Alten — Earnings Release 2021

Sep 22, 2021

PRESS RELEASE

Paris, September 22nd 2021 5:40pm

BUSINESS IN FIRST HALF 2021

• RETURN OF ORGANIC GROWTH IN FIRST HALF: +3.4%
• RESTORED OPERATING MARGIN: 9.8% OF REVENUE
• 4 ACQUISITIONS IN FRANCE AND OVERSEAS

€ million	June 2020	June 2021	YoY change
Revenue	1,240.4	1,395.2	+12.5%
 France	491.1	505.4	+2.9%
 Overseas	749.3	889.8	+18.8%
Operating Profit on Activity	75.2	137.1	+82.4%
As % of revenue	6.1%	9.8%
Operating Profit	68.7	124.2	+80.9%
As % of revenue	5.5%	8.9%
Net profit, Group share	60.6	89.3	+47.2%
As % of Revenue	4.9%	6.4%
Free Cash flow (1)	134.9	50.4	‐62.6%
As % of Revenue	10.9%	3.6%
Headcount	36,150	38,500	+6.6%

Audit in process

ACTIVITY AT END OF JUNE: +12.5%

Revenue reaches €1,395.2 M growing by 12.5% as compared to June 2020. On a like‐for‐like basis, the activity grows by 3.4% (‐ 0.1% in France; 5.7% outside France).

All business activities are in strong growth on the second quarter 2021, partly due to the favourable base effect from the second quarter of 2020. Automotive and Civil Aeronautics stay neverthelessimpacted by the Health Crisis. Rail/Naval, Defense & Security, Life Sciences and the other industries have more than 10% growth.

All geographical areas are growing except Germany and Sweden, where the weight of Automotive and/or Civil Aeronautic sectors is important.

France is stable. It keeps being impacted on those sectors, but shows good performances on other sectors.

OPERATING PROFIT ON ACTIVITY: 9.8% OF REVENUE

Operating Profit on Activity reaches €137.1 M, i.e. 9.8% of revenue. The strong recovery on the second quarter and cost efficiency have allowed to get back earlier than expected to pre‐Health Crisis operating margin levels.

OPERATING PROFIT: 8.9% OF REVENUE

Operating Profit reaches €124.2 M (i.e. 8.9% of revenue). It includes €7.5 M of shared‐based payments (non cash) and €5.4 M of non‐recurring costs mainly associated with restructuring cost, acquisition fees and earn‐out.

NET PROFIT, GROUP SHARE: 6.4% OF REVENUE

Net income reaches €89.3 M, after taking into account the financial result (‐€1.2 M) and tax expenses (‐€33.7 M).

NET CASH OISITION: €162.9 M

The working capital requirement (WCR) increase of €76.6 M is mainly due to the strong activity recovery in the second half generating a substantial increase of the accounts receivable. After income tax and Capex, Free Cash Flow reaches €50.4 M i.e. 3.6% of revenue.

Net cash position equals €162.9 M, after taking into account the acquisitions (‐€51.5 M), other financial flow (‐€2.3 M) and dividends (‐€33.9 M).

Gearing equals ‐12.7%.

EXTERNAL GROWTH: 4 ACQUISITIONS IN FRANCE AND OVERSEAS

ALTEN has finalised 4 acquisitions in 2021 :

• In UK/Finland: 1 company specialised in Consulting and Agile Training (Revenue: €9.5 M, 65 consultants)
• In Germany: 1 company specialised in Engineering Consulting (especially in the Automotive sector) (Revenue: €10 M, 90 consultants)
• In France: 1 company specialised in the transformation and digitalisation of Information System (Revenue: €37 M, 280 consultants)
• In UK: 1 company specialised in Life Sciences (Revenue: €20 M, 180 consultants)

OUTLOOK FOR 2021:

Automotive and Civil Aeronautics remain impacted by the Health Crisis but are growing again.

Organic growth recovery occurred earlier than anticipated but its perennity and intensity will obviously depend on the evolution of the health crisis.

If the context remains unchanged, ALTEN should obtain in 2021 a satisfying organic growth and operating margin on activity.

ALTEN will keep reinforcing in strategic sectors and activities by pursuing itstargeted external growth policy in order to speed its development, mainly overseas.

Next publication: October 27th after market closing: 2021 Q3 results

About ALTEN

For more information: www.alten.com/investisseurs / Journalists' details: alten@hopscotch.fr

As a European Leader in Engineering and Technology Consulting (ETC), ALTEN carries out design and research projects for Technical and IT divisions of major clients in industry, telecoms and services.

ALTEN's stock is listed in compartment A of the Euronext Paris market (ISIN FR000001946); it is part of the SBF 120, the IT CAC 50 index and MIDCAP100, and is eligible for the deferred Settlement Service (SRD).

APPENDIX TO PRESS RELEASE :

Definition of alternative performance measures and reconciliation with IFRS standards

The ALTEN Group uses alternative performance measures especially selected to follow up on its operational activities. The Group has chosen these measures as they supply additional information allowing the users of periodic financial information to have a comprehensive understanding of the Group's performance. Such alternative performance measures are complementary to IFRS standards.

Revenue growth on a like‐for‐like basis (i.e. organic growth)

Growth on a like‐for‐like basis (and constant exchange rate) is calculated excluding the effects of exchange rate variations and the variations of the consolidation scope on a chosen period.

Exchange rate impacts are measured by converting the revenue of the period with the average exchange rate from the previous period.

Scope variation impacts are measured excluding acquisitions, revenue of the period and for transfers, revenue of the previous period, in order to create a scope which is identical to the previous period. This alternative measure enables to identify the real performance of the Group in terms of activity on the chosen period.

This alternative measure enables to identify the real performance of the Group in terms of activity on the chosen period.

€M	Revenue H1 2020	Revenue H1 2021	% change
Revenue on a like‐for‐like basis	1,232.7	1,274.7	3.4%
France	484.1	483.6	‐0.1%
International	748.6	791.1	5.7%
Scope variation	7.7	134.5	10.2%
France	7.0	21.8	3.0%
International	0.7	112.7	15.0%
Exchange rate impact		‐14.0	‐1.1%
France		‐	‐
International		‐14.0	‐1.9%
Group revenue	1,240.4	1,395.2	12.5%
France	491.1	505.4	2.9%
International	749.3	889.8	18.8%

Evolution of business H1 2021

Operating Profit on Activity

Operating Profit on Activity is the operating income before taking into account the costs on share‐based payments, results from significant transfers of assets, goodwill impairment, as well as other significant and uncommon elements considered as miscellaneous fees and operational activities.

Since payments on share‐based compensation have noticeable heterogeneous annual changes, the tables included in our financial statements show the operational performance of the Group and make it possible to compare with previous or selected periods.

Net cash position

Net debt ‐ as defined and used within the Group, stands for cash flow and assimilated elements of cash flow less gross financial debt (bank loans and other assimilated financial debts).

Free Cash‐Flow

Free cash flow corresponds to net cash flow from operating activities minus net operating investments and net cash flow from financing activities related to payments of leasing debts.