Colas : 1st Quarter 2023 Results

Paris, May 16, 2023

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1st Quarter 2023 Results

• Order backlog at a record level of €13 billion, up 10% on the prior year at constant exchange rates and excluding major acquisitions and disposals
• Revenue at €2.6 billion, a 9% increase at constant scope and exchange rates compared to Q1 2022

Reminder: given the highly seasonal nature of its businesses, the Colas Group's Q1 figures are not representative of full year results.

• Current operating profit from activities at -€301million compared to -€291 million in Q1 2022
• Net profit attributable to the Group at -€253million compared to -€232 million in Q1 2022
• Free cash flow at -€324million compared to -€308 million in Q1 2022
• Net debt at €769 million compared to €603 million at end of March 2022

The Board of Directors of Colas, chaired by Mr. Frédéric Gardès, met on May 12, 2023 to review the accounts closed as of March 31, 2023 and outlook for the current year.

Consolidated key figures

						Change		At constant
in millions of €	Q1 2022		Q1 2023				scope and
			vs 2022		exchange
								rates
Revenue	2,406	2,613	+9%	+9%
of which France	1,259	1,301	+3%	+3%
of which International	1,147	1,312	+14%	+16%
Current operating profit / (loss) from activities(a)	(291)		(301)			-10
Margin from activities	-12.1%		-11.5%			+0.6pts
Current operating profit / (loss)	(293)		(303)			-10
Operating profit / (loss)	(293)		(307)(b)		-14
Net profit attributable to the Group	(232)		(253)		-21
Free cash flow	(308)		(324)			-16
Net surplus cash / (Net debt)	(603)		(769)			-166

1. see definition in glossary.
2. of which €4M of non-current expenses related to the reorganization of road activities in the Indian Ocean.

Order backlog

Order backlog at the end of March 2023 totaled a record €13 billion, up 8% year-on-year and up 10% at constant exchange rates and excluding major acquisitions and disposals.

Order backlog in Mainland France is up 11% year-on-year at €3.7 billion.

Order backlog in Colas' international units and overseas France amounted to €9.2 billion, up 6% year- on-year (+9% at constant exchange rates and excluding major acquisitions and disposals). A major part of the increase comes from Colas Rail and the Abidjan metro contract in Côte d'Ivoire, which was secured in the first quarter of 2023 for nearly €330 million.

The International units and Overseas France represent 71% of Colas' total order backlog, compared to 72% at the end of March 2022.

Revenue

Consolidated revenue for the first quarter of 2023 amounted to €2.6 billion, up 9% compared to Q1 2022 (+9% at constant scope and exchange rates). In France, revenue was up +3% at €1.3 billion. The Group's international units recorded a sharp increase in revenue at €1.3 billion (+14%, and +16% at constant scope and exchange rates).

Roads

Revenue for Q1 2023 amounted to €2.3 billion, up 9% and 10% at constant scope and exchange rates compared with the first quarter of 2022.

• In the France-Indian Ocean zone, revenue was up a slight 4% year-on-year (+3% at constant scope and exchange rates).
• In the EMEA zone (Europe, Middle East, Africa), revenue was up 11% at constant scope and exchange rates, boosted by good levels of business in Europe.
• In the United States and in Canada, revenue increased significantly (respectively +19% and +20% at constant scope and exchange rates). The sharp jump does not necessarily reflect the year as a whole given the strong seasonal nature of business in the two geographies.
• In the Asia-Pacific zone, revenue jumped a strong 43% at constant scope and exchange rates, boosted by good levels of business in Australia.

Railways and Other Activities

Revenue for the Railways and Other Activities was up 6% year-on-year (+8% at constant scope and exchange rates), mainly owing to Colas Rail's business outside of France.

Financial performance

Current Operating Profit from Activities (COPA) continues to benefit from the impact of the action plans implemented during 2022 to combat inflation. In addition, during the first quarter, the Group sold Branscome, a Colas company in the USA, with the aim of rationalizing its businesses. This had a negative impact on COPA, which amounted to -€301 million in the first quarter of 2023.

Income from joint ventures and associates amounted to €13 million, up €6 million from Q1 2022. This marked improvement was driven by the contribution of Tipco Asphalt, which benefited from favorable conditions in its domestic market in Thailand.

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Net profit attributable to the Group amounted to -€253 million, compared with -€232 million in Q1 2022, reflecting a decrease in operating profit as well as an increase in financial expense due to changes in interest rates.

Net debt

Free cash flow amounted to- €324 million compared with -€308 million for the first quarter of 2022.

Free cash flow after changes in working capital requirements from activities amounted to -€456 million in Q1 2023, an increase of €65 million compared to Q1 2022, due in particular to a smaller increase in working capital requirements.

Net debt at March 31, 2023 was €769 million compared to €292 million at the end of December 2022. The decrease is typical in the first quarter due to the strong seasonal nature of the Group's businesses. Net debt declined by €93 million less in Q1 2023 than Q1 2022, mainly due to the smaller increase in working capital requirements and the disposal of Branscome in the United States.

CSR Commitments

Colas has begun launching its new carbon footprint calculation methodology, which estimates CO2 emissions based on physical flows, where available, or purchases, instead of being based on revenue alone. By using data from the Group's financial reporting tools, the new system provides more accurate calculations for Scope 3a. In Colas' main subsidiaries, managers can access carbon footprint data from their operational units and track changes and trends over time using a visualization tool, making it easy to identify the main sources of greenhouse gas emissions, set appropriate targets and prioritize action levers for decarbonization.

Colas also continues to raise awareness of climate issues among its employees through the Climate Fresco workshop, which had more than 10,000 participants in the first quarter of 2023. In addition, Colas has created a second workshop, the Low Carbon Way Fresco, dedicated to the climate impact of the Group's activities.

Outlook

In an unstable environment marked by inflation, rising interest rates and currency volatility, the Colas Group has solid fundamentals and will continue to benefit from the positive impact of the transformation projects it has undertaken.

Colas confirms its target of increasing current operating profit from activities (COPA) and current operating profit in 2023 compared with 2022.

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Revenue at March 31, 2023 by business segment

in millions of €	Q1 2022		Q1 2023		Change vs	At constant
		2022	scope and
					exchange rates
Roads France - Indian Ocean	1,175		1,218		+4%	+3%
Roads EMEA	495		544		+10%	+11%
Roads USA	188		220		+17%	+19%
Roads Canada	137		162		+18%	+20%
Roads Asia - Pacific	97		139		+43%	+43%
Total Roads	2,092				+9%	+10%
	2,283
Railways and Other Activities	311		329		+6%	+8%
Parent company	3		1		ns	ns
TOTAL	2,406		2,613		+9%	+9%

Colas (www.colas.com)

Colas, a subsidiary of the Bouygues Group, has one mission: to imagine, build and maintain sustainable transport infrastructure. Backed by a network of 900 construction business units and 3,000 material production units in more than 50 countries on five continents, the Group's 58,000 employees act locally to connect communities and foster exchanges for today and tomorrow. Colas' ambition is to be the world leader in innovative, sustainable mobility solutions.

In 2022, consolidated revenue at Colas totaled €15.5 billion (60% outside of France).

FOR FURTHER INFORMATION:
Fabienne BOULOC Tel. [phone]	Hélène NIYONZIMA
[e-mail]
Fanny NOLIN Tel. [phone]	Mélodie LAMIAUX Tel. [phone]
[e-mail]	[e-mail]

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Glossary

Order backlog: the amount of work still to be done on projects for which a firm order has been taken, i.e. the contract has been signed and has taken effect (after notice to proceed has been issued and suspensory clauses have been lifted).

Changes in revenue at constant scope and exchange rates:

• at constant exchange rates: change after translating foreign-currency sales for the current period at the exchange rates for the comparative period;
• at constant scope: change in revenue for the periods compared, adjusted as follows:
• • for acquisitions, by deducting from the current period those sales of the acquired entity that have no equivalent during the comparative period;
  • for divestments, by deducting from the comparative period those sales of the divested entity that have no equivalent during the current period.

Current operating profit from activities (COPA): current operating profit before amortization of intangible assets recognized from acquisitions.

Free Cash Flow: net cash flow (determined after (i) cost of net debt, (ii) interest expense on lease obligations and (iii) income taxes paid), minus net capital expenditure and repayments of lease obligations. It is calculated before changes in WCR (working capital requirement).

Net surplus cash/(Net debt): the aggregate of cash and cash equivalents, overdrafts and short-term bank borrowings, non-current and current debt, and financial instruments. Net surplus cash/(Net debt) does not include non-current and current lease obligations. A positive figure represents net surplus cash and a negative figure represents net debt.

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