Groupe CRIT : CRIT Annual Report (abstract) 2020

ANNUAL REPORT (ABSTRACT) 2020

Contents

INTRODUCTION	4
1.1	Management and supervisory bodies	6
1.2	Key figures	7
1.3	Profile of Groupe CRIT	8
1.	PRESENTATION OF THE GROUP AND ITS BUSINESS	11
	1.1	Temporary staffing and recruitment, the Group's core business	12
	1.2	The airport services division: growth halted by Covid-19	24
	1.3	Other services: industrial services	30
	1.4	Group organisational structure	33
	1.5	Investment policy	34
	1.6	Risk factors	35
	1.7	Strategy and outlook	39
	1.8	Stock market and shareholders	42
2.	ANNUAL FINANCIAL STATEMENTS	43

2020 Annual Report (Abstract) GROUPE CRIT	3

MESSAGE

FROM THE CHAIRMAN

Dear shareholders,

Crises are pivotal times when strategies are put to the test. This one is no exception. The results reported by Groupe CRIT for 2020 show that the entrepreneurial spirit, the ability to adapt and the sense of responsibility that drive us were extremely powerful assets in dealing with the pandemic. 2021 should be the year of recovery. Our Group is ready.

In this document, we take a look back at 2020, a year marked by a health, economic and social crisis on an unprecedented scale. With the health of all our employees central to our concerns, we acted quickly to ensure continuity of service for our clients and took the necessary cost-cutting measures.

While the early part of the year continued to enjoy high levels of business, our momentum was brought to an abrupt halt by the impact of the pandemic on demand from our main client sectors. Business has been improving steadily since the second half, with the end of the first period of lockdown. That is a great source of satisfaction.

Our results also held up well, with EBITDA of nearly €74 million, representing 4.3% of revenue. This illustrates both the recovery in business and the effects of measures taken to rein in costs.

Lastly, we managed to preserve our robust financial position, in terms of both cash generation and net cash, without sacrificing the fundamentals that will drive our recovery.

In the temporary staffing division, revenue was down 25% compared with 2019. After a poor first half, business improved steadily, both in France and internationally, with revenue down 13.3% in the final quarter. In France, we observed a clear improvement in the second half, with demand increasing in our main sectors. The fourth quarter confirmed this favourable trend. We have not yet returned to normal, but these trends show that the recovery is underway. The preservation of our network was a priority. It was essential for us to maintain the quality of our nationwide network so as not to sacrifice our capacity to rebound.

This extraordinary year was also an opportunity to step up the pace of the Group's digitisation, something we will continue to benefit from once the situation returns to normal. Digitisation is synonymous with greater productivity, better client relationships and heightened attractiveness among temporary employees.

International business, which accounts for more than a quarter of our temporary staffing business, held up better than France within this unprecedented context. Obviously, the consequences of the pandemic and the measures taken by the authorities varied from one country to another. We recorded a good performance in Spain, with the decline limited to 4% over the year and the fourth quarter up nearly 13%.

4	2020 Annual Report (Abstract) GROUPE CRIT

INTRODUCTION

In airport services, revenue was down 55% across the board, in France and internationally. Following its abrupt halt, traffic remained stuck at very low levels throughout 2020, despite an improving trend. We are confident that air traffic will recover by the summer, although this will depend on the opening of borders and the pace of vaccination in all countries.

In both our divisions, despite the impact of the health crisis, our market positions remain sound, allowing us to envisage a swift rebound once economic growth resumes. In 2020, in the temporary staffing division, we once again demonstrated the resilience of our business model. In the airport services division, we showed both our ability to adapt and our responsiveness.

Our fundamentals are sound. Our independence and financial strength, combined with the exemplary commitment and dedication of our employees, give us confidence in our ability to take full advantage of the recovery.

I would like to extend my very warm thanks to the teams for their determination, their commitment and their professionalism throughout 2020.

Last year, we temporarily suspended the dividend to preserve our cash position. This year, we have decided to reinstate the payment of the dividend for 2020 so as to thank our shareholders for their confidence, and will propose the payment of a dividend of €0.5 per share at the coming Annual Shareholders' Meeting.

Claude Guedj

Chairman and Chief Executive Officer

2020 Annual Report (Abstract) GROUPE CRIT	5