ECA GROUP: +10.2% increase in revenue in 2019

Wednesday, February 26 2020

ECA Group (Euronext Paris: ECASA) reports its revenue for the fourth quarter and the full year 2019 today.

(in millions of euros)	Q1 2019¹	Q4 2018	Change (organic)	2019¹	2018	Change (organic)
Robotics (including Simulation)	22.5	24.4	-7.8% (-5.1%)	73.9	69.5	+6.4 (+10.7%)
Aerospace	10.4	8.3	+24.6% (+24.6%)	38.7	32.6	+18.5 (+18.5)
Structure & elimination	(0.0)	(0.0)	n.s	(0.1)	(0.0)	n.s.
Consolidated revenue	32.9	32.8	+0.4% (+2.6%)	112.5	102.1	+10.2% (+13.1%)
Backlog at end of period	526.3	120.3	+337.6 (+341.3)

¹Non-audited data

At the end of 2019, the two divisions Simulation and Robotics merged in order to achieve synergies in marketing for Defense activities and the robotics contract for the Belgian and Dutch navies. The published and organic data of the Robotics division includes that of the Simulation division.

ECA Group had exceeded its annual target of 2019 revenue growth above 5%. For 2019, consolidated revenue amounted to €112.5 million, a net increase of 10.2% on a reported basis and 13.1% on a comparable basis, excluding the contributions of SSI and EN Moteurs which were sold in 2018. Revenue grew by 0.4% in the fourth quarter of 2019 to €32.9 million, and by 2.6% on a like-for-like basis.

At December 31, 2019, the Group's backlog stood at €526.3 million, 4.4 times higher than at December 31, 2018, offering an excellent visibility for the years ahead.

In 2019, the revenue of the Robotics division, including the Simulation activity, amounted to €73.9 million, up by 6.4% compared with 2018 (+10.7% like-for-like, excluding EN Moteurs and SSI). The robotics contract for the Belgian and Dutch navies awarded in the second quarter of 2019 contributed €8 million to this performance. Simulation activity was in decline throughout the fiscal year. In fourth-quarter 2019, the division's revenue amounted to €22.5 million, down 7.8%, affected by the strong decline in Simulation activity.

The Robotics division's backlog stood at €505 million as at December 31, 2019, more than 5 times higher than at December 31, 2018.

In 2019, the revenue of the Aerospace division increased to €38.7 million, up 18.5% compared with 2018. Fourth-quarter performance was also very solid at €10.4 million, up by 24.6%. This strong performance is related to the execution of contracts awarded in the first half year and to the positive momentum of on-board equipment. The division also continued to develop its offer and to grow commercially in other industrial sectors, particularly the field of Automated Guided Vehicles (AGV).

The backlog stood at €21.3 million as at December 31, 2019, down by 8.3% compared with December 31, 2018.

2020 objectives

In its markets, the Group currently expects the following trends:

The Robotics division should continue to post solid performance, driven by the execution of the robotics contract with the Belgian and Dutch navies which is expected to contribute around €15 million this year. New and significant opportunities for mine sweeping equipment contracts have been identified in several countries and could materialize in the next 36 months.
In Aerospace, business is expected to grow more modestly after a very good 2019 year.
In the current macro environment, the Group sets its revenue growth target by around 10% in 2020.

Next meeting:

Publication of 2019 annual results on Monday, March 23, 2020 after stock market close.

On this occasion, Guénaël Guillerme, Chief Executive Officer of ECA Group, and Loïc Le Berre, Deputy Chief Executive Officer and Chief Financial Officer of Groupe Gorgé, will provide the financial community with their comments on the ECA Group's results and respond to questions from analysts during a conference call in French that will take place on

Tuesday, March 24

at 11:30 am.

Details of the conference call will be available one week before the call on ECA Group's investor relations website.

A presentation and a replay of the conference call will be available on the ECA Group's website