Aubay — Earnings Release 2023

Mar 20, 2024

Boulogne-Billancourt, March 20, 2024

2023 annual results:

Operating margin from ordinary activities: 8.9% Net income attributable to owners of the parent: €33.4 million Record net cash: €93 million Dividend maintained at €1.20 per share

In € thousands	2023	2022	Change
Revenue	534,116	513,547	+4.0%
Operating profit from ordinary activities	47,385	53,168	-10.9%
As a % of revenue	8.9%	10.4%
Cost of performance shares	(1,328)	(1,606)
Other operating income and expenses	(3,728)	(1,478)
Operating profit	42,329	50,084	-15.5%
Financial income/(expense)	1,047	(681)
Tax (expense)/income	(9,968)	(13,774)
Net income from consolidated companies	33,408	35,629	-6.2%
As a % of revenue	6.3%	6.9%
Net income attributable to owners of the parent	33,408	35,629
Headcount	7,779	7,819	-0.5%
Net cash	92,992	83,410	+11.5%

Aubay's Board of Directors, which met on March 20, 2024 under Chairman Christian Aubert, approved the statutory and consolidated financial statements for 2023. The financial statements have been audited by the Statutory Auditors and the auditors' report will be issued once the procedures required to publish the company's Universal Registration Document have been completed.

2023 ended with a solid performance, demonstrating the Group's ability to adapt and seize opportunities in a more challenging market environment, particularly in the second and third quarters, after the exceptional momentum of 2021 and 2022.

Annual revenue amounted to €534.1 million, up 4.0% in purely organic terms, with dynamic growth of 6.5% in France (to €280.5 million) and 1.4% internationally (to €253.6 million), with Italy in the process of stabilizing its business.

Operating margin from ordinary activities at 8.9%, at the higher end of the forecast range

Against this backdrop, the management resources deployed by the Group and the achievement of a slightly better-than-expected productivity rate enabled operating margin from ordinary activities to be at the top end of the range revised in October.

At 8.9%, it remains among the highest on the market. Aubay thus demonstrates its resilience confronted with external impacts, maintaining a good ratio between the evolution of its sales prices and its average salary in a more normalized environment.

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Operating profit: €42.3 million

Operating profit came to €42.3 million, including the cost of free shares, down on the previous year at €1.3 million (vs. €1.6 million in 2022), and an exceptional restructuring provision in Italy of €1.6 million.

Net margin maintained at 6.3%

Group financial loss improved with a growth of €1.0 million after a loss of €0.7 million in 2022, including €1.8 million in financial income from cash investments and €0.8 million in financial expenses, half of which relates to IFRS 16 debts. Tax rate fell from 28% to 23% across the Group. Net income attributable to owners of the parent, came to €33.4 million, down by a moderate 6.2% compared to last year's record level net income (€35.6 million).

Financial position

Cash flow generated by the Group's activities reached an exceptional €41.7 million (vs. €33.9 million in 2022), enabling net cash to exceed the Group's expectations, at €93.0 million, after dividend payments of €15.9 million and the cancellation of treasury shares for the amount of €8.6 million (reminder: 239,850 cancelled shares on December 28, 2023).

Proposed dividend of €1.20 per share maintained

In light of this solidly maintained performance and the Group's high cash-assets, the Board of Directors has decided to propose an unchanged dividend of €1.20 per share in respect of 2023 to the Annual General Meeting to be held on May 14, 2024, representing a payout ratio of 47% of net income. Taking into account the interim dividend of €0.50 per share paid on November 10, 2023, the balance to be paid will amount to €0.70 per share.

CSR strategy guided by an ambitious roadmap

Aubay has delivered another year of responsible and sustainable growth and improved all of its roadmap indicators:

These excellent performances have been recognized by the main rating agencies:

2023 Score : 78/100	Platinum medal
2023 Score : 68/100
2023 Score : 4.5/5 2023 Score : B score	Ranked 27th/295 Vs C in 2022

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Outlook for 2024

Aubay continues to evolve in a market marked by the cautiousness of its major customers, particularly in the banking sector. There are a high number of projects, but cost management remains a key issue for several of the Group's strategic customers.

In this demanding market, 2024 performance will nevertheless benefit from a positive calendar effect (+2 days on average), and the Group will maintain a constant focus over its productivity and the preservation of its margins.

Against this backdrop, our ambition for 2024 remains to post revenue of between €534 and €550 million and an operating margin of between 8.5% and 9.5%.

Aubay will publish its 2024 first-quarter revenue on April 24, 2024 after the close of trading.

Glossary

Organic revenue growth: This refers to growth calculated for a constant scope of activity for a given period, excluding revenues from companies that were acquired or sold during the period. As Aubay conducts most of its business in the euro zone, any impact from changes in exchange rates is minimal.

	2023
Organic growth	+4.0%
Impact of changes in scope	-
Growth as reported	+4.0%

Operating profit from ordinary activities: this indicator corresponds to operating profit before the cost of free shares and other income and expenses that are unusual, abnormal or infrequent and that are booked separately in order to facilitate understanding of an entity's recurring operating performance.

Operating margin from ordinary activities: this indicator, which is expressed as a percentage, is the ratio of operating income from ordinary activities to revenue.

Net debt or net cash (excluding rental liabilities): this indicator represents the difference between an entity's cash and debt. If the result is negative, it is referred to as net debt. If it is positive, it is referred to as net cash.

About Aubay

Aubay is a digital services company working alongside some of the biggest names in the Banking, Finance, Insurance, Manufacturing, Energy, Transport and Telecoms sectors. With 7,779 employees in seven countries at December 31, 2023 (France, Belgium, Luxembourg, Italy, Spain, Portugal and the United Kingdom). Aubay generated revenue of €534.1 million in 2023.

Euronext, Compartment: B ISIN FR0000063737-AUB Reuters AUBT.PA Bloomberg AUB:FP

Contacts

APPENDICES

Statement of financial position as of December 31, 2023

ASSETS (in € thousands)	Dec. 31, 2023	Dec. 31, 2022
Goodwill	131,305	131,305
Intangible assets	884	597
Property, plant & equipment	4,283	4,978
Right of use relating to leases	19,829	13,850
Equity-accounted investees	-	-
Other financial assets	2,181	2,053
Deferred tax assets	3,929	2,603
Other non-current assets	1,530	1,782
NON-CURRENT ASSETS	163,941	157,168
Inventories and work in progress	736	926
Assets on contracts	34,932	35,458
Trade receivables	121,914	127,890
Other receivables and accruals	41,139	38,510
Marketable securities	42,330	40,272
Cash at bank and in hand	52,566	45,581
CURRENT ASSETS	293,617	288,637
TOTAL ASSETS	457,558	445,805

EQUITY AND LIABILITIES (in € thousands)	Dec. 31, 2023	Dec. 31, 2022
Capital	6,532	6,634
Additional paid-in capital and consolidated reserves	221411	208,443
Net income attributable to owners of the parent	33,408	35,629
Shareholders' equity attributable to the Group	261,351	250,706
Minority interests	0	0
SHAREHOLDERS' EQUITY	261,351	250,706
Borrowings and financial liabilities: non-current portion	1,078	1,611
Rental liabilities due in more than 1 year	15,439	9,720
Deferred tax liabilities	1	1
Provisions for contingencies and expenses	8,896	6,600
Other non-current liabilities	358	259
NON-CURRENT LIABILITIES	25,772	18,191
Borrowings and financial liabilities: current portion	824	832
Rental liabilities due within 1 year	5,084	4,555
Trade and other payables	36,917	39,104
Contract liabilities	20,595	25,615
Other current liabilities	107,015	106,802
CURRENT LIABILITIES	170,435	176,908
TOTAL EQUITY AND LIABILITIES	457,558	445,805

Income statement for 2023

In € thousands	2023	%	2022	%
Revenue	534,116	100%	513,547	100%
Other operating income	236		733
Purchases used in production and external charges	(131,913)		(118,959)
Staff costs	(342,543)		(329,662)
Taxes other than on income	(4,509)		(4,247)
Amortization, depreciation and provisions	(8,038)		(7,842)
Change in inventories of work in progress and finished goods
Other operating income and expenses	36		(402)
Operating profit from ordinary activities	47,385	8.9%	53,168 10.4%
Expenses linked to restricted share units and similar awards	(1,328)		(1,606)
Current operating profit	46,057	8.6%	51,562 10.0%
Other operating income and expenses	(3,728)		(1,478)
Operating profit	42,329	7.9%	50,084	9.8%
Income from cash and cash equivalents
Net borrowing costs	(771)		(478)
Other financial income and expenses	1,818		(203)
Financial income/(expense)	1,047		(681)
Income tax expense	(9,968)	23%	(13,774)	28%
Income from equity-accounted investees
Net income before results of discontinued operations or assets	33,408		35,629
held for sale Net income after tax of discontinued operations or assets held
for sale
Net income	33,408	6.3%	35,629	6.9%
Attributable to owners of the parent	33,408		35,629
Minority interests	0		0
Basic weighted average number of shares	13,055,712		13,250,487
Earnings per share	2.56		2.69
Diluted weighted average number of shares	13,129,462		13,330,487
Diluted earnings per share*	2.54		2.67

(in € thousands)	2023	2022
Consolidated net income (including non-controlling interests)	35,629	35,629
Income from equity-accounted investees
Net depreciation, amortization and provisions and right of use relating to leases	8,993	7,600
Non-cash expenses and income relating to share-based payments	1,228	1,606
Other non-cash items
Dividend income	(58)	(57)
Gains and losses on disposals of fixed assets	208	15
Cash flow after net interest expense and tax	43,779	44,793
Net borrowing costs	771	478
Tax expense (including deferred taxes)	9,968	13,774
Cash flow before net interest expense and tax (A)	54,518	59,045
Income tax payments (B)	(10,979)	(17,318)
Change in trade and other receivables (C)	5,132	(15,157)
Change in trade and other payables (C)	(6,973)	7,302
Change in WCR linked to operations (including debt related to employee benefits)	(1,841)	(7,855)
Net cash provided by (used in) operating activities (D) = (A+B+C)	41,698	33,872
Outflows for the acquisition of tangible and intangible fixed assets	(1,805)	(2,376)
Inflows from the disposal of tangible and intangible fixed assets	17	68
Outflows for the acquisition of financial assets	(5)	(4)
Inflows from the disposal of financial assets
Change in loans and advances granted	(74)	24
Disbursements (cash) related to business combinations, net of cash and cash equivalents
Dividends received	58	57
Other operating cash flows
Net cash provided by (used in) investing activities (E)	(1,809)	(2,231)
Proceeds from capital increases
Amounts received upon the exercise of stock options
Purchases of treasury shares for cancellation
Purchases of and proceeds from the sale of treasury shares	(6,614)
Dividends paid in the period:
- Net dividends paid to parent company shareholders	(15,901)	(16,701)
- Dividends paid to the non-controlling shareholders of consolidated companies		(44)
Inflows from new borrowings
Repayment of loan debt	(559)	(1,806)
Repayment of rental liabilities	(5,025)	(5,541)
Net interest payments	(771)	(478)
Purchase of non-controlling minority interests		(258)
Other financial cash flows
Net cash provided by (used in) financial activities (F)	(30,870)	(24,828)
Effects of changes in foreign exchange rates (G)	9	(30)
Change in net cash (D+E+F+G)	9,028	6,783
Cash and cash equivalents at the beginning of the period	85,839	79,056
Cash and cash equivalents at end of period	94,867	85,839

Contacts Amaury Dugast – Actus Finance – Tel: +33 (0)1 53 67 36 74 – E-mail: adugast@actus.fr David Fuks – Co-Chief Operating Officer – Finance Department – Tel.: +33 (0)1 46 10 67 67 – E-mail: dfuks@aubay.com