Sopra Steria Group Sa · EURONEXT:SOP
Sopra Steria Group Sa — Sopra Group — H1 2013 Earnings Presentation
30 slides from Sopra Steria Group Sa's earnings presentation, Aug 1, 2013
Slide 1: Results presentation for the 1st half year 2013
Results presentation for the 1st half year 2013 Paris, 1 August 2013
Slide 2: Contents
Contents Highlights Financial Results Market, Strategy & Objectives 2
Slide 3: Highlights of the 1st half year
Highlights of the 1st half year Speed-up in growth over the half-year, bolstered by key accounts Strong growth in Europe Investments in France and Europe hurt short term margin but serve Group strategy Integration well on track for HR Access Annual targets confirmed, both for 2013 and up t
Slide 4: Sopra Group remains on course
Sopra Group remains on course 661 644 Revenue (€m) 340 Operating profit on business activity (€m) 321 41 45 Q1 Q2 H1 2013 H1 2013 Former Total growth (%) +11.6% +12.6% +12.1% scope Organic growth (%) +2.4% +7.3% +4.9% Operating profit on business activity (%) 6.2% 7.0% 4
Slide 5: Revenue by business line
Revenue by business line Business line o/w Software Real Estate 12% Human Resources 19% Software Sopra 69% Banking 24% Software o/w Consulting & Services Consulting Fixed-price projects 76% 7% 23% Technical 31% assistance Consulting & Application Services 39% outsourcing 5
Slide 6: Revenue by vertical market
Revenue by vertical market Verticals Key accounts Financial Retail services Telecom & media 5% 10% 33% Public 16% +12% vs. H1 2012 sector Public Sector 16% 20% Manufacturing Services, Transport & Utilities +8% vs. H1 2012 6
Slide 7: Revenue by region
Revenue by region Regions o/w Software Rest of World 14% Rest of France World 30% 56% Europe 33% o/w Consulting & Services United Kingdom 67% 8% Spain 7% 8% Other France France 77% 7
Slide 8: Performance in 1st half
Performance in 1st half France Europe (excluding France) +4.6% vs. H1 2012 +9.5% vs. H1 2012 Sopra Banking Software Top 30 Clients +1.3% vs. H1 2012 53% of revenue 8
Slide 9: Constant increase in headcount
Constant increase in headcount World (excl. France) 16 100 France 14 310 +13% Group 10 400 9 380 +11% 5 700 4930 +16% FY 2012 H1 2013 9
Slide 10: Key figures for the half year
Key figures for the half year Revenue Organic growth €661m +4.9% + €71m vs. H1 2012 Total growth +12.1% Op. profit on business act. Net profit €41m Former scope €50m €45m 7.0% of revenue 6.2% of revenue 7.6% of revenue 10
Slide 11: Contents
Contents Highlights Financial Results Market, Strategy & Objectives 11
Slide 12: Solid results for the half year
Solid results for the half year 12
Slide 13: Operating profit on business activity
Operating profit on business activity H1 2013 H1 2013 H1 2013 / H1 2012 Former Current H1 2012 (€m) scope scope (%) (€m) (€m) Revenue 589.6 644.4 661.0 12.1% Staff costs - employees -396.6 - 442.3 - 455.4 14.8% Staff costs - contractors - 49.7 - 52.2 - 53.1 6.8% Staff costs - Total -446.3 - 494.5 -
Slide 14: Operating profit
Operating profit H1 2013 H1 2013 H1 2013 H1 2013 H1 2012 Former Former Current Current (€m) scope scope scope scope (€m) (%) (€m) (%) Operating profit on business activity 47.6 45.0 7.0% 41.3 6.2% Expenses related to stock options and bonus share awards - 0.7 - 1.4 - 1.4 Amortisation of allocated in
Slide 15: Net profit
Net profit H1 2013 H1 2013 H1 2013 H1 2013 H1 2012 Former Former Current Current (€m) scope scope scope scope (€m) (%) (€m) (%) Operating profit 38.4 40.3 6.3% 63.6 9.6% Cost of net financial debt - 2.9 - 2.5 - 2.4 Other operating income and expenses - 0.5 0.1 - Tax expense -14.7 - 13.8 - 13.4 Share
Slide 16: Balance sheet
Balance sheet 31/12/2012 30/06/2013 (€m) (€m) Goodwill 314.6 311.3 Allocated intangible assets 56.5 53.6 Other fixed assets 45.7 51.2 Equity-accounted investments 113.8 114.8 Fixed assets 530.6 530.9 Trade accounts receivable (net) 384.3 450.7 Other assets and liabilities - 405.6 - 432.7 Operating a
Slide 17: Change in net debt
Change in net debt 30/06/2012 30/06/2013 (€m) (€m) Net debt at beginning of period (A) -46.4 -204.1 Gross cash flow from operations before net financial debt and tax 45.5 39.9 Tax paid -29.3 -15.4 Changes in working capital requirements -37.9 -50.9 Net cash flow from operations -21.7 -26.4 Change re
Slide 18: Bank covenants at 30 June
Bank covenants at 30 Juin PRO / Cost of net debt Net debt / Equity Must be Must be 24.76 >5 91% < 100% 23.88 56% 2012 2013 2012 2013 Net debt / EBITDA (€107m) Net financial debt is adjusted for employee profit sharing (€31.3m) for the calculation of bank covenants Must be <3 1.99 1.73 2012 2013 18
Slide 19: Contents
Contents Highlights Financial Results Market, Strategy & Objectives 19
Slide 20: A rapidly evolving IT market
A rapidly evolving IT market Technological Avancée New New Nouvelles advances Technologiques uses opportunities Opportunités 2 major challenges for our clients Maintenance quality and cost control of existing systems Develop & innovate to support growth and competitiveness Market increasingl
Slide 21: Sopra 2015, an ambitious corporate project
Sopra 2015, an ambitious corporate project Ambition A coherent, independent European consulting, IT services and software development firm A market reference in terms of financial performance Positioning Provide our clients with a full picture of the enterprise transformations to be implem
Slide 22: Progress on our four major strategic initiatives
Progress on our four major strategic initiatives Large clients consistently show their Strong organic confidence in us with Upscaling growth and strategic contract renewals Europe value acquisitions Reinforced offerings First contactless smartphone Innovation Software application designed & offering
Slide 23: Annual targets for 2013 confirmed
Annual targets for 2013 confirmed Organic growth of between 2% and 5% An operating margin on business activity, under former scope, in excess of 8.0% An operating margin on business activity, under current scope, of between 7.3% and 7.7% A net profit margin at least equal to that of the prec
Slide 24: Q&A
Q&A Microphones are available from the hostesses 24
Slide 25: Appendices
Appendices 25
Slide 26: Income statement
Income statement H1 2013 H1 2013 H1 2013 H1 2013 H1 2012 Former Former Current Current (€m) scope scope scope scope (€m) (%) (€m) (%) Revenue 589.6 644.4 661.0 Staff costs - employees -396.6 - 442.3 - 455.4 Staff costs - contractors - 49.7 - 52.2 - 53.1 Operating expenses - 87.8 - 95.9 - 101.2 Depre
Slide 27: Performance by European subsidiary
Performance by European subsidiary 27
Slide 28: Change in equity
Change in equity H1 2013 (€m) Equity position at beginning of period 305.3 Net profit - Group share 50.2 Distribution in cash (ordinary) - 20.2 Capital increase through exercise of share options 0.1 Acquisition or disposal of treasury shares - 0.2 Share-based payments 1.7 Actuarial differences - 0.8
Slide 29: Forward-looking information
Forward-looking information This presentation contains forecasts in respect of which there are risks and uncertainties concerning the Group’s future growth and profitability. The Group highlights the fact that the signature of licence contracts, which often represent investments for clients, are m
Slide 30: Contacts
Contacts Investor relations team Kathleen Clark Bracco ( +33 (0) 1 40 67 29 61 Lima Abdellaoui ( +33 (0) 1 40 67 86 88 Arthur Carli ( +33 (0) 1 40 67 29 75 Sopra Group Financial communication 9 bis, rue de Presbourg 75116 Paris www.finance.sopragroup.com investors@sopragroup.com 30