SII : First half financial report 2020/2021

Interim management

report

Fiscal 2020

2021

1st Half Period to

September 30, 2020

Contents

• INTERIM MANAGEMENT REPORT, 1ST HALF FISCAL 2020-2021 (PERIOD FROM APRIL 1ST TO SEPTEMBER 30, 2020)

1.1	A word from the chairman of the Management Board	4
1.2	Observations relating to the period's business and highlights of the period	4
1.3	Group performances	5
1.4	Fiscal 2020-2021 first half results	7
1.5	Risks	7
1.6	Information concerning related-party transactions	8
1.7	Outlook	8
1.8	Post closure events	8

• CONSOLIDATED FINANCIAL STATEMENTS ON 9/30/2020

2.1	Consolidated financial statements	10
2.2	Comprehensive consolidated income statement	11
2.3	Consolidated cash-flow statement	12
2.4	Consolidated statement of changes in equity	13
2.5	Accounting principles	13
2.6	Significant accounting methods	14
2.7	Consolidated entities	23
2.8	Intangible assets	24
2.9	Goodwill	24
2.10	Tangible assets	25
2.11	Other financial assets	25
2.12	Deferred tax assets and liabilities	26
2.13	Operating receivables	26
2.14	Assets and liabilities related to customer contracts	27
2.15	Other current and non-current assets	27
2.16	Cash and cash equivalents	27
2.17	Issued capital and reserves	28
2.18	Financial liabilities and debt	29
2.19	Provisions	30
2.20	Operating liabilities	30
2.21	Other current liabilities	30
2.22	Payroll expenses	31
2.23	Depreciation and amortization expenses	31
2.24	Additions to provisions	31
2.25	Other non-current operating expenses	31
2.26	Net financial income	32
2.27	Tax expenses	32
2.28	Earnings per share	33
2.29	Segment reporting	33
2.30	Off-balance sheet commitments	33
2.31	Events subsequent to the end of the period	34
2.32	Average headcount	34

• AUDITORS' REPORT

Auditors' report

36

• STATEMENT BY THE PERSON RESPONSIBLE FOR THE INTERIM FINANCIAL REPORT

Statement by the person responsible for the interim financial report

37

This document is a full free translation of the original French text. In case of discrepancies, the French version shall prevail.

Interim1 management

report,

1st Half

Fiscal 2020-2021

(Period from April 1st to September 30, 2020)

1.1	A word from the Chairman of the Management Board	4
1.2	Observations relating to the period's business and highlights of the period	4
1.3	Group performances	5
1.4	Fiscal 2020-2021 first half results	7
1.5	Risks	7
1.6	Information concerning related-party transactions	8
1.7	Outlook	8
1.8	Post closure events	8

1.1. A word from the chairman of the Management Board

Eric Matteucci

Chairman of the

Management Board

In a situation of crisis linked to Covid-19, affecting the entire start of the fiscal year, the SII Group saw a measured decline in the first half of the year, sustained by its international activities. After a first quarter hit hard by a strict lockdown, the second quarter showed favorable signs of a recovery in activity: the teams were able to seize on opportunities at the end of the first lockdwon in numerous sectors where the SII Group is present.

While we must remain cautious given the still changing situation regarding the health crisis and the measures taken by the various governments, the SII Group is confident that it will lekely see a improvement in the third quarter compared to the second quarter of this fiscal year.

1.2. Observations relating to the period's business and highlights of the period

SII Group registered revenues of €301.21m during the first half (period ended on September 30, 2020) of the 2020- 2021 financial year, down 7.6% at current rate (-5.9% at constant rate) compared to the same period of the previous.

In France, SII Group registered revenues of €140.2m, down by 17.1% compared to the first half 2019-2020. The health and economic crisis has mainly affected the aeronautical, automotive, transport and tourism sectors. The lockdown created major organizational difficulties for the continuation of activities in the defense sector during this semester. Sectors such as telecommunications and energy have generally resisted since the start of the crisis. After a more than 20% decline in activity in the first quarter, the second quarter showed a better performance, a 13.2% decrease compared to the second quarter in the previous financial year. The diversity of the business sectors in which the group intervenes and the gradual recovery of business in defense sector has favored this incipient recovery.

Overseas, the half-yearly turnover shows 6.2% growth at constant exchange rates (2.7% at current rates). The situation remains very varied according to the scaleof the health crisis and the group's sectors of intervention in each country. Difficulties appeared in contries where the SII group is exposed to the aeronautical sector (Germany, Canada, the Netherlands), the automotive sector (Germany, Spain, Czech Republic), transport and tourism sector (Spain). Poland, where exposure to different sectors is very diversifie, registered exceptional resistance (+20.8% at constant rates). Three other countries supported international performance with a rate of growth in two figures (at constant rates): Romania (+13.5%), Colombia (+19.8%) and United-Kingdom (+50.6%).

La The diversity of the business sectors in which the group intervenes has favored this incipient recovery. In the first half of the year, activity was drivent by both the Banking/ Insurance and Telecommunications sectors. The Aerospace/Defense sector, hit hard by the crisis, remains one of the main contributors to our business in France, with activitivities in the Defense sector gradually managing to pick up after the initial lockdown. During this first semester, several new referencing and new scope of activities were won in different sectors.

Groupe SII -Interim management report - 30 Septembre 2020

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