Slide 1: Analysts and investors Presentation
Analysts and investors Presentation 25 July 2024
Slide 2: Welcome
Welcome
Slide 3: Agenda
01 Introduction & governance changes AGENDA 02 H1 2024 results 03 H1 achievements and 2024 outlook 04 Questions & answers
Slide 4: The speakers
The speakers Jean-Louis Angel BOUCHARD BENGUIGUI Operational Chairman Chief Executive Officer
Slide 5: Introduction & governance changes
Introduction & governance changes Jean-Louis Bouchard Operational Chairman
Slide 6: Slide 6
Slide 7: H1 2024 results
H1 2024 results Angel Benguigui Chief Executive Officer
Slide 8: Growth in consolidated revenue over all businesses
Growth in consolidated revenue over all businesses Operating Margin driven by investments for the future Revenue Operating Margin Total growth(1) at 3.0% : €1,335 M €1,297 M • Driven by the 3 +3.0% business lines €42.7 M €38.3 M • In acceleration in Q2 vs. Q1.24 -€4.4 M Profitability rate at 2.9% sl
Slide 9: Products & Solutions
Products & Solutions Back to growth Revenue Operating Margin Rebound(1) in revenue at +1.1%, €584 M €591 M after four quarters of +1.1% declining revenue €15.5 M €14.4 M -€1.1 M Profitability rate at 2.4% (1) (1) H1 2023 H1 2024 H1 2023 H1 2024 1. For continuing operations on a constant basis Econoc
Slide 10: TMF
TMF Continued strong organic growth Revenue Operating Margin Continued success of Econocom tailored- €506 M made offerings with €476 M revenue up(1) 6.1%, +6.1% €17.1 M €14.6 M -€2.5 M Profitability rate at 2.9% including effects of investments (1) (1) H1 2023 H1 2024 H1 2023 H1 2024 1. For continui
Slide 11: Services
Services Moderate but steady growth Revenue Operating Margin Revenue growth(1) of 1.2% over H1 2024 despite flat market €239 M €237 M +1.2% €10.1 M €9.3 M -€0.8 M Stable profitability rate around 4% (1) (1) H1 2023 H1 2024 H1 2023 H1 2024 1. For continuing operations on a constant basis Econocom – 2
Slide 12: H1 2024 simplified income statement
H1 2024 simplified income statement (in € M) 06.23(1) 06.24 Revenue 1,297 1,335 Continued growth driven by all three businesses Ad hoc effects on operating margin due to costs for sales Operating margin 42.7 38.3 & agents recruitments, IT & security investments and factoring costs Operating profit 3
Slide 13: H1 2024 simplified income statement: Focus on EBITDA and EBIT
H1 2024 simplified income statement Focus on EBITDA(1) and EBIT(2) (in € M) 06.23(3) 06.24 Revenue 1,297 1,335 EBITDA(1) 57.8 58.3 EBIT(2) 40.2 37.0 Net profit 24.7 23.1 1. Operating margin adjusted for depreciation and amortization, additions to and reversals of provisions for asset impairment and
Slide 14: Strong decrease in Net Financial Debt
Strong decrease in Net Financial Debt(1) in € M -321 -180 NFD(1) on 30 June 2024 +108 down €141 M, thanks to : -19 • Les Abeilles sale and -28 -8 +88 • a strong Free Cash-Flow at +88 €88 M over the last 12 months NFD(1) Share Repayment of NFD(1) Free cash flow M&A Others 30.06.2023 buybacks share pr
Slide 15: Breakdown of Net Financial Debt
Breakdown of Net Financial Debt(1) Net Cash = €215 M (in € M) 261 -46 -118 -201 Off balance sheet -180 factoring and reverse factoring of €210 M as of 30 June 2024 -76 (vs. €192 M as of 30 June 2023) Cash at Short term TMF Recourse Other corporate NFD(1) Bonds 30.06.2024 30.06.2024 debt financing fi
Slide 16: Best H1 Net Financial Debt over the last ten years
Best H1 Net Financial Debt(1) over the last ten years Net Financial Debt(1) (in € M) 450 400 350 300 250 200 150 100 50 251 285 204 395 405 303 217 272 321 180 0 30-06-15 30-06-16 30-06-17 30-06-18 30-06-19 30-06-20 30-06-21 30-06-22 30-06-23 30-06-24 1. NFD: Net Financial Debt for continued activit
Slide 17: Significant improvement in ESG indicators
Significant improvement in ESG indicators On track with One econocom plan trajectory +2 pts. SBTi 2024 Ecovadis rating validation in June 2024 at 72/100 vs. 70/100 in of carbon footprint 2023 reduction targets Econocom – 2024 half year results 17
Slide 18: Significant improvement in ESG indicators
Significant improvement in ESG indicators +8 pts. +4 pts. gender equality index in Since 2017, progression France is 94/100 vs 86/100 from 2% to 6% 2023 rate in previous year of disabilities in France (+1pt. vs last year) Econocom – 2024 half year results 18
Slide 19: H1 achievements and 2024 outlooks
H1 achievements and 2024 outlooks Angel Benguigui Chief Executive Officer
Slide 20: 2024 targets - reminder
2024 targets - reminder First year of Accelerate Total increase in plan recruitments in key revenue regions Divest non-core Deploy new and 3%-5% activities as planned integrated offerings Seize acquisitions opportunities Econocom – 2024 half year results 20
Slide 21: Divest non-core activities: Sale of Les Abeilles
Divest non-core activities Sale of Les Abeilles • Sale finalized early June as expected • Net impact on NFD of €108 M (vs. 30/06/23) • Financing already half of the external growth ambition of the 2024-2028 One econocom strategic plan Econocom – 2024 half year results 21
Slide 22: Accelerate recruitments in key regions
Accelerate recruitments in key regions Sales force strengthening in progress A multiple sourcing plan… …with concrete results at the end of June Effective recruitments as of the end of June 2024 - 28 new sales - 16 new agents Number of applications • Communication campaign "JUMP" launched in April •
Slide 23: Strategic plan execution: Long Term Incentive project
Strategic plan execution Long Term Incentive project An incentive Plan • Main key Targets based designed to executive on performance encourage the leaders all criteria in share value over the plan relation with expected from financial the One • Value sharing objectives of econocom plan the strategic
Slide 24: 2024 guidance confirmed, new guidance on Net Financial Debt
2024 guidance New guidance on confirmed Net Financial Debt Revenue(1) increase NFD(2) close to 0 of 3-5% within the next 12 months not including investments in new acquisitions (1) For continuing operations on a constant basis Econocom – 2024 half year results 24 (2) NFD: Net Financial Debt for cont
Slide 25: Appendices
Appendices CE COMOCOTT)
Slide 26: Simplified income statement
Simplified income statement (In € M) 06.2024 06.2023(1) Revenue 1,335.4 1,296.7 Operating margin 38.3 42.7 Depreciation of acquisition-related intangible assets -1.5 -1.3 Other operating income and expenses -4.1 -4.4 Operating profit 32.6 37.0 Other financial income and expenses -5.9 -8.6 Profit bef
Slide 27: Simplified balance sheet
Simplified balance sheet ASSETS (in € M) 30.06.2024 31.12.2023 EQUITY & LIABILITIES (in € M) 30.06.2024 31.12.2023 Goodwill 525 525 Equity 466 475 Other long-term assets 204 202 Net Financial Debt 180 181 Assets related to leasing activities 382 373 Commitments on residual value 113 107 Residual int
Slide 28: NFD bridge
NFD bridge -321 -180 150 100 Free Cash Flow = €88 M 50 108 -67 -143 0 65 -34 -19 125 -7 -22 -28 -50 -19 -8 -20 -100 -150 Payments Non- Financial -200 NFD(1) 30.06.2023 Operating cashflow Operating lease contracts TMF Investment WCR Expenses & CAPEX M&A(2) Share buybacks Dividend Others NFD(1) 30.06.
Slide 29: Contacts
Contacts Investor and shareholder Financial Group relations communication communication eric.bazile@econocom.com info@capvalue.fr groupeeconocom@havas.com Econocom – Résultats annuels 2022