Synergie Sa · EURONEXT:SDG
Synergie Sa — H1 2019 Earnings Presentation
39 slides from Synergie Sa's earnings presentation, Sep 18, 2019
Slide 1: 2019 Half Year Results
2019 HALF YEAR RESULTS MAISON DE LA RECHERCHE 54 RUE DE VARENNE - PARIS 7E 18 SEPTEMBER, 2019 - 10H30
Slide 2: Contents
CONTENTS SOMMAIRE ▪ SYNERGIE, EUROPE'S FIFTH-LARGEST HUMAN RESOURCES MANAGEMENT GROUP ▪ HIGHLIGHTS ▪ 2019 HALF YEAR RESULTS ▪ OUTLOOK 2
Slide 3: A Leading European Player
SYNERGIE, EUROPE'S FIFTH-LARGEST HUMAN RESOURCES MANAGEMENT GROUP A LEADING EUROPEAN PLAYER ▪ No. 1 independent French HR services group ▪ Fifth-largest network in Europe ▪ 4,100 permanent employees ▪ 750 branches in 17 countries ▪ Turnover of €2.550 million in 2018 ▪ Own funds of €501,8 million at
Slide 4: France and International: A Successful Mix
SYNERGIE, EUROPE'S FIFTH-LARGEST HUMAN RESOURCES MANAGEMENT GROUP FRANCE AND INTERNATIONAL: A SUCCESSFUL MIX Turnover in M€ LOCATED IN 17 COUNTRIES 4
Slide 5: Breakdown of Turnover at 30/06/2019
SYNERGIE, EUROPE'S FIFTH-LARGEST HUMAN RESOURCES MANAGEMENT GROUP BREAKDOWN OF TURNOVER AT 30/06/2019 22,9 % 48,7% EUROPE DU NORD FRANCE 25,4% 3,0% CANADA/ AUSTRALIE EUROPE DU SUD 5
Slide 6: Multi-Sector and Multi-Client Positioning
SYNERGIE, EUROPE'S FIFTH-LARGEST HUMAN RESOURCES MANAGEMENT GROUP MULTI-SECTOR AND MULTI-CLIENT POSITIONING TERTIARY & OTHER BUILDING AND TRANSPORT/ INDUSTRY SECTORS, INCLUDING PUBLIC LOGISTICS SPECIALITY WORKS 52 % 20 % 13 % 16 % KEY ACCOUNTS 42% 58% SME/SMI A FULLY RESPECTED "CLIENT MIX" 6
Slide 7: Increased Activity in Growth Sectors
SYNERGIE, EUROPE'S FIFTH-LARGEST HUMAN RESOURCES MANAGEMENT GROUP INCREASED ACTIVITY IN GROWTH SECTORS AÉRONAUTIQUE CONSTRUCTION AUTOMOBILE NAVALE BUILDING AND PUBLIC WORKS ÉNERGIES TERTIAIRE NUMÉRIQUE RENOUVELABLES 7
Slide 8: A Leader and Driving Force for Employment in the Aeronautics Sector
SYNERGIE, EUROPE'S FIFTH-LARGEST HUMAN RESOURCES MANAGEMENT GROUP SYNERGIE, A LEADER AND DRIVING FORCE FOR EMPLOYMENT IN THE AERONAUTICS SECTOR 2019 half year turnover: €67 million Estimated Turnover for 2019: €135 million ▪ 3 years renewal of partnership with Airbus ▪ Europe-wide roll-out of Fren
Slide 9: The Preferred Supplier for Passenger Ship and Submarine Builders
SYNERGIE, EUROPE'S FIFTH-LARGEST HUMAN RESOURCES MANAGEMENT GROUP SYNERGIE, THE PREFERRED SUPPLIER FOR PASSENGER SHIP AND SUBMARINE BUILDERS 2019 half year turnover: €10,5 million Estimated Turnover for 2019: €22,6 million ▪ Numerous orders from shipowners make Saint-Nazaire a major economic site
Slide 10: An Effective Presence in the Automotive Industry
SYNERGIE, EUROPE'S FIFTH-LARGEST HUMAN RESOURCES MANAGEMENT GROUP AN EFFECTIVE PRESENCE IN THE AUTOMOTIVE INDUSTRY 2019 half year turnover: €92 million Estimated Turnover for 2019: €185 million ▪ A tense context in Europe ▪ Present throughout the supply chain: manufacturers, equipment makers, serv
Slide 11: Growth in Renewable Energies
SYNERGIE, EUROPE'S FIFTH-LARGEST HUMAN RESOURCES MANAGEMENT GROUP GROWTH IN RENEWABLE ENERGIES 2019 half year turnover: €26 million Estimated Turnover for 2019: €53 million ▪ SYNERGIE saw sharp growth in Renewable Marine Energies ▪ Validation by the State Council of the offshore wind farm: SYNERGI
Slide 12: Building and Public Works: A Growing Business Sector
SYNERGIE, EUROPE'S FIFTH-LARGEST HUMAN RESOURCES MANAGEMENT GROUP BUILDING AND PUBLIC WORKS: A GROWING BUSINESS SECTOR 2019 half year turnover: €130 million Estimated Turnover for 2019: €300 million Strong development in France with exceptional projects such as: ▪ EuroMed : rehabilitation of the n
Slide 13: In-House Recruitment: A Stronger Presence Among Our Clients
SYNERGIE, EUROPE'S FIFTH-LARGEST HUMAN RESOURCES MANAGEMENT GROUP IN-HOUSE RECRUITMENT: A STRONGER PRESENCE AMONG OUR CLIENTS 2019 half year turnover: €203 million Estimated Turnover for 2019: €390 million ▪ Acceleration of in-house recruitment with “Synergie Proxi” ▪ A way of building client loya
Slide 14: Open-Ended Employment Contracts for Temporary Employees
SYNERGIE, EUROPE'S FIFTH-LARGEST HUMAN RESOURCES MANAGEMENT GROUP OPEN-ENDED EMPLOYMENT CONTRACTS FOR TEMPORARY EMPLOYEES, A RESOUNDING SUCCESS 2019 half year turnover: €42 million Estimated Turnover for 2019: €93 million ▪ Contract established in France in 2014 ▪ Mix of flexibility and security,
Slide 15: International Recruitment
SYNERGIE, EUROPE'S FIFTH-LARGEST HUMAN RESOURCES MANAGEMENT GROUP INTERNATIONAL RECRUITMENT 2019 half year turnover: €13 million Estimated Turnover for 2019: €28 million An international recruitment policy designed to attract talents in order to: ▪ Ease difficulties of recruitment ▪ Seek a highly
Slide 16: Recruiting Experts and Managers: New International Brand
SYNERGIE, EUROPE'S FIFTH-LARGEST HUMAN RESOURCES MANAGEMENT GROUP RECRUITING EXPERTS AND MANAGERS: NEW INTERNATIONAL BRAND ▪ Market up 11% compared to 2018 ▪ In 2019, an estimate of 270,000 to 290,000 recruitments to be filled (source: APEC) ▪ Near full-employment job situation for managers: unemplo
Slide 17: Recruiting Experts and Managers: New International Brand
SYNERGIE, EUROPE'S FIFTH-LARGEST HUMAN RESOURCES MANAGEMENT GROUP RECRUITING EXPERTS AND MANAGERS: NEW INTERNATIONAL BRAND ▪ In France, creation of 10 offices et corners ▪ Internationally: Launch in Switzerland, Italy, Spain, Portugal, Slovakia and Czech Republic 2020 opening forescast: Germany, Aus
Slide 18: Synergie's Digital Transformation Continues
SYNERGIE, EUROPE'S FIFTH-LARGEST HUMAN RESOURCES MANAGEMENT GROUP SYNERGIE'S DIGITAL TRANSFORMATION CONTINUES Digital solutions for our different interlocutors: For our Clients : For our Candidates : For our Recruiters, to optimise ▪ Dematerialisation of the ▪ a website accessible on all candidate s
Slide 19: A Proactive CSR Policy Based on 3 Axes
SYNERGIE, EUROPE'S FIFTH-LARGEST HUMAN RESOURCES MANAGEMENT GROUP A PROACTIVE CSR POLICY BASED ON 3 AXES: DIVERSITY, TRAINING, SECURITY DIVERSITY FOCUS SYNERGIE is a signatory of the Diversity in Business Charter since 2010 and supports companies in the fight against discrimination at work: ➔ Our ne
Slide 20: A Proactive CSR Policy
SYNERGIE, EUROPE'S FIFTH-LARGEST HUMAN RESOURCES MANAGEMENT GROUP A PROACTIVE CSR POLICY ➔ Out news about Integration Opening of the 1st SYNERGIE integration temporary employment agency in Epinal on October 1st after the approval of the DIRECCTE of the Vosges region. ➔ Our news on Professional Equal
Slide 21: A Recognized and Rewarded CSR Policy
SYNERGIE, EUROPE'S FIFTH-LARGEST HUMAN RESOURCES MANAGEMENT GROUP A RECOGNIZED AND REWARDED CSR POLICY Gaïa et Ecovadis ratings For the 3rd year in a row, ECOVADIS awards SYNERGIE the GOLD level for its CSR policy. This excellent result puts the Group in the TOP 2% of suppliers SYNERGIE is in the
Slide 22: Contents
CONTENTS SOMMAIRE ▪ SYNERGIE, EUROPE'S FIFTH-LARGEST HUMAN RESOURCES MANAGEMENT GROUP ▪ HIGHLIGHTS ▪ 2019 HALF YEAR RESULTS ▪ OUTLOOK 22
Slide 23: Legislative Developments
HIGHLIGHTS LEGISLATIVE DEVELOPMENTS In France ➔ Transformation of CICE (Tax Credit for Competitiveness and Employment) into social contribution reduction: • Increase in tax expenses (+ € 6.7m) and employee profit-sharing (+ € 2.3m) over the half-year However: ▪ Immediate positive impact on cash flow
Slide 24: Application of IFRS 16
HIGHLIGHTS APPLICATION OF IFRS 16 ➔ Applicable for the 1st time on 1 January, 2019 ➔ In SYNERGIE, the adjusted contracts concern : ▪ Real state assets ▪ Vehicules ➔ Impacts on the financial statements: ▪ Assets : + €36,7 million ▪ Ebitda : + €7,6 million ▪ Current Operating Profit : + €0,5 million ▪
Slide 25: Strategic Acquisition in Australia
HIGHLIGHTS STRATEGIC ACQUISITION IN AUSTRALIA ➔ ENTIRE RECRUITMENT ▪ Company created in 2010 ▪ Turnover 2018: AUD 38 Million (+44% in relation to 2017) ▪ Presence in the eastern part of the country: - Queensland (Brisbane) - New South Wales (Sydney) ▪ Temporary Work in the mining, logistics and cons
Slide 26: Contents
CONTENTS SOMMAIRE ▪ SYNERGIE, EUROPE'S FIFTH-LARGEST HUMAN RESOURCES MANAGEMENT GROUP ▪ HIGHLIGHTS ▪ 2019 HALF YEAR RESULTS ▪ OUTLOOK 26
Slide 27: Key Performance Indicators
2019 HALF YEAR RESULTS KEY PERFORMANCE INDICATORS TURNOVER CURRENT NET PROFIT OPERATING PROFIT €1,239 €1,296 €53,6 €52,1 €36,6 €27,2 million million million million million million S1 2018 S1 2019 S1 2019 S1 2018 S1 2019 S1 2018 RESULTS THAT CONFIRM OUR DEVELOPMENT 27
Slide 28: Activity in the First Half of 2019
2019 HALF YEAR RESULTS ACTIVITY IN THE FIRST HALF OF 2019 CONSOLIDATED TURNOVER In € million S1 2019 S1 2018 Change France 630.8 589.0 7.1% Southern Europe 329.3 314.4 4.7% Northern and Eastern Europe 296.4 306.4 -3.3% Canada/Australia 39.1 29.0 34,9% International 664.8 649.8 2.3% Total 1,295.6 1,2
Slide 29: Income Statement
2019 HALF YEAR RESULTS INCOME STATEMENT In € million S1 2019 S1 2018 Turnover 1,295.6 1,238.8 Ebitda 64.8 61.5 Current operating profit 52.1 53.6 Operating profit 51.6 53.1 Cost of the net financial debt (0.9) (0.4) Exchange rate difference (0.1) (0.2) Profit before taxes 50.6 52.5 Income taxes (1)
Slide 30: EBITDA
2019 HALF YEAR RESULTS EBITDA In M€ S1 2019* S1 2018 France 38.9 37.6 Southern Europe 12.8 11.8 Northern and Eastern Europe 12.3 12.1 Canada/Australia 0.9 0.0 International 25.9 24.0 Total 64.8 61.5 * Impact IFRS 16 : €7,6 million 30
Slide 31: Current Operating Profit
2019 HALF YEAR RESULTS CURRENT OPERATING PROFIT Before amortization and impairment of intangible assets ("EBITA") In M€ S1 2019 S1 2018 M€ % Turnover M€ % Turnover France 34.1 5.4% 35.5 6.0% Southern Europe 10.8 3.3% 11.5 3.7% Northern and Eastern Europe 9.4 3.2% 10.7 3.5% Canada / Australia 0.3 0.9
Slide 32: Solid Balance Sheet Structure
2019 HALF YEAR RESULTS SOLID BALANCE SHEET STRUCTURE In € million June 2019 Dec 2018 June 2018 Shareholders equity 508.1 501.8 450.9 Net cash of bank balances 71.3 45.2 37.1 Net financial debt (12.1) 1.0 0.2 Net cash including CICE mobilizable 102.5 125.6 83.5 32
Slide 33: Statement of Cash Flows
2019 HALF YEAR RESULTS STATEMENT OF CASH FLOWS In M€ S1 2019 S1 2018 Consolidated net profit 27.2 36.6 Restatement of income and expenses 4.3 (11.0) with no effect on cash Self-financing capacity 31.5 25.6 Change in working capital requirement 30.0 (18.8) Cash flow from operating activities 61.5 6.8
Slide 34: Balance Sheet Structure
2019 HALF YEAR RESULTS BALANCE SHEET STRUCTURE Turnover in € million Non current liabilities 34
Slide 35: Contents
CONTENTS SOMMAIRE ▪ SYNERGIE, EUROPE'S FIFTH-LARGEST HUMAN RESOURCES MANAGEMENT GROUP ▪ HIGHLIGHTS ▪ 2019 HALF YEAR RESULTS ▪ OUTLOOK 35
Slide 36: Areas of Development for the Synergie Group
OUTLOOK AREAS OF DEVELOPMENT FOR THE SYNERGIE GROUP ORGANIC GROWTH EXTERNAL GROWTH ▪ Extend our network of branches to the most ▪ Selective study of development dynamic employment areas opportunities where the Group is already ▪ Active deployment of open-ended employment established contracts for te
Slide 37: Prospects for Our Operations: Target 2021 Turnover of €3 Billion
OUTLOOK PROSPECTS FOR OUR OPERATIONS TARGET 2021 : TURNOVER OF €3 BILLION 37
Slide 38: Upcoming Event: Q3 2019 Turnover Publication
OUTLOOK UPCOMING EVENT: ➔ PUBLICATION OF TURNOVER FOR THE THIRD QUARTER OF 2019 ON OCTOBER 23, 2019 AFTER THE STOCK MARKET CLOSES 38
Slide 39: Thank you for your attention
Thank you for your attention 39