Sopra Steria Group Sa · EURONEXT:SOP
Sopra Steria Group Sa — Shareholder Meeting (June 2018)
36 slides from Sopra Steria Group Sa's shareholder meeting presentation, Jun 12, 2018
Slide 1: Annual General Meeting, Paris, 12 June 2018
ANNUAL GENERAL MEETING Paris, 12 June 2018 *Réussir la transformation. Ensemble. Delivering Transformation. Together.*
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This document contains forecasts in respect of which there are risks and uncertainties concerning Sopra Steria’s future growth and profitability. The Group highlights the fact that the signature of licence contracts, which often represent investments for clients, are more
Slide 3: Annual General Meeting Summary
ANNUAL GENERAL MEETING SUMMARY 1|Annual General Meeting Agenda 2|Board of Directors’ Report - 2017 financial statements and operational situation 3|Auditors’ Reports 4|Information about proposed resolutions 5|Discussion 6|Vote 7|Closing 3 2018 Annual General Meeting – 12/06/2018
Slide 4: Agenda (1/6)
AGENDA (1/6) Notice published in the “Bulletin des Annonces Légales Obligatoires” on 25 May 2018 Requiring approval at the Ordinary General Meeting 1. Approval of the individual financial statements for the financial year ended 31 December 2017; approval of non-deductible expenses. 2. Approval of th
Slide 5: Agenda (2/6)
AGENDA (2/6) Notice published in the “Bulletin des Annonces Légales Obligatoires” on 25 May 2018 Requiring approval at the Ordinary General Meeting 9. Setting of directors’ fees at €500,000. 10. Reappointment of a Principal Statutory Auditor. 11. Authorisation granted to the Board of Directors, for
Slide 6: Agenda (3/6)
AGENDA (3/6) Notice published in the “Bulletin des Annonces Légales Obligatoires” on 25 May 2018 Requiring approval at the Extraordinary General Meeting 14. Delegation of powers to the Board of Directors, for a period of 26 months, to decide to increase the share capital, without preemptive rights f
Slide 7: Agenda (4/6)
AGENDA (4/6) Notice published in the “Bulletin des Annonces Légales Obligatoires” on 25 May 2018 Requiring approval at the Extraordinary General Meeting 17. Delegation of powers to the Board of Directors, for a period of 26 months, to decide, with or without preemptive rights for existing shareholde
Slide 8: Agenda (5/6)
AGENDA (5/6) Notice published in the “Bulletin des Annonces Légales Obligatoires” on 25 May 2018 Requiring approval at the Extraordinary General Meeting 20. Delegation of powers to the Board of Directors, for a period of 26 months, to decide to increase the share capital by capitalising premiums, re
Slide 9: Agenda (6/6)
AGENDA (6/6) Notice published in the “Bulletin des Annonces Légales Obligatoires” on 25 May 2018 Requiring approval at the Extraordinary General Meeting 25. Change in the age limit associated with the position of Chairman of the Board of Directors and corresponding amendment to Article 15 of the Art
Slide 10: Board of Directors' Report – 2017 financial statements and operational situation
ANNUAL GENERAL MEETING SUMMARY 1|Annual General Meeting Agenda 2|Board of Directors’ Report – 2017 financial statements and operational situation 3|Auditors’ Reports 4|Information about proposed resolutions 5|Discussion 6|Vote 7|Closing 10 2018 Annual General Meeting – 12/06/2018
Slide 11: Sopra Steria at 31/12/2017
SOPRA STERIA AT 31/12/2017 A EUROPEAN LEADER IN DIGITAL TRANSFORMATION Top 5 European digital services Top 10 operating in Europe companies 41,000+ Operations in End-to-end 2017 revenue of €3.8bn employees more than 20 countries approach Rest of the World Business Process Services Other 2% Retail Ba
Slide 12: A Group Committed to a More Sustainable World
A GROUP COMMITTED TO A MORE SUSTAINABLE WORLD OUR STRATEGY AND A SAMPLE OF INITIATIVES Workforce Ethics and Values Society Environment The Group’s Responsible An approach based on Closer dialogue Strong commitments and Employment policy reflects transparency, equity and with stakeholders – Civic an
Slide 13: Ownership
OWNERSHIP A LEADING SHAREHOLDER AS THE PROJECT’S GUARANTOR OVER THE LONG TERM Pasquier Odin Managers family family 3.1% 68.4% 28.4% Founders & Sopra GMT Interests managed on Treasury management Soderi Free float 19.6% (28.8%) behalf of employees shares 2.9% (4.4%) Shareholders’ agreement 22.6% 7.8%
Slide 14: Organic Growth Since 2004 ≃ 5%/Year
SOPRA STERIA HISTORICAL PERFORMANCE ORGANIC GROWTH SINCE 2004 ≃ 5%/YEAR 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 2014 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2015 2
Slide 15: Stock Price Evolution Since 2004
STOCK PRICE EVOLUTION SINCE 2004 Sopra Steria Group SA Monthly 178.80 4.10 2.35% 12:43:30 VWAP:177.67 High: 178.80 Low: 17.53 Chg: 602.00% Sopra Steria Group SA - Price 200 178.80 100 90 80 70 60 50 40 30 20 10 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 Share price as of 8/06/2018 15 20
Slide 16: 2017 Key Events
2017 KEY EVENTS Achievement of 3-year targets set in 2015 following the merger Well-established organic growth dynamic Successful turnarounds for Germany and IT infrastructure management in France Launch of repositioning plan for the United Kingdom Efforts underway to drive up the value of offerings
Slide 17: Key Figures for 2017
KEY FIGURES FOR 2017 Revenue Operating profit on business Net profit – Group share activity €3,845.4m €329.8m €171.4m i.e. organic growth* of 3.5% i.e. 8.6% of revenue i.e. 4.5% of revenue 4.6% growth on a constant exchange rate basis up 9.5% relative to 31/12/2016 up 14.0% relative to 31/12/2016 Fr
Slide 18: Operating Performance by Reporting Unit
OPERATING PERFORMANCE BY REPORTING UNIT STRONG IMPROVEMENT FOR THE OTHER EUROPE REPORTING UNIT Revenue Operating profit on business activity 2016 Organic 2017 2017 2016 Restated* growth (€m) (% of Rev.) (% of Rev.) (€m) (%) France 1,597.0 1,539.7 + 3.7% 8.6% 8.1% United Kingdom 801.7 868.2 - 7.7% 6.
Slide 19: Income Statement for Financial Year 2017
INCOME STATEMENT FOR FINANCIAL YEAR 2017 2017 2017 2016 2016 (€m) (% of Rev.) (€m) (% of Rev.) Revenue 3,845.4 3,741.3 Organic growth 3.5% Operating profit on business activity 329.8 8.6% 301.1 8.0% Expenses related to stock options and related items - 21.2 - 12.1 Amortisation of allocated intangibl
Slide 20: Change in Net Financial Debt in 2017
CHANGE IN NET FINANCIAL DEBT IN 2017 STABLE RELATIVE TO 2016 506.0 -10.7 510.1 -41.7 -1.2 500 -98.8 450 €m 400 350 +148.4 €111.4m Excl. sale of trade receivables 300 Net financial debt Free cash flow Changes in scope and Dividends Changes in treasury shares Currency changes Net financial debt at 31/
Slide 21: A Sound Financial Position at 31/12/2017
A SOUND FINANCIAL POSITION AT 31/12/2017 Net financial debt Available undrawn amount: at 31/12/2017: €1.1bn €510.1m i.e. 61% of authorised amount* Long terms to maturity EBITDA leverage ratio: • Bond: 2019 1.44x (max. 3.0x) • Bank borrowing facilities: 2022 (extension possible to 2023) * Assuming a
Slide 22: Simplified Balance Sheet at 31/12/2017
SIMPLIFIED BALANCE SHEET AT 31/12/2017 31/12/2017 31/12/2016 (€m) (€m) Goodwill 1,590.6 1,557.0 Allocated intangible assets 161.5 179.7 Other fixed assets 179.7 160.8 Equity-accounted investments 189.1 202.3 Fixed assets 2,120.9 2,099.8 Net deferred tax 98.7 128.9 Trade accounts receivable (net) 1,1
Slide 23: 2020 Project
2020 PROJECT An independent project A growth project • Leading shareholder as the • Organic growth project’s guarantor over the long • Targeted external growth term • Focus on Europe for Services and • Significant employee share worldwide ambitions for ownership Software 2020 A project with added va
Slide 24: Ambitions for 2020
AMBITIONS FOR 2020 Operating margin on business activity around 10% Annual organic growth of between Free cash flow of between 5% to 7% 3% and 5% over the period of revenue 2020 24 2018 Annual General Meeting – 12/06/2018
Slide 25: Reminder of 2018 Targets
REMINDER OF 2018 TARGETS Organic revenue growth of between 3% and 5% Slight improvement in operating margin on business activity with a seasonality more important than in 2016 (H1 < H2) Free cash flow >€170m (>€133m including 2017 sale of trade receivables) 25 2018 Annual General Meeting – 12/06/201
Slide 26: Q1 2018 Revenue Performance
Q1 2018 REVENUE PERFORMANCE Revenue Q1 2017 Organic Total Q1 2018 Restated* growth growth (€m) (€m) (%) (%) France 410,4 410,4 + 0,0% + 5,8% of which C&SI 360,2 360,2 + 0,0% + 6,8% of which I2S 50,2 50,2 + 0,0% - 0,2% United Kingdom 205,2 205,2 + 0,0% - 13,5% Other Europe 200,9 200,9 + 0,0% + 17,7%
Slide 27: Auditors' Reports
ANNUAL GENERAL MEETING SUMMARY 1|Annual General Meeting Agenda 2|Board of Directors’ Report - 2017 financial statements and operational situation 3|Auditors’ Reports 4|Information about proposed resolutions 5|Discussion 6|Vote 7|Closing 27 2018 Annual General Meeting – 12/06/2018
Slide 28: Auditors' Reports
AUDITORS’ REPORTS Statutory Auditors’ report on the consolidated and individual financial statements Statutory Auditors’ special report on regulated agreements and commitments 28 2018 Annual General Meeting – 12/06/2018
Slide 29: Information about proposed resolutions
ANNUAL GENERAL MEETING SUMMARY 1|Annual General Meeting Agenda 2|Board of Directors’ Report - 2017 financial statements and operational situation 3|Auditors’ Reports 4|Information about proposed resolutions 5|Discussion 6|Vote 7|Closing 29 2018 Annual General Meeting – 12/06/2018
Slide 30: Board of Directors Pending on the Annual General Meeting Vote
BOARD OF DIRECTORS PENDING ON THE ANNUAL GENERAL’ MEETING VOTE 15 DIRECTORS AND 1 NON-VOTING DIRECTOR PIERRE ÉRIC PASQUIER HAYAT ASTRID 54% ÉRIC PASQUIER ANCIAUX Independent SOLFRID Directors SOPRA GMT Represented by KATHLEEN CLARK BRACCO SKILBRIGT MICHAEL JEAN-BERNARD GOLLNER RAMPINI 46% - 54%
Slide 31: Information about Proposed Resolutions
INFORMATION ABOUT PROPOSED RESOLUTIONS Ordinary General Meeting The resolutions submitted for the approval of the Ordinary General Meeting require a quorum of at least one fifth of the total voting shares and a majority of the votes of the shareholders present or represented by proxy holders. Extr
Slide 32: Discussion
ANNUAL GENERAL MEETING SUMMARY 1|Annual General Meeting Agenda 2|Board of Directors’ Report - 2017 financial statements and operational situation 3|Auditors’ Reports 4|Information about proposed resolutions 5|Discussion 6|Vote 7|Closing 32 2018 Annual General Meeting – 12/06/2018
Slide 33: Vote
ANNUAL GENERAL MEETING SUMMARY 1|Annual General Meeting Agenda 2|Board of Directors’ Report - 2017 financial statements and operational situation 3|Auditors’ Reports 4|Information about proposed resolutions 5|Discussion 6|Vote 7|Closing 33 2018 Annual General Meeting – 12/06/2018
Slide 34: End of the Annual General Meeting
END OF THE ANNUAL GENERAL MEETING 34 2018 Annual General Meeting – 12/06/2018
Slide 35: 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 the restated revenue for the same period in the prior financial
Slide 36: Contacts
CONTACTS Investor Relations Team Olivier PSAUME T. +33 (0)1 40 67 68 16 Lima ABDELLAOUI T. +33 (0)1 40 67 86 88 Sopra Steria Delivering Transformation. Together. Financial Communications Department 9 bis rue de Presbourg 75116 Paris www.soprasteria.com - investors@soprasteria.com 36 2018 Annual Gene