Compagnie D'Entreprises CFE S A : Quarterly information at 31 March 2021

PRESS RELEASE

Thursday 20 May 2021 - 7h00 CET

regulated information

Quarterly information at 31 March 2021

Thursday 20 May 2021 - 7h00 CET

Regulated information

Quarterly information at 31 March 2021

• Temporary decrease of DEME's revenue in the first quarter, but clear increase expected over the full year compared to 2020
• Order book increases 3.7% to € 6.3 billion
• Stable debt position
• Outlook 2021 confirmed: increase of revenue and net income compared to 2020 without returning to the levels of 2019 yet

1. Key Figures

	Revenue	31/03/2021		31/03/2020	Variation
	In million €
	Dredging, Environment,	479.6	534.9	-10.3%
	Offshore and Infra
	Contracting	235.1	221.1	+6.3%
	Other segments and	27.4	4.9	n.s.
	eliminations
	Total	742.1	760.9	-2.5%
	Order book	31/03/2021	31/12/2020	Variation
	In million €
	Dredging, Environment,	4,750.0	4,500.0	+5.6%
	Offshore and Infra
	Contracting	1,460.9	1,492.6	-2.1%
	Other segments	60.0	56.5	+6.2%
	Total	6,270.9	6,049.1	+3.7%
	Net financial debt	31/03/2021		31/12/2020	Variation
	In million €
	Dredging, Environment,	461.6	489.0	-5.6%
	Offshore and Infra
	Other segments	156.4	112.4	+39.1%
	Total	618.0	601.4	+2.8%

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Thursday 20 May 2021 - 7h00 CET

Regulated information

2. Analysis by segment

Dredging, Environmental, Offshore and Infra segment

KEY FIGURES

	In million €	31/03/2021		31/12/2020	31/03/2020
Revenue	479.6	2,195.8	534.9
Net financial debt	461.6	489.0	730.3
Order book	4,750.0	4,500.0	3,415.0

REVENUE

DEME's revenue in the first quarter of 2021 amounted to € 479.6 million, down 10.3% on the first quarter of 2020.

The Dredging division reported € 249.1 million revenue in the first quarter of 2021, which is slightly up on the first quarter of 2020. In Egypt, the Abu Qir project was off to a successful start: several trailing suction hopper dredgers are deployed on the first phase of the project, and will be joined very soon by several cutters, including the 'Spartacus'. In Germany, DEME completed the contract for the deepening and widening of the Elbe in mid-March, while maintenance dredging continues. In Poland, the widening of the access channel to the port of Swinoujscie is progressing at a swift pace.

The Offshore division reported, as anticipated, a lower volume of business in the first quarter of 2021:

• 138.7 million compared to € 202.7 million in the first quarter of 2020. The main projects that will be carried out in 2021 are still in the start-up phase, more particularly those for the offshore wind farms of Saint-Nazaire (France), Hornsea 2, Triton Knoll and Dogger Bank (United Kingdom).

The Infra division reported € 52.1 million revenue in the first quarter of 2021 (2.2 % up on the first quarter of 2020). Work on the Fehmarnbelt link (Denmark) officially started on 1 January 2021, and should take just under nine years to complete.

The negative impact of the health crisis is steadily diminishing in Europe, but remains significant in other parts of the world, particularly in India, South America, Africa and Papua New Guinea.

ORDER BOOK

As of 31 March 2021, the order book amounted to € 4.75 billion, a new record level.

During the first quarter, DEME won the contract for the installation of the water intake points of the nuclear power station of Hinckley Point (United Kingdom). The order is worth more than € 200 million.

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Thursday 20 May 2021 - 7h00 CET

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Several major contracts are not included in the order book as of 31 March 2021, since not all the conditions precedent for the start of the works have been fulfilled yet:

• the construction of the Hai Long 2, Hai Long 3 and Zhong Neng offshore wind farms situated off the coast of Taiwan;
• EPCI contract for the design, construction, transport and installation of the 28 monopile foundations for the German Arcadis Ost 1 offshore wind farm;
• the transport and installation of the wind turbines of the Vineyard Wind 1 offshore wind farm with a capacity of 800 MW and situated off the East Coast of the United States. It is the first contract won in the United States;
• the realisation of the Scheldt Right Bank project, which is part of the Oosterweel link in Antwerp.

INVESTMENTS

Investments in the first quarter amounted to € 49.4 million.

The delivery of the vessels 'Spartacus' (Smart Mega-Cutter) and 'Groenewind' (Service Operation Vessel for the maintenance of the Belgian offshore wind farms) is scheduled for the second quarter of 2021, while repairs to the 'Orion' continue and should be completed in the first quarter of 2022.

NET FINANCIAL DEBT

Given the relatively low level of investment in the first quarter of 2021 and the improved working capital requirement thanks to the receipt of down payments on projects, DEME's net financial debt decreased by 5.6% to € 461.6 million.

PATANIA II

In April 2021, GSR, a subsidiary of DEME, deployed its deep-sea robot PATANIA II at a depth of 4,500 metres in the Clarion-Clipperton fracture zone in the South Pacific. The purpose of the expedition was to test the ability of the 25-tonne caterpillar track robot to collect polymetallic nodules and to assess, in a scientific and independent manner, the impact of this collection on the marine ecosystem.

Despite an incident that occurred at the end of the mission but which was quickly resolved, the test campaign of the PATANIA II was a success: the deep-sea robot demonstrated its ability to ride, manoeuvre and collect polymetallic nodules on the seabed. The independent monitoring of the tests by scientists from 29 European institutions was also a success.

OUTLOOK 2021

DEME expects its revenue and net result to increase markedly in 2021 compared to 2020, without however attaining the level of 2019 yet.

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Thursday 20 May 2021 - 7h00 CET

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Contracting segment

KEY FIGURES

	In million €	31/03/2021		31/12/2020	31/03/2020
Revenue	235.1	911.9	221.1
Order book	1,460.9	1,492.6	1,271.4

REVENUE

Revenue for CFE Contracting in the first quarter of 2021 amounted to € 235.1 million, up 6.3% on the first quarter of 2020.

The direct impact of the pandemic was relatively limited in the first quarter and will gradually diminish as the vaccination campaign gathers momentum. Nevertheless, the galloping inflation of most prices of materials as an indirect result of the health crisis is clearly a concern.

Business shrank slightly in Construction, but grew in Multitechnics (VMA) and Rail & Utilities (MOBIX).

ORDER BOOK

The order book was stable at € 1.46 billion as of 31 March 2021.

MBG (Construction Belgium), BPC (Construction Belgium), CFE Polska and VMA reported a high order intake.

OUTLOOK 2021

For 2021, CFE Contracting expects a higher revenue and net result than in 2020.

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