Slide 1: 2015 full-year results
2015 f u l l - y e a r re s u l t s 2 March 2016 0
Slide 2: Presenters
Bruno Grossi Bruno Lemaistre Executive Director Executive Director Strategy, Acquisitions, Communications Chief Operating Officer Jean-Philippe Roesch Galliane Touze Executive Director Company Secretary Central & Support Functions 1
Slide 3: Agenda
01 Key Figures & Highlights 02 Growth Drivers 03 2015 Financial Results 04 Outlook for 2016 05 Appendices 2
Slide 4: Key Figures & Highlights
01 Key Figures & Highlights 3
Slide 5: Key Figures and Highlights
01 KEY FIGURES AND HIGHLIGHTS Over Over Over 19 7M 40 years’ €2.3bn 9,000 countries technology assets managed experience revenue employees in 2015 4
Slide 6: Very good performance in 2015 confirms the success of the merger
01 KEY FIGURES AND HIGHLIGHTS Very good performance in 2015 confirms the success of the merger with services company Osiatis and the effectiveness of the new development model 5
Slide 7: Steady growth in revenue and substantial improvement in profitability
01 KEY FIGURES AND HIGHLIGHTS Steady growth in revenue and substantial improvement in profitability €2.3 bn revenue +11%, 8% of which is organic Overall dynamic across all activities and geographical areas €117.7 M recurring operating profit +23% Double-digit rise in ROP across all activities Net Ea
Slide 8: A year of investments
01 KEY FIGURES AND HIGHLIGHTS A year of investments M&A: 10 selective investments in high-growth segments Talents: people – our most important asset • >1,000 recruitments in 2015 • >65 new sales representatives & agents: +12% • Collaborative tools and working environment Brand awareness: investment
Slide 9: Resources to continue our investments
01 KEY FIGURES AND HIGHLIGHTS Resources to continue our investments Strengthening and diversifying financial resources • Success of the euro private placement €101 M • Commercial paper programme: amount capped at €300 M 8
Slide 10: Econocom delivers its Mutation plan
02 Econocom delivers its Mutation plan supported by its growth drivers 9
Slide 11: Implementing our growth drivers
02 GROWTH DRIVERS Implementing our growth drivers DIGITAL ACQUISITIONS INTERNATIONAL SYNERGIES 10
Slide 12: A growing connected devices market
02 GROWTH DRIVERS A growing connected devices market DIGITAL NUMBER OF CONNECTED DEVICES Billions 80 Morgan Stanley 60 CISCO 40 IDC Siemens Gartner 20 2012 2016 2020 11
Slide 13: The first IFOP survey of digital practices of large companies
02 GROWTH DRIVERS The first IFOP survey of digital practices of large companies DIGITAL confirms the validity of the Econocom model Major barriers identified Econocom's responses Mobilising financial resources For 35% of large companies, IT asset leasing to lift financial barriers the lack of financ
Slide 14: Econocom recognised by the major partners in the digital ecosystem
02 GROWTH DRIVERS Econocom recognised by the major partners in the digital ecosystem DIGITAL NEW DIMENSION REINFORCEMENT DEVELOPMENT of strategic partnerships of technological partnerships in digital and IOT 13
Slide 15: Econocom supports Renault in the digitalisation of its after-sales service
02 GROWTH DRIVERS Econocom supports Renault in the digitalisation of its after-sales service DIGITAL A business solution to enable service agents to improve customer intake and vehicle management and diagnostics • A 360 service contract charged as a monthly fee • Single governance provided by Econoc
Slide 16: Econocom contributes to the digital transformation of the economy
02 GROWTH DRIVERS Econocom contributes to the digital transformation of the economy DIGITAL A few examples 15
Slide 17: Implementing our growth drivers
02 GROWTH DRIVERS Implementing our growth drivers DIGITAL ACQUISITIONS INTERNATIONAL SYNERGIES 16
Slide 18: The Econocom galaxy: an original, agile development model
02 GROWTH DRIVERS The Econocom galaxy: an original, agile development model ACQUISITIONS Security Web & mobile apps Digital solutions Digital transformation consulting 17
Slide 19: 10 transactions in high-potential, targeted segments
02 GROWTH DRIVERS 10 transactions in high-potential, targeted segments ACQUISITIONS Digital Digital Security Web & mobile transformation apps solutions consulting DIGITAL SECURITY ALTER WAY NEXICA HELIS CLESYS BIZMATICA NORCOD ALTASYS SYNERTRADE CAVERIN Over €90 M 7% 500 pro-forma revenue operating
Slide 20: Significant strengthening in the field of security
02 GROWTH DRIVERS Significant strengthening in the field of security ACQUISITIONS Auditing and consulting Integration of network NO 1 European CERTTM dedicated for IT security security solutions to IoT security and digital infrastructures and their environment >€50 M Over 250 revenue experts Strateg
Slide 21: Development of a leading provider of mobile business digital solutions
02 GROWTH DRIVERS Development of a leading provider of mobile business digital solutions ACQUISITIONS DIGITAL DIMENSION Business Mobility Hosting1 applications Market place Over €88 M 7% 500 pro-forma revenue recurring operating profit experts 1. For critical apps/cloud infrastructures 20
Slide 22: Implementing our growth drivers
02 GROWTH DRIVERS Implementing our growth drivers DIGITAL ACQUISITIONS INTERNATIONAL SYNERGIES 21
Slide 23: Econocom claims its European identity
02 GROWTH DRIVERS Econocom claims its European identity INTERNATIONAL 22
Slide 24: Spain: deployment of the multi-business line business model
02 GROWTH DRIVERS Spain: deployment of the multi-business line business model through INTERNATIONAL external growth Along the path of the Mutation plan 2016 accelerators Strengthening in Services: Acquisition of Critical applications & cloud expert, 2015 revenue > €150 M €10 M in revenue x1.5 since
Slide 25: Italy: investments in Products & Solutions and acquisition of a Services company
02 GROWTH DRIVERS Italy: investments in Products & Solutions and acquisition of INTERNATIONAL a Services company Along the path of the Mutation plan 2016 levers Doubling in Services: Acquisition of 2015 revenue: €280 M business & mobile app services, x1.5 since 2012 €18 M in revenue Workforce > 300
Slide 26: Implementing our growth drivers
02 GROWTH DRIVERS Implementing our growth drivers DIGITAL ACQUISITIONS INTERNATIONAL SYNERGIES 25
Slide 27: Accelerated growth through business synergies between activities
02 GROWTH DRIVERS Accelerated growth through business synergies between activities SYNERGIES MULTI-BUSINESS LINE SOLUTIONS (in €M) Cross-fertilisation +24% 356 286 Multi-business line solutions x2.6 since 2012 136 In France, 40% of clients are clients of at least 2 activities 2012 2014 2015 26
Slide 28: Cross-fertilisation within a global insurance company
02 GROWTH DRIVERS Cross-fertilisation within a global insurance company SYNERGIES Outsourcing | Servers Outsourcing | Agents Storage & sales agents Annual income Admin | Sales-iPad GMPA Cyber security Backup & monitoring Server Virtualisation Mobile telephony Digital Kiosk International 25 M€ Digita
Slide 29: 2015 Financial Results
03 2015 Financial Results 28
Slide 30: Strong growth in revenue
03 2015 FINANCIAL RESULTS Strong growth in revenue €2,316 M 11% €2,093 M Acceleration of organic growth: 8% confirms the success of the integration of Osiatis and the validity of the strategy 2014 2015 29
Slide 31: An overall dynamic in the activities
03 2015 FINANCIAL RESULTS An overall dynamic in the 3 activities in €M +10% All business lines post organic growth 1,149 1,045 +10% 1% organic A dynamic supported by: 730 • The high-growth digital transformation market 663 +14% 15% organic 437 Accelerated by: 385 • Rapid technological developments •
Slide 32: The convergence of our business lines addresses our customers' demand
03 2015 FINANCIAL RESULTS The convergence of our business lines addresses our customers' demand Unique positioning as a technological and financial solutions integrator 32% business Performance that places us among the market's mix 50% 2015 top players 18% Substantial synergies among the 3 business
Slide 33: Strong growth in all geographical areas
03 2015 FINANCIAL RESULTS Strong growth in all geographical areas in €M +11% All geographical areas post organic growth 7% organic 1,236 France +11% an excellent dynamic in the three 1,116 business lines benefiting from the successful integration of Osiatis, the mixed growth strategy and investments
Slide 34: Recurring Operating Profit
03 2015 FINANCIAL RESULTS Recurring Operating Profit1 Growth in recurring operating profit from 4.6% to in €M 5.1% of revenue (+50bp) 117.7 Strong growth in recurring operating profit resulting from: 23% • Healthy business trend 95.9 • Successful integration of Osiatis • Productivity plans Contribut
Slide 35: Technology Management & Financing
03 2015 FINANCIAL RESULTS Technology Management & Financing CONTRACT PORTFOLIO Revenue of €1,149 M, +10% €5.2 bn Entirely organic growth Growth in the contract portfolio (+6%) and €2.3 bn outstanding rents (+5%) A recurring operating profit of €70.1 M • Up 17% • An operating margin of 6.1% (vs 5.7%
Slide 36: Products & Solutions
03 2015 FINANCIAL RESULTS Products & Solutions Revenue of €437 M, with organic growth of 15% accelerated by: • Sales of digital assets (50% of growth) • Business synergies between the activities • Strategic partnerships • Promising start for Italy (+48%) Increase in market share: Econocom becomes n°
Slide 37: Services
03 2015 FINANCIAL RESULTS Services Revenue of €730 M, i.e., +10% of mixed growth: • Organic growth of 1% • Contribution of €56 M in acquisitions made in 2015 Recurring operating profit of €35.5 M • 38% increase, including 28% organic • 100 bps improvement in margin to 4.9% Contribution of satellites
Slide 38: Consolidated income statement
03 2015 FINANCIAL RESULTS Consolidated income statement In €M 2014 2014 2015 Change 1 Reported Restated REVENUE 2,092.6 2,092.6 2,316.1 +11% RECURRING OPERATING PROFIT2 95.3 95.9 117.7 +23% Net Earnings/Share3: €0.62 Recurring operating profit 92.3 92.9 113.5 Non-recurring operating expenses (24.9)
Slide 39: Consolidated balance sheet
03 2015 FINANCIAL RESULTS Consolidated balance sheet ASSETS (in €M) 2014 2015 EQUITY & LIABILITIES (in €M) 2014 2015 Equity attributable to owners of the parent 260 228 Goodwill 385 484 Non-controlling interests 21 52 Leasing residual interest 63 70 EQUITY 281 281 Other non-current assets 121 137 Fi
Slide 40: Structure of net financial debt
03 2015 FINANCIAL RESULTS Structure of net financial debt Net cash at bank: Gross cash Short-term credit lines & bank debts1 €143 M 209 -66 Net book financial debt of €186 M: NET DEBT < 1.5 times EBITDA AT 31 DECEMBER 2015 -48 Financial debt backed Contracts and receivables refinanced with recourse
Slide 41: Change in net book financial debt over 1 year
03 2015 FINANCIAL RESULTS Change in net book financial debt over 1 year Cash flow from operating activities Net book debt 31/12/15 Strong generation +111 WCR -186 of cash flow and good +48 WCR management -11 Non- recurring items1 A year of investments: -29 • €89 M in M&A and CAPEX Financial • €60 M
Slide 42: Strong growth in compensation per share
03 2015 FINANCIAL RESULTS Strong growth in compensation per share +17% €0.175 Growth in shareholder compensation (recommended at the General Meeting of 17 May): €0.15 • +17% compared with 2015 €0.121 • +46% over 2 years €0.101 Sign of a solid financial structure and favourable outlook Paid as a refu
Slide 43: Absence of dilution over 10 years and change in earnings per share
03 2015 FINANCIAL RESULTS Absence of dilution over 10 years and change in earnings per share 116.0 112.5 112.5 106.5 103.2 104.7 104.7 99.2 99.2 96.7 €0.175 €0.15 €0.12 €0.10 €0.10 €0.09 €0.08 €0.06 €0.06 €0.05 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Number of shares Dividends/repayment of
Slide 44: Stable shareholding favouring a long-term vision
03 2015 FINANCIAL RESULTS Stable shareholding favouring a long-term vision Continuation of the share buyback policy Treasury shares increased to 5.15% of capital 41.03% 31 Dec. 2015 53.82% Three shareholders exceed 5% of the capital at 31 December 2015: 5.15% • Butler Management Ltd • The French com
Slide 45: Outlook for 2016
04 Outlook for 2016 44
Slide 46: 2016: Good growth prospects
04 OUTLOOK FOR 2016 2016: Good growth prospects Organic growth Double-digit rise A further increase in net greater above in recurring operating profit earnings per share the market rate
Slide 47: 2016: An assertive investment policy to continue building the new Econocom
04 OUTLOOK FOR 2016 2016: An assertive investment policy to continue building the new Econocom in line with its Mutation strategic plan Sales and pre-sales New business teams Employee training, Collaborative and Brand awareness offerings and motivation and digital tools and image solutions Customer
Slide 48: Continued investments to acquire skills and increase our market share
04 OUTLOOK FOR 2016 Continued investments to acquire skills and increase our market share Acquire skills Develop our multi-business line business model in key sectors and acquire market shares Web & mobile apps Benelux Digital transformation consulting Spain E-health and E-education Italy Multimedia
Slide 49: Growth supported by a societal commitment
04 OUTLOOK FOR 2016 Growth supported by a societal commitment USING DIGITAL TO SERVE ORGANISATIONS BY PROVIDING INNOVATIVE, REALISTIC, SUSTAINABLE SOLUTIONS TO MAJOR SOCIETAL CHALLENGES Make employees the leading players Commitment I in change and corporate responsibility Be a pioneer of Corporate C
Slide 50: Objectives of the 2013-2017 Mutation plan confirmed
04 OUTLOOK FOR 2016 Objectives of the 2013-2017 Mutation plan confirmed: €3 bn €150 M in revenue in recurring operating profit
Slide 51: Strong assets
04 OUTLOOK FOR 2016 Strong assets Presence in high-growth potential markets Technological expertise and financial innovation for a unique offering Attractiveness increased by the group's size and image in the Digital Services industry Solid financial structure, a balanced risk profile, and strong ca
Slide 52: Appendices
Appendices 51
Slide 53: Consolidated statement of financial position as of 31 December 2015 (1/2)
05 APPENDICES Consolidated statement of financial position as of 31 December 2015 (1/2) In €M 31 Dec. 2014 restated1 31 Dec. 2015 Non-current assets - - Intangible assets 57.6 64.1 Goodwill 384.8 483.5 Property, plant and equipment 26.2 30.1 Financial assets 22.4 24.2 Residual interest in leased ass
Slide 54: Consolidated statement of financial position as of 31 December 2015 (2/2)
05 APPENDICES Consolidated statement of financial position as of 31 December 2015 (2/2) In €M 31 Dec. 2014 31 Dec. 2015 Share capital 21.6 21.6 Additional paid-in capital and reserves 207.0 148.7 Profit for the year attributable to owners of the parent 31.2 57.8 EQUITY ATTRIBUTABLE TO OWNERS OF THE
Slide 55: Consolidated income statement and earnings per share
05 APPENDICES Consolidated income statement and earnings per share for the years ended 31 December 2015 and 31 December 2014 In €M 31 Dec. 2014 restated1 31 Dec. 2015 REVENUE FROM CONTINUING OPERATIONS 2,092.6 2,316.1 OPERATING EXPENSES (1,999.7) (2,202.6) Cost of sales (1,385.9) (1,550.5) Personnel
Slide 56: Consolidated statement of cash flows as of December 2015 (1/2)
05 APPENDICES Consolidated statement of cash flows as of 31 December 2015 (1/2) In €M 2014 restated1 2015 Profit for the year 31.9 58.7 Elimination of share of profit of associates and joint ventures (0.0) 0.1 Depreciation, amortisation and provisions 19.7 10.7 Changes in fair value of the ORNANE em
Slide 57: Consolidated statement of cash flows as of December 2015 (2/2)
05 APPENDICES Consolidated statement of cash flows as of 31 December 2015 (2/2) In €M 2014 restated1 2015 Redemption of OCEANE convertible bonds (47.5) Issue of ORNANE bonds 175.0 Issue of other non-convertible bonds 101.0 Exercise of stock options 9.3 0.4 Treasury share buybacks and sale (50.8) (34
Slide 58: CECOMOCOTT)
CECOMOCOTT)