Sopra Steria Group Sa · EURONEXT:SOP
Sopra Steria Group Sa — Sopra Group — Shareholder Meeting (June 2013)
33 slides from Sopra Steria Group Sa's shareholder meeting presentation, Jun 13, 2013
Slide 1: Annual General Meeting
Annual General Meeting 13 June 2013
Slide 2: Forward Looking Statements
Forward Looking Statements This document contains forecasts in respect of which there are risks and uncertainties concerning Sopra Group’s future growth and profitability. The Group highlights the fact that the signature of licence contracts, which often represent investments for clients, are more
Slide 3: Annual General Meeting Summary
Annual General Meeting Summary Annual General Meeting Agenda Board of Directors’ Report Auditors’ Reports Information about proposed resolutions Discussion Vote Closing 3
Slide 4: Agenda (1/2)
Agenda (1/2) Requiring the approval of the Ordinary General Meeting Approval of the Sopra Group SA individual company financial statements for the year ended 31 December 2012 – Granting of final discharge to the members of the Board of Directors – Approval of non- deductible expenses. Approval
Slide 5: Agenda (2/2)
Agenda (2/2) Requiring the approval of the Extraordinary General Meeting Delegation of authority given to the Board of Directors to issue warrants to subscribe to and/or acquire redeemable shares (BSAARs) to employees or officers of the Company or any of its affiliated undertakings, with pre-emp
Slide 6: Annual General Meeting Summary
Annual General Meeting Summary Annual General Meeting Agenda Board of Directors’ Report Auditors’ Reports Information about proposed resolutions Discussion Vote Closing 6
Slide 7: Change in Group governance
Change in Group governance Significant transition for governance since August 2012 Pierre Pasquier is Chairman Pascal Leroy is Chief Executive Officer Ongoing coordination between the Chairman and the CEO ensuring the successful transition of this strategy Operational transmission well ini
Slide 8: Two distinct complementary roles
Two distinct complementary roles Pierre Pasquier Pascal Leroy Chairman Chief Executive Officer Oversees strategy, including Helps formulate strategy mergers-acquisitions alongside the Chairman Leads corporate and financial Supervises implementation of communication operations decisions adopt
Slide 9: Sopra GMT, a committed reference shareholder
Sopra GMT, a committed reference shareholder Support the management team in its investment initiatives Motivation and long-term commitment of key people Commitment to the Sopra 2015 Project and beyond… 9
Slide 10: 2012: solid performance in a tough context
2012: solid performance in a tough context 1,217 Revenue (€m) Operating profit on business activity (€m) 627 590 302 337 288 290 90 95 150 Q1 Q2 Q3 Q4 H1 H2 2012 Total growth +9.5% +13.1% +20.9% +20.1% +11.3% +20.5% +15.8% Organic growth +4.4% -2.1% +1.1% +6.3% +1.0% +3.8% +2.4% Operating profit on
Slide 11: Solid results for the financial year
Solid results for the financial year 2011 2012 2012 (€m) (€m) (%) Revenue 1050.3 1216.7 Operating profit on business activity 92.5 109.6 9.0% Profit from recurring operations 91.7 0.081 103.2 8.5% Operating profit (EBIT) 97.9 0.081 91.3 7.5% Net profit - Group share 62.9 0.081 55.6 4.6% EPS (€) €5.2
Slide 12: Operating profit on business activity
Operating profit on business activity 2011 2012 2012/2011 (€m) (€m) (%) Revenue 1050.3 1216.7 15.8% Staff costs - employees -701.4 -811.8 15.7% Staff costs - contractors -95.8 -100.1 4.5% Staff costs - Total -797.2 -911.9 14.4% Operating expenses -147.0 -178.2 21.2% Depreciation, amortization and pr
Slide 13: Operating profit
Operating profit 2011 2012 2012 (€m) (€m) (%) Operating profit on business activity 92.5 109.6 9.0% Expenses related to stock options and bonus share awards -0.5 -2.2 Amortisation of allocated intangible assets -0.3 -4.2 Profit from recurring operations 91.7 103.2 8.5% Other operating income and exp
Slide 14: Net profit
Net profit 2011 2012 2012 (€m) (€m) (%) Operating profit 97.9 91.3 7.5% Cost of net financial debt -4.1 -7.2 Other operating income and expenses 0.6 -1.0 Tax expense -36.1 -33.6 Share of net profit from equity-accounted companies 6.0 6.1 Net profit before profit from discontinued operations 64.3 55.
Slide 15: Balance sheet
Balance sheet 2011 2012 (€m) (€m) Goodwill 190.9 314.6 Allocated intangible assets 1.3 56.5 Other fixed assets 44.1 45.8 Equity-accounted investments 109.4 113.8 Fixed assets 345.7 530.6 Trade accounts receivable (net) 345.0 384.3 Other assets and liabilities -370.4 -405.6 Operating assets and liabi
Slide 16: Change in net debt
Change in net debt 2011 2012 (€m) (€m) Net debt at beginning of period (A) 57.2 46.4 Gross cash flow from operations before net financial debt and tax 100.5 112.2 Tax paid -38.7 -41.8 Changes in working capital requirements -1.3 -8.6 Net cash flow from operations 60.5 61.8 Change relating to operati
Slide 17: Bank covenants
Bank covenants PRO / Cost of net debt Net debt / Equity Must be Must be 39.07 >5 56% < 100% 25.13 17.27 9% 7% 2010 2011 2012 2010 2011 2012 Net debt / EBITDA (€118M) Net financial debt is adjusted for employee profit sharing (€32m) for the calculation of bank covenants Must be 1.46 <3 0.27 0.20 2010
Slide 18: Revenue by business line
Revenue by business line Business line o/w Software Real Estate 14% Human Resources 11% Software Sopra 75% Banking 21% Software o/w Consulting & Services Consulting Fixed-price 7% projects 79% 19% Technical assistance 35% Consulting & Application IT Services 39% outsourcing 18
Slide 19: Revenue by vertical market
Revenue by vertical market Verticals Services, Transport & Utilities Financial Retail Services Telecom & Media 5% 10% 33% Public +11.4% vs 2011 16% Sector Public Sector 16% 20% Manufacturing Services, Transport & Utilities +3.7% vs 2011 19
Slide 20: Revenue by region
Revenue by region Regions o/w Sopra Banking Software Rest of World 20% Rest of 42% France World 38% Europe 32% o/w Consulting & Services United Kingdom 68% 10% Spain 7% 6% Other France France 77% 20
Slide 21: Trends in our markets for 2012
Trends in our markets for 2012 France Europe (excl. France) + 3.7% vs 2011 +2.9% vs 2011 Sopra Banking Software Top 30 Clients (51% of sales) Q4: +6.9% -3.9% vs 2011 +6.8% vs 2011 21
Slide 22: A constant increase in our headcount
A constant increase in our headcount World (excl. France) 14,310 France +109% Group vs 2004 10,795 9,380 7,665 +58% 6,850 vs 2004 5,935 4,930 3,130 +439% vs 2004 915 2004 2008 2012 22
Slide 23: Key figures for 2012
Key figures for 2012 Revenue Organic growth €1217m +2.4% +€166m vs 2011 Total growth +15.8% Op. profit on business act. Net profit €110m €56m 9.0% of revenue 4.6% of revenue 23
Slide 24: Annual objectives achieved
Annual objectives achieved Revenue • Slight increase Operating profit on business • Slight improvement activity • Participate in market Market consolidation in Europe • Enrich our portfolio of Products solutions 24
Slide 25: Dynamic M&A strategy
Dynamic M&A strategy Callataÿ Financial solutions & 2012 pro forma revenue: €79m 600 employees Wouters Financial solutions Tieto 2012 pro forma revenue: €27m Solutions 250 employees Business Financial services & 2012 pro forma revenue: €35m Decision 250 employees 25
Slide 26: A new banking subsidiary
A new banking subsidiary Creation of a subsidiary dedicated to banking solutions European positioning in a high growth-potential market Capitalising on integrator expertise and 40 years’ experience in software development Recognised by market analysts Gartner Magic Quadrant for Internation
Slide 27: Additional information: HR Access
Additional information: HR Access 2013 revenue (12 months) approximately €70m Consolidated as of 1 April (9 months) Integration proceeding smoothly Restructuring plan underway Significant savings targeted (+/- €25m) Budgetary breakeven possible in 2014 Positive client response Servic
Slide 28: 2013 annual targets updated
2013 annual targets updated At constant consolidation scope vs. 2012 Organic growth between 2 and 5% Operating margin on business activity above 8% Impacted on a one-off basis by: – Initialisation investments for large-scale projects signed at the end of 2012 – Pre-sales in progress – Persis
Slide 29: Annual General Meeting Summary
Annual General Meeting Summary Annual General Meeting Agenda Board of Directors’ Report Auditors’ Reports Information about proposed resolutions Discussion Vote Closing 29
Slide 30: Annual General Meeting Summary
Annual General Meeting Summary Annual General Meeting Agenda Board of Directors’ Report Auditors’ Reports Information about proposed resolutions Discussion Vote Closing 30
Slide 31: Annual General Meeting Summary
Annual General Meeting Summary Annual General Meeting Agenda Board of Directors’ Report Auditors’ Reports Information about proposed resolutions Discussion Vote Closing 31
Slide 32: Annual General Meeting Summary
Annual General Meeting Summary Annual General Meeting Agenda Board of Directors’ Report Auditors’ Reports Information about proposed resolutions Discussion Vote Closing 32
Slide 33: End of the Annual General meeting
End of the Annual General meeting 13 June 2013 33