AUBAY: 2022 Half-Yearly Results: Record half-year operating margin from ordinary activities: 10.3% - Net income attributable to owners of the parent: EUR 17.3 million

In € thousands	H1 2022	H1 2021	Change
Revenue	258,480	233,095	+10.9%
Operating profit from ordinary activities	26,601	22,457	+18.5%
As a % of revenue	10.3%	9.6%
Cost of performance shares	(635)	(527)
Other operating income and expenses	(941)	(613)
Operating profit	25,025	21,317	+17.4%
Financial income/(expense)	(565)	69
Tax (expense)/income	(7,091)	(5,776)
Net income from consolidated companies	17,369	15,610	+11.3%
As a % of revenue	6.7%	6.7%
Net income attributable to owners of the parent	17,330	15,583
Earnings per share	€1.31	€1.18
Headcount	7,442	6,888

Aubay's Board of Directors, which met on September 14, 2022 under Chairman Christian Aubert, approved the consolidated financial statements for the first six months of 2022. The financial statements have been reviewed by the company's Statutory Auditors who will shortly issue their reports.

Aubay posted excellent results in the first half of 2022. Organic growth reached 10.9%, representing twice the medium-term objective.

Double-digit half-year operating margin from ordinary activities

Operating margin from ordinary activities set a new record for a first-half performance, exceeding 10% for the first time at 10.3%. Operating profit from ordinary activities rose 18.5% to €26,601 thousand. This sharp increase was attributable to a robust performance, with a 95.2% consultant utilization rate compared to 93.8% in first-half 2021, and a favorable calendar effect during the period in terms of working days. It can also be explained by contained salary raises, which were offset by an increase in sales prices.

The Group's operating margin from ordinary activities improved across all regions and came in at 8.7% for operations in France and 11.9% for operations overseas, compared with 8.2% and 11.1%, respectively, in 2021.

Operating profit of €25 million

Operating profit rose by 17.4%, after taking into account the cost of performance shares for €0.6 million and a net expense of €0.9 million under "Other operating income and expenses", primarily comprising restructuring expenses.

Sharp increase in net income attributable to owners of the parent (6.7% of net margin)

Net income attributable to owners of the parent came in at €17.3 million, a record half-year high for the Group. The tax expense of €7.1 million resulted in an average tax rate of 29%.

Net cash (excluding rental liabilities) stable at €64 million, after dividend payment

Cash flow stood at €29.1 million or 11.3% of revenue, compared with €25.7 million in 2021. The change in WCR amounted to a negative €17.8 million compared to a negative €14.5 million for the same period of the previous year, in line with the strong growth in revenue and the usual seasonal nature of our businesses. After taking the €10.1 million dividend payout in May into account, net cash was stable at €64 million at June 30, 2022, and should significantly increase during the second half of the year.

Proposed interim dividend of €0.50

In light of the strong increase in net income and the Group's excellent financial position, the Board of Directors has decided to pay an interim dividend of €0.50 per share in respect of 2022. The interim dividend will be paid on November 10, 2022.

Outlook for 2022

Demand from our clients remains strong, as in the first half of the year. The productivity rate has also remained high. Headcount is expected to grow as much in the third quarter as in the first half of the year. However, the seasonal effect will be less favorable in the second half of the year (two fewer working days than in H2 2021).

In light of the above, Aubay reaffirms its objectives and is now aiming to achieve the top end of its revenue target, i.e., €513 million, a 9% increase. The target for operating margin from ordinary activities remains unchanged at between 9.5% and 10.5%.

Aubay will publish its 2022 third-quarter revenue on October 19, 2022 after the close of trading.

Glossary

Organic revenue growth: This refers to growth calculated for a constant scope of activity for a given period, excluding revenues from companies that were acquired or sold during the period. As Aubay conducts most of its business in the euro zone, any impact from changes in exchange rates is minimal.

	2022
Organic growth	+10.9%
Impact of changes in scope	0
Growth as reported	+10.9%

Operating profit from ordinary activities: this indicator corresponds to operating profit before the cost of free shares and other income and expenses that are unusual, abnormal or infrequent and that are booked separately in order to facilitate understanding of an entity's recurring operating performance.

Operating margin from ordinary activities: this indicator, which is expressed as a percentage, is the ratio of operating profit from ordinary activities to revenue.

Net debt or net cash (excluding rental liabilities): this indicator represents the difference between an entity's cash and debt. If the result is negative, it is referred to as net debt. If it is positive, it is referred to as net cash.

About Aubay

Aubay is a digital services company working alongside some of the biggest names in the Banking, Finance, Insurance, Manufacturing, Energy, Transport and Telecoms sectors. With 7,442 employees in seven countries (France, Belgium, Luxembourg, Italy, Spain, Portugal and the United Kingdom) at June 30, 2022, Aubay generated revenue of €470.6 million in 2021.

Euronext, Compartment: B - ISIN FR0000063737-AUB - Reuters: AUBT.PA - Bloomberg AUB:FP

Contacts

Amaury Dugast - Actus Finance - Tel.: [phone] - [e-mail]

David Fuks - Co-Chief Operating Officer - Finance Department - Tel.: [phone] - E-mail: [e-mail]

APPENDICES

Statement of financial position as of June 30, 202 2
ASSETS (in € thousands)	June 30, 2022	Dec. 31, 2021
Goodwill	131,305	131,305
Intangible assets	894	917
Property, plant & equipment	4,422	4,156
Right of use relating to leases	15,809	14,152
Equity-accounted investees	-	-
Other financial assets	2,070	2,102
Deferred tax assets	2,321	2,653
Other non-current assets	360	354
NON-CURRENT ASSETS	157,181	155,639
Inventories and work in progress	772	491
Assets on contracts	44,235	32,127
Trade receivables	118,775	111,359
Other receivables and accruals	37,668	37,082
Marketable securities	707	1,026
Cash at bank and in hand	66,459	78,461
CURRENT ASSETS	268,616	260,546
TOTAL ASSETS	425,797	416,185
EQUITY AND LIABILITIES (in € thousands)	June 30, 2021	Dec. 31, 2021
Capital	6,634	6,611
Additional paid-in capital and consolidated reserves	214,253	188,740
Net income attributable to owners of the parent	17,330	34,409
Shareholders' equity attributable to the Group	238,217	229,760
Minority interests	187	191
SHAREHOLDERS' EQUITY	238,404	229,951
Borrowings and financial liabilities: non-current portion	1,903	2,155
Rental liabilities due in more than 1 year	10,944	10,198
Deferred tax liabilities	1	1
Provisions for contingencies and expenses	6,367	6,924
Other non-current liabilities	192	74
NON-CURRENT LIABILITIES	19,407	19,352
Borrowings and financial liabilities: current portion	1,774	2,500
Rental liabilities due within 1 year	5,257	4,366
Trade and other payables	36,646	35,981
Contract liabilities	13,701	19,913
Other current liabilities	110,608	104,122
CURRENT LIABILITIES	167,986	166,882
TOTAL EQUITY AND LIABILITIES	425,797	416,185

Consolidated income statement for first-half 2022

(in € thousands)	First-half 2022	%	First-half 2021	%
Revenue	258,480	100%	233,095	100%
Other operating income	120		200
Purchases used in production and external charges	(49,103)		(46,850)
Staff costs	(176,617)		(158,452)
Taxes other than on income	(2,197)		(1,935)
Amortization, depreciation and provisions	(3,925)		(3,758)
Change in inventories of work in progress and finished goods
Other operating income and expenses	(157)		157
Operating profit from ordinary activities	26,601	10.3%	22,457	9.6%
Expenses linked to restricted share units and similar awards	(635)		(527)
Current operating profit	25,966	10.0%	21,930	9.4%
Other operating income and expenses	(941)		(613)
Operating profit	25,025	9.7%	21,317	9.1%
Income from cash and cash equivalents
Net borrowing costs	(244)		(260)
Other financial income and expenses	(321)		329
Financial income/(expense)	(565)		69
Income tax expense	(7,091)	29%	(5,776)	27%
Income from equity-accounted investees
Net income before results of discontinued operations or assets held for sale	17,369		15,610
Net income after tax of discontinued operations or assets held for sale
Net income	17,369	6.7%	15,610	6.7%
Attributable to owners of the parent	17,333		15,583
Minority interests	39		27
Basic weighted average number of shares	13,252,256		13,208,860
Earnings per share	1.31		1.18
Diluted weighted average number of shares	13,332,256		13,283,360
Diluted earnings per share	1.30		1.17

Cash flow statement for first-half 2022
(in € thousands)	First-half 2022	First-half 2021
Consolidated net income (including non-controlling interests)	17,368	15,660
Income from equity-accounted investees
Net depreciation, amortization and provisions and right of use relating to leases	3,816	2,810
Non-cash expenses and income relating to share-based payments	635	527
Other non-cash items
Dividend income	(57)
Gains and losses on disposals of fixed assets	(6)	484
Cash flow after net interest expense and tax	21,756	19,481
Net borrowing costs	244	260
Tax expense (including deferred taxes)	7,091	5,726
Cash flow before net interest expense and tax (A)	29,276	25,467
Income tax payments (B)	(8,798)	(4,852)
Change in WCR ©	(17,463)	(14,300)
Net cash provided by (used in) operating activities (D) = (A+B+C)	2,830	6,315
Outflows for the acquisition of tangible and intangible fixed assets	(1,102)	(460)
Inflows from the disposal of tangible and intangible fixed assets	6
Outflows for the acquisition of financial assets	(4)
Inflows from the disposal of financial assets
Change in loans and advances granted	50	248
Disbursements (cash) related to business combinations, net of cash and cash equivalents
Dividends received	57
Net cash provided by (used in) investing activities (E)	(993)	(212)
Proceeds from capital increases
Amounts received upon the exercise of stock options
Purchases of treasury shares for cancellation
Purchases of and proceeds from the sale of treasury shares
Dividends paid in the period:
- Net dividends paid to parent company shareholders	(10,075)	(4,340)
- Dividends paid to the non-controlling shareholders of consolidated companies	(44)
Inflows from new borrowings		115
Repayment of loan debt	(1,272)	(2,168)
Repayment of rental liabilities	(2,818)	(2,165)
Net interest payments	(244)	(260)
Purchase of non-controlling minority interests
Other financial cash flows
Net cash provided by (used in) financial activities (F)	(14,453)	(8,818)
Effects of changes in foreign exchange rates (G)	(11)	34
Change in net cash (D+E+F+G)	(12,627)	(2,681)
Cash and cash equivalents at beginning of period	79,056	52,205
Cash and cash equivalents at end of period	66,429	49,524

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