Aubay — Interim / Quarterly Report 2021

Sep 15, 2021

Boulogne-Billancourt, September 15, 2021

2021 Half-Yearly Results:

Business above pre-crisis level

Record half-year operating margin from ordinary activities: 9.6% Net income attributable to owners of the parent: €15.6 million

In € thousands	H1 2021	H1 2020	Change
Revenue	233,095	214,777	+8.5%
Operating profit from ordinary activities	22,457	18,791	+19.5%
As a % of revenue	9.6%	8.7%
Cost of performance shares	(527)	(464)
Other operating income and expenses	(613)	(906)
Operating profit	21,317	17,421	+22.4%
Financial income/(expense)	69	(302)
Tax (expense)/income	(5,776)	(5,814)
Net income from consolidated companies	15,610	11,305	+38.1%
As a % of revenue	6.7%	5.3%
Net income attributable to owners of the parent	15,583	11,287
Earnings per share	€1.18	€0.86
Headcount	6,888	6,411

Aubay's Board of Directors, which met on September 15, 2021 under Chairman Christian Aubert, approved the consolidated financial statements for the first six months of 2021. The financial statements have been reviewed by the company's Statutory Auditors who will shortly issue their reports.

After demonstrating exceptional resilience in 2020, the Group has embarked on a strategy of commercial success. It reported organic growth of 8.5% in the first half of 2021, outstripping the benchmark market.

Operating margin from ordinary activities above projections

Operating margin from ordinary activities stood at 9.6%, the best first-half performance ever achieved in the history of the Group and higher than estimated when the half-yearly results were published in July, thanks in particular to a consultant productivity rate of 93.8% compared to 92.7% at June 30, 2020.

The Group's operating margin for the period came in at 8.2% for activities in France and 11.1% for activities overseas, compared with 7.5% and 10.1%, respectively, in 2020.

Operating profit of €21.3 million

Operating profit rose 22.4%, after taking into account the cost of performance shares of €0.5 million and a net operating expense of €0.6 million, primarily comprising restructuring expenses, which was lower than in the same prior-year period.

Sharp increase in net income attributable to owners of the parent (6.7% of net margin)

Net income attributable to owners of the parent came in at €15.6 million, a record half-year high for the Group. The tax expense of €5.7 million reflected a decrease in the Group's average tax rate to 27%.

Net cash (excluding rental liabilities) stable at €44 million

Cash flow stood at €25.5 million or 10.9% of revenue. The change in WCR amounted to negative €14.3 million compared to a negative €4.2 million for the same period of the previous year, in line with the strong growth in revenue and the usual seasonal nature of our business. After taking into account the payment of a dividend in May for an amount of €4.3 million, net cash was stable at €44 million at June 30, 2021, and should significantly increase during the second half of the year.

Proposed interim dividend of €0.34

In light of the strong increase in net income and the Group's excellent financial position, the Board of Directors has decided to pay an interim dividend of €0.34 per share in respect of 2021. The interim dividend will be paid on November 10, 2021.

Outlook for 2021

Aubay operates on a market that still offers excellent visibility with numerous calls for tender issued by clients. The Group continues to achieve commercial success and productivity remains high. The headcount is still increasing, and is set to hit the 7,000 mark in the short term.

Management is very confident that the following 2021 targets, revised upwards in July, will be achieved:

• Annual revenue of between €456 million and €465 million;
• Operating margin from ordinary activities between 9.5% and 10.5%.

Aubay will publish its 2021 third-quarter revenue on October 20, 2021 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.

	2021
Organic growth	+8.5%
Impact of changes in scope	0
Growth as reported	+8.5%

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 profit 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 6,562 employees in 7 countries (France, Belgium, Luxembourg, Italy, Spain, Portugal and the United Kingdom), Aubay generated revenue of €426.4 million in 2020.

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

Bloomberg AUB:FP

APPENDICES

Consolidated financial position

ASSETS (€ thousands)	6/30/2021	12/31/2020
Goodwill	131,305	131,305
Intangible assets	991	771
Property, plant & equipment	4,573	5,166
Right of use relating to leases	16,433	18,611
Equity-accounted investees	-
Other financial assets	2,022	2,263
Deferred tax assets	2,492	2,472
Other non-current assets	-	118
NON-CURRENT ASSETS	157,816	160,706
Inventories and work in progress	324	516
Assets on contracts	41,397	29,148
Client and other receivables	112,049	105,432
Other receivables and accruals	36,265	33,496
Marketable securities	840	579
Cash at bank and in hand	48,718	51,883
CURRENT ASSETS	239,593	221,054
TOTAL ASSETS	397,409	381,760
LIABILITIES (€ thousands)	31/06/2021	31/12/2020
Capital	6,611	6,604
Additional paid-in capital and consolidated reserves	192,581	170,016
Net income attributable to the Group	15,583	26,132
Shareholders' equity attributable to the Group	214,775	202,752
Minority interests	146	144
SHAREHOLDERS' EQUITY	214,921	202,896
Borrowings and financial liabilities: non-current portion		3 ,913
Rental liabilities: due in over 1 year	2,444	13,756
Deferred tax liabilities	11,809	1
Provisions for contingencies and expenses	1	6,751
Other non-current liabilities	6,812	273
NON-CURRENT LIABILITIES	441	24,694
Borrowings and financial liabilities: current portion	21,507	3,907
Rental liabilities: due within 1 year	3,097	5,240
Trade payables and related accounts	5,024	30,572
Contract liabilities	31,120	18,319
Other liabilities and accruals	14,462 107,278	96,132

TOTAL EQUITY AND LIABILITIES 397,409 381,760

Consolidated income statement

(in € thousands)	6/30/2021	%	12/31/2020	%
Revenue	233,095	100%	214,777	100%
Other operating income	200		244
Purchases used in production and external charges	(46,850)		(43,205)
Staff costs	(158,452)		(147,290)
Taxes other than on income	(1,935)		(1,791)
Amortization, depreciation and provisions	(3,758)		(3,840)
Change in inventories of work in progress and finished goods
Other operating income and expenses	157		(104)
Operating profit from ordinary activities	22,457	9.6%	18,791	8.7%
Expenses linked to restricted share units and similar awards	(527)		(464)
Current operating profit		9
	21,930	9.4%	18,327	8.5%
Other operating income and expenses	(613)		(906)
Operating income	21,317	9.1%	17,421	8.1%
Income from cash and cash equivalents
Net borrowing costs	(260)		(283)
Other financial income and expenses	329		(19)
Financial income/(expense)	69		(302)
Income tax expense	(5,776)	27%	(5,814)	34%
Income from equity-accounted investees
Net income before results of discontinued operations or assets held
for sale	15,610		11,305
Net income after tax of discontinued operations or assets held for sale	-		-
Net income	15,610	6.7%	11,305	5.3%
Attributable to owners of the parent	15,583		11,287
Minority interests	27		18
Basic weighted average number of shares	13,208,860		13,190,560
Earnings per share	1.18		0.86
Diluted weighted average number of shares	13,283,360		13,243,060
Diluted earnings per share	1.17		0.85

Statement of consolidated cash flows

(in € thousands)	6/30/2021	12/31/2020
Consolidated net income (including non-controlling interests)	15,660	11,305
Income from equity-accounted investees
Net depreciation, amortization and provisions and right of use relating to leases	2,810	4,150
None-cash expenses and income relating to share-based payments	527	464
Other non-cash items		212
Dividend income
Gains and losses on disposals of fixed assets	484	101
Cash flow after net interest expense and tax	19,481	16,232
Net borrowing costs	260	283
Tax expense (including deferred taxes)	5,726	5,814
Cash flow before net interest expense and tax (A)	25,467	22,329
Income tax payments (B)	(4,852)	(130)
Change in trade and other receivables (C)	(14,300)	(4,231)
Net cash provided by (used in) operating activities (D) = (A+B+C)	6,315	17,968
Outflows for the acquisition of tangible and intangible fixed assets	(460)	(646)
Inflows from the disposal of tangible and intangible fixed assets
Outflows for the acquisition of financial assets		(4)
Inflows from the disposal of financial assets
Change in loans and advances granted	248	388
Disbursements (cash) related to business combinations, net of cash and cash
equivalents
Net cash provided by (used in) investing activities (E)	(212)	(262)
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
Dividends paid in the period
Net dividends paid to parent company shareholders	(4,340)	(3,562)
Dividends paid to the non-controlling shareholders of consolidated companies
Inflows from new borrowings	115	1 520
Repayment of financial debt	(2,168)	(2,482)
Repayment of loan debt	(2,165)	(2,609)
Net interest payments	(260)	(283)
Purchase of non-controlling minority interests
Other financial flows
Net cash provided by (used in) financial activities (F)	(8,818)	(7,416)
Effects of changes in foreign exchange rates (G)	34	(40)
Change in net cash (D+E+F+G)	(2,681)	10,250
Cash and cash equivalents at the beginning of the period	52,205	24,131
Cash and cash equivalents at end of period	49,524	34,381