Sopra Steria Group Sa · EURONEXT:SOP
Sopra Steria Group Sa — Sopra Group — H1 2011 Earnings Presentation
27 slides from Sopra Steria Group Sa's earnings presentation, Sep 1, 2011
Slide 1: Half-year results presentation
Half-year results presentation 1 September 2011 Unissons nos Talents TALENTED TOGETHER 1
Slide 2: Key events in H1 2011 (1/2)
Key events in H1 2011(1/2) Success of the Axway spin-off and listing project 2
Slide 3: Key events in H1 2011 (2/2)
Key events in H1 2011 (2/2) Organic growth exceeded 11% France: +12.2% Europe: +7.7% Marked improvement in operating margin on business activity France: 9.0%, + 60 basis points Europe: 3.9%, + 210 basis points Group: 8.1%, + 90 basis points Recruitment in line with objectives Outst
Slide 4: Contents
Contents Key figures Additional business information Main market trends Strategy and outlook 4
Slide 5: Revenue (€m)
Revenue (€m) 529.7 475.2 Organic Growth H1 Q2 Sopra Group + 11.4% + 11.6% France + 12.2% + 13.4% Europe (excl. France) + 7.7% + 3.8% 5
Slide 6: Income statement
Income statement 1st Half Year 1st Half Year Change 2011 2010 2011/2010 M€ % M€ % % % Revenue 529.7 475.2 + 11.5% Staff costs - Employees -357.3 -328.9 + 8.6% + 11.6% Staff costs - Contractors -51.5 -37.4 + 37.7% Operating expenses -71.2 -67.6 Depreciation, amortisation and prov isions -6.8 -7.0 Ope
Slide 7: Operating results
Operating results 30/06 30/06 2011 2010 France Rev enue €m 435.5 388.3 organic growth % +12.2% Operating profit on business activ ity €m / % 39.2 9.0% 32.7 8.4% Profit from recurring operations €m / % 38.8 8.9% 32.1 8.3% Operating profit €m / % 35.9 8.2% 32.1 8.3% Europe (excl. France) Rev enue €m 9
Slide 8: Simplified balance sheet
Simplified balance sheet 30/06 31/12 €m 2011 2010 Goodwill 164.1 369.9 Allocated intangible assets 1.7 22.0 Other fixed assets 43.2 44.6 Equity-accounted inv estments 83.4 - Axway current account 60.0 - Fixed assets 352.4 436.5 Trade accounts receiv able (net) 336.0 368.4 Other assets and liabilitie
Slide 9: Change in equity
Change in equity €m Position at 31 December 2010 364.6 Distribution in kind (73.73% of Axway at fair v alue) - 284.5 Capital gain on the 73.73% of Axway distributed 200.4 Distribution in cash (exceptional) - 46.6 Tax on distribution - 3.2 Profit for the period 36.3 Distribution in cash (ordinary) -
Slide 10: Change in net debt
Change in net debt 30/06 31/12 €m 2011 2010 Net debt at beginning of period (A) 57.2 137.4 Gross cash flow from operations before net financial 46.6 124.7 debt and tax Tax paid - 19.0 - 33.8 Changes in working capital requirements - 25.7 20.9 Net cash flow from operations 1.9 111.8 Change relating t
Slide 11: Financial ratios
Financial ratios 6,35 49% 41% 3,06 31% 1,69 16% Basic net earnings Net debt / Equity Net debt / Equity per share (€) pro forma 30/06/2010 31/12/2010 30/06/2011 11
Slide 12: Staff changes (excluding external staff)
Staff changes (excluding external staff) 12
Slide 13: Contents
Contents Key figures Additional business information Main market trends Strategy and outlook 13
Slide 14: The business model
The business model Long-term commitments covering over 50% of revenue Fixed-price projects Solutions Outsourcing Capacity to deliver a continuum of services 14
Slide 15: Geographic markets
Geographic markets Stability of positioning in France Growth opportunities in Europe Partnerships Acquisitions 15
Slide 16: Vertical markets
Vertical markets A balanced positioning in all economic sectors A strong drive on sectors undergoing transformation Financial services Utilities and services Public sector 16
Slide 17: Contents
Contents Key figures Additional business information Main market trends Strategy and outlook 17
Slide 18: Streamlining of information systems
Streamlining of information systems Growing number of software and products in the IS Major fixed-price and application outsourcing projects merge Capacity to operate, directly or indirectly Global outsourcing is rare Demand for sound, quality partners able to deliver 18
Slide 19: Technology cycle taken into account
Technology cycle taken into account From B2B to B2C Smartphones and networks Companies rethinking relationships with partners and customers 19
Slide 20: The competition
The competition Very few global players Emergence of niche players Of broad scope But not global in their offering, nor in geographic scope Difficulty in ensuring organic growth and profitability due to Either the quality of the business model Or the quality of its operational executio
Slide 21: Contents
Contents Key figures Additional business information Main market trends Strategy and outlook 21
Slide 22: Sopra Group: quality positioning
Sopra Group: quality positioning A successful recent history Vital assets Position in France among the Top 3-4 Product offers with high growth potential (Banking, HR, Real Estate) High quality delivery model Widely anticipated Methods – Tools – Platforms Onshore – Nearshore – Customis
Slide 23: An independent project
An independent project Objectives Consolidate our position in the French market Develop a sound positioning in Europe Turn the Evolan offering into a fully-fledged software developer Roll out an acquisitions programme, especially based on Evolan Ensure organic growth continues to outperf
Slide 24: Prerequisites for project success
Prerequisites for project success Backing by the Board of Directors and key shareholders Management team in place Financial means 24
Slide 25: Outlook
Outlook The Group is maintaining performance objectives that it set at the beginning of the year for the financial year Organic growth Slight improvement in operating margin on business activity However, the current economic environment does not permit any firm commitments 25
Slide 26: Any questions?
Any questions? Unissons nos Talents TALENTED TOGETHER 26
Slide 27: Half-year results presentation
Half-year results presentation 1 September 2011 Unissons nos Talents TALENTED TOGETHER 27