourcing
• Investments in new tracks in Spain and China, driving simulators and a passive safety testing lab in Frankfurt will add capacity to sustain growth
• Margin decrease mainly due to faster depreciation of assets as the current contract term ends in 2024

19

Results Presentation FY 2019

HIGHLIGHTS

FINANCIAL REVIEW

BUSINESS REVIEW

SUMMARY

STRATEGY UPDATE & OUTLOOK

Fernando Basabe

Chief Executive Officer

Summary of 2019

• A successful year - second consecutive year of meeting/exceeding the 2018 Strategic Plan targets with all divisions contributing





Strong cash generation

Double digit EPS growth and significant increase in the proposed dividend

• Well positioned for continued organic revenue growth, improving margin, strong cash flow and acceleration in acquisition spending

21

Results Presentation FY 2019

HIGHLIGHTS

FINANCIAL REVIEW

BUSINESS REVIEW

SUMMARY

STRATEGY UPDATE

& OUTLOOK

Fernando Basabe

Chief Executive Officer

Update on Strategic Plan targets

Division Target (2018-2020)

Actual 2018-2019(1)

Energy

&

Industry

Labs

AUTO

Idiada

Organic

Revenue

Adjusted Op. Profit

Organic

Revenue

Adjusted Op. Profit

M&A

Organic

Revenue

Adjusted Op. Profit

Tenders

Organic

Revenue

Adjusted Op. Profit

Average Annual Mid Single Digit growth

Recover 100 bps in the period 2018-2020

Annual organic revenue growth of Mid Single Digit

Margin to increase by 20-30 bps per annum

Acquisitions to expand footprint and service portfolio

Organic revenue from existing contracts to increase at low single digit

Margin to increase > 200 bps in 2018, then maintain

Continue strong renewal track record and new programmes

Annual organic growth of high single digits

Margin to remain in 12% range

3.7%		
		
Up 37 bps
		
10.9%
		
Up 340 bps
		
4 acquisitions made in last
2 years with €14m revenue
at a margin of 30%
		
4.7%
		
Up 420 bps
		
Ireland renewed and 3
contracts awarded
		
9.2%
		
12.1%

 Slightly below  Met  Exceed

(1) Revenue is average annual growth over 2 years and margins exclude IFRS 16 impact

23

23

Update on Strategic Plan targets

Group

Target (2018-2020)

Actual 2018-2019(1)

Applus

Organic

Revenue

Adjusted operating Profit

Operating Cash Flow

Leverage

Dividends

M&A

Annual growth of mid single digit

Margin improvement of 70-100 bps in 2018 and 20- 30 in 2019 and 2020

Cash conversion rate above 70%

Below 3x

Maintain dividend at 20% of Adjusted Net profit

Acquisition capacity in the range of €150 million per annum

5%	
		
	Up 160 bps
		
	70%
		
	2.0x
		
	29%(2)
		
	80M€

		 Mid single digit organic revenue growth at constant FX
Outlook		 Margin to improve 10-30 bps
for 2020		 Additional growth through acquisitions

 Slightly below  Met	 Exceed
(1)	Revenue is average annual growth over 2 years and margins exclude IFRS 16 impact	24
(2)	Dividend to be proposed to shareholders	24

www.applus.com

Environmental, Social and Governance

First CSR Report in 2015 following the Global Reporting Initiative (GRI)

UN Global Compact Member since 2017 and Advanced Level from 2018. Follow the 10 Principles UN Sustainable Development Goals Adopted 9 since 2017 as a framework for CSR goals

Governance

adherence to CNMV (89%)

culture of compliance

Corp. Governance road by Non Executive Director

26

FY 2019. Adjustments to Statutory results

EUR Million

		FY 2019				FY 2018
	Adj.	Other	Statutory			Other	Statutory
EUR Million		Adj. Results
Results	results	results		results	results
Revenue	1,777.9	0.0	1,777.9		1,675.9	0.0	1,675.9
Ebitda	296.5	0.0	296.5		218.0	0.0	218.0
Operating Profit	197.1	(66.3)	130.8		170.8	(66.0)	104.8
Net financial expenses	(23.9)	0.0	(23.9)		(17.3)	(3.9)	(21.2)
Profit Before Taxes	173.2	(66.3)	106.9		153.5	(70.0)	83.5
Income tax	(43.7)	13.4	(30.4)		(37.3)	14.0	(23.4)
Non controlling interests	(20.9)	0.0	(20.9)		(19.0)	0.0	(19.0)
Net Profit	108.6	(52.9)	55.7		97.2	(56.0)	41.2
Number of Shares	143,018,430		143,018,430		143,018,430		143,018,430
EPS, in Euros	0.76		0.39		0.68		0.29
Income Tax/PBT	(25.2)%		(28.4)%		(24.3)%		(28.0)%

Proforma +/- % Adj. Results

FY 2018

PROF

1,675.9 6.1%

270.4 9.7%

178.7 10.3%

(24.8)

153.9 12.5%

(37.5)

(19.0)

97.4 11.5%

143,018,430

0.68 11.5%

(24.4)%

27

FY 2019. Revenue and Ad. Op. Profit by Division

EUR Million

				Growth
REVENUE	ACTUAL 2019	Organic	Acquisitions	Disposals	FX	Total	ACTUAL 2018
Energy & Industry	1,059.3	3.2%	0.5%	(1.5)%	2.2%	4.4%	1,014.3
Laboratories	93.0	11.5%	9.0%	0.0%	0.8%	21.3%	76.6
Auto	385.4	4.8%	0.0%	0.0%	(1.0)%	3.8%	371.3
Idiada	240.1	11.4%	0.8%	0.0%	0.2%	12.4%	213.7
Total Revenue	1,777.9	5.0%	0.9%	(0.9)%	1.1%	6.1%	1,675.9
Adj. Op. Profit	ACTUAL 2019			Growth			PROFORMA
Organic	Acquisitions	Disposals	FX	Total	2018
Energy & Industry	89.1	5.8%	0.8%	(0.9)%	3.4%	9.1%	81.6
Laboratories	13.5	13.0%	17.5%	0.0%	1.3%	31.8%	10.2
Auto	92.0	8.1%	0.0%	0.0%	(0.8)%	7.3%	85.8
Idiada	30.6	6.5%	1.6%	0.0%	0.4%	8.5%	28.2
Holding	(28.1)						(27.1)
Total Adj. OP. Profit	197.1	7.9%	1.5%	(0.4)%	1.3%	10.3%	178.7

28

FY 2019. Organic Revenue Growth by quarter and division

Revenue	Q1	Q2	Q3	Q4	FY
Energy & Industry	6.0%	5.1%	3.5%	(1.2)%	3.2%
Laboratories	16.6%	11.9%	9.5%	9.3%	11.5%
Auto	9.1%	0.7%	3.2%	6.8%	4.8%
IDIADA	9.6%	13.8%	12.7%	9.7%	11.4%
Total Organic @ Constant rates	7.6%	5.5%	4.8%	2.3%	5.0%
Inorganic	0.2%	(0.2)%	(0.4)%	0.3%	0.0%
Total Applus @ constant rates	7.8%	5.3%	4.4%	2.6%	5.0%
FX	1.2%	1.4%	0.6%	1.4%	1.1%
Total Applus	9.0%	6.7%	5.0%	4.0%	6.1%

29

Q4 2019. Revenue by Division and Adj. Op. Profit

EUR Million

				Growth
REVENUE	ACTUAL 2019						ACTUAL 2018
	Organic	Acquisitions	Disposals	FX	Total
Energy & Industry	269.8	(1.2)%	1.0%	(1.1)%	1.5%	0.2%	269.3
Laboratories	26.0	9.3%	6.5%	0.0%	1.0%	16.8%	22.2
Auto	89.8	6.8%	0.0%	0.0%	2.1%	8.9%	82.4
Idiada	62.5	9.7%	0.0%	0.0%	0.3%	10.0%	56.8
Total Revenue	448.1	2.3%	1.0%	(0.7)%	1.4%	4.0%	430.8
Adj. Op. Profit w IFRS 16	48.6	3.8%	1.4%	(0.9)%	2.9%	7.2%	45.4
Adj. Op. Profit wo IFRS 16	46.5	3.7%	1.4%	(0.9)%	3.0%	7.2%	43.4

30

Q4 & FY 2019. Summary Income Statement

EUR Million

		Q4				FY
	2019	2018	Change		2019	2018	Change
	Proforma		Proforma
Revenue	448.1	430.8	4.0%		1,777.9	1,675.9	6.1%
Adj. Operating Profit	48.6	45.4	7.2%		197.1	178.7	10.3%
Adj.Op.Profit margin	10.9%	10.5%	+ 32 bps	11.1%	10.7%	+ 42 bps

PPA Amortisation	(14.8)	(14.8)
Other results	(4.4)	(5.4)
Operating profit	29.4	25.2	16.9%
Finance result	(7.1)	(6.2)
Refinancing Costs	0.0	0.0
Profit before tax	22.3	19.0	17.6%
Income taxes	(6.8)	(4.8)
	15.5	14.2	9.4%
Net Profit
Minorities	(5.1)	(5.0)
		9.2	13.1%
Net Profit Group	10.4
Adjusted Net Profit Group	26.3	25.9	1.4%
		0.064	13.1%
EPS in €	0.073
Adjusted EPS in €	0.184	0.181	1.4%

(59.1) (59.2)

(7.2) (6.9)

130.8 112.7 16.1% (23.9) (24.8)

0.0 (3.9)

106.9 83.9 27.4% (30.4) (23.6)

76.6 60.4 26.8% (20.9) (19.0)

55.7 41.4 34.5%

108.6 97.4 11.5%

0.39	0.29	34.5%
0.76	0.68	11.5%

31

FY 2019. Currency Exposure

% Revenue by Actual Currency

21%	20%
4%	4%
4%	4%
25%	25%		OTHER (2)
	CAD
			AUD
			USD (1)
46%	47%		EUR

FY 2019

FY 2018

1. Includes currencies pegged to USD
2. None above 4%

	Average FX Exchange rates vs Euro
	JAN - DEC	JAN - DEC	Change
	2019	2018
USD	1.120	1.182	5.6%
AUD	1.610	1.579	(2.0)%
CAD	1.486	1.529	2.9%

32

FY 2019. Statutory Cash Flow

EUR Million
	FY
		2019	2018
	Profit Before taxes	106.9	83.5
	Non cash items	179.7	127.8
	Increase in working capital	4.0	(28.3)
	Taxes Paid	(42.3)	(24.0)
	Operating Cash Flow	248.3	159.1	56.0%
	Capex	(57.6)	(50.4)
	Business combination	2.0	3.8
	Acquisitions/Disposals of subsidiaries	(35.7)	(43.8)
	Cash Flow from Investing activities	(91.3)	(90.3)
	Dividends to Minorities	(23.8)	(14.3)
	Applus+ Dividend	(21.5)	(18.6)
	Interest paid	(10.2)	(7.5)
	Changes in financing	(89.8)	(22.9)
	Capital increase	0.0	0.0
	Cash Flow from Financing activities	(145.3)	(63.4)
	Currency translations	1.1	(2.3)
	Cash Increase / (Decrease)	12.8	3.1

33

FY 2019. Balance Sheet

EUR Million

	FY 2019	FY 2018			FY 2019	FY 2018
Goodwill	609.3	591.3		Equity	824.5	810.9
Other intangible assets	474.3	518.9		Long Term Provisions	26.9	23.4
PPA	406.3	465.2		Bank borrowings	545.9	606.5
Other intangible assets	68.0	53.8		Leasing Liabilities	124.5	0.0
Rights of use	152.9	0.0		Other financial liabilities	26.0	24.5
Tangible assets	226.7	220.6		Deferred Tax Liabilities PPA	100.0	113.2
Investments accounted for using the equity method	0.7	0.7
	Deferred Tax Liabilities Others	37.4	37.8
Non current Financial Assets	30.0	27.5		Deferred Tax Liabilities	137.4	151.0
Deferred Tax Assets	65.5	66.7		Other non current liabilities	29.5	37.1
Total Non-Current Assets	1,559.4	1,425.7		Total Non-Current Liabilities	890.2	842.5
				Short term provisions	2.5	1.8
Inventories	8.5	8.1		Bank borrowings	59.2	10.0
Trade & Other receivables	424.1	402.6		Leasing Liabilities	45.7	0.0
Corporate Income Tax assets	23.4	19.0		Trade & Other payables	330.0	307.9
Current financial assets	11.9	9.7		Income Tax Liabilities	13.8	14.8
Cash & Cash equivalents	145.2	132.3		Other current liabilities	6.6	9.5
Total Current Assets	613.1	571.7		Total Current Liabilities	457.8	344.0
Total Assets	2,172.5	1,997.4		Total Equity & Liabilities	2,172.5	1,997.4

34

Alternative Performance Metrics

Applus' financial disclosures contain magnitudes and metrics drafted in accordance with International Financial Reporting Standards (IFRS) and others based on the Group's disclosure model referred to as Alternative Performance Metrics

• EBITDA, measure of earnings before interest, taxes, depreciation and amortisation
• Operating Profit, measure of earnings before interest and taxes
• Adjusted measures are stated before other results
• Other results are those impacts corrected from the relevant measures to provide a better understanding of the underlying results of the Group, for example: amortisation of acquisition intangibles, restructuring and transaction & integration costs
• PPA correspond to the Purchase Price Allocation referred to acquisitions, allocated to intangible assets and amortised
• Capex, realized investments in property, plant & equipment or intangible assets
• Proforma figures for 2018 include IFRS 16 estimated impact
• Operating Cash Flow, operating cash generated after capex investment and working capital variation

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Alternative Performance Metrics

• Free Cash Flow, operating cash generated after capex investment, working capital variation and tax & interest payments
• Net Debt, current and non current financial debt, other institutional debt less cash. As per bank covenant definition, calculated at annual average exchange rates
• Leverage, calculated as Net Debt/LTM Ebitda as per bank covenant definition
• EPS, Earnings per share
• NDT, Non destructive testing
• P.A., per annum
• FX, Foreign exchange
• LTM, Last twelve months

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