Sopra Steria Group Sa · EURONEXT:SOP
Sopra Steria Group Sa — Sopra Group — H1 2012 Earnings Presentation
30 slides from Sopra Steria Group Sa's earnings presentation, Aug 2, 2012
Slide 1: Half-year results presentation
Half-year results presentation 2 August 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: Meeting agenda
Meeting agenda Key figures for the period Complementary information on business activity Transformation, strategy and outlook 3
Slide 4: Performance for first half 2012
Performance for first half 2012 590 288 302 Revenue (€m) Profit from business activity (€m) 47 Q1 Q2 H1 2012 Total growth +10% +13% +11% Organic growth +4% -2% +1% Profit margin on business activity 8.1% 4
Slide 5: Income statement: key elements
Income statement: key elements H1 2012 H1 2012 H1 2011 (€m) (%) (%) Revenue 589.6 Operating profit on business activity 47.6 8.1% 8.1% Profit from recurring operations 45.2 7.7% 8.0% Operating profit (EBIT) 38.4 6.5% 10.2% Net profit - Group share 20.5 3.5% 6.9% 5
Slide 6: Performance by region
Performance by region Revenue Margin Margin Organic H1 2012 H1 2012 H1 2011 growth (€m) (%) (%) (%) United Kingdom 47.6 8.2% 1.3% -2.7% Spain 38.4 4.4% 4.7% 5.8% Italy 19.7 2.0% 4.0% 13.2% Benelux 5.1 0.0% -5.0% 23.9% Switzerland 5.7 14.0% 19.3% -5.0% Total Europe (excl. France) 116.4 5.8% 3.9% 3.3%
Slide 7: Key balance sheet items
Key balance sheet items 30/06 31/12 Change 2012 2011 2012/2011 (€m) (€m) (%) Goodwill 313.8 190.9 Equity accounted investments 109.6 109.4 Trade accounts receivable (net) 392.0 345.0 13.6% Equity 273.4 273.9 -0.2% Net financial debt 281.3 46.4 506.3% Net bank debt* 215.5 20.0 * Excluding debt for em
Slide 8: Changes to shareholders' equity
Changes to shareholders’ equity 273.9 273.4 Situation Résultat de Situation at l’exercice at 31/12/11 30/06/12 20.6 Dividend Other In €m payment 3.0 movements Profit for the Translation adjustments -1.5 period -22.6 8
Slide 9: Changes to net debt (1/2)
Changes to net debt (1/2) H1 2012 H1 2011 (€m) (€m) Net debt at beginning of period (A) 46.4 57.2 Gross cash flow from operations before net financial 45.5 46.6 debt and tax Tax paid -29.3 -19.0 Changes in working capital requirements* -37.9 -25.7 Net cash flow from operations -21.7 1.9 Change relat
Slide 10: Changes to net debt (2/2)
Changes to net debt (2/2) H1 2012 H1 2011 (€m) (€m) Financial investments -0.4 - Dividends paid -22.5 -56.1 Dividends received from equity-accounted companies 1.3 - Capital increases in cash - 1.1 Other changes -0.4 -0.3 Net cash flow relating to discontinued operations - 12.6 Net cash flow (B) -234
Slide 11: Revenue breakdown
Revenue breakdown Business Activities Regions Consulting Europe & ROW Software 5% 18% 30% 70% 77% France IT Services 11
Slide 12: Revenue breakdown and personnel count
Revenue breakdown and personnel count Market Segments Personnel Retail 14,170 Telecom Financial Total & Medias Services 6% +1560 11% 31% hors 9,410 France France France Manufacturing 16% Total +490 4,760 excl. 16% 20% France Public Sector Services, +1070 Transport & Utilities June 2012 12
Slide 13: Meeting agenda
Meeting agenda Key figures for the period Complementary information on business activity Transformation, strategy and outlook 13
Slide 14: Performance in France
Performance in France Growth outstripping market Performance varies according to sectors and clients Slowdown in financial services Cautious behaviour in the public sector Healthy demand and growth in Aerospace Utilities Transportation 14
Slide 15: Performance in Europe
Performance in Europe United Kingdom Integration process under way Robust margin improvement in H1 (+6.9 points) Spain and Italy Solid growth despite weak local economies Margin stability Belgium, Switzerland and Germany 15
Slide 16: Top-priority initiatives, serving strategic objectives
Top-priority initiatives, serving strategic objectives Recent acquisitions Create banking solutions subsidiary Align offerings of European subsidiaries Align Sopra Consulting with Group priorities Industrialisation and innovation 16
Slide 17: Recent acquisitions
Recent acquisitions 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 Callataÿ & Wouters Bankin
Slide 18: Top-priority initiatives, serving strategic objectives
Top-priority initiatives, serving strategic objectives Recent acquisitions Create banking solutions subsidiary Align offerings of European subsidiaries Align Sopra Consulting with Group priorities Industrialisation and innovation 18
Slide 19: Focus on "Sopra Banking Software"
Focus on “Sopra Banking Software” Objective: create a leading software developer specialised in application solutions for the financial services market 2011 pro forma revenue approximately €220m (including Tieto UK) More detailed information on performance will be reported with full year resul
Slide 20: Top-priority initiatives, serving strategic objectives
Top-priority initiatives, serving strategic objectives Recent acquisitions Create banking solutions subsidiary Align offerings of European subsidiaries Align Sopra Consulting with Group priorities Industrialisation and innovation 20
Slide 21: Focus on Europe
Focus on Europe Growth strategy to expand Group presence in major European countries Align offerings of European subsidiaries Market consolidation United Kingdom: two acquisitions made in H1 Spain Germany Italy 21
Slide 22: Top-priority initiatives, serving strategic objectives
Top-priority initiatives, serving strategic objectives Recent acquisitions Create banking solutions subsidiary Align offerings of European subsidiaries Align Sopra Consulting with Group priorities Industrialisation and innovation 22
Slide 23: Top-priority initiatives, serving strategic objectives
Top-priority initiatives, serving strategic objectives Recent acquisitions Create banking solutions subsidiary Align offerings of European subsidiaries Align Sopra Consulting with Group priorities Industrialisation and innovation 23
Slide 24: Industrialisation and innovation
Industrialisation and innovation Industrialisation Tailor-made Global Delivery Model Constant evolution of HR Nearshore: covered by regional centres in France Offshore: growth adapted to our positioning For the francophone market : covered by our centres in Spain In India Innovation
Slide 25: Meeting agenda
Meeting agenda Key figures for the period Complementary information on business activity Transformation, strategy and outlook 25
Slide 26: 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 27: Governance transformation
Governance transformation Separation of Chairman and CEO roles Chairman responsible for strategy CEO responsible for daily operational performance Transmission anticipated, demanding close coordination and shared decision making 27
Slide 28: Enterprise transformation
Enterprise transformation Building on existing savoir-faire, development of three high added value business lines Consulting IT Services Software Geographies France Europe World Financial Services Public Sector Manufacturing Banking Business segments Retail Human Resources Telecoms & Medias Real E
Slide 29: 2012 outlook confirmed
2012 outlook confirmed Slight growth in revenue despite a tough economic context and a challenging comparison basis Very slight improvement in margins, provided the market context does not deteriorate at the end of the year Year-end debt estimations Net debt of around €220m Net bank debt o
Slide 30: Questions
Questions