Sopra Steria Group Sa · EURONEXT:SOP
Sopra Steria Group Sa — Non-Deal Roadshow (December 2016)
33 slides from Sopra Steria Group Sa's roadshow presentation, December 2016
Slide 1: Roadshow USA
ROADSHOW USA November - December 2016 Delivering Transformation. Together.
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements subject to certain risks and uncertainties that may affect the Group’s future growth and profitability. Readers are reminded that licence agreements, which often represent investments for clients, are signed in greater numbers in the s
Slide 3: Content
CONTENT 1|Company’s overview 2|Objectives 3|Financial performance - H1 2016 - Q3 2016 4|Strategy 5|Annexes 3 USA Roadshow - November - December 2016
Slide 4: Company's Overview
COMPANY’S OVERVIEW 4 USA Roadshow - November - December 2016
Slide 5: Sopra Steria at 30/06/2016
SOPRA STERIA AT 30/06/2016 EUROPEAN LEADER IN DIGITAL TRANSFORMATION 2015 revenue More than 39,000 Present in over 20 An end-to-end of €3.6bn employees countries offering Top 5 European digital services companies Top 10 operating in Europe Revenue at 30/06/2016 Rest of the World Business Process Oth
Slide 6: Share Ownership Structure at 31/10/2016
SHARE OWNERSHIP STRUCTURE AT 31/10/2016 A STABLE SHAREHOLDER BASE FOR AN INDEPENDANT PROJECT Pasquier Odin Managers Family Family 2.4 % 69.0 % 28.6 % Founders & Sopra GMT Holdings managed on Treasury Management Soderi Free float 19.7 % behalf of employees shares 3.1 % Shareholders’ agreement 22.8 %
Slide 7: Western Europe IT Services Market Structure
WESTERN EUROPE IT SERVICES MARKET STRUCTURE Sopra Steria 2015 Market Share Market Sopra Steria Market Share Main competitors in Western Europe €bn / % 2015 2015 2015 IBM France 21.7 1.4 6.3 % HP UK 63.0 1.1 1.7 % Accenture CGI Germany 28.5 0.2 0.8 % Capgemini Other Western AtoS Europe 67
Slide 8: Market Share Gains Dynamic in Europe
MARKET SHARE GAINS DYNAMIC IN EUROPE FY 2015 9M 2016 Revenue organic growth Europe o/w FR Europe o/w FR Accenture* (FY 2015 & FY 2016) + 10.0 % NA + 11.0 % NA IBM* (FY 2015 & 9M 2016 - EMEA) - 2.0 % NA - 1.7 % NA Atos (excl. Worldline) - 0.1 % + 0.5 % + 0.6 % + 3.1 % CGI* (FY 2015 & FY 2016) - 2.6 %
Slide 9: Sopra Steria Historical Performance
SOPRA STERIA HISTORICAL PERFORMANCE 3584 3370 Revenue (€m) Operating profit on business activity (€m) 1349 1216 1050 964 958 912 856 781 672 556 37 47 63 76 82 65 86 93 110 109 231 246 2014 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2015 Pro forma** Total growth 23% 21% 16% 10% 12% -5% 5% 9%
Slide 10: Historical Net Profit & Dividend
HISTORICAL NET PROFIT & DIVIDEND 1,9 1,9 1,9 2 Net profit 90 1,8 attributable to 1,7 1,7 1,65 1,65 Axway (€m) 1,6 Net profit attributable to 70 8 the Group 1,35 1,4 (€m) Dividend (€) 1,1 1,2 2 50 11 * Axway spin off 1 8 June 2011, Sopra Group AGM approved the 4 distribution by Sopra Group to its sha
Slide 11: Objectives
OBJECTIVES 11 USA Roadshow - November - December 2016
Slide 12: Recap of Targets for 2016
RECAP OF TARGETS FOR 2016 Organic revenue growth of between 3% and 5% Operating margin on business activity of more than 7.5% Strong increase in free cash flow 12 USA Roadshow - November - December 2016
Slide 13: Recap of Targets for 2017
RECAP OF TARGETS FOR 2017 Revenue of between €3.8bn and €4.0bn* * Set up in 2014 at a EUR/GBP exchange rate of 0.78 (0.90 as of 30/10/2016) – ie a difference of (-)13.3% Operating margin on business activity of between 8% and 9% 13 USA Roadshow - November - December 2016
Slide 14: Financial Performance
FINANCIAL PERFORMANCE - H1 2016 - Q3 2016 14 USA Roadshow - November - December 2016
Slide 15: Operating Performance by Division
OPERATING PERFORMANCE BY DIVISION KEY FIGURES FOR H1 2016 Operating profit on Revenue business activity H1 2015 Organic Total H1 2016 H1 2016 H1 2015 Restated* growth growth (€m) (% du Rev.) (% of Rev.) (€m) (%) (%) France 778,8 711,1 + 9,5% + 16,9% 8,6% 8,0% of which C&SI 677,6 607,8 + 11,5% + 20,4
Slide 16: Income Statement
INCOME STATEMENT FIRST-HALF 2016 H1 2016 H1 2016 H1 2015 H1 2015 (€m) (% of Rev.) (€m) (% of Rev.) Revenue 1,878.8 1,768.1 Organic growth* 5.4% Operating profit on business activity 134.2 7.1% 107.4 6.1% Expenses related to stock options and related items - 10.2 - 0.4 Amortisation of allocated intan
Slide 17: Change in Net Financial Debt for the 1st Half-Year 2016
CHANGE IN NET FINANCIAL DEBT FOR THE 1ST HALF-YEAR 2016 IMPROVED FREE CASH FLOW 800 - 104.8 719.6 700 + 2.0 + 9.3 + 5.3 - 14.1 - 86.5 Net financial debt (€m) 600 vs. - €25.0m at 30/06/2015 530.8 500 vs. - €138.3m at 30/06/2015 Normal seasonality: 400 First-half typically cash consuming 300 200 Net f
Slide 18: Q3 2016 Performance
Q3 2016 PERFORMANCE REVENUE EVOLUTION BY DIVISION IN Q3 2016 Revenue Q3 2015 Organic Total Q3 2016 Restated* growth growth (€m) (€m) (%) (%) France 356,9 338,6 + 5,4% + 12,4% of which C&SI 309,5 290,4 + 6,6% + 14,9% of which I2S 47,5 48,2 - 1,5% - 1,5% United Kingdom 217,4 215,0 + 1,1% - 15,3% Other
Slide 19: Strategy
STRATEGY 19 USA Roadshow - November - December 2016
Slide 20: Project Orientation
PROJECT ORIENTATION A PARTNER IN OUR CLIENTS’ DIGITAL TRANSFORMATION Integrated end-to-end European partner for digital transformation • European operator A • End-to-end provider differentiated • Focus on large clients and priority vertical markets positioning • Capacity for innovation • Partner in
Slide 21: Continuing Strategic Development
CONTINUING STRATEGIC DEVELOPMENT AS PREVIOUSLY LAID OUT Integrated end-to-end European partner for digital transformation 21 USA Roadshow - November - December 2016
Slide 22: A Strong Ambition in the Banking Vertical
A STRONG AMBITION IN THE BANKING VERTICAL A strategic challenge A unique asset Major market €760m in revenue Key role of Software Long-standing client relationships Front and back office needs Industry- and tech-specific solutions Impact of digital End-to-end offering Evolving sector A comprehensive
Slide 23: A Policy of Targeted Acquisitions
A POLICY OF TARGETED ACQUISITIONS Leading developer of An innovative startup Consulting firm specialising in specialised finance and developing digital solutions industrial and logistics property management for property management and organisation software, ranked 16 among optimisation No. 2
Slide 24: Annexes
ANNEXES 24 USA Roadshow - November - December 2016
Slide 25: United Kingdom - Situation as of 30/06/2016
UNITED KINGDOM - SITUATION AS OF 30/06/2016 RESILIENT CONTRACT TYPES UK revenue = 26% of Group revenue* Cyclical contracts 22% 78% of UK revenue is resilient TYPE Business Process Outsourcing, Infrastructure OF REV Management, Application Maintenance Multi-year contracts (3-10 years) 78% Resilie
Slide 26: Revenue by Country
REVENUE BY COUNTRY FOR THE PERIOD ENDED 30/06/2016 SERVICES REVENUE, PERIOD ENDED 30/06/2016 SOLUTIONS REVENUE, PERIOD ENDED 30/06/2016 Other Europe H1 2016 revenue for Other Europe = €356m Rest of the World Germany = 33% Spain = 16% Italy = 8% Switzerland = 6% 12% BeLux = 9% Scandinavia = 28% 22% F
Slide 27: Solutions Revenue
SOLUTIONS REVENUE FOR THE PERIOD ENDED 30/06/2016 SOLUTIONS REVENUE BY PRODUCT SOLUTIONS REVENUE BY BUSINESS LINE Property Management Solutions Managed Services 10% 15% Licences Sopra HR 12% 29% €261M Sopra €261M 50% Software Banking 61% Software Integration 23% Maintenance services Sopra Banking So
Slide 28: Earnings per Share
EARNINGS PER SHARE FIRST-HALF 2016 H1 2016 H1 2015 (€m) (€m) Net profit - attributable to Group (€m) 54.0 26.9 Weighted average number of shares in issue 20.01 19.73 excluding treasury shares Basic earnings per share (€) 2.70 1.36 Theorical weighted average number of shares 20.06 19.80 Fully diluted
Slide 29: Change in Net Financial Debt
CHANGE IN NET FINANCIAL DEBT FIRST-HALF 2016 H1 2016 H1 2015 (€m) (€m) Net debt at beginning of period (A) 530.8 442.4 Cash flow from operations before cost of net financial debt and tax* 140.2 102.2 Tax paid - 33.0 - 6.1 Change in operating working capital requirement - 172.9 - 226.0 Net cash flow
Slide 30: Sound Financial Position at 30/06/2016
SOUND FINANCIAL POSITION AT 30/06/2016 DEBT COVENANTS AND LIQUIDITY Net financial debt 30/06/2016 30/06/2016 at 30/06/2016: Amount used Amount authorised €719.6m (€m) (€m) Bond 180.0 180.0 Syndicated loan - Tranche A € 180.0 180.0 EBITDA leverage: Syndicated loan - Tranche B £ 87.1 87.1 2.2 (max. 3.
Slide 31: Simplified Balance Sheet
SIMPLIFIED BALANCE SHEET 30/06/2016 30/06/2016 31/12/2015 (€m) (€m) Goodwill 1,571.9 1,586.9 Allocated intangible assets 172.1 186.5 Other fixed assets 160.9 162.8 Equity-accounted investments 192.6 154.4 Fixed assets 2,097.5 2,090.7 Net deferred tax 152.3 127.0 Trade accounts receivable (net) 1,118
Slide 32: UK Pension Fund Deficit Net of Tax at 30/06/2016
UK PENSION FUND DEFICIT NET OF TAX AT 30/06/2016 DEFICIT OF ABOUT €200M 250 230 220 222 Deficit net of tax stable vs. 210 200 30/06/2015 Deficit net of tax (€m) 190 Increase in liabilities vs. 31/12/2015 170 due to reduced discount rate 150 Annual additional cash contribution 130 125 of £17m unchang
Slide 33: 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 the restated revenue for the same period in the prior financial
Sopra Steria Group — Non-Deal Roadshow (December 2016) on 6ix