Sopra Steria Group Sa · EURONEXT:SOP
Sopra Steria Group Sa — Sopra Group — H1 2007 Earnings Presentation
15 slides from Sopra Steria Group Sa's earnings presentation, Aug 30, 2007
Slide 1: Half Year 2007 Results Presentation
TALENTED TOGETHER Half Year 2007 Results Presentation 30 August 2007 Half Year Results Presentation / 30 August 2007 1 Group revenue (M€) 483.3 443.0 Growth: H1 Q2 22.7 Total +9.1% +11.2% 21.4 Organic +7.5% +9.0% Organic growth: H1 Q2 288.4 267.9 Consulting +6.1% +14.4% SSI* France +7.7% +8.3% SSI*
Slide 2: Income statement and profit by business line
Income statement First Half First Half Change 2007 2006 (%) €m % €m % Revenue 483.3 100% 443.0 100% + 9.1% Staff costs - Employees -324.7 -295.4 + 9.9% + 9.6% Staff costs - Contractors -37.5 -35.0 + 7.1% Operating expenses -79.8 -76.6 + 4.2% Depreciation and provisions -6.8 -6.2 + 9.7% Profit from r
Slide 3: Balance sheet and shareholder equity
Balance sheet 30/06 30/06 31/12 M€ 2007 2006 2006 Goodwill 297.2 272.8 278.6 Other assets 37.0 35.5 37.6 Other assets and liabilities 57.8 31.5 15.7 Assets 392.0 339.8 331.9 Shareholders' Equity (Group share) 221.6 190.5 216.2 Provisions 21.5 14.2 18.0 Net debt 148.9 135.1 97.7 Capital invested 392.
Slide 4: Variation of net debt and financial ratios
Variation of net debt 30/06 30/06 31/12 M€ 2007 2006 2006 Net debt at opening (A) 97.7 128.7 128.7 Gross cash flow from operations before net financial 40.8 35.1 87.2 debt and tax Tax paid - 22.8 3.6 - 1.3 Changes in working capital requirements - 8.4 2.5 4.4 Net cash flow from operations 9.6 41.2 9
Slide 5: Group employees and revenue by activity
Group employees (ex. contractors) 10760 9910 9100 7360 6550 6750 ex. France France Group 3160 3400 2550 31 Dec. 2005 31 Dec. 2006 30 June 2007 Half Year Results Presentation / 30 August 2007 9 Group revenue by activity (%) Consulting Orga Sopra Integration Axway Projects 5% 6% 14% 14% Proprietary So
Slide 6: Group revenue by vertical market and zone
Group revenue by vertical market (%) Retail Banking Public Sector Financial 6% 23% Services 14% 31% Telecoms 13% 8% Insurance 15% 21% Services & Manufacturing Utilities Half Year Results Presentation / 30 August 2007 11 Group revenue by zone (%) ex. France 33% 67% France Half Year Results Presentati
Slide 7: ISS Europe revenue and Axway continues to grow
ISS Europe revenue (%) Revenue H1 2007: 104.4 M€ Benelux Switzerland 5% Italy 4% 11% United Kingdom 40% Spain 40% Half Year Results Presentation / 30 August 2007 13 Axway continues to grow Strong revenue growth confirmed Revenue H1 2007: 67.8 M€ H1 in line: +27.4% total and +14.5% organic growth 2 m
Slide 8: Comments and outlook: market context update
TALENTED TOGETHER Comments and outlook Half Year Results Presentation / 30 August 2007 15 Market context - update Buoyant market conditions sustained by strong demand Arrival of new competitors maintains pricing pressure and encourages: Innovation Industrialisation Outsourcing remains a major theme
Slide 9: Group objectives for 2007 and follow-up on priorities
Group objectives for 2007 - update Priorities Position future management Reinforce Consulting business Transform the core-business approach Industrialisation on/off shore (France – Spain – Morocco – Romania – India) Large accounts and offering strategies Pursue ambitious strategy for Group “banking
Slide 10: Large accounts and offering programmes; industrialisation and offshore
Large accounts and Offering Programmes “Large accounts” Programme Undergoing testing with some of our largest accounts Put in place for over 50% of revenue by end 2007, for all business lines and geographies Objective: accelerate internal growth “Offering” Programme “Core business” offerings re-laun
Slide 11: Management and 2010 project preparation; outlook
Management and 2010 Project preparation Priority on management renewal New managers in place for 2007-2008 At the top level as well as at the n-2 level Building on company culture Growth superior to market growth Strong technology and ability to successfully roll out complex projects Respect for oth
Slide 12: Thank you
TALENTED TOGETHER Thank you Half Year Results Presentation / 30 August 2007 23 TALENTED TOGETHER Appendices Half Year Results Presentation / 30 August 2007 24 Half Year Results Presentation / 30 August 2007 / p 12
Slide 13: Income statement and profit by business line (2006)
Income statement 31/12 31/12 Variation 2006 2005 (%) M€ % M€ % Revenue 897.7 100% 757.0 100% + 18.6% Staff costs - Employees -582.6 -502.0 + 16.1% + 17.1% Staff costs - Contractors -71.0 -56.3 + 26.1% Operating expenses -156.3 -130.6 + 19.7% Depreciation and provisions -12.8 -12.0 + 6.7% Operating p
Slide 14: Balance sheet and shareholder equity (2006)
Balance sheet 31/12 31/12 M€ 2006 2005 Goodwill 278.6 242.2 Other assets 37.6 35.3 Other assets and liabilities 15.7 50.7 Assets 331.9 328.2 Shareholders' Equity (Group share) 216.2 185.3 Provisions 18.0 14.2 Net debt 97.7 128.7 Capital invested 331.9 328.2 Half Year Results Presentation / 30 August
Slide 15: Variation of net debt (2006)
Variation of net debt 31/12 31/12 M€ 2006 2005 Net debt at opening (A) 128.7 58.9 Gross cash flow from operations before net financial 88.6 66.6 debt and tax Tax paid - 1.3 - 14.2 Changes in working capital requirements 3.0 - 1.3 Net cash flow from operations 90.3 51.1 Capital expenditures - 13.1 -