Alten S.A.

Hello, everybody. Thanks for being with us at this Alton conference relative to the H123 activities. I hope you all received the press release, which was sent out a few minutes ago and displayed a few minutes ago. You'll find the figures, which we are going to scrutinize this evening, as you may have noticed if you had time to read it. And if you had time and took time to read it, until we had a growth satisfactory growth in compliance with what we had anticipated the groups that turn over 2.48 billion euros a 12.2 percent increase versus last year 1.826 billion euros last year in france the business went up by 9.4 percent and outside of france the interpreted to not hear the figure on the like-for-like basis. And while the business went up by 11.4%, in other words, plus 9.4% in France and plus 12.5% outside of France. In the second quarter, growth went down. This was not so bright, 8.7%. And 6.7% in France and 9.7% outside of France on a lifer-like basis. Growth is actually identical because it's 8.6% at the group level, 6.7% in France, and 9.7% outside of France. H2 was penalized, and let me just draw your attention to this, because we had two working days versus last year, whereas the international, well, it was actually penalized by 4.4 days, and the second semester was penalized by 1.2 days versus 2022. the business rate of the second quarter was quite satisfactory it is actually quite normative once again as in the first quarter well it's actually 91.4 percent and it was 92.9 percent in 2022 if memory serves me right and in the h1 the business rate of the group is 91.8% versus 92.7% in 8.1 and 8.2. In other words, 0.9% decline. Let me just remind you that in 2022, we indicated that the business rates were abnormally high because we're still in the post-COVID period. And the business rate, which is 91.9%, and as you may know, this is a normative one because It actually ranges between 91.8 and 92.2%. This is done on a weekly basis, and this actually is in line with the rate which we believe is satisfactory for the group's business. Now, in the aftermath of the end of the 2022 C-Prime session, we had X number of collaborators out of December, 47.240 engineers, Now we're now 54, 57,400 people, 54,750 engineers, 11,500 in France and 39,000 outside of France. In the first semester, the engineer cap went up by 3,500. In all, 2,226 in an organic way, 450 in France, and 2,276 outside of France. The acquisitions represented the differences, in other words, 680 engineers.

Now, let's now have a look

at business per geographical zone. Now, this analysis is based on the fact that with the UK and Italy, the second semester figures display slower growth everywhere in the world. which is quite normal. What else is new? Because the growth rates cannot be indefinitely around a 15% client. Budgets are not bottomless or, I mean, are not limitless and the growth capacity is directly related to a client. budget extensions or the outsourcing extension process. And we already had anticipated that this deceleration of growth rates as early as at the end of last year. And we were somewhat surprised that this did not take place before. Now, in France, despite an unfavorable mass effect and two working days less than last year, the business went up by 6.7% in the second quarter. In other words, 9.9%. If you had to retweet the working days in the first semester in France, the business went up by 9.4%. In other words, I did not hear the figure correctly. Now, the business remained quite dynamic in the automotive segment, and in the defense and safety was 20%, and the civil aviation growth is still quite strong, about 30%. In Europe, outside of France, the business went up quite satisfactorily, although Scandinavia and Germany slowed down in the second quarter. Now, in Europe, in the Iberian Peninsula, the business went up by 17%. All the segments are growing, even the bank and finance segment. In Germany, the second quarter decline is amplified by the working day parameter. In other words, they perform a 9.2% growth versus 6.6% published in the second semester. In the third semester, the growth is 12.2%. working day parameter in Germany. German growth went down because of the progressive stabilization of the automotive sector. It's still going up by 9% versus 2022. Let me just remind you, that growth in the automotive segment was quite strong in Germany in the last few years, and it is therefore, it does make sense that the budgets actually end up leveling off. Now, it also went down because of the deceleration in the aviation segment, which was still growing by 20% of those two sectors represent, as you may well know, 70% of turnover in Germany. In the UK, growth is still stable, despite one workday less, mostly because of the civil aviation and the automotive segments. In Italy, growth is still at plus 25%. All the sectors are going up, including the tertiary finance, telecom, automotive, defense, and safety. In Benelux, the growth is 15%, now quite homogenous between the Netherlands and Belgium. And in the Netherlands, automotive electronics and semiconductors, industrial equipment to actually guarantee growth in the automotive and pharmaceutical industry, which also rebounded quite well and are going up quite significantly in Scandinavia. The same affects, just like in Germany, the progressive stabilization of segments in the automotive sector. Well, we actually observed a deceleration in Eastern Europe. Growth was 27% quite satisfactory. Although it went down in Q2, Poland, that represents 65% of the zone, went up by over 30%. Now, Romania, 35% of the zone, the business went up by plus 20% because of the tertiary finance segment. in north america the business on a like-for-like basis went up by seven percent in the u.s now you may know that this represents three quarters of the north american zone the air well growth actually went down and it confirmed it was confirmed in q2 it's not really that much of a concern it stems from the automotive sector where budgets are stabilizing and quite a number of projects terminating in the oil and gas sector in Canada. Growth also decelerated because of the very negative mass parameter in the aerospace and the bank sectors representing over half of the revenues. Finally, in the Pacific area, growth slowed down as of Q4 2022 6.2% this semester. Now, I'd like to draw your attention to one point, which I believe is something which I had not talked about before. The Asia-Pacific zone actually gathers quite a number of countries, including Singapore represented 12% of the APAC zone in 2022. The activity in Singapore went down this year with quite a number of projects terminating in oil and gas. because they had a platform which was addressed to the Middle East mostly. The Middle East and the bank finance segment also were contracted because a major project terminated. So, I believe, well, our activity in Singapore went down by two thirds this semester. which really had a negative impact on the growth in the area. So let's actually interpret the growth the following way. This is to get a good understanding of the dynamic in the APAC zone and outside of Singapore, it's 18% and not 6%. Singapore represented 12% of the zone, only represents 4% of the area now, and it's now representing a marginal activity. China, represents 35% of the APAC zone, 7% and penalized by the telecommunication segment, which represents a significant part of local revenues, whereas the automotive sector represented over 30% of revenues of China is still growing up by over 35%. India, 31% of revenues in the area for local markets is going up by 15% with the automotive and tertiary sectors. represents today 11% of the area, and it went up by 30% thanks to the electronic and tertiary sectors. And finally, in South Korea, 8% of the area, which is also going up quite rapidly, just as Japan, going up by over 35% thanks to automotive semiconductors and electronic activities. So growth is still satisfactory in most of the geographical zones in which we're present. now same thing here all of the business sectors are going up even though the pace is different from one place to the other the automotive sector as i said already Well, the growth rate is still decelerating, but quite sustained in some geographical zones, and the automotive segment went up by 20%. This half of the year, growth is actually generated among manufacturers, because we're talking about a 25% growth globally. The only manufacturers that are slowing down are General Motors. On the other hand, the deceleration of the growth rate is confirmed among OEMs,