Sopra Steria Group Sa · EURONEXT:SOP
Sopra Steria Group Sa — Shareholder Meeting (May 2023)
45 slides from Sopra Steria Group Sa's shareholder meeting presentation, May 24, 2023
Slide 1: 2023 Combined General Meeting of Shareholders
2023 Combined General Meeting of Shareholders Paris, 24th May 2023 at 2:30pm
Slide 2: Disclaimer
Disclaimer This document 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 the
Slide 3: Meeting schedule
Meeting schedule Agenda for the General Meeting Discussion Board of Directors’ reports – Vote Presentation of the 2022 accounts and operating position Statutory Auditors’ reports Closing Information about proposed resolutions 3 Combined General Meeting of Shareholders – 24th May 2023
Slide 4: Agenda for the General Meeting
Agenda for the General Meeting Notice published in the “Bulletin des Annonces Légales Obligatoires” on 5 May 2023 4 Combined General Meeting of Shareholders – 24th May 2023
Slide 5: Agenda (1/3)
Agenda (1/3) • Requiring the approval of the Ordinary General Meeting 1) Approval of the parent company financial statements for financial year 2022; 2) Approval of the consolidated financial statements for financial year 2022; 3) Appropriation of earnings for financial year 2022 and setting of the
Slide 6: Agenda (2/3)
Agenda (2/3) • Requiring the approval of the Ordinary General Meeting 9) Approval of the compensation policy for the Chief Executive Officer; 10) Approval of the compensation policy for Directors for their service; 11) Decision setting the total annual amount of compensation awarded to Directors for
Slide 7: Agenda (3/3)
Agenda (3/3) • Requiring the approval of the Ordinary General Meeting 19) Authorisation to be granted to the Board of Directors to allot existing or new free shares to employees and/or company officers of the Company and/or affiliated companies, subject to a cap of 1.1% of the share capital, entaili
Slide 8: Board of Directors' reports – Presentation of the 2022 accounts and operating position
Board of Directors’ reports – Presentation of the 2022 accounts and operating position Click to modify the mask text styles 8 Combined General Meeting of Shareholders – 24th May 2023
Slide 9: 2022 Annual Results
2022 Annual Results 9 Combined General Meeting of Shareholders – 24th May 2023
Slide 10: Sopra Steria, a European leader in digital transformation
Sopra Steria, a European leader in digital transformation Breakdown of revenue – Financial year ended 31 December 2022 Among the top 5 European digital services companies Among the top 12 operating in Europe 2022 revenue 50,000 Operations in End-to-end €5.1bn employees 30 countries approach France C
Slide 11: Ambitious corporate plan
Ambitious corporate plan Reference shareholder Organic growth Employee shareholding …in services and External growth Performance worldwide in software End-to-end approach Software Expansion of Consulting Entrepreneurial culture and Targeting specific verticals close customer relationships Tech Digit
Slide 12: Strategy built on clearly defined elements
Strategy built on clearly defined elements 100 European key accounts End-to-end approach Industrial approach 8 preferred verticals, 3 of which Strengthening of consulting DevOps and asset-based are strategic Tech & Digital platforms • Financial Services • Cloud, Cyber, AI, Data, Blockchain X-Shore •
Slide 13: …anchoring our strategy in sustainability
…anchoring our strategy in sustainability With three main ESG priorities 2040 objective(1) : -85% vs A proactive policy of bringing Digital sobriety 2015 more women into the Measuring the environmental impact of workforce and senior our clients’ systems 90% of our suppliers(2) to set management (rec
Slide 14: Good performance in 2022
Good performance in 2022 Sopra Steria is on track to reach its medium-term target of 10% for operating margin on business activity Organic Free cash revenue flow growth Operating margin Net on business profit margin activity 14 2022 Annual Results Presentation – 23 February 2023
Slide 15: Structural improvement in return on capital employed and performance
Structural improvement in return on capital employed and performance 8.9% 14.1% 287 8.1% 264 7.0% 11.4% 204 9.3% 5.6% 5.6% 4.8% 2020 2021 2022 2020 2021 2022 2020 2021 2022 1) Return on capital employed: (Profit from recurring operations after tax + Profit from equity-accounted companies) / (Equity
Slide 16: ESG 2022 performance in line with targets
ESG 2022 performance in line with targets CDP • Score of “A” for the 6th year running 2022: -68% vs 2015 (excl. impact of Covid-19), in line with the target of -85% in 2040 Great Place To Work certification • Response rate: 84% • Overall perception(2): 78% (up 6 pts) +0.7 pts in 2022 (33.1% of total
Slide 17: France
France Operating margin on business activity at 10% Strong 4th quarter: Up 9.5% 2022 2021 Growth driven by: (€m) (% Rev.) (€m) (% Rev.) France • Product lifecycle management Revenue 2,039.0 1,824.9 Organic growth (%) +9.7% • Cybersecurity Op. profit on business activity 204.4 10.0% 156.3 8.6% • Cons
Slide 18: United Kingdom
United Kingdom Operating margin on business activity higher than 10% Organic growth of 7.3%, delivered despite 2022 2021 already high growth of 13.9% in 2021 (€m) (% Rev.) (€m) (% Rev.) • NHS SBS and SSCL up 3.8% United Kingdom Revenue 890.6 823.1 • Defence and Security up 20.6% Organic growth (%) +
Slide 19: Other Europe
Other Europe H2 profitability close to 10% for countries in the reporting unit 2022 2021 Growth driven by Scandinavia and to a lesser extent by Spain, Benelux and Italy Other Europe (€m) (% Rev.) (€m) (% Rev.) The operating margin on business activity Revenue ee cas o 1,473.0 1,343.2 came to 6.2% (7
Slide 20: Sopra Banking Software
Sopra Banking Software Operating margin up 2.5% Contraction organic revenue growth mainly due to a downturn in services revenue 2022 2021 Software revenue up 1% (€m) (% Rev.) (€m) (% Rev.) • Subscriptions up 6% Sopra Banking Software Revenue 426.5 434.1 • Resilient licence sales relative to 2021 Org
Slide 21: Other Solutions
Other Solutions Operating margin on business activity at 13% 2022 2021 Human resources solutions grew by 7.2% Other Solutions (€m) (% Rev.) (€m) (% Rev.) Property management solutions grew by 2.2% Revenue 272.1 257.5 Solid Q4 for both businesses, with organic Organic growth (%) +5.6% growth of aroun
Slide 22: Income statement
Income statement Financial year 2022 2022 2022 2021 2021 (€m) (% of Rev.) (€m) (% of Rev.) Revenue 5,101.2 4,682.8 Organic growth 7.6% Operating profit on business activity 453.1 8.9% 379.2 8.1% Share-based payment expenses -23.2 -6.7 Amortisation of allocated intangible assets -32.3 -33.2 Profit fr
Slide 23: Simplified balance sheet
Simplified balance sheet Financial year 2022 31/12/2022 31/12/2021 (€m) (€m) Goodwill 1,943.9 1,984.3 Allocated intangible assets 108.3 131.8 Other fixed assets 261.3 216.4 Right-of-use assets 359.9 343.1 Equity-accounted investments 183.5 198.1 Fixed assets 2,857.0 2,873.8 Net deferred tax 58.5 99.
Slide 24: Outlook
Outlook 24 Combined General Meeting of Shareholders – 24th May 2023
Slide 25: Changes in scope in 2023
Changes in scope in 2023 Two acquisitions announced in 2022 and finalised at the start of 2023 Ownership 93.83% after closing of the public Consolidation 1st March 2023 offer 2022 results: Delisting procedure initiated • €91.9m in revenue • €5.8m in operating profit on business activity Consolidatio
Slide 26: Proposed tie-up with Ordina N.V.
Proposed tie-up with Ordina N.V. Key information on the proposed operation SHARE OWNERSHIP TRANSACTION SCHEDULE KEY TERMS IMPACT ON SOPRA STERIA STRUCTURE As of March 20, 2023 March 21 Block purchase price1: 2024E EPS (est.)4: €5.75/ share +1.2% Number of shares: Satisfaction of 90,015,795 condition
Slide 27: Sustained growth in revenues for Q1 2023
Sustained growth in revenues for Q1 2023 Revenue Q1 2022 Organic Total Q1 2023 Restated* growth growth (€m) (€m) (%) (%) France 589,9 538,4 + 9,6% + 14,9% United Kingdom 216,7 207,7 + 4,3% - 1,0% Other Europe 410,4 363,0 + 13,1% + 12,5% Sopra Banking Software 107,7 102,4 + 5,2% + 4,3% Other Solution
Slide 28: Financial targets for 2023 & 2024
Financial targets for 2023 & 2024 Organic revenue Operating Free cash flow growth margin on business activity For , Sopra Steria confirms its target of reaching an operating margin on business activity of around 28 Combined General Meeting of Shareholders – 24th May 2023
Slide 29: Statutory Auditors' reports
Statutory Auditors’ reports Click to modify the mask text styles 29 Combined General Meeting of Shareholders – 24th May 2023
Slide 30: Statutory Auditors' reports
Statutory Auditors’ reports • Report on the individual and consolidated financial statements • Special report on regulated-party agreements • Others Statutory Auditors’ reports 30 Combined General Meeting of Shareholders – 24th May 2023
Slide 31: Information about proposed resolutions
Information about proposed resolutions Text of the resolutions in the 2023 meeting brochure from page 80 31 Combined General Meeting of Shareholders – 24th May 2023
Slide 32: Approval of the financial statements and appropriation of earnings
Information on the proposed resolutions Approval of the financial statements and appropriation of earnings Resolutions 1 and 2 - Approval of the financial Resolutions submitted for approval at the statements Ordinary General Meeting Parent company and consolidated financial statements for financia
Slide 33: Compensation of company officers
Information on the proposed resolutions Compensation of company officers Resolution 4 - Approval of disclosures relating to the Resolutions submitted for approval at the compensation of company officers mentioned in Article L. 22-10-9 I of the French Commercial Code Ordinary General Meeting Meeting
Slide 34: Compensation of company officers – policy
Information on the proposed resolutions Compensation of company officers Resolutions 8 and 9 - Compensation policy Resolutions submitted for approval at the of the Chairman of the Board of Directors Ordinary General Meeting of the Chief Executive Officer Meeting brochure 2023 Setting a target
Slide 35: Decision setting the amount of compensation awarded to Directors
Information on the proposed resolutions Decision setting the amount of compensation awarded to Directors Resolution 11 - Decision setting the amount of Resolutions submitted for approval at the compensation awarded to Directors for their service Ordinary General Meeting Proposed compensation for f
Slide 36: Reappointment and appointment of Directors
Information on the proposed resolutions Reappointment and appointment of Directors Resolutions 12, 13 and 14 – Reappointments Resolutions submitted for approval at the Sylvie Rémond 4-year term Ordinary General Meeting Jessica Scale 4-year term Meeting brochure 2023 BDC Michael Gollner 4-year
Slide 37: Share buyback programme
Information on the proposed resolutions Share buyback programme Resolution 18 - Autorisation to carry out transactions on Resolutions submitted for approval at the company shares Authorisation renewed for a period of 18 Ordinary General Meeting months 2022 Universal Registration Document Limited
Slide 38: Financial delegations for employee and officer share ownership
Information on the proposed resolutions Financial delegations aimed at giving employees and/or company officers a stake in the share capital Resolution 19 - Allotment of free shares to employees Resolution submitted for approval at the and company officers Extraordinary General Meeting Authorisati
Slide 39: Powers
Information on the proposed resolutions Powers Resolution 21 - Powers granted to carry out all legal Resolutions submitted for approval at the formalities Ordinary General Meeting 39 Combined General Meeting of Shareholders – 24th May 2023
Slide 40: Discussion
Discussion Click to modify the mask text styles 40 Combined General Meeting of Shareholders – 24th May 2023
Slide 41: 41 Combined General Meeting of Shareholders – 24 th May 2023
41 Combined General Meeting of Shareholders – 24th May 2023
Slide 42: Vote
Vote Click to modify the mask text styles 42 Combined General Meeting of Shareholders – 24th May 2023
Slide 43: Closing
Closing Click to modify the mask text styles 43 Combined General Meeting of Shareholders – 24th May 2023
Slide 44: Closing – 2023 Combined General Meeting
Closing – 2023 Combined General Meeting
Slide 45: 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 year