Econocom Group Se Class D · EURONEXT:ECONB
Econocom Group Se Class D — H1 2022 Earnings Presentation
40 slides from Econocom Group Se Class D's earnings presentation, Jul 28, 2022
Slide 1: Analyst and Investor presentation
Analyst and Investor presentation 28 July 2022
Slide 2: Welcome
Welcome
Slide 3: The speakers
The speakers Jean-Louis Laurent Angel BOUCHARD ROUDIL BENGUIGUI Chairman CEO Group Executive Managing Director
Slide 4: Agenda
01 Introduction 02 H1 2022 results and financial position AGENDA 03 H1 2022 highlights 04 Outlook
Slide 5: Introduction
01 Introduction
Slide 6: Executive summary
Executive summary Return to Continuation Maintenance of organic of M&A profitability growth activity level Econocom – H1 2022 results 6
Slide 7: Executive summary
Executive summary Revenue ROP(2) Net Result NFD(4) €1,240 M €59 M €34 M €272 M +9.0% (1) 4.7% +10.8% (3) 1,5x of revenue EBITDA 12 month Maintenance Increase in Growth Net debt of profitability revenue in net result under control level (1) At constant standards and scope for continued activities (ca
Slide 8: H1 2022 results and financial position
02 H1 2022 results and financial position
Slide 9: Bridge H1 2021 / H1 2022 Revenue variation
Bridge H1 2021 / H1 2022 Revenue variation in € M Stability in reported data 1,240 Total 1,240 Growth +13.4% Organic growth +9.0% +52 1,137 1,093 -147 -8 30.06.2021 Changes in the scope of 30.06.2021 Revenue from Revenue from 30.06.2021 30.06.2022 discontinued restated disposals over H1 acquisitions
Slide 10: Growth in revenue and ROP: maintenance of profitability level
Growth in revenue and ROP Maintenance of profitability level Revenue(1) Organic revenue growth(1) of + 9.0% driven by Products & H1 2022 €1,240 M 9.0% Solutions and TMF despite a still H1 2021 €1,137 M challenging environment ROP(2) up to €58.8 M (+12.6%) ROP(1)(2) with contribution of all businesse
Slide 11: Solid positions in target zones in Europe
Solid positions in target zones in Europe Revenue H1 2022 in € M and % of total France €643 M Econocom, Europe's first 52% Digital General Contractor Southern Europe €279 M Organic growth driven by the 23% most important regions (France Total and Southern Europe) Benelux €165 M €1,240 M Balance main
Slide 12: Products & Solutions: Growth in revenue
Products & Solutions: Growth in revenue Revenue(1) Revenue growth(1) of 12.0% driven H1 2022 €493 M + by: 12.0% H1 2021 • high level of order bookings €440 M • positive contribution from all ROP(1)(2) regions H1 2022 €16.9 M + despite persistent sourcing 6.3% difficulties H1 2021 €15.9 M ROP(2) up 6
Slide 13: Technology Management & Financing: Overall performance on the rise
Technology Management & Financing: Overall performance on the rise Revenue(1) H1 2022 €499 M + Revenue up(1) 14.0% benefiting 14.0% notably from the first effects H1 2021 €438 M of sales force strengthening ROP(1)(2) Continued improvement in TMF's ROP(2) to €21.6 M resulting H1 2022 €21.6 M + in a p
Slide 14: Increase in the number of leased assets
Increase in the number of leased assets Total contracts in portfolio at the end of H1 2022 Increase in the leased portfolio based on the original price €5.5 B (+€105 M) vs. 12/31/2021 Residual interest(1) • €O.17 B residual interest • 3.1% of original price €2.3 B • >2x covered by the market value o
Slide 15: Services: Continued increase in profitability
Services: Continued increase in profitability Contrasted activity linked to: • Econocom’s willingness to Revenue(1) discontinue unprofitable - contracts H1 2022 €248 M 4.4% • delay in implementing new H1 2021 €259 M contracts signed at the end of 2021 ROP(1)(2) • Apps, Cloud & Data dynamics H1 2022
Slide 16: Simplified income statement H1 2022 vs. H1 2021 restated
Simplified income statement H1 2022 vs. H1 2021 restated Revenue up 13.4% vs. H1 2021 (En € M) S1 2022 S1 2021 (1) restated + Revenue 1,239.5 1,092.6 13.4% + Increase in non-recurring Recurring operating profit(2) 58.8 52.3 12.6% operating expenses due Recurring operating profit 57.8 51.3 to early d
Slide 17: Net Financial Debt under control
Net Financial Debt under control NFD(1) variation (in € M) 272 NFD(1) 30.06.2022 reported NFD under control at €272 M + adjusted to €98 M taking into 55 60 Decrease in factoring(2) account share buyback, increase 217 in own-booked lease value and reduction in factoring over the 40 Share Buyback(3) l
Slide 18: Extending the maturity of debts
Extending the maturity of debts In € M Bond debt(3): -€357 M Securing the 309 announced rise in -71 interest rates with the -149 issuance in May 2022 of a new Short term -208 Schuldschein of up to debt OCEANE €200 M with a maturity -272 of up to 7 years and an Cash overall rate of 2% pre- -153 30.06
Slide 19: H1 2022 highlights
03 H1 2022 highlights
Slide 20: Development of offerings
03.1 Development of offerings
Slide 21: Deployment plan of certifications necessary for P&S growth
Deployment plan to all countries of the group of the certifications necessary for P&S growth EUROPEAN PARTNERSHIPS Platinum Titanium Plus status COUNTRY CERTIFICATIONS 10 GOLD certifications Authorised Enterprise Reseller Partner for Education In France Authorised Education Specialist Cloud Partner
Slide 22: A strategy based on Sustainable Digital
A strategy based on Sustainable Digital Visit of the Product Care pilot site in Velizy by the French Minister in charge of Digital Transition and Telecommunications Mr. Jean-Noël Barrot Product Care, Econocom's dedicated offer to extend the life of product Econocom - 2022 Half Year Results 22
Slide 23: Asserting strong positioning in Sustainable Digital with SOFI Group
Asserting strong positioning in the Sustainable Digital field with SOFI Group a key player in the Business model Revenue X3 A nationally refurbished smartphone 100% Made recognised brand in France market in France over the last 4 years A strategic acquisition 14% weight of R&D • Becoming a benchmark
Slide 24: Apps, Cloud & Data: launch of the new communication platform
Apps, Cloud & Data: launch of the new communication platform Graphic redesign of all external communication tools to support growth + 6% Growth of the Apps, Cloud & Data business in H1 2022 Econocom - 2022 Half Year Results 24
Slide 25: Intensifying development in the Audiovisual vertical with LYDIS
Intensifying development in the Audiovisual vertical with LYDIS €25 M 2021 revenue Leading distributor in the Benelux in the VoIP (Telco) and videoconferencing markets >10% EBIT • Platinum distributor of Yealink for 8 years (in the top 5 worldwide) • Partner of 2N Telekomunikace, Spectralink Europe,
Slide 26: Business development
03.2 Business development
Slide 27: Signature of financing contracts on promising new digital assets
Signature of financing contracts on promising new digital assets FRANCE €14 M • For automotive supplier Novares, financing and lease-back of new in revenue in 2022 industrial machinery for the French and Czech plants GERMANY €33 M in target revenue over the next 4 years • Long-term lease financing o
Slide 28: Successes rewarding the innovative approach of Services in the workplace
Successes rewarding the innovative approach of Services in the workplace €81.3 M in revenue over the agreed term AGIL’IT PROJECT 48 • Econocom won the continuation of the Prior'IT contract with a significant months minimum extension of the scope and the objective of supporting the industrial transfo
Slide 29: Pooling of the P&S and Services sales forces to increase synergies
Pooling of the P&S and Services sales forces to increase synergies In addition to the joint commercial initiatives between P&S and TMF, implementation of a reinforced collaboration between P&S and Services: • Agreement based on reciprocal business contribution with incentives for sales staff • Expan
Slide 30: Developing commercial synergies with TRAMS
Developing commercial synergies with TRAMS €42 M H1 2022 revenue Consolidation of the Trams and Econocom UK teams in the same offices Reciprocal contribution of business and synergies aligned +40% with the specificities of each sector Revenue growth • Key contracts signed by Trams with Econocom cust
Slide 31: Strengthening of market share in Spain through the acquisition of SEMIC
Strengthening of market share in Spain through the acquisition of SEMIC €78 M 2021 revenue >40 years’ Carbon neutral company since 2021 experience Provider of comprehensive IT solutions and services with a “One Digital Company” DNA 10 sites Perfect fit across industry verticals, technologies and par
Slide 32: Outlook
04 Outlook
Slide 33: Outlook
Outlook Organic revenue Recurring Strengthening growth confirmed Earnings per share human at 5% (1) of €0.50 capital (1) For continuing operations, at constant scope and accounting standards Econocom - 2022 Half Year Results 33
Slide 34: Q&A
Q&A
Slide 35: Appendices
Appendices €COnNocomM
Slide 36: Simplified balance sheet
Simplified balance sheet ASSETS (€ M) 30.06.2022 31.12.2021 EQUITY & LIABILITIES (€ M) 30.06.2022 31.12.2021 Goodwill 506 495 Equity 420 439 Other non-current assets 202 216 Net financial debt 272 67 Assets related to leasing activities 454 379 Commitments on residual value 99 98 Residual interest i
Slide 37: NFD under control
NFD under control -217 FCF 12 month: + €67 M -272 Reduction in WCR offset by TMF investment +162 -16 -22 -89 -€28 M M&A impacts +77 -28 with less disposals and -17 more acquisitions -28 -40 NFD as of 30/06/2022 at -24 Payments €272 M (up €55 M) -34 lease WCR CAPEX Treasury including €40 M of share c
Slide 38: Stock Exchange
Stock Exchange Number of shares: Equity table(1) – % of ownership and number of shares • Total shares: 222.9 M • Treasury shares: 45.1 M 40.0% Holding companies held • Floating shares: 177.8 M by Mr. Bouchard 89.1 M Stock price as of 25/07/2022 Market Cap • €3.36 €597 M 20.2% 39.8% Listing Place Fre
Slide 39: Contacts
Contacts Investor and shareholder relations nathalie.etzenbach@econocom.com Financial Press communication relations info@capvalue.fr econocom@the-arcane.com Econocom - 2022 Half Year Results 39
Slide 40: Thank you
Thank you €COnNocomM