Spie SA Q1 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Oscar Val Mas - JPMorgan Chase & Co, Research Division - Analyst : Gauthier and Michel, I have 3 questions. The first one on guidance. As you think about your full year '21 guidance, that 2021 [revenue will be] close to 2019, if you're already running above this level in a quarter that arguably had some COVID-19 impacts, can you remind us if there are any positive one-offs, the cap you think you want that falls away over the rest of the year? That's the first question. The second question on M&A. We've had some press reports in fresh -- in French newspaper suggesting that SPIE could be looking at ENGIE's services assets. Can you comment on what your appetite is for larger M&A? And if you can't comment on that, maybe if you could just comment if you're seeing any changes in competition or pricing in France with your main competitors. And then a final -- a third question, just on raw material price inflation. Can you comment on if you're able to pass-through higher price inflation from things like copper? And if so, how much is it impacting your revenue in terms of pricing?

Question: Nicolas Tabor - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst : The first one would be on the -- on your Slide 25 on the infrastructure plan and spending. Do you have an update on where exactly you're expecting the tenders to start and the first impact on revenue? Any idea? Then on the second one, thinking of the more Q1 exit rate in terms of cost base evolution. We've had the Q1 margin, but thinking of how you're going into Q2 and forward, are you, let's say, cautious with recruitment? Or are you actually trying to find as much qualified employees as possible because you see that pent-up demand and how we should think about that? Will you wait for the investment? Or will you wait -- invest ahead of actually getting the revenue from either the Green Deal or the pent-up demand? And then on -- the third question would be on the M&A pipeline. Where is actually the focus for you right now for the rest of the year? I mean, we've seen your 2 acquisitions in optic fiber in a very attractive market. And so where is your attention turning now for the rest of the year? Is it still more Germany? Or do you see things to do in France? And which segment, for example?

Question: Peter Testa - One Investments S.A.G.L. - Analyst : I was -- I wanted to understand it a little bit on some of the puts and takes in margins still being felt in Q1. For example, PPE that might not be able to be passed on in areas which were lagging, maybe some labor utilization may not have been ideal. Are there any of these factors still present in Q1? Or are these still to work through?

Question: Peter Testa - One Investments S.A.G.L. - Analyst : Okay. And anything to say on labor utilization or labor structure, the extent to which in some of the areas they're lagging and maybe some people not used as well or they've been absorbed across the business? And if you look at your labor structure in general between the use of internal people, subcontractors and temps and so on, are there any areas that are still yet to normalize? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 30, 2021 / 7:00AM, SPIE.PA - Q1 2021 Spie SA Earnings Call

Question: Peter Testa - One Investments S.A.G.L. - Analyst : Right. Okay. And then the last question was just on -- if you look at the building segment as it's hard to speak and the activity level there, how it might be changing or how some of the other factors, such as Green Deal-related spending maybe also started to improve that segment of SPIE.

Question: Peter Testa - One Investments S.A.G.L. - Analyst : Just the customer exposure in the building area. Is any of that part of your business to an extent you would say that is growing in line or less than in line with the rest of the group, you saw opportunity? And maybe you're starting to see more customer activity to bring that part of that business up to good growth.