Sopra Steria Group Sa · EURONEXT:SOP
Sopra Steria Group Sa — Investor Day (December 2024)
48 slides from Sopra Steria Group Sa's investor day presentation, Dec 12, 2024
Slide 1: Capital Markets Day, Paris, 12 December 2024
= = a. ae ee = raw steria Mi ail = = | “across. Europe” Paris, 12 December 2024
Slide 2: Introduction
Introduction Olivier Psaume, Head of Investor Relations ' a I Se e—E OO ——————
Slide 3: Agenda
Agenda Start 9:30 a.m. Ol 02 03 sopra S steria 04 Strategy Cyril Malargé Introduction Olivier Psaume Break 10:20 a.m. O05 06 Lines of transformation Dominique Lapére O7 Affirmation of a European consultancy Fabrice Asvazadourian 08 0? Sustainable performance Axelle Lemaire Technology: a transformati
Slide 4: Strategy
sopra SS steria Cyril Malarge CEO
Slide 5: Sopra Steria in 2024
Sopra Steria in 2024 ce. 8 on 2023 revenue > 52,000 employees Operations in nearly 2 O countries Approach End-to-end Note: Breakdown of Group revenue af 30 June 2024 ‘excluding Ordina for business lines ond verticals sopra S steria One of Europe’s leading tech providers 47% 17% 36% France United Kin
Slide 6: Company fundamentals
Company fundamentals since if was founded in 1968 Values embodied & shared Human resources at the heart by all our managers & employees, of our corporate plan guiding their conduct sopra S steria Sustainability, an integral part of the Group's identity and history PUTTING CUSTOMER TAKING SERVICE FIR
Slide 7: Independent corporate plan, a core shareholder
Independent corporate plan, a core shareholder Share ownership at 30 June 2024 Investments Founder managed Sopra GMT & Management onibahalt Treasury shares of employees 19.6% 2.6% 22.2% 6.3% 11% (33.8%) (63%) sopra steria XXX% = Percentage of share capital held (X%.X50) = Percentage of voting richts
Slide 8: European digital services market
European digital sopra S steria services market Market valued at Expenditure by Vertical? Fragmented Leaders with a Services 60% market broad-based range ee ~(()%, o/w: Public Financial Telecoms (market share) Global pl Sector pgtyices & Media opal players —— s Top 30: 48% Manufacturing Major presen
Slide 9: Our outlook for market changes in Europe
Our outlook for market changes in Europe Digitalised economy with digital technology integrated into all business and functional processes Growth drivers Need to transform business models for greater flexibility & efficiency Technology: a transformation lever Shift toward cloud computing Data manage
Slide 10: Sopra Steria's European plan
Sopra Steria’s European plan Europe strategic sectors Public Sector Financial Services Defence & Security Aeronautics Positioning European leader in digital services Credible alternative in Europe to global players Decision to focus on high value-added offerings Ambition to influence how digital tec
Slide 11: Strategy implementation levers
Strategy implementation levers l) S NK\S iy” Operating HR Offerings model transformation sopra S steria Industrial approach & tools Capital Markets Day 2024 of revenue acquired by 2028
Slide 12: Key decisions taken since 2022
Key decisions taken since 2022 Recruitment of a Group Consulting CEO 5 & a Sustainability Executive Director strategic acquisitions Appointment of a Group COO ; Defence & Security vertical Launch of cross-functional technology skill centres in France in 2024 a Sopra Steria company Major Group-wide p
Slide 13: Target profile for 2028
sopra S steria Target profile for 2028 Revenue Higher added-value business mix > ] Consulting major. areas q 2? C b N close to or greater than = % total growth of ~ +6% per year (CAGR') of revenue Expanded & balanced < 7 b N Higher added-value European presence Technology mix with sizeable market sh
Slide 14: Lines of transformation
Lines of transformation ——————— Dominique Lapeére, COO ' a
Slide 15: Shifting from a service-based approach to high value-added offerings
Shifting from a service-based approach sopra St steria to high value-added offerings Offering all our customers a comprehensive range of digital transformation solutions ADVISE DEVELOP OPERATE SECURE Embedding consulting Expanding in digital Ramping up in next-generation into our value platform mana
Slide 16: Human resources at the heart of our transformation
Human resources at the heart of our transformation Attractive & rigorous talent management Targeted rigorous recruitment Tool-based, forward-looking skills management Training: motivational management & NextGen technology Reinforced & revitalised management approach Accelerated career pathways Well-
Slide 17: Enhancing our operating model
Enhancing our | operating model Verticals driving sales capacity Key accounts strategy Offerings Sector-specific skills Sales Skill centres scaling up technological expertise Data / Al Digital Cloud computing SAP sopra S steria Corporate function drawing up the operating model & tailoring it to each
Slide 18: Ramping up our industrial approach
Ramping up our industrial approach Automating development environments Digital Enablement Platform boosted by Al Used by nearly % of developers Use of generative Al in our operations Assistance tools for project managers (HeiDI) Virtual assistants for consultants (CEDRIC) Predictive analysis tools t
Slide 19: Affirmation of a European consultancy
_— Affirmation = of a European consultancy Fabrice Asvazadourian Head of Consulting
Slide 20: Consulting, a strategic priority for Sopra Steria
Consulting, a strategic oriority for Sopra Steria Positioning ourselves as far upstream as possible in major transformation programmes Fostering closer ties with decision-makers at our key clients Copital Markets Day 2024 sopra S steria Helping the Group grow & move its services & solutions higher u
Slide 21: Sopra Steria Next in 2024
Sopra Steria Next in 2024 Consultants in Europe by country ] OO O * Consultants Countries: France 2o8 i O 500 Consultants Countries: - Scandinavia + Germany + UK Belux + Spain + Netherlands 100 he O 250 Consultants Countries: Italy Specialised consulting: Manufacturing Payments Human Resources | Key
Slide 22: Our ambition: assert our position in consulting & double in size by 2028
Our ambition: Assert our position in sopra St steria | consulting & double in size by 2028 Consulting market in Europe: Ambition of Sopra Steria Next Revenue €68 billion (2022') 2023 €458m . Business Business services of = 40% 2028 Transformation 2 Transformation consulting i Me it 3 levers: Strateg
Slide 23: Our strategic priorities
sopra S steria Our strategic priorities 2) pas 2 "| © Rounding out our operations with an proactive policy of targeted acquisitions in Europe o 2 ' Positioning ourselves as a leading player in Al@Scale 5 oO Paa| iD: to reinvent our customers’ business lines Oo Os a _ Forging a strong sense of belong
Slide 24: Using AI at scale to reinvent our customers' business lines
Using Al at scale to reinvent our customers’ business lines % of IT expenditure 2023 6 . 2028 ] Oy Priority Moving from use cases to deployment at scale Z Archetypes Al for Machines Al for Processes Al for Humans Al for Software 5500+ consultants trained in Al fundamentals through a dedicated traini
Slide 25: Securing & accelerating the success of our customers' transformation projects
Securing & accelerating the success of our customers’ transformation projects Digital criminal justice =n MINISTERE DE LA JUSTICE 2023 Gold award (Syntec Conseil) 4.4m proceedings digitalised in 95% of jurisdictions Al to detect payment fraud =_ ‘Iberpay “Premios Computing Spain 2024” Innovation, Al
Slide 26: Technology, a transformation lever
Technology, Qa transformation lever | OO — Mohammed Sijelmassi | CTO sopra Ssteria
Slide 27: Transformation through technology
Transformation through technology Rapidly changing organisation Driving environment transformation Public Private Need to transform business models and processes Copital Markets Day 2024 sopra S steria Sopra Steria develops advanced & sustainable digital systems Reliable & industrialised Sustainable
Slide 28: Technology for specific business lines
Technology for specific business lines Groupes of applications by market Aeronautics Financial Services | Public Sector Defence & Security | sopra S steria Transport Digital twin solutions for factory simulation and supply chain optimisation Debt collection management platform for secure & autonomou
Slide 29: Technologies shaping the future
sopra S steria Technologies shaping the future Digital Al & GenAl Ramping up in NextGen technologies Cloud Computing fa) SS TEST Emerging 2 % Psi technologies of revenue Capital Markets Day 2024 2B
Slide 30: Industrial & sustainable approach to technology use
Industrial & sustainable approach sopra St steria to technology use Reusable Al adoption programme Skill Reasonable use, platforms centres from design to deployment Accelerated deployment Data/Al Sustainable design with Al platforms & ~ 4,000 experts e software development Cloud os gel se ~ 8,000 ex
Slide 31: Sustainable performance
= = Sustainable performance Axelle Lemaire, Executive Director Sustainability & Corporate Social Responsibility sopra SS steria
Slide 32: Increasingly ambitious sustainability trajectory
Increasingly ambitious | sustainability trajectory sopra S steria High expectations Steadfast commitment Sustainable business model DNA Long established DNA Ambitious trajectory Firm foothold in our European geographies Worsening climate situation Growing expectations from customers Widespread ramp-
Slide 33: Aligned with our climate goals
sopra S steria Aligned with our climate goals longer validated 2023 Results COz emissions reduction trajectory (cha (out to 2030) Scopes ie Scopes 1 & 2 05.0%: vs 2019 « Scope 3 ; IST : / ( ) 8 per year A _ 5A 40 3/ . (e} jel o be certified A VS 201 9 : * Scopes 12 * Scope 3 32 Copital Markets Day 2
Slide 34: Commitment that spurs us to take action
Commitment that spurs us to take action 5 key initiatives Group-wide energy savings ISO 14001 certification Supply chain programme 1 Ful-yeor 2023 ESG rating 2: Full-year 2022 ESG rating Market recognition’ Wepp ALIST 2023 CLIMATE Sustainalytics Risk 15.3 Low risk S&P Global 94/100 79/10 Top 33%, ou
Slide 35: Human dimension: reinforced equal opportunity policy
Human dimension: sopra Reinforced equal opportunity policy steria Targets for diversity & inclusion Workplace gender equality . i Increasing Promoting at least as Disability inclusion the proportion of women | many women as men in the workforce Welcoming LGBTQIA+ people Fostering intergenerational t
Slide 36: Community outreach policy
Community outreach policy: sopra One of the Group's strategic assets Sopra Steria helps disadvantaged young people and their loved ones navigate day-to-day digital processes “Who would give their time without expecting anything in return?”
Slide 37: Trusted, sustainable & sovereign operator
Trusted, sustainable & sovereign operator Pressing new need for responsible digital technology croure Helping our customers transition to sustainable production & distribution models RADAR Ase nHall PEA MATRIX Major Contender - “NetZero Consulting Services” (Everest) PAC Radar Leader - : . Sustainab
Slide 38: Capital allocation & targets for 2028
Capital allocation & targets for 2028 s_——_—— Etienne du Vignaux, . CFO a
Slide 39: Profitability milestone reached
2015 - 2025 Profitability milestone reached Operating margin on business activity (%) bce 80% aa TS alll 2015 2016 2017 2018 1: Guidance 2024 8.0% O1% on - 2019 2020 Capital Markets Day 2024 2021 sopra = 29.7%! 9. Ate | —_ 8: 9% oi 2022 2023 2024e > steria 38
Slide 40: Substantial increase in cash generation
sopra = 2015 - 2023 Substantial increase in cash generation FCF / Operating profit on business activity 71% FCF! 2017 2016 @Fcr Capital Markets Day 2024 |: FCF: Free cash flow 2015 - 2023 229) ls 151 48 i ah 2018 2019 2020 2021 2022 2015 2016 2017 2018 2019 2020 2021 2022 2023 > steria FCF O FCF / R
Slide 41: Significant growth in dividends
2015 - 2025 Significant growth in dividends DPS! for the financial year Change in dividend payout ratio? 135% excluding impact ‘of non-recurring +5 months Steria ‘asset impairment 52% 4.65 430 3.20 : 42% 220 240 | SK 5 ol 170 185 : 30% 288% 504% 10: 0.0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2
Slide 42: Recent acceleration in external growth
2015 - 2023 | Recent acceleration in external growth Contribution to revenue by acquisitions 2015 - 2023 (acquisitions net of disposals in €m) Acquisitions contributed €9/8m 420.6 to revenue 2015-2022: Less than 103.9 89.4 94.5 67.3 761 € 40.1 38.9 46.9 mM 2015 2016 2017 2019 2020 2021 2022 2023 Per
Slide 43: Capital allocation policy for the period 2025-2028
Capital allocation policy sopra &steria for the period 2025 - 2028 Dividends Acquisitions = Leverage ratio of revenue of net profit attributable lia as acquired to the Group Potential share buybacks |: Leverage ratio: Net financial debt / EBITDA before IFRS 16 Copital Markets Day 2024
Slide 44: Acquisition policy
Acquisition policy Acquisitions fo support Our strategy & build up the European positioning fargeted Around Geographies Expand our presence 7 in Europe outside France = bn Top-priority of revenue + Scandinavia acquired by 2028 + Germany + Benelux + UK Target size: Tactical Medium + Italy + Spain + F
Slide 45: Targets for 2028
Targets for 2028 Revenue Organic annual growth post-2025 2D. fo or ~el bn 1% 2024/2028 compound annual growth rate at constant currency rates External growth sopra S steria Operating margin 7 Oz, o 7 Ts Margin levers BUSINESS MIX Consulting (% of revenue) >12% Focus on operational efficiency 46 Copi
Slide 46: Key indicators for the period 2025-2028
sopra S steria Key indicators for the period 2025 - 2028 Operating margin structurally >10x FCF / Revenue oy fo Vi ROCE! before tax ~20 Net profit attributable to the Group 5s, 1) Ox of revenue Leverage ratio? |: ROCE: Return on capital employed (Profi from recurring operations before tax + Profit f
Slide 47: Conclusion
j Conclusion Cyril Malargé, CEO
Slide 48: sopra s$steria
sopra s$steria