Sopra Steria Group Sa · EURONEXT:SOP
Sopra Steria Group Sa — Shareholder Meeting (May 2021)
65 slides from Sopra Steria Group Sa's shareholder meeting presentation, May 26, 2021
Slide 1: 2021 Combined General Meeting of Shareholders
2021 Combined General Meeting of Shareholders PARIS, 26 MAY 2021 AT 2:30PM
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: Opening remarks – 2021 Combined General Meeting
Opening remarks – 2021 Combined General Meeting General Meeting held in closed session and live streamed Live Q&A session for shareholders who have pre-registered on the Group’s website Meeting recorded, available on the Group’s website 3 Presentation for the 2021 Combined General Meeting – 26 May 2
Slide 4: Meeting schedule
Meeting schedule 01 Agenda for the General Meeting 02 Board of Directors’ reports – Presentation of the 2020 accounts and operating position 03 Statutory Auditors’ reports 04 Q&A session 05 Results of votes on proposed resolutions 06 Closing remarks to the General Meeting 4 Presentation for the 2021
Slide 5: Agenda (1/3)
Agenda (1/3) Notice published in the “Bulletin des Annonces Légales Obligatoires” on 7 May 2021 Requiring the approval of the Ordinary General Meeting 1. Approval of the individual financial statements for the financial year ended 31 December 2020; approval of non-deductible expenses; 2. Approval of
Slide 6: Agenda (2/3)
Agenda (2/3) Notice published in the “Bulletin des Annonces Légales Obligatoires” on 7 May 2021 Requiring the approval of the Ordinary General Meeting 7. Approval of the compensation policy for the Chairman of the Board of Directors, as presented in the Report on corporate governance pursuant to Art
Slide 7: Agenda (3/3)
Agenda (3/3) Notice published in the “Bulletin des Annonces Légales Obligatoires” on 7 May 2021 Requiring the approval of the Extraordinary General Meeting 13. Authorisation granted to the Board of Directors, for a period of 38 months, to allot free shares to employees and company officers of the Co
Slide 8: Meeting schedule
Meeting schedule 01 Agenda for the General Meeting 02 Board of Directors’ reports – Presentation of the 2020 accounts and operating position 03 Statutory Auditors’ reports 04 Q&A session 05 Results of votes on proposed resolutions 06 Closing remarks to the General Meeting 8 Presentation for the 2021
Slide 9: 2020 Full-year results
2020 Full-year results 9 Presentation for the 2021 Combined General Meeting – 26 May 2021
Slide 10: Sopra Steria profile at 31/12/2020
Sopra Steria profile at 31/12/2020 A European leader in digital transformation Among the top 5 European digital services companies Among the top 10 operating in Europe 2020 revenue 46,000 Operations in End-to-end €4.3bn employees 25 countries approach Revenue to 31/12/2020 2% 10% 15% 3% 26% 5% 32% 1
Slide 11: Financial year 2020 marked by the Covid-19 pandemic
Financial year 2020 marked by the Covid-19 pandemic End-2019: Positive trends 2020: Crisis management 2020 overview: Resilience 2019 operating margin on Top priority placed on Negative organic growth in business activity: 8% health and human resources revenue limited to 4.8% 2020 projections: growth
Slide 12: 2020 negative organic growth limited to 4.8%
2020 negative organic growth limited to 4.8% Specific impact linked to the weighting of aerospace and the cyberattack: c. 2.5 pts of growth +6.5% c. 1.5 pts Aeronautics impact +3% to +5% +5.2% +4.9% Q1 Q12020 2020 +11% +3.5% -20% Q2 2020 Change in revenue from aeronautics +2.0% -29% Q3 2020 2020 act
Slide 13: Quarterly breakdown of 2020 organic growth
Quarterly breakdown of 2020 organic growth Gradually improved after bottoming out in Q2 3.3% -0.5% 0% -4.2% (1) -5.9% -7.7% (2) -8.4% Q1 Q2 Q3 Q4 Q1 2020 2021 (1) Q4 restated to exclude the effects of the cyberattack. (2) Q4 reported. 13 Presentation for the 2021 Combined General Meeting – 26 May 20
Slide 14: Resilient operating margin
Resilient operating margin Declined only 1 pt, including 0.2 pts as a result of the cyberattack Operating margin on business Prices stable overall activity (%) Continued to rise slightly in consulting Sharp fall in consultant downtime between April and December Situation normalised in Q4 2020 8.0% 7
Slide 15: France
France Financial year 2020 affected by the impact of the pandemic and the cyberattack 2020 2019 France (€m) (% of Rev.) (€m) (% of Rev.) Revenue 1,655.6 1,813.1 Organic growth (%) - 10.2% Operating profit on business activity 111.9 6.8% 175.5 9.7% Profit from recurring operations 104.8 6.3% 167.2 9.
Slide 16: United Kingdom
United Kingdom Performance boosted by our two public-sector joint ventures 2020 2019 United Kingdom (€m) (% of Rev.) (€m) (% of Rev.) Revenue 699.8 771.5 p Organic growth (%) + 1.9% Operating profit on business activity 56.0 8.0% 56.1 7.3% Profit from recurring operations 44.1 6.3% 43.8 5.7% Operati
Slide 17: Other Europe
Other Europe Performance improved across virtually all geographies 2020 2019 Other Europe (€m) (% of Rev.) (€m) (% of Rev.) Revenue ee cas o 1,249.0 1,152.9 Organic growth (%) + 2.3% Operating profit on business activity 101.0 8.1% 77.4 6.7% Profit from recurring operations 96.5 7.7% 73.0 6.3% Opera
Slide 18: Sopra Banking Software
Sopra Banking Software Gradual improvement in operating position 2020 2019 Sopra Banking Software (€m) (% of Rev.) (€m) (% of Rev.) Revenue 421.6 438.9 Organic growth (%) - 9.1% Operating profit on business activity 10.5 2.5% 4.9 1.1% Profit from recurring operations -4.1 -1.0% -8.9 -2.0% Operating
Slide 19: Other Solutions
Other Solutions A year impacted by project postponements 2020 2019 Other Solutions (€m) (% of Rev.) (€m) (% of Rev.) Revenue 236.9 257.5 Organic growth (%) - 8.9% Operating profit on business activity 20.8 8.8% 40.3 15.7% Profit from recurring operations 19.9 8.4% 39.1 15.2% Operating profit 17.9 7.
Slide 20: Income statement
Income statement Financial year 2020 2020 2020 2019 2019 (€m) (% of Rev.) (€m) (% of Rev.) Revenue 4,262.9 4,434.0 Organic growth -4.8% Operating o d profit on business activity 300.2 7.0% 354.3 8.0% Share-based payment expenses - 4.2 - 11.1 Amortisation of allocated intangible assets - 34.8 - 28.9
Slide 21: Simplified balance sheet
Simplified balance sheet 31/12/2020 31/12/2019 (€m) (€m) Goodwill 1,843.2 1,813.9 Allocated intangible assets 161.5 181.5 Other fixed assets 241.1 267.9 Right-of-use assets 290.3 320.4 Equity-accounted investments 193.4 195.0 Fixed assets 2,729.6 2,778.8 Net deferred tax 113.4 98.1 0 0 Trade account
Slide 22: Outlook for 2021
Outlook for 2021 22 Presentation for the 2021 Combined General Meeting – 26 May 2021
Slide 23: Continued improvement in business activity in early 2021
Continued improvement in business activity in early 2021 Q1 2021 revenue Revenue Q1 2020 Organic Total Q1 2021 Restated* growth growth (€m) (€m) (%) (%) France 460.2 491.3 - 6.3% - 0.9% United Kingdom 208.9 178.8 + 16.8% + 15.2% Other Europe 331.2 328.7 + 0.8% + 1.3% Sopra Banking Software 101.4 111
Slide 24: Recap of guidance for 2021
Recap of guidance for 2021 Overall environment improved with respect to the last 3 quarters of 2020 Low visibility and situation in certain verticals is still highly challenging Recap of targets set at 26 February 2021: Organic revenue growth of between 3% and 5% Operating margin on business activit
Slide 25: Our corporate project
Our corporate project Independent and creating value for stakeholders Expanding European Organic growth …in services and worldwide in software External growth Independent Reference shareholder Employee shareholding Added value Unique Performance End-to-end approach Software development
Slide 26: Overview of the corporate responsibility strategy
Overview of the corporate responsibility strategy 26 Presentation for the 2021 Combined General Meeting – 26 May 2021
Slide 27: 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 28: 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 29: Our contribution to the United Nations' SDGs
Our contribution(1) to the United Nations’ 17 SDGs 7 commitments aligned with the business model Supporting local Leading employer: communities attracting talent, equal opportunity, diversity, employee dialogue 7 1 Long-term partner for our clients, Applying our 6 2 meeting their needs as effectivel
Slide 30: Commitment to net-zero emissions by 2028 (1/2)
Commitment to net-zero emissions by 2028 (1/2) Plan to reduce our greenhouse gas (GHG) emissions Direct activities Sites Energy management -74% per employee Business travel -85% per employee Mobility policy (baseline: 2015) by 2040 Data centres Digitisation (vs -36% in 2019) (baseline: 2015) Offset
Slide 31: Commitment to net-zero emissions by 2028 (2/2)
Commitment to net-zero emissions by 2028 (2/2) Our trajectory toward achieving net-zero emissions by 2028 Sites, business travel 2022 and data centres Waste and commuting 2025 2027 50% of the supply chain 100% of the supply chain 2028 Direct activities Indirect activities 31 Presentation for the 202
Slide 32: Senior management positions: a proactive policy
Senior management positions: a proactive policy The Group’s target is for women to make up 30% of the Executive Committee by 2025 % Women Targets for in 2020 2025 Action plan Executive Recruitment 30% Committee: 12% Promotions Mentoring Stereotype awareness 17% (2023) training Senior managers: 15% 2
Slide 33: Responsible digital technology
Responsible digital technology Gradually integrating sustainability into our value proposition Sopra Steria sponsors the Digital sobriety & sustainable IT - Measuring the environmental impact of “Digital, Governance and our clients’ systems Sovereignty” academic - Developing systems that meet our cl
Slide 34: Meeting schedule
Meeting schedule 01 Agenda for the General Meeting 02 Board of Directors’ reports – Presentation of the 2020 accounts and operating position 03 Statutory Auditors’ reports 04 Q&A session 05 Results of votes on proposed resolutions 06 Closing remarks to the General Meeting 34 Presentation for the 202
Slide 35: Auditors' reports
Auditors’ reports Statutory Auditors’ report on the consolidated and individual financial statements Statutory Auditors’ special report on regulated agreements and commitments 35 Presentation for the 2021 Combined General Meeting – 26 May 2021
Slide 36: Meeting schedule
Meeting schedule 01 Agenda for the General Meeting 02 Board of Directors’ reports – Presentation of the 2020 accounts and operating position 03 Statutory Auditors’ reports 04 Q&A session 05 Results of votes on proposed resolutions 06 Closing remarks to the General Meeting 36 Presentation for the 202
Slide 37: 2021 Combined General Meeting Q&A session
2021 Combined General Meeting Q&A session 37 Presentation for the 2021 Combined General Meeting – 26 May 2021
Slide 38: Meeting schedule
Meeting schedule 01 Agenda for the General Meeting 02 Board of Directors’ reports – Presentation of the 2020 accounts and operating position 03 Statutory Auditors’ reports 04 Q&A session 05 Results of votes on proposed resolutions 06 Closing remarks to the General Meeting 38 Presentation for the 202
Slide 39: Quorum and majority rules
Quorum and majority rules Ordinary General Meeting The resolutions submitted for the approval of the Ordinary General Meeting require a quorum of at least one fifth of the total voting shares and a majority of the votes of the shareholders present or represented by proxy holders. Extraordinary Gener
Slide 40: Shareholder attendance
Shareholder attendance Share Vote Total number of shares 20,547,701 Number of shares with voting rights 20,538,355 26,682,644 Quorum required OGM 1/5 4,107,671 Quorum required EGM 1/4 5,134,589 Number of shareholders in attendance or being represented (1,203) 81.07% 16,649,532 Number of votes in att
Slide 41: Approval of financial statements, Setting of the dividend
Resolutions 1 to 3 Approval of financial statements , Setting of the dividend 41 Presentation for the 2021 Combined General Meeting – 26 May 2021
Slide 42: Resolution 1
Resolution 1 Requiring the approval of the Ordinary General Meeting – Simple majority APPROVAL OF THE INDIVIDUAL FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020; APPROVAL OF NON-DEDUCTIBLE EXPENSES. expressed votes In favor 21,988,842 99.97% Against 6,293 Abstention 18,225 Adopted
Slide 43: Resolution 2
Resolution 2 Requiring the approval of the Ordinary General Meeting – Simple majority APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020. expressed votes In favor 21,989,220 99.97% Against 6,175 Abstention 17,965 Adopted Resolution 43 Presentation for the
Slide 44: Resolution 3
Resolution 3 Requiring the approval of the Ordinary General Meeting – Simple majority APPROPRIATION OF EARNINGS FOR THE YEAR ENDED 31 DECEMBER 2020 AND SETTING OF THE DIVIDEND. expressed votes In favor 22,012,862 99.99% Against 349 Abstention 149 Adopted Resolution 44 Presentation for the 2021 Combi
Slide 45: Consultation of shareholders on the compensation of company officers
Resolutions 4 to 10 Consultation of shareholders on the compensation of company officers 45 Presentation for the 2021 Combined General Meeting – 26 May 2021
Slide 46: Resolution 4
Resolution 4 Requiring the approval of the Ordinary General Meeting – Simple majority APPROVAL OF DISCLOSURES AS PRESENTED IN THE REPORT ON CORPORATE GOVERNANCE PURSUANT TO ARTICLE L. 22-10-34 I OF THE FRENCH COMMERCIAL CODE. expressed votes In favor 21,924,246 99.60% Against 87,580 Abstention 1,534
Slide 47: Resolution 5
Resolution 5 Requiring the approval of the Ordinary General Meeting – Simple majority APPROVAL OF THE FIXED, VARIABLE AND EXCEPTIONAL ITEMS OF COMPENSATION MAKING UP THE TOTAL COMPENSATION AND BENEFITS OF ANY KIND PAID DURING THE YEAR ENDED 31 DECEMBER 2020 OR ALLOTTED IN RESPECT OF THAT PERIOD TO M
Slide 48: Resolution 6
Resolution 6 Requiring the approval of the Ordinary General Meeting – Simple majority APPROVAL OF THE FIXED, VARIABLE AND EXCEPTIONAL ITEMS OF THE TOTAL COMPENSATION AND BENEFITS OF ANY KIND PAID DURING THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 OR ALLOTTED IN RESPECT OF THAT PERIOD TO MR VINCENT PAR
Slide 49: Resolution 7
Resolution 7 Requiring the approval of the Ordinary General Meeting – Simple majority APPROVAL OF THE COMPENSATION POLICY FOR THE CHAIRMAN OF THE BOARD OF DIRECTORS, AS PRESENTED IN THE REPORT ON CORPORATE GOVERNANCE PURSUANT TO ARTICLE L. 22-10-8 OF THE FRENCH COMMERCIAL CODE. expressed votes In fa
Slide 50: Resolution 8
Resolution 8 Requiring the approval of the Ordinary General Meeting – Simple majority APPROVAL OF THE COMPENSATION POLICY FOR THE CHIEF EXECUTIVE OFFICER, AS PRESENTED IN THE REPORT ON CORPORATE GOVERNANCE PURSUANT TO ARTICLE L. 22-10-8 OF THE FRENCH COMMERCIAL CODE. expressed votes In favor 20,967,
Slide 51: Resolution 9
Resolution 9 Requiring the approval of the Ordinary General Meeting – Simple majority APPROVAL OF THE COMPENSATION POLICY FOR THE DIRECTORS, AS PRESENTED IN THE REPORT ON CORPORATE GOVERNANCE PURSUANT TO ARTICLE L. 22-10-8 OF THE FRENCH COMMERCIAL CODE. expressed votes In favor 22,008,269 99.98% Aga
Slide 52: Resolution 10
Resolution 10 Requiring the approval of the Ordinary General Meeting – Simple majority DECISION SETTING THE TOTAL AMOUNT OF COMPENSATION AWARDED TO DIRECTORS FOR THEIR SERVICE, AS REFERRED TO IN ARTICLE L. 225-45 OF THE FRENCH COMMERCIAL CODE, AT €500,000. expressed votes In favor 21,992,131 99.98%
Slide 53: Appointment of Director representing employee shareholders
Resolution 11 Appointment of Director representing employee shareholders 53 Presentation for the 2021 Combined General Meeting – 26 May 2021
Slide 54: Resolution 11
Resolution 11 Requiring the approval of the Ordinary General Meeting – Simple majority APPOINTMENT OF ASTRID ANCIAUX AS DIRECTOR REPRESENTING EMPLOYEE SHAREHOLDERS FOR A TERM OF OFFICE OF FOUR YEARS. expressed votes In favor 21,886,118 99.61% Against 85,009 Abstention 42,233 Adopted Resolution 54 Pr
Slide 55: Authorization for the company to buy back its own shares
Resolution 12 Authorization for the company to buy back its own shares 55 Presentation for the 2021 Combined General Meeting – 26 May 2021
Slide 56: Resolution 12
Resolution 12 Requiring the approval of the Ordinary General Meeting – Simple majority AUTHORISATION GRANTED TO THE BOARD OF DIRECTORS, FOR A PERIOD OF 18 MONTHS, TO ALLOW THE COMPANY TO BUY BACK ITS OWN SHARES PURSUANT TO ARTICLE L. 22-10-62 OF THE FRENCH COMMERCIAL CODE. expressed votes In favor 2
Slide 57: Involvement of management and employees in the capital
Resolutions 13 to 14 Involvement of management and employees in the capital 57 Presentation for the 2021 Combined General Meeting – 26 May 2021
Slide 58: Resolution 13
Resolution 13 Requiring the approval of the Extraordinary General Meeting – Reinforced majority Authorisation granted to the Board of Directors, for a period of 38 months, to allot free shares to employees and company officers of the Company and its Group, up to a maximum of 1% of the share capital,
Slide 59: Resolution 14
Resolution 14 Requiring the approval of the Extraordinary General Meeting – Reinforced majority DELEGATION OF AUTHORITY TO THE BOARD OF DIRECTORS, FOR A PERIOD OF 26 MONTHS, TO DECIDE TO INCREASE THE COMPANY’S SHARE CAPITAL, WITHOUT PRE-EMPTIVE SUBSCRIPTION RIGHTS FOR EXISTING SHAREHOLDERS, VIA ISSU
Slide 60: Powers for formalities
Resolution 15 Powers for formalities 60 Presentation for the 2021 Combined General Meeting – 26 May 2021
Slide 61: Resolution 15
Resolution 15 Requiring the approval of the Ordinary General Meeting – Simple majority POWERS GRANTED TO CARRY OUT ALL LEGAL FORMALITIES. expressed votes In favor 22,012,100 99.99% Against 870 Abstention 390 Adopted Resolution 61 Presentation for the 2021 Combined General Meeting – 26 May 2021
Slide 62: Meeting schedule
Meeting schedule 01 Agenda for the General Meeting 02 Board of Directors’ reports – Presentation of the 2020 accounts and operating position 03 Statutory Auditors’ reports 04 Q&A session 05 Results of votes on proposed resolutions 06 Closing remarks to the General Meeting 62 Presentation for the 202
Slide 63: Closing remarks – 2021 Combined General Meeting
Closing remarks – 2021 Combined General Meeting A video recording will soon be available on the Company’s website 63 Presentation for the 2021 Combined General Meeting – 26 May 2021
Slide 64: Annexes
Annexes 64 Presentation for the 2021 Combined General Meeting – 26 May 2021
Slide 65: 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