Sopra Steria Group Sa · EURONEXT:SOP
Sopra Steria Group Sa — Non-Deal Roadshow (December 2015)
34 slides from Sopra Steria Group Sa's roadshow presentation, December 2015
Slide 1: USA and Canada Road Show
USA AND CANADA ROAD SHOW December 2015 Delivering Transformation. Together.
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements subject to certain risks and uncertainties that may affect the Group’s future growth and profitability. Readers are reminded that licence agreements, which often represent investments for clients, are signed in greater numbers in the s
Slide 3: Content
CONTENT 1|2015 Financial performance - H1 2015 - Q3 2015 2|Market, strategy & medium-term targets 3|Annexes 3 USA & Canada Roadshow - December 2015
Slide 4: 2015 Performance
2015 PERFORMANCE - H1 2015 - Q3 2015 4 USA & Canada Roadshow - December 2015
Slide 5: Update on the Sopra - Steria integration
UPDATE ON THE SOPRA - STERIA INTEGRATION THE MAIN PORTION OF THE INTEGRATION IS COMPLETE 1st phase of integration 2nd phase of integration Until June 2015 Starting June 2015 Major decisions: Monitoring alerts and Organisation improving security Governance Systems Assessing and continuously T
Slide 6: Operating performance by division
OPERATING PERFORMANCE BY DIVISION KEY FIGURES IN FIRST-HALF 2015 Revenue Operating profit on business activity H1 2014 Organic H1 2014 H1 2015 H1 2015 Restated* growth Pro Forma (€m) (% of Rev.) (€m) (%) (% of Rev.) France 666.2 654.1 + 1.8% 8.0% 5.0% United Kingdom 518.3 523.4 - 1.0% 6.4% 9.4% Othe
Slide 7: France: Consulting & Systems Integration in H1 2015
FRANCE: CONSULTING & SYSTEMS INTEGRATION IN H1 2015 INTEGRATION PROGRESSING SMOOTHLY, STRONG BUSINESS ACTIVITY France: H1 2015 H1 2014 Pro forma Consulting & Systems Integration (C&SI) (€m) (% of Rev.) (€m) (% of Rev.) Revenue 562.8 545.2 Organic growth (%) + 3.1% Operating profit on business activi
Slide 8: France: I2S in H1 2015
FRANCE: I2S IN H1 2015 A CHALLENGING SITUATION, SLIGHT IMPROVEMENT IN THE FIRST HALF France : H1 2015 H1 2014 Pro forma Infrastructure and Security Services (I2S) (€m) (% of Rev.) (€m) (% of Rev.) Revenue 103.4 108.4 Organic growth (%) - 4.6% Operating profit on business activity - 0.5 -0.5% - 1.4 -
Slide 9: United Kingdom in H1 2015
UNITED KINGDOM IN H1 2015 SOLID POSITIONING AND SIGNIFICANT OPPORTUNITIES H1 2015 H1 2014 Pro forma United Kingdom (€m) (% of Rev.) (€m) (% of Rev.) Revenue 518.3 468.2 Organic growth (%) - 1.0% Operating profit on business activity 33.3 6.4% 44.2 9.4% Profit from recurring operations 26.9 5.2% 38.5
Slide 10: Other Europe in H1 2015
OTHER EUROPE IN H1 2015 STABILISATION IN GERMANY, GROWTH IN SPAIN AND SCANDINAVIA H1 2015 H1 2014 Pro forma Other Europe (€m) (% of Rev.) (€m) (% of Rev.) Revenue 346.3 334.0 Organic growth (%) + 4.3% Operating profit on business activity 2.2 0.6% 9.6 2.9% Profit from recurring operations 1.7 0.5% 8
Slide 11: Sopra Banking Software in H1 2015
SOPRA BANKING SOFTWARE IN H1 2015 HIGH LEVEL OF INVESTMENT, MAJOR BUSINESS OPPORTUNITIES H1 2015 H1 2014 Pro forma Sopra Banking Software (€m) (% of Rev.) (€m) (% of Rev.) Revenue 138.3 127.2 Organic growth (%) + 7.5% Operating profit on business activity 9.9 7.2% 8.5 6.7% Profit from recurring oper
Slide 12: Other Solutions in H1 2015
OTHER SOLUTIONS IN H1 2015 CONTINUED POSITIVE TRENDS IN REVENUE AND MARGINS H1 2015 H1 2014 Pro forma Other Solutions (€m) (% of Rev.) (€m) (% of Rev.) Revenue 99.0 78.4 Organic growth (%) + 3.2% Operating profit on business activity 8.7 8.8% 9.4 12.0% Profit from recurring operations 8.7 8.8% 9.4 1
Slide 13: Income statement
INCOME STATEMENT FIRST-HALF 2015 H1 2014 H1 2014 H1 2015 H1 2015 Pro forma Pro forma (€m) (% of Rev.) (€m) (% of Rev.) Revenue 1,768.1 1,661.5 Operating profit on business activity 107.4 6.1% 104.3 6.3% Expenses related to stock options and related items - 0.4 - 1.6 Amortisation of allocated intangi
Slide 14: Change in financial net debt
CHANGE IN FINANCIAL NET DEBT FIRST-HALF 2015 H1 2014 H1 2015 Pro forma (€m) (€m) Net debt at beginning of period (A) 442.4 348.7 Cash flow from operations before cost of net financial debt and tax* 102.2 100.1 Tax paid - 6.1 - 21.8 Change in operating working capital requirement - 226.0 - 117.0 Net
Slide 15: Sound financial position
SOUND FINANCIAL POSITION FIRST-HALF 2015 EBITDA leverage: 2.1x (max. 3.0x) Net financial debt at 30/06/2015 30/06/2015 Sopra Steria Gross financial debt 847.0 Cash and cash equivalents 228.9 Available undrawn amount: €1bn i.e. 54 % of authorised amount* Net financial debt 618.1 Long terms to maturit
Slide 16: Q3 2015 performance
Q3 2015 PERFORMANCE REVENUE EVOLUTION BY DIVISION IN Q3 2015 Revenue Q3 2014 Organic Total Q3 2015 Restated* growth growth (€m) (€m) (%) (%) France 317.6 307.3 + 3.4% + 73.9% of which C&SI 269.4 255.0 + 5.6% + 5.6% of which I2S 48.2 52.3 - 7.8% - 7.8% United Kingdom 256.7 263.1 - 2.4% NS Other Europ
Slide 17: Market, strategy & medium-term targets
MARKET, STRATEGY & MEDIUM-TERM TARGETS 17 USA & Canada Roadshow - December 2015
Slide 18: Strategic plan launched
STRATEGIC PLAN LAUNCHED Digital Independent Strategic project wave project 5-year strategic plan construction Industry Creation of consolidation Governance Strategy Committee Working groups led by Pierre Pasquier Timeline April to Sept. 2015 End of 2015 2016 and beyond Work of the strategy First gui
Slide 19: Challenges of digital transformation (1/2)
CHALLENGES OF DIGITAL TRANSFORMATION (1/2) FOR OUR LARGE CLIENTS BPS BUSINESS LINE Mobile SSC platforms CHALLENGES Analytics Industry- Operational efficiency SaaS specific New client experience solutions Focusing on core business Knowledge/value for clients Connected objects Standardisation, B2B/Sup
Slide 20: Challenges of digital transformation (2/2)
CHALLENGES OF DIGITAL TRANSFORMATION (2/2) FOR OUR LARGE CLIENTS Need of a partner for transformation Business Solutions Supplier and Value Business-Line Service Manager Architect/Integrator for the digital world IT Value Driver of the Information System asset enhancement 20 USA & Canada Roadshow -
Slide 21: First guidelines of the project
FIRST GUIDELINES OF THE PROJECT Differentiated positioning... European operator Integrated End-to-End provider ...and specific strengths Solutions Focus on Our key verticals Client proximity Our large clients Innovative Integrated End-to-End european partner for digital transformation 21 USA & C
Slide 22: First priorities retained
FIRST PRIORITIES RETAINED Strategic priorities Reinforce solutions Launch disruptive initiatives to make the digital wave a driver of transformation for our clients, especially in the financial sector Enhanced market intelligence Innovative partnerships Co-innovation B2B2C approach, etc. Rei
Slide 23: Updated 2015 annual targets
UPDATED 2015 ANNUAL TARGETS Organic revenue growth of around 2% vs. Announced on 19 March 2015: “organic revenue growth for the financial year” Operating margin on business activity of around 6.5% vs. Announced on 19 March 2015: “operating margin on business activity of around 6%” 23 USA & Canada Ro
Slide 24: Operational synergies related to the merger
OPERATIONAL SYNERGIES RELATED TO THE MERGER UPDATE AT 30/06/2015 Confirmation of the target of €62m in synergies for €65m in implementation costs €20m in savings generated in H1 Initial annual target for the 2015 financial year: €35m €25.5m in implementation costs recorded in H1 Initial annual targe
Slide 25: Reminder of targets for 2017
REMINDER OF TARGETS FOR 2017 Revenue of between €3.8bn and €4.0bn Operating profit on business activity of between 8% and 9% 25 USA & Canada Roadshow - December 2015
Slide 26: Annexes
ANNEXES 26 USA & Canada Roadshow - December 2015
Slide 27: Sopra Steria 2014
SOPRA STERIA 2014 A EUROPEAN LEADER IN DIGITAL TRANSFORMATION €3.4bn More than 37,000 Present in A good in revenue employees over 20 countries business match Top 5 European digital services Top 10 operating in Europe companies Pro forma revenue at 31/12/2014 Retail Manufacturing BPS Energy Rest of U
Slide 28: Breakdown of Sopra Steria's 2014 pro forma revenue
BREAKDOWN OF SOPRA STERIA’S 2014 PRO FORMA REVENUE BY COUNTRY GROUP PRO FORMA REVENUE AT 31/12/2014 SERVICES REVENUE AT 31/12/2014 (87% OF REVENUE) Rest of Other World Europe 23% 45% France €2,937m Other 2% Europe 23% 32% United Kingdom 46% France €3,370m SOLUTIONS REVENUE AT 31/12/2014 (13% OF REVE
Slide 29: Breakdown of solutions revenue in 2014
BREAKDOWN OF SOLUTIONS REVENUE IN 2014 SOPRA STERIA SOLUTIONS REVENUE AT 31/12/2014 BREAKDOWN OF SOLUTIONS REVENUE BY ACTIVITY €433m: 13% OF GROUP REVENUE Licences Property management 15% solutions Integration Services 49% ACTIVITIES Maintenance 24% 10% Sopra HR 30% Software 12% Managed Services SOL
Slide 30: Share ownership structure at 31/08/2015
SHARE OWNERSHIP STRUCTURE AT 31/08/2015 A STABLE SHAREHOLDER BASE FOR A SUCCESSFUL PROJECT Pasquier Odin Managers family family 2.4% 69.0% 28.6% Founders & Sopra GMT Shareholdings managed Treasury Management Soderi Free float 19.8% on behalf of employees shares 4.3% Shareholders’ agreement 24.1% 8.3
Slide 31: Change in shareholding on 25/06/2015
CHANGE IN SHAREHOLDING ON 25/06/2015 SOPRA GMT INCREASES ITS STAKE IN THE GROUP’S SHARE CAPITAL Sopra GMT 3.4% i.e. 700,000 shares Société Générale Geninfo Sopra Steria Group 7.0% Private placement via accelerated bookbuild 1.5% i.e. 1,434,700 shares i.e. 300,000 shares Free float 2.1% i.e. 434,700
Slide 32: 2014 pro forma income statement
2014 PRO FORMA INCOME STATEMENT SOPRA STERIA 2014 2014 2014 2014 Stand-alone Stand-alone Adjustments (*) Pro forma Pro forma Sopra Steria (€m) Sopra Steria Sopra Steria (€m) (€m) (€m) (% of Rev.) Revenue 1,482.0 1,887.0 1.1 3,370.1 Operating profit on business activity 127.8 99.4 4.0 231.2 6.9% Expe
Slide 33: 2014 pro forma change in net debt
2014 PRO FORMA CHANGE IN NET DEBT SOPRA STERIA 2014 2014 Pro forma Excluding securitisation programme Sopra Steria and IFRS 3 Euro PP impact (€m) (€m) Net debt at beginning of period (A) 348.7 398.3 (*) Gross cash flow from operations before cost of net financial debt and tax 197.2 Tax paid - 52.8 (
Slide 34: 2014 simplified balance sheet (IFRS)
2014 SIMPLIFIED BALANCE SHEET (IFRS) SOPRA STERIA 2013 2014 Reported Sopra Steria Sopra (€m) (€m) Goodwill 1,449.3 317.5 Allocated intangible assets 174.6 51.4 Other fixed assets 230.0 56.7 Equity-accounted investments 146.8 118.8 Fixed assets 2,000.7 544.4 Net deferred tax 146.6 23.5 Trade accounts
Sopra Steria Group — Non-Deal Roadshow (December 2015) on 6ix