Sopra Steria Group Sa · EURONEXT:SOP
Sopra Steria Group Sa — ESG Presentation (March 2024)
43 slides from Sopra Steria Group Sa's sustainability presentation, March 2024
Slide 1: Sopra Steria: Anchoring our strategy in sustainability
Sopra Steria: Anchoring our strategy in sustainability Paris, March 2024
Slide 2: Agenda
Company overview Governance & compensation Information and cybersecurity Business model and corporate plan system security and data privacy Corporate responsibility strategy Annexes Talent management 2 ESG presentation – March 2024
Slide 3: Company overview
Company overview 3 ESG presentation – March 2024
Slide 4: Sopra Steria: A European leader in digital transformation
Sopra Steria: A European leader in digital transformation Breakdown of revenue – Financial year ended 31 December 2023 Top 10 operating in Europe(1) 2023 revenue: 56,000 Operations in End-to-end €5.8bn employees 30 countries approach France Consulting Financial Services Systems Integration Insurance
Slide 5: History of Sopra Steria Group
History of Sopra Steria Group More than 50 years of growth and transformation 5 ESG presentation – March 2024
Slide 6: A core shareholder backing the corporate plan
A core shareholder backing the corporate plan Ownership structure at 31 December 2023 Pasquier Odin Treasury Managers family family shares 2.7% 68.5% 28.4% 0.4% Founders & Management Sopra GMT Shares managed on behalf Treasury shares Free float 2.6% 19.6% of employees Shareholders’ 6.45% 0.8% 70.5%
Slide 7: Historical operating performance
Historical operating performance 5 805 Historical average: organic revenue growth 6%; operating margin 8.4% 5 101 4 683 4 434 4 263 4 095 3 845 3 741 3 584 3 370 Revenue (€m) Operating profit on business activity (€m) 1 349 1 216 1 050 964 958 912 856 781 672 556 37 47 63 76 82 65 86 93 110 109 231
Slide 8: 2023 Performance (1/2)
2023 Performance (1/2) Sopra Steria is on track to reach its medium-term target of 10% for operating margin on business activity Organic Free cash revenue flow growth Operating margin on business activity 8 ESG presentation – March 2024
Slide 9: 2023 Performance (2/2)
2023 Performance (2/2) CDP • Score of “A” for the 7th year running • In the CDP Supplier Engagement Leaderboard (A), for the 4 year in a row 63.6% reduction for Scopes 1 & 2 (baseline: 2019) 9.8% reduction for Scope 3 (baseline: 2019) Great Place To Work certification • Response rate: 82% • Overall
Slide 10: Business model and corporate plan
Business model and corporate plan 10 ESG presentation – March 2024
Slide 11: Business model
Business model Value chain and associated indicators Sample of 2023 indicators of value created for the Group’s main stakeholders Employees 77% of employees say Sopra Steria is a great place to work – GPTW3 survey 34 hours of training on average per employee 100% of employees take part in a tr
Slide 12: Ambitious corporate plan
Ambitious corporate plan Core shareholder Organic growth Employee share ownership External growth Performance End-to-end approach Entrepreneurial culture Developing the Consulting business Close customer relationships Targeting specific verticals Digital sovereignty Tech 12 ESG presentation – March
Slide 13: Corporate responsibility strategy
Corporate responsibility strategy 13 ESG presentation – March 2024
Slide 14: Long-standing focus on sustainability
Long-standing focus on sustainability Fundamental values that encourage in particular respect for others, open- mindedness and curiosity Corporate Commitment to the UN Global Compact since 2004 (and since 2017 in the “Global Compact Advanced” category) responsibility Community outreach program
Slide 15: Corporate responsibility governance
Corporate responsibility governance 15 ESG presentation – March 2024
Slide 16: Our mission
Our mission “Together, leveraging digital technology to build a positive future for all.” Purposeful Sustainable Human-centred What we offer is rooted We see our actions – Our activities are focused in our ability to whether in running our on implementing projects anticipate, understand, businesses
Slide 17: Our contribution to the United Nations' SDGs
Our contribution(1) to the United Nations’ 17 SDGs 6 commitments aligned with the Group’s business model – contribution in2023 6, 7, 8, 9, 11, 12, 13, 1, 5, 7, 8, 9, 10, 11, 3, 4, 5, 7, 8, 9, 10, 1, 2, 3, 4, 5, 6, 7, 8, 3, 4, 5, 8, 9, 10, 17 14, 15, 17 3, 5, 8, 9, 10, 11, 16, 17 13, 16, 17 11, 12, 1
Slide 18: Helping combat climate change
Helping combat climate change Tangible action plans implemented with indicators to achieve our 2030 mid-term targets SCOPES 1 & 2 -63.6% - 54% Energy management Digitalisation Offices + Better locations and on-site data centres (vs 43.7% reduction in 2022) infrastructure Ways to reduce Target for 20
Slide 19: Proactive policy for senior management positions
Proactive policy for senior management positions The Group’s target is for women to make up 30% of the Executive Committee by 2025 % of Women Targets for in 2024 2025 Action plan Targeted recruitment EXCOM 30% Monitored promotions 17% (new HR career development process) Organised mentoring 20% 17% i
Slide 20: Integrating sustainable, trusted digital technology into our value proposition
Integrating sustainable, trusted digital technology into our value proposition GAIA-X: European Association for Data and Cloud - taking part in the Inform and guide our project to create a European data clients on key issues infrastructure surrounding digital ethics, Founding member of France’s trus
Slide 21: Talent management
Talent management 21 ESG presentation – March 2024
Slide 22: Recruitment and retention
Recruitment and retention Proactive talent management employment policy Key figures at 31 December 2019 2020 2021 2022 2023 Number of recruitments 10,844 6,133 10,636 13,073 9,629 Number of recruitments in France 4,112 2,045 3,019 4,267 3,557* Group workforce 46,245 45,960 47,437 49,690 55,833 Workf
Slide 23: Training
Training A proactive training policy to maintain employability Training challenges Key figures Adapting skills to future operational challenges Improve our ability to meet client expectations Boost employability 2022-2025 performance indicator targets: Increase number of hours’ training on “Innovati
Slide 24: Sopra Steria is a great place to work
Sopra Steria is a Diversity Diversity great place to work of employees responding to of employees responding to the 2023: fourth Great Place To Work the survey felt that “Staff are survey felt that “Staff are survey with all employees around the treated fairly irrespective of treated fairly irrespec
Slide 25: Governance & Compensation
Governance & Compensation 25 ESG presentation – March 2024
Slide 26: Separation of the roles of Chairman and CEO 1/2
Separation of the roles of Chairman and CEO 1/2 Board of Directors at 31/12/2023 Pierre Pasquier - Chairman 18 members 15 directors appointed by the General Meeting 3 directors representing employees including one Director representing employee shareholders Female Directors Male Directors Indepe
Slide 27: Separation of the roles of Chairman and CEO 2/2
Separation of the roles of Chairman and CEO 2/2 Executive Management team at 31/12/2023 Cyril Malargé - CEO The Group is made up of a corporate function and a number of operational divisions. The Executive Management team is supported by the Executive Committee (EXCOM) and the Management Committee.
Slide 28: Compensation of the Chief Executive Officer 1/3
Compensation of the Chief Executive Officer 1/3 In respect of financial year 2023 (decision of the Board on 21 February 2024) Fixed compensation: €500,000 Calculation of annual variable compensation: Potential Potential Amount Criteria Type amount as % of Threshold Target Achieved amount awarded AVC
Slide 29: Compensation of the Chief Executive Officer 2/3
Compensation of the Chief Executive Officer 2/3 Performance share award plan of 24 May 2023 Rights to shares granted in 2023: 3,000 3 performance criteria, allocated the same weighting, with a total of 90% Organic revenue growth, operating profit on business activity, free cash flow 1 corporate resp
Slide 30: Compensation of the Chief Executive Officer 3/3
Compensation of the Chief Executive Officer 3/3 In respect of financial year 2024 No changes were made to annual fixed compensation or the compensation policy Fixed compensation: €500,000 Annual variable compensation will again be structuredPotential as follows: amount as % Potential amount as % Cri
Slide 31: Information and cybersecurity system security and data privacy
Information and cybersecurity system security and data privacy 31 ESG presentation – March 2024
Slide 32: Information and cybersecurity system security
Information and cybersecurity system security A solid organisational structure coordinated at top Group level Audit Committee matters in 2022 presentation of updates to information system security measures Information Security Department Designes and rolls out information security policy Leads the s
Slide 33: Data Privacy
Data Privacy A global policy and a Group compliance programme The governance model provides for: A well-defined organisational structure with clear roles and responsibilities; The “Group Data Protection Compliance Programme”, including policies, procedures, tools and contractual instruments to be im
Slide 34: Annexes
Annexes 34 ESG presentation – March 2024
Slide 35: Progress towards meeting the long-term target of net-zero emissions
Progress towards meeting the long-term target of net-zero emissions Key milestones on the way to achieving SBTi’s long-term net-zero emissions targets 35 ESG presentation – March 2024
Slide 36: Summary of greenhouse gas emissions by scope
SUMMARY OF GREENHOUSE GAS EMISSIONS BY SCOPE 2015 2019 2021 2022 2023 Emissions Emissions Emissions Emissions Emissions Scope Category (tCO2e) % (tCO2e)3 % (tCO2e) % (tCO2e) % (tCO2e) Scope 1 (Offices and on-site Diesel, gas 2,237 0.79% 2,664 0.84% 2,526 0.59% 1,952 0.35% 1,216 data centres) Direct
Slide 37: Taxonomy – revenue indicator
TAXONOMY – revenue indicator At 31/12/2023 (Regulation (EU) 2020/852 of 18 June 2020) 2023 Substantial contribution criteria DNSH (Do No Significant Harm) criteria Proportion of Taxonomy- Economic activities Water and Water and “(Enabling “(Transitional Absolute Proportion of Climate change Climate
Slide 38: Taxonomy – CAPEX indicator
TAXONOMY – CAPEX indicator At 31/12/2023 (Regulation (EU) 2020/852 of 18 June 2020) 2023 Substantial contribution criteria DNSH (Do No Significant Harm) criteria Proportion of Taxonomy- aligned (A.1.) “(Enabling “(Transitiona Climate Climate Water and Biodiversity Climate Climate Water and Biodivers
Slide 39: Taxonomy – OPEX indicator
TAXONOMY – OPEX indicator At 31/12/2023 (Regulation (EU) 2020/852 of 18 June 2020) 2023 Substantial contribution criteria DNSH (Do No Significant Harm) criteria Proportion of Taxonomy- aligned (A.1.) “(Enabling “(Transitional Economic activities Climate Climate Water and Biodiversity Climate Climate
Slide 40: Our ESG assessments
Our ESG assessments Improvement in ESG scores with non-financial rating agencies Non-financial ratings agencies Agency rating scale Track record 2020 2021 2022 2023 7.4/10 7.9/10 7.6/10 7.9/10 MSCI ESG AAA to CCC AA since 2019 AA Leader AA Leader AA Leader AA Leader Sustainalytics ESG Negligible ris
Slide 41: Chief Executive Officer compensation
Changes in company1 performance and Chief Executive Officer compensation (1) The change in the Company’s performance, with the extent to which the quantifiable targets used to determine the Chief Executive Officer’s variable compensation (financial performance of the Company) have been met serving a
Slide 42: Information on company performance and compensation of the Chief Executive Officer
Information on company performance and compensation of the Chief Executive Officer Numerators of ratios The Chairman’s compensation corresponds to the amounts awarded as shown in the AFEP-MEDEF tables. Vincent Paris’ term of office as Chief Executive Officer ended on 28 February 2022. Cyril Malargé
Slide 43: 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