Sopra Steria Group Sa · EURONEXT:SOP
Sopra Steria Group Sa — ESG Presentation (June 2022)
44 slides from Sopra Steria Group Sa's sustainability presentation, June 2022
Slide 1: Anchoring our strategy in sustainability
Sopra Steria Anchoring our strategy in sustainability PARIS, JUNE 2022
Slide 2: Agenda
AGENDA 01 Company overview 02 Business model and corporate plan 03 Governance & compensation 04 Corporate responsibility strategy 05 Human talent management 04 Security of information and Cybersecurity systems and Data Privacy 05 Annexes 2 ESG Presentation – June 2022
Slide 3: Company overview
01 Company overview 3 ESG Presentation – June 2022
Slide 4: A European leader in digital transformation
A European leader in digital transformation Sopra Steria at 31/12/2021 Top 5 European digital services companies Top 12 operating in Europe 2021 revenue >47,000 Operations in End-to-end approach of €4.7bn employees 30 countries 2% 15% 10% 3% 24% 5% 31% 15% 4% 48% 6% 61% 6% 9% 16% 19% 26% France Cons
Slide 5: History of Sopra Steria Group
History of Sopra Steria Group More than 50 years of growth and transformation 5 ESG Presentation – June 2022
Slide 6: A reference shareholder backing the corporate plan
A reference shareholder backing the corporate plan Ownership at 31/05/2022 Pasquier Odin Treasury Managers family family shares 2.7% 68.3% 28.3% 0.7% Founders & Management Sopra GMT Shares managed on behalf Treasury shares Free float 2.6% 19.6% of employees Shareholders’ 6.7% 0.1% 70.9% agreement (8
Slide 7: Sopra Steria historical performance
Sopra Steria historical performance Historical average: revenue organic growth +6% ; operating margin 8.7% 4683 4434 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 93 110 109 231 246 301 329 308 35
Slide 8: Key figures for 2021 (1/2)
Key figures for 2021 (1/2) Solid performance across all financial indicators Revenue Operating profit on business Net profit attributable to the activity Group €4,682.8m €379.2m €187.7m Total grow th of 9.8% i.e. 8.1% of revenue i.e. 4.0% of revenue Organic grow th* of 6.4% Free cash flow Net financ
Slide 9: Key figures for 2021 (2/2)
Key figures for 2021 (2/2) Ongoing commitment to ESG performance Net change in workforce Proportion of women on the CDP Climate Executive Committee +3.2% 17.6% A List up 2.4% excluding acquisitions vs 12% in 2020 for the fifth year in a row Workforce attrition rate Em ployee satisfaction rate - Cumu
Slide 10: Business model and corporate plan
02 Business model and corporate plan 10 ESG Presentation – June 2022
Slide 11: Business model
Business model Value chain and associated indicators Value chain Sample indicators of value created for the Group’s main stakeholders Employees 72% of employees say Sopra Steria is a great place to work - GPTW survey3 27 hours of training on average per employee 100% of employees take part in
Slide 12: Ambitious corporate plan
Ambitious corporate plan In a rapidly market environment Expanding European Organic growth …in services and worldwide in software External growth Independent Core shareholder Employee shareholding Performance Added value Unique End-to-end approach Software Entrepreneurial culture and
Slide 13: Governance & Compensation
03 Governance & Compensation 13 ESG Presentation – June 2022
Slide 14: Separation of the roles of Chairman and CEO
Separation of the roles of Chairman and CEO AFEP-MEDEF Code: corporate governance code referred to by Sopra Steria Group Board of Directors Executive Management team 14 ESG Presentation – June 2022
Slide 15: Performance and compensation of the previous CEO
Change in the performance and compensation1 of the previous Chief Executive Officer – Vincent Paris (1) The change in the Company’s performance, with the extent to which the quantifiable targets used to determine the Chief Executive Officer’s variable compensation (financial performance of the Compa
Slide 16: Compensation of the Chief Executive Officer – Vincent Paris
Compensation of the Chief Executive Officer – Vincent Paris 2021 compensation ex-post Compensation paid in respect of the 2021 financial year Fixed compensation paid: €500,000 Variable compensation awarded: €300,000 Calculation of 2021 annual variable compensation Potential amount Potential Amount R
Slide 17: Compensation of the Chief Executive Officer – Vincent Paris
Compensation of the Chief Executive Officer – Vincent Paris 2022 compensation ex-ante approved by the 2022 Combined General Meeting On Wednesday, 12 January 2022, Sopra Steria announced the appointment of Cyril Malargé to succeed Vincent Paris as Chief Executive Officer. Vincent Paris, Chief Executi
Slide 18: Remuneration of the previous CEO – Vincent Paris
Remuneration of the previous Chief Executive Officer – Vincent Paris Performance share plans Shares delivered in 2021: 1,905 Shares awarded in 2021: 3,000 Number and date of plan Number of shares becoming available during the financial year Three performance criteria 952 shares with no minimum holdi
Slide 19: Compensation of the new CEO – Cyril Malargé
Compensation of the new Chief Executive Officer – Cyril Malargé 2022 compensation ex-ante approved by the 2022 Combined General Meeting Fixed compensation: €450,000 (starting on 1 March 2022) Targets associated with the variable compensation: % of AVC(1) (2) Criteria Type % of AFC Operating margin o
Slide 20: Compensation of CEO, Cyril Malargé
Compensation of Chief Executive Officer, Cyril Malargé Performance share award plan Rights to shares granted in 2022: 3 performance criteria 3,000 Allocated the same weighting, with a total of Plan adopted on 1 June 2022 90%: Organic revenue growth, operating profit on business activity and free cas
Slide 21: Corporate responsibility strategy
04 Corporate responsibility strategy 21 ESG Presentation – June 2022
Slide 22: Long-standing focus on sustainability
Long-standing focus on sustainability Corporate responsibility approach anchored in the Specific organisation and governance Group’s history and identity structure Fundamental values that encourage in particular Nomination, Governance, Ethics and Corporate open-mindedness, curiosity and respect for
Slide 23: Our mission
Our mission “Together, building a positive future by making digital work for people” A contribution that aims to be: What we offer is rooted in our ability to anticipate, Purposeful understand and translate the challenges posed by digital technology so as to better assess their impacts on our client
Slide 24: Our contribution to the United Nations' SDGs
Our contribution(1) to the United Nations’ 17 SDGs 7 commitments aligned with the Group’s business model 1. To be a benchmark employer that attracts the best talent, 4. To conduct our business ethically and with integrity in our day- promotes social dialogue, diversity and equal opportunities to-day
Slide 25: Contributing to the fight against climate change
Contributing to the fight against climate change Plan to reduce our greenhouse gas (GHG) emissions – 2021 results Direct activities Energy management Sites, business travel, Mobility policy -50%1 per employee -85%2 per employee by Digitisation (baseline: 2015) 2040 (baseline: 2015) data centres Offs
Slide 26: Proactive policy for senior management positions
Proactive policy for senior management positions The Group’s target is for women to make up 30% of the Executive Committee by 2025 % Women in Targets for January 1st 2022 2025 Action plan ExCom: 18% 30% Recruitment (vs 12 % en 2020) Promotion Mentoring Stereotype awareness 17% in 2023 Senior manager
Slide 27: Gradually being integrated into our value proposition
Gradually being integrated into our value proposition GAIA-X: European Association for Data and Cloud - taking part in the project to create a European data infrastructure Inform and guide Responsible digital our clients on key Founding member of technology issues surrounding France’s Campus Cyber –
Slide 28: Human talent management
05 Human talent management 28 ESG Presentation – June 2022
Slide 29: Recruitment and retention
Recruitment and retention Proactive employment policy of Human talent management Key figures at 31 December 2018 2019 2020 2021 Number of recruitment 11,662 10,844 6,133 10,636 Group workforce 44,114 46,245 45,960 47,437 Workforce exceluding acquisitions of the year 43,594 45,153 44,768 47,017 Propo
Slide 30: Training
Training A proactive training policy to maintain employability 2 key priorities for 2021 Key figures Management and leadership programme rolled out to all Group managers (launched in France in 2021, to be gradually rolled out Group-wide starting in 2022) Internationalisation of the core training off
Slide 31: Sopra Steria is a good place to work
Sopra Steria is a good place to work Employee survey conducted in 2021 with Great Place to Work Participation rate Satisfaction rate Eligibility for GPTW certification 82% 72% 20 entities out of 22 entities in total of Group em ployees of Group em ployees 8 entities in the running for “Best W orkpla
Slide 32: Security of information and Cybersecurity systems and Data Privacy
06 Security of information and Cybersecurity systems and Data Privacy 32 ESG Presentation – June 2022
Slide 33: Security of information and Cybersecurity systems
Security of information and Cybersecurity systems A solid organisational structure which is coordinated at the Group’s highest level Items of business dealt with by the Audit Committee in 2021 Audit Committee of the Board of Directors Presentation of cyber risks and steps taken to manage them (two m
Slide 34: Data Privacy
Data Privacy A global policy and a Group compliance programme A general personal data protection policy supported by a programme has the following goals in particular: The rollout of a specific tool to keep records of all processing of personal data by Group entities, both for their own purposes and
Slide 35: Annexes
ANNEXES 35 ESG Presentation – June 2022
Slide 36: Summary of greenhouse gas emissions by scope
SUMMARY OF GREENHOUSE GAS EMISSIONS BY SCOPE 2019 2020 2021 Emissions Emissions Emissions Scope Category % (tCO2e) % (tCO2e) % (tCO2e) Scope 1 Diesel, gas (Offices and on-site 0.8% 2,664 1.0% 2,315 0.9% 2,526 data centres) Direct fugitive emissions 0.6% 2,048 0.6% 1,403 0.4% 1,124 Scope 2 Electricit
Slide 37: Plan to reduce CO2 emissions from direct activities
Plan to reduce CO2 emissions from direct activities (1) Aligning with the 1.5°C trajectory approved by SBTi (measured per employee) Baseline: 2015 -13.6% in 2016 Target for 2040 (baseline: 2015) -20.0% Intermediate target for 2028 -85%(1) in 2017 (baseline: 2015) -6.4 points -58%(1) in 2017 -29.1% i
Slide 38: Gender equality programme details
Gender equality programme details 6 action plans Setting numerical targets to track progress in the proportion of women in the workforce and in management positions (proportion of women recruited, in the workforce, promoted) Launching Group awareness campaigns to reaffirm our commitment to gender eq
Slide 39: Digital inclusion and community outreach
Digital inclusion and community outreach Commitment involving the Group and employees in civil society Promoting employment and retention of Making digital workers with technology available Sopra Steria- disabilities: Agreement Mission to all, disadvantaged Institut de between employee Handicap repr
Slide 40: Detailed breakdown of greenhouse gas emissions
Detailed breakdown of greenhouse gas emissions GHG emissions (in millions of tCO2e) 2017 2018 2019 2020 2021 Scope 1 Diesel, gas, biodiesel (offices and on-site data centres) 3,546 3,318 4,712 3,718 3,650 of which: Fugitive emissions 1,725 1,633 2,048 1,403 1,124 Scope 2 Grid electricity, dis
Slide 41: Detailed breakdown of workforce-related indicators
Detailed breakdown of workforce-related indicators 2017 2018 2019 2020 2021 Total workforce 41,661 44,114 46,245 45,960 47,437 % Women 31.0% 31.6% 32.0% 32.5% 32.4% Managers (cadres) 38,626 40,001 40,014 40,581 44,501 Full-time equivalent (FTE) workforce (excluding interns) 40,241 42,614 44,230 43,8
Slide 42: Our ESG assessments
Our ESG assessments Improvement in ESG scores with non-financial rating agencies Agencies Type of rating Rating scale 2018 2019 2020 2021 Progress since 2018 A AA AA AA MSCI ESG MSCI Rating AAA>CCC 7.1/10 7.3/10 7.4/10 7.9/10 +0.8 points (Average) (Leader) (Leader) (Leader) Risk rating Low = 0 - - 1
Slide 43: 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
Slide 44: Thank you.
Thank you. Text on several lines. 44 ESG Presentation – June 2022