Slide 1: Analysts and investors presentation
Analysts and investors presentation February 15th 2024
Slide 2: Welcome
Welcome
Slide 3: The speakers
The speakers Jean-Louis Patrick Angel BOUCHARD VAN DEN BERG BENGUIGUI Chairman and CEO Managing Director Managing Director
Slide 4: Agenda
01 Introduction 02 2023 results and financial situation AGENDA 03 ESG performance 04 update 05 Outlook
Slide 5: In 2023
> In 2023
Slide 6: Introduction
Introduction Jean-Louis Bouchard Chairman and CEO
Slide 7: Summary of Group's key financials
Number of shares excluding treasury shares (M) Summary of Group’s key financials Consolidated revenue(1) (€M) Operating Margin(1) (€M) NFD(1) (€M) Dividend / Premium Refund per share (cent €) 181 173 4 000 3 400 2 980 2 927 2 927 2 718 2 681 2 536 2 559 2 505 2 316 2 093 1 773 1 584 1 538 139 133 12
Slide 8: 2023 results and financial situation
2023 results and financial situation Patrick Van Den Berg Managing Director
Slide 9: Revenue: bridge 2022 - 2023
Revenue: bridge 2022 - 2023 Changes in in € M discontinued Total operations Growth 2,718 +3,5% are related to Les Abeilles (TMF) Organic Growth 2,681 and Apps, Cloud +1,2% & Data (Services) +57 2,648 2,591 Revenue from -127 acquisitions accounts for SEMIC and LYDIS (P&S) 2022 Changes in the 2022 Ful
Slide 10: Operating margin: bridge 2022 - 2023
Operating margin: bridge 2022 - 2023 Changes in in € M discontinued operations are related to Les Abeilles (TMF) and Apps, Cloud & Data (Services) 139.4 -25.2 114.2 0.8 115.0 116.2 2,591 Slight positive impact of 2022 acquisitions on pro forma Operating margin 2022 Changes in the 2022 Full year impa
Slide 11: Growth in group revenue
Growth in group revenue Solid operating margin rate at 4.3% Revenue Operating margin Total growth(1) at 3.5%, driven by €2,681 M TMF and Services €2,591 M but slowed by an adverse +3.5% distribution market €114.2 M €116.2 M +€2.0 M Profitability rate stable(1) at 4.3% 2022 2023 2022 2023 (1) For con
Slide 12: Products & Solutions
Products & Solutions Challenging distribution market but resilient profitability rate Revenue Operating margin Total growth(1) €1,238 M at -2.5%, impacted €1,207 M by negative market trends (~-15%) (2) -2.5% €49.0 M €43.3 M -€5.7 M Profitability rate resilient at 3.6% 2022 2023 2022 2023 (1) For con
Slide 13: Technology Management & Financing
Technology Management & Financing Strong revenue growth and Operating margin rebound Revenue Operating margin Total growth(1) at 11.2%, boosted by €998 M attractive solution offerings adapted to current market €898 M +11.2% environment and customer search for €47.6 M alternative financing solutions
Slide 14: Services
Services Continued revenue growth but pressures on Operating margin Revenue Operating margin Total growth(1) at 4.6%, marked by €476 M a steady increase in revenue since Q2 €455 M 2023 +4.6% €35.9 M Profitability rate down at 5.3% due to one-off impacts in €25.3 M 2022 and delay in passing through -
Slide 15: 2023 simplified income statement
2023 simplified income statement (in € M) 2022(1) 2023 Revenue 2,591 2,681 +3.5% +3,9% Growth driven TMF & Services but hit by adverse distribution market Resilient operating margin benefiting from Operating margin 114.2 116.2 -26,3% +1.8% strong TMF performance but slowed by impacts of inflation St
Slide 16: Breakdown of net financial debt
Breakdown of net financial debt +225 -49 -202 • Repayment of OCEANE in -181 March 2023 for €150 M -155 refinanced with more flexible bank financing • Increase in NFD by €38 M vs. 31.12.2022 overcompensated by the decrease in factoring & reverse factoring by €70 M Cash at Short term Other corporate N
Slide 17: Change in Net Financial Debt
Change in Net Financial Debt Free cash flow reduction mainly due to the decrease in factoring & reverse factoring (1) NFD: Net Financial Debt for continued activities excluding impact of IFRS 16 on leases and rentals for which Econocom is a tenant (2) Includes cash proceeds from asset disposals, cas
Slide 18: Operating cash surplus
Operating cash surplus 31.12.2023 in € M +209 +28 -181 Taking into consideration €209 M of discounted rental income secured from leasing contracts carried on balance sheet, operating cash surplus at year end of €28 M NFD(1) on Discounted Operating 31.12.23 rental income cash surplus (1) NFD: Net Fin
Slide 19: ESG Performance
ESG Performance Patrick Van Den Berg Managing Director
Slide 20: ESG Achievements in 2023
ESG Achievements in 2023 Carbon and Circular Social energy footprint economy Over 95% 493 000 + 3 pts vs. 2022 green electricity refurbished IT equipment 86/100 in France and Spain (laptops, screens, servers, 2023 gender equality 0% in 2022 tabs, smartphones…) vs. 410 000 in 2021 index in France Eco
Slide 21: A ranking reflecting Group progress and achievements
A ranking reflecting Group progress and achievements TOP 50% TOP 25% TOP 25% TOP 5% Target TOP 1% FIRST ECOVADIS EVALUATION 2010 2020 2021 2022 2023 2028 Ranking entry Top 850 Diversity Leaders ranking Econocom – 2023 annual results 21
Slide 22: eee y
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Slide 23: Strategy update
update Angel Benguigui Managing Director
Slide 24: 2028 ambition
2028 ambition +€1.3 Bn Revenue growth Revenue €4.0 Bn €3.4 Bn €2.7 Bn €0.9 Bn in organic growth 70% of total increase 2023 2026 2028 Operating margin 4.3% 4.4% 5.1% €0.4 Bn % of revenue in acquisitions Net income €63M €80M €130M 30% of total increase x2 Econocom - 2023 annual Results 24
Slide 25: Our growth will be based on 4 levers
Growth contribution Acquire selected capabilities ~30% Our Develop new offerings growth in particular end-to-end, as-a-service offerings will be based on 4 levers Increase cross-sell between client solutions and geos ~70% Disrupt salesforce capacity & effectiveness Econocom - 2023 annual Results 25
Slide 26: Our Group organization today
Our Group organization today based on an expertise-driven approach ... Hardware Audiovisual and Digital Strategic Workplace Infra & network Signage assets & equip. Software DESIGN Limited capabilities spread across Europe DISTRIBUTION FINANCING MANAGED SERVICES REFURB. Core business Beyond core busi
Slide 27: Our Group organization tomorrow
Our Group organization tomorrow …will move towards unique, end-to-end solutions addressing 4 key client needs Hardware Audiovisual and Digital Strategic Workplace Infra & network Signage assets & equip. Software DESIGN … Built upon 5 expertises DISTRIBUTION FINANCING MANAGED SERVICES REFURB. Core bu
Slide 28: Achievements 2023
Achievements 2023 Illustration of an emblematic contract • Workplace & meeting rooms pads (laptops, smartphones, tap room controller) • End-to-end solution incl. distribution, leasing, services, refurbishing, recycling • Financing solution based on a ESG approach € 5M 39 11,000 revenue countries in
Slide 29: We will focus on several topics in 2024 onwards to deliver our ambition
We will focus on several topics in 2024 onwards to deliver our ambition Organization & Organization, governance & operating model operating model Sales coverage & cross-sell Offering portfolio (Re)Activate organic growth Talent & HR Salesforce recruitment Unlock external Funding our journey M&A grow
Slide 30: Outlook
Outlook Angel Benguigui Managing Director
Slide 31: 2024 outlook
2024 outlook First year of Accelerate Total increase in plan recruitments in key revenue regions Divest non-core Deploy new and 3%-5% activities as planned integrated offerings Seize acquisitions opportunities Econocom – 2023 annual results 31
Slide 32: Appendices
Appendices CE COMOCOTT)
Slide 33: Simplified income statement
Simplified income statement (In € M) 2022(1) 2023 Revenue 2,590.5 2,681.2 Operating margin 114.2 116.2 Depreciation of acquisition-related intangible assets -2.2 -2.3 Other operating income and expenses -26.9 -8.4 Operating profit 85.2 105.5 Other financial income 0.4 1.1 Other financial expenses -1
Slide 34: Simplified balance sheet
Simplified balance sheet ASSETS (in € M) 31.12.2022 31.12.2023 EQUITY & LIABILITIES (in € M) 31.12.2022 31.12.2023 Goodwill 554 525 Equity 457 475 Other long-term assets 212 202 Net Financial Debt 144 181 Assets related to leasing activities 448 373 Commitments on residual value 103 107 Residual int
Slide 35: A de-risked leased portfolio
A de-risked leased portfolio €4.9 Bn Outstanding funded without recourse at a 91% level Residual interest(1) €2.2 Bn • 3.4% of original price • 245% covered by the market value of assets and contract €0.16 Bn extensions Oustanding Original price Residual interest (1) (1) Estimated value of assets at
Slide 36: Stock Exchange
Stock Exchange (1) Equity tab - % of ownership and number of shares Market cap Number of shares €405 M • Total shares : 179.0 M • Treasury shares : 6.4 M • Floating shares: 83.5 M 3.60% Treasury shares Average share price 6.4 M over the last 20 days 49.79% €2.35 Holding companies held by Mr. Bouchar
Slide 37: Contacts
Contacts nocom Investor and shareholder Financial Press relations communication relations benjamin.pehau@econocom.com info@capvalue.fr lucie.paturel@nocom.com Econocom – Résultats annuels 2022