Sopra Steria Group Sa · EURONEXT:SOP
Sopra Steria Group Sa — Sopra Group — H1 2009 Earnings Presentation
28 slides from Sopra Steria Group Sa's earnings presentation, Aug 31, 2009
Slide 1: Half Year 2009 Results Presentation
Half Year 2009 Results Presentation 31 August 2009 Unissons nos Talents TALENTED TOGETHER First Half Results – 31 August 2009 1
Slide 2: First Half 2009 Highlights
First Half 2009 Highlights Encouraging results Revenue contraction limited to 4% Organic growth for SSI France at 3% Margin protection Financial resilience Net improvement to cash position and WCR Free cash flow multiplied by 4 Blue chip client confidence Book to bill ratio at 1.08 First Half Result
Slide 3: Agenda
Agenda First Half 2009 Achievements New Wins and Commentary Strategy and Outlook First Half Results – 31 August 2009 3
Slide 4: Revenue (€m)
Revenue (€m) 549.6 544.8 24.7 19.0 Growth: First Half Q2 Total -0.9% -2.6% Organic -4.3% -5.9% 343.6 353.2 Organic Growth H1 Q2 Management Consulting - 23.1% - 21.7% SSI* France + 2.8% + 0.6% SSI* Europe - 14.3% - 16.7% 109.0 89.5 Axway - 14.0% - 13.0% 72.3 83.1 1st Half 2008 1st Half 2009 *SSI: Sys
Slide 5: Income Statement
Income Statement 30/06 30/06 31/12 2009 2008 2008 €m % €m % Revenue 544.8 549.6 1 129.5 Staff costs - Employees -374.6 -360.8 -721.8 +1.4% Staff costs - Contractors -39.6 -47.5 -97.6 Operating expenses -96.1 -92.9 -193.8 Depreciation, amortisation -8.0 -7.6 -14.0 and provisions Profit from recurring
Slide 6: Operating Profit by Division
Operating Profit by Division 30/06 30/06 2009 2008 Revenue PRO** % Margin Revenue PRO** % Margin (in millions of euros) Management consulting 19.0 0.8 4.2% 24.7 2.5 10.1% SSI* France 353.2 23.2 6.6% 343.6 28.7 8.4% SSI* Europe 89.5 2.4 2.7% 109.0 7.2 6.6% Axway 83.1 0.1 0.1% 72.3 2.4 3.3% Total Grou
Slide 7: Balance Sheet
Balance Sheet 30/06 30/06 31/12 2009 2008 2008 M€ Goodwill 377.6 299.7 372.7 Allocated intangible assets 24.7 4.5 26.4 Other fixed assets 41.0 39.3 41.0 Assets 443.3 343.5 440.1 Trade accounts receivable (net) 358.0 385.9 401.5 Other assets and liabilities -339.5 -326.8 -375.1 Operating assets and l
Slide 8: Change in Equity
Change in Equity M€ Position at 31 December 2008 268.3 Dividends - 19.3 Net profit - Group share 10.8 Share-based payments 0.2 Change in financial instruments 0.2 Translation adjustments 5.8 Other movements - 0.2 Position at 30 June 2009 265.8 First Half Results – 31 August 2009 8
Slide 9: Change in Net Debt
Change in Net Debt 30/06 30/06 31/12 €m 2009 2008 2008 Net debt at opening 198.2 130.3 130.3 Gross cash flow from operations before 32.4 42.0 108.4 net financial debt and tax Tax paid -12.9 -10.1 -29.3 Changes in working capital requirements 26.4 -12.8 -2.8 Net cash flow from operations 45.9 19.1 76
Slide 10: Financial Ratios
Financial Ratios 74% 74% 64% 4.98 2.12 0.92 Basic Earnings per Net Debt / Equity Share (€) 30/06/2008 31/12/2008 30/06/2009 First Half Results – 31 August 2009 10
Slide 11: Business Sector & Vertical Market Positioning
Business Sector & Vertical Market Positioning Orga Consultants Retail Axway Business Banking Consulting Public Sector 4% 4% 8% 7% 7% 15% 15% 8% 22% 22% Fixed-price 16% 16% Proprietary 14% 14% Projects 12% 12% Solutions Telecoms 7% 7% 12% Insurance 12% 20% 18% 18% 20% 27% 18% 27% 18% Staffing Applica
Slide 12: Revenue by Region
Revenue by Region Switzerland Italy Benelux United Kingdom 5% 5% Spain 6% 6% USA / Asia 8% 8% France 6% 6% 81% 81% 21% 21% Europe France ex. France CSSI Europe Asia 73% 73% 2% 2% USA 31% 31% 38% 38% France Geographies 29% 29% Europe ex. France Axway Revenue First Half Results – 31 August 2009 12
Slide 13: Axway – 2008 Pro Forma Revenue
Axway – 2008 Pro Forma Revenue *N.B.: €1 = $1 Asia Services 2% 2% USA 27% 27% 33% 33% 36% 36% 38% France Licences 38% 27% 27% 37% 37% Maintenance Europe ex. France Regions* Type of Revenue* First Half Results – 31 August 2009 13
Slide 14: Axway – First Half 2009
Axway – First Half 2009 Profitability protected Investments maintained Promising Second Half 2009 First Half Results – 31 August 2009 14
Slide 15: Change in Workforce (excluding contractors)
Change in Workforce (excluding contractors) 12 750 12 450 12110 8 590 8220 8 210 ex. France France Group 4 240 4 160 3890 June 2008 Decembre 2008 June 2009 First Half Results – 31 August 2009 15
Slide 16: Agenda
Agenda First Half 2009 Achievements New Wins and Commentary Strategy and Outlook First Half Results – 31 August 2009 16
Slide 17: Significant Contract Wins in the First Half
Significant Contract Wins in the First Half Utilities: EDF, Scottish Power Financial Services: BNP Paribas, HSBC, a large American leader Public Sector: Chorus, Scottish Executive, Defense Ministry Manufacturing: EADS, ThyssenKrupp Elevator First Half Results – 31 August 2009 17
Slide 18: Growing Presence with EDF
Growing Presence with EDF Presence in EDF’s large transformation programmes Internal organisation & strategy to place Sopra Group among the top 5 suppliers in 2012 Very strong revenue growth (multiplied by 3 in 3 years) First Half Results – 31 August 2009 18
Slide 19: New Life for Banking Solutions
New Life for Banking Solutions Strategic positioning at the core of large banking information system transformation projects, organised with a distributor-delivery model Payment Factories Credit Factories Adoption of the Sopra Group “SURFI reform” solution Equipping the quasi-totality of the banking
Slide 20: Chorus Project in 4 successive waves
Chorus Project in 4 successive waves Large transformation project for the French State Sopra Group & Axway: Conception and installation of a centralised, unique and secure exchange platform between the SIFE* and all government Ministries Deployment for the Ministry of National Education, Superior Ed
Slide 21: Success for Axway in the USA
Success for Axway in the USA Huge contract with a large American financial institution Modernise the data exchange platforms Reduce costs inherent to the coexistence of multiple heterogeneous platforms by supplying a single, state of the art platform Entire Synchrony™ platform tested at length to va
Slide 22: Commentary on Market Conditions (1/2)
Commentary on Market Conditions (1/2) Application Outsourcing demand confirmed Pressure on pricing and delivery engagements Lower demand for consulting and staffing contracts Growing need for enterprise transformation With more complex decision cycles for large projects With a delay in investment de
Slide 23: Commentary on Market Conditions (2/2)
Commentary on Market Conditions (2/2) Strong investment in the public sector Two phases in the banking sector Reduce costs Large industrial and transformation projects Stability in telecoms Growth in utilities Varied performance in the manufacturing and retail sectors First Half Results – 31 August
Slide 24: Agenda
Agenda First Half 2009 Achievements New Wins and Commentary Strategy and Outlook First Half Results – 31 August 2009 24
Slide 25: Group Strategy
Group Strategy Two Brands for Two Well-Defined Strategic Profiles Sopra Group reconfirms its strategic focus on systems integration and services with an offerings continuum covering Consulting | Projects | Application Outsourcing | Proprietary Solutions Pursuit of multiple growth-driving transformat
Slide 26: Outlook 2009
Outlook 2009 For the Group Slightly positive total growth Dip in organic growth contained within 3-4% range Current operating margin target above 7% Management Consulting Stabilised activity and margin improvement in the second half year period SSI France Slight organic growth and a margin close to
Slide 27: Questions
Questions Unissons nos Talents TALENTED TOGETHER First Half Results – 31 August 2009 27
Slide 28: Half Year 2009 Results Presentation
Half Year 2009 Results Presentation 31 August 2009 Unissons nos Talents TALENTED TOGETHER First Half Results – 31 August 2009 28