Slide 1: 2019 half-year results
2019 half-year results CECOnNOocoOM
Slide 2: HY 2019 Results, Message from Chairman & CEO, Outlook
01 HY 2019 Results 02 Message from Chairman & CEO 03 Outlook
Slide 3: HY 2019 financial results
01 HY 2019 financial results
Slide 4: Angel Benguigui, Group Finance Director
ANGEL BENGUIGUI Group Finance Director 2019 Half-Year Results 3
Slide 5: Key figures
Key figures Net Cash flow from Revenue(1) ROP(1)(3) Net financial debt(2) operating activities(1) €1.24 Bn €40 M €405 M €61 M +2.9% 3.2% 2.5x +€20 M (2) (2) margin EBITDA 12M vs. H1 2018 +1.6% 0.9 organic GEARING (1) From ongoing operations after restatement according to IFRS 5 regarding assets held
Slide 6: Moderate growth in Group revenue, improved profitability
Moderate growth in Group revenue Improved profitability Revenue from ongoing operations(1)(3) Modest organic growth +1.6% H1 2019 €1,238 M + 2.9% H1 2018 €1,203 M Margin of 3.2% on revenue from ongoing operations. ROP up 17.2% vs. H1 2018 Company strategy refocused on historical business, Recurring
Slide 7: Revenue by geographical area
Revenue by geographical area H1 2019 revenue(1) (%) North America North & East Europe 3% 8% Stronghold and scale in France (+8%) France and Benelux (+7%) South Europe 51% Solid performance in South 24% Total Europe (+4%) despite €1.2 Bn embezzlement discovered in Italy end of June Benelux 14% (1) Fr
Slide 8: Focus on Italy
Focus on Italy • The Group learned at the end of June 2019 that its Italian subsidiary had been the victim of embezzlement between 2012 and 2018. • It represents an aggregate amount of suspicious billings already booked by Econocom Italy estimated by the Italian Authorities at €18.6 M. • The indirec
Slide 9: TMF at a glance
TMF at a glance Slight decrease in revenue Revenue from ongoing operations(1)(3) €561 M (-3.9%) H1 2019 €561 M - 3.9% Refinanced business revenue H1 2018 €584 M suffered from lag primarily in Italy EDFL contributes less to revenue in H1 2019 €47 M (vs. €59 M in H1 2018) Recurring operating profit(1)
Slide 10: Technology Management & Financing
Technology Management & Financing Contract portfolio Stability of portfolio €6.0 Bn at original purchasing price (flat) Residual interest(1) €2.8 Bn 2.7% of the Original Purchase Price >2x covered by remarketing of assets and contract €0.16 Bn extensions Outstandings Original Residual interest (1) p
Slide 11: Digital Services & Solutions at a glance
Digital Services & Solutions at a glance Revenue from ongoing operations(1) H1 2019 €677 M + Continuing sustained growth 9.3% H1 2018 €620 M Major regions contributed to the dynamism of the activity ROP boosted by: • Growth in revenue Recurring operating profit(1)(2) • Dynamism in France H1 2019 €24
Slide 12: Consolidated income statement
Consolidated income statement (In €M) H1 2018(1) H1 2019 Revenue 1,232 1,238 Recurring operating profit before amortisation of intangible assets 34.4 40.2 from acquisitions Net non-recurring Recurring operating profit 32.3 39.2 expenses of €13.7 M Non-recurring operating incomes and expenses -14.2 -
Slide 13: FCF generation
FCF generation Negative cash flow generation due to… In €M FCF = -€116 M H1 2019 • €139 M WCR outflow due -405 -252 primarily to the seasonal nature of the business and to delay +61 -139 in refinancing deals in Italy and some delay in cash collection Net Operating -28 NFD (1) Cash flow -10 -25 • €15
Slide 14: Structure of Net Financial Debt
Structure of Net Financial Debt(1) In €M 136 -97 NFD under control: • €405 M -187 (2.5x EBITDA) -405 • €252 M of which 0 backed by lease Net Contracts contracts cash and receivables refinanced -101 with recourse -41 Net cash impacted OCEANE by minority stakes -150 in satellites being -39 bought back
Slide 15: Simplified consolidated balance sheet
Simplified consolidated balance sheet ASSETS (IN €M) 31/12/2018 30/06/2019(1) EQUITY & LIABILITIES (IN €M) 31/12/2018 30/06/2019(1) Goodwill 631 539 Equity 491 451 Residual interest in leased assets 122 124 Commitments on residual value 73 73 Other non-current assets 209 256 Other non-current liabil
Slide 16: Message from Chairman & CEO
02 Message from Chairman & CEO
Slide 17: Jean-Louis Bouchard, Chairman & CEO
JEAN-LOUIS BOUCHARD Chairman & CEO 2019 Half-Year Results 16
Slide 18: Outlook
03 Outlook
Slide 19: Julie Verlingue, Deputy CEO
JULIE VERLINGUE Deputy CEO 2019 Half-Year Results 18
Slide 20: Transformation plan is under way
Transformation plan is under way Specify vision and strategy Cut costs Transform Upgrade professional practices Attract, develop and retain talented people 2019 Half-Year Results 19
Slide 21: Cost reduction program: Magnitude and Timeline
Cost reduction program: Magnitude and Timeline Cost Base 2018 Cost Base - 2021 -€96.5 M Implementation periods 2019-2020 2019 Half-Year Results 20
Slide 22: Cost reduction plan
Cost reduction plan 2019 on track September 2019 : global cost 2019 announced €20 M freeze 2019 already committed €24 M 2020 “Zero Based Budget” approach 2019 ambition >€24 M Plan announced with top and mid-management onboarded Ad hoc transformation office 2019 Half-Year Results 21
Slide 23: Outlook
Outlook 2019 ROP Ambitious cost confirmed at €128 M reduction program Continued discipline Disposal of in cash generation non-core businesses 2019 Half-Year Results 22
Slide 24: Thank you
Thank you Contact relations investisseurs Contact relations presse: et relations actionnaires: info@capvalue.fr Arthur.rozen@econocom.com Tel. +33 1 80 81 50 00
Slide 25: Appendix
Appendix
Slide 26: Stock Exchange
Stock Exchange Equity table Number of shares: • 245,380,430 Treasury Stocks Share price(1): 6.8% • 2.76€ Holding companies held by Mr. Bouchard Listing place: Free float 36.4% • Euronext Brussels 56.8% Market Cap • EBR: ECONB €677 M • ISIN: BE0974313455 Stock Indexes: • Bel Mid and Family Business (
Slide 27: Revenue bridge
Revenue bridge According to IFRS 5, H1 2019 revenue generated by assets held for sale and discontinued operations were deconsolidated. €86 M €89 M H1 2018 numbers were restated. €30 M On the contrary, H1 2018 numbers were not restated after the €1,203 M + €1,238 M introduction of IFRS 16 as of +2.9%
Slide 28: CE COMOCOFTT)
CE COMOCOFTT)