Press release

2020 Half-Year results

Good resilience through an unprecedented crisis, confirming the strength of SPIE's fundamentals

Cergy, July 29 th , 2020

H1 2020: resilient performance, good recovery from June onwards

Revenue: €3,022 million, down -6.8% vs. H1 2019R¹ (-9.0% on an organic basis)
Severe impact from lockdowns in Q2: -17.1% organic contraction, starting from -24.9% in April and recovering to -6.4% in June, resulting in under-absorption of fixed costs
EBITA: €93.3 million or 3.1% of revenue (4.8% in H1 2019)
Activity now nearly back to normal

Excellent cash collection supporting significant net debt reduction vs. June 2019

Strong improvement in working capital, at (15) days of revenue at end June 2020 excluding the benefit of government deferral schemes, vs. (7) days at end June 2019
Excellent cash collection across the Group, highlighting SPIE's rigorous management and the quality of our customer base
€377 million decrease in net debt² vs. June 2019
Leverage² at end June 2020: 3.6x, lower than end June 2019 level (3.9x)
High liquidity maintained, at €1.1 billion at end June 2020

Trading in H2 2020 expected close to last year's level, reflecting SPIE's resilience as a provider of mission-critical services across a broad customer portfolio

H2 2020 revenue expected close to H2 2019 level on an organic basis
H2 2020 EBITA margin expected within 50 basis points from H2 2019 level (7.0%)
Continued robust cash generation leading to a limited increase in year-end leverage² in 2020, expected at maximum 3.0x. Significant decrease expected in 2021
Guidance based on the assumption of no major deterioration of the Covid-19 situation

SPIE well positioned to benefit from upcoming stimulus investments in energy efficiency, renewables, clean mobility and connectivity

High exposure to potential stimulus investments, with a c.35% green share of revenue per the E.U. taxonomy³ and a leading expertise in information & communication technologies

¹ H1 2019 figures have been restated to account for the contribution of SPIE UK's schools facility management activity. Previously under a divesture process, it was presented as a discontinued operation in accordance with IFRS 5. As part of SPIE UK's reorganisation, the divesture process has been stopped and this activity, with a realigned service portfolio, has been reintegrated into the continued perimeter.

² Excluding IFRS 16.

³ Based on FY19 revenue and on the European Union draft taxonomy for sustainable activities as of February 2020.

Gauthier Louette, Chairman & CEO, declared: 'The Covid-19 pandemic resulted in unprecedented business disruptions and health and safety challenges, to which SPIE's employees have reacted remarkably well and I wish to thank all of them for their commitment. Given the abruptness of this crisis, our H1 results reflect a good resilience and illustrate the mission-critical nature of our services, the embedded discipline of our entire organisation, as well as the good balance of our geographical footprint. We achieved an excellent cash collection across the Group, highlighting the rigour of our management and the outstanding quality of our customer base.

The evolution of the Covid-19 epidemic remains unpredictable and we are facing an uncertain economic context. However, assuming no major deterioration of the sanitary situation, the swift recovery observed in June makes us confident that SPIE's revenue and margins can be close to normal in the second half of the year, and that we will deliver a robust free cash flow in 2020. With c. 35% of our activities contributing substantially to climate change mitigation as per the EU taxonomy, and a leading expertise in information and communication technologies, we are well positioned to benefit from upcoming economic stimulus plans."

H1 2020 results

Note: H1 2020 and H1 2019 financial information presented in this press release includes the impacts of IFRS 16, except for the net debt and leverage ratio, which are presented excluding the impact of IFRS 16 (unless otherwise stated), as defined by the Group's senior debt facility agreement.

In millions of euros	H1 2020	H1 2019R1	20/19 Change	H1 2019 Reported
Revenue	3,021.6	3,242.6	-6.8%	3,223.8
EBITA	93.3	156.4	-40.3%	156.3
EBITA margin	3.1%	4.8%		4.8%
Adjusted net income (Group share)	38.8	81.5	-52.4%	81.5
Net income (Group share)	(41.7)	42.4	n.a.	42.4
Net debt as of June 30th excl. IFRS 162	(1,465.5)	(1,842.3)	-376.8	(1,842.3)
Leverage ratio3 as of June 30th excl. IFRS 16	3.6x	3.9x		3.9x

² Including IFRS 16, net debt at end June 2020 is €1,814.7 million, and leverage ratio at end June 2020 is 3.8x.

³ Leverage ratio is calculated as net debt at end June / pro-forma EBITDA excluding IFRS 16 on a trailing twelve-month basis.

Group revenue was €3,021.6 million in H1 2020, down -6.8% year-on-year. On an organic basis, revenue declined by -9.0%. This organic contraction was entirely generated in Q2, where revenue declined organically by -17.1% with a low point in April, at -24.9%, followed by a rapid recovery resulting in a limited -6.4% organic contraction in June. Growth from 2019 bolt-on acquisitions was +2.7% in H1 2020. The disposal, in March 2020, of SPIE UK's mobile maintenance activities had a -0.8% impact at Group level. Currency movements accounted for +0.2%.

Group EBITA was €93.3 million in H1 2020, down -40.3% compared to H1 2019R¹ . EBITA margin was 3.1%, compared to 4.8% in H1 2019R. In spite of a rapid implementation of labour cost mitigation measures, EBITA margin was affected in Q2 by a low absorption of remaining fixed costs due to abrupt revenue shortfalls, and additional expenses stemming from health protection measures (equipment and lower productivity).

Adjusted net income (Group share) amounted to €38.8 million, down -52.4% compared to H1 2019R.

Net income (Group share) was €(41.7) million, compared to €42.4 million in H1 2019. In addition to a lower EBITA in H1 2020, the decrease in net income reflects a €(44.1) million net loss from the disposal of SPIE UK's mobile maintenance activities and €9.9 million of restructuring costs mainly pertaining to Oil & Gas services and our UK business.

SPIE's structurally negative working capital improved strongly over 12 months, to (15) days of revenue at June 30th, 2020 excluding the benefit from government social charges and taxes deferral schemes, implemented in response to the Covid-19 crisis. This compares to (7) days at June 30th , 2019. Cash collection was excellent across the whole Group, reflecting our rigorous management as well as the outstanding quality of SPIE's client base.

Net debt excluding IFRS 16 decreased by €377 million over 12 months, to €1,465.5 million at June 30th, 2020 compared to €1,842.3 million at June 30th, 2019. Leverage ratio was 3.6x, better than June 30th 2019 level (3.9x). The increase in net debt and leverage compared to December 31st, 2019 levels reflects SPIE's usual working capital seasonality.

¹ H1 2019 figures have been restated to account for the contribution of SPIE UK's school facility management activity. Previously under a divesture process, it was presented as a discontinued operation in accordance with IFRS 5. As part of SPIE UK's reorganisation, the divesture process has been stopped and this activity, with a realigned service portfolio, has been reintegrated into the continued perimeter

Revenue

In millions of euros	H1 2020	H1 2019R1	20/19 Change	o/w external growth	o/w disposal2	o/w organic growth	o/w foreign exchange
France	1,053.3	1,248.9	-15.7%	+1.3%	-	-17.0%	-
Germany & CE o/w Germany	1,088.3 899.2	1,022.8 844.6	+6.4% +6.5%	+7.2% +6.8%	- -	-1.1% -0.3%	+0.3% -
North-Western Europe	653.8	719.0	-9.1%	-	-3.3%	-6.1%	+0.4%
Oil & Gas and Nuclear	226.2	251.9	-10.2%	-	-	-11.0%	+0.8%
Group revenue	3,021.6	3,242.6	-6.8%	+2.7%	-0.8%	-9.0%	+0.2%

EBITA

In % of revenue	3.1%	4.8%
Group EBITA	93.3	156.4	-40.3%
Holding	6.4	5.9
In % of revenue	7.1%	8.5%
Oil & Gas and Nuclear	16.1	21.4	-24.8%
In % of revenue	1.0%	1.6%
North-Western Europe	6.5	11.7	-44.4%
In % of revenue	4.0%	4.7%
o/w Germany	35.5	39.6	-10.4%
In % of revenue	3.4%	4.4%
Germany & CE	36.7	45.1	-18.6%
In % of revenue	2.6%	5.8%
France	27.6	72.2	-61.8%
In millions of euros	H1 2020	H1 2019R1	20/19 Change

France

The France segment's revenue declined by -15.7% in H1 2020. Revenue contracted by -17.0% on an organic basis, while the full-year consolidation of Cimlec Industrie, acquired in July 2019, contributed for +1.3%. EBITA margin was 2.6%, compared to 5.8% in H1 2019.

² Disposal of SPIE's UK mobile maintenance activities, completed in March 2020

Following the implementation of particularly stringent lockdown measures from mid-March to mid-May, SPIE's French business suffered a major impact in Q2, where revenue declined by -30.7% on an organic basis. Following a very low point in April (-50.2%), activity recovered well, with an organic decline limited to -8.1% in June. While labour cost mitigation measures were promptly implemented, EBITA margin has been impacted by a low absorption of remaining fixed costs during the lockdown period, as well as the cost of increased health protection measures. Cash collection was excellent across all divisions.

Germany & Central Europe

The Germany & Central Europe segment's revenue grew by +6.4% in H1 2020, including a strong +7.2% growth from 2019 acquisitions, a limited -1.1% organic contraction and a +0.3% impact from currency movements. EBITA margin was 3.4%, compared to 4.4% in H1 2019.

SPIE's German business showed a remarkable stability, with a -0.3% organic revenue change, while Osmo and Telba, acquired in 2019, contributed for +6.8%. While softer containment measures and rapid adaptation of working practices allowed business to carry on close to normal levels, there were differences across divisions: very strong growth in transmission and distribution services, reflecting unabated momentum in Germany's energy transition; softer activity in building-related services as a result of Covid-19 constraints. EBITA margin remained robust given the incremental costs generated by the health situation. Cash collection was very strong.

Performance in Central Europe was affected by project phasing in Hungary, while other countries, as well as Switzerland, proved extremely resilient through the Covid-19 crisis.

North-Western Europe

In the North-Western Europe segment, revenue decreased by -9.1% in H1 2020, including a -6.1% organic contraction, a -3.3% impact from the disposal of SPIE's UK mobile maintenance activities, completed in March 2020, and a +0.4% impact from currency movements. EBITA margin was 1.0%, compared to 1.6% in H1 2019R¹ , affected by a low absorption of fixed costs during lockdowns in the UK and Belgium.

In the Netherlands, where no strict Covid-19 related containment measures were enforced, business could continue close to normal levels through the period and margins were maintained. Activity levels were strong in infrastructure and information and communication services, the latter being very active in the healthcare sector, while industry services were quite impacted by lower demand from petrochemical clients.

¹ Including the contribution of SPIE UK's school facility management activities, reintegrated into the continued perimeter in Q2 2020.

In the United Kingdom, stringent lockdown measures were implemented a bit later than in other countries and had a significant impact on Q2 revenue. Following the sale of under-performing mobile maintenance activities in March 2020, SPIE UK underwent a major reorganisation with a material performance improvement expected in H2 2020.

In Belgium, business was also affected by a strict lockdown. Building and industry services were strongly impacted, while infrastructure services showed resilience.

Oil & Gas and Nuclear

The Oil & Gas and Nuclear segment's revenue contracted by -10.2% in H1 2020, including a -11.0% organic decline and a +0.8% impact from currency movements. EBITA margin was 7.1%, compared to 8.5% in H1 2019.

Following a robust Q1, Oil & Gas Services were impacted in Q2 by a harsh trading environment combining Covid-19 constraints and a disrupted oil market. However, thanks to our focus on recurring maintenance and operations, organic revenue contraction was limited to mid-single digit in H1 2020. EBITA margin was stable thanks to the first benefits of a swift reorganisation.

Nuclear services were impacted by customer-specific Covid-19 measures. Nuclear maintenance activities are currently back to normal and a large part of the 'Grand Carénage' works that were postponed will be caught up in the second half of the year.

Free cash flow and net debt (excluding IFRS 16)

As happens every year, Free cash flow was negative in H1 2020, at €(187.3) million, reflecting SPIE's working capital seasonality, which translates into a cash outflow in H1 and a cash inflow in H2. Despite the Covid-19 crisis, Free cash flow improved by €195 million compared to H1 2019 due to a significantly better working capital evolution.

SPIE's structurally negative working capital represented (30) days of revenue at June 30th, 2020. Excluding the benefit from government social charges and taxes deferral schemes, implemented in various countries in response to the Covid-19 crisis, working capital at June 30th, 2020 represented (15) days of revenue, a significant improvement compared to June 30th, 2019 level of (7) days. This improvement was driven by an excellent cash collection across the Group, reflecting SPIE's rigorous cash management as well as the outstanding quality of the Group's customer base.

Net debt excluding IFRS 16 decreased by €377 million over 12 months, to €1,465.5 million or a 3.6x leverage¹ at June 30th, 2020, compared with €1,842.3 million or a 3.9x leverage at June 30th, 2019. In addition to a better-than-usual H1 free cash flow, net debt at June 30th, 2020 benefitted from the absence of a final dividend payment and from a lower M&A activity.

Liquidity and financing

The Group's liquidity remained very high, at €1,124 million at June 30th, 2020, including €724 million of net cash and €400 million of undrawn Revolving Credit Facility. This level represents a significant improvement over 12 months (€828 million at June 30th, 2019).

SPIE's €600 million revolving credit facility was fully drawn as a precaution in March 2020 at the onset of the Covid-19 crisis. At June 30th, 2020, SPIE had already repaid €400 million, keeping a €200 million balance in line with historical mid-year levels. The maturity of this revolving credit facility was extended for two years, to 2025² .

SPIE is facing no debt maturity before 2023. The Group's bank debt is subject to one covenant, measured only at year-end and pertaining to a leverage ratio less than or equal to 4.0x.

Outlook

Whilst the last months have seen a gradual lift of lockdown measures in SPIE's countries of operations, the Covid-19 epidemic is still ongoing and its evolution remains unknown. Assuming no major deterioration of the Covid-19 situation, SPIE expects trading in H2 2020 to be close to last year's levels. In an uncertain economic context, this reflects the Group's resilience as a provider of mission-critical services across a broad customer portfolio. In particular:

H2 2020 Group revenue expected close to H2 2019 level on an organic basis;
H2 2020 Group EBITA margin expected within 50 basis points from H2 2019 level of 7.0%;
Continued robust cash generation, leading to a limited increase in year-end leverage³ , expected at maximum 3.0x in 2020. Significant decrease expected in 2021.

¹ Ratio of net debt at end June to pro forma EBITDA (including full-year impact of acquisitions) for the last twelve months, excluding the impact of IFRS 16

² The maximum capacity of the revolving credit facility is €600 million until 2023 and €410 million thereafter.

³ Excluding IFRS 16

SPIE well positioned to benefit from upcoming stimulus investments

A member of the European Alliance for a Green Recovery, SPIE believes that economic stimulus investments currently being decided across Europe in the wake of the Covid-19 crisis should, as much as possible, be directed towards the energy transition. Initiatives such as the European Green Deal have already set investment priorities, among which a step-up in the energy-efficiency of buildings and infrastructure, the roll-out of renewable energy projects, or a boost to electrical vehicles charging infrastructure. Related investment priorities aim at accelerating the digital transformation, in particular through the rapid deployment of 5G networks and the development of a real data economy. As an expert in energy and communication systems, SPIE offers a wide range of services and solutions that can make such transformations a reality.

35% of SPIE's activities contribute substantially to climate change mitigation as per the E.U. taxonomy

SPIE contributes significantly, through its services, to climate change mitigation. Earlier this year, SPIE took a first step in the quantification of such contribution, based on the European Union draft taxonomy for sustainable activities, and was among the very first European listed companies to do so. Based on the E.U. taxonomy, c.35% of SPIE's revenue¹ are derived from activities substantially contributing to climate change mitigation. Such activities include:

building technical renovation delivering energy savings of at least 30%, HVAC (heating, ventilation, air conditioning) systems replacement, technical solutions for new buildings as per the Nearly Zero-Energy Buildings standard;
electricity transmission & distribution services (i) in countries where the weighted emission factor of incremental production capacities over the past 5 years is lower than 100 grams of CO² per kWh, or (ii) directly connecting renewable energies, or (iii) related to equipment supporting the integration of renewable energy;
technical services to clean mobility infrastructure: electrical vehicles charging infrastructure, lowcarbon public transport infrastructure;
LED relamping for public lighting.

22% of SPIE's revenue is derived from information and communication technologies

SPIE has a leading expertise in services related to information and communication technologies. The Group is particularly active in the deployment and maintenance of fixed and mobile communication networks (e.g. optic fiber, 4G, 5G). It also offers a wide range of solutions and services for information and communication systems, as well as operated and cloud computing services. Lastly, SPIE is at the forefront for the deployment of connected object and IoT solutions in all types of facilities.

Interim dividend

Mindful of the responsibility imposed on us by an unprecedented health, economic and social crisis, in which significant efforts have been asked to all of the Group's stakeholders, SPIE decided not to pay dividend this year. Accordingly, no interim dividend will be paid in September 2020. Dividend remains however at the heart of SPIE's capital allocation policy, and the Group will resume dividend payment in 2021.

Consolidated financial statements

The consolidated financial statements of SPIE SA as of and for the six months ended June 30th, 2020 have been authorised for issue by the Board of Directors on July 28 th, 2020.

Auditors' review of the consolidated financial statements is complete and the statutory auditors' report on the 2020 half year financial information has been issued.

The consolidated financial statements (full financial statements and notes) and the slide presentation of the 2020 half-year results are available on our website www.spie.com, in the "Finance/Regulated Information" section.

¹ Based on FY19 figures and the EU draft taxonomy as of February 2020

Conference call for investors and analysts

Date: Wednesday, July 29 th, 2020 9.00 am Paris time - 8.00 am London time

Speakers:

Gauthier Louette, Chairman & CEO Michel Delville, Group CFO

Dial-in details:

FR : +33 (0) 1 70 37 71 66
UK : +44 (0) 203 003 2666
USA : +1 212 999 6659
Password : SPIE

Webcast: https://channel.royalcast.com/webcast/spie/20200729\_1/

Next events

1-2 September 2020: Paris virtual roadshow (Mainfirst)

7 September 2020: Kepler Cheuvreux virtual conference

8-9 September 2020: London virtual roadshow (UBS)

30 September 2020: Berenberg Business Services virtual conference 2020

5 November 2020, before market opening: Quarterly information at September 30th, 2020

Financial definitions

Organic growth represents the production completed during the six months of half-year N by all the companies consolidated by the Group for the financial year ended December 31 of year N-1 (excluding any contribution from any companies acquired during half-year N) compared with the production performed during the six months of half-year N-1 by the same companies, independently of the date on which they were first consolidated within the Group.

EBITA represents adjusted operating income before amortisation of allocated goodwill, before tax and financial income.

Last-twelve-months pro-forma EBITDA corresponds to income generated by the Group's permanent operations over 12 months before tax and financial income, including the impacts over 12 months of acquisitions. It is calculated before depreciation of tangible assets and amortisation of goodwill, excluding the impact of IFRS 16.

Operating Cash-flow is the sum of EBITA, amortisation expenses, change in working capital requirement, and provisions related to income and expenses included in EBITA, minus net investment flows (excluding acquisitions) for the period, excluding the impact of IFRS 16.

Free cash-flow is defined as operating cash-flow minus taxes, net interest paid, restructuring and discontinuation items and before acquisitions and disposals proceeds and charges, excluding the impact of IFRS 16.

Leverage is the ratio of net debt excluding IFRS 16 to LTM pro forma EBITDA (including full-year impact of acquisitions).

About SPIE

As the independent European leader in multi-technical services in the areas of energy and communications, SPIE supports its customers to design, build, operate and maintain energy-efficient and environmentally friendly facilities. With about 47,200 employees and a strong local presence, SPIE achieved in 2019 consolidated revenues of €6.9 billion and consolidated EBITA of €416 million.

Contacts

SPIE Pascal Omnès Group Communications Director Tel. + 33 (0)1 34 41 81 11 [email protected]

SPIE Thomas Guillois Investor Relations Director Tel. + 33 (0)1 34 41 80 72 [email protected]

IMAGE 7 Laurent Poinsot Tel. + 33 (0)1 53 70 74 77 [email protected]

www.spie.com https://www.facebook.com/SPIEgroup http://twitter.com/spiegroup

Disclaimer

Certain information included in this press release are not historical facts but are forward-looking statements. These forward-looking statements are based on current beliefs, expectations and assumptions, including, without limitation, assumptions regarding present and future business strategies and the environment in which SPIE operates, and involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements, or industry results or other events, to be materially different from those expressed or implied by these forward-looking statements.

Forward-looking statements speak only as of the date of this press release and SPIE expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements included in this press release to reflect any change in expectations or any change in events, conditions or circumstances on which these forward-looking statements are based. Such forward- looking statements are for illustrative purposes only. Forward-looking information and statements are not guarantees of future performances and are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of SPIE, especially in the context of the current health crisis. Actual results could differ materially from those expressed in, or implied or projected by, forward-looking information and statements. These risks and uncertainties include those discussed or identified under Chapter 2 "Risk factors and internal control" in SPIE's 2019 Universal Registration Document, filed with the French Financial Markets Authority (AMF) on April 17th, 2020, which is available on the website of SPIE (www.spie.com) and of the AMF (www.amf-france.org).

This press release includes only summary information and does not purport to be comprehensive. No reliance should be placed on the accuracy or completeness of the information or opinions contained in this press release. This press release does not contain or constitute an offer of securities for sale or an invitation or inducement to invest in securities in France, the United States or any other jurisdiction.

Appendix

Preliminary comment

H1 2019 income statement figures have been restated to account for the contribution of SPIE UK's school facility management activity. Previously under a divesture process, it was presented as a discontinued operation in accordance with IFRS 5. As part of SPIE UK's reorganisation, the divesture process has been stopped and this activity, with a realigned service portfolio, has been reintegrated into the continued perimeter.

Consolidated income statement

In millions of euros	H1 2020	H1 2019R
Revenue	3,041.5	3,262.8
Other income	31.3	26.3
Operating expenses	(3,009.2)	(3,162.1)
Recurring operating income	63.6	127.1
Other operating expenses	(60.6)	(10.3)
Other operating income	4.4	6.7
Operating income	7.4	123.5
Net income (loss) from companies accounted for under the equity method	0.5	0.2
Operating income including companies accounted for under the equity method	7.9	123.7
Interests charges and losses from cash equivalents	(34.0)	(32.7)
Gains from cash equivalents	0.5	0.1
Costs of net financial debt	(33.5)	(32.7)
Other financial expenses	(14.7)	(11.3)
Other financial incomes	13.3	5.0
Other financial income (expenses)	(1.3)	(6.3)
Net income before taxes	(26.9)	84.8
Income tax expenses	(14.1)	(35.1)
Net income from continuing operations	(41.0)	49.6
Net income from discontinued operations	(0.3)	(7.1)
NET INCOME	(41.4)	42.5
Net income from continuing operations attributable to:
. Owners of the parent	(41.4)	49.5
. Non-controlling interests	0.3	0.1
	(41.0)	49.6
Net income attributable to:
. Owners of the parent	(41.7)	42.4
. Non-controlling interests	0.3	0.1
	(41.4)	42.5

Consolidated statement of financial position

In millions of euros	June 30th, 2020	Dec 31st, 2019
Non-current assets
Intangible assets	984.1	999.3
Goodwill	3,202.8	3,211.9
Property, plant and equipment	163.7	173.2
Right of use on operating and financial lease (IFRS 16)	346.2	340.0
Investments in companies accounted for under the equity method	12.4	11.9
Non-consolidated shares and long-term loans	47.8	47.2
Other non-current financial assets	5.2	5.0
Deferred tax assets	329.4	315.3
Total non-current assets	5,091.7	5,103.9
Current assets
Inventories	42.2	42.2
Trade receivables	1,890.2	1,916.9
Current tax receivables	43.9	24.5
Other current assets	389.9	306.5
Other current financial assets	8.2	7.4
Cash management financial assets	2.4	2.8
Cash and cash equivalents	726.1	869.2
Total current assets from continuing operations	3,102.7	3,168.5
Assets classified as held for sale	13.1	22.3
Total current assets	3,115.8	3,190.8
TOTAL ASSETS	8,207.5	8,294.7

In millions of euros	June 30th, 2020	Dec 31st, 2019
Equity
Share capital	74.1	74.1
Share premium	1,212.0	1,212.0
Consolidated reserves	183.5	13.4
Net income attributable to the owners of the parent	(41.7)	150.5
Equity attributable to owners of the parent	1,427.9	1,450.1
Non-controlling interests	3.9	3.5
Total equity	1,431.7	1,453.6
Non-current liabilities
Interest-bearing loans and borrowings	1,796.0	1,797.0
Non-current debt on operating and financial leases (IFRS 16)	240.9	239.1
Non-current provisions	66.9	70.7
Accrued pension and other employee benefits	854.0	879.5
Other non-current liabilities	19.0	7.0
Deferred tax liabilities	359.3	354.1
Total non-current liabilities	3,336.2	3,347.4
Current liabilities
Trade payables	747.9	1,141.3
Interest-bearing loans and borrowings (current portion)	390.8	334.1
Current debt on operating and financial leases (IFRS 16)	108.3	101.3
Current provisions	123.9	124.3
Income tax payable	80.1	55.8
Other current operating liabilities	1,981.6	1,722.7
Total current liabilities from continuing operations	3,432.5	3,479.5
Liabilities associated with assets classified as held for sale	7.1	14.1
Total current liabilities	3,439.6	3,493.6
TOTAL EQUITY AND LIABILITIES	8,207.5	8,294.7

Consolidated cash flow statement

In millions of euros	H1 2020	H1 2019
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD	866.5	779.8
Operating activities
Net income	(41.4)	42.5
Loss from companies accounted for under the equity method	(0.5)	(0.2)
Depreciation, amortization, and provisions	109.7	93.1
Proceeds on disposals of assets	43.7	(0.6)
Dividend income	-	-
Income tax expense	14.0	32.5
Elimination of costs of net financial debt	33.7	32.7
Other non-cash items	12.5	0.5
Internally generated funds from (used in) operations	171.6	200.5
Income tax paid	(32.6)	(34.6)
Changes in operating working capital requirements	(197.4)	(477.0)
Dividends received from companies accounted for under the equity method	0.2	0.2
Net cash flow from (used in) operating activities	(58.2)	(310.9)
Investing activities
Effect of changes in the scope of consolidation	(15.2)	(57.9)
Acquisition of property, plant and equipment and intangible assets	(28.6)	(26.4)
Net investment in financial assets	(0.2)	(0.0)
Changes in loans and advances granted	3.0	1.2
Proceeds from disposals of property, plant and equipment and	2.1	29.1
intangible assets
Proceeds from disposals of financial assets	-	-
Dividends received	-	-
Net cash flow from (used in) investing activities	(38.8)	(54.0)
Financing activities
Issue of share capital	-	-
Proceeds from loans and borrowings	599.6	791.9
Repayment of loans and borrowings	(594.3)	(690.7)
Net interest paid	(49.1)	(34.9)
Dividends paid to owners of the parent	-	(63.8)
Dividends paid to non-controlling interests	-	-
Net cash flow from (used in) financing activities	(43.7)	2.6
Impact of changes in exchange rates	(1.3)	0.7
Impact of changes in accounting policies	-	-
Net change in cash and cash equivalents	(142.1)	(361.6)
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD	724.5	418.1

Quarterly organic growth by segment

	Q1 2020	Q2 2020	H1 2020
France	-2.6%	-30.7%	-17.0%
Germany & CE	+1.0%	-2.9%	-1.1%
o/w Germany	+0.8%	-1.3%	-0.3%
North-Western Europe	+3.6%	-15.4%	-6.1%
Oil & Gas and Nuclear	-4.2%	-17.7%	-11.0%
Group	-0.2%	-17.1%	-9.0%

Reconciliation between revenue (as per management accounts) and revenue under IFRS

In millions of euros		H1 2020	H1 2019R
Revenue (as per management accounts)		3,021.6	3,242.6
Sonaid	(a)	(0.3)	(0.9)
Holding activities	(b)	15.6	16.4
Other	(c)	4.7	4.7
Revenue under IFRS		3,041.6	3,262.8

a) SONAID is consolidated using the equity method in the Group's consolidated accounts whereas it is accounted proportionally (55%) in the management accounts;

b) Non-Group revenue of SPIE Operations Group and other non-operational entities;
c) Re-invoicing of services provided by Group entities to non-managed joint ventures; re-invoicing to non-Group entities that do not correspond to operational activity (essentially re-invoicing of expenses incurred on behalf of partners); restatements of revenues from equity-accounted or non-consolidated entities.

Reconciliation between EBITA and operating income

In millions of euros		H1 2020	H1 2019R
EBITA		93.3	156.4
Amortisation of allocated goodwill	(a)	(27.5)	(28.9)
Restructuring costs	(b)	(9.9)	(2.0)
Financial commissions		(0.6)	(0.6)
Impact of equity affiliates		0.5	(0.3)
Other non-recurring items	(c)	(47.9)	(0.8)
Consolidated Operating Income incl. IFRS 16		7.9	123.8

a) Amortisation of allocated goodwills includes €(17.0) million pertaining to SAG in H1 2020 (€(20.6) million in H1 2019).
b) In H1 2020, restructuring costs mostly pertained to Oil & gas services, for €(3.9) million, to the United Kingdom, for €(3.9) million and to the Netherlands for €(1.6) million.
c) In H1 2020, other non-recurring items mainly reflect the impact of the disposal of SPIE UK's mobile maintenance business (€ (44.1) million), a restatement made pursuant to IFRIC 21 (€ (2.4) million) and costs related to the "Share For You 2019" employee shareholders plan, in accordance with IFRS 2, for € (1.0) million.

In 2019, other non-recurring items mainly corresponded to a restatement made pursuant to IFRIC 21 (€ (2.3) million) and to the recognition of a cost related to the performance share plan allocation, in accordance with IFRS 2 (€(2.4) million).

Reconciliation between adjusted net income and reported net income

In millions of euros	H1 2020	H1 2019R
Adjusted net income	38.8	81.5
Amortisation of allocated goodwill	(27.5)	(28.9)
Restructuring costs	(9.9)	(2.0)
Non recurring items and others	(47.4)	(1.1)
Normative tax	4.5	0.0
Net income from discontinued operations	(0.3)	(7.1)
Reported net income	(41.7)	42.4

Net debt

In millions of euros	June 30th , 2020	June 30th, 2019	Dec 31st , 2019
Loans and borrowings as per balance sheet	2,536.0	2,624.6	2,471.5
Deduct debt on operating and financial leases (IFRS 16)	(349.2)	(341.7)	(340.4)
Capitalised borrowing costs	13.0	16.0	14.3
Accrued interests and others	(6.3)	(8.7)	(23.5)
Gross financial debt (a)	2,193.5	2,290.2	2,121.9
Cash management financial assets as per balance sheet	2.3	2.5	2.8
Cash and cash equivalents as per balance sheet	726.1	437.1	869.2
Gross cash (b)	728.4	439.6	872.0
Consolidated net debt (a) - (b)	1,465.1	1,850.7	1,249.9
Net debt in discontinued activities	0.4	-	1.0
Unconsolidated net debt	-	(8.4)	-
Published net debt excluding IFRS 16	1,465.5	1,842.3	1,250.9
Pro forma EBITDA excluding IFRS 16	404.3	468.8	470.5
Leverage excluding IFRS 16	3.6x	3.9x	2.7x

Add debt on operating and financial leases – continued activities	349.2	341.7	340.4.
Add debt on operating and financial leases – discontinued activities	-	7.6	-
Net debt including IFRS 16	1,814.7	2,191.6	1,591.3.
Pro forma EBITDA including IFRS 16	475.5	556.3	555.2.
Leverage including IFRS 16	3.8x	3.9x	2.9x.

Cash Flow statement – Management accounts

In millions of euros	H1 2020 excl. IFRS 16	IFRS 16 impacts	H1 2020 incl. IFRS 16	H1 2019 excl. IFRS 16
EBITA	91.0	2.3	93.3	156.3
Depreciation	25.3	68.9	94.2	26.9
Capex	(26.5)	-	(26.5)	(20.2)
Change in Working Capital and Provisions	(197.0)	(0.3)	(197.3)	(460.9)
Operating Cash Flow	(107.3)	70.9	(36.4)	(297.9)
Taxes paid	(32.6)	-	(32.6)	(34.6)
Net interest paid	(45.2)	(3.9)	(49.1)	(32.5)
Restructuring and discontinued operations	(2.3)	(0.1)	(2.1)	(17.2)
Free Cash Flow	(187.3)	67.2	(120.1)	(382.1)
Acquisitions & disposals	(28.3)	1.7	(26.6)	(45.5)
Dividends	-	-	-	(63.8)
FX impacts	0.4	1.3	1.8	0.6
Other	0.5	(79.0)	(78.5)	(2.4)
Change in net debt	(214.7)	(8.8)	(223.5)	(493.2)

Cost of bank debt facilities

The table below presents the costs of bank facilities currently in place (€600 million term loan and €600 million revolving credit facility). These costs are margins added to EURIBOR (or any other applicable base rate) and vary with year-end leverage ratio. In addition, a utilisation fee ranging from 0.10% p.a. to 0.40% p.a. applies to the revolving credit facility.

Leverage ratio	Term loan	RCF
Higher than 4.0x	2.250%	1.950%
Higher than 3.5x up to 4.0x	2.000%	1.600%
Higher than 3.0x up to 3.5x	1.700%	1.300%
Higher than 2.5x up to 3.0x	1.550%	1.150%
Higher than 2.0x up to 2.5x	1.400%	1.000%
Up to 2.0x	1.250%	0.850%