Sopra Steria Group Sa · EURONEXT:SOP
Sopra Steria Group Sa — Sopra Group — Shareholder Meeting (June 2012)
48 slides from Sopra Steria Group Sa's shareholder meeting presentation, Jun 19, 2012
Slide 1: Annual General Meeting
Annual General Meeting 19 June 2012
Slide 2: Forward Looking Statements
Forward Looking Statements This document contains forecasts in respect of which there are risks and uncertainties concerning Sopra Group’s future growth and profitability. The Group highlights the fact that the signature of licence contracts, which often represent investments for clients, are more
Slide 3: Annual General Meeting Summary
Annual General Meeting Summary Annual General Meeting Agenda Board of Directors’ Report Auditors’ Reports Information about proposed resolutions Discussion Vote Closing 3
Slide 4: Agenda (1/6)
Agenda (1/6) Requiring the approval of the Ordinary General Meeting Approval of the Sopra Group SA individual financial statements for the financial year ended 31 December 2011 and the granting of final discharge to members of the Board of Directors Approval of Sopra Group’s consolidated finan
Slide 5: Agenda (2/6)
Agenda (2/6) Requiring the approval of the Ordinary General Meeting Setting of Directors’ fees Authorisation given to the Board of Directors to allow Sopra Group to acquire its own shares under Article L. 225-209 of the French Commercial Code Requiring the approval of the Extraordinary Gener
Slide 6: Agenda (3/6)
Agenda (3/6) Requiring the approval of the Extraordinary General Meeting Delegation of authority to the Board of Directors to decide to increase the Company’s share capital, with pre-emptive rights for existing shareholders, by issuing shares or other securities giving access to the Company’s eq
Slide 7: Agenda (4/6)
Agenda (4/6) Requiring the approval of the Extraordinary General Meeting Delegation of authority to the Board of Directors to decide to increase the number of shares or securities giving access to equity to be issued pursuant to the authorisation referred to in the twenty-fifth resolution, witho
Slide 8: Agenda (5/6)
Agenda (5/6) Requiring the approval of the Extraordinary General Meeting Delegation of authority to the Board of Directors to decide to increase the Company’s share capital, without pre-emptive rights for existing shareholders, in consideration of contributions in kind consisting of equity secur
Slide 9: Agenda (6/6)
Agenda (6/6) Requiring the approval of the Extraordinary General Meeting Extension of the Company’s term of existence and consequential amendment to its Articles of Association Correction to identification of agent responsible for the ledger of registered shares and consequential amendment to
Slide 10: Annual General Meeting Summary
Annual General Meeting Summary Annual General Meeting Agenda Board of Directors’ Report Auditors’ Reports Information about proposed resolutions Discussion Vote Closing 10
Slide 11: Board of Directors' Report
Board of Directors’ Report Key figures 2011 Supplementary information and trends observed Strategy and outlook 11
Slide 12: Performance among the best in 2011
Performance among the best in 2011 1050 530 520 Revenue (M€) Operating profit on business activity (M€) 43 50 93 H1 H2 2011 Total growth +12% +7% +9% Organic growth +11% +5% +8% Operating profit margin on business activity 8.1% 9.5% 8.8% 12
Slide 13: Income statement: key elements
Income statement: key elements 2011 2011 2010 (€m) (%) (%) Revenue 1,050.3 Operating profit on business activity 92.5 8.8% 8.9% Operating profit 97.9 9.3% 8.7% Net profit before profit from 64.3 6.1% 5.0% discontinued operations Net profit 62.9 6.0% 13
Slide 14: Income statement: effective cost control
Income statement: effective cost control Change 2011 2010 2011/2010 (€m) (€m) (%) Staff costs 797.2 732.6 8.8% o/w employees 701.4 652.1 7.6% o/w contractors 95.8 80.5 19.0% Operating expenses 147.0 133.0 10.5% Organic growth in 2011: 8.0 % 14
Slide 15: Performance by country
Performance by country Revenue Margin Growth 2011 2011 2011/2010 (€m) (%) (%) France 865.8 9.6% 8.6% Spain 70.3 6.1% 3.4% United Kingdom 58.5 2.4% 1.1% Italy 35.9 5.4% 15.8% Switzerland 11.8 18.6% 27.7% Benelux 8.0 -11.1% -14.3% Total Europe (excl. France) 184.5 4.9% 4.9% Total Group 1,050.3 8.8% 8.
Slide 16: Key balance sheet information
Key balance sheet information Change 2011 2010 2011/2010 (€m) (€m) (%) Goodwill 190.9 369.9 Equity accounted investments 109.4 - Trade accounts receivable (net) 345.0 368.4 -6.4% Equity 273.9 364.6 Net financial debt* 46.4 57.2 -18.9% * Including employee participation 16
Slide 17: Shareholders' equity following Axway spin-off
Shareholders’ equity following Axway spin-off 364.6 273.9 200.4 Capital 62.9 gain on Position distributed Translation Position at shares of adjustments at Net In €m 31/12/10 Axway profit 31/12/11 -9.5 -6.6 -6.8 Distribution -46.6 Distribution Other in in kind Distribution movements cash of Axway in
Slide 18: Change in net debt (1/2)
Change in net debt (1/2) 2010 2011 Reported (€m) (€m) Net debt at beginning of period (A) 57.2 137.4 Gross cash flow from operations before net 100.5 124.7 financial debt and tax Tax paid -38.7 -33.8 Changes in working capital requirements -1.3 20.9 Net cash flow from operations 60.5 111.8 Change re
Slide 19: Change in net debt (2/2)
Change in net debt (2/2) 2010 2011 Reported (€m) (€m) Dividends paid -56.1 -9.4 Capital increases in cash 1.2 2.6 Change in loans and advances granted 68.4 - (reimbursement of Axway current account) Other changes -1.0 -3.6 Net cash flow relating to discontinued operations 12.6 - Net cash flow (B) 22
Slide 20: Healthy financial ratios
Healthy financial ratios 2009 2010 2011 23.9 Ratios pro forma for 2011 (excl. Axway) 18.7 6.35 6.9 5.29 49% 2.33 16% 17% 1.5 0.5 0.5 Basic earnings per Net debt / Equity Net debt / EBITDA Operating profit / share (€) Cost of net debt Covenants < 100 % <3 >5 Ratios calculated for 7% 0.2 23.9 banking
Slide 21: High added-value business model
High added-value business model Consulting Software 5% 14% Fixed-price projects Application outsourcing Time & materials 81% 21
Slide 22: European presence
European presence Italy Other Spain 3% 2% United Kingdom 7% 6% 82% France 22
Slide 23: Vertical market positioning
Vertical market positioning Retail Telecom & Medias 7% 25% Financial services 12% Manufacturing 17% 21% Services, Transport 18% & Utilities Public sector 23
Slide 24: Careful attention to HR management
Careful attention to HR management 12610 11650 10840 8960 8230 7740 excl. France France Total 3420 3650 3100 2009 2010 2011 24
Slide 25: Another key achievement in 2011: Successful spin-off/stock market listing
Another key achievement in 2011: Successful spin-off/stock market listing 25
Slide 26: Board of Directors' Report
Board of Directors’ Report Key figures 2011 Supplementary information and trends observed Strategy and outlook 26
Slide 27: 2011 Overview: supplementary information
2011 Overview: supplementary information Strong organic growth of 8% for the Group Excellent level of business in the first half (+11%) A certain slowdown in the final quarter Strong margin despite a resurgent economic crisis at the end of the year Clients are postponing licence investment
Slide 28: 2011 Overview: market segments
2011 Overview: market segments Major transformation of public sector coupled with investment slowdown Huge investments for utilities Obligatory innovation and constant change for telecoms Hesitation, yet real opportunities, for banks and financial services IT system harmonisation Back-of
Slide 29: 2011 Overview: key accounts
2011 Overview: key accounts Target key accounts with strong growth potential, cultivate close partnerships and capitalise on our reputation for quality delivery 29
Slide 30: Medium and long term growth drivers
Medium and long term growth drivers Technology in society at large IT is omnipresent Emergence of readily available technologies at the heart of large enterprises Consumer usage profoundly influencing strategy of large groups New technological cycle Social Networks Mobility Big Data Cloud
Slide 31: Changing demand
Changing demand Globalisation playing a major role in clients’ strategic decisions Global outsourcing is rare and risky Merging of major fixed-price and application outsourcing projects Capacity to operate, directly or indirectly Core systems built on software bricks Demand continues for
Slide 32: Top-priority initiatives in progress
Top-priority initiatives in progress Reposition consulting Create banking solutions subsidiary Align offerings of European subsidiaries Constantly industrialise and transform business Innovate and take into consideration the technology cycle Human resources management in constant evoluti
Slide 33: Board of Directors' Report
Board of Directors’ Report Key figures 2011 Supplementary information and trends observed Strategy and outlook 33
Slide 34: Innovation & transformation: our DNA
Innovation & transformation: our DNA Track record of sound strategic choices since 2003 provide solid foundation for future development and the stakes/risks of our market segment Constant need to adapt to changing market conditions and the newest technologies has forged a leader Innovation I
Slide 35: Impressive past performance (figures excl. Axway)
Impressive past performance (figures excl. Axway) Project 2011 Project 2007 1 050 958 962 856 912 781 672 556 451 Revenue (€m) Profit on business activity (€m) 25 37 47 63 76 82 65 86 93 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total growth (%) - 2% +23% +21% +16% +10% +12% - 5% +5% +9% Organic
Slide 36: Value creation for the period
Value creation for the period 100 100 90 90 87.40 € 80 80 66.65 € 70 70 60 60 61.55 € Sopra share 50 50 52.44 € 44.49 € 40 40 30 30 23.59 € Axway share 20 20 14.17 € 10 15.30 € 10 0 0 2003 02/01/2003 2004 02/01/2004 2005 02/01/2005 2006 02/01/2006 2007 02/01/2007 2008 02/01/2008 2009 02/01/2009 2010
Slide 37: Targeting an ambitious 2015 strategy
Targeting an ambitious 2015 strategy Ambition Cohesive and independent European provider of Consulting, IT Services and Software Market leader in terms of economic performance Positioning Combining industrial quality, high-performance services, added-value and innovation to the solutions i
Slide 38: Recent acquisitions support 2015 strategy
Recent acquisitions support 2015 strategy Date Company Business Market Focus on emerging 09/2011 Delta-Informatique Banking solutions markets Tieto 02/2012 Banking solutions United Kingdom (UK subsidiary) Business & Decision Consulting & 02/2012 United Kingdom (UK subsidiary) IT Services 04/2012 Cal
Slide 39: Focus on « Sopra Banking Software »
Focus on « Sopra Banking Software » Creation of a subsidiary dedicated to development of banking software solutions Evolan, Sopra Group’s historical software Delta Bank, Delta-Informatique’s software Thaler, Callataÿ & Wouters’ software 2011 pro forma revenue approximately €220m (including
Slide 40: Group figures updated (1/2)
Group figures updated (1/2) Offerings: pro forma 2011 Regions: pro forma 2011 Consulting Other countries Software 5% 24% 27% 73% 71% France IT Services 40
Slide 41: Group figures updated (2/2)
Group figures updated (2/2) Staff: end April 2012 Sectors: pro forma 2011 14 000 Retail Total Telecom Financial & Medias services 6% 11% hors 9 300 France 35% France France Total 15% 4 700 excl. 15% France Industry 18% Services, Public Transport & sector Utilities April 2012 41
Slide 42: Review of 2012 so far
Review of 2012 so far Good start to the year Organic growth of 4.5% in Q1 Activity slowdown from mid-March First half expected to be at about 0% in organic growth Challenging comparison base 2 fewer billing days in Q2 Difficult market conditions Second half tense but achievable Int
Slide 43: Outlook 2012
Outlook 2012 Slight organic growth despite a difficult economic context and a challenging comparison base Very slight improvement to margins on the condition that the macro-economic climate does not deteriorate further at year- end 43
Slide 44: Annual General Meeting Summary
Annual General Meeting Summary Annual General Meeting Agenda Board of Directors’ Report Auditors’ Reports Information about proposed resolutions Discussion Vote Closing 44
Slide 45: Annual General Meeting Summary
Annual General Meeting Summary Annual General Meeting Agenda Board of Directors’ Report Auditors’ Reports Information about proposed resolutions Discussion Vote Closing 45
Slide 46: Annual General Meeting Summary
Annual General Meeting Summary Annual General Meeting Agenda Board of Directors’ Report Auditors’ Reports Information about proposed resolutions Discussion Vote Closing 46
Slide 47: Annual General Meeting Summary
Annual General Meeting Summary Annual General Meeting Agenda Board of Directors’ Report Auditors’ Reports Information about proposed resolutions Discussion Vote Closing 47
Slide 48: End of the Annual General Meeting
End of the Annual General meeting 19 June 2012 48