Slide 1: 2010 Half-Year Results
2010 HALF-YEAR RESULTS www.econocom.com
Slide 2: Agenda
AGENDA  Group profile  Increase in half-year results  A solid financial position  A major external growth transaction  Conclusion and outlooks www.econocom.com 2
Slide 3: Group Profile
GROUP PROFILE www.econocom.com 3
Slide 4: A Services Company
A SERVICES COMPANY  An ICT services provider, specialized in B-to-B  A direct presence in 8 European countries and in Morocco *  2,250 employees including 1,600 engineers and technicians  More than 25 years of experience  Listed since 1986 (Euronext Brussels) * France, Belgium, The Netherlands,
Slide 5: A Complete Range in the Management of IT and Telecom Resources
A COMPLETE RANGE IN THE MANAGEMENT Â Four complementary fields of expertise OF IT AND z Financing and asset management TELECOM RESOURCES z Supplier of IT products and solutions z IT services z Telecom solutions www.econocom.com 5
Slide 6: Vision of the Market
VISION OF THE MARKET Â The new technologies and mobility solutions have transformed organizations and generated new needs for users. Â A key issue: to ensure that all company employees have ANY TIME, ANYWHERE the communication tools and ACCESS TO THE INFORMATION necessary to efficiently carry out th
Slide 7: Econocom's Mission
ECONOCOM’S MISSION Econocom guides and supports its customers in IT and telecom infrastructure management by providing mobility solutions customized to their users. www.econocom.com 7
Slide 8: Horizon 2012 Strategic Plan
HORIZON 2012 STRATEGIC PLAN  A five year strategic plan (2008-2012)  A strong strategic axis supporting the group’s growth  A clear vision of the market and a conviction: In a highly competitive IT market, innovation is the main factor of differentiation to build the group leadership www.econocom
Slide 9: Innovation at the Heart of the Econocom Strategy
HORIZON 2012 STRATEGIC INNOVATION AT THE HEART OF THE ECONOCOM STRATEGY PLAN STRATEGIC PLAN 2003-2007 STRATEGIC PLAN 2008-2012 To regain leadership Reinforce our leadership through innovation by uniting our talents in the scope of enterprise solutions www.econocom.com 9
Slide 10: Enterprise Solutions for a Better Market Penetration
HORIZON 2012 STRATEGIC PLAN ENTERPRISE SOLUTIONS 6 differentiating offerings and cross-activity to Econocom businesses FOR A BETTER MARKET PENETRATION www.econocom.com 10
Slide 11: Increase in Half-Year Results
INCREASE IN HALF-YEAR RESULTS www.econocom.com 11
Slide 12: Main Figures as of 06/30/2010
INCREASE IN HALF-YEAR RESULTS MAIN FIGURES AS OF 06/30/2010 Revenue Recurring Net profit operating profit 361.3 M€ 10.7 M€ 6.2 M€ +4.4% +17% +2.7% www.econocom.com 12
Slide 13: Consolidated P&L Statement as of 06/30/2010
INCREASE IN HALF-YEAR RESULTS CONSOLIDATED P&L STATEMENT AS OF 06/30/2010 (M€) H1 2009 H1 2010 Revenue 346.2 361.3 +4.4% Recurring operating profit 9.2 10.7 +17.3% Operating profit 8.8 9.3 Profit before tax 8.6 9.0 Tax (2.5) (2.7) Net profit, group share 6.1 6.2 +2.7% Net earnings per share (€) 0.25
Slide 14: Consolidated Revenue per Activity
INCREASE IN HALF-YEAR RESULTS CONSOLIDATED REVENUE PER ACTIVITY (M€) H1 2009 H1 2010 % IT Financial Services 173.3 185.2 +6.9% Products and Solutions 95.0 99.0 +4.2% Managed Services 64.3 59.2 -7.9% Telecom Services 13.6 17.9 +31.6% TOTAL ECONOCOM GROUP 346.2 361.3 +4.4% www.econocom.com 14
Slide 15: Contribution of the Activities to Recurring Operating Profit
INCREASE IN HALF-YEAR RESULTS CONTRIBUTION OF THE ACTIVITIES TO RECURRING OPERATING PROFIT (M€) 10.7 9.2 7.2 7.4 1.5 1.5 1.2 1.8 1.1 -0.4 -0.3 -1.1 IT Financial Products and Managed Telecom Other TOTAL Services Solutions Services Services H1 2009 H1 2010 www.econocom.com 15
Slide 16: IT Financial Services
IT FINANCIAL SERVICES 185.2 173.3 7.2 7.4 H1 2009 H1 2010 H1 2009 H1 2010 Revenue Recurring operating profit A very dynamic activity www.econocom.com 16
Slide 17: IT Financial Services
IT FINANCIAL SERVICES  A growing business: companies are seeking for financing and management solutions  A commercial development driven by the success of enterprise solutions  A proven ability to sign large contracts (> 20M€) and a "prospects" portfolio targeting major accounts www.econocom.com
Slide 18: Products and Solutions
PRODUCTS AND SOLUTIONS 95 99 1.5 1.5 H1 2009 H1 2010 H1 2009 H1 2010 Revenue Recurring operating profit Revenue growth of 4% Steady profitability levels www.econocom.com 18
Slide 19: Products and Solutions
PRODUCTS AND SOLUTIONS  Increase in order books thanks to: z the development of new offerings: Medical and Multimedia BU, desktop virtualization... z the success of enterprise solutions and more specifically the Desktop on Demand offering  A business model built around variable costs  On the firs
Slide 20: Managed Services
MANAGED SERVICES 64.3 59.2 1.8 1.2 H1 2009 H1 2010 H1 2009 H1 2010 Revenue Recurring operating profit Back to a more satisfactory profitability www.econocom.com 20
Slide 21: Managed Services: Significant Efforts to Streamline Costs in France
MANAGED SERVICES  Significant efforts to streamline costs in France  Investments made in 2009 – ramp up of a major outsourcing contract in Belgium and of a remote services center in Morocco – are now showing positive results  Recognized quality of services: for the third consecutive year, Econoco
Slide 22: Telecom Services
TELECOM SERVICES 17.9 13.6 1.1 H1 2009 H1 2010 -0.4 H1 2009 H1 2010 Revenue Recurring operating profit A growth of 30% in revenue Strong increase in profitability www.econocom.com 22
Slide 23: Telecom Services
TELECOM SERVICES  On H1, signing of several major and multi-year contracts  A mobility market creating new projects for companies (strong growth of the smart phone market), including the integration of mobile tools running job-specific applications  A joined operational approach for distribution
Slide 24: A Solid Financial Position
A SOLID FINANCIAL POSITION www.econocom.com 24
Slide 25: Consolidated Financial Statement as of 06/30/2010
A SOLID CONSOLIDATED FINANCIAL STATEMENT FINANCIAL AS OF 06/30/2010 (M€) POSITION H1 H1 2009 2010 2009 2010 NON CURRENT ASSETS 69.2 77.2 SHAREHOLDERS’ EQUITY 79.7 91.2 CURRENT ASSETS 267.0 291.5 LIABILITIES 256.5 277.5 Inventories 8.5 9.5 Provisions 9.2 11.8 Accounts receivable 184.3 199.2 Accounts
Slide 26: Growth of Net Cash
A SOLID FINANCIAL GROWTH OF NET CASH (M€) POSITION 18.3 11.7 H1 2009 H1 2010 www.econocom.com 26
Slide 27: Shareholders' Equity
A SOLID FINANCIAL SHAREHOLDERS’ EQUITY (M€) POSITION 79.7 91.2 H1 2009 H1 2010 www.econocom.com 27
Slide 28: Cash Flow Statement
A SOLID FINANCIAL CASH FLOW STATEMENT (M€) POSITION H1 2009 H1 2010 Cash flow 14.6 13.0 Change in working capital and tax (12.4) (20.5) Cash flow from operations 2.2 (7.4) Investment flow (5.1) (3.5) Change in own-shares (5.7) 4.8 Dividends paid (5.1) (6.9) Reimbursement of debts and others 1.1 8.7
Slide 29: The Econocom Group Share as of 08.31.2010
A SOLID FINANCIAL THE ECONOCOM GROUP SHARE AS OF 08.31.2010 POSITION Market capitalization as of August 31st, 2010 M€ 270 Quoted price as of August 31st, 2010 € 10.89 Market capitalization / Shareholders’ equity 2.96 Gross dividend (Shareholders’ Meeting – May 18, 2010) € 0.30 Total number of shares
Slide 30: A Major External Growth Transaction
A MAJOR EXTERNAL GROWTH TRANSACTION www.econocom.com 30
Slide 31: A Motivating and Ambitious Project
A MAJOR EXTERNAL A MOTIVATING AND AMBITIOUS PROJECT GROWTH TRANSACTION Â On July 1st, 2010, Econocom Group and Société Générale have entered into exclusive negotiations for the acquisition of ECS Group by Econocom. Â In a concentrated market where the size becomes a strategic issue, creation of the
Slide 32: ECS Group: Historic Matters
ECS GROUP: HISTORIC MATTERS  Founded by Jean-Louis Bouchard in 1974  Historic business: financing IT infrastructures  1982: Société Générale buys 60% of ECS to CCF  1984: Jean-Louis Bouchard activates his “succession right” and sells his participation in ECS to Société Générale  Jean-Louis Bouc
Slide 33: ECS Group: Historic Matters
ECS GROUP: HISTORIC MATTERS  Specialized in IT systems management and monitoring  An expertise in two businesses: financing solutions and managed services  Located in 17 countries(1), with a strong presence in Western Europe and subsidiaries in Eastern Europe, Morocco, the United States and China
Slide 34: ECS Group: Historic Matters
ECS GROUP: HISTORIC MATTERS Revenue EBITDA EBIT Cash flow 840 M€ (1) 28.1 M€ 24.0 M€ 19 M€ (1) Excl. non consolidated subsidiaries (31 M€) www.econocom.com 34
Slide 35: ECS Group: Evolution of Revenue
ECS GROUP: HISTORIC MATTERS EVOLUTION OF REVENUE (M€) (1) (IFRS) 1,036 1,039 945 88 99 871 82 102 863 948 940 769 2006 2007 2008 2009 Leasing Managed Services (1) Incl. non consolidated subsidiaries www.econocom.com 35
Slide 36: ECS Group: Evolution of Operating Profit
ECS GROUP: 2009 MAIN EVOLUTION OF OPERATING PROFIT (EBIT - M€) (1) FIGURES (IFRS) 27.6 24.7 23.4 17.3 2006 2007 2008 2009 (1) Incl. non consolidated subsidiaries www.econocom.com 36
Slide 37: ECS Group: Consolidated Financial Statement 12/31/2009
ECS GROUP: CONSOLIDATED FINANCIAL STATEMENT 2009 MAIN AS OF 12/31/2009 (M€) FIGURES (FRENCH GAAP) NON-CURRENT ASSETS 44.1 SHAREHOLDERS’ EQUITY 131.9 CURRENT ASSETS 794.6 LIABILITIES 706.8 Inventories 79.9 Provisions 10.6 Accounts receivable 614.2 Accounts payable 459.3 Cash assets 44.0 Financial deb
Slide 38: ECS Group: Cash Flow Statement 12/31/2009
ECS GROUP: CASH FLOW STATEMENT AS OF 12/31/2009 (M€) 2009 MAIN (FRENCH GAAP) FIGURES Cash flow 19 Change in working capital and tax 5 Cash flow from operations 24 Investment flow (4) Dividends paid (15) Reimbursement of debts and others 21 Change in cash position 26 www.econocom.com 38
Slide 39: The Leading Independent Group in Infrastructure Management
MOTIVATIONS THE LEADING INDEPENDENT GROUP OF THE DEAL IN INFRASTRUCTURE MANAGEMENT  Near 4,000 employees  A revenue amounting to € 1.6 billion  4 complementary businesses  A position which gets reinforced on 7 large markets in Western Europe and extended to Eastern Europe, Morocco, China and the
Slide 40: Geographical Complementarity
MOTIVATIONS OF THE DEAL GEOGRAPHICAL COMPLEMENTARITY Revenue 2009 (M€) ECS Revenue 2009 (M€) Econocom ECS: presence too 35 in Morocco, 316 China and 2 51 USA 3 76 25 5 8 Econocom: 386 8 presence too 370 4 ns in Morocco 217 30 50 36 www.econocom.com 40
Slide 41: A Strong Cultural Proximity of the Two Groups
MOTIVATIONS A STRONG CULTURAL PROXIMITY OF THE DEAL OF THE TWO GROUPS  A common history and the same founder  Close businesses  Managers and teams which know each other www.econocom.com 41
Slide 42: The Independent Leader of Infrastructure Management
MOTIVATIONS New unit (Revenue : 1,6 b€) OF THE DEAL 2% THE INDEPENDANT LEADER OF INFRASTRUCTURE MANAGEMENT 11% 14% Econocom ECS (Revenue: 0.76 b€) (Revenue : 0.84 b€) 4% 12% 25% 73% 16% 88% 55% IT Financial Services / Location Products & Solutions Managed Services Telecom Services www.econocom.com 4
Slide 43: Business Synergies
MOTIVATIONS OF THE DEAL BUSINESS SYNERGIES  Credibility towards very large companies reinforced by the size of the new unit and its geographic coverage  Strong complementarity of the 2 groups’ sales forces: competences in SME for ECS and in large accounts for Econocom  Widened range of services r
Slide 44: Business Synergies - Services
MOTIVATIONS OF THE DEAL BUSINESS SYNERGIES - SERVICES  An immediate complementarity  The operation will make it possible to have an offer on the global ICT infrastructure z In services, the new group reaches a critical size (revenue higher than 250 M€). z ECS proposes a server business continuity
Slide 45: Two New Businesses That Will Benefit ECS Customers
MOTIVATIONS TWO NEW BUSINESSES OF THE DEAL THAT WILL BENEFIT TO ECS CUSTOMERS ICT products and solutions business  Implementation of companies’ IT architecture  A powerful supply chain: large hardware and software catalog  An offering that supports users’ mobility www.econocom.com 45
Slide 46: Telecom Business
MOTIVATIONS TWO NEW BUSINESSES OF THE DEAL THAT WILL BENEFIT TO ECS CUSTOMERS Telecom business  Making companies information system mobile thanks to its positioning at the heart of IT and telecom convergence  A complete range of offerings based on an added- value expertise  A single provider capa
Slide 47: Enterprise Solutions
MOTIVATIONS OF THE DEAL ENTERPRISE SOLUTIONS An original way to address a specific customer issue by combining different offerings from different businesses  Enterprise solutions are a real success z 15 customers chose one of them z 220,000 managed assets z 43 M€ of revenue signed during the 2010 h
Slide 48: A Diversified Customer Portfolio
MOTIVATIONS OF THE DEAL A DIVERSIFIED CUSTOMER PORTFOLIO  ECS: around 12,000 customers  2 main businesses z Financing solutions z Business continuity  SME positioning z Around 6,400 customers have between 0 and 100 users z Around 4,900 customers have between 100 and 2,000 users z Around 700 custo
Slide 49: Costs Synergies
MOTIVATIONS OF THE DEAL COSTS SYNERGIES  Increase in productivity: Econocom’s track record in executing annual cost optimization plans  Rationalization of locations and buildings  Standardization of tools www.econocom.com 49
Slide 50: Reinforcing the Relationship with Société Générale
MOTIVATIONS REINFORCING THE RELATIONSHIP OF THE DEAL WITH SOCIÉTÉ GÉNÉRALE (until end 2014)  Carrying on the business contribution by Société Générale agencies network  Carrying on a significant volume of refinancing by SGEF: €750 million over all countries www.econocom.com 50
Slide 51: Synergies Estimated at 20/25 M€ per Year by 2012
MOTIVATIONS OF THE DEAL THE WHOLE BUSINESSES AND COST SYNERGIES IS ESTIMATED AT 20/25 M€ PER YEAR BY 2012 www.econocom.com 51
Slide 52: Financial Facts of the New Entity
Financial facts of the new entity www.econocom.com 52
Slide 53: Financial Key Figures of the New Entity
FINANCIAL KEY FIGURES OF THE NEW ENTITY (M€) FACTS OF THE (Combined figures based on 2009 data) NEW ENTITY Combined revenue 1,600 EBITDA 60 EBIT 52 Net profit 35.3 Cash flow of operations 60 www.econocom.com 53
Slide 54: Financing of the Operation
FINANCIAL FACTS OF THE SHARES PRICE M€ 210 NEW ENTITY Financing of the operation (M€) Acquisition debt financing 120 Payment with Econocom Group shares 30 (valued 11€ per share, financed half by own shares and half by issued shares at closing) Increase in capital 50 - already guaranteed by the 2 fir
Slide 55: Balance Sheet: Main Data
FINANCIAL BALANCE SHEET: MAIN DATA FACTS OF THE NEW ENTITY After closing Estimated and capital 12/31/2010 Comments (1) increase Only 30 M€ of the Equity 165 185 capital increase are not allotted to date Improvement due to Net debt 190 135 the action plan on ECS working capital Gearing 1.15 0.73 (1)
Slide 56: Shareholding
FINANCIAL SHAREHOLDING FACTS OF THE NEW ENTITY Â The 2 main group shareholders support the project to a total value of 20 M€ Â A new shareholder: Société Générale (1) Â Shareholding after capital increases Jean-Louis Bouchard 45% (indirectly) Bestinver 14% (Spanish fund) Société Générale 9% Float 32
Slide 57: Some Ratios and Key Figures
FINANCIAL FACTS OF THE SOME RATIOS AND KEY FIGURES NEW ENTITY Â Satisfying balance sheet ratios z Strong increase of equity 165 M€ (1) z Indebtness ratio (net debt / equity) less than 1 (1) Â Quick reduction in debt expected thank to: z The implementation of managing methods for the working capital
Slide 58: Agenda of the Operation
Agenda of the operation www.econocom.com 58
Slide 59: Agenda of the Operation
AGENDA OF THE OPERATION Â Entered into exclusive negotiations July 1st, 2010 Â Information / IRP consultation of the 2 groups (ongoing) Â Financial agreements August 6, 2010 Â Acquisition contract signing September 2010 Â Closing October 2010 Â Announcement and implementation January 2011 www.econoc
Slide 60: Conclusion and Outlooks
CONCLUSION AND OUTLOOKS www.econocom.com 60
Slide 61: Conclusion
CONCLUSION Â On H1, growth in revenue and strong increase in recurring operating profit. The 4 group’s activities contribute to the growth of the result. Â This performance is driven by the success of enterprise solutions that allowed the signing of major contracts, benefiting all activities of the
Slide 62: Outlooks
OUTLOOKS  In the 3rd quarter of 2010, win of several major tenders for projects  Another year of growth expected in 2010  ECS acquisition project: a decisive step forward in a concentrated IT service market www.econocom.com 62
Slide 63: www.econocom.com
ava econocom " mobilit yon demand uu. @COnocom* mo bility on demand