Slide 1: 2019 full-year results
2019 full-year results Analyst presentation March 12th, 2020
Slide 2: Speakers
Speakers JEAN-LOUIS BOUCHARD LAURENT ROUDIL ANGEL BENGUIGUI BRUNO GROSSI Chairman & CEO Managing Director Managing Director Advisor to the Chairman 2019 Full-Year Results 1
Slide 3: Agenda
Agenda A new 01 Message from Chairman & CEO 02 management team 03 2019 financial results 04 A unique business model 05 Outlook
Slide 4: Message from Chairman & CEO
01 Message from Chairman & CEO
Slide 5: 15-year overview
15-year overview 2019 Full-Year Results 4
Slide 6: A new management team
02 A new management team
Slide 7: Management team
Management team JEAN-LOUIS BOUCHARD LAURENT ROUDIL ANGEL BENGUIGUI BRUNO GROSSI Chairman & CEO Managing Director Managing Director Advisor to the Chairman 2019 Full-Year Results 6
Slide 8: Laurent Roudil, Managing Director
LAURENT ROUDIL Managing Director 2019 Full-Year Results 7
Slide 9: A new experienced management team
A new experienced management team Philippe Goullioud Chantal De Vrieze Laurent Caparros Eric Bazile Samira Draoua Emiliano Veronesi Carlos Perez-Herce Israël Garcia Valérie Clar Stéphane Hascoet Long Le Xuan Christophe Vanmalleghem 2019 Full-Year Results 8
Slide 10: 2019 financial results
oc 2019 - financial results
Slide 11: Angel Benguigui, Managing Director
ANGEL BENGUIGUI Managing Director 2019 Full-Year Results 10
Slide 12: Key figures
Key figures Cash flow from Revenue(1) ROP(1)(3) Net financial debt operating activities(1) €2.93 Bn €126 M €140 M €252 M stable +14.3% +€7 M 1,4x (2) (2) (2) vs. 2018 vs. 2018 EBITDA (1) From ongoing operations after restatement according to IFRS 5 regarding discontinued operations (2) At constant s
Slide 13: Robust revenue base, sharp increase in profitability
Robust revenue base Sharp increase in profitability Revenue from ongoing operations(3) 2019 revenue at iso-perimeter and standards is stable 2019 €2,927 M = stable Organic growth: -0.8% 2018 €2,927 M Significant impact of Italy embezzlement on TMF Pro-forma growth(2) +4,5% Recurring operating profit
Slide 14: Revenue by geographical area
Revenue(1) by geographical area 2019 revenue (%) 2018 revenue(2) (%) North America North & East Europe 7% (7%) 9% (9%) Solid performance in France (+5%) and Spain Spain France (+10%) 8% (7%) 53% (50%) Total Revenue in Italy (-21%) €2.9Bn Italy impacted for an estimated 10% (13%) amount of around € 1
Slide 15: 2018 Revenue bridge
2018 Revenue bridge In €M 2,846 -221 +374 2,999 -72 2,927 2,927 = stable 2018 IFRS 5 IFRS 15 2018 IFRS 16 2018 2019 Published impact impact Restated impact Like-for-like Published 2019 Full-Year Results 14
Slide 16: TMF at a glance
TMF at a glance TMF business revenue suffered from lag primarily Revenue from ongoing operations (3) in Italy : - 2019 €1,124 M 10.0% + • In revenue: ca. -€130 M 2019 pro-forma(2) €1,258 M 0.6% • In ROP(1): -€13 M 2018 €1,249 M Revenue impacted by Italy: €1,124 M (-10.0%) Recurring operating profit
Slide 17: Reinforcement of TMF management team globally
Reinforcement of TMF management team globally Chantal De Vrieze Samira Draoua Frances Weston Emiliano Veronesi Carlos Perez-Herce 2019 Full-Year Results 16
Slide 18: Technology Management & Financing
Technology Management & Financing Contract portfolio €6.2 Bn Stability of portfolio at original purchasing price Residual interest(1) 2.7% of the Original €3.0 Bn Purchase Price >2x covered by remarketing of assets and contract extensions €0.17 Bn Outstandings Original Residual interest (1) purchase
Slide 19: Digital Services & Solutions at a glance
Digital Services & Solutions at a glance Revenue from ongoing operations (2) Continuing sustained growth Services Products & Solutions in particular in Products & 2019 €1,131 M €1,802 M + Solutions (+10.3%) €671 M 7.4% 2018 €652 M €1,026 M €1,678 M South Europe and France contributed the most to the
Slide 20: Consolidated income statement
Consolidated income statement (In €M) 2018(1) 2019 Revenue 2,999 2,927 Recurring operating profit before amortisation of 110.9 126.2 ROP(2) in line with intangible assets from acquisitions guidance despite Recurring operating profit 106.7 124.2 embezzlement in Italy and thanks to the Non-recurring o
Slide 21: Steady NFD in 2019
Steady NFD(1) in 2019 Robust operating cash flow generation: -252 FCF 2019 = €63 M -252 • €140 M of cash flow from operating activities 140 8 -44 -27 8 • €8 M WCR inflow -21 -6 -28 thanks to close -26 monitoring -3 • €8 M net inflow on TMF own booked NFD Cash flow Lease TM&F WCR Financial CAPEX M&A(
Slide 22: Structure of Net Financial Debt
Structure of Net Financial Debt(1) In €M Bonds 284 -90 NFD constant vs. 2018: -189 • €252 M total of which €238 M related to own Net Bank debt cash booked TMF -102 contracts maturing -41 within 30 months • Leverage ratio (1.4x OCEANE -150 Net Cash -39 EBITDA) and gearing (0,5x) Euro PP -4 Schuldsche
Slide 23: Simplified consolidated balance sheet
Simplified consolidated balance sheet ASSETS (IN €M) 31/12/2018 31/12/2019(1) EQUITY & LIABILITIES (IN €M) 31/12/2018 31/12/2019(1) Goodwill 631 513 Equity 491 484 Other non-current assets 209 234 Net Financial Debt 252 252 Total assets related to leasing activities 410 404 Commitments on residual v
Slide 24: A unique business model
© Aunique —— business model
Slide 25: Econocom: a unique business model
Econocom : a unique business model Econocom is the only player on the enterprise transformation market that leverages digital solutions delivery through financing capabilities
Slide 26: The digital solutions builder
The digital solutions builder Key drivers Digital Services & Solutions, Provide a strong value the preferred partner for the digital proposition to customers with transformation of companies throughout end-to-end responsibility the entire value chain Benefit from positive market Technology Managemen
Slide 27: The Econocom TOUCH translated for a customer in the energy sector
The Econocom TOUCH translated for a customer in the energy sector €60 M of revenue in 2019: +33% growth in 2 years Contribution of the Econocom Galaxy Players for 80% of the customer's digital transformation Excellence Delivery on all services provided by the Group, including Satellites and a Global
Slide 28: Outlook
05 Outlook
Slide 29: 2020 financial objectives
2020 financial objectives Reduce Disposal of Cost reduction debt non-core businesses program continued 2019 Full-Year Results 28
Slide 30: 2020 on track to generate a new growth cycle
2020 on track to generate a new growth cycle Restart M&A initiatives Launch new customer- centric offerings Enhance human capital development Finalize the transformation plan 2019 Full-Year Results 29
Slide 31: Q&A
Q&A
Slide 32: Thank you
Thank you Contact relations investisseurs Contact relations presse: et relations actionnaires: info@capvalue.fr Arthur.rozen@econocom.com Tel. +33 1 80 81 50 00
Slide 33: Appendix
Appendix
Slide 34: Stock Exchange
Stock Exchange Equity table Number of shares: • 245,380,430 Treasury Stocks Share price(1): 10,7% • 2,10€ Holding companies held by Mr. Bouchard Listing place: Free float 36.4% (2) • Euronext Brussels 52.9% Market Cap • EBR: ECONB €515 M • ISIN: BE0974313455 Stock Indexes: • Bel Mid and Family Busin
Slide 35: CE COMOCOFTT)
CE COMOCOFTT)