Slide 1: 2010 Annual Results Presentation
2010 Annual Results Presentation 22 February 2011 Unissons nos Talents TALENTED TOGETHER Annual Results – 22 February 2011 1
Slide 2: Highlights 2010
Highlights 2010 Steady growth – very strong in 4th quarter 2010 Q4 CSSI France + 6.0% + 9.4% CSSI Europe + 1.2% + 9.7% Axway + 11.8% + 12.3% Margin improvement Group reaches symbolic 10% margin level CSSI France margin is close to 10% Axway is almost at 15% margin Financial solidit
Slide 3: Agenda
Agenda 2010 Achievements Complementary Information Sopra Group New Wins and Commentary Axway New Wins and Commentary Strategy and Outlook Annual Results – 22 February 2011 3
Slide 4: Revenue (€m)
Revenue (€m) 1,169.9 1,094.3 Growth: Full Year Q4 Total +6.9% +11.2% Organic +6.2% +10.0% 786.1 741.6 Organic Growth 2010 Q4 CSSI* France + 6.0% + 9.4% CSSI* Europe + 1.2% + 9.7% Axway + 11.8% + 12.3% 170.5 175.4 182.2 208.4 2009 2010 *CSSI: Consulting and Systems & Solutions Integration Annual Resu
Slide 5: Income Statement
Income Statement 31/12 Change 31/12 31/12 2010 2009/2010 2010 2009 Restated (CVAE) Restated €m % €m % €m % €m % Revenue 1,169.9 1,169.9 1,094.3 75.6 Staff costs - Employees -783.7 -783.7 -737.4 -46.3 6.3% 7% Staff costs - Contractors -84.9 -84.9 -74.3 -10.6 14.3% Operating expenses -169.9 -180.3 -18
Slide 6: Operating Profit by Division
Operating Profit by Division 2010 2010 2009 Restated (CVAE) CSSI Sopra Group (ex. Axway) Rev enue €m 961.5 961.5 912.1 Profit from recurring operations €m / % 85.5 8.9% 76.2 7.9% 64.5 7.1% Operating profit €m / % 83.7 8.7% 74.4 7.7% 46.6 5.1% Net profit €m / % 48.2 5.0% 48.2 5.0% 17.2 1.9% of which
Slide 7: Balance Sheet
Balance Sheet 31/12 31/12 €m 2010 2009 Goodwill 369.9 356.6 Allocated intangible assets 22.0 23.1 Other fixed assets 44.6 40.4 Assets 436.5 420.1 Trade accounts receivable (net) 368.4 333.9 Other assets and liabilities -383.1 -334.9 Operating assets and liabilities -14.7 -1.0 ASSETS + WCR 421.8 419.
Slide 8: Shareholders’ Equity
Shareholders’ Equity M€ Position at 31 December 2009 281.7 Dividends - 9.4 Net profit - Group share 74.8 Capital increase through exercise of share subscription options 2.6 Acquisition or disposal of treasury shares - 0.5 Share-based payments 0.8 Actuarial differences - 2.0 Change in financial instr
Slide 9: Changes in Net Debt
Changes in Net Debt 2010 2009 In m illions of euros Net debt at beginning of period (A) 137.4 198.2 Cash from operations before changes in working capital 124.7 94.6 Income taxes paid -33.8 -32.2 Changes in working capital requirements 20.9 50.2 Net cash flow from operating activities 111.8 112.6 Ne
Slide 10: Financial Ratios
Financial Ratios 18.73 2008 2009 2010 10.05 74% 6.86 6.35 4.98 49% 2.33 16% 1.79 1.52 0.48 Basic earnings per Net Debt / Equity Net Debt / EBITDA** OP* / Net share (€) Borrowing Cost <100% <3 >5 Banking Covenants *OP: Operating Profit **EBITDA 2010: €119.8 m Annual Results – 22 February 2011 10
Slide 11: Agenda
Agenda 2010 Achievements Complementary Information Sopra Group New Wins and Commentary Axway New Wins and Commentary Strategy and Outlook Annual Results – 22 February 2011 11
Slide 12: Business Sector & Vertical Market Positioning
Business Sector & Vertical Market Positioning Consulting Retail Axway Banking Public Sector 11% 11% 8% 8% 18% 18% 22% 22% Fixed-price 16% 16% 13% 13% Proprietary Projects Solutions 13% 13% Telecoms 7% 7% 10% 10% Insurance 28% 17% 17% 17% 17% 28% 20% 20% Staffing Application Services, Outsourcing Man
Slide 13: Strong Positioning in France
Strong Positioning in France Switzerland USA / Asia Benelux Italy United Kingdom 6% 6% 7% 7% Spain 6% 6% 7% 7% 20% 20% Europe France France ex. France 73% 73% 81% 81% Revenue: Sopra Group & Axway Sopra Group Revenue (ex. Axway) Annual Results – 22 February 2011 13
Slide 14: Axway: Balanced Geographies
Axway: Balanced Geographies Asia Asia 2% 2% 2% 2% USA USA 37% 34% 34% 34% 34% 37% France France 40% 40% 27% 27% 24% 24% Europe Europe ex. France ex. France Axway Revenue Axway Revenue ($1=1€) Annual Results – 22 February 2011 14
Slide 15: Axway: Focus on Revenue
Axway: Focus on Revenue +21% +20% +2% +11% Services 27% 27% 36% 36% Licences 37% 37% Maintenance 2007 2008 2009 2010 Type of Revenue Licence Revenue Annual Results – 22 February 2011 15
Slide 16: Workforce (excluding contractors)
Workforce (excluding contractors) 13,310 12,450 12,450 8,825 8,210 8,335 ex. France France Groupe 4,240 4,485 4,115 December 2008 December 2009 December 2010 Annual Results – 22 February 2011 16
Slide 17: Agenda
Agenda 2010 Achievements Complementary Information Sopra Group New Wins and Commentary Axway New Wins and Commentary Strategy and Outlook Annual Results – 22 February 2011 17
Slide 18: 2010: Brief operations recap
2010: Brief operations recap Significant growth of large deals European activities back on track Banking software products (Evolan) begin to attract foreign clients and grow outside France with French clients Pursuit of the Services Continuum strategy in order to serve client demand on large
Slide 19: Operational objectives for 2011
Operational objectives for 2011 Capitalise on continued leadership in France Key Accounts Vertical Markets Position offering on a European scale Consulting, Integration and Application Outsourcing Investment in Financial Solutions (Evolan) Client Proximity – Delivery Quality - Industri
Slide 20: Agenda
Agenda 2010 Achievements Complementary Information Sopra Group New Wins and Commentary Axway New Wins and Commentary Strategy and Outlook Annual Results – 22 February 2011 20
Slide 21: Axway’s Offering
Axway’s Offering • Axway is the world-wide leader of “Business Interaction Networks” • Platform guarantees, secures and governs all electronic exchanges necessary to an enterprise – Internally: factories, depots, sales points, mother companies, subsidiaries, etc. – Externally: clients, suppliers, go
Slide 22: Distribution
Distribution • Global Geographic Coverage – Undeniable leader in Europe – Major player and strong growth in the US – Established partner in Asia • Quality approach specific to Finance and Supply Chain verticals worldwide 22 | © 2010 Axway | All rights reserved.
Slide 23: Marketing, R&D, Support
Marketing, R&D, Support • Savoir-faire recognised by leading industry analysts – Leader in Gartner Group’s MFT, B2B, and eMail “Magic Quadrants” • Onshore/offshore infrastructure in place, capable of optimising maintenance, support and innovation 23 | © 2010 Axway | All rights reserved.
Slide 24: G&A and Management
G&A and Management • Systems complete, autonomous, worldwide and specific to a software developer – Finance, Legal, HR, etc. • International, highly qualified management team with M&A experience – Viewlocity – Cyclone Commerce – B2B activity of Atos Origin in Germany – Tumbleweed 24 | © 2010 Axway |
Slide 25: Highlights 2010
Highlights 2010 • Strong growth in Licence Sales – Strong performance in H1 partially result of delayed 2009 signings – Sustained activity in H2 on the client base and in new business • Low growth in Services – Low closing rate at year-end 2009 • Year of infrastructure rationalization – But a strong
Slide 26: 2011 Objectives
2011 Objectives • Normal level of licence sales expected – Good outlook in the US thanks to new regulatory issues and the merger with Tumbleweed – Major offerings sold in all group geographies • Services activity strong in H1, needs to be built out in H2 • Deep reworking of Maintenance revenue strea
Slide 27: A Strategy in Motion
A Strategy in Motion The separation of Sopra Group and Axway remains a key strategic element Unissons nos Talents TALENTED TOGETHER Annual Results – 22 February 2011 27
Slide 28: Axway’s ambitious independence initiative
Axway’s ambitious independence initiative Objective: Join the $500m software developer club Initiative is founded on existing company strengths Top quality management team Large, well-established client base State of the art technology platform Credibility of announced economic performan
Slide 29: Ambitions of the new Sopra Group
Ambitions of the new Sopra Group Objective: be a top quality player at the European level Initiative built on existing company strengths Proven track record: management team and company governance Hybrid business model (services and solutions) Strong position in France in vertical markets
Slide 30: Outlook
Outlook For 2011 Sopra Group forecasts solid organic growth and a slight improvement in its current operating margin Axway forecasts solid organic growth and a slight improvement in its current operating margin 3 year horizon for the new Sopra Group Sustained organic growth Acquisitions