Sopra Steria Group SA · EURONEXT:SOP
Sopra Steria Group SA — Shareholder Meeting (May 2024)
48 slides from Sopra Steria Group SA's shareholder meeting presentation, May 21, 2024
Slide 1: 2024 Combined General Meeting of Shareholders
2024 Combined General Meeting of Shareholders Paris, 21st May 2024 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: Agenda for the General Meeting
01 Agenda for the General Meeting 05 Discussion 06 Board of Directors’ reports – 02 Presentation of the 2023 accounts and operating position Vote 03 Statutory Auditors’ reports 07 Closing 04 Information about proposed resolutions 3 Combined General Meeting of Shareholders – 21st May 2024
Slide 4: Agenda for the General Meeting
Agenda for the General Meeting Notice published in the “Bulletin des Annonces Légales Obligatoires” on 3 May 2024 4 Combined General Meeting of Shareholders – 21st May 2024
Slide 5: Agenda (1/4)
Agenda (1/4) • Requiring the approval of the Ordinary General Meeting 1) Approval of the parent company financial statements for financial year 2023; 2) Granting of final discharge to the Board of Directors; 3) Approval of the consolidated financial statements for financial year 2023; 4) Appropriati
Slide 6: Agenda (2/4)
Agenda (2/4) • Requiring the approval of the Ordinary General Meeting 10) Approval of the compensation policy for Directors for their service; 11) Decision setting the total annual amount of compensation awarded to Directors for their service at €700,000; 12) Reappointment of Pierre Pasquier as a Di
Slide 7: Agenda (3/4)
Agenda (3/4) • Requiring the approval of the Extraordinary General Meeting 21) Authorisation to be granted to the Board of Directors to retire any shares that the Company may have acquired and to reduce the share capital accordingly; 22) Delegation of authority to be granted to the Board of Director
Slide 8: Agenda (4/4)
Agenda (4/4) • Requiring the approval of the Extraordinary General Meeting 27) Delegation of authority to be granted to the Board of Directors to issue ordinary shares and/or other securities giving access to the Company’s share capital and/or the share capital of its subsidiaries, without pre-empti
Slide 9: Board of Directors' reports – Presentation of the 2023 accounts and operating position
Board of Directors’ reports – Presentation of the 2023 accounts and operating position 9 Combined General Meeting of Shareholders – 21st May 2024
Slide 10: 2023 Annual Results
2023 Annual Results 10 Combined General Meeting of Shareholders – 21st May 2024
Slide 11: Sopra Steria: A European leader in digital transformation
Sopra Steria: A European leader in digital transformation Breakdown of revenue – Financial year ended 31 December 2023 Top 10 operating in Europe(1) 2023 revenue: 56,000 Operations in End-to-end €5.8bn employees 30 countries approach France Consulting Financial Services Systems Integration Insurance
Slide 12: Become a compelling European alternative to global providers for major European clients
Become a compelling European alternative to global providers for major European clients Core shareholder Organic growth Employee share ownership External growth Performance End-to-end approach Entrepreneurial culture Developing the Consulting business Close customer relationships Targeting specific
Slide 13: Strengthened positions in Europe in 2023
Strengthened positions in Europe in 2023 2023 pro forma revenue • CS Group including acquisitions on a • Tobania full-year basis: €6,205m Defence Aeronautics & Space • Ordina • SSCL 2023 pro forma revenue Public Sector Financial Services from acquisitions: €847m Contribution to 2023 Position est
Slide 14: Making digital work for people
Making digital work for people CDP • Score of “A” for the 7th year running • In the CDP Supplier Engagement Leaderboard (A), for the 4 year in a row 63.6% reduction for Scopes 1 & 2 (baseline: 2019) 9.8% reduction for Scope 3 (baseline: 2019) Great Place To Work certification • Response rate: 82% •
Slide 15: Helping combat climate change
Helping combat climate change New SBTi1 targets covering our entire value chain by 2030 SCOPES 1 & 2 - 63.6% - 54% • Energy management • Digitalisation Offices + • Better locations and (vs 43.7% reduction in 2022) on-site data centres infrastructure Ways to reduce Target for 2030 <10% offsetting Typ
Slide 16: 2023 targets comfortably achieved
2023 targets comfortably achieved “Organic revenue “Operating margin on “Free cash growth of at least business activity flow of at least 6%” slightly over 9%” €300m” ⇣ 6.6% 9.4% €390m 16 Combined General Meeting of Shareholders – 21st May 2024
Slide 17: Structural improvement in performance
Structural improvement in performance 5,805 9.4% 8.9% 390 8.1% +0.5 5,101 +0.8 7.0% 287 +1.1 264 4,683 6.6% 204 4,263 7.6% 6.4% 4.8% 5.6% 5.6% 6.7% 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023 17 Combined General Meeting of Shareholders – 21st May 2024
Slide 18: France
France Total growth: 16.9%, with CS Group consolidated for 10 months • CS’s contribution to revenue: €257.4m • CS’s organic growth: 10.2% 2023 2022 • Operational synergies from 2024 Growth at constant scope: 5.0% (€m) (% Rev.) (€m) (% Rev.) France • Q4 growth: 2.3% Revenue 2,384.3 2,039.0 Organic gr
Slide 19: United Kingdom
United Kingdom 2023 2022 Organic growth: 7.7% (€m) (% Rev.) (€m) (% Rev.) • Aeronautics, Defence and Security: United Kingdom 23.1% Revenue 940.9 890.6 • NHS SBS: 9.7% Organic growth (%) +7.7% • SSCL: 15.3% Op. profit on business activity 103.2 11.0% 93.8 10.5% • Private sector: 2.4% Profit from rec
Slide 20: Other Europe
Other Europe 8.8% growth at constant scope and exchange rates 2023 2022 Growth driven by Scandinavia and Spain, with double-digit growth Other Europe (€m) (% Rev.) (€m) (% Rev.) Revenue 1,746.9 1,473.0 New position in Benelux ee cas o Organic growth (%) +8.8% • Consolidation of Ordina in Q4 2023 Op.
Slide 21: Sopra Banking Software
Sopra Banking Software Return to growth for SBS, with 4.8% 2023 2022 organic growth (€m) (% Rev.) (€m) (% Rev.) Growth achieved in all four quarters, Sopra Banking Software with 6.7% organic growth in Q4 Revenue 445.1 426.5 Organic growth (%) +4.8% Software revenue up 4.2%, driven by 9.8% growth in
Slide 22: Other Solutions
Other Solutions 2023 2022 Human Resources Solutions organic (€m) (% Rev.) (€m) (% Rev.) Other Solutions growth: +6.7% Revenue 288.2 272.1 Property Management Solutions Organic growth (%) +5.9% organic growth: +4.1% Op. profit on business activity 39.4 13.7% 35.4 13.0% Continued recovery of operating
Slide 23: Income statement
Income statement 2023 2023 2022 2022 (€m) (% of Rev.) (€m) (% of Rev.) Revenue 5,805.3 5,101.2 Organic growth 6.6% Operating profit on business activity 548.2 9.4% 453.1 8.9% Share-based payment expenses -43.0 -23.2 Amortisation of allocated intangible assets -38.0 -32.3 Profit from recurring operat
Slide 24: Simplified balance sheet
Simplified balance sheet 31/12/2023 31/12/2022 (€m) (€m) Goodwill 2,668.9 1,943.9 Allocated intangible assets 124.8 108.3 Other fixed assets 304.3 261.3 Right-of-use assets 457.1 359.9 Equity-accounted investments 185.9 183.5 Fixed assets 3,740.9 2,857.0 Net deferred tax 98.3 0 58.5 0 0 0 Trade acco
Slide 25: Clarification of the strategy
Clarification of the strategy 25 Combined General Meeting of Shareholders – 21st May 2024
Slide 26: Clarification of the strategy
Clarification of the strategy • Become a compelling European alternative to global players for major European clients • Make a difference in terms of digital sovereignty challenges, especially in the public sector, financial services, defense & security and aerospace • Strengthen European presence w
Slide 27: Accounting impact and project timetable
Accounting impact and project timetable Estimated accounting Slight improvement of operating margin rate on an annual basis impacts on Sopra Steria Decrease of the Group's net financial debt and stronger investment capacity group XX XX Transaction timetable Q2 or Q3 XX 2024 27 Combined General M
Slide 28: Outlook
Outlook 28 Combined General Meeting of Shareholders – 21st May 2024
Slide 29: Q1 2024 – in line with forecasts
Q1 2024 – in line with forecasts Revenue Q1 2023 Organic Total Q1 2024 Restated* growth growth (€m) (€m) (%) (%) France 624,6 641,4 - 2,6% + 5,9% United Kingdom 240,0 223,5 + 7,4% + 10,7% Other Europe 547,7 538,8 + 1,7% + 33,5% Sopra Banking Software 103,8 108,3 - 4,1% - 3,6% Solutions 71,2 70,7 + 0
Slide 30: Targets for 2024 as disclosed in February 2024
Targets for 2024 as disclosed in February 2024 Organic revenue Operating Free cash flow growth margin on business activity 30 Combined General Meeting of Shareholders – 21st May 2024
Slide 31: Statutory Auditors' reports
Statutory Auditors’ reports 31 Combined General Meeting of Shareholders – 21st May 2024
Slide 32: Statutory Auditors' reports
Statutory Auditors’ reports • Report on the individual and consolidated financial statements • Special report on regulated-party agreements • Others Statutory Auditors’ reports 32 Combined General Meeting of Shareholders – 21st May 2024
Slide 33: Information about proposed resolutions
Information about proposed resolutions Presentation and text of the resolutions in the 2024 meeting brochure from page 62 33 Combined General Meeting of Shareholders – 21st May 2024
Slide 34: Information on the proposed resolutions
Information on the proposed resolutions Approval of the financial statements, granting of final discharge to the Board of Directors and appropriation of earnings • Resolutions 1 and 3 - Approval of the Resolutions submitted for approval at the Parent company and the consolidated financial statements
Slide 35: Information on the proposed resolutions
Information on the proposed resolutions Compensation of company officers • Résolution 5 - Approval of the report on Resolutions submitted for approval at the the compensation of company officers relating to the disclosures mentioned in Ordinary General Meeting Article L. 22-10-9 I of the French Comm
Slide 36: Information on the proposed resolutions
Information on the proposed resolutions Compensation of company officers • Resolutions 8 and 10 – Compensation Resolutions submitted for approval at the policy Ordinary General Meeting • of the Chairman of the Board of Directors 2024 Meeting brochure • of the Chief Executive Officer Compensation p
Slide 37: Information on the proposed resolutions
Information on the proposed resolutions Decision setting the amount of compensation awarded to Directors • Resolution 11 – Decision setting the Resolutions submitted for approval at the amount of compensation awarded to Directors for their service Ordinary General Meeting • Proposed compensation for
Slide 38: Information on the proposed resolutions
Information on the proposed resolutions Reappointment of Directors • Resolutions 12 to 16 - Reappointment of Resolutions submitted for approval at the 5 Directors Ordinary General Meeting • Pierre Pasquier, Chairman (for a 4-year term) 2024 Meeting brochure • Éric Pasquier, Vice-Chairman (for a 4-ye
Slide 39: Information on the proposed resolutions
Information on the proposed resolutions Appointment of a Co-External Auditor and Sustainability Auditors • Resolution 17 – Appointment of KPMG SA Resolutions submitted for approval at the as Joint Statutory Auditor Ordinary General Meeting • Appointed for a period of 6 financial years, ending with t
Slide 40: Information on the proposed resolutions
Information on the proposed resolutions Authorisation for the Company to buy back its own shares and to potentially retire treasury shares • Resolution 20 - Buyback by the Company Resolutions submitted for approval at the of its own shares Ordinary General Meeting • Authorisation renewed under the s
Slide 41: Information on the proposed resolutions
Information on the proposed resolutions Renewal of financial delegations granted to the Board of Directors • Resolutions 22 to 26 - Financial Resolution submitted for approval at the delegations granted to the Board of Directors Extraordinary to carry out share capital increases other General Meetin
Slide 42: Information on the proposed resolutions
Information on the proposed resolutions Financial delegations aimed at giving employees and/or company officers a stake in the share capital • Resolution 30 – Allotment of free shares to Resolution submitted for approval at the employees and company officers Extraordinary • Authorisation granted for
Slide 43: Information on the proposed resolutions
Information on the proposed resolutions Amendments to the articles of association • Resolution 32 – Amendment to Article 14 Resolution submitted for approval at the of the Articles of Association concerning the Extraordinary method of appointing Directors representing the employees General Meeting 2
Slide 44: Discussion
Discussion 44 Combined General Meeting of Shareholders – 21st May 2024
Slide 45: Combined General Meeting of Shareholders – 21st May 2024
45 Combined General Meeting of Shareholders – 21st May 2024
Slide 46: Vote
Vote 46 Combined General Meeting of Shareholders – 21st May 2024
Slide 47: Closing
Closing 47 Combined General Meeting of Shareholders – 21st May 2024
Slide 48: Closing – 2024 Combined General Meeting
Closing – 2024 Combined General Meeting