The Altrad Group Full-Year Results for the 12 Month Period Ended August 2017

The Altrad Group continues to grow and reposition itself as a leading
global provider of industrial services

MONTPELLIER, France–(BUSINESS WIRE)–

Highlights

• Strategic acquistion of Cape Plc for £332 million supports the
  continued repositioning of the Altrad Group (“Altrad” or the “Group”)
  as a global leader in critical construction and maintenance services
  to industry.
• With over 39,000 employees, the Altrad Group consists the Cape,
  Hertel, Prezioso and legacy Altrad teams, focused on supporting the
  Oil and Gas, Energy, Industrial and Construction sectors across 5
  continents.
• Pro Forma revenues for the year, following the recent Cape
  acquisition, amount to c. €3.4 billion*, with Adjusted EBITDA of
  €426m*.
• Pro Forma net profit for the Group was €111m*.
• UK operations form an important component to Altrad’s growth strategy,
  with c.10,000 employees and revenues of €925m.

* Pro Forma: incl. 12 months of Cape Plc contribution

After the acquisitions of Hertel in 2015 and Prezioso in 2016, followed
in September 2017 by the successful public offer for the Cape group,
Altrad has entered a new phase of evolution.

Today, it has become one of the world leaders in the provision of
services to industry.

This strategic development is the third stage in a history that began in
1985 with the founding of the group by Mohed Altrad.

Initially specialised in the manufacture of construction equipment,
Altrad’s second stage of development took place in the hire sector,
accompanied by a change of scale.

Pursuing a policy of dynamic growth and diversification of activities,
at the end of the third major strategic move in its history, Altrad has
become a group primarily oriented towards services to industry, and has
retained the strength of manufacturing and availability of hire
facilities of its previous lines of business.

Thus, the group now offers its customers:

– A full range of services to industry, in the framework of facility
maintenance and new construction, including access, insulation,
corrosion protection, the engineering and installation of mechanical
systems, as well as specialised services (inspection, environment). This
offer, mainly aimed at major industrial customers in the Oil & Gas,
Energy, Process Industries (including Chemicals and Petrochemicals) and
Construction sectors, is deployed throughout Europe as well as in
Africa, Asia, Australia and the Middle East.

– The service activity, which largely predominates, now accounts for 82%
of the group's revenues.

– A wide range of construction equipment (scaffolding, props, shoring,
formwork, concrete mixers, etc.) for hire and sale, representing 18% of
the group's revenues.

Recent commercial successes have confirmed the group's strategic
choices and the relevance of its service offering, including winning
major contracts for the renovation of Austerlitz railway station in
Paris, maintenance of the Ineos sites in Grangemouth (UK), the
construction of an acetylene manufacturing unit for BASF (Germany)….

With a turnover of more than 3.4 billion euros and 39,000
employees worldwide, the Group has achieved world leadership in its
fields of activity. It has a resilient business profile, due to the
predominance of high recurring maintenance activities and its presence
in various geographical areas (United Kingdom, Continental Europe, Asia,
Australia, Africa and the Middle East) and in several business sectors
(Oil & Gas, Energy, Construction, Process Industries), reducing its
exposure to market risks and cyclical fluctuations.

Developments by business line naturally reflect the significant
growth in services, but also the resilience of the manufacturing, hire
and sales activities for construction equipment and public authorities.

EBITDA performance has improved, representing 15.1% of sales
compared to 13.5% at the end of August 2016. It reflects the efforts
made in terms of operational efficiency and the streamlining of central
structures ("LEAN" model).

Results – current and net operating income – also show strong
growth. They reflect the constant requirement for profitability, the
implementation of intra-group synergies and economies of scale.

Free cash flow generated by the business has increased
significantly, reaching an EBITDA conversion rate of 59%. It is the
result of work carried out to optimise working capital requirements and
efforts to make better use of capital, in particular by pooling
equipment between the various entities of the group.

Changes in shareholders' equity and financial structure reflect
the development strategy implemented and the constant concern to
maintain net debt at a reasonable level, leaving room for sustainable
and balanced growth.

Safety remains the number one concern of every Altrad employee up
to the Chairman. Our ambition is to go beyond quantified objectives
(zero accidents) and create a genuine safety culture. During the past
financial year, we launched our new Safety brand "Beyond Zero" and
inaugurated our safety excellence centre, in charge of leading our
safety teams, identifying and sharing best practices, implementing
reporting mechanisms, creating training materials, conducting on-site
audits…

Ethics is one of the essential conditions in conducting our
business. The Altrad Group has implemented a Code of Conduct, applicable
to all its employees, which complies with the strictest laws of the
countries in which it operates (Sapin II law, UK Bribery Act, FCPA,
etc.). The group’s legal director acts as Compliance Officer in
conjunction with the Group Ethics Committee.

Risk management is an essential part of the group's life. As a
family-owned company committed to sustainable growth, the Group pays
particular attention to controlling its main risks, whether
macro-economic, political, cyclical, financial or operational.

A risk map is updated every year and presented to the Board of
Directors, along with actions to reduce exposure.

PROSPECTS

The Group's presence in different markets and its broad geographical
coverage should enable it to take full advantage of the opportunities
that will arise.

Thus, large-scale industrial installations are under construction or
planned on every continent, whether in Oil & Gas (LNG terminals,
offshore platforms), energy (nuclear power stations), the chemical
industry, etc. Major refurbishment programmes are also being launched by
operators to extend the life of existing sites.

A recovery in construction-related activity is being seen in Continental
Europe, compensating for the foreseeable slowdown in the United Kingdom
in this sector, given the potential impact of Brexit.

Emerging countries (Asia, Africa…) are experiencing sustained growth.

With its strong leadership positions, the group is ideally placed to
take advantage of these development opportunities and assert itself as a
key player in its markets. Its sound financial structure, stable
shareholding, efficient management and the rich diversity of cultures
represented in its midst are all assets for its future success.

Notes to editors

The Altrad Group is a global leader in providing innovative, safe and
reliable services and goods to customers across the industrial, energy
and construction sectors. With a presence in more than 100 countries,
across 5 continents, Altrad employs more than 39,000 employees and has
pro forma revenues of c. €3.4 billion.

Contacts

GROUPE ALTRAD
Ran Oren
tel +33 (0) 4 99 64 06 05
fax +33
(0)4 67 50 53 66
Internet : http://www.altrad.com
email :
[email protected]