2018 ANNUAL RESULTS MARCH 21, 2019...Page 5 I Annual Results 2018 –March 21, 2019 KEY FIGURES (*)...

Annual Results 2018 – March 21, 2019I

2018 ANNUAL RESULTS

MARCH 21, 2019


AGENDA

INTRODUCTION

Nicolas Dmitrieff, Chairman, Management Board

2018 FINANCIAL HIGHLIGHTS

Christophe Favrelle, Chief Financial Officer, Management Board

REVIEW OF 2018 BUSINESS AND STRATEGY

Innovation & Systems

Philippe Demigné, Innovation & Systems Director, Management Board

Environment & Energy

Stanislas Ancel, Environment & Energy Director, Management Board

CONCLUSION

Nicolas Dmitrieff, Chairman, Management Board


INTRODUCTIONNICOLAS DMITRIEFF

CHAIRMAN, MANAGEMENT BOARD


2018 FINANCIAL HIGHLIGHTS

CHRISTOPHE FAVRELLE

CHIEF FINANCIAL OFFICER


KEY FIGURES

(*) restated for the effects of IFRS 15

(in € millions)2017 2017

restated (*)2018

Order intake 543.4 521.6 736.3

Revenues 634.9 628.5 689.8

Recurring operating income 19.7 17.5 (4.3)

Operating income 22.1 19.8 2.6

Net income (attributable to owners of the parent) 22.0 20.5 32.8

Cash, net of debt 92.1 92.1 9.1


CHANGES IN SCOPE

Disposals by Bertin Technologies:

Sale of Bertin Ergonomie’s business assets (June 29, 2018) to Human Design Group, which is majority controlled by Ciclad, with the support of its management team

Sale of the multi-physical modelling and scientific IT business (December 20, 2018) to CT Ingénierie

Sale of the indirect equity interest in SELCHP (August 17, 2018)SELCHP owns a household waste-to-energy plant in London (United Kingdom) built by CNIMin 1994


(*) restated to reflect the disposal of Babcock Wanson subsidiaries in 2016

(**) restated for the effects of IFRS 15 and for the reclassification of CNIM Babcock Maroc from the Innovation & Systems segment to the Environment & Energy segment

- - - Average annual number of orders placed over the last 5 years

+41.2% from 2017+25% from the 2013 - 2017 annual average

GROUP ORDER INTAKE

515,4

143,1

316,8

683,6

335,0

509,2

136,4

131,1

257,9

156,1

186,6

227,1

651,7

274,2

574,7

839,7

521,6

736,3

2013 (*) 2014 (*) 2015 (*) 2016 2017 (**) 2018

ENVIRONMENT & ENERGY INNOVATION & SYSTEMS

(in € millions)


ORDER INTAKE ENVIRONMENT

(*) restated for the effects of IFRS15 and for the reclassification of CNIM Babcock Maroc from the Innovation & Systems segment to theEnvironment & Energy segment

(in € millions)2017

reported

2017

restated (*)2018

Turnkey plants 145.5 145.5 325.0

LAB + GEODUR 41.2 41.2 55.6

Operations 76.0 54.1 45.3

Services 89.2 94.2 83.3

TOTAL 351.9 335.0 509.2


United

Kingdom

Earls Gate

United Arab Emirates

Sharjah

ORDER INTAKE ENVIRONMENT - EPC

TURNKEY PLANTS FOR ENERGY RECOVERY FROM HOUSEHOLD WASTE OR BIOMASSAt December 31, 2018, the following contracts were attributed to CNIM but not yet entered in the backlog pending confirmation of the

notice-to-proceed: Belgrade (construction phase), Kuwait, La Réunion (construction phase).

France

Troyes (construction phase)

La Réunion

Pierrefonds (planning stage)


17%

6%

74%

3%

2018

ORDER INTAKE ENVIRONMENT -LAB-GEODUR

59%

5%

18%

18%

2017

€41.2 million €55.6 million

Flue gas treatment Ash treatment Flue gas scrubbers ServicesMarine Scrubbers


ORDER INTAKE ENVIRONMENT - SERVICES

63%21%

11%

6%

63%14%

15%

8%

• Thiverval

• Albioma Le Moule

• Vaux le Penil

• Schweighouse

• Monaco

€94.2 million

• Thiverval

• Colmar

• Monaco

2017(restated)

2018

€83.3 million

WTE-biomass refurbishment Local services Energy transition Other


ORDER INTAKE INNOVATION & SYSTEMS

21.7% increase in order intake in 2018

2017

reported

2017

restated (*)2018

(in € millions)

Industrial Systems Division 96.9 92.0 125.2

Bertin 94.6 94.6 102.0

TOTAL 191.5 186.6 227.1

0

50

100

150

200

250

300

Mill

iers

Cumulative orders (year to date)Innovation & SystemsIndustrial Systems DivisionBertin subsidiaries

(in € millions)


56%27%

17%

ORDER INTAKE INDUSTRIAL SYSTEMS DIVISION

Key orders of the financial year: ▪ Defense & maritime:

14 landing craftsDeterrenceRetrofit of the French Army’s motorized floating bridges

▪ State-of-the-art scientific instruments: ITER project▪ Other Industries:

Serial mechanical equipment, such as the Ariane 6 booster casings

2018

36.1% increase in order intake

(*) reclassification of CNIM Babcock Maroc to the Environment & Energy segment Defense and maritime

Nuclear power, state-of-the art scientific

instruments, thermal engineering

Other industries

(in € millions)

Defense and Maritime 31.1 31.1 69.8 124.4%

Nuclear power, state-of-the-art

scientific instruments, thermal

engineering

38.8 38.8 33.7 -13.1%

Other industries 27.0 22.1 21.7 -1.9%

96.9 92.0 125.2 36.1%

2017

restated (*)2018

Change

(2018 /

2017)

2017

reported


75%

12%

13% 13%

17%

33%

29%

10%

ORDER INTAKE BERTIN

Systems and Instrumentation by business activity

Increase in order intake on a like-for-like basis: 15.3%

20182018

By business unit

(in € millions)

Systems & Instrumentation 56.5 76.0lnformation Technology 9.3 12.4Consulting & Engineering 15.2 13.5Pharma & Biotech 13.6 0.0

TOTAL 94.6 102.0

2017 2018


GROUP BACKLOG

(*) Sale of Bertin Ergonomie (-€1.5 million) and the multi-physical modelling and scientific IT business (-€2.0 million)

Changes in backlog

Ratio

(in € millions)

Effect of change

in consolidation

scope (*)Order intake Revenues

Order

intake/months'

revenues

ENVIRONMENT & ENERGY 587.4 109.5 696.9 509.2 493.3 712.8 17.3 1.03

INNOVATION & SYSTEMS 242.9 (1.3) 241.6 (3.5) 227.1 196.5 268.7 16.4 1.16

830.3 108.2 938.5 (3.5) 736.3 689.8 981.5 17.1 1.07CNIM Group

No. of

months'

revenues

Backlog at

Jan. 1, 2018

Backlog at

Jan. 1, 2018

(restated)

Backlog at

Dec. 31,

2018

Actuals Financial Year 2018IFRS 15 and

reclassification

of CNIM

Babcock Maroc


BACKLOG OF €981.5 MILLION AT DECEMBER 31, 2018

France

€391.4 million

United

Kingdom

€300.8 million

Other EU countries

€123.3 million

Rest of the World

€166.0 million


REVENUES

BREAKDOWN OF REVENUES

BY GEOGRAPHICAL AREA (*)

(in € millions)

(*) by destination

8.8%

53.3%37.9%

BREAKDOWN BY TYPE OF CONTRACT

(**) including LAB + Solar

(in € millions)

261,1

368,0

60,6

Export: 62.1%

FranceEU

Rest of the world

2018

2017 2018

CNIM Group 628.5 689.8

+9.8%


REVENUES

9.8% increase in revenues between 2017 and 2018

with a 41.2% increase in order intake


REVENUES - OPERATING INCOME - EBITDA

CNIM GROUP


performance was affected by

the default of the civil

engineering firm on the South

London contract


performance improved

(in € millions)


Revenues 421.6 493.3

Recurring operating income 9.3 (14.9)EBITDA 14.4 (8.4)



Recurring operating income 8.2 10.7EBITDA 21.7 22.9

TOTAL CNIM GROUP


Recurring operating income 17.5 (4.3)

EBITDA 36.1 14.5

2017 2018



ENVIRONMENT

Turnkey plantsRecurring operating income was severely affected in 2018

by the default of the civil engineering co-contractor on the South London contract

LAB and GéodurStrong growth in the “marine scrubber” business starting in 2019

ServicesGroup offer expanded; four new refurbishment contracts

OperationsContinued to operate the same number of sites; three new “EPC” operating contracts were also

won in 2018

(in € millions)


Recurring operating income 9.3 (14.9)

EBITDA 14.4 (8.4)EBITDA margin 3.4% -1.7%

2017restated

2018

+ 17.0%



INNOVATION & SYSTEMS

Improved profitability

Industrial Systems Division Good results from CNIM Industrial Systems with a satisfactory level of business

Bertin

Revenues up 3.3% driven by Systems & Instrumentation business; the business unit’s revenues

rose 23.6% (+9% on a like-for-like basis)

(in € millions) + 4,8 %


Recurring operating income 8.2 10.7

EBITDA 21.7 22.9EBITDA margin 10.5% 11.7%

2017restated

2018

-5.0%


NET INCOME

Net income increased substantially

(in € millions)

Revenues 539.9 628.5 689.8

Recurring operating income 22.2 - 4.1% 17.5 - 2.8% (4.3) - (0.6%)

Operating income 19.1 - 3.5% 19.8 - 3.2% 2.6 - 0.4%

Ebitda 38.5 - 7.1% 36.1 - 5.7% 14.5 - 2.1%

Share of net income from equity-accounted associates 2.6 3.6 25.4Operating income after share of net income from equity-

accounted associates21.7 23.4 27.9

Net financial income (expense) (0.6) (1.5) 0.8

Income tax (7.1) (3.7) (0.9)

Net income from discontinued operations 34.1

Net income from continuing operations 14.0 - 2.6% 18.2 - 2.9% 27.9 - 4%

Net income from discontinued operations 34.1

NET INCOME 48.1 - 8.9% 18.2 - 2.9% 27.9 - 4%

Non-controlling interests (1.6) (2.3) (5.0)

NET INCOME attributable to owners of the parent 49.7 - 9.2% 20.5 - 3.3% 32.8 - 4.8%

20162017

(restated)2018


NON-RECURRING INCOME AND EXPENSE

(in € millions)

Non-recurring

income

(expense)

Share of net

income from

equity-

accounted

associates

Bertin Technologies disposals 9.6

- disposal of Bertin Ergonomie 9.5

- disposal of MIS (0.1)

- BT Pharma earn-out 0.2

Disposal of Selchp 9.3 22.2

Asset impairment (11.3)

- Solar (7.8)

- Geodur (3.5)

Other (0.8) 3.2

TOTAL 6.8 25.4


TAX

2017: The French Constitutional Court cancelled the 3% levy on dividends (for the 2013 to 2017 financial years) for which a

€4.9 million refund had been filed

2018: Tax loss carryforwards were used by Bertin Technologies after selling its ergonomics consultancy business

(in € millions)

2017

restated2018

Pretax Income 21.9 28.7

Net income from equity-accounted associates 3.6 25.4Pretax income and share of net income from equity-accounted

associates 18.3 3.3

Income tax expense (3.7) (0.9)Effective income tax rate (excluding share of net income from equity-

accounted associates)20.4% 25.7%

- O/w French value-added business tax (CVAE) (2.2) (2.4)

- O/w impact of 3% tax on dividends paid 4.9 -

Income before tax and share of net income from equity-accounted

associates


CASH AND CASH EQUIVALENTS

(1) “Other” includes:

✓ Disposal of non-current assets (mainly Bertin Ergonomie), net change in advances and loans granted and dividends paid (mainly disposal of MES SELCHP),

income tax paid, purchase of treasury shares, change in consolidation scope and foreign currency translation

Cash flow net of debt at December 31, 2018: €9.1 million


WORKING CAPITAL REQUIREMENTS

-80

-30

20

70

120

Déc 2016 Dec 2017 Juin 2018 Déc 2018 Juin 2019 Déc 2019

(in € millions Changes in the indicator: revenues collected (-) revenues recognized

Envt.-EPC contracts in the backlog at January 1, 2018

Dec. 2016 Dec. 2017 June 2018 Dec. 2018 June 2019 Dec. 2019


CAPITAL EXPENDITURE

Realized in 2018 E&E: installation of metal removal and recovery facilities (mainly non-ferrous)

I&S: industrial equipment, expanded office space at La Seyne-sur-Mer

(in € millions)

Intangible assets 6.9 8.2 1.0 7.1

Development expenses 0.6 6.0

Other 0.4 1.1PP&E 17.2 14.3 6.5 7.7

Construction 0.3 3.0

Industrial equipment 5.3 2.9

Other property, plant & equipment 0.9 1.9CNIM GROUP TOTAL 24.1 22.4 7.5 14.9

2017restated

2018Environment &

Energy

Innovation &

Systems


CASH FLOW AND DEBT AT DECEMBER 31, 2018

€30 million drawdown on the

syndicated credit line

(in € millions) Dec. 31, 2017

Cash equivalents 39.8 17.0

Cash 106.8 69.0

Total cash and cash equivalents 146.6 86.0

Non-current financial liabilties (42.6) (63.1)

Current financial liabilities (11.9) (13.8)

Cash and cash equivalents, net of debt 92.1 9.1

Dec. 31, 2017 Dec. 31, 2018

TotalNon-current

financial

liabiltiies

Current

financial

liabilitiesTotal

Medium-term credit 37.5 57.2 7.8 65.0

Refundable advances 5.8 5.7 0.3 6.0

Sales of receivables 8.6 0.0 3.4 3.4

Adjustments to finance leases, other 0.7 0.2 0.7 0.9

Gross financial liabilities 52.6 63.1 12.2 75.3

Bank overdrafts and short-term bank loans 1.9 1.5 1.5

TOTAL 54.5 63.1 13.8 76.8

Dec. 31, 2018

Repayable advances


GUARANTEES

(in € millions) 2012 2013 2014 2015 20162017

restated2018

Backlog 1,164.5 1,109.4 681.4 631.1 905.6 938.5 981.5

139.3 194.7 129.4 129.2 145.4 167.5 168.0

Guarantees given 389.7 404.9 445.3 330.4 350.1 368.1 429.6

Guarantees received

1,164.51,109.4

681.4631.1

905.6 938.5 981.5

2012 2013 2014 2015 2016 2017

restated

2018

Backlog Guarantees given Guarantees received


SHAREHOLDING STRUCTURE AT DECEMBER 31, 2018

In 2018, CNIM purchased 27,848 shares, increasing percentage of treasury shares to 6.61%

Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2018

56.56% 56.56% 64.98% 65.34%

15.38% 15.43% 17.67% 17.81%

5.62% 6.61% - -

2.88% 2.98% 3.28% 3.34%

S/T 80.44% 81.57% 85.94% 86.50%

19.56% 18.43% 14.06% 13.50%

% Shares% Exercisable voting

rights

56.56%

15.43%

6.61%2.98%

18.43%

Soluni & Dmitrieff family

Franeli & Herlicq family

Treasury shares

Employees

General public


NET INCOME / EQUITY

(*) Amount restated for the effects of IFRS 15 and IFRS 9

Note: a special dividend (€88.4 million - excluding treasury shares) was paid in 2014

At Dec. 31, 2018 (*) 176.6

Net income for the year 32.8

Dividend payment (14.8)

(8.2)

At Dec. 31, 2018 186.3

Other: foreign currency translation adjustments, change

in consolidation scope


DIVIDENDS / EARNINGS PER SHARE

(*) Dividend proposed at the Shareholders’ Meeting of June 26, 2019.

(*)5,16

10,84

6,80 6,66

9,9310,71

11,82

16,43

7,27

10,84

3,40 3,405,00 5,35 5,90

6,70

5,25 5,25

2011 2012 2013 2014 2015 2016 2017 2018

Net income per share (continuing operations) Dividends per share

(Euros)

Net income per share (discontinued operations)

Net earnings per share (Group

6.90 6.84 10.20 11.10 12.20 17.30 7.70 11.56

Earnings per share attributable to owners of the parent (including treasury shares):


SHARE PRICEShare price:

At Dec. 29, 2017 134.52 €

At Dec. 31, 2018 82.00 €

High and low in 2018:

High: Jan. 3, 2018 135.50 €

Low: Dec. 31, 2018 82.00 €

Year-on-year change (CNIM share price

compared with major indices):

CNIM -35,99 %

SBF 120 - 12,34 %

CAC 40 - 11,82 %

-35.99%

-12.34%

-11.82%


PLAN TO SIMPLIFY THE

LEGAL STRUCTUREOF CNIM GROUP


ABOUT THE PLAN

• CNIM GROUP HAS GROWN THROUGH AN INCREASING NUMBER OF BUSINESS ACTIVITIES

• THE GROUP’S LEGAL STRUCTURE HAS NOT BEEN ADAPTED TO THIS BUSINESS DEVELOPMENT

• WORK HAS BEGUN TO ADAPT THE LEGAL ORGANISATIONAL STRUCTURE TO THE OPERATING STRUCTURE

GOALS:

- MAKE THE GROUP ORGANIZATION CLEARER

- SIMPLIFY THE GROUP REPORTING

The entitre plan is dependent on the opinion of employee representatives, who

have been informed and are being consulted.


RECALL: THE GROUP’S MAIN BUSINESSES

THE GROUP IS OPERATIONALLY STRUCTURED INTO TWO BUSINESS SEGMENTS AND

SIX DIVISIONS

• ENVIRONMENT & ENERGY SEGMENT (E&E)

• E&E EPC DIVISION: CONSTRUCTION OF TURNKEY HOUSEHOLD AND BIOMASS WASTE-TO-ENERGY PLANTS

• FLUE GAS TREATMENT DIVISION (LAB): FLUE GAS TREATMENT SOLUTIONS FOR TURNKEY WASTE-TO-ENERGY AND BIOMASS

PLANTS; MARINE SCRUBBERS

• E&E SERVICES DIVISION: OPTIMIZATION, REFURBISHMENT, REVAMPING AND MAINTENANCE FOR HOUSEHOLD AND

BIOMASS WASTE-TO-ENERGY PLANTS AND COMBUSTION PLANTS

• E&E O&M DIVISION: OPERATION AND MANAGEMENT OF HOUSEHOLD AND BIOMASS WASTE-TO-ENERGY PLANTS

• INNOVATION & SYSTEMS SEGMENT (I&S)

• INDUSTRIAL SYSTEMS DIVISION: DESIGN AND PRODUCTION OF COMPLEX MECHANICAL SYSTEMS FOR DEFENSE, NUCLEAR

AND HEAVY INDUSTRY AND STATE-OF-THE-ART SCIENTIFIC INSTRUMENTS; THIRD-PARTY MANUFACTURING FOR VARIOUS

INDUSTRIES

• BERTIN DIVISION: INSTRUMENTATION, CYBER TECHNOLOGIES, INNOVATIVE ENGINEERING FOR THE ENERGY BUSINESS

THE GROUP IS STEADFAST IN ITS STRATEGY TO DEVELOP BOTH BUSINESS SEGMENTS

AND REMAIN DIVERSIFIED

More information on our activities at www.cnim.com


Current breakdown of business


Innovation & SystemsTurnkey plants

Services

BERTIN

Industrial

Systems Division

Operations

CNIM SA

Bertin Technologies

LAB

LAB

- The legal entity CNIM SA generates almost half of Group

business with highly diverse activities.

- The Group’s legal structure is not adapted to its operating

structure.


GROUP PLAN TO SIMPLIFY THE LEGAL STRUCTURE

The Group plan to simplify the legal structure would involve the following:

- Forming subsidiaries through partial asset contributions, and reclassifying all CNIM SA activities and

resources on the one hand, and all the subsidiaries within the same Division on the other hand, under a

dedicated holding company set up to head the Division in question.

- Combining the Division head holding companies from the same Business Segment, through share

contributions, in an intermediate holding company at the head of the Operating Segment in question, held by

CNIM SA.

- Setting up uniform governance for all Group entities.

As a result, CNIM SA would be renamed CNIM Group and would no longer exercise any operating activity. It

would become the Group’s primary holding company and the supplier of group-wide services to subsidiaries.

To do so, it would employ all the members of the Group’s Committee of Directors and the employees involved

in Corporate support functions.


SIMPLIFIED TIMELINE

✓ The milestones for the legal reorganization would be as follows:

March 19, 2019

. Supervisory Board meeting to give the go-ahead

June 26, 2019

. Extraordinary Shareholders’ Meeting of CNIM SA and the companies concerned, to decide

how to implement the plan

Implementation from July 1, 2019

The entitre plan is dependent on the opinion of employee representatives, who have been informed and are being

consulted.


AGENDAFY 2018 Press Release on Annual Results March 19, 2019

FY 2018 Presentation of Annual Results March 21, 2019

Press Release on First Quarter Financial Information May 14, 2019

Annual General Meeting June 26, 2019

Dividend Payment July 4, 2019

Press Release on First Half Financial Information August 29, 2019

Press Release on Third Quarter Financial Information November 14, 2019


INNOVATION & SYSTEMSOPERATING SEGMENT

PHILIPPE DEMIGNÉ


PRESENTATION OF THE INNOVATION & SYSTEMS OPERATING SEGMENT


BERTIN TECHNOLOGIES

General Management

Cross-departmental functions

Bertin Systems & Instrumentation

& subsidiaries

Bertin Energy & Environment

BERTIN IT & subsidiary

BERTIN

CNIM Industrial Systems

Business Line

NUCLEAR, STATE-OF-THE-ART SCIENTIFIC

INSTRUMENTS, AND THERMAL

Business Line

DEFENSE & MARITIME

Business Line

INDUSTRIAL MANUFACTURING &

DIVERSIFICATION

Asia subsidiaries

CNIM Industrial Systems division


I&S KEY FIGURES BY BUSINESS LINEI&S KEY FIGURES BY BUSINESS LINE

Equipment &

Instrumentation

Systems

Software &

Innovative Engineering

Major Systems &

Manufacturing

44%

14%

42% Breakdown of revenue by

business in 2018


I&S KEY FIGURES BY BUSINESS LINEI&S KEY FIGURES BY SEGMENT

Defense & Security

Other industries

Nuclear Power &

State-of-the-Art

Scientific

Instruments

32%

40%

28%

Breakdown of

revenues by segment in 2018


BERTIN SYSTEMS & INSTRUMENTATION 1/2INNOVATION & SYSTEMS

PLASMA DIAGNOSTICS FOR THE LASER MEGAJOULE RESEARCH DEVICE

© CEA © Bertin © CEA© CEABertin


BERTIN SYSTEMS & INSTRUMENTATION 2/2

ENVIRONMENTAL RADIATION MONITORING SYSTEMS

Switzerland, Armenia



BERTIN IT

▪ CLIENT: European External Action

Service (EEAS)

▪ CHALLENGE: Collect and analyse

multilingual open source data

▪ Roll-out an AMI enterprise

intelligence system, as a

competitive strategic monitoring

solution

▪ 200 enterprise intelligence analysts



BERTIN ENERGY & ENVIRONMENT

▪ CLIENT: Bordeaux Métropole

▪ CHALLENGE: Become the first positive

energy metropolis (spanning all

districts) by 2050

▪ ROLE OF BERTIN ENERGY & ENVIRONMENT:

Feasibility study for four smart grid

demonstration projects



CNIM INDUSTRIAL SYSTEMS DIVISION

CLIENT: FRENCH ARMY

CONTRACT TO REPLACE LANDING CRAFTS OF

THE FRENCH NAVY

14 standard amphibious landing crafts (EDA-S) to be built over ten years


EDA-R

EDA-S



CLIENT: ENERGY OBSERVER

CHALLENGE: Cut the vessel’s energy costs

SOLUTION: Installation of the OCEANWINGS® hybrid

propulsion system featuring a 12-meter tall composite

mast and two 32 sq. m. wingsails



ENVIRONMENT & ENERGY OPERATING SEGMENT

STANISLAS ANCEL


CNIM E&E

SERVICES

CNIM E&E

O&M(OPERATIONS &

MAINTENANCE)

CNIM ENVIRONMENT & ENERGY OFFERINGENVIRONMENT & ENERGY

CNIM E&E

LARGE

PROJECTS

CNIM E&E

LAB


PRESENTATION OF THE ENVIRONMENT & ENERGY

OPERATING SEGMENT

59%

17%

14%

11%

Breakdown of revenue by

business in 2018

Turnkey plants

Services

Operation &

Maintenance

Systems


25%

69%

7%

PRESENTATION OF THE ENVIRONMENT & ENERGY

OPERATING SEGMENT

France

Rest of the world

Europe

(excluding France)

Breakdown of 2018 revenues

by region


CNIM TRACK RECORD IN THE UK

N° 1 IN THE UK, WITH 40% OF FACTORIES BUILT

REPRESENTING AROUND 1/3 OF CAPACITY

N° 1 FOR CONTRACTS BETWEEN 2008-2017

23 PLANTS FOR WASTE-TO-ENERGY PRODUCTION

BUILT BY CNIM IN THE BRITISH ISLES

THE UK REPRESENTS 42% OF THE EUROPEAN MARKET

FOR WASTE-TO-ENERGY GENERATION

FROM 2008 TO 2016

ENVIRONMENT & ENERGY


MIDDLE EAST

OTHER SALES OPPORTUNITIES

Waste-to-energy production in Oman, Qatar and Abu Dhabi


SHARJAH KUWAIT


Markets

•WTE* India

•WTE South East Asia

•Biomass and Flue Gas Treatment Asia

A comprehensive

offer of technologiesand business

lines

CNIM E&Ecommitted

and working together

ENVIRONMENT & ENERGYENVIRONMENT & ENERGY

* WTE: Waste-to-Energy


MARINE SCRUBBERSENVIRONMENT & ENERGY

MARKET AND OUTLOOK

New regulations (SOx limits) by 2020 →

growing market. A booming market

starting in 2020 thanks to the

profitability of scrubbers

PROJECTS UNDER WAY

LAB’S ADDED VALUEIn addition to metal removal and

recovery scrubbers, LAB offers a GRP

model (glass-reinforced plastic). The

advantages:

Resists corrosion for 10 years

Shorter manufacturing time, faster

return on investment

Lighter and less bulky for easier

incorporation into facilities

NEW OPPORTUNITIES

YEARNo of

scrubbersYEAR

No of

scrubbers

2017 330 2019 1,850

2018 720 2020 4,000

3 cruise ships for a French shipyard

10 containers for a German company

(maritime shipping)

4 containers for another German

company (maritime shipping)

2 containers for a German ship

operator

NOx: regulation that is currently

restricted to only a few zones but will

be universally implemented in a few

years

LAB teams are ready

Dust particles soon on the agenda,

will follow

Product development under way

based on existing LAB technology


SERVICES

RECORD ORDER INTAKE: APPROXIMATELY 80 MILLION EUROS

Driven by the WTE market and the coal-biomass transition


2018 KEY FIGURES

Order intake X2

70% recurring clients

Products/services business 44%

Critical size sought > €100 million

STRATEGIC

CONSIDERATIONS

Added value

Selectiveness

Recurring business

Competitiveness

Reaching more regions and countries


SHARJAH

OPERATIONS & MAINTENANCE

3 TENDERS WON INCLUDING AN OPERATING

CONTRACT

Sharjah, Earls Gate, La Réunion

IMPROVED AVERAGE PLANT AVAILABILITY IN 2018

Reached 90% on average for all plants


EARLS GATE LA REUNION


GROUP-WIDE INNOVATION PROGRAMME FOR WTE* 1/2ENVIRONMENT & ENERGY

ServicesIdentification of

client issues

EPCKnow-how and

recommendations

O&MTests and

implementation

HIGH EFFICIENCY PLANTS

Increase overall equipment effectiveness

Increase capacity and heat efficiency of boilers

Smart CHP→ Multi-client CHP

THE FIRST PRODUCTS HAVE EMERGED FROM THIS

PROGRAMME AND BEEN ROLLED OUT FOR THE

RETROFITTING AND SERVICES BUSINESS LINES

CNIM BOILER MONITORING SYSTEM

CNIMCLEAN

OVERFIRE AIR MANAGEMENT


GROUP-WIDE INNOVATION PROGRAMME FOR WTE 2/2ENVIRONMENT & ENERGY

Increase the reliability of our

plants and

develop

predictive

monitoring

Optimize combustion and reagent injections based on neural network-

type regulation principles

Roll out new materials to

extend the useful life of

exchange surfaces

Increase plant availability by fighting build-up in

boilers

Simulated plant

Real plant

Plant management

simulator


CONCLUSION

NICOLAS DMITRIEFF

CHAIRMAN, MANAGEMENT BOARD


APPENDICES


RECONCILIATION OF FREE CASH FLOW WITH THE CASH

FLOW STATEMENT

(in € millions) Reconciliation with FCF

FCF Hors FCF Total

Self-financing capacity (8.9) EBITDA 14.5 14.5

Provision (23.7) (23.7)

Net financial income (expense) 0.3 0.3

Total (9.2) 0.3 (8.9)

Income tax paid (7.0) Income tax paid (7.0) (7.0)

Change in WCR (81.3) Change in WCR (81.3) (81.3)

Cash generated by operating activities (A) (97.2) (A) (97.5) 0.3 (97.2)

Investments (23.1)Sales of assets 11.8

Impact of change in consolidation scope 6.7

Downpayments and loans 9.3

Dividends received 31.3 Dividends received 31.3 31.3

Cash from investing activities (B) 35.9 (B) 29.3 6.7 35.9

(A) + (B) = Free Cash Flow (68.2) 7.0 (61.3)

Issue/repayment of borrowings/other financing

transactions/interest paid 21.4

Purchase of treasury shares (3.3)

Impact of foreign currency translation (2.3)

Dividends paid (14.9)

Cash provided by (used in) financing activities 0.9

Change in cash and cash equivalents (60.3)

Cash and cash equivalents - end of period 84.4

Debt (75.3)

Cash and cash equivalents, net of debt 9.1

31.12.2018

Investments + change in consolidation

scope(2.1) 6.7 4.6


WORKING CAPITAL

(in € millions)

Assets

Inventories and work in progress 28.9 21.9 (7.0) (0.0) (7.1)

Advances and down payments made on orders 8.3 8.0 (0.3) 0.0 (0.3)

Trade and other receivables 109.3 101.2 (8.0) 3.4 (4.6)

Accrued income from contracts in progress 92.4 137.0 44.6 (0.0) 44.5

Social security and tax receivables 71.1 74.9 3.9 0.4 4.3

Other current operating assets 9.1 12.7 3.5 2.7 6.2

Total assets 319.1 355.7 36.6 6.5 43.1

Liabilities

Advances and down payments received (11.6) (2.2) 9.4 (0.0) 9.4

Trade payables (137.3) (186.1) (48.9) 0.3 (48.5)

Deferred income (138.2) (57.2) 81.0 0.1 81.1

Social security and tax payables (67.3) (70.4) (3.1) (0.8) (3.9)

Other liabilities (8.9) (11.3) (2.4) 2.5 0.1

Total liabilities (363.3) (327.3) 36.0 2.2 38.2

Working Capital Requirement (44.2) 28.4 72.6 8.7 81.3

Dec. 31,

2017

Dec. 31,

2018Change

Foreign currency

translation

adjustments, changes

in consolidation

scope, other

Change in

WCR (CFS)

2018 ANNUAL RESULTS MARCH 21, 2019...Page 5 I Annual Results 2018 –March 21, 2019 KEY FIGURES (*)...

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