Groupe CRIT : First half results 2020

H1 2020

RESULTS

GROUP PROFILE IN 2019

2 BUSINESS DIVISIONS

Groupe

Crit

CRIT GROUP

2019 REVENUE : €2.5bn EBITDA : €170m

TEMPORARY STAFFING & RECRUITMENT

€2.0bn revenue(-2.2% organic growth)

(81.8% of total revenue)

Top 20 worldwide (1)

600 branches

More than 30,000 clients 263,000 temp. workers

1.4 million temp. assignments in 2019

MULTI-SERVICES

€480m revenue (+4.5%)

(18.2% of total revenue)

Airport services

No.1 in France

Exclusive licences

146 airlines

+466,000 aircraft movements

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

H1 2020 results		2

H1 2020

• Major covid-19 impact
• Resilience of operating margins
• • Revenue : €814m down 33.9%
  • Positive Ebitda : €20m
  • Ebitda margin : 2,5%
  • Net profit : €(11)m
  • €611m equity
  • €274m net cash

Groupe

Crit

	H1 2020 results		3

COVID 19 :

Direct impact on business

		Change in revenue
			(€m)
	Quarter		Semester
			1 232.5
			-33.9%
	-13.2%		814.1
582.4	650.0	-52.6%
505.8
			308.3

Q1

Q2

S1

2019 2020

Groupe

Crit

Revenue breakdown

by division

Multi-services

15%

Temporary staffing & recruitment

85%

A downturn in demand starting in March

	H1 2020 results		4

Temporary staffing & recruitment

COVID -19

• Major impact in France
• International more resistant

TEMPORARY STAFFING & RECRUITMENT

• Major Covid-19 impact in France
• International more resistant

Temp. Staffing & recruitment

Temporary staffing & recruitment revenue

(€m)
Quarter		Semester
2019	2020	1 011.4

-31.4%

-13.6%

693.6

477.8 412.8 533.5 -47.4%

280.8

Q1

Q2

H1

At constant exchange rate :

• Q1 2020 -14.1%
• Q2 2020 -47.5%

Geographical breakdown

International

28%

France

72%

	H1 2020 results		6

TEMPORARY STAFFING IN FRANCE

Major Covid-19 impact in Q-2

Temporary staffing revenue - France

(€m)

Quarter

Semester

768.2

-34.7%

-15.7%

501.7

359.2 302.8 409.0 -51.4%

199.0

Q1

Q2

H1

2019 2020

Temp. Staffing & recruitment

72%

of temporary staffing division

Second quarter :

• Low point in April
• Progressive recovery over the months

	H1 2020 results		7

TEMPORARY STAFFING IN FRANCE

• Sector particulary affected by the crisis
• Gradual recovery over the months

Temp staffing & recruitment

• Market decreasing by -30.7% in FTEs, 1st half of 2020 (baromètre Prism'emploi)

Low point between March 15 and March 30 : -70%

• CRIT : Temp. employees decreasing by -32%, 1st half of 2020

Low point in April at -67%

			March 17		May 11
		beginning of the lock-down	End of the lock-down
	Jan.	Feb.	March	April	May	June	July	August	Sept.
Weeks	1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34	35 36

0%
-10%
-20%	-20%
-30%
-40%
-50%
-60%
-70%	-67%

	H1 2020 results		8

TEMPORARY STAFFING IN FRANCE

Impacting all sectors

Sector breakdown and change in revenue

(France)

	% of rev.	Change	Incl.	Incl.
	H1 2020	2020/2019	change Q1	change Q2
Industry	45%	-38%	-20%	-55%
Building	14%	-40%	-16%	-62%
Services	41%	-28%	-10%	-44%
TOTAL	100%	-34.7%	-15.7%	-51.4%
TOTAL excl. auto		-29.6%	-9.1%	-47.3%

Revenue breakdown by type of customer(1)

SMEs

47%

(H1 2019 : 46%)

Major accounts (1)

53%

(H1 2019 : 54%)

Temp. Staffing & recruitment

	Contributing sectors
	Automotive
impacted	Q2 decreasing by -80%
Q2 decreasing by -61%
	S1 decreasing by-65%
most	Building
S1 decreasing by -40%
The	Metallurgy
Q2 decreasing by -72%
	S1 decreasing by -48%
	Transport
resistant	Q2 decreasing by -32%
S1decreasing by -19%
	Commerce
most	Q2 decreasing by -34%
S1 decreasing by -22%
The	Food industry

	Q2 decreasing by -12%

S1 decreasing by -6%

	(1) Major accounts ≥ €1m/an	H1 2020 results		9

CRIT : EARLY ADJUSTMENT MEASURES

Temp. Staffing & recruitment

To protect our employees and temporary workers

During the lock-down

• Setting up home working
• Online trainings

After the lock-down

• Reopening branches to the public
• Health and safety prevention campaigns among permanent and temporary employees

To ensure service continuity - digital at the heart of the relationship

Close to our clients

• Commercial proximity maintained
• Digitalization of customer relationship (crit job, crit online, crit one…)

Close to our temp. staff

• Maintaining proximity: website, apps, telephone platforms, social networks
• Digitalization of recruitment and administration to facilitate remote exchanges (crit-job, application my-crit,…)

To adapt the cost structure and secure cash consumption

Mesures implemented

• Partial activity
• Close supervision of the workforce and the network
• Enhanced focus on client risk and receivable collection

H1 2020 results 10

TEMPORARY STAFFING IN FRANCE Strong impact on all sectors

Crit : very strong resilience of Ebitda margin

Temp. Staffing & recruitment

France

		Change
Revenue	Ebitda margin	Ebitda margin
Change H1 2020	H1 2020	vs. H1 2019

Crit organic	-34.7%	4.3%	-110bps
Excl. automotive	-29.6%
Adecco (organic ATD)	-29.0%	3.3%	-260bps
Manpower	-31.0%	1.9% (1)	-290bps
Randstad (ATD)	-25.0%	1.7%	-410bps
Synergie (constant scope)	-28.0%	4.2%	-200bps
Market	-31.0%
(Prism'emploi - Gross revenue)

Source : companies - published numbers press releases Growth rate at constant exchange rate

(1) Operating profit margin

H1 2020 results 11

INTERNATIONAL : TEMPORARY STAFFING

More resistant

Temp. Staffing & recruitment

Temporary staffing revenue - International

(€m)

Quarter

Semester

243.2 -21.1%

-7.3%191.8

118.6 110.0 124.5 -34.3%

81.8

Q1

Q2

H1

2019 2020

Half year revenue breakdown

by geographic area

ROW

11%

Spain

29%

United States

60%

28% of the temporary staffing division

First half revenue

at constant exchange rate

-22,4%

H1 2020 results 12

INTERNATIONAL : TEMPORARY STAFFING

• Limited decline in United States
• Significant resistance in Spain

Temp. Staffing & recruitment

H1 revenue

(€m)

Spain

United States

156.1 -25.7% (1)

116.0

-11.8%

63.9 56.4

H1 2019	H1 2020	H1 2019	H1 2020
		(1) At constant exchange rate H1 2020 -27,5%
Significant resistance in Spain	US : limited decline
with positive impact of the	with rapid adaptation of fixed
food industry		costs

H1 2020 results 13

Multi-services

Airport services heavily impacted

AIRPORT SERVICES

HEAVILY IMPACTED MARKET

Airport services H1 revenue

(€m)

184.5

-48.8%

94.4

H1 2019

H1 2020

(1) Movements of planes

Airport services

74%

of multi-services division

(79% in H1 2019)

Paris Aéroport (CDG-Orly) :

traffic (1) H1 2020 down

-55.9%

Q1 : -10.1%

Q2 : -82.3%

H1 2020 results 15

AIRPORT SERVICES

Action plan implemented vs. Covid-19

Airport services

H1 measures

• Implementation of partial activity (according to specific framework per country)
• Workforce adaptation depending on country legislation
• Expenses reduction
• Termination of fixed-term, recruitment, temporary staffing contracts and subcontracting

H2 measures

France

• Partial activity maintained as air transportation still eligible to government's initial partial activity benefit
• « APLD » to be implemented
• Negotiation of a « collective performance agreement »

International

• Continuous adjustment of staff according to legislation and changes in air traffic

H1 2020 results 16

Results

• Resilience of the results
• Strengthening of the financial structure in an exceptional context

ACTIVITY

Groupe

Crit

Change in half-year revenues

(€m)

			change
			H1 2020/	Organic	Forex	Perimeter
	H1 2019	H1 2020	H1 2019	change	impact (1)	impact (2)
Temp. Staffing & recruitment	1 011.4	693.6	(31.4)%	(31.7)%	0.3%	0.0%
Airport services	184.5	94.4	(48.8)%	(48.9)%	0.0%	0.0%
Other services	49.0	33.2	(32.2)%	(32.2)%	0.0%	(0.0)%
Inter-segment eliminations	(12.4)	(7.1)	(42.4)%	(42.4)%	0.0%	(0.0)%
GROUP TOTAL	1 232.5	814.1	(33.9)%	(34.2)%	0.3%	0.0%

1. The foreign exchange impact are calculated by applying to the year's foreign exchange revenue, the exchange rate of the prior year.
2. The perimeter impacts are calculated by restating the revenue:

• 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 in N-1, from the revenue contribution of the previous financial year up to the date of transfer.

H1 2020 results 18

EBITDA (1) BY BUSINESS UNIT

	H1 2019	H1 2020
	€m	% of rev.	€m	% of rev.
Temp. Staffing	55.9	5.5%	27.2	3.9%
France	41.5	5.4%	21.6	4.3%
International	14.4	5.9%	5.6	2.9%
Multi-services	22.2	9.5%	(7.0)	(5.5)%
Airport services	18.1	9.8%	(6.1)	(6.5)%
Other	4.1	8.4%	(0.9)	(2.7)%
GROUP TOTAL	78.1	6.3%	20.2	2.5%

Groupe

Crit

(1) Current operating income before depreciation and amortisation

H1 2020 results 19

INCOME STATEMENT

€m	H1 2019	H1 2020
REVENUES	1 232.5	814.1
Operating expenses	(1 150.8)	(791.5)
Provision	(3.6)	(2.4)
EBITDA	78.1	20.2
EBITDA/REVENUE	6.3%	2.5%
Depreciation	(20,3)	(21.7)
CURRENT OPERATING INCOME	57.7	(1.5)
COI/REVENUE	4.7%	(0.2)%
Other income and expenses	0.8	(0.3)
OPERATING INCOME	58.6	(1.8)
Income from equity affiliates	(0.3)	(1.0)
Financial results	(0.6)	(0.9)
EARNINGS BEFORE TAX	57.7	(3.7)
Income tax	(25.3)	(7.1)
NET INCOME	32.4	(10.8)
NET INCOME (GROUP SHARE)	32.5	(10.1)

Groupe

Crit

H1 2020 results 20

Groupe

BALANCE SHEET	Crit

				June 2020
€m	June 2019	Dec. 2019	June 2020	vs. dec. 2019
Goodwill	158.7	159.5	159.4	(0.1)
Net fixed assets	222.5	212.6	198.7	(13.9)
Working capital	82.9	56.1	(5.7)	(61.8)
Provisions	(48.6)	(43.2)	(43.6)	(0.4)
Tax payable and deferred tax	3.5	15.7	27.9	12.2
CAPITAL EMPLOYED	419.0	400.7	336.7	(64.0)
Shareholders' equity	575.6	622.3	610.6	(11.7)
Net financial debt	(156.6)	(221.6)	(273.9)	(52.3)
CAPITAL	419.0	400.7	336.7	(64.0)

H1 2020 results 21

Groupe

WORKING CAPITAL	Crit

				June 2020
€m	June 2019	Dec. 2019	June 2020	vs. dec. 2019
Inventories and work in progress	2.1	2.3	2.4	0.0
Trade receivables	522.1	463.2	307.1	(156.1)
Trade payables	(44.3)	(37.7)	(30.6)	7.1
Social security and tax liabilities	(395.8)	(360.4)	(292.8)	67.6
Other receivables and payables	(1.3)	(11.3)	8.2	19.5
WORKING CAPITAL	82.9	56.1	(5.7)	(61.8)

H1 2020 results 22

NET FINANCIAL DEBT

Groupe

Crit

				June 2020
€m	June 2019	Dec. 2019	June 2020	vs. dec. 2019
Gross financial debt	170.1	140.4	140.4	0.0
Net cash	(120.0)	(224.9)	(337.4)	(112.5)
NET FINANCIAL DEBT	50.2	(84.5)	(197.0)	(112.5)
Competitiveness and Employment Tax Credit	(206.8)	(137.1)	(76.9)	60.2
CICE
NET FINANCIAL DEBT AFTER DEDUCTION OF	(156.7)	(221.6)	(273.9)	(52.3)
CICE

H1 2020 results 23

CASH FLOW STATEMENT

€m	H1 2019	H1 2020
Net results including minority interests	32.4	(10.8)
Restatement of non cash items	18.7	71.4
Cost of financial debt	2.1	1.5
Income tax	25.3	7.1
CASH FLOW BEFORE NET COST OF DEBT AND INCOME	78.5	69.2
TAX
Change in working capital	(24.7)	62.3
Tax paid	(14.9)	(7.4)
CASH FLOW FROM OPERATIONS	38.9	124.1
Cash flow from investing activities	(3.9)	(3.3)
Cash flow from financing activities	(31.6)	(7.6)
Change in exchange rate effect	-	(0.8)
CHANGE IN CASH	3.4	112.4

Groupe

Crit

H1 2020 results 24

Outlook

• Temporary staffing : a gradual recovery
• Airport services : full recovery will take time

TEMPORARY STAFFING & RECRUITMENT

Towards a gradual recovery

• Positive signs of economic recovery
• Uncertainty related to the Covid-19 evolution

Temp. Staffing & recruitment

France

Recovery in line with the market

• Temp. FTEs CRIT July / August : -26%
• Temp. FTEs CRIT September (first two weeks) : -22%

International

United States :

a gradual recovery

• Temp. FTEs CRIT July / August : -26%

Espagne :

a fast recovery

• Temp. FTEs CRIT July / August : -10%

H1 2020 results 26

AIRPORT SERVICES
Airlines traffic significantly impacted	Airport services

Wordwide airlines traffic: Full recovery will take time

Traffic Paris Aéroport in CDG and Orly (in movements of planes), source ADP

> July :	-77.1%
> August :	-53.1%
> YTD traffic (8 months)	-56.8%

Airport services division (France and International)

• H2 trending on 40% volume

H1 2020 results 27

SHARE CHARACTERISTICS

Shareholder structure

at 30/06/2020

Treasury shares

1.4%

Float

24.2%

Family-held

74.4%

Groupe

Crit

Share price movements (rolling 12-month)

ISIN code	FR0000036675
Market compartment	Euronext B
Number of shares	11,250,000
Average daily trading volume since 1 year	2,426
Share price at 21/09/2019	€52.40
Capitalisation	€590m
Change since 1 january	-28.8%
Change over 5 years	+11.02%

Source : ABC Bourse	H1 2020 results		28