Econocom Group Se Class D · EURONEXT:ECONB
Econocom Group Se Class D — H1 2021 Earnings Presentation
39 slides from Econocom Group Se Class D's earnings presentation, Sep 2, 2021
Slide 1: Analyst and Investor presentation
Analyst and Investor presentation September 2nd, 2021
Slide 2: One digital company
One digital company equipment | services | financing Econocom – H1 2021 results 2
Slide 3: Welcome
Welcome E c o n o c o m – H 1 3 2 0 2 1 r e s u l t s
Slide 4: The speakers
The speakers JEAN-LOUIS Angel Laurent BOUCHARD BENGUIGUI ROUDIL Chairman & CEO Managing Director Managing Director Econocom – H1 2021 results 4
Slide 5: Agenda
01 H1 2021 highlights 02 H1 2021 results and financial position AGENDA 03 Business line development strategy 04 Outlook
Slide 6: H1 2021 highlights
01 H1 2021 highlights
Slide 7: H1 2021 highlights
H1 2021 highlights Changes in Resumption of ownership structure: Early repayment external growth purchase of Econocom Group of €115M Schuldschein via acquisition of majority stake shares held by W. Butler bond loan in TRAMS, a well known IT distributor in the UK market APRIL FEBRUARY MAY JULY Les Ab
Slide 8: Econocom in motion
Econocom in motion Asserted CSR positioning: responsible digital entrepreneur Econocom, pioneer of the digital circular economy since 1973 New operational headquarters: The hub.paris a better place for a workplace organisation New website to be launched on 14 September Econocom – H1 2021 results 8
Slide 9: H1 2021 results and financial position
02 H1 2021 results and financial position
Slide 10: H1 2021 highlights
H1 2021 highlights Revenue(1) ROP(2) MARGIN External €1,239 M €62 M 5.0% Growth Acquisition +1.7% +40.6% (1) +1.4 pts of Trams UK Activity relaunched Increase in profitability Resumption despite health in all business segments of acquisitions crisis (1) At constant standards and scope (2) Before amo
Slide 11: Improved profitability in all business segments
Improved profitability in all business segments P&S margin Services margin TMF margin (42% of H1 2021 revenue) (22% of H1 2021 revenue) (36% of H1 2021 revenue) 7.4% 4.7% +1.4pt +5.3pt +0.9pt 3.9% 3.3% 3.0% 2.1% H1 2019 H1 2021 H1 2019 H1 2021 H1 2019 H1 2021 Volume effect Higher Better deal on marg
Slide 12: A strong presence in all targeted geographies throughout Europe
A strong presence in all targeted geographies throughout Europe Revenue H1 2021 (% and M€) Germany & Poland France 7% (€85 M) 52% (€648 M) Econocom, the first General Digital Contractor in Europe UK & Americas 7% (€88 M) As per client request, presence in all major European markets with sufficient m
Slide 13: Products & Solutions: Revenue and profitability at strong growth
Products & Solutions: Revenue and profitability at strong growth ROP(1)(2) + A strong volume effect H1 2021 €24.7 M together with added value of 46.2% H1 2020 €16.9 M attached services Profitability rate(1)(2) A market environment boosted H1 2021 4.7% + by high demand for digital 1.2pt goods and des
Slide 14: Services: continued improvement of profitability
Services: continued improvement of profitability ROP(1)(2) + Continued increase H1 2021 €20.0 M in Services profitability 17.0% H1 2020 €17.1 M which started 3 years ago Profitability rate(1)(2) Revenue growth acceleration H1 2021 7.4% + in particular with a marked 0.8pt recovery in Q2 further to H1
Slide 15: Technology Management & Financing: Increase in ROP
Technology Management & Financing: Increase in ROP ROP(1)(2) + H1 2021 €17.5 M Lower break-even point 69.9% H1 2020 €10.3 M Improvement of client portfolio Profitability rate(1)(2) Increase in the portion H1 2021 3.9% + of operating leases in H1 2021 1.8pt (€39 M vs. €9 M) H1 2020 2.1% Revenue(1) H1
Slide 16: A risk-adverse TMF portfolio
A risk-adverse TMF portfolio Contract portfolio as of H1 2021 Overall stability of portfolio at original purchasing price €5.9 Bn Residual interest(1) • 3.0% of the Original Purchase Price • >2x covered by remarketing €2.4 Bn of assets and contract extensions • €0.17 Bn of residual interest, €0.17 B
Slide 17: Strong increase in Net profit
Strong increase in Net profit (In €M) H1 2021 H1 2020(1) Revenue 1,239.5 1,225.7 Recurring operating profit(2) 62.3 44.6 Strong decrease in non- Recurring operating profit 61.1 43.6 recurring operating expenses further to completion of Non-recurring operating incomes and expenses (7.6) (23.6) Drakka
Slide 18: Continued long term deleveraging and acceleration of share buyback program
Continued long term deleveraging and acceleration of share buyback program Change in NFD(1) (in €M) Acceleration of share buyback program which will help financing 303 future acquisitions and/or recruiting a long term equity partner 217 Investment in future TMF Debt still under control 42 contracts
Slide 19: Business line development strategy
03 Business line development strategy
Slide 20: Products & Solutions
Products & Solutions Flexible and forward-looking approach to changing demand Carving out Solutions Growth drivers a major foothold tailored underpinned by in Europe to customer needs core strengths One stop shop Widespread > €1 billion revenue multi-brand, multi-vendor, rollout of multi-product rem
Slide 21: Products & Solutions: Future strategic targets
Products & Solutions Future strategic targets Become European leader in distribution services Strategic M&A roadmap Achievements: TRAMS (UK) July 2021. €50M revenue. Peer company offering comprehensive multi-vendor solutions Future targets: multi-vendor, multi-sector players to develop TMF synergies
Slide 22: Services: Workstation services
Services Workstation services Strong reputation in France, Belgium and Spain Future strategic targets Leading provider of workstation outsourcing services in France (Run) Become Nr.1 provider of global > 1 million workstations under management workstation services in France Design, Build & Run Singl
Slide 23: Services: Other Services - strategic targets
Services Other Services - strategic targets Infrastructure services Application services Aggressive choice Launch of a new offering to move legacy services “Apps, Cloud & Data” in July 2021 to the cloud Two new solutions Adaptation to new customer • Design & Build requirements • Run & multi-platform
Slide 24: Technology Management & Financing
Technology Management & Financing Current position and background Covid and the Nevertheless, transformation plan profit margins Growth have impacted growth have improved drivers Sales force attrition Breakeven point Step up digitisation lowered and efficiency and smart working Closure of unprofitab
Slide 25: TMF - 2021-2022 action plan
TMF - 2021-2022 action plan geared towards growth Sales force hiring programme underway: over 30 new salespeople by 31/12/2021 External growth: priority assigned to France, Germany and Benelux Development of structured financing solutions New solutions: • Public sector • Asset end-of-life (circular
Slide 26: Econocom – H1 2021 results
Econocom – H1 2021 results 26
Slide 27: Outlook
04 Outlook
Slide 28: Econocom: key figures 2009 - 2024e
Econocom: key figures 2009 - 2024e Number of shares, excluding Treasury 2,980 2,927 2,927 187 Shares (M) 181 Stable, 2,316 2,536 2,559 value x4 2,093 279 252 252 1,773 Consolidated 1,584 1,538 Revenue(1) (€M) X3.5 1,021 106 186 185 154 126 122 759 89 140 67 74 118 111 47 95 ROP(1) (€M) 29 31 39 10.0
Slide 29: Extensive track record in acquiring and integrating companies
Extensive track record in acquiring and integrating companies Successes In 2020, satellites acquired from 2014-2018 contributed 26% of total Group revenue and 22% of ROP. lessons learned Econocom – H1 2021 results 29
Slide 30: Q&A
Q&A E c o n o c o m – H 1 30 2 0 2 1 r e s u l t s
Slide 31: Appendices
Appendices E c o n o c o m – H 1 31 2 0 2 1 r e s u l t s
Slide 32: Full-year results robust and responsible
Econocom Europe’s leading global digital services company ECONOCOM 2020 One digital company full-year results 95% refurbished €2.559 Bn equipment Limited decline in like-for-like revenue Down 11.3% versus 2019 €122.5M 50% Increase in recurring operating profit (ROP) reduction in our Up 2.2% versus 2
Slide 33: Increased profitability by more than 40%; revenue up 1.7%
Increased profitability by more than 40% Revenue up 1.7% boosted by P&S and Services ROP(1)(2) + Positive impacts of business H1 2021 €62.3 M 40.6% refocus H1 2020 €44.3 M Long-lasting effects of Drakkar cost reduction plan initiated Profitability rate(1)(2) in 2019-20 H1 2021 5.0% + 1.4pt But still
Slide 34: Simplified balance sheet
Simplified balance sheet ASSETS (IN €M) 30/06/2021 31/12/2020 EQUITY & LIABILITIES (IN €M) 30/06/2021 31/12/2020 Goodwill 491 500 Equity 410 473 Other non-current assets 229 230 Net Financial Debt 217 -20 Assets related to leasing activities 368 361 Commitments on residual value 100 104 Residual int
Slide 35: Free Cash Flow generation over LTM
Free Cash Flow generation over LTM Operating Cash-Flow FCF last 12 months: + €188 M (vs. €78 M LY) -217 improvement -303 +2 +42 Deconsolidating +89 financings -25 +148 -15 Well-managed WCR -11 -91 -26 -27 €42 M net proceeds from asset disposals NFD as at 30/06/2021 NFD(1) Operating Non- TMF WCR Fina
Slide 36: Decrease in gross debt
Decrease in gross debt In €M Decrease of €115 M Decrease in bond debt of bund debt with Schuldschein 298 -157 early repayment of €115 M end of june 2021 -180 Increase in bank lines Short term debt to finance operating cycles and the effects 217 of seasonality on -56 Cash -35 working capital 06.2021
Slide 37: Stock Exchange
Stock Exchange Equity table (1) – % of ownership and number of shares Number of shares: • Total shares: 221.3 M Treasury shares(2) • Treasury shares: 33.7 M 15.2% / 33.7 M • Floating shares: 187.6 M Share price as of August 31th, 2021: €3.59 Free float 44.5% / 98.5 M Market Cap Listing place: €670 M
Slide 38: Contacts
Contacts Investor and Press shareholder relations relations etienne.jacquet@econocom.com david.molins@econocom.com Press agency info@capvalue.fr Econocom – H1 2021 results 38
Slide 39: Thank you
Thank you E c o n o c o m – H 1 39 2 0 2 1 r e s u l t s