Colas — Earnings Release 2013

Nov 13, 2013

PRESS RELEASE

Boulogne, November 13, 2013

REVENUE AND RESULTS 3 rd quarter and first nine months of 2013

• Results have improved for 3rd quarter o Revenue: €4.1 B (+1%)
• o Operating profit: €299 M (+€29 M)
• o Net profit attributable to the Group: €219 M (+€22 M)
• High level of work-on-hand: €7.1 B (+1%)

Consolidated key figures as of September 30, 2013

in millions of euros	As of 30/09/2012	As of 30/09/2013	Change	Full year 2012
Consolidated revenue	9,670	9,664	- 0.1%	13,036
of which France	5,455	5,543	+1.6%	7,363
of which International	4,215	4,121	-2.2 %	5,673
Operating profit	236	223	- €13 M	406
Consolidated net profit (attributable to the Group)	178	187	+€9 M	302

(Net debt) /Net cash	(786)	(834)	- €48 M	(170)
-------------------------	-------	-------	------------	-------

Revenue

As of September 30, 2013, the Colas Group's consolidated revenue amounted to 9.7 billion euros, nearly identical to the figures posted on September 30, 2012 (-0.1% and +0.3% with comparable exchange rates and scope of business). Following a first half year marked by particularly unfavorable weather in Mainland France, Europe and North America, business went smoothly during the 3rd quarter, with normal climate conditions, making it possible to partially catch up on delays in revenue recorded at the end of June.

Trends by business segments were as follows:

Roads

In Mainland France, revenue remained stable over the first nine months, thanks to good levels of business during the 3 rd quarter (+3.5% compared to 3rd quarter 2012) which helped make up for delays during the first half year posted end-June.

In Europe, business was down 4% (-2% with comparable exchange rates and scope of business).

In North America, business during the 3rd quarter was not able to offset weather-related delays from the first half year. Revenue is down 8% compared to the end of September 2012 (-7% with comparable exchange rates and scope of business), in particular in Canada due to a contraction of the market in certain Provinces.

In the Rest of the World, revenue is up 2%. Asia/Australia and the French overseas departments are enjoying growth. The Africa/Indian Ocean zone has recorded a drop, principally in Morocco.

Specialized activities

During the first three quarters of 2013, revenue rose 11%. This increase reflects disparities amongst the different lines of business, as was the case during the first half year: strong growth was recorded for Railways (+23%) and for the Sales of Refined Products (+18%) due to the end of a processing contract with Total on January 1, 2013 (by which Total commercialized 40% of SRD's production); Waterproofing held up well (+6%); Pipelines remained practically stable (-1%) and Road Safety and Signaling was down (-5%).

Profitability

Operating profit for the 3rd quarter totaled 299 million euros, up 29 million euros from 3 rd quarter 2012. The majority of the Group's businesses performed well, in particular Roads in Mainland France and Railways. Nonetheless, as of the end of September 2013, this improvement has not offset the impact of unfavorable weather during the first half year, losses in the Sales of refined products activity which is suffering from additional downward trends in prices compared to the first three quarters of 2012, and a decrease in North America's operating profit, due to a combination of eroding profitability in Canada as well as a sluggish recovery of traditional business segments and difficulties encountered on civil engineering projects in the United States. In consequence, as of September 30, 2013, operating profit totaled 223 million euros, compared to 236 million euros on September 30, 2012.

The share of net profit attributable to the Group rose to 187 million euros (+9 million euros compared to the end of September 2012), boosted in particular by an increase in income from associates, notably the Thai subsidiary Tasco.

Financial situation

Net financial debt amounts to 834 million euros (786 million euros on September 30, 2012), thus reflecting conventional seasonality effects.

Outlook

Work on hand at the end of September 2013 remained high, at 7.1 billion euros (+1% from the end of September 2012), due notably to the securing of major contracts: a design-build project for the Tangiers-Kenitra high speed train line in Morocco, the construction of two sections of Motorway M85 in Hungary, and a consortium PPP to improve and upgrade the Iqaluit International Airport in Nunavut, Canada.

Based on all currently available data, revenue for 2013 will total nearly 13.1 billion euros (previous forecast at 13.2 billion) due to the unfavorable impact of the euro exchange rates.

The financial statements have been subject to a limited review by statutory auditors. This press release is available in French and in English at www.colas.com

Consolidated condensed income statement for 3rd quarter 2013

	3	rd quarter
in millions of euros	2012	2013	Change
Revenue	4,076	4,104	+0.7%
Operating profit	270	299	+€29 M
Net profit attributable to the Group	197	219	+€22 M

Revenue as of September 30, 2013 by business segment

in millions of euros	As of 30/09/2012	As of 30/09/2013	Change	Changes on like-for-like basis
Roads Mainland France	3,855	3,858	=	=
Roads Europe	1,092	1,044	-4%	-2%
Roads North America	1,964	1,809	-8%	-7%
Roads Rest of the World	1,067	1,090	+2%	+2%
Total Roads	7,978	7,801	-2%	-2%
Specialized activities	1,672	1,849	+11%	+10%
Parent company	20	14	n/s	n/s
TOTAL	9,670	9,664	-0.1%	+0.3%

Revenue as of September 30, 2013 by geographic zone

in millions of euros	As of 30/09/2012	As of 30/09/2013	Change
Mainland France	5,134	5,191	+1%
French Overseas Departments	321	352	+10%
France	5,455	5,543	+2%
North America	1,971	1,815	-8%
Europe (excl. France)	1,428	1,477	+3%
Rest of the World1	816	829	+2%
International1	4,215	4,121	-2%
TOTAL	9,670	9,664	-0.1%

Net cash flow and Net capital expenditure as of September 30, 2013

in millions of euros	As of 30/09/2012	As of 30/09/2013	Change	Full year 2012
Net cash flow	519	466	-53 M€	723
Net capital expenditure	223	170	-53 M€	345

1 Including French Overseas Territories