Sopra Steria Group Sa · EURONEXT:SOP
Sopra Steria Group Sa — Sopra Group — FY2008 Earnings Presentation
35 slides from Sopra Steria Group Sa's earnings presentation, Feb 13, 2009
Slide 1: 2008 Annual Results Presentation
2008 Annual Results Presentation February 13, 2009 Unissons nos Talents TALENTED TOGETHER Annual Results – 13 February 2009 1
Slide 2: Agenda
Agenda 2008 Achievements Complementary Information 2008-2009 Context and Priorities Outlook Annual Results – 13 February 2009 2
Slide 3: Revenue (€m)
Revenue (€m) 1 129.5 44.8 1 001.4 43.9 Growth: Full Year Q4 Total +12.8% +11.4% Organic +10.5% +7.6% 694.6 597.5 Organic Growth 2008 Management Consulting + 2.1% SSI* France + 14.2% SSI* Europe + 2.6% 218.9 Axway + 9.4% 214.9 145.1 171.2 2007 2008 *SSI: Systems & Solutions Integration Annual Results
Slide 4: Income Statement
Income Statement 31/12 31/12 % 2008 2007 Change €m % €m % Revenue 1,129.5 1,001.4 +12.8% Staff costs - Employees -721.8 -647.9 +11.4% +12.5% Staff costs - Contractors -97.6 -80.7 +20.9% Operating expenses -193.8 -167.4 +15.8% Depreciation, amortisation and provisions -14.0 -14.6 -4.1% Profit from re
Slide 5: Operating Profit by Division
Operating Profit by Division 2008 2007 Revenue PRO** % Margin Revenue PRO** % Margin (in millions of euros) Management consulting 44.8 2.3 5.1% 43.9 4.5 10.3% SSI* France 694.6 61.6 8.9% 597.5 52.3 8.8% SSI* Europe 218.9 18.2 8.3% 214.9 19.5 9.1% Axway 171.2 20.2 11.8% 145.1 14.5 10.0% Total Group 1
Slide 6: Balance Sheet
Balance Sheet 31/12 31/12 €m 2008 2007 Goodwill 372.7 300.6 Allocated intangible assets 26.4 - Other fixed assets 41.0 42.2 Assets 440.1 342.8 Trade accounts receivable (net) 401.9 359.0 Other assets and liabilities -375.5 -322.7 Operating assets and liabilities 26.4 36.3 ASSETS + WCR 466.5 379.1 31
Slide 7: Equity
Equity M€ Position at 31 December 2007 248.8 Dividends - 19.3 Net profit - Group share 58.2 Capital increase through exercise of 0.8 share subscription options Acquisition or disposal of treasury shares - 0.6 Share-based payments 0.2 Actuarial differences - 1.1 Change in financial instruments - 1.8
Slide 8: Change in Net Debt
Change in Net Debt 2008 2007 €m Net debt at beginning of period (A) 130.3 97.7 Cash from operations before changes in working 108.4 104.6 capital Income taxes paid -29.3 -38.2 Changes in working capital requirements -2.8 -14.7 Net cash flow from operating activities 76.3 51.7 Net cash used in invest
Slide 9: Financial Ratios
Financial Ratios 11.65 2006 2007 2008 11.52 10.05 74% 52% 4.80 4.98 45% 3.86 1.79 1.15 1.28 Basic earnings per Net Debt / Equity Net Debt / EBITDA OP* / Net share (€) Borrowing Cost <100% <3 >5 Banking Covenants *OP: Operating Profit Annual Results – 13 February 2009 9
Slide 10: Agenda
Agenda 2008 Achievements Complementary Information 2008-2009 Context and Priorities Outlook Annual Results – 13 February 2009 10
Slide 11: Business Sector & Vertical Market Positioning
Business Sector & Vertical Market Positioning Orga Consultants Retail Axway Business Consulting Banking Public Sector 4% 4% 8% 6% 15% 15% 8% 6% 14% 24% 24% Fixed-price 14% Proprietary 14% 14% Projects 13% 13% Solutions Telecoms 12% 12% 6% 6% Insurance 17% 17% 18% 18% 20% 20% 29% 29% Staffing Service
Slide 12: Breakdown of 2008 Growth
Breakdown of 2008 Growth +12.8% Total Growth +10.5% Organic Growth +11% +8% +13% +11% +15% +12% +14% +11% Q1 Q2 Q3 Q4 Full year 2007 Revenue 2008 Revenue Annual Results – 13 February 2009 12
Slide 13: 2008 Revenue by Region
2008 Revenue by Region Switzerland Italy Benelux United Kingdom 6% 6% France 8% 8% Spain 9% 9% Americas/Asia 77% 77% 5% 5% 24% 24% Europe France CSSI Europe Revenue ex. France Asia 71% 71% 1% 1% Americas 30% 30% 39% 39% France Group Revenue 30% 30% Europe ex. France Axway Revenue Annual Results – 13
Slide 14: Axway: Focus on Revenue
Axway: Focus on Revenue +20% +11% +44% Services 32% 32% 36% 36% Licences +17% 32% 32% Maintenance 2005 2006 2007 2008 Licences Type of Revenue Annual Results – 13 February 2009 14
Slide 15: Change in Workforce (excluding contractors)
Change in Workforce (excluding contractors) 12,450 11,320 9,910 8,210 7,580 ex. France 6,750 France Groupe 4,240 3,740 3,160 December 2006 December 2007 December 2008 Annual Results – 13 February 2009 15
Slide 16: Agenda
Agenda 2008 Achievements Complementary Information 2008-2009 Context and Priorities Outlook Annual Results – 13 February 2009 16
Slide 17: Objectives set in early 2008
Objectives set in early 2008 Organic growth outstripping that of the IT services market average Operating margin improvement Business model confirmed Pursuit of our major transformation projects Annual Results – 13 February 2009 17
Slide 18: Business Model Confirmed
Business Model Confirmed 4 large, separately identified divisions with high potential margins, capitalising on our current savoir-faire Axway Consulting 15% 15% 12% 12% Proprietary 13% 13% Systems Solutions Integration 60% 60% & Application Outsourcing Annual Results – 13 February 2009 18
Slide 19: Pursuit of major transformation projects
Pursuit of major transformation projects Industrialisation Offerings, partnerships, key client accounts Banking Solutions: a European ambition Consulting: reinforce our positions European subsidiaries: amplify the success Annual Results – 13 February 2009 19
Slide 20: Industrialisation
Industrialisation En 2008 Transformation of the project leader role and career Continued progress on methods, tools and processes Service Centres Global Project Management Capex 10M€ and Opex 7M€ in 2008 En 2009 Goals and objectives maintained and managed pragmatically to grow the Group’s competitiv
Slide 21: Nearshore
Industrialisation Service Centres / Xshore City Staff Markets addressed Rodez Lille / Tourcoing 250 Regional Onshore Onshore Aix-en-Provence 150 Regional Toulouse / Albi 400 Regional Rennes / Nantes 300 Telecoms Montreuil 300 Public Sector Bordeaux 100 Regional subtotal France 1500 Nearshore Madrid
Slide 22: Industrialisation
Industrialisation Objectives Onshore and offshore positioning adapted to demand Long term goal, 15% to 20% of staff offshore, a ratio which corresponds to our Business Model End End 2008 2009 Offshore staff 1,200 1,900 % of staff offshore 10% 15% Teams reinforced when necessary by partnerships with
Slide 23: Offerings, Partnerships, Key Client Accounts
Offerings, Partnerships, Key Client Accounts 2008 – Strong growth In application outsourcing With key accounts In the Xnet, Oracle and SAP domains 2009 – Renew concentrated efforts Application outsourcing Internationalisation of key client accounts Concentration on sectors and clients with strong gr
Slide 24: Banking Solutions
Banking Solutions 2008 – Set up of software developer model for Evolan Credits Payments Risks and Reporting Retail banking 2009 – Gain leverage Leverage the Group’s positioning in the banking sector by developing an approach that covers a broad spectrum Products Consulting & Application Outsourcing
Slide 25: Consulting
Consulting 2008 Orga Consultants – Management Consulting Business Consulting – Sector-specific Consulting, Solutions, Technology Increase added-value for the Group 2009 Operational integration of teams to build up a wide-ranging offering Products Consulting & Application Outsourcing Projects Annual
Slide 26: European business units
European business units 2008 Good performance if a very difficult market context Management transition 2009 Operational and structural integration carried out fully for the European subsidiaries Offerings Key client accounts Industrialisation Tightened operational management Annual Results – 13 Febr
Slide 27: 2009 Context
2009 Context For clients, IT systems have become mission-critical tools for performance, flexibility and innovation IT services companies have evolved Industrialisation and Offshore Outsourcing The crisis limits visibility and confidence It is major and profound But probably limited in time Annual R
Slide 28: Resilience: Sources of sustainable growth
Resilience: Sources of sustainable growth Obligatory investments Compliance Deregulation Mergers/Restructuring IS Rationalization New innovation projects E-commerce Embedded computing Mobility Government reform Business intelligence Etc. Outsourcing Applications Infrastructure Annual Results – 13 Fe
Slide 29: Focus on Axway
Focus on Axway Unissons nos Talents TALENTED TOGETHER Annual Results – 13 February 2009 29
Slide 30: A global objective for Axway
A global objective for Axway Ambitions in 2008 State of the art platform Distribution system re-aligned Acquisitions Growth and margin improvement State of affaires today Progression on the platform and the distribution network Acquisition of Tumbleweed rolled out smoothly Achievement of growth and
Slide 31: Business profile - Axway
Business profile - Axway *N.B.: 1€ = 1$ Asia Services 2% 2% Americas 27% 27% 33% 33% 36% 36% 38% France Licences 38% 27% 37% 37% 27% Maintenance Europe ex. France Regions* Type of Revenue* Annual Results – 13 February 2009 31
Slide 32: Agenda
Agenda 2008 Achievements Complementary Information 2008-2009 Context and Priorities Outlook Annual Results – 13 February 2009 32
Slide 33: Independent company project continues
Independent company project continues Strategic decisions confirmed For businesses and offerings For vertical and geographic positioning Financial objectives and deadlines associated with Group long-term project will be restated when the worst of the crisis is over Annual Results – 13 February 2009
Slide 34: Outlook 2009
Outlook 2009 A very difficult year ahead Growth dependant on the global economy Very sound management of the business All decisions necessary for crisis management taken in September 2008 Focus on protecting the operational margin Annual Results – 13 February 2009 34
Slide 35: Questions
Questions Unissons nos Talents TALENTED TOGETHER Annual Results – 13 February 2009 35