Sopra Steria Group Sa · EURONEXT:SOP
Sopra Steria Group Sa — Non-Deal Roadshow (May 2023)
33 slides from Sopra Steria Group Sa's roadshow presentation, May 2023
Slide 1: Roadshow USA & Canada
Roadshow USA & Canada May & June 2023
Slide 2: Disclaimer
Disclaimer This document contains forward-looking information subject to certain risks and uncertainties that may affect the Group’s future growth and financial results. Readers are reminded that licence agreements, which often represent investments for clients, are signed in greater numbers in the
Slide 3: Agenda
Company overview Financial performance & objectives for 2023 Acquisitions Annexes 3 May & June 2023 – Roadshow USA & Canada
Slide 4: Company overview
Company overview 4 May & June 2023 – Roadshow USA & Canada
Slide 5: Sopra Steria, a European leader in digital transformation
Sopra Steria, a European leader in digital transformation Breakdown of revenue – Financial year ended 31 December 2022 Among the top 5 European digital services companies Among the top 12 operating in Europe 2022 revenue 50,000 Operations in End-to-end €5.1bn employees 30 countries approach France C
Slide 6: Ambitious corporate plan
Ambitious corporate plan Reference shareholder Organic growth Employee shareholding …in services and External growth Performance worldwide in software End-to-end approach Software Expansion of Consulting Entrepreneurial culture and Targeting specific verticals close customer relationships Tech Digit
Slide 7: Strategy built on clearly defined elements
Strategy built on clearly defined elements 100 European key accounts End-to-end approach Industrial approach 8 preferred verticals, 3 of which Strengthening of consulting DevOps and asset-based are strategic Tech & Digital platforms • Financial Services • Cloud, Cyber, AI, Data, Blockchain X-Shore •
Slide 8: Anchoring our strategy in sustainability
…anchoring our strategy in sustainability With three main ESG priorities 2040 objective(1) : -85% A proactive policy of bringing Digital sobriety 2022 result : -68%(2) vs 2015 more women into the Measuring the environmental impact of workforce and senior our clients’ systems GHG-reduction targets to
Slide 9: A core shareholder backing the corporate plan
A core shareholder backing the corporate plan Ownership structure at 31 December 2022 Pasquier Treasury Odin Managers family shares family 28.4% 2.7% 68.5% 0.4% Founders & Management Sopra GMT Shares managed on behalf Treasury shares Free float 2.6% 19.6% of employees Shareholders’ 6.4% 0.5% 70.8% a
Slide 10: Sopra Steria historical performance
Sopra Steria historical performance 5101 Historical average: revenue organic growth +6% ; 4683 4434 operating margin 8.8% 4263 4095 3845 3741 3584 3370 Revenue (€m) Operating profit on business activity (€m) 1349 1216 1050 964 958 912 856 781 672 556 37 47 63 76 82 65 86 93 110 109 231 246 301 329 3
Slide 11: Sopra Steria historical net profit and dividend
Sopra Steria historical net profit and dividend Historical average DPS / EPS = 30% 5,5 185 Net profit attributable to Axway (€m) 4,3 4,5 Net profit attributable to the Group (€m) 135 3,2 3,5 Notes : (1) Axway spin off 2,4 8 June 2011, Sopra Group AGM approved 2,2 2,5 the distribution by Sopra Group
Slide 12: Medium-term ambitions
Medium-term ambitions Financial targets Operating performance - 2022 / 2024 Services External financiers growth Revenue organic growth +4% to +6% pa Operating margin rate on business activity ~ 10% in 2024 Proactively pursuing consolidation Free cash flow 5% to 7% of rev. 12 May & June 2023 – Roadsh
Slide 13: Financial performance & Objectives for 2023
Financial performance & Objectives for 2023 13 May & June 2023 – Roadshow USA & Canada
Slide 14: Good performance in 2022
Good performance in 2022 Sopra Steria is on track to reach its medium-term target of 10% for operating margin on business activity Organic Free cash revenue flow growth Operating margin Net on business profit margin activity 14 May & June 2023 – Roadshow USA & Canada
Slide 15: Structural improvement in return on capital employed and performance
Structural improvement in return on capital employed and performance 8.9% 14.1% 287 8.1% 264 7.0% 11.4% 204 9.3% 5.6% 5.6% 4.8% 2020 2021 2022 2020 2021 2022 2020 2021 2022 1) Return on capital employed: (Profit from recurring operations after tax + Profit from equity-accounted companies) / (Equity
Slide 16: Strengthened balance sheet structure
Strengthened balance sheet structure Assets + WCR (€m) 2,672.1 2,772.0 31/12/22 31/12/21 6% Net financial debt 12% Gearing Gearing 15% Net financial debt / 8% 19% 13% Equity 4% Lease liabilities 5% 4% 10% Leverage Leverage Net financial debt / EBITDA(1) 0.31x 0.73x Provisions for contingencies and l
Slide 17: Q1 2023 – Revenue growth by reporting unit
Q1 2023 – Revenue growth by reporting unit Breakdown by reporting unit Revenue Q1 2022 Organic Total Q1 2023 Restated* growth growth (€m) (€m) (%) (%) France 589.9 538.4 + 9.6% + 14.9% United Kingdom 216.7 207.7 + 4.3% - 1.0% Other Europe 410.4 363.0 + 13.1% + 12.5% Sopra Banking Software 107.7 102.
Slide 18: Financial targets for 2023 & 2024
Financial targets for 2023 & 2024 Organic revenue Operating Free cash flow growth margin on business activity For , Sopra Steria confirms its target of reaching an operating margin on business activity of around 18 May & June 2023 – Roadshow USA & Canada
Slide 19: Recent acquisitions
Recent acquisitions 19 May & June 2023 – Roadshow USA & Canada
Slide 20: 2023 changes in scope
2023 changes in scope Ownership 93.83% after closing of the public Consolidation 1st March 2023 offer 2022 results: Delisting procedure initiated • €91.9m in revenue • €5.8m in operating profit on business activity Consolidation 1st March 2023 2022 results: • €272.8m in revenue • €13.8m in operating
Slide 21: Announced tie-up with Ordina N.V.
Announced tie-up with Ordina N.V. Key elements of the proposed operation SHARE OWNERSHIP TRANSACTION SCHEDULE KEY TERMS IMPACT ON SOPRA STERIA STRUCTURE As of March 20, 2023 March 21 Block purchase price1: 2024E EPS (est.)4: €5.75/ share +1.2% Number of shares: Satisfaction of 90,015,795 conditions
Slide 22: May & June 2023 – Roadshow USA & Canada
22 May & June 2023 – Roadshow USA & Canada
Slide 23: Annexes
Annexes 23 May & June 2023 – Roadshow USA & Canada
Slide 24: Helping combat climate change
Helping combat climate change Plan to reduce our greenhouse gas (GHG) emissions – 2022 results Direct activities Energy management -68%1 per employee -85%2 per employee Low carbon mobility (baseline: 2015) by 2040 (baseline: 2015) Sites, business travel, data policy centres Digitisation Offsetting e
Slide 25: Detailed breakdown of revenue by country
Detailed breakdown of revenue by country Financial year ended 31/12/2022 SERVICES – Revenue to 31/12/2022 BUSINESS SOLUTIONS – Revenue to 31/12/2022 Revenue Other Europe = €1,473m o/w Germany = 28% o/w Scandinavia = 34% o/w SFT = 11% o/w Spain = 11% o/w Benelux = 7% o/w Italy = 6% o/w Switzerland =
Slide 26: Breakdown of Solutions revenue
Breakdown of Solutions revenue Financial year ended 31/12/2022 BUSINESS SOLUTIONS – Revenue by product BUSINESS SOLUTIONS – Revenue by service line Sopra Banking Software 2022 revenue = €427m o/w France = €180m o/w Outside France = €247m €699M €699M BUSINESS BUSINESS SOLUTIONS SOLUTIONS Sopra Bankin
Slide 27: 2022 operating performance
2022 operating performance Breakdown by reporting unit Operating profit on business Revenue Chiffre d'affaires activity d'activité Résultat opérationnel 2021 Organic 2022 2021 Croissance 2022 2021 2022 Restated* growth 2022 2021 (€m) Retraité* organique (% of Rev.) (% of Rev.) (M€) (€m) (%) (% du CA
Slide 28: Income statement
Income statement Financial year 2022 2022 2022 2021 2021 (€m) (% of Rev.) (€m) (% of Rev.) Revenue 5,101.2 4,682.8 Organic growth 7.6% Operating profit on business activity 453.1 8.9% 379.2 8.1% Share-based payment expenses -23.2 -6.7 Amortisation of allocated intangible assets -32.3 -33.2 Profit fr
Slide 29: Breakdown of change in net financial debt
Breakdown of change in net financial debt Financial year 2022 2022 2021 (€m) (€m) Operating profit on business activity 453.1 379.2 Depreciation, amortisation and provisions (excluding allocated intangible assets) 144.4 173.2 EBITDA 597.5 552.3 Non-cash items 5.4 - 0.9 Tax paid -87.8 -77.3 Change in
Slide 30: Simplified balance sheet
Simplified balance sheet Financial year 2022 31/12/2022 31/12/2021 (€m) (€m) Goodwill 1,943.9 1,984.3 Allocated intangible assets 108.3 131.8 Other fixed assets 261.3 216.4 Right-of-use assets 359.9 343.1 Equity-accounted investments 183.5 198.1 Fixed assets 2,857.0 2,873.8 Net deferred tax 58.5 99.
Slide 31: Diversified and accessible financing
Diversified and accessible financing 31/12/2022 31/12/2022 Amount Amount used authorised (€m) (€m) Available undrawn amount of €1.3bn Bond 250.0 250.0 i.e. 81% of authorised am ount (1) Multi-currency revolving credit facility - 1,100.0 Overdrafts and bilateral credit lines 60.0 271.5 Total 310.0 1,
Slide 32: UK pension fund deficit net of tax
UK pension fund deficit net of tax €m 300 245 250 200 200 167 150 125 123 119 113 100 49 50 0 -50 -25 31/12/2014 31/12/2015 31/12/2016 31/12/2017 31/12/2018 31/12/2019 31/12/2020 31/12/2021 31/12/2022 32 May & June 2023 – Roadshow USA & Canada
Slide 33: Alternative performance measures
Alternative performance measures Restated revenue: Revenue for the prior year, expressed on the basis of the scope and exchange rates for the current year. Organic revenue growth: Increase in revenue between the period under review and restated revenue for the same period in the prior financial year