Slide 1: Oddo BHF Forum 2020
Oddo BHF Forum 2020 Investor presentation January 9th & 10th , 2020
Slide 2: Highlights, Latest Results, Outlook
01 Highlights 02 Latest Results 03 Outlook
Slide 3: Your contacts at Econocom
Your contacts at Econocom JEAN-LOUIS BOUCHARD Chairman & CEO ANGEL BENGUIGUI Group Finance Director ARTHUR ROZEN Company Secretary 2020 Oddo BHF Forum 2019 Half-Year Results 2
Slide 4: Highlights
01 Highlights
Slide 5: Econocom at a glance
Econocom at a glance Actively Econocom: a unique business Independent supporting model that benefits its clients and agnostic young digital Econocom is the only player on the entrepreneurs digital transformation market that A strong combines technological expertise with Innovative, commitment financ
Slide 6: A leading player in digital services in Europe
Econocom, 360° expert in digital transformation ÀMàJ A leading player in digital services in Europe High end consulting in digital transformation Design of complex solutions Transform Implementation of projects of any size Financing of technology (IT & non-IT) 2020 Oddo BHF Forum 5
Slide 7: Technology Management & Financing: the driving force of Econocom growth
Technology Management & Financing (TM&F) : the driving force of Econocom growth Fast-track the ÀMàJ completion of digital projects Meet the financial and 45% (connected devices, mobility, operational constraints of the of H1 business hardware, IT & players (CFOs, CIOs) and multimedia, industry Reven
Slide 8: Digital Services and Solutions: the expertise of Econocom
Digital Services and Solutions (DSS) : the expertise of À Econocom MàJ workforce User- and use-oriented Operational excellence for Large scale and capacity to approach tomorrow’s growth manage international projects 55% of H1 Revenue is the preferred partner for the digital transformation of compani
Slide 9: 2019 gives a new impetus to Econocom…
2019 gives a new impetus to Econocom… BUSINESS Refocus activity Improve Keep debt OBJECTIVES on core business operating margin under control Focus on TMF core Turn around plans for Closely monitor historic business as loss making units working capital well as DSS in synergy Focus on most Use wisely
Slide 10: … while maintaining a strong commercial and entrepreneurial culture
… while maintaining a strong commercial and entrepreneurial culture Client Strong Successes Partnerships 2020 Oddo BHF Forum 9
Slide 11: Digital transformation of point of sales of a leading car manufacturer
CLIENT Digital transformation of point of sales SUCCESS of a leading car manufacturer #1 TARGET A capability to develop in the very large multi-site accounts Transforming and digitalizing dealerships of a leading car ACHIEVEMENT manufacturer around Europe 3 years (plus 2 possible) project lifespan 1
Slide 12: Financing a leading international technology integrator equipment needs
CLIENT Financing a leading international technology SUCCESS integrator equipment needs #2 Finance a huge value of equipment in numerous countries TARGET Finance 200,000 Assets, for 300+ end customers in Europe, Americas and APAC Capacity of managing large deals in partnership within regions where Ec
Slide 13: GRAND EST: 300 colleges equipped
CLIENT GRAND EST: 300 colleges equipped SUCCESS #3 Equip colleges of the “Grand Est” French region with laptops TARGET Replace printed books by digital ones More than 300 colleges equipped ACHIEVEMENT Allow gratuity for end user by selecting an ad hoc vendor for a dedicated product configuration 114
Slide 14: Lenovo Platinium Partner benefits
PARTNERSHIP PLATINIUM PARTNER 2019-2020 Benefits Enable deal winning Strengthen digital image Reward staff commitment Highest certification at Lenovo Only 4 Platinium partners in France 2020 Oddo BHF Forum 13
Slide 15: Latest financial results
02 Latest financial results
Slide 16: Key figures H1 2019
Key figures H1 2019 Net Cash flow from Revenue(1) ROP(1)(3) Net financial debt(2) operating activities(1) €1.24 Bn €40 M €405 M €61 M +2.9% 3.2% 2.5x +€20 M (2) (2) margin EBITDA 12M vs. H1 2018 +1.6% 0.9 organic GEARING (1) From ongoing operations after restatement according to IFRS 5 regarding ass
Slide 17: Moderate growth in Group revenue, improved profitability
Moderate growth in Group revenue Improved profitability Revenue from ongoing operations(1)(3) Modest organic growth +1.6% H1 2019 €1,238 M + 2.9% H1 2018 €1,203 M Margin of 3.2% on revenue from ongoing operations. ROP up 17.2% vs. H1 2018 Company strategy refocused on historical business, Recurring
Slide 18: Revenue bridge
Revenue bridge According to IFRS 5, H1 2019 revenue generated by assets held for sale and discontinued operations were deconsolidated. €86 M €89 M H1 2018 numbers were restated. €30 M On the contrary, H1 2018 numbers were not restated after the €1,203 M + €1,238 M introduction of IFRS 16 as of +2.9%
Slide 19: Revenue by geographical area
Revenue by geographical area H1 2019 revenue(1) (%) North America North & East Europe 3% 8% Stronghold and scale in France (+8%) France and Benelux (+7%) South Europe 51% Solid performance in South 24% Total Europe (+4%) despite €1.2 Bn embezzlement discovered in Italy end of June Benelux 14% (1) Fr
Slide 20: TMF at a glance
TMF at a glance Slight decrease in revenue Revenue from ongoing operations(1)(3) €561 M (-3.9%) H1 2019 €561 M - 3.9% Refinanced business revenue H1 2018 €584 M suffered from lag primarily in Italy EDFL contributes less to revenue in H1 2019 €47 M (vs. €59 M in H1 2018) Recurring operating profit(1)
Slide 21: Technology Management & Financing
Technology Management & Financing Contract portfolio Stability of portfolio €6.0 Bn at original purchasing price (flat) Residual interest(1) €2.8 Bn 2.7% of the Original Purchase Price >2x covered by remarketing of assets and contract €0.16 Bn extensions Outstandings Original Residual interest (1) p
Slide 22: Digital Services & Solutions at a glance
Digital Services & Solutions at a glance Revenue from ongoing operations(1) H1 2019 €677 M + Continuing sustained growth 9.3% H1 2018 €620 M Major regions contributed to the dynamism of the activity ROP boosted by: • Growth in revenue Recurring operating profit(1)(2) • Dynamism in France H1 2019 €24
Slide 23: Consolidated income statement
Consolidated income statement (In €M) H1 2018(1) H1 2019 Revenue 1,232 1,238 Recurring operating profit before amortisation of intangible assets 34.4 40.2 from acquisitions Net non-recurring Recurring operating profit 32.3 39.2 expenses of €13.7 M Non-recurring operating incomes and expenses -14.2 -
Slide 24: FCF generation
Negative cash flow FCF generation generation due to… In €M FCF = -€116 M H1 2019 • €139 M WCR outflow due -252 -405 primarily to the seasonal nature of the business and to delay +61 in refinancing deals -139 in Italy and some delay in cash collection Net Operating -28 NFD (1) Cash flow -10 -25 • €15
Slide 25: Structure of Net Financial Debt
Structure of Net Financial Debt(1) In €M 136 -97 NFD under control: • €405 M -187 (2.5x EBITDA) -405 • €252 M of which 0 backed by lease Net Contracts contracts cash and receivables refinanced -101 with recourse -41 Net cash impacted OCEANE by minority stakes -150 in satellites being -39 bought back
Slide 26: Simplified consolidated balance sheet
Simplified consolidated balance sheet ASSETS (IN €M) 31/12/2018 30/06/2019(1) EQUITY & LIABILITIES (IN €M) 31/12/2018 30/06/2019(1) Goodwill 631 539 Equity 491 451 Residual interest in leased assets 122 124 Commitments on residual value 73 73 Other non-current assets 209 256 Other non-current liabil
Slide 27: Q3 Revenue YTD
Q3 Revenue YTD Revenue from ongoing operations(1) Growth in revenue from 3Q 2019 €1,826 M + continuing operations up 2.6%, 2.6% including 1.6% organically 3Q 2018 €1,780 M Without the negative impact of Of which TM&F embezzlement in Italy for €70 M, + 3Q 2019 proforma(2) €858 M 3.0% TM&F would have
Slide 28: Outlook
03 Outlook
Slide 29: Transformation plan is under way
Transformation plan is under way Specify vision and strategy Cut costs Transform Upgrade professional practices Attract, develop and retain talented people 2020 Oddo BHF Forum 28
Slide 30: Cost reduction program: Magnitude and Timeline
Cost reduction program: Magnitude and Timeline Cost Base 2018 Cost Base - 2021 -€96.5 M Implementation periods 2019-2020 2020 Oddo BHF Forum 29
Slide 31: Cost reduction plan
Cost reduction plan 2019 on track September 2019 : global cost 2019 announced €20 M freeze 2019 already committed €24 M 2020 “Zero Based Budget” approach 2019 ambition >€24 M Plan announced with top and mid-management onboarded Ad hoc transformation office 2020 Oddo BHF Forum 30
Slide 32: Outlook
Outlook 2019 ROP Ambitious cost confirmed at €128 M reduction program Continued discipline Disposal of in cash generation non-core businesses 2020 Oddo BHF Forum 31
Slide 33: Thank you
Thank you Investor relations: Press relations: Arthur.rozen@econocom.com info@capvalue.fr Tel. +33 1 80 81 50 00
Slide 34: Stock Exchange
Stock Exchange Equity table Number of shares: • 245,380,430 Treasury Stocks Share price(1): 9.5% • 2.43€ Holding companies held by Mr. Bouchard Listing place: Free float 36.4% • Euronext Brussels 54.1% Market Cap • EBR: ECONB €596 M • ISIN: BE0974313455 Stock Indexes: • Bel Mid and Family Business (
Slide 35: CE COMOCOFTT)
CE COMOCOFTT)