Slide 1: 2018 full-year results
2018 full-year results CECONOCOrT)
Slide 2: Message from Chairman & CEO, FY 2018 Results, Business drivers, Outlook
01 Message from Chairman & CEO 02 FY 2018 Results 03 Business drivers 04 Outlook
Slide 3: CE COMOCOFT)
CE COMOCOFT)
Slide 4: Financial results on FY 2018
on FY 2018 ~ financial results
Slide 5: Key figures
Key figures Revenue ROP Net debt Free cash flow €2.85 Bn €115 M €252 M €70 M +8.0% 4.0% 1.6x 60% margin EBITDA 2018 of ROP +2.7% organic 2018 Full-Year Results 4
Slide 6: Sustained growth in Group revenue
Sustained growth in Group revenue Revenue (IFRS15) 2018 €2,846 M + 8% Sustained organic growth 2017 €2,634 M +2.7% Margin of 4.0% on revenue A contrasted year for our Technology Management Recurring operating profit(1) & Financing activity (TMF) 2018 €114.6 M 2017 €154.4 M 2018 Full-Year Results 5
Slide 7: TMF: Favouring the asset light model in 2018
TMF: Favouring the asset light model in 2018 + - 2014-2018 10% 1.6% CAGR + + 10% 9% 1,379 +6.7% pa 1,356 1,259 1,149 +17.3% pa 1,045 +6.1% pa 2014 2015 2016 2017 2018 On-book financing Refinanced 2018 Full-Year Results 6
Slide 8: TMF
TMF Revenue (IFRS15) Stable revenue dynamic 2018 €1,356 M - €1,356 M (-1.6%) -1.6% 2017 €1,379 M EDFL(1) contributes €89 M to revenue with a net debt impact of only €39 M Refinanced business revenue rose 7% Recurring operating profit(1) 2018 €53.3 M ROP at €53.3 M • positive one-offs in 2017 2017 €9
Slide 9: Technology Management & Financing
Technology Management & Financing Contract portfolio €6.0 Bn Sharp increase in portfolio at original purchasing price (+7.9%) and outstandings (+9.1%) Residual interest(2) €2.9 Bn • 2.7% of the Original Purchase Price • >2x covered by remarketing of assets and contract extensions €0.16 Bn Outstandin
Slide 10: Services
Services Revenue (IFRS15) 2018 €1,042 M + Very robust organic growth 16% thanks to ramp up of large 2017 €902 M outsourcing contracts and strength of Satellites 5.4% organic Profitability impacted by: • Large contracts ramp-up Recurring operating profit(1) • Investments in business transformation 20
Slide 11: Products & Solutions
Products & Solutions Revenue (IFRS15) 2018 €448 M + Dynamic ICT market 27% 2017 €353 M Significant contracts won in the private and public sectors (education, 9.4% organic healthcare) Recurring operating profit(1) Success of “orchestrated solutions” 2018 €21.0 M 2017 €18.6 M (1) Before amortisation
Slide 12: Consolidated income statement
Consolidated income statement (In €M) 2017(1) 2018 Change Revenue 2,634 2,846 +8% Recurring operating profit before amortisation of intangible assets from acquisitions 154.4 114.6 (26%) Recurring operating profit 150.2 110.4 (26%) Non-recurring operating incomes and expenses(1) (19.1) (28.6) 50% Net
Slide 13: Return to significant FCF generation
Return to significant FCF generation Strong cash flow generation: FCF = €70 M • €89 M WCR inflow • €39 M invested in TMF with a €14 M inflow in H2 2018 -252 (vs €56 M outflow -279 -41 in 2017) -25 89 Financial Non- expenses & -42 Shareholder return 128 recurring -39 income tax items(1) -15 • €40 M i
Slide 14: Structure of net financial debt
Structure of net financial DEBT NBD under control: -132 • €252 M (1.6 x EBITDA) 322 Contracts • €246 M of which and receivables -186 backed refinanced by lease contracts with recourse Net OCEANE -102 cash 2023 -252 OCEANE convertible Euro PP -150 bonds issued in March -4 2018 Schuldschein Others Net
Slide 15: Simplified consolidated balance sheet
Simplified consolidated balance sheet ASSETS (IN €M) 01/01/2018(1) 31/12/2018 EQUITY & LIABILITIES (IN €M) 01/01/2018(1) 31/12/2018 Goodwill 599 631 Equity 480 491 Residual interest in leased assets 142 163 Commitments on residual value 78 98 Other non-current assets 192 209 Other non-current liabil
Slide 16: IFRS 16 main impacts – as lessee
IFRS 16 main impacts – as lessee €71 M recognised as Right of Use Supersedes IAS 17 as of Jan. 1, 2019 and IFRS 16 debt and as of 01/01/2019 First application of IFRS16 in H1 2019 financial statement c€20 M estimated positive impact on EBITDA in 2019 Capitalisation of leases limited positive impact
Slide 17: IFRS 16 main impacts – as lessor
IFRS 16 main impacts – as lessor No impact anticipated on business Very limited impact on accounting : Estimated c€100 M impact on revenue estimated in 2019 • Only gross margin to be recognised as income in pure “Sale & Leaseback”... Negative impact of < c€5 M on ROP in 2019, to be spread over • ...
Slide 18: Stable compensation per share
Stable compensation per share In euro cents Stable shareholder 2018 12.0 compensation 2017 12.0 12 cents premium 2016 10.0 reimbursement proposed 2015 8.8 €30 M share-buy-back programme approved 2014 7.5 by the board (c50% done in 2018) 2018 Full-Year Results 17
Slide 19: Growth drivers
Growth —— drivers 4 5 —_
Slide 20: TMF: a structural growth engine; Satellites strategy
01 TMF: a structural growth engine 02 Satellites strategy
Slide 21: Julie Verlingue, Executive Director
JULIE VERLINGUE Executive Director TMF activity and Countries excl. France 2018 Full-Year Results 20
Slide 22: A growth engine with a robust portfolio of clients and assets
A growth engine with a robust portfolio of clients and assets PORTFOLIO AT TMF revenue [EURBn] + 14% ORIGINAL PURCHASING PRICE €6.0 Bn pa €2.9 Bn 1.4 OUTSTANDINGS (92% refinanced without recourse) 1.0 # OF ASSETS MANAGED 7 Million 0.4 % OF 2018 2008 2014 2018 c. 15% REVENUE IN NON-IT LEASING 2018 Fu
Slide 23: Presence in countries
Presence in 18 countries 2018 TMF revenue (%) Rest of the World Stronghold and scale France in France, Italy, Spain, Benelux North America 6% 6% 31% Challenger position but good Netherlands traction in Germany 8% Agile growth with key Total accounts outside Europe €1.4 Bn Germany 9% Small historical
Slide 24: TMF: a structurally winning positioning
TMF: a structurally winning positioning Benefiting from long-term growth European trends in leasing scale with some strongholds (digital transformation and long term trend of “use” vs “own”) Asset-light model Top track-record with longstanding relationships on IT fleet lifecycle management with refi
Slide 25: Key opportunities identified
Key opportunities identified Refocus on Continue Adapt Optimise on- Develop core countries to attract go-to-market book our expertise and enhance top sales strategy financing outside of IT benefit people from 2-3x bigger than IT-leasing economies of scale Growing at 6-7% pa on average More to be ann
Slide 26: TMF: a structural growth engine; Satellites strategy
01 TMF: a structural growth engine 02 Satellites strategy
Slide 27: Satellites' contribution to group revenue and ROP
Satellites’ contribution to group revenue and ROP Satellites revenue as % of group revenue 24% 17% 14% 10% 7% 2% 2014 2015 2016 2017 (1) 2018 (1) 2018 % of group revenue % of group ROP (1) After IFRS 15 2018 Full-Year Results 26
Slide 28: Satellites enhance group competencies on hot spots
Satellites enhance group competencies on hot spots MICROSOFT CYBER WEB APPS INFRASTRUCTURE DIGITAL SIGNAGE ECOSYSTEM MOBILITY SECURITY / CLOUD AND NETWORK & MULTIMEDIA & LICENCES 2018 Full-Year Results 27
Slide 29: 3 examples of success stories in 2018
3 examples of SUCCESS stories in 2018 ASYSTEL / BDF ALTABOX EXAPROBE / ACIERNET Acquisition Acquisition in Q2 2018 Acquisition of Aciernet in Q1 18 of BDF in H2 2017 to complement existing In-store marketing foothold of Asystel Key know-how in Cisco Strong synergies in Retail technology, datacenters
Slide 30: Histovery
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Slide 31: A differentiating perspective on consulting
A differentiating perspective on consulting Devices Services Financing Usages Projects & solutions shaping Thorough Wide range of Unique perspective Huge installed Highly valuable knowledge digital services on pay-per-use estate of devices input to shape of digital and IT from MS and innovative and
Slide 32: Navigating uncharted waters
Navigating uncharted waters
Slide 33: Outlook
04 Outlook (xD
Slide 34: 2019: ROP growth and cash flow
2019: ROP growth and cash flow ROP New €20 M €128 M gross savings plan Continued discipline in cash generation 2018 Full-Year Results 33
Slide 35: CE COMOCOFT)
CE COMOCOFT)