Sopra Steria Group Sa · EURONEXT:SOP
Sopra Steria Group Sa — Non-Deal Roadshow (December 2017)
34 slides from Sopra Steria Group Sa's roadshow presentation, December 2017
Slide 1: Roadshow USA & Canada – Kepler Cheuvreux
ROADSHOW USA & CANADA – KEPLER CHEUVREUX December 2017 Delivering Transformation. Together.
Slide 2: Disclaimer
DISCLAIMER This presentation 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
Slide 3: Content
CONTENT 1|Company overview 2|H1 2017 Highlights & Q3 2017 Performance 3|2017 Priorities & Guidance 4|Annexes 3 Roadshow USA & Canada - December 2017
Slide 4: Company overview
COMPANY OVERVIEW 4 Roadshow USA & Canada - December 2017
Slide 5: Western Europe IT services market structure
WESTERN EUROPE IT SERVICES MARKET STRUCTURE A MARKET OF € 200BN Sopra Steria 2016 Market Share Market Sopra Steria Market Share Main competitors in Western Europe €bn / % 2016 2016 2016 Capgemini France 24.6 1.5 6.1 % Accenture UK 67.0 0.9 1.3 % CGI AtoS Germany 32.4 0.2 0.6 % IBM Other We
Slide 6: Market share gains dynamic in Europe
MARKET SHARE GAINS DYNAMIC IN EUROPE 2016 - 2017 FY 2016 Q3 2017 Revenue organic growth Europe o/w France Europe o/w France Accenture* + 11.0% NA + 10.0% NA IBM* (EMEA) - 2.1% NA - 1.0% NA Atos (excl. Worldline) + 0.8% + 2.3% + 1.5% + 4.8% CGI* + 1.8% + 7.6% - 1.6% + 7.3% CapGemini* + 4.9% + 5.0% +
Slide 7: A look back over 50 years of history
A LOOK BACK OVER 50 YEARS OF HISTORY Creation of the banking solutions Initial banking know-how gained with the signing of a development business 1st major comprehensive managed services agreement Birth of Sopra 1982 1973 1971 1969 1968 Computerization of Agence France Presse with the Birth of Steri
Slide 8: Sopra Steria at 30/06/2017
SOPRA STERIA AT 30/06/2017 A EUROPEAN LEADER IN DIGITAL TRANSFORMATION Top 5 European digital services companies Top 10 operating in Europe 40,000+ A presence in End-to-end 2016 revenue of €3.7bn employees over 20 countries offering Revenue to 30/06/2017 Rest of the World Business Process Other Serv
Slide 9: Sopra Steria Group: stronger fundamentals thanks to the merger
SOPRA STERIA GROUP STRONGER FUNDAMENTALS THANKS TO THE MERGER A recognised brand Performance once again close to Organic growth of 5.2% in 2016 historical standards Clients Major contracts won France’s top recruiter of young graduates in the 2014 Pro forma 2015 2016 digital sector (source: Usi
Slide 10: Key pillars of the strategy
KEY PILLARS OF THE STRATEGY FOCUSED ON VALUE-ADDED European leader in digital transformation 10 Roadshow USA & Canada - December 2017
Slide 11: Ownership at 30/06/2017
OWNERSHIP AT 30/06/2017 KEY SHAREHOLDERS BACKING THE CORPORATE PROJECT Pasquier Odin Managers family family 2.4% 69.0% 28.6% Founders & Sopra GMT Interests managed on Treasury management Soderi Free float 19.6% behalf of employees shares 3.0% Shareholders’ agreement 22.6% 8.1% 0.1% 69.2% (33.3%) (8.
Slide 12: Stock market ID
STOCK MARKET ID SOPRA STERIA GROUP WEIGHT IN INDEXES (11/2017) CAC ALL SHARES 0.13% CAC ALL-TRADABLE 0.15% CAC MID 60 1.47% CAC MID&SMALL 1.22% CAC SOFT. & C. S. 2.89% Reuters : SOPR.PA CAC TECHNOLOGY 2.21% ESI EXC EUROPE 0.07% Bloomberg : SOP:FP ESI EXC EUROPE VM 0.04% EURONEXT FAS IAS 3.98% NE
Slide 13: Sopra Steria historical performance
SOPRA STERIA HISTORICAL PERFORMANCE 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 2014 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2015 2016 Pro forma** Total growth 23% 21% 16% 10%
Slide 14: Historical net profit & dividend
HISTORICAL NET PROFIT & DIVIDEND 2.5 2.2 150 Net profit attributable to Axway (€m) 130 1.9 1.9 1.9 2 Net profit attributable to the 1.7 1.7 Group (€m) 1.65 1.65 110 Dividend (€) 1.5 90 1.35 Axway spin off 8 June 2011, Sopra 1.1 Group AGM approved 70 8 the distribution by Sopra Group to its 1 shareho
Slide 15: H1 2017 Highlights & Q3 2017 Performance
H1 2017 HIGHLIGHTS & Q3 2017 PERFORMANCE 15 Roadshow USA & Canada - December 2017
Slide 16: H1 2017 key figures
H1 2017 KEY FIGURES PERFORMANCE IN LINE WITH FULL-YEAR TARGETS Revenue Operating profit on business activity €1,903.2m €142.1m 7.5% of revenue, organic growth* of 2.6% up 5.9% from 30/06/2016 Net profit attributable to the Group Net financial debt €66.0m €643.3m 3.5% of revenue 1.9x EBITDA up 22.3%
Slide 17: H1 2017 operating performance by reporting unit
H1 2017 OPERATING PERFORMANCE BY REPORTING UNIT STRONG RECOVERY IN LOWER-MARGIN BUSINESSES Revenue Operating profit on business activity H1 2016 Organic H1 2017 H1 2017 H1 2016 Restated* growth (€m) (% of Rev.) (% of Rev.) (€m) (%) France 801.4 784.9 + 2.1% 9.0% 8.6% United Kingdom 413.0 438.2 - 5.7
Slide 18: Income statement
INCOME STATEMENT FIRST-HALF 2017 H1 2017 H1 2017 H1 2016 H1 2016 (€m) (% of Rev.) (€m) (% of Rev.) Revenue 1,903.2 1,878.8 Organic growth 2.6% Operating profit on business activity 142.1 7.5% 134.2 7.1% Expenses related to stock options and related items - 17.0 - 10.2 Amortisation of allocated intan
Slide 19: H1 2017 change in net financial debt
H1 2017 CHANGE IN NET FINANCIAL DEBT FREE CASH FLOW USUALLY NEGATIVE IN THE FIRST HALF OF THE YEAR 700 643.3 650 -28.5 -0.8 -1.8 -109.0 +2.8 600 550 506.0 500 First half of the year €m usually sees net cash 450 outflows 400 350 300 250 200 Net financial debt Free cash flow Changes in scope and Divid
Slide 20: Q3 2017 performance
Q3 2017 PERFORMANCE REVENUE EVOLUTION BY DIVISION IN Q3 2017 Revenue Q3 2016 Organic Total Q3 2017 Restated* growth growth (€m) (€m) (%) (%) France 369.2 356.9 + 3.4% + 3.5% 5.8% of which C&SI 320.9 309.5 + 3.7% + 3.7% of which I2S 48.4 47.5 + 1.8% + 1.8% United Kingdom 186.9 207.1 - 9.8% - 14.0% Ot
Slide 21: 2017 Priorities & Guidance
2017 PRIORITIES & GUIDANCE 21 Roadshow USA & Canada - December 2017
Slide 22: Recap of priorities for 2017
RECAP OF PRIORITIES FOR 2017 PERFORMANCE Continue to improve performance ACQUISITIONS Proactive policy of targeted acquisitions Shift business mix with goal of Consulting and ADDED VALUE Solutions accounting for 15% and 20% respectively by 2020 TRANSFORMATION Continue to adapt our model to respond t
Slide 23: Recap of budgetary assumptions for 2017
RECAP OF BUDGETARY ASSUMPTIONS FOR 2017 Adverse calendar effect of 2 to 3 days in a number of European countries Adverse GBP/EUR currency translation effect, essentially in the first half of the year (based on the current exchange rate) Transitional year for SSCL Organic revenue growth highe
Slide 24: 2017 targets
2017 TARGETS Organic revenue growth between 2% and 3% Operating margin on business activity of around 8.5% Free cash flow > €150m 24 Roadshow USA & Canada - December 2017
Slide 25: Annexes
ANNEXES 25 Roadshow USA & Canada - December 2017
Slide 26: Revenue by country
REVENUE BY COUNTRY FOR THE PERIOD ENDED 30/06/2017 SERVICES REVENUE TO 30/06/2017 SOLUTIONS REVENUE TO 30/06/2017 H1 2017 revenue Other Europe = €398m o/w Germany = 33% o/w Spain = 15% Other Europe Rest of the o/w Italy = 8% o/w Switzerland = 6% World o/w BeLux = 9% o/w Scandinavia = 29% 13% 25% Fra
Slide 27: Solutions revenue
SOLUTIONS REVENUE FOR THE PERIOD ENDED 30/06/2017 SOLUTIONS REVENUE BY PRODUCT SOLUTIONS REVENUE BY BUSINESS LINE Property Management Solutions Managed Services 10% 13% Licences 11% Sopra HR 27% €291m Sopra €291m Software SOLUTIONS SOLUTIONS 54% Banking 64% Software 22% Integration Maintenance Servi
Slide 28: Global workforce
GLOBAL WORKFORCE FIRST-HALF 2017 30/06/2017 31/12/2016 France 18,629 18,227 United Kingdom 6,320 6,508 Other Europe 7,961 7,844 Rest of the World 253 231 X-Shore 7,268 7,003 Total 40,431 39,813 28 Roadshow USA & Canada - December 2017
Slide 29: FY 2016 operating performance by reporting units
FY 2016 OPERATING PERFORMANCE BY REPORTING UNITS STRONG PERFORMANCE ACROSS ALL REPORTING UNITS IN 2016 Revenue Operating profit on business activity 2015 Organic 2016 2016 2015 Restated* growth (€m) (% of Rev.) (% of Rev.) (€m) (%) France 1 528.1 1 432.4 + 6.7% 8.1% 7.5% United Kingdom 927.9 924.4 +
Slide 30: Income statement
INCOME STATEMENT FINANCIAL YEAR 2016 2016 2016 2015 2015 (€m) (% of Rev.) (€m) (% of Rev.) Revenue 3 741.3 3 584.4 Organic growth 5.2% Operating profit on business activity 301.1 8.0% 245.5 6.8% Expenses related to stock options and related items - 12.1 - 1.2 Amortisation of allocated intangible ass
Slide 31: Simplified balance sheet
SIMPLIFIED BALANCE SHEET 31/12/2016 31/12/2016 31/12/2015 (€m) (€m) Goodwill 1 557.0 1 586.9 Allocated intangible assets 179.7 186.5 Other fixed assets 160.8 162.8 Equity-accounted investments 202.3 154.4 Fixed assets 2 099.8 2 090.7 Net deferred tax 128.9 126.9 Trade accounts receivable (net) 1 132
Slide 32: A healthy financial position at 31/12/2016
A HEALTHY FINANCIAL POSITION AT 31/12/2016 DEBT COVENANTS AND LIQUIDITY Net financial debt 31/12/2016 31/12/2016 at 31/12/2016: Amount used Amount authorised €506.0m (€m) (€m) Bond 180.0 180.0 Syndicated loan - Tranche A € 160.0 160.0 Syndicated loan - Tranche B £ 74.8 74.8 EBITDA leverage: Multi-cu
Slide 33: Earnings per share
EARNINGS PER SHARE FINANCIAL YEAR 2016 2016 2015 (€m) (€m) Net profit - attributable to Group (€m) 150.4 84.4 Weighted average number of shares in issue excluding treasury shares 20.04 19.76 Basic earnings per share (€) 7.50 4.27 Basic recurring net earnings per share (€) 8.45 6.75 Theoretical weigh
Slide 34: 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
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