Slide 1: 2013 Full-Year Results
2013 FULL‐YEAR RESULTS Financial meeting ‐ 5 March 2014
Slide 2: Speakers
Speakers Jean‐Louis Bouchard Chairman Bruno Lemaistre Managing Director Jean‐Philippe Roesch Managing Director Econocom P. 1 March 2014
Slide 3: Agenda
Agenda 1 Econocom Group 2 The digital sector: a new continent to conquer 3 2013: First year of the Mutation strategic plan 4 Alliance with Osiatis: the birth of a European leader in digital services 5 Financial results: growth guidance achieved and financial solidity confirmed 6 Stock market: anothe
Slide 4: Econocom Group
Econocom Group
Slide 5: A major player in digital services
Econocom Group A major player in digital services 20 countries 8,300 employees 40 years’ €2 Bn pro forma revenue* experience 6.3 Million technology assets > €100 M pro forma recurring managed in 2013 operating profit* *2013, unaudited Econocom P. 4 March 2014
Slide 6: A unique combination: technological integration and financing of digital solutions
Econocom Group A unique combination: Technological integration and financing of digital solutions Financial Technological innovation expertise Technology management & financing ‐ Sourcing ‐ IT & Telecom Services 05 P. 5 March 2014 Econocom
Slide 7: The digital sector: a new continent to conquer
The digital sector: a new continent to conquer
Slide 8: The explosion of communicating objects
The digital sector: a new continent to conquer The explosion of communicating objects Wearables Smart Objects Smart TVs 15 Mobility Mutation Internet of Things Number of devices in billion on demand 10 Tablets 5 Smartphones PCs 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013e 2014e 2015e 2016e 2
Slide 9: A change in our clients' assets
The digital sector: a new continent to conquer A change in our clients’ assets > 1 million mobile devices and smart objects managed by Econocom in 2013 Smart business devices Digital devices Multi‐ media Mobile devices IT devices Econocom P. 8 March 2014
Slide 10: High ambitions in the digital sector
The digital sector: a new continent to conquer High ambitions in the digital sector... To assist organisations in speeding up the progress facilitated by the available digital technologies Econocom P. 9 March 2014
Slide 11: First successful deals with our targeted vertical approach
The digital sector: a new continent to conquer …and the first successful deals with our targeted vertical approach Econocom P. 10 March 2014
Slide 12: Digital Dimension: a new offering to step up development
The digital sector: a new continent to conquer Digital Dimension: a new offering to step up development Idea Partners Combine the reputation and Econocom (50.1%) and Georges Croix (49.9%) expertise of a large group with the agility and innovation of a start‐up Ambitions Offering Up to €100 M investm
Slide 13: 2013: First year of the Mutation strategic plan
2013: First year of the Mutation strategic plan
Slide 14: Our ambitions for the next 5 years
First year of the Mutation strategic plan Our ambitions for the next 5 years IFRS REVENUE RECURRING OPERATING PROFIT 3,000 150 x2 1,538 x2 74 2012 2017 2012 2017 Econocom P. 13 March 2014
Slide 15: 2013: the 5 growth drivers implemented
First year of the Mutation strategic plan 2013: the 5 growth drivers implemented SMART CLIENT SOLUTIONS CROSS‐FERTILISATION ENTERPRISE INTERNATIONAL SOLUTIONS EXPANSION (Multi‐activities and new countries) ACQUISITIONS Econocom P. 14 March 2014
Slide 16: Strong growth in smart solutions
First year of the Mutation strategic plan Strong growth in smart solutions End‐to‐end solutions for connected objects +52% 185 122 88 Supply ‐ Pay per use ‐ Services 2011 2012 2013 REVENUE Econocom P. 15 March 2014
Slide 17: Rapid development driven by multi-activity, cross-disciplinary offerings
First year of the Mutation strategic plan Rapid development driven by multi‐activity, cross‐disciplinary offerings IFRS ENTERPRISE SOLUTIONS +25% 160 128 70 2011 2012 2013 REVENUE Econocom P. 16 March 2014
Slide 18: Client cross-fertilisation
First year of the Mutation strategic plan Client cross‐fertilisation 66% of revenue from multi‐activity customers Econocom
Slide 19: A new dimension in Spain and a successful entry into the Americas
First year of the Mutation strategic plan A new dimension in Spain and a successful entry into the Americas €137 M pro forma revenue 490 employees Multi‐activity position (integration of Ermestel and Osiatis) €25 M pro forma revenue 300 employees New opportunities opened up (organic growth + integra
Slide 20: Alliance with Osiatis: the birth of a European leader in digital services
Alliance with Osiatis: the birth of a European leader in digital services
Slide 21: A balanced business model across the entire digital value chain
The birth of a European leader in digital services A balanced business model across the entire digital value chain 2012 2013 pro forma BUSINESS MIX BUSINESS MIX 16% 15% Products & Solutions Products & Solutions 51% 19% Technology Mgt. & Financing Services 65% 34% Technology Mgt. Services & Financing
Slide 22: A new dimension in the service market for the group
The birth of a European leader in digital services A new dimension in the service market for the group, in line with the strategic plan REVENUE €650 M pro forma revenue €960 M Over 6,800 employees Established in 11 countries €650 M €305 M 2012 2013 2017 pro forma Econocom P. 21 March 2014
Slide 23: Opening up new growth opportunities particularly in cloud computing
…opening up new growth opportunities particularly in cloud computing The world’s biggest private cloud‐based email infrastructure using Microsoft technology 160,000 users/minimum 5‐year contract/Consortium with Bull Econocom P. 22 March 2014
Slide 24: A new visual identity and brand system for the group
The birth of a European leader in digital services A new visual identity and brand system for the group Reflects the group’s ambitions (a strong brand) Based on Osiatis’ branding (modern, elegant, professional) A dedicated brand for services (to capitalise on Osiatis’ reputation) A brand system for
Slide 25: Enhancing the group's values
The birth of a European leader in digital services Enhancing the group’s values Econocom P. 24 March 2014
Slide 26: Financial results: growth guidance achieved and financial solidity confirmed
Financial results: growth guidance achieved and financial solidity confirmed
Slide 27: Sustained growth in revenue, both organic and consolidated
Growth guidance achieved and financial solidity confirmed Sustained growth in revenue, both organic and consolidated IFRS IFRS REVENUE 1,773 ORGANIC GROWTH 2013 +15% +3.5% CONTRIBUTION OF OSIATIS (4 MONTHS) 1,538 €121 M 2012 2013 Econocom P. 26 March 2014
Slide 28: Growth dynamic across all the group's businesses
Growth guidance achieved and financial solidity confirmed Growth dynamic across all the group’ businesses 2013 BUSINESS MIX Products & Solutions: Growth dynamic of new devices (tablets and smart) 21% growth (10% organic) 25% Services Technology management & financing: Contract portfolio outstandings
Slide 29: Strong performance in the main regions
Growth guidance achieved and financial solidity confirmed Strong performance in the main regions 2013 COUNTRY MIX France: 10% Growth driven by changes in the scope Northern & Eastern 21% growth Europe Benelux: 51% Success of dedicated Smart offerings 20% France 18% growth Southern Europe Southern Eu
Slide 30: Strong growth in recurring operating profit thanks to the arrival of Osiatis
Growth guidance achieved and financial solidity confirmed Strong growth in recurring operating profit thanks to the arrival of Osiatis IFRS RECURRING OPERATING PROFIT 89 CONTRIBUTION OF OSIATIS (4 MONTHS) +16% > €9 M 74 77 2012 2012 2013 restated (*) * The restated 2012 financial statements include
Slide 31: Consolidated income statement
Growth guidance achieved and financial solidity confirmed Consolidated income statement In €M 2012 2012 2013 IFRS restated REVENUE 1,538.3 1,538.3 1,772.6 RECURRING OPERATING PROFIT(*) 74.1 76.8 88.8 RECURRING OPERATING PROFIT 72.1 74.8 86.5 NON‐CURRENT OPERATING EXPENSES (3.5) (3.5) (13.4) NET EARN
Slide 32: Cash flow
Growth guidance achieved and financial solidity confirmed Improvements Contracts Cash flow to working capital +58 with recourse ‐30 Income tax paid ‐12 Net accounting Acquisitions Net accounting and debt debt associated at end of 2012 debts at end of 2013 31 Cash flow ‐48 39 +79 Capex Buyback of ‐14
Slide 33: Net book debt structure
Growth guidance achieved and financial solidity confirmed Net book debt structure Convertible Bonds (OCEANE) ‐77 Contracts with A healthy net cash recourse position: €81 M (IFRS debt) ‐43 Short‐term lines (acquisition of Osiatis) Bonds convertible “in the ‐38 Short‐term money” lines Call option & ot
Slide 34: Consolidated balance sheet at 31 December
Growth guidance achieved and financial solidity confirmed Consolidated balance sheet at 31 December IFRS ASSETS 2012 2012R 2013 LIABILITIES 2012 2012R 2013 SHAREHOLDERS’ EQUITY 157 155 260 GOODWILL 149 150 331 FINANCIAL DEBTS 82 82 91 LEASING RESIDUAL INTERESTS 41 63 63 RESIDUAL VALUE COMMITMENTS 11
Slide 35: Stock market: another good year for the group and its shareholders
Stock market: another good year for the group and its shareholders
Slide 36: A sharp rise in the share and trading volumes
Another good year for the group and its shareholders A sharp rise in the share and trading volumes Share performance in 2013: +39.5% Average daily trading volumes: +187%* An eventful stock market year: • 4‐31 October 2013 Friendly Public Offer for Osiatis • 22 November 2013 Squeeze‐out procedure for
Slide 37: A rise in dividend per share
Another good year for the group and its shareholders A rise in dividend per share DIVIDENDS €0.12 20% rise in gross dividend €0.10 Submitted at the General Shareholders’ Meeting on 20 May 2014 2012 2013 Econocom P. 36 March 2014
Slide 38: Controlled share dilution
Another good year for the group and its shareholders RECURRING OPERATING PROFIT €89 M Controlled share dilution Number of shares 121.1 116.0 112.5 103.2 103.2 104.7 106.5 99.2 99.2 96.7 Controlling the number of shares outstanding Recurring operating profit €19 M increased almost 5‐fold during the p
Slide 39: Shareholder buyback and cancellation policy
Another good year for the group and its shareholders Shareholder buyback and cancellation policy TREASURY SHARES CANCELLED END OF 2013 CONVERTIBLE BONDS (OCEANE) BOUGHT BACK & CANCELLED IN 2013 & 2014 6,014,892 1,279,291 (5.35% of share capital) (32% of convertible bonds (OCEANE) issued in 2011) TRE
Slide 40: Main stock market information
Another good year for the group and its shareholders Main stock market information Closing price as of Ownership structure at 28 February 2014 €8.66 28/02/2014 Number of shares 106,803,342 Market capitalisation €925 M 44.38% companies controlled by Average daily trading 200,000 shares Jean‐Louis Bou
Slide 41: Conclusion
Conclusion
Slide 42: Econocom-Osiatis: A successful alliance that creates value
Conclusion Econocom‐Osiatis: A successful alliance that creates value Organic growth for Econocom & Osiatis in Q4 2013 Full‐year operational synergies confirmed at €20 M Econocom P. 41 March 2014
Slide 43: 2014: confirming our trajectory
Conclusion 2014: confirming our trajectory IFRS RECURRING REVENUE OPERATING PROFIT Continuing strategic investments and finalising the integration of >2,000 Osiatis 1,773 1,538 >100 89 77 Another year of growth in revenue and recurring operating profit on a comparable basis 2012 2013 2014 2012 2013
Slide 44: 5 points to remember
Conclusion 5 points to remember 1 An ambitious strategic plan well underway 2 A major acquisition in the service sector giving rise to leading new European player 3 Increasing strategic initiatives in the digital market 4 A rise in results, cash generation and shareholder return 5 Another year of pr
Slide 45: 2013: an eventful, successful year
2013: an eventful, successful year
Slide 46: Financial communication
Financial communication Econocom Group ACTUS Finance & Communication Investor Galliane Touze Jérôme Fabreguettes‐Leib relations galliane.touze@econocom.com econocom@actus.fr PR Florence Lièvre Nicolas Bouchez contacts florence.lievre@econocom.com nbouchez@actus.fr Next press release: 1st quarter rev
Slide 47: Econocom
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