Sopra Steria Group Sa · EURONEXT:SOP
Sopra Steria Group Sa — FY2024 Earnings Presentation
46 slides from Sopra Steria Group Sa's earnings presentation, Feb 27, 2025
Slide 1: 2024 Annual Results Presentation
2024 Annual Results Presentation Paris, 27 February 2025
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking information subject to certain risks and uncertainties that may affect the Group’s future growth and financial results. Readers are reminded that licence agreements, which often represent investments for clients, are signed in greater numbers in
Slide 3: Contents
Contents 01 02 03 04 05 Highlights Operating Financial Outlook Annexes of 2024 position by results and targets reporting unit for 2024 3 2024 Annual Results Presentation – 27 February 2025
Slide 4: Highlights of 2024
Highlights of 2024 Cyril Malargé, Chief Executive Officer 4
Slide 5: Results significantly up despite a wait-and-see market
Results significantly up despite a wait-and-see market “Revenue relatively “Operating margin “Free cash flow of stable on an on business activity around organic basis” of at least 9.7%” €350 million” -0.5% 9.8% €432.1m Operating profit on business activity: €564.7 million, up 3.0% vs 2023 Net profit
Slide 6: A record operating performance
A record operating performance Operating profit on business FCF(1) (€m) activity (%) RoCE(2) before tax (%) % of revenue 7.5% 6.7% 9.8% 432 21.5% 9.4% 390 8.9% 18.7% 8.1% 16.9% 16.5% 287 246 14.1% 7.0% 204 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 (1) FCF: Free cash
Slide 7: Improved shareholder cash returns
Improved shareholder cash returns FCF yield Share buyback Dividends in respect of at 31/12/2024(1) €150m financial year 2024 12.3% 858k €4.65 shares(2) per share i.e. 4.3% of i.e. 38.1% of net profit attributable to the Group share capital (1) Market capitalisation at 31/12/2024: €3,511.3 million (2
Slide 8: Major deals in 2024
Major deals in 2024 8 2024 Annual Results Presentation – 27 February 2025
Slide 9: Acceleration in the transformation trajectory
Acceleration in the transformation trajectory • Clarification of our strategic positioning through the successful sale of Sopra Banking Software • Appointment of a Group Chief Operating Officer to shape and lead the transformation of the operating model • Shifting from a service-based to an offering
Slide 10: Strengthened positioning
Strengthened positioning 26% 22% 20% 85% 9% 6% Public Aeronautics, Space, Financial Services Digital Services Consulting Solutions Sector Defence & Security and Insurance 68% Group revenue Focus on consulting and digital services in Europe CS Group => Aeronautics, Space, Defence & Security Ordina &
Slide 11: Ramping up in NextGen technologies
Ramping up in NextGen technologies Certifications References Innovation +32% • Leader in “Cyber Resiliency Services” • Leader in “End-to-End Cloud Infra Services” Ecosystem of 500 startups 40 partnerships • ServiceNow Equity investments in 18 companies, • SAP 3 of them in 2024 • Best in Class for “A
Slide 12: AI at the heart of our priorities and business lines
AI at the heart of our priorities and business lines AI at Sopra Steria AI at our clients AI in our offerings “AI for all, now” training Sopra Steria Next Studies Relevant AI • “4 archetypes for driving performance” AI-boosted development platform • “From exploration to impact” AI Factory Support
Slide 13: Confirmation of sustainability trajectory
Confirmation of sustainability trajectory Net-Zero trajectory(1): Reductions in greenhouse gas emissions • 52.7% reduction for Scopes 1 & 2 (baseline: 2019) Score of “A” for the • 23.9% reduction for Scope 3 (baseline: 2019) 8th year running More women in the Group • Proportion of women in the 3% mo
Slide 14: Operating position by reporting unit
Operating position by reporting unit Cyril Malargé, Chief Executive Officer 14
Slide 15: Operating performance by reporting unit
Operating performance by reporting unit 15 2024 Annual Results Presentation – 27 February 2025
Slide 16: France
France Organic growth in Q4: -2.0% Operating margin on business activity: 9.0% • Excluding aeronautics, growth relatively stable • CS Group margin up by around 2 points (+0.5%) • Impact of decline in activity in aeronautics sector Sector trends • Contraction in most sectors • Growth in defence and p
Slide 17: United Kingdom
United Kingdom Strong growth in private sector, Operating margin on business activity contraction in public sector remained high at 12.1% • Up 1.1 points from 2023 Down 9.4% in Q4 • High basis of comparison for SSCL: 25.2% growth in Q4 2023 • Expiration of a major contract • Delay in launch of a key
Slide 18: Specific UK quarterly factors in 2024 and 2025
Specific UK quarterly factors in 2024 and 2025 Sales breakdown by quarter Q3 2024 Q4 2024 Q1 2025e Q2 2025e Q3 2025e Q4 2025e • NS&I delay • NS&I delay • End of UKVI contract • End of UKVI contract • New contracts • Basis of comparison • Basis of comparison • New contracts for SSCL for SSCL • End of
Slide 19: Europe
Europe Scandinavia, Spain and Italy: between Operating margin on business activity up 8% and 10% growth 0.4 points vs 2023 Other countries: between -3% and -5% • Positive impact of Scandinavia, Spain, Benelux and Italy 19 2024 Annual Results Presentation – 27 February 2025
Slide 20: Solutions
Solutions Human Resources Solutions: +3.6% Operating margin on business Property Management Solutions: -1.7% activity: 12.5% • Excluding changes in scope (reallocation of business previously within the scope of SBS following its disposal), margin improved by 1.6 points 20 2024 Annual Results Present
Slide 21: Financial results for 2024
Financial results for 2024 Étienne du Vignaux – Chief Financial Officer 21
Slide 22: Income statement
Income statement 22 2024 Annual Results Presentation – 27 February 2025
Slide 23: Other operating income and expenses
Other operating income and expenses Including +11.1 M€ from the sale of 74Software shares 23 2024 Annual Results Presentation – 27 February 2025
Slide 24: Tax
Tax Normative rate excluding non-recurring items: c. 26% Tax rate expected to be c. 27% in 2025, including an impact of +1 point from an exceptional contribution in France 24 2024 Annual Results Presentation – 27 February 2025
Slide 25: Change in free cash flow
Change in free cash flow o/w SFT +€45m €m Free cash flow EBITDA WCR Tax, Investments, lease Free cash flow 2023 (reported) reorganisation payments, 2024 interest, other * On a 2024 accounting standards basis (IFRS 5) 25 2024 Annual Results Presentation – 27 February 2025
Slide 26: Net financial debt
Net financial debt €m 382.2 Net financial debt Free cash flow Changes in scope Dividends Purchase of treasury Changes in Net financial debt at 31/12/2023 and shares exchange rates at 31/12/2024 financial investments 26 2024 Annual Results Presentation – 27 February 2025
Slide 27: Solid balance sheet structure
Solid balance sheet structure Simplified balance sheet Assets + WCR (€m) 31/12/24 Gearing Leverage €135.9m 19% 0.6x 3,055.0 Gearing Leverage 3,655.2 31/12/23 €167.8m 49% 1.5x Net financial debt / Pensions – Post- Net financial debt / Equity employment EBITDA(1) benefits (1) Pro forma EBITDA before i
Slide 28: Diversified, accessible financing
Diversified, accessible financing Available undrawn amount of €1.3bn i.e. 66% of authorised amount(1) Maturities • Bonds: maturing July 2026 and July 2027 • Amortising tranche: €224m repayable until 2028 • Tranches due at maturity: €187m maturing in 2027 and 2028 • Multi-currency revolving credit fa
Slide 29: Outlook and targets
Outlook and targets Cyril Malargé, Chief Executive Officer 29
Slide 30: 2028 Plan
2028 Plan Europe Business mix Positioning Higher added-value A European leader in digital services A credible European alternative to 4 Strategic sectors Consulting ≥12% global operators of Rev. Public Sector Decision to focus on offering high value-added offers Technology mix Higher added-value Fin
Slide 31: Targets for 2026-2028
Targets for 2026-2028 10% to 11% Organic growth Operating margin 2 to 5 annual post-2025 % % External growth Free cash flow (% of revenue) 5% to 7% ~ € bn RoCE before tax c. 20% 31 2024 Annual Results Presentation – 27 February 2025
Slide 32: Background in 2025
Background in 2025 • Technology: a powerful driver of organisational transformation • Uncertainty still high in a number of European countries, particularly France • Unfavourable calendar effect in Q1 (one day shorter) • High basis of comparison in UK and aeronautics in H1 • Continued strong growth
Slide 33: Full-year targets for 2025
Full-year targets for 2025 Organic revenue growth Operating margin on Free cash flow business activity (as % of revenue) (as % of revenue) Between Between Between -2.5% and +0.5% 9.3% and 9.8% 5% and 7% with a low point in Q1: including a dilutive effect -5% to -6% arising from higher social securit
Slide 34: Sopra Steria
sopra Ss steria
Slide 35: Annexes
O5. Annexes
Slide 36: Sopra Steria: A European leader in digital transformation
Sopra Steria: A European leader in digital transformation Breakdown of revenue – Financial year ended 31 December 2024 Top 10 operating in Europe(1) €5.8bn 2024 revenue Europe: 36% >50,000 Employees Operations in nearly 30 countries End-to-end approach (1) PAC – IT Services – Preliminary Vendor Rank
Slide 37: Breakdown of change in consolidated revenue
Breakdown of change in consolidated revenue +402.7 -82.1 +18.1 -336.3 -30.9 Revenue Currency Scope Ordina (agent: Application of Organic Revenue 2023 (reported) effect effect IFRS 15) IFRS 5 growth 2024 37
Slide 38: Adjustments arising from implementation of IFRS 5
Adjustments arising from implementation of IFRS 5 38
Slide 39: Earnings per share
Earnings per share 2024s epored (€m) Net profit attributable to the Group (€m) 251.0 183.7 Weighted average number of shares in issue excluding treasury shares 20.14 20.22 Basic earnings per share (€) 12.46 9.08 Theoretical weighted average number of shares 20.33 20.55 Diluted earnings per share (€)
Slide 40: Breakdown of change in net financial debt
Breakdown of change in net financial debt 40
Slide 41: Simplified balance sheet
Simplified balance sheet 31/12/2023 31/12/2023 ae 24 restated* reported (€m) (€m) Goodwill 2,348.2 2,586.2 2,668.9 Allocated intangible assets 1743 2321 1248 Other fixed assets 345.2 307.9 304.3 Right-of-use assets 3844 4571 4571 Equity-accounted investments 10 185.9 185.9 Total fixed assets 3,253.0
Slide 42: Global workforce
Global workforce NB : Corporate Sustainability Reporting Directive (CSRD) 42
Slide 43: Changes in exchange rates
Changes in exchange rates Changes in exchange rates Average rate Average rate Change 2024 2023 (%) For €1/ % Pound sterling 0.8466 0.8698 427% Norwegian krone 11.6290 1.4248 -18% Swedish krona 11.4325 11.4788 +0.4% Danish krone 7.4589 7.4509 -0.1% Swiss franc 0.9526 0.9718 42.0% 43 — | 2024 Annual R
Slide 44: A core shareholder backing the corporate plan
A core shareholder backing the corporate plan Ownership structure at 31 December 2024 Pasquier Odin family One Equity Managers Treasury family Partners shares 53.2% 22.1% 22.3% 2.2% 0.2% Founders & Sopra Shares managed on Treasury shares Free float Management GMT behalf of employees 2.6% 19.6% Share
Slide 45: Achieving our climate goals
Achieving our climate goals Targets validated Results for 2024 CO2 emissions reduction trajectory (change vs 2019) (out to 2030) Scopes 1&2 Scopes 1 & 2 -52.7% 100 80 Scope 60 3 vs 2019 40 Scope 3 20 2030 Reducing our 2040 Offsetting unavoided environmental impact emissions -23.9% 0 In 2017 -3.4% -2
Slide 46: Alternative performance measures
Alternative performance measures • Restated revenue: Revenue for the prior year, expressed on the basis of the scope and exchange rates for the current year. • Organic revenue growth: Increase in revenue between the period under review and restated revenue for the same period in the prior financial