Slide 1: Half-year results
CECONOCcOM) 207 half-year results Financial meeting 2 September 2014
Slide 2: Speakers
eECcOnNOCcOM speakers aa ai Bruno Grossi Bruno Lemaistre Strategy, Acquisitions, Communication Managing Director Galliane Touze Jean-Philippe Roesch Company Secretary Managing Director Chantal De Vrieze Country Manager BeNeLux
Slide 3: Agenda
agenda O01 digital for all, now O2 keys figures and highlights O3 growth drivers implemented la) UO) financial results
Slide 4: Digital for all, now
DIGITAL FOR ALL, NOW
Slide 5: Digital for all, now
01 Digital for all, now
Slide 6: Digital for all, now
o1 Digital for all, now Our campaign: to express our conviction! DIGITAL FOR ALL SOUS LES PAVES Ww! LE CLOUD econocom Although we benefit more and more from them every day in terms of our private use, it is vital to give organisations broader access to the progress offered by the digital revolution.
Slide 7: Our ambition
o1 Digital for all, now Our ambition to fulfil the promises of digital technologies, now O7
Slide 8: Econocom is speeding up the spread of digital progress
o1 Digital for all, now Econocom is speeding up the spread of digital progress OUR UNIQUE COMBINATION OF 3 AREAS OF EXPERTISE A STRONG ENTREPRENEURIAL CULTURE NEW COLLABORATIVE APPROCHES UNIFYING PROJETCS FOR OUR CLIENTS 08
Slide 9: A shift in the digital market structure
o1 Digital for all, nc A shift in the e digital market structure Wearables Smart TVs Internet Of Things 15 _ «Mobility on demand » « Mutation » 10 (billions) devices of Tablets Smartphones Number Source BI Intelligence- Novembre 2013 og
Slide 10: A shift in the digital market structure
01 Digital for all, now A shift in the digital market structure a Wearables Smart TVs 15 Internet Of Things Already 10% of Econocom’s revenue comes From Smart Solutions Tablet sales > PC sales in 2013: 55,000 vs. 10 (billions) 51.000. 000. devices ee, ve : of an >1 million mobile and smart assets ma
Slide 11: Digital for all, now
o1 Digital for all, now V
Slide 12: Keys figures and highlights
QO? KEYS FIGURES AND HIGHLIGHTS
Slide 13: Keys figures and highlights
Jres and highlights Revenue: €972 M, up 23% in reported data Recurring operating profit: €30.6 M, up 31% in reported data Impact of the acquisition of Osiatis and a positive business trend in the second quarter with 3% organic growth in revenue A year of consolidation focusing mainly on the integrat
Slide 14: Growth drivers implemented
O5 GROWTH DRIVERS IMPLEMENTED
Slide 15: Growth drivers implemented: Smart Solutions
(ce Smart Solutions + 12% Major contribution to organic growth in Q2 o3 implemented Main growth drivers implemented in the first half of 2014: © Acquisitions Strengthening our position in growth markets: * Osiatis: accretive as of H1 and synergies implemented * Creation of Digital Dimension to step
Slide 16: Growth drivers implemented: Smart Solutions
03 h drivers implemented Smart Solutions Major contribution to organic growth A unique offering combining financial innovation and technological expertise that addresses the growing demand for integrated solutions Positive effect of investments in the sales force and offerings in 4 key sectors: F=]
Slide 17: Growth drivers implemented: Smart Solutions
03 Growth drivers implemented Smart Solutions Cnc Electronic signature solution rolled out at the bank’s branches 39 regional branches 13,000 tablets. Potentially a further 30,000 tablets to be rolled out across 7,000 branches. 24month lease. Designing the digital bank of tomorrow. | cece Mobile sto
Slide 18: OSIATIS — A shift in our business mix
3 Growth drivers implemented Acquisitions OSIATIS — A shift in our business mix Considerable contribution from Osiatis, acquired in 2013, to H1 2014 key figures. Better balance between financing (Technology Management & Financing) and technological expertise (Distribution and Services) Strengthening
Slide 19: OSIATIS — Implementation of synergies
implemented Acquisitions OSIATIS — Implementation of synergies €2 M in H1 and €6 M expected for 2014 * New organisation set up * Financial control tools harmonised ° Premises merged * Overheads streamlined Target of €20 M worth of synergies by 2016 confirmed © Breakdown of annual synergies @&M €20M
Slide 20: DIGITAL DIMENSION - Speeding up growth in the cloud market
implemented Acquisitions DIGITAL DIMENSION - Speeding up growth in the cloud market JV Econocom 50.1% and Georges Croix 49.9% * Target: annual revenue of €120M by 2016 and double-digit profitability * Investment: up to €100M over 3 years © First two acquisitions: BRgewuyce Technologies: May 2014 ser
Slide 21: Consolidating our positions in high-potential markets
mplemented Acquisitions Consolidating our positions in high- potential markets Econocom-Osiatis acquires the business assets of Comiris, a French collaborative tools and videoconferencing specialist (revenue of €13M, 56 employees). cominis: July 2014 >) Comiris joins Exaprobe (acquired in 2013) and
Slide 22: International development
lement c Développement international New growth drivers Expanding outside our historic markets - France & Benelux Expanding our business in new markets to serve our European clients (Atos, E/ Corte Ingles, etc.) Expanding our Service business in Brazil €72 million: UD 31% &= (9 United States / Canad
Slide 23: Financial results
oy FINANCIAL RES@IS
Slide 24: Revenue up 23%
94 Financial results Revenue up 23% Revenue (reported data, €M) H1 2014 H1 2013 +23% ) 792 972 Strong growth thanks to Osiatis Revenue remains stable on a like-for-like basis Good business trend in Q2 2014 (+3%) A number of successes in the high-growth connected objects market 24
Slide 25: Shift in the business mix
04 Financial results Shift in the business mix: better balance between technological expertise and financial innovation Products Products & Solutions Services & Solutions Services 20% \ 18% 17% \ 32% “a business mix H1 2014 business mix H1 2013 Technology Me atnoeay Ma Financin @ Financing & Financi
Slide 26: Breakdown by geographical area
04 Financial results Breakdown by geographical area Rest Benelux of the world 24% 9% country mix H1 2013 Southern Europe Sf 20% Fone / Rest of the world France 13% \ 53% Southern yw Europe \ 18% country mix H1 2014 ~ Benelux / 16% 47% France Southern Europe Rest of the world (Northern Europe & Ameri
Slide 27: Sharp rise in recurring operating profit
94 Financial results Sharp rise in recurring operating profit Recurring operating profit (in €M) H1 2014 1203 ED 23. w J a Strong growth: 31% thanks to the acquisition of Osiatis Organic growth down 19%, due to: * Implementation of Osiatis synergies behind schedule * Amore selective approach to tend
Slide 28: Consolidated income statement
04 Financial results Consolidated income statement H1 2013 H1 2013 H1 2014 Restated (**) Revenue 792.3 792.3 972.2 Recurring operating profit (*) 23.4 25.1 30.6 Halfyear net earnings . 0 Recurring operating profit 22.4 24.1 29.1 per share: + 1 5 % Non recating operating (2.2) (2.2) (5.7) P Halfyear
Slide 29: Consolidated balance sheet as of June
04 Financial results Consolidated balance sheet as of 30 June ASSETS Goodwill Residual interests in leased assets Other nor-current assets Non-current assets Residual interests in leased assets Trade and other receivables Other current assets Cash Current assets Total assets 31/12/13 332 63 125 520
Slide 30: Cash flow
94 Financial results Cash flow Cash flow 9M , on Highly seasonal nature of WCR Net debt ws. (Technology Management & Financing business) Dec. 2013 -6 Income tax, interest paid and other Investment flows: €80 M (external growth, Capex, Captive & self-funded contracts) OCEANE convertible bonds 31 canc
Slide 31: A healthy, solid financial structure to continue growth and mutation
A healthy, solid financial structure to continue growth and mutation ORNANE convertible bonds -166 Contracts & and debts refinanced with recourse (IFRS debt) _ Short-term lines -90 Other debts 3 Gross treasury <a 135 J Net debt at end of 30 June 2014 -176 Positive net banking treasury: €45M Availabl
Slide 32: Dilution controlled
94 Financial results Dilution controlled Number of shares (in millions) 116.0 116.0 2005 2006 2007 2008 2009 2010 2011 2012 106.5 01/01 2014 100 M Recurring operating profit (2014 guidance) 115.6 Number of outstanding shares controlled 30/06 2014 32
Slide 33: Change in ownership structure
04 Financial r Change in ownership structure 31 Dec. 2013 Companies Treasury shares Controlled by Jean- 0.72 % Louis Bouchard 44.12% Public \ J shareholders 48.44 % | “ \ Butler Management 6.72% 30 June 2014 Companies Treasury shares controlled by Jean- 0.16% Louis Bouchard i 40.46 % H Public \ | sh
Slide 34: Outlook
Slide 35: Annual guidance
Annual guidance > €) billion Revenue E100 milion Recurring operating profit* (*) before amortization of customer portfolio ECS and Osiatis brand 35
Slide 36: Outlook: on track for our 5-year ambition
os Outlook On track for our 5-year ambition Revenue 3,000 : Recurring operating profit “ i : 150 > 2,000 @ * x2 i 1,773 H i H : i i 100 : 1,538 ’ : 89 74 2012 2013-2014 2017 : 2012 2013 2014 2017 36
Slide 37: CECONOCOrTT)
CECONOCOrTT)