Econocom Group Se Class D · EURONEXT:ECONB
Econocom Group Se Class D — H1 2012 Earnings Presentation
41 slides from Econocom Group Se Class D's earnings presentation, Aug 31, 2012
Slide 1: Half-year results
2 0 1 2 H a l f - y e a r r e s u l t s F i n a n c i a l m e e t i n g F r i d a y , 3 1 A u g u s t 2 0 1 2
Slide 2: The speakers
THE SPEAKERS 1 Bruno Lemaistre Chantal de Vrieze Charles de Stoop Managing Director Country Manager Belgium Chief Financial Officer Chief Executive Officer
Slide 3: Econocom: key figures
ECONOCOM: KEY FIGURES The European leader in business-to-business 2 ICT infrastructure management 3,692 employees on 30 June, 2012 €1.58 billion revenue for 2011 Established in 17 countries, mainly in Europe 4.4 million assets managed since 1986
Slide 4: Econocom's comprehensive offer
ECONOCOM’S COMPREHENSIVE OFFER DISTRIBUTION INFRASTRUCTURE LEASING AND ASSET 3 OF PRODUCTS AND SERVICES MANAGEMENT SOLUTIONS CONSULTANCY CONSULTANCY CONSULTANCY SOURCING INTEGRATION FINANCIAL ENGINEERING ROLL-OUT OUTSOURCING MANAGEMENT TECHNOLOGICAL INFRASTRUCTURES Mobile devices Workstations Networ
Slide 5: Agenda of the financial meeting
AGENDA OF THE FINANCIAL MEETING 4 AN EVENTFUL FIRST HALF-YEAR ON THE OPERATIONAL FRONT RECORD HALF-YEAR RESULTS AND A STRONGER FINANCIAL POSITION LIVELY STOCK MARKET ACTIVITY AMBITIOUS DEVELOPMENTS IN THE DIGITAL SECTOR THE MEANS TO IMPLEMENT THE MEDIUM-TERM STRATEGY
Slide 6: An eventful 1st half-year on the operational front
5 AN EVENTFUL 1st HALF-YEAR ON THE OPERATIONAL FRONT
Slide 7: A successful change in dimension
A SUCCESSFUL CHANGE IN DIMENSION IFRS In € millions 6 REVENUE (*) before amortisation of the ECS customer portfolio (€1 M in H1) RECURRING OPERATING PROFIT* 1,584.3 Beginning of the 66.6 Horizon 2012 plan Beginning of the Horizon 2012 plan 1,021.4 47.5 759.3 716.9 28.7 25.6 764.0 737.0 26.0 338.4 34
Slide 8: A number of successful deals
A NUMBER OF SUCCESSFUL DEALS 7 SOUTHERN NORTHERN AND FRANCE BENELUX EUROPE EASTERN EUROPE Public transport Banking/insurance Logistics Security Services Services Smart Objects Smart Objects Audit firm Public Services Banking Cosmetics Enterprise solutions Services Services Leasing Construction Healt
Slide 9: Telecoms convergence: a successful strategy
TELECOMS CONVERGENCE : A SUCCESSFUL STRATEGY Authorised Authorised Reseller Systems integrator 8 Belgium (H1 2011), France (H2 2011), Italy (H1 2012) …A fleet of 3,500 iPads rolled out in France SOME MAJOR …Outsourced management of 15,000 DEALS… mobile phone lines …The success of Everpad, with 2,500
Slide 10: Reorganisation of the services division
REORGANISATION OF THE SERVICES DIVISION 9 2011: Targeted Commercial Investments external success & A difficult maintained growth financial operations year recovery A year of transition to profitable growth
Slide 11: Record half-year results and a stronger financial position
10 RECORD HALF-YEAR RESULTS AND A STRONGER FINANCIAL POSITION
Slide 12: Consolidated half-year operational data
CONSOLIDATED HALF-YEAR OPERATIONAL DATA IFRS in € millions 11 REVENUE RECURRING OPERATING PROFIT* Business performed well despite difficult economic climate Relinquishment of non-strategic activities Full effect of synergies 763.7 26.0 resulting from the 736.9 integration of ECS 18.6 Operational exp
Slide 13: Breakdown of revenue by geographical area
BREAKDOWN OF REVENUE BY GEOGRAPHICAL AREA Sustained growth in 12 Northern and Eastern 11% 13% Europe driven by the UK 19% €764 M 48% 20% €737 M 49% France and Southern Europe (Spain and Italy) performed well 22% 18% H1 2011 H1 2012 Benelux suffered from a negative base effect France Benelux South Eu
Slide 14: Breakdown of recurring operating profit by geographical area
BREAKDOWN OF RECURRING OPERATING PROFIT(*) BY GEOGRAPHICAL AREA 13 18% 19% 26% 32% A rise in recurring operating profit in all €18.6 M €26.0 M areas 27% 34% 22% 22% H1 2011 H1 2012 Profit in France improved significantly France Benelux South Europe North & East Europe (+70%) A balanced contribution
Slide 15: Consolidated income statement
CONSOLIDATED INCOME STATEMENT IFRS Significant reduction 14 in € millions in non-recurring operational and financial expenses H1 2011 H1 2012 REVENUE 763.7 736.9 Five-fold increase in RECURRING OPERATING PROFIT (*) 18.6 26.0 net profit RECURRING OPERATING PROFIT 17.6 25.0 NON-RECURRING OPERATIONAL E
Slide 16: Consolidated cash statement
CONSOLIDATED CASH STATEMENT(*) Convertible bonds IFRS €78.8 M 15 in € millions + 0 -27 Contracts with -59 recourse -112 (IFRS debt) €27.5 M + -240 Short-term lines €28.2 M - Gross cash position 10/2010 12/2010 06/2011 12/2011 06/2012 €75.5 M = A €53 million Net financial debt increase in1 year €59 M
Slide 17: Consolidated cashflow statement
CONSOLIDATED CASHFLOW STATEMENT IFRS Cash flow in € millions 16 increased by 57% H1 2011 H1 2012 CASH FLOW 17.1 26.9 Seasonal variation in CHANGE IN WORKING CAPITAL REQUIREMENTS (75.5) (68.7) working capital under control INCOME TAX PAID (9.6) 5.1 NET CASH PROVIDED BY OPERATING ACTIVITIES (67.9) (36
Slide 18: Consolidated balance sheet at June 2012
CONSOLIDATED BALANCE SHEET AT 30 JUNE 2012 IFRS 17 in € millions ASSETS 31/12/2011 30/06/2012 LIABILITIES 31/12/2011 30/06/2012 SHAREHOLDERS’ EQUITY*) 135 134 GOODWILL 134 135 FINANCIAL DEBTS 88 89 OTHER NON-CURRENT ASSETS 123 122 OTHER NON-CURRENT LIABILITIES 24 29 NON-CURRENT ASSETS 257 257 NON-CU
Slide 19: Financial guidance confirmed
FINANCIAL GUIDANCE CONFIRMED 18 Slight growth Growth Double-digit growth in revenue in recurring operating in profit per share on a like-for-like basis profit(*) Revenue Net Profit per ROP > €70 M Share ≈ 2 € > €1.6 Bn (**) Another year of value generation while maintaining a sound financial positio
Slide 20: Lively stock market activity
19 LIVELY STOCK MARKET ACTIVITY
Slide 21: Change in ownership structure and cancelled shares
CHANGE IN OWNERSHIP STRUCTURE AND CANCELLED SHARES Ownership structure at 30 June 2012 20 Société Générale’s stake successfully reclassified in June 7.72% (7.02% of the capital) Companies controlled oversubscribed by 2.3 by Jean-Louis Bouchard 28.74% Valgest and V. Wajs 49.10% Proposal to cancel 7.6
Slide 22: Stock market information
STOCK MARKET INFORMATION NYSE Euronext 21 CLOSING PRICE AT 30/08/2012 €17.70 ISIN BE0003563716 CONVERTIBLE BOND BE6220862583 NUMBER OF SHARES 26,172,897 MNEMO ECONB AMOUNT ISSUED €84 M MARKET CAPITALISATION €463.26 M MARKET NYSE EURONEXT MARKET LUXEMBOURG PRODUCTIVITY (€0.40) 2.3% COMPARTMENT B FIXE
Slide 23: Creating value for shareholders
CREATING VALUE FOR SHAREHOLDERS Performance at 30 June 2012 of a virtual portfolio 22 invested entirely in Econocom shares DURATION OF OVERALL PERFORMANCE AVERAGE ANNUAL VALUE OF €1,000 INVESTMENT DATE INVESTMENT RPERFORMANCE OF BEL20 RETURN INVESTED 1 YEAR 30/06/2011 +10% -13% +10%/YEAR €1,102 3 YE
Slide 24: Ambitious developments in the digital sector
23 AMBITIOUS DEVELOPMENTS IN THE DIGITAL SECTOR
Slide 25: A shift in the IT market
A SHIFT IN THE IT MARKET 24 Limited growth in the IT market Promising growth markets +2% rise expected Clients hesitant Sales in tablets Growth in cloud in France in 2012 and postponed worldwide computing and +1% projects, but no expected to around 20% in Europe 2008/2009 type jump from 121 in 2012
Slide 26: Promising growth markets
PROMISING GROWTH MARKETS VARIETY OF DEVICES SALES SOARING 25 700 (*) Source ON World, IPSONS 2011 report Milliers 600 500 400 300 200 100 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Sales of smart objects worldwide per year in millions of units (*) Proliferation of connected devices and
Slide 27: A shift in user expectations
A SHIFT IN USER EXPECTATIONS Infrastructure 26 Web app mode solutions Scalable offerings Virtualisation and sharing Keep apace with the Tailor offerings to Guarantee proliferation of users’ needs and quick time-to-market devices, BYOD trend, changing technology and flexible etc. deployment Demand fo
Slide 28: Addressing market needs
ADDRESSING MARKET NEEDS TRENDS POSITIONS 27 Well established in the distributed infrastructure and aaS markets (leasing) Pioneers in mobile solutions and the leader in the tablet market Investments maintained in cloud computing (security, virtualisation) Deploying new offerings based on patterns of
Slide 29: Smart object offering based on product families
SMART OBJECT OFFERING BASED ON 3 PRODUCT FAMILIES CATEGORY USE ASSETS 28 Digital signage Multimedia Sales transactions Teaching Interactive terminals Remote communication Professional and medical imaging Mobile solutions Business management Sales actions Technical operations Tracking goods and peopl
Slide 30: Example of multimedia objects
EXAMPLE OF MULTIMEDIA OBJECTS Company profile: 29 The French retail market leader Client's need: Centralise management of advertisements to ensure better response times and productivity gains via a paperless solution Our solution: 90 multimedia screens installed at a pilot store A solution with a hi
Slide 31: Example of mobile solutions
EXAMPLE OF MOBILE SOLUTIONS Company profile: 30 KPMG Client's need: Industrialised deployment of 900 iPads across 7 sites, simpler administration and lower costs Our solution: Supplied the terminal, provided advice and integrated devices into the IT system, set up a dedicated enterprise platform Con
Slide 32: Example of digital devices
EXAMPLE OF DIGITAL DEVICES Company profile: 31 Insurance company Camera Clock Battery Client's need: Automated claims filing and handling Our solution: Cartridge Memory Fleet of digital pens deployed An economical, secure solution that addresses the business’ specific needs
Slide 33: An increasing contribution from smart objects
AN INCREASING CONTRIBUTION FROM SMART OBJECTS BUSINESS VOLUME IN €M BREAKDOWN BY PRODUCT FAMILY 32 Mobile solutions 8% 30% Multimedia 65 55 62% Digital Devices 23 H1 2011 H2 2011 H1 2012 Half-year revenue more than doubled
Slide 34: The means to implement the medium-term strategy
33 THE MEANS TO IMPLEMENT THE MEDIUM-TERM STRATEGY
Slide 35: Optimised organisation of external growth
OPTIMISED ORGANISATION OF EXTERNAL GROWTH 34 WHAT? HOW? OBJECTIVE Adapt to Econocom’s By appointing a Director of To step up external new size Acquisitions and growth with a number Integrations of projects due to be finalised in the coming months Further proof of our plan to improve and build on our
Slide 36: Three targeted acquisitions already carried out since the beginning of the year
THREE TARGETED ACQUISITIONS ALREADY CARRIED OUT SINCE THE BEGINNING OF THE YEAR February: May: July(*): 35 CENTIX TACTEM CAP SYNERGY (*) Due to be finalised in September Desktop and server Fixed and mobile Network and IT virtualisation telecommunications management systems security €12 M full-year r
Slide 37: Setting up Ecofinance Technologies
SETTING UP ECOFINANCE TECHNOLOGIES 36 WHAT? HOW? OBJECTIVE Ensure easier funding for By acquiring a minority Expand our portfolio of new products interest in a new funders in order to keep (enterprise solutions, smart objects) company: Ecofinance apace with changing Technologies offerings Help find
Slide 38: The digital revolution: central to our strategy
THE DIGITAL REVOLUTION: CENTRAL TO OUR STRATEGY 37 Keeping apace Digital New offerings Targeted with new external revolution is developed growth patterns of internally underway operations technology use New 5-year strategic plan finalised
Slide 39: Key points
5 KEY POINTS 38 HALF-YEAR RESULTS ROSE SHARPLY TO RECORD LEVELS ANNUAL GUIDANCE CONFIRMED DESPITE THE ECONOMIC CLIMATE WELL ESTABLISHED IN PROFITABLE NEW GROWTH MARKETS AN ACTIVE ACQUISITION POLICY NEW 5-YEAR STRATEGIC PLAN SOON TO BE ANNOUNCED
Slide 40: Questions / answers
Q u e s t i o n s /A n s w e rs F i n a n c i a l m e e t i n g – F r i d a y, 3 1 A u g u s t 2 0 1 2
Slide 41: Financial communication contacts
FINANCIAL COMMUNICATION CONTACTS ECONOCOM GROUP ACTUS FINANCE 40 INVESTOR GALLIANE TOUZE CLÉMENCE FUGAIN / JÉRÔME FABREGUETTES-LEIB RELATIONS GALLIANE.TOUZE@ECONOCOM.COM ECONOCOM@ACTUS.FR FLORENCE LIÈVRE NICOLAS BOUCHEZ PR CONTACTS FLORENCE.LIEVRE@ECONOCOM.COM NBOUCHEZ@ACTUS.FR Next press release: 3