Groupe CRIT : Annual Results 2019

2019

ANNUAL RESULTS

Group profile

TWO BUSINESS DIVISIONS

GROUP CRIT IN 2019

REVENUE: €2.5bnEBITDA: €170m

TEMPORARY STAFFING & RECRUITMENT		MULTI-SERVICES
€2.0bnrevenue (-2.2%organic growth)		€480mrevenue (+4.5%)
(81.8%of total revenue)		(18.2%of total revenue)

19thlargest global staffing firm (1)No.1independent in France 600branches

• 30,000clients
  263,000temp. workers

1.4 milliontemp. assignments in 2019

Airport services

No.1in France

Exclusive licences

146airlines

> 466,000aircraft movements

(1) Source: Staffing Industry Analysts largest global staffing firms 2019

2019 annual results 2

SOLID RESULTS

• €2.5bnrevenue
• €170mEBITDA
• 6.8%EBITDA margin
• €73mnet income
• €622.3mequity
• €221.6mnet cash

Revenues are presented after application of IFRS 16 unless indicated otherwise

2019 annual results 3

Temporary staffing & recruitment

• Strong resilience in France
• International revenue of €500m

Temp. staffing & recruitment

HIGH LEVEL OF ACTIVITY

Annual revenue of over €2bn

81.8%of total revenue

Temporary staffing & recruitment revenue

	(€m)
2 026	2 062	2 034
		-1.4%

201720182019

Organic growth -2.2%and -1.9%working-day adjusted (WDA)

Geographical breakdown

International

24.4%

France

75.6%

2019 annual results 5

Temp. staffing & recruitment

STRONG RESILIENCE IN FRANCE

Temp. staffing & recruitment

revenue - France (€m)

1 526

1 569

1 537

-2.1%

201720182019

WDA organic growth -1.7%

76%

of Temp. Staffing revenue

Thriving business despite:

• Market slowdown from second half
• Decline in automotive industry demand (2.7%impact on YoY growth)

20bpimprovement in EBITDA margin (1)

(1) Comparable data before IFRS 16 restatement

2019 annual results 6

Temp. staffing & recruitment

STRONG RESILIENCE IN FRANCE

		France	2019	CAGR
		revenue growth	2014-2019
		Crit WDA organic growth	-1.7%	+6.8%
		Adecco (WDA)	-3.0%	+2.6%
		Manpower	-1.2%	+3.4%
		Randstad (WDA)	-1.0%	+3.2%
		Synergie (constant	+4.6%	+6.4%
		consolidation scope)

Source: corporate - press release reported figures Growth at constant exchange rates

2019 annual results 7

Temp. staffing & recruitment

STRATEGY CONTINUED

6

Digitisation

5

CSR commitments

1

Network coverage & client proximity

2

Service offering

scale-up

3

Diversity in industries

and customers

4

Greater job security for temporary staff

2019 annual results 8

FLEXIBLE NETWORK SERVING THE MOST BUOYANT EMPLOYMENT CATCHMENT AREAS

Temp. staffing & recruitment

1

Network coverage & client proximity

Optimisation of France network

419branches

(incl. 49"on sites" branches)

20transfers

13openings

An extensive network of branches serving the most buoyant employment catchment areas

Change in number of branches since 2016

406 419

380

354

13

19

40

49

2016 2017 2018 2019

France "On sites" branches

419

branches in France in 2019

2019 annual results 9

FURTHER PROGRESS IN RECRUITMENT AND EXPANSION OF CRIT INSIDE OFFERING

2

Temp. staffing & recruitment

Service offering	Emphasis on specialised areas
>Energy, aeronautics, events, etc.
scale-up

Development of the CRIT INSIDE offering

• 19new "inside"since the start of the year
  2019 annual target reached: +50%new "inside" vs 2018 2020 target ≈ 20new "inside"

Development of recruitment services

>2019 annual target reached: 30%revenue growth

2019 annual results 10

GROWTH OF 1%(1)

EXCLUDING AUTOMOTIVE

3

Travail temporaire & recrutement

Diversity in industries

and customers

SME/key account mix maintained

Sector breakdown and revenue growth 2019

(France)

	% of rev.	Change
	2019	2019/2018
Industry	45%	-5.6%
Building	16%	+2.0%
Services	39%	-0.1%
TOTAL	100%	-2.1%

1%growth excluding automotive

in a market down 1.1%

Breakdown of revenue

by client segment 2019 (2)

SMEs

44%

Key accounts

56%(3)

1. WDA
2. 2018: Key accounts (56%); SMEs (44%)
3. Key accounts ≥ €2 million/year

2019 annual results 11

OUR PRIORITIES:

CDII CONTRACTS & TRAINING

4

Greater job security for temporary staff

Travail temporaire & recrutement

No. of CDII open-ended temp. employment contracts

2 460

x3.7

1 200

1 000

665

	2016	2017	2018	2019

Ramp-up of CDII open-ended temporary employment contracts:

• 2,460CDII contracts signed by 31/12/2019
• Target of2,000CDII contracts exceeded
• Sustained development:X3.7in 4 years

Training temporary employees to improve qualifications and employment potential

>16,000temporary employees trained in 2019

2019 annual results 12

Travail temporaire & recrutement

STRONG COMMITMENTS

5

CSR commitments

2019 commitments recognised…

• GaiaIndex 2019
• Echos Executives 2019Best Recruitment Agencyranking
• Rated "Excellent"in Décideurs magazine 2019 HR - Consultancy Firm ranking
• RatedLeader in Diversity 2020 (Financial Times)

… and considerably strengthened

• Member ofCorporate Association for a More Inclusive Economy
• Signatory of"PAQTE National"charter in favour of disadvantaged neighbourhoods
• Signatory of a national agreement withEPIDE
• to promote the employment ofunder-qualified youth
• Signatory ofSeine-Saint-DenisÉgalitécharter to promote regional employment

2019 global

ranking

71/230

Our commitments and certification

• Adhering member of UN Global Compact
• ISO 9001 certified (quality management system)
• ISO 14001 certified (environmental management system)
• Listed in Gaia Index since 2017

2019 annual results 13

Travail temporaire & recrutement

STRONG COMMITMENTS

February 2019: Crit joins the Corporate Association for a More Inclusive Economy (1)

3 priorities	Our initiatives in 2019
>Inclusion through training and apprenticeship:	>	June 2019:
61,000young people on work-study programmes at companies		Crit, sponsor and joint coordinator of Seine-
in the Association		Saint-Denis Collectif 93 programme
>Inclusive procurement policy favouring local SMEs:	>	September 2019:
increase procurement from SMEs focusing on rural development		"2nd chance work-study" forum
areas, priority urban districts and disability-friendly companies		at the Salon Jeunes d'Avenir, Paris-La-Villette

>Develop solutions for disadvantaged persons: design a suitable service and product offering

1. Founded on 18 December 2018, this association currently has 35 corporate members committed to furthering social progress These companies account for 1.5 million employees and €100bn of purchases in France

Members of the association: Accenture France &, Benelux, Accor, Adecco, ADP, AG2R La Mondiale, Axa, BNP Paribas, BPCE Group, Carrefour, Casino, Covea, Crédit Mutuel Alliance Fédérale, Crédit Agricole, Groupama, Group CRIT, Danone, EDF, Elsan, Engie, International SOS, Kering, Korian, L'Oréal, ManpowerGroup France, Microsoft France, Orange, Renault, Rexel, Schneider Electric, Sodexo, Sonepar, Suez, Système U, Veolia and Vinci

2019 annual results 14

Temp. staffing & recruitment

ECOSYSTEM ESTABLISHED

6

Digitisation

Learning management system

Branches

		Digitisation of customer relations
		Paperless environment
		Productivity
	Sourcing and loyalty
	Main Group
	website
	Commercial visibility	SME platform
	Employer brand
	Temp. employees	Businesses
	Candidates

2019 annual results 15

INTERNATIONAL

REVENUE OF €500M

Temp. staffing & recruitment

Temp. staffing & recruitment revenue - International (€m)

500 493 497

+0.9%

Geographical breakdown

ROW 10%

Spain 27%

USA 63%

24.4%of temp. staffing revenue

Down 2.5%at constant exchange rates 40bpimprovementin EBITDA margin (1)

201720182019

(1) Comparable data before IFRS 16 restatement

2019 annual results 16

UNITED STATES: CONTINUATION OF A VALUE-BASED STRATEGY

Temp. staffing & recruitment

Annual revenue

- United States (US$m)

372 366 352

314

-3.7%

> Historically tight job market

> Positive price impact from services upgrade

> Sharp improvement in EBITDA margin:

up 60bp(2)

2016	2017	2018	2019
-2.7%(1)	-0.5%(1)	-2.2%(1)	-3.7(1)

(1) Constant consolidation scope

(2) Comparable data before IFRS 16 restatement

2019 annual results 17

Temp. staffing

SPAIN: SOLID BUSINESS IN A & recruitment

MORE CHALLENGING ENVIRONMENT

Annual revenue - Spain	Solid business
	(€m)
			> Challenging basis for comparison:
	132	131	4years of strong growth (14%CAGR 2014-2018)
123	>Slowdown in economic growth:

GDP growth of 2.0%(1)in 2019 vs 2.4%forecast

-0.8%

201720182019

		(1) Source: INE	2019 annual results 18

Airport services

AIRPORT SERVICES:	Airport services
STRONG GROWTH DRIVEN BY FRANCE

Airport services revenue

(€m)

		International
		France			+7.1
					%(1)
			356			381.1
					94,5
315	93	+1.6	%
88					286,6
226	263	+9.0	%

Breakdown of airport services revenue

(%)

International

25%

(2018: 26%)

France

75%

(2018: 74%)

2017	2018	2019

(1) At constantconsolidation scope and exchange rates +5.6%

2019 annual results 20

LEADERSHIP CONSOLIDATED IN FRANCE, Airport services

INTERNATIONAL GROWTH

FRANCE

• Revenue up7%to over €381m(up5.6%at constant consolidation scope)
• 310,000flights handled in 2019
• 11contracts signed since 1 January 2019, including renewal of major long-term contract (subcontracting) with Air France at CDG 2 (20,000flights/year) and 5new long-term contracts including a major contract with Qatar Airways at CDG 1
• Full-yearimpact of Cargo Roissyand Paris-le-Bourgetcontracts

INTERNATIONAL

• Revenue up1.6%to €94.5m(up 0.6%at constant consolidation scope and exchange rates)

2019 annual results 21

Results

• Strong performances in growth and profit margins
• Impact of IFRS 16

IFRS 16: PRINCIPLES AND IMPACT

• Effective 1 January 2019, using the simplified retrospective approach (i.e. without restatement of previous accounting periods)
• Balance sheet Impact
• • Present value of future lease payments recorded under financial debt
  • Aright-of-use for the same amount accounted for as fixed assets
• Income statement impact
• • Rent eliminated by counterpart:
  • • debt repayment
    • financial interest
  • Theright-of-use asset is depreciated over the term of the lease
• Cash flow impact

Rents replaced by debt repayment

2019 annual results 23

REVENUE

Revenue growth

(€m)

						Forex (1)	Perimeter (2)
	2018		2019	2019 vs 2018	Organic
Temp. staffing &	2,062.4		2,034.4	-1.4%	-2.2%	0.8%	0.0%
recruitment
Airport services	355.9		381.1	7.1%	5.6%	0.3%	1.2%
Other services	103.7		99.2	-4.4%	1.8%	0.0%	-6.2%
Inter-segment	(23.8)		(26.2)	10.0%	10.5%	0.0%	-0.5%
eliminations
GROUP TOTAL	2,498.2		2,488.5	-0.4%	-1.0%	0.7%	-0.1%

(1)The foreign exchange impact are calculated by applying to the year's foreign exchange revenue, the exchange rate of the prior year.

1. The perimeter impacts are calculated by restating the revenue:
2. • on the one hand, from the contribution of the entities acquired during the year and of the entities acquired during the previous year until the anniversary date of the acquisition,
   • on the other hand, for the entities sold in the year, from the revenue contribution of the previous year for which the entities are no longer consolidated in N and for the entities sold inN-1, from the revenue contribution of the previous financial year up to the date of transfer.

2019 annual results 24

EBITDA (1)BY BUSINESS UNIT

		Comparable (2)			IFRS 16 (2)
	2018	2019	2019	Impact
	€m	% of rev.	€m	% of rev.		€m	% of rev.	€m	% of rev.
Temp. staffing &	106.5	5.2%	110.3	5.4%	119.4	5.9%	9.1	0.5%
recruitment
- France	81.3	5.2%	83.1	5.4%	88.7	5.8%	5.6	0.4%
- International	25.2	5.1%	27.2	5.5%	30.7	6.2%	3.5	0.7%
Multi-services	42.5	9.3%	42.1	8.8%	50.6	10.5%	8.5	1.7%
- Airport services	34.8	9.8%	35.4	9.3%	43.0	11.3%	7.6	2.0%
- Other	7.8	7.5%	6.7	6.8%	7.6	7.6%	0.9	0.8%
GROUP TOTAL	149.0	6.0%	152.5	6.1%	170.1	6.8%	17.6	0.7%

1. Current operating income before depreciation and amortisation
2. IFRS 16 is applied from 1 January 2019 by using the simplified retrospective approach without restatement of the previous accounting period

For the purposes of comparison, the 2019 figures are presented before the application of IFRS 16 as are the 2018 figures presented as the comparable

2019 annual results 25

INCOME STATEMENT

					Comparable (1)	IFRS 16 (1)
				€m	2018	2019	2019		Impact
				REVENUE	2,498.2	2,488.5	2,488.5		-
				Operating expenses	(2,341.5)	(2,329.4)	(2,311.8)		17.6
				Provisions	(7.7)	(6.6)	(6.6)		-
				EBITDA	149.0	152.5	170.1		17.6
				EBITDA/REVENUE	6.0%	6.1%	6.8%		0.7%
				Depreciation	(23.3)	(24.7)	(41.7)		(17.0)
				CURRENT OPERATING INCOME	125.7	127.8	128.3		0.5
				COI/REVENUE	5.0%	5.1%	5.2%		0.1%
				Other income and expenses	0	0.8	0.8		-
				OPERATING INCOME	125.7	128.6	129.2		0.6
				Income from equity affiliates	0.1	(0.4)	(0.4)		-
				Financial results	3.8	0.1	(0.8)		(0.9)
				EARNINGS BEFORE TAX	129.6	128.3	127.9		(0.4)
				Income tax	(38.8)	(54.9)	(54.8)		0.1
				NET INCOME	90.8	73.4	73.2		(0.2)
				NET INCOME (GROUP SHARE)	90.9	73.3	73.0		(0.3)

(1) IFRS 16 is applied from 1 January 2019 by using the simplified retrospective approach without restatement of the previous accounting period

For the purposes of comparison, the 2019 figures are presented before the application of IFRS 16 as are the 2018 figures presented as the comparable

2019 annual results 26

								BALANCE SHEET
							EQUITY
					ASSETS
							DEBTS
	IFRS 16	RIGHT OF USE	FINANCIAL
	Impact		ASSET	DEBTS			Comparable (1)			IFRS 16 (1)
													Dec.-19
	€m					Dec.-18	Dec.-19	vs Dec.-18	Dec.-19	Impact
	Goodwill					158.3	159.5		1.2		159.5	-
	Net fixed assets			155.3	144.7		(10.6)		212.6	67.9
	Working capital			58.1	56.1		(2.0)		56.1	-
	Provisions			(44.9)	(43.2)		1.7		(43.2)	-
	Tax payable and deferred tax	8.0	15.6		7.6		15.7	0.1
	CAPITAL EMPLOYED	334.8	332.7		(2.1)		400.7	68.0
	Shareholders' equity			557.6	622.6		65.0		622.3	(0.3)
	Net financial debt after deduction of CICE	(222.8)	(289.9)		(67.1)		(221.6)	68.3
	CAPITAL EMPLOYED	334.8	332.7		(2.1)		400.7	68.0

(1) IFRS 16 is applied from 1 January 2019 by using the simplified retrospective approach without restatement of the previous accounting period

For the purposes of comparison, the 2019 figures are presented before the application of IFRS 16 as are the 2018 figures presented as the comparable

2019 annual results 27

WORKING CAPITAL

						Dec.-19
		€m	Dec.-18	Dec.-19		vs Dec.-18
				2.3
		Inventories and work in progress	2.1		0.2
		Trade receivables	480.7	463.2		(17.5)
		Trade payables	(45.7)	(37.7)		8.0
		Social security and tax liabilities	(383.6)	(360.4)		23.2
		Other receivables and payables	4.7	(11.3)		(16.0)
		WORKING CAPITAL	58.1	56.1		(2.0)

2019 annual results 28

NET FINANCIAL DEBT

		Comparable (1)			IFRS 16 (1)
				2019
€m	Dec.-18	Dec.-19	vs 2018	Dec.-19	Impact
Gross financial debt	104.1	72.2		(31.9)		140.4	68.3
Net cash	(116.6)	(224.9)		(108.3)		(224.9)	-
NET FINANCIAL DEBT	(12.5)	(152.7)		(140.2)		(84.5)	68.3
CICE	(210.3)	(137.1)		73.2		(137.1)	-
NET FINANCIAL DEBT AFTER	(222.8)	(289.9)		(67.1)		(221.6)	68.3
DEDUCTION OF CICE

(1) IFRS 16 is applied from 1 January 2019 by using the simplified retrospective approach without restatement of the previous accounting period

For the purposes of comparison, the 2019 figures are presented before the application of IFRS 16 as are the 2018 figures presented as the comparable

2019 annual results 29

									Impact	CASH FLOW STATEMENT
							IAS 17	IFRS 16	IFRS 16
							Depreciation			Depreciation
							CASH FROM			CASH FROM
							OPERATIONS			OPERATIONS
							Debt repayment			Debt repayment
							FINANCING FLOWS			FINANCING FLOWS
											Comparable (1)		IFRS 16 (1)
							CHANGE IN CASH			CHANGE IN CASH
					€m						2018	2019		2019	Impact
					Consolidated net income including minority interests	90.8	73.4		73.2	(0.2)
					Restatement of non cash items	2.7	63.5		80.2	16.7
					Cost of financial debt				2.9	2.7		3.6	0.9
					Income tax						38.8	54.9		54.8	(0.1)
					CASH FLOW BEFORE NET COST OF DEBT	135.2	194.5		211.8	17.3
					AND INCOME TAX
					Change in working capital				(8.2)	2.3		2.3	-
					Tax paid						(30.7)	(29.1)		(29.1)	-
					CASH FLOW FROM OPERATIONS	96.3	167.7		185.0	17.3
					Cash flow from investing activities	(16.1)	(8.1)		(7.8)	0.3
					Cash flow from financing activities	(73.9)	(51.3)		(68.9)	(17.6)
					CHANGE IN CASH				6.3	108.3		108.3	0.0

(1) IFRS 16 is applied from 1 January 2019 by using the simplified retrospective approach withoutrestatement of the previous accounting period

For the purposes of comparison, the 2019 figures are presented before the application of IFRS 16 as are the 2018 figures presented as the comparable

2019 annual results 30

Outlook

2020

IMPACT OF COVID-19

Exceptional and immediate impact on business

Outlook unclear on end of crisis

								First
						Initial		restriction
		Lockdown	Market
						outbreak	First cases	measures
						in China	in France	in France	begins	downturn
					Dec.-19	Feb.-20	12 March-	17 March-	End March-
								20	20	20
							France market (1)	France market (1)
		Temporary					Jan.-Feb.	60-80%decline in business
				-6.3%(FTE)	(FTE) depending on sector
		staffing &
		recruitment			CRIT France	CRIT
							Jan.-Feb. revenue	End March 2020 trend:
							-6.2%	75%upswing
							(+0.5%excl. automotive)
							France market	France market
							Jan.-Feb. decline in	Closure of European
	Airport services				ADP air traffic: 0.3%	air borders
						90%decline in Air France traffic
							CRIT France
							CRIT France
							Jan.-Feb. revenue
							+6.6%	End March 2020 trend:
									90%upswing

(1) Source: Prism'emploi

2019 annual results 32

SWIFT AND APPROPRATE MEASURES

To protect our employees and temporary workers

• All branches closed to the public
• Teleworking introduced for all administrative and support functions
• All temporary employees notified of prevention measures

To ensure continuity of services for clients

• Roll-outof service continuity plan among clients

To adapt Group operations to the situation

Reducing the cost base

• Short-timeworking measures
• Deferred payment of specific charges (URSSAF social security, rent, loan repayments)

Debt collection measures

• Debt collection:chase-up measures intensified
• Procurement of credit insurance coverage

2019 annual results 33

STRONG CAPACITY TO WEATHER THE CRISIS

Temporary staffing & recruitment

Airport services

Highly resilient variable cost base model

Swift adjustment of cost base

Strong capacity for adaptation due to:

• Significant proportion offixed-term and temporary employment contracts (25% of workforce)
• Significant proportion of subcontracting (20% of revenue)

Airport closures: business hit hard

• Introduction ofshort-time working across the whole sector

Extremely robust balance sheet and borrowing capacity enabling the Group to face the challenges ahead

At 31/12/2019
Cash and cash equivalents	€231m
Available CICE tax credit	€137m
Undrawn credit facilities	€211m(incl. €111mbacked by receivables)
Undrawn overdraft facilities	€36m
	€615M

2019 annual results 34

DIVIDEND MAINTAINED: €1/SHARE

• Proposal for upcoming Annual Shareholders' Meeting on 5 June 2019
• Dividend of €1/share
• Payment of dividend on 26 June 2020

2019 annual results 35

SHARE CHARACTERISTICS

Shareholder structure

at 29/02/2020

Treasury shares

1.4%

Float

24.2%

Family-held

74.4%

Share price movements (rolling 12-month)

ISIN code	FR0000036675
Market compartment	Euronext B
Number of shares	11,250,000
Average daily trading volume	3,295
since 1 January 2020
Share priceat 19/03/2020	€42.7
Capitalisation	€474m
Change since 1 January 2020	-27.4%
Change over 3 years	-42.6%

Source: ABC Bourse

2019 annual results 36