Slide 1: Analysts and investors Presentation 2022 Annual results
Analysts and investors Presentation 2022 Annual results 16 February 2023
Slide 2: Introduction
Introduction Jean-Louis Bouchard Chairman and CEO
Slide 3: Business, Team, Resilience
Business Team Resilience
Slide 4: Strengthening of operational Management
Strengthening of operational Management New COMEX Jean-Louis Samira Angel Patrick Mathilde Philippe Long BOUCHARD DRAOUA BENGUIGUI VAN DEN SAINT-POL GOULLIOUD LE XUAN BERG Founder Executive Executive Administrative TMF Group Managing Managing Chairman Managing Director Managing Director and Financia
Slide 5: Strengthening of operational Management
Strengthening of operational Management Cross-business coordination Jean-Louis Samira Angel Patrick Mathilde Philippe Long BOUCHARD DRAOUA BENGUIGUI VAN DEN SAINT-POL GOULLIOUD LE XUAN BERG Founder Executive Executive Administrative TMF Group Managing Managing Chairman Managing Director Managing and
Slide 6: Recap of Group's key financials
Recap of Group’s key financials 181 179 3,135 2,980 2,927 2,997 2,850 2,718 2,536 2,559 2,505 2,316 2,093 1,773 1,584 1,538 139 1,021 133 126 122 154 759 89 140 67 74 118 111 47 95 16.0 29 12.0 12.0 12.0 14.0 10.0 8.8 4.4 7.5 6.0 5.0 5.0 3.0 3,8 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 7: 2022 Financial and non-financial results
2022 Financial and non-financial results Patrick Van Den Berg Administrative and Financial Managing Director General Manager The Netherlands 7
Slide 8: Continued growth in revenue and operating profit
Continued growth in revenue and operating profit Revenue(1) ROP(1)(2) €2,718 M Organic growth(3) €2,367 M at 10.0% above +14.8% guidance set at 5% €139.4 M €127.7 M +9.2% Profitability rate maintained above 5% 2021 2022 2021 2022 (1) For continuing operations on a constant basis (2) The term operati
Slide 9: Products & Solutions: Strong contribution to growth
Products & Solutions: Strong contribution to growth Revenue(1) ROP(1)(2) Strong organic €1,238 M growth(3) at 15.5% driven by €970 M good performance in +27.6% the digital asset €49.0 M distribution market €45.0 M Profitability kept +8.9% at 4% despite tensions on sourcing and increased 2021 2022 20
Slide 10: Technology Management & Financing: back to growth confirmed
Technology Management & Financing: back to growth confirmed Revenue(1) ROP(1)(2) €989 M Strong organic(3) €881 M growth in revenue (+10.2%) including a few +12.3% major operations €49.8 M €40.2 M Improvement +23.7% of 0.4pt in the profitability rate to 5% thanks to several 2021 2022 2021 2022 accret
Slide 11: Services: Maintaining robust profitability
Services: Maintaining robust profitability Revenue(1) ROP(1)(2) Limited organic(3) decline in Services €516 M €492 M revenues (-1.9%) with a clear rebound in Q4 (+6.1%) -4.8% €42.4 M as expected €40.6 M -4.2% High profitability rate at 8.3% (+0.1pt) 2021 2022 2021 2022 (1) For continuing operations
Slide 12: 2022 simplified income statement
2022 simplified income statement (In €M) 2021(1) 2022 Revenue 2,366.9 2,718.3 +14.8% Strong organic and total growth Recurring operating profit(2) 127.7 139.4 +9.2% Continued growth in operating margin Net income from continuing operations impacted by: Net profit from continued 69.5 72.6 +4.5% - €10
Slide 13: Net Financial Debt under control
Net Financial Debt under control NFD(1) variation (in €M) 71 Mastered NFD at €143 M showing a leverage ratio under control at 0.9x EBITDA 2022 and a gearing of 31%. -67 -67 This DNC is to be compared with expected future receipts from own-booked TMF contracts for €284 M at the end of 2022 and -57 th
Slide 14: Maintaining a stable operating cash surplus
Maintaining a stable operating cash surplus ‒ The operating debt (or operating cash surplus) corresponds to the NFD(1) adjusted for expected future cash receipts from own-booked contracts ‒ Own-booked contracts are leases that are not refinanced or are refinanced with recourse 2021 2022 141 -208 140
Slide 15: Return to shareholder
Return to shareholder Repayment of share premium per share (in €) Repayment of share 0.16 premium 0.14 of €0.16/share proposed 0.12 to the Shareholders' Meeting on 03.31.23 33% increase over 2 years Yield of 5.7% based on the average share price over the last 20 days 2021 2022 2023 Econocom – 2022 A
Slide 16: Continuous improvement in non-financial performances
Continuous improvement in non-financial performances +4 pts. +5 pts. -24% in 1 year on in 1 year on the gender since 2019(1) Ecovadis rating equality index in France of greenhouse gas 66/100 83/100 emissions per FTE (1) On the following scopes: : Scope 1 : direct emissions Scope 2 indirect emissions
Slide 17: Focus on 2022 Acquisitions & Recruitments
Focus on 2022 Acquisitions & Recruitments Angel Benguigui Executive Managing Director in charge of International
Slide 18: 3 acquisitions in 2022
Ongoing external growth Multi-brands 3 acquisitions Products & Solutions in 2022 Audio-visual solutions specialist Contributing to circa €100 M to 2022 revenue Refurbishment specialist Econocom – 2022 Annual Results 18
Slide 19: Strategic rationale of acquisitions
Strengthening of our core businesses in priority geographic areas Strategic rationale of Development of new businesses acquisitions with high potential identified Leverage of our experience in companies integration Econocom – 2022 Annual Results 19
Slide 20: An active recruitment and retention policy
An active recruitment and retention policy 2,342 A focus recruitments on strengthening the sales done in 2022 force, in particular in TMF, in all Group’s business lines with first results already and geographies Econocom – 2022 Annual Results 20
Slide 21: Perspectives
Perspectives Samira Draoua Executive Managing Director in charge of France
Slide 22: Strengthening of our core businesses
Strengthening of our core businesses Ongoing organic growth Acceleration of external growth (1) Strong and continued commitment for being a responsible digital player (1) Corporate Sustainability Reporting Directive Econocom – 2022 Annual Results 22
Slide 23: Acceleration of activities' development
Acceleration of 2 activities’ development Econocom – 2022 Annual Results 23
Slide 24: Development of the audiovisual business
Development of the audiovisual business A highly growing and fragmented global market (c.6%) 2022 revenue €350 M Belux, The Netherlands, France, Spain Econocom – 2022 Annual Results 24
Slide 25: Development of the refurbishment business
Development of the refurbishment business Continued growth of the European smartphone and IT equipment refurbishment market Replication and deployment of the Ecofactory model Expansion of IT products portfolio refurbished Econocom – 2022 Annual Results 25
Slide 26: A look back at the group's strategic plans
A look back at the group's strategic plans PLAN PLAN PLAN PLAN Horizon 2012 Mutation Excellence pour les 3 métiers 2024-2028 ACQUISITION OF ECS ACQUISITION OF OSIATIS REDUCTION DES DÉPENSES ACQUISITION OF SATELLITES (PLAN DRAKKAR) DNC = 0 3,135 2,980 2,927 2,927 2,850 2,718 2,536 2,559 2,505 2,316 2
Slide 27: Launch of a strategic plan
Launch of a strategic plan Years €B in Revenue Businesses With a first step in 3 years to €4 B in revenue Econocom – 2022 Annual Results 27
Slide 28: Guidance
Presentation of the strategic plan in Q3 2023 Revenue growth of 5% Guidance Improvement in net consolidated profit Econocom – 2022 Annual Results 28
Slide 29: Questions & Answers
Questions & Answers Econocom – 2022 Annual Results 29
Slide 30: Appendices
Appendices Econocom – 2022 Annual Results 30
Slide 31: Simplified income statement 2022
Simplified income statement 2022 (In €M) 2021 (1) 2022 Revenue 2,366.9 2,718.3 Recurring operating profit (Operating margin)(2) 127.7 139.4 Depreciation of acquisition-related intangible assets -2.0 -2.2 Other operating income 7.2 0.1 Other operating expenses -23.6 -27.5 Operating profit 109.2 109.8
Slide 32: Simplified balance sheet
Simplified balance sheet ASSETS (€ M) 12.31.2021 12.31.2022 EQUITY & LIABILITIES (€ M) 12.31.2021 12.31.2022 Goodwill 495 554 Equity 439 457 153 163 Bonds 252 360 Other long term assets Financial debt 221 188 Residual interest in leased assets 171 165 Provisions 68 59 Other non-current assets 63 49
Slide 33: NFD bridge
NFD bridge 150 Free Cash Flow = €71 M 100 156 -18 -23 85 -30 -75 50 -24 -67 -67 -143 0 -50 -30 -27 -100 -17 -7 -150 NFD(1) Operating Non Payments TMF WCR Financial CAPEX M&A(2) Treasury Dividend & Others NFD(1) -200 31.12.2021 Cash Flow Current Lease Investment expenses shares capital Reclass. activ
Slide 34: NFD breakdown
NFD breakdown (in €M) 402 -54 -151 -209 -132 -143 Cash at Short term OCEANE Schuldschein Recourse NFD(1) 12.31.2022 debt financing(2) 12.31.2022 (1) NFD: Net Financial Debt for continued activities excluding impact of IFRS 16 on leases and rentals for which Econocom is a tenant (2) Includes non-deco
Slide 35: Stock Exchange
Stock Exchange Equity table(1) – % of ownership and number of shares Number of shares Market cap • Total shares: 222.9 M €502 M • Treasury shares: 44.2 M • Floating shares: 178.7 M 19.81% Autocontrole (2) Share price(1) 44/2 m • €2.81 Treasury shares value(1) 39;99% Holding companies held • €124 M b
Slide 36: Contacts
Contacts Investor & analyst Financial Press relations communication relations benjamin.pehau@econocom.com info@capvalue.fr econocom@the-arcane.com Econocom – 2022 Annual Results 36