Slide 1: Results
RESULTS
Slide 2: Key Facts & Figures, Financial Results, Action Plan, Outlook
KEY FACTS H1 2018 ACTION OUTLOOK & FIGURES FINANCIAL PLAN RESULTS
Slide 3: Key Facts & Figures
KEY FACTS & FIGURES Robert Bouchard CEO
Slide 4: New Governance
NEW GOVERNANCE Management Committee Robert Martine David Julie Bruno Bouchard Bayens Krieff Verlingue Grossi Executive Committee + Extended Management Committee Angel Laurent Enrico Bruno Philippe Eric Laurent Louise Benguigui Caparros Tantussi Ronsse Goullioud Lucas Roudil Beveridge
Slide 5: H1 2018: Key Figures
H1 2018: KEY FIGURES REVENUE ROP(1) NET FINANCIAL DEBT €1,319 M €34 M €395 M +12.8% vs. €58 M 2.4x EBITDA in H1 17 12 months 3.8% organic (1) Recurring Operating Profit, before amortisation of intangible assets from acquisitions H1 2018 Results 4
Slide 6: H1 2018 Financial Results
H1 2018 FINANCIAL RESULTS David Krieff Executive Director Finance
Slide 7: Steady Revenue Growth
STEADY REVENUE GROWTH Technology Management & Financing H1 2017 €604 M +1.8% +12.8% H1 2018 €614 M organic ow +3.8% Services organic H1 2017 €424 M +19.4% H1 2018 €506 M 4.8% organic Products & Solutions H1 2017 €1,169 M H1 2017 €141 M +40.7% H1 2018 €1,319 M H1 2018 €198 M +6.7% organic H1 2018 Res
Slide 8: ROP Impacted by TM&F Contribution and Provisions
ROP IMPACTED BY TM&F CONTRIBUTION AND PROVISIONS Technology Management & Financing H1 2017 €38.1 M H1 2018 €14.1 M H1 2017 €58.1 M Services H1 2017 €14.6 M H1 2018 €34.2 M H1 2018 €15.0 M Products & Solutions H1 2017 €5.5M H1 2018 €5.1 M H1 2018 Results 7
Slide 9: Technology Management & Financing
TECHNOLOGY MANAGEMENT & FINANCING Revenue at €614 M (+1.8%) – rebound CONTRACT PORTFOLIO (AS OF 30 JUNE 2018) only late in H1 (+9% in Q2) after a strong Q4 2017 (+28%) €5.9 Bn ROP at €14.1 M including €9 M of provisions Fewer large profitable deals (structured €2.6 Bn finance) and increased weight o
Slide 10: Strong Historical Organic Growth with Quarterly Volatility (TMF)
STRONG HISTORICAL ORGANIC GROWTH WITH QUARTERLY VOLATILITY (TMF) 28% +10% +9% 18% +10% +2% 1,379 +2% 12% 13% 1,259 9% 8% 10% 1,149 8% 1,028 1,045 6% 1,003 5% 3% 1% -6% -7% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 15 15 15 15 16 16 16 16 17 17 17 17 18 18 Quarterly revenue growth Trailing 12 months
Slide 11: Services
SERVICES Revenue(1) Organic revenue growth on the Planet H1 2017 €424 M (+1%) accelerated by contribution from +19.4% Services satellites of +11% organically 4.8% organic H1 2018 €506 M Acceleration of the transformation plan Recurring operating profit(2) in France on the Planet, non-recurring expen
Slide 12: Products & Solutions
PRODUCTS & SOLUTIONS Revenue(1) Continued strong organic growth on already high comps (+9% in H1 2017) H1 2017 €141 M +40.7% +6.7% organic H1 2018 €198 M Market share gains, notably in the public sector (education) and asset Recurring operating profit(2) diversification (multimedia) H1 2017 €5.5 M H
Slide 13: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT H1 2017(1) H1 2018 (In €M) CHANGE adjusted REVENUE 1,169 1,319 12.8% RECURRING OPERATING PROFIT(2) before amortisation of intangible assets from acquisitions 58.2 34.2 -41.2% Non-recurring items relate Recurring operating profit 56.1 32.1 -42.7% to the new strategic pla
Slide 14: Financial Debt Showed the Usual Seasonality
FINANCIAL DEBT SHOWED THE USUAL SEASONALITY NBD NBD 31/12/2017 30/06/2018 -€279 M -€395 M Strong WCR management: €52 M outflow in H1 18 vs €106 M in H1 2017 Cash flow 133 from operating activities -19 44 Continued investments: Non- recurring -53 €32 M in M&A and CAPEX items(1) Investments €53 M in T
Slide 15: Net Financial Debt Under Control
NET FINANCIAL DEBT UNDER CONTROL Gross Net debt under control: cash 2.4x EBITDA LTM 154 OCEANE bonds issued -108 in March 2018 (€200 M, Net debt ow €17 M as equity) Contracts and receivables -395 refinanced with recourse €260 M of debt backed -150 by client leases Schuldschein -101 €230 M undrawn cr
Slide 16: Action Plan
ACTION PLAN Robert Bouchard CEO
Slide 17: Action Plan
Cash and financing management #2 Focus on Group efficiency Services in France measures #1 #3 ACTION PLAN #6 #4 TMF growth M&A relays #5 New offers H1 2018 Results 16
Slide 18: Group Efficiency Measures
#1 GROUP EFFICIENCY MEASURES GROUP LEVEL BUSINESS UNITS Review of central costs Business transformation in Services Consolidation of structures now included in business units (IoT, robotics, BOS) Local overheads optimization Projects reviews c.€3.5 M gross savings in H2 18 c.€6.5 M gross savings in
Slide 19: Cash Management Initiatives
#2 CASH MANAGEMENT INITIATIVES SHORT TERM MEDIUM TERM ACTIONS ACTIONS New monitoring tools Reassessment of payments WORKING CAPITAL Best practices implementation and contractual provisions REQUIREMENT (stock financing, prepayments...) target reduction in WCR in FY18 Internal cost charged for WCR E
Slide 20: Focus on Services in France
#3 FOCUS ON SERVICES IN FRANCE 1 management Laurent Roudil 3 businesses Managed Business Application Services Continuity Engineering ~ €450 M >2% ROP 5,500 people revenue in 2017 margin H1 2018 Results 19
Slide 21: Business Transformation Accelerated Since Q1 2018
#3 BUSINESS TRANSFORMATION ACCELERATED SINCE Q1 2018 Sharing between the 3 business lines Service Centers delivery BUSINESS Renewed offers TRANSFOR- MATION Contracts management Mid market focus Cost reduction H1 2018 Results 20
Slide 22: TMF Growth Sources 2018 - 2022
#4 TMF GROWTH SOURCES 2018 - 2022 TMF "STANDALONE" Enlarge scope of expertise MarS, insurance, (vertical integration) second-hand Extend client Medical, Green, Industrial portfolio & Robotics Position the financial capacities Indirect sales of TMF on digital transformation & Vendor program Improve c
Slide 23: TMF Growth Sources 2018 - 2022
#4 TMF GROWTH SOURCES 2018 - 2022 TMF CONTRIBUTION TO GROUP STRATEGY Financing vehicle Satellites for the sales of the Galaxy and partners Cornerstone Financial architect of Econocom of "end to end solutions" value proposition Operational and business Processes and back office, convergence with deve
Slide 24: Investment in End-to-End Solutions - Industry and Technology Based
#5 INVESTMENT IN END-TO-END SOLUTIONS - INDUSTRY AND TECHNOLOGY BASED All offers combine entities from the Planet and Satellites LAUNCHED! Microsoft Apple MarS Econocom Mobility Education Healthcare IN PROGRESS Econocom Retail Smart Workplace OneGate Building GDPR Security
Slide 25: M&A: An Integral Part of the Strategy
#6 M&A: AN INTEGRAL PART OF THE STRATEGY #1 DEPLOY “ ONE GALAXY” ACROSS EUROPE Jade BIS (H2 17) (H1 17) Energynet #2 (H2 17) INVEST IN HIGH VALUE Aciernet (H2 17) SEGMENTS BDF Altabox (H1 18) ~ €250 M proforma revenue (H1 18) acquired over 18 months H1 2018 Results 24
Slide 26: Outlook for 2018
OUTLOOK FOR 2018 O4
Slide 27: 2018: Confirming Our Revised Guidance
2018: CONFIRMING OUR REVISED GUIDANCE Absolute priority Additional actions to deliver H2 18 at group level contribution to reduce costs €120 M in recurring operating profit(1) Building the Focus on foundation of cash generation future profitable growth (1) Before amortisation of intangible assets fr
Slide 28: Appendices
Appendices OS
Slide 29: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET ASSETS (IN €M) 31/12/2017 30/06/2018 EQUITY & LIABILITIES (IN €M) 31/12/2017 30/06/2018 Goodwill 599 625 Equity attributable to owners of the parent 378 354 Residual interest in leased assets 106 112 Non-controlling interests 102 117 Other non-current assets 192 203 EQUITY