Slide 1: 2013 Full Year Results Presentation
Talented Together 2013 FULL YEAR RESULTS PRESENTATION Paris, 19 February 2014
Slide 2: Agenda
AGENDA 1) 2013 Highlights 2) Financial results 3) Market, strategy & objectives 2 2013 Results presentation
Slide 3: 2013 Highlights
2013 HIGHLIGHTS Pascal Leroy, Chief Executive Officer
Slide 4: Reinforcement of the Group Governance
REINFORCEMENT OF THE GROUP GOVERNANCE Pierre Pasquier Pascal Leroy Vincent Paris Chairman Chief Executive Officer Deputy CEO ‐ Oversees the strategy, ‐ Ensures general ‐ Assists the CEO in including M&A management of the operational management ‐ Leads corporate Group of the Group and financial ‐ Hel
Slide 5: 2013: Year of Success and Development
2013: YEAR OF SUCCESS AND DEVELOPMENT Solid performance and sustained growth over the year Ambitious and determined M&A strategy Value-creating corporate development plan for our Customers Employees Shareholders 5 2013 Results presentation
Slide 6: Quality Performance in 2013
QUALITY PERFORMANCE IN 2013 1,349 688 Revenue (€m) 661 Operating profit on business activity (€m) 68 109 41 H1 H2 2013 Total growth +12.1% +9.7% +10.9% Organic growth +4.9% +3.7% +4.3% Operating profit on business activity 6.2% 9.8% 8.1% 6 2013 Results presentation
Slide 7: Revenue by Business Line
REVENUE BY BUSINESS LINE Real Estate 12% O/W Human Software SOFTWARE 24% Resources Sopra Banking 64% 25% Software BUSINESS LINES Consulting Other 7% Fixed-price 75% Services Services 29% Projects 25% O/W SERVICES 39% Application Outsourcing 7 2013 Results presentation
Slide 8: Revenue by Vertical Market
REVENUE BY VERTICAL MARKET Key Accounts Retail Telecom & Media 4% Financial 9% Services 33% Public 17% +13% vs 2012 Sector VERTICALS Public Sector / Defense 16% 21% Manufacturing Services, Transport & Utilities +18% vs 2012 8 2013 Results presentation
Slide 9: Revenue by Geographic Zone
REVENUE BY GEOGRAPHIC ZONE Rest of World 13% O/W SOFTWARE 53% France 34% Rest of Europe (excl. France) World 33% ZONES Rest of World 67% France Spain 8% United 7% Kingdom 8% O/W SERVICES 77% France 9 2013 Results presentation
Slide 10: Trends in 2013
TRENDS IN 2013 France Europe (excl. France) +4.1% vs 2012 +9.6% vs 2012 Sopra Banking Software Top 30 clients -0.3% vs 2012 53% of sales 10 2013 Results presentation
Slide 11: Constant Increase in Headcount
CONSTANT INCREASE IN HEADCOUNT 16,290 14,310 +14% vs 2012 10,230 9,380 6,850 5,935 6,060 4,930 915 2004 2012 2013 World (excl. France) France Group 11 2013 Results presentation
Slide 12: Key Figures for the Financial Year
KEY FIGURES FOR THE FINANCIAL YEAR Revenue Organic growth €1,349m +4.3% +€132m vs 2012 Total growth +10.9% Operating profit on business activity Net profit €109m €71m 8.1% of revenue 5.3% of revenue 12 2013 Results presentation
Slide 13: Announced Objectives Achieved
ANNOUNCED OBJECTIVES ACHIEVED Revenue • Growth from 2 to 5% Operating profit on • Between 7.3 and 7.7% business activity • Participate in market Market consolidation in Europe • Enrich our portfolio of Products solutions Net debt • Between 150 and €170m 13 2013 Results presentation
Slide 14: Financial Results
Talented together FINANCIAL RESULTS François Lefebvre, Chief Financial Officer
Slide 15: Results in Line with Announced Objectives
RESULTS IN LINE WITH ANNOUNCED OBJECTIVES 2012 2013 2013 (€m) (€m) (%) Revenue 1,216.7 1,349.0 Operating profit on business activity 109.6 108.9 8.1% Profit from recurring operations 103.2 101.1 7.5% Operating profit (EBIT) 91.3 103.9 7.7% Net profit - Group share 55.6 71.4 5.3% EPS (€) 4.67 € 6.00
Slide 16: Operating Profit on Business Activity
OPERATING PROFIT ON BUSINESS ACTIVITY 2012 2013 2013/2012 (€m) (€m) (%) Revenue 1,216.7 1,349.0 + 10.9% Staff costs - employees - 811.8 - 911.9 + 12.3% Staff costs - contractors - 100.1 - 105.6 + 5.5% Staff costs - Total - 911.9 - 1017.5 + 11.6% Operating expenses - 178.2 - 201.3 + 13.0% Depreciatio
Slide 17: Operating Profit
OPERATING PROFIT 2012 2013 2013 (€m) (€m) (%) Operating profit on business activity 109.6 108.9 8.1% Expenses related to stock options and free share awards - 2.2 - 3.0 Amortisation of allocated intangible assets - 4.2 - 4.8 Profit from recurring operations 103.2 101.1 7.5% Other operating income an
Slide 18: Net Profit
NET PROFIT 2012 2013 2013 (€m) (€m) (%) Operating profit 91.3 103.9 7.7% Cost of net financial debt - 7.2 - 7.0 Other operating income and expenses - 1.0 - 1.4 Tax expense - 33.6 - 32.5 Share of net profit from equity-accounted companies 6.1 8.4 Net profit 55.6 71.4 5.3% 18 2013 Results presentation
Slide 19: Balance Sheet
BALANCE SHEET 2012 2013 (€m) (€m) Goodwill 314.6 317.5 Allocated intangible assets 56.5 51.4 Other fixed assets 45.7 56.7 Equity-accounted investments 113.8 118.8 Fixed assets 530.6 544.4 Trade accounts receivable (net) 384.3 442.4 Other assets and liabilities - 405.6 - 474.3 Operating assets and li
Slide 20: Change in Net Debt
CHANGE IN NET DEBT 2012 2013 (€m) (€m) Net debt at beginning of period (A) 46.4 204.0 Gross cash flow from operations before net financial debt and tax 112.2 93.6 Tax paid - 41.8 - 36.8 Changes in working capital requirements - 8.6 - 1.7 Net cash flow from operations 61.8 55.2 Change relating to ope
Slide 21: Bank Covenants
BANK COVENANTS PRO / Cost of net debt Net debt / Equity Must be Must be 56% >5 39.07 < 100% 35% 20.75 17.27 7% 2011 2012 2013 2011 2012 2013 Net debt / EBITDA Must be 1.46 Net financial debt is adjusted for <3 1.17 employee profit sharing (€29.8 m) for the calculation of bank covenants 0.20 2011 201
Slide 22: Market, Strategy & Objectives
MARKET, STRATEGY & OBJECTIVES Pascal Leroy, Chief Executive Officer
Slide 23: IT Market Evolving at a Furious Pace
IT MARKET EVOLVING AT A FURIOUS PACE 3 major challenges for our clients Service quality and cost control of existing systems Development & innovation to support growth Outsourcing, “on demand” or “as a service” to optimise competitiveness Technology New New advances uses opportunities 23 2013 Result
Slide 24: Heading Straight for 2015
HEADING STRAIGHT FOR 2015 Period of successive global crises, but: Sopra 2015 • Succesful spin-off of Axway Major transformations: • Margin protection • Industrialisation • France as sanctuary • Expansion in Europe 1,349 2015 OBJECTIVES • Improved delivery quality • Revenue of €1.5 to €2bn • Strong
Slide 25: Our Major Strategic Initiatives
OUR 4 MAJOR STRATEGIC INITIATIVES Provide support for our Accelerate European clients’ business Added development based on challenges and Europe a reinforced Group Value competitive edge culture Reinforce our position Software Innovation Offer our clients the as software developer Solutions & Offers
Slide 26: Ownership Structure
OWNERSHIP STRUCTURE Pa s qui er Odi n Hi s tori ca l Fa mi l y Fa mi l y Ma na gers 67.31% 27.95% 4.74% Founders & Sopra GMT Geni nfo Publ i c Ma na gers 9.29% 27.97% 12.04% 50.70% Sha rehol der pa ct control s 49.30% of Sopra ca pi ta l a nd voti ng ri ghts Sopra GMT, guaranteeing Sopra’s independe
Slide 27: Objectives & Ambitions for 2014
OBJECTIVES & AMBITIONS FOR 2014 Objectives Organic growth between 3% and 5% Operating margin on business activity improvement Year-end net debt between €110 and €130m Ambitions Continue dynamic external growth strategy Ongoing transformation of our business model to anticipate future demands 27 2013
Slide 28: Appendices
APPENDICES <> sopra
Slide 29: Performance by Division
PERFORMANCE BY DIVISION 2012 2013 2013 Organic margin margin revenue growth (%) (%) (€m) (%) France 8,6% 8,3% 828,0 + 4,1 % United Kingdom 6,5% 7,4% 83,9 + 1,8 % Spain 6,1% 6,2% 75,9 + 1,5 % Italy 2,8% 3,9% 44,0 + 12,2 % Belgium 2,7% 2,9% 13,7 + 24,5 % Switzerland 12,4% 10,4% 10,6 - 3,6 % Germany 6,
Slide 30: Income Statement
INCOME STATEMENT 2012 2013 (€m) (€m) Revenue 1,216.7 1,349.0 Staff costs - employees - 811.8 - 911.9 Staff costs - contractors - 100.1 - 105.6 Operating expenses - 178.2 - 201.3 Depreciation, amortization and provisions - 17.0 - 21.3 Operating profit on business activity 109.6 108.9 Expenses related
Slide 31: Change in Equity
CHANGE IN EQUITY 2012 2013 (€m) (€m) Equity position at beginning of period 273.9 305.3 Net profit - Group share 55.6 71.4 Distribution in cash (ordinary) - 22.6 - 20.2 Capital increase through exercise of share subscription options 0.0 1.4 Acquisition or disposal of treasury shares 0.7 0.1 Share-ba
Slide 32: Forward-Looking Information
FORWARD-LOOKING INFORMATION This presentation contains forecasts in respect of which there are risks and uncertainties concerning the Group’s future growth and profitability. The Group highlights the fact that the signature of licence contracts, which often represent investments for clients, are mor
Slide 33: Contacts
CONTACTS Investor Relations Team Sopra Kathleen CLARK BRACCO +33 (0) 1 40 67 29 61 Financial Communications Department Lima ABDELLAOUI +33 (0) 1 40 67 86 88 9 bis, rue de Presbourg – 75116 Paris Arthur CARLI +33 (0) 1 40 67 29 75 www.finance.sopragroup.com investors@sopragroup.com 33 2013 Results pr