Sopra Steria Group Sa · EURONEXT:SOP
Sopra Steria Group Sa — Sopra Group — H1 2008 Earnings Presentation
24 slides from Sopra Steria Group Sa's earnings presentation, Sep 2, 2008
Slide 1: Half-Year 2008 Results Presentation
Half-Year 2008 Results Presentation 2 September 2008 Unissons nos Talents TALENTED TOGETHER Half-Year Results Presentation – 2 September 2008 1
Slide 2: Group Revenue (€m)
Group Revenue (€m) 549.6 24.7 483.3 Growth : H1 Q2 22.7 Total +13.7% +15.1% Organic +12.3% +14.0% 338.8 288.4 Organic Growth: H1 Q2 Management Consulting +8.8% +8.4% SSI* France +15.6% +19.3% SSI* Europe +6.6% +7.1% Axway +8.2% +4.9% 104.4 113.8 67.8 72.3 1st Half 2007 1st Half 2008 *SSI: Systems &
Slide 3: Income Statement
Income Statement First Half First Half €m 2008 2007 Revenue 549.6 483.3 Staff costs - Employees - 360.8 - 324.7 Staff costs - Contractors - 47.5 - 37.5 Operating expenses - 92.9 - 79.8 Depreciation and provisions - 8.0 - 6.8 Profit from recurring operations 40.4 7.4% 34.5 7.1% Other operating income
Slide 4: Profit by business line
Profit by business line First Half First Half Full Year 2008 2007 2007 PRO** PRO PRO €m Revenue Revenue Revenue % margin % margin % margin Group 549.6 40.4 483.3 34.5 1,001.4 90.8 7.4% 7.1% 9.1% Consulting 24.7 2.5 22.7 2.2 43.9 4.5 10.1% 9.7% 10.3% SSI* France 338.8 27.6 288.4 23.0 597.5 52.3 8.1%
Slide 5: Balance Sheet
Balance Sheet 30/06 30/06 31/12 €m 2008 2007 2007 Goodwill 299.7 297.2 300.6 Other assets 43.8 37.0 38.2 Other assets and liabilities 59.1 36.3 40.3 Assets 402.6 370.5 379.1 Shareholders' Equity 246.0 221.6 248.8 Net debt 156.6 148.9 130.3 Capital invested 402.6 370.5 379.1 Half-Year Results Present
Slide 6: Shareholder Equity
Shareholder Equity €m Position at 31 December 2006 248.8 Dividends - 19.3 Net profit - Group share 24.7 Capital increase through exercise of share options 0.4 Share-based payments 0.2 Actuarial differences 0.4 Translation adjustments - 9.2 Position at 30 June 2007 246.0 Half-Year Results Presentatio
Slide 7: Variation of net debt
Variation of net debt 30/06 30/06 31/12 €m 2008 2007 2007 Net debt at opening 130.3 97.7 97.7 Gross cash flow from operations before net financial 42.0 40.3 104.6 debt and tax Tax paid - 10.1 - 22.8 - 38.2 Changes in working capital requirements - 12.8 - 7.9 - 14.7 Net cash flow from operations 19.1
Slide 8: Financial Ratios
Financial Ratios 67% 64% 52% 4.80 € 30/06/2007 31/12/2007 30/06/2008 2.12 € 1.84 € Net profit per share Net debt / Equity Half-Year Results Presentation – 2 September 2008 8
Slide 9: Offerings and Vertical Markets
Offerings and Vertical Markets Information presented at year-end 2007 Retail Consulting Fixed-Price Projects Banking Public 7% 7% Sector Axway 4% 4% 6% 14% 14% 6% 16% 24% 24% 16% 15% 15% Staffing 18% 18% 13% 6% 6% Insurance 13% 12% 12% Proprietary Telecoms Solutions 16% 16% 30% 30% 19% 19% Applicati
Slide 10: Axway Revenue Breakdown
Axway Revenue Breakdown Information presented at year-end 2007 Asia USA 2% 2% 20% 20% France Services Licences 42% 36% 36% 34% 34% 42% Europe ex. France 36% 36% 30% 30% Maintenance Territory en % Type en % Chiffre d’affaires Axway Chiffre d’affaires Axway Half-Year Results Presentation – 2 September
Slide 11: Group employees (ex. contractors)
Group employees (ex. contractors) 12110 11320 10760 8220 7360 7580 ex. France France Group 3740 3890 3400 June 2007 December 2007 June 2008 Half-Year Results Presentation – 2 September 2008 11
Slide 12: Comments & Outlook
Comments & Outlook Unissons nos Talents TALENTED TOGETHER Half-Year Results Presentation – 2 September 2008 12
Slide 13: State of the market in 2008
State of the market in 2008 Market still growing (6-7%) Growth more or less strong depending on the business Growth drivers Technology cycles Outsourcing Business combinations Every IT services company has made its own strategic choices Service lines - Offerings Economic sectors Geographic positions
Slide 14: Sopra Group's Business Model
Sopra Group’s Business Model Information presented at year-end 2007 4 well-identified business lines, with high potential for margin improvement, capitalizing on extensive Group “savoir-faire” Consulting 11% 11% Axway 15% 15% 12% 62% 62% 12% Proprietary Systems Solutions Integration & Application Ou
Slide 15: Confirmation of strategic choices
Confirmation of strategic choices Vertical sectors Acceleration in Public Sector, Utilities and selected blue-chip accounts Geographic positioning Be among the Top 3 in France Reinforce our presence in the European countries in which we already have significant operations Targeted and/or strategic a
Slide 16: Pursuit of major transformation programs
Pursuit of major transformation programs Industrialisation Offerings, partnerships, major client accounts Banking solutions: a European ambition Axway: a global project Consulting: reinforce our positions European subsidiaries: amplify the successes Half-Year Results Presentation – 2 September 2008
Slide 17: Industrial Strategy and Commercial Success (1/4)
Industrial Strategy and Commercial Success (1/4) A strategy adapted to our Business Model and our markets A “15-85” ratio targeted at year-end 2009 15% of HR offshore 85% of HR onshore A “20-80” ratio targeted long term 20% of HR offshore 80% of HR onshore Activities eligible for offshore production
Slide 18: Industrial Strategy and Commercial Success (2/4)
Industrial Strategy and Commercial Success (2/4) Industrial strategy developed and operational for several years Big investments in Infrastructures Support teams Methods, tools, processes Big investments in training Learning to share cultures and languages Learning to share project management Learni
Slide 19: Industrial Strategy and Commercial Success (3/4)
Industrial Strategy and Commercial Success (3/4) Platforms deployed securely and progressively Onshore France: 8 platforms (3000 staff) UK: 1 platform Spain: 2 platforms Offshore In India, for the French and English markets In Spain and Morocco for the French market In Romania for Axway’s R&D (In Bu
Slide 20: Industrial Strategy and Commercial Success (4/4)
Industrial Strategy and Commercial Success (4/4) Onshore and offshore positioning adapted to demand Long term goal, 15% to 20% of staff offshore, a ratio which corresponds to our Business Model End End 2008 2009 Offshore staff 1,200 1,900 % of staff offshore 10% 15% Teams reinforced when necessary b
Slide 21: Why do clients choose Sopra Group?
Why do clients choose Sopra Group? Proximity and knowledge of their project needs Robustness of the industrial strategy put in place Credibility of our offshore services and procedures Level of quality and client services maintained despite the distance involved in project management Half-Year Resul
Slide 22: A pertinent strategy delivers commercial success
A pertinent strategy delivers commercial success Among the multiple contracts won in the first half of the year: ArcelorMittal Capita EADS (Airbus / Eurocopter) France Telecom (Billing Orange UK) SFR Half-Year Results Presentation – 2 September 2008 22
Slide 23: An ambitious project for 2010
An ambitious project for 2010 Information presented at year-end 2007 Big ambitions for 2010 Double revenue in three years: 1.5 to 2 billion euros Rapidly reach an operating margin of 10% Roll out Axway’s business plan Make geographically-focused acquisitions to reinforce the current positioning Iden
Slide 24: Half-Year 2008 Results Presentation
Half-Year 2008 Results Presentation 2 September 2008 Unissons nos Talents TALENTED TOGETHER Half-Year Results Presentation – 2 September 2008 24