Sopra Steria Group Sa · EURONEXT:SOP
Sopra Steria Group Sa — Shareholder Meeting (June 2019)
36 slides from Sopra Steria Group Sa's shareholder meeting presentation, Jun 12, 2019
Slide 1: Annual General Meeting, Paris, 12 June 2019
ANNUAL GENERAL MEETING Paris, 12 June 2019 *Réussir la transformation. Ensemble. Delivering Transformation. Together.*
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This document contains forecasts in respect of which there are risks and uncertainties concerning Sopra Steria’s future growth and profitability. The Group highlights the fact that the signature of licence contracts, which often represent investments for clients, are more
Slide 3: Annual General Meeting Summary
ANNUAL GENERAL MEETING SUMMARY 1|Annual General Meeting Agenda 2|Board of Directors’ Report - 2018 financial statements and operational situation 3|Auditors’ Reports 4|Information about proposed resolutions 5|Discussion 6|Vote 7|Closing 3 2019 Annual General Meeting – 12/06/2019
Slide 4: Agenda (1/3)
AGENDA (1/3) Notice published in the “Bulletin des Annonces Légales Obligatoires” on 24 May 2019 Requiring approval at the Ordinary General Meeting 1. Approval of the individual financial statements for the financial year ended 31 December 2018; approval of non-deductible expenses. 2. Approval of th
Slide 5: Agenda (2/3)
AGENDA (2/3) Notice published in the “Bulletin des Annonces Légales Obligatoires” on 24 May 2019 Requiring approval at the Ordinary General Meeting 8. Approval of the principles and criteria for the determination, distribution and allocation of items of compensation for the Chairman. 9. Approval of
Slide 6: Agenda (3/3)
AGENDA (3/3) Notice published in the “Bulletin des Annonces Légales Obligatoires” on 24 May 2019 Requiring approval at the Extraordinary General Meeting 12. Delegation of powers to be given to the Board of Directors, for a period of 18 months, to issue share subscription warrants to be allotted to t
Slide 7: Annual General Meeting Summary
ANNUAL GENERAL MEETING SUMMARY 1|Annual General Meeting Agenda 2|Board of Directors’ Report – 2018 financial statements and operational situation 3|Auditors’ Reports 4|Information about proposed resolutions 5|Discussion 6|Vote 7|Closing 7 2019 Annual General Meeting – 12/06/2019
Slide 8: Positioning and Strategy Reminder
POSITIONING AND STRATEGY REMINDER 8 2019 Annual General Meeting – 12/06/2019
Slide 9: Sopra Steria at 31/12/2018
SOPRA STERIA AT 31/12/2018 A EUROPEAN LEADER IN DIGITAL TRANSFORMATION Top 5 European digital services Top 10 operating in Europe companies Around 45,000 Operations in End-to-end 2018 revenue of €4.1bn Employees 25 countries approach Revenue to 31/12/2018 Rest of the World Business Process Services
Slide 10: An Independent, Value-Creating Corporate Plan
AN INDEPENDENT, VALUE-CREATING CORPORATE PLAN Expanding European Ethics and Values - Organic growth …in services and - Targeted worldwide in external growth software Independent - Key shareholder - Employee Added Value shareholding Unique - Consulting - Software - End-to-end - Entrepreneurial - Vert
Slide 11: Reaffirmed Strategic Ambitions
REAFFIRMED STRATEGIC AMBITIONS Services Strategic partner for large public authorities, financial and industrial players, and strategic companies in Europe, providing end-to-end support for the transformation of their business and operating models, making the best possible use of digital and the G
Slide 12: Strategic Levers
STRATEGIC LEVERS Rollout of digital in all offerings Strengthening of consulting Development of Excellence Centres to capitalise on new technologies (AI, blockchain, IoT, RPA, etc.) Investments in reusable components and development platforms to reduce time to market Offering Rollout of an e
Slide 13: Integration of Digital in Offerings
INTEGRATION OF DIGITAL IN OFFERINGS Market Vision / Convictions Value proposition Transformation across all industries Business-oriented transformation Consulting in the areas of operational strategy, digital, cloud Digital and Towards the platform enterprise and security security by design End-to-e
Slide 14: Strategic Objectives
STRATEGIC OBJECTIVES Organic growth of between 4% and 6% per year Revenue Acquisition strategy Operating margin Operating margin on business activity ~10% FCF 5% to 7% of revenue 14 2019 Annual General Meeting – 12/06/2019
Slide 15: 2018 Financial Results
2018 FINANCIAL RESULTS 15 2019 Annual General Meeting – 12/06/2019
Slide 16: Key Figures
KEY FIGURES 2018 Revenue Operating profit on business Net profit attributable to the Group activity €4,095.3m €307.9m €125.1m Organic growth* of 4.9% Taking into account a tax rate of 39.6 % due to Growth at constant exchange rate of 7.4% i.e. 7.5% of revenue non-recurring items for around €15m Tota
Slide 17: Operating Performance by Reporting Unit
OPERATING PERFORMANCE BY REPORTING UNIT Revenue Operating profit on business activity 2018 2017 Organic 2018 2017 IFRS 15 Restated* growth IFRS 15 IFRS 15 (€m) (€m) (%) (% of Rev.) (% of Rev.) France 1,699.5 1,623.5 + 4.7% 9.1% 8.6% United Kingdom 783.1 784.1 - 0.1% 5.7% 6.9% Other Europe 997.1 871.
Slide 18: 2018, a Transitional Year
2018, A TRANSITIONAL YEAR… BOLSTERING THE GROUP IN RESPONSE TO A CHALLENGING WORKLOAD Heavy workload resulting in delivery issues Internal growth Acquisitions Transformations underway at all entities Licence revenue lower than expected Investments to improve the model Reinforced organisation
Slide 19: ...and a Year of Big Leaps Forward
…AND A YEAR OF BIG LEAPS FORWARD Robust growth in business activity Structural improvement in cash generation Continued progress in raising the value of offerings First encouraging signs in the United Kingdom Significant headway for Sopra Banking Software’s products External recognition for our sust
Slide 20: Robust Growth
ROBUST GROWTH ORGANIC REVENUE GROWTH OF 4.9% IN 2018 +5.2% +4.9% +3.5% Q4 2018: +5.5% +2.0% 2015 2016 2017 2018 15-year annual average: +5.5% (2004–2018) 20 2019 Annual General Meeting – 12/06/2019
Slide 21: Structural Improvement in Cash Generation
STRUCTURAL IMPROVEMENT IN CASH GENERATION Cash conversion ratio Days Sales Outstanding (DSO) FCF(1) / Operating profit on business activity 50% 43% 41% 70 days 68 days 20% 61 days 2015 2016 2017 2018 2016 2017 2018 (1) Free cash flow excluding sales of trade receivables and after adjusting for non-r
Slide 22: Continuing to Raise the Value of Offerings
CONTINUING TO RAISE THE VALUE OF OFFERINGS IN 2018, CONSULTING ACCOUNTED FOR 10% OF GROUP REVENUE CONSULTING ACTIVITIES Highlights of 2018 as % of Group revenue 10% 2,950 consultants in the of revenue Group (up 23% from 2017) Successful launch of Consulting business in the United Kingdom (200+ 7.5%
Slide 23: First Encouraging Signs in the United Kingdom
FIRST ENCOURAGING SIGNS IN THE UNITED KINGDOM H2 MARKEDLY BETTER THAN H1 Organic growth Seasonality of revenue in 2018 0.4% 3.2% -0.7% -0.1% H1 2018 H2 2018 -7.7% -3.4% 2015 2016 2017 2018 Operating profit on business activity Seasonality of 8.1% operating margin 7.3% in 2018 6.9% 7.0% 4.5% 5.7% H1
Slide 24: Substantial Progress Building Up Sopra Banking Software
SUBSTANTIAL PROGRESS MADE BUILDING UP SOPRA BANKING SOFTWARE Last module (Enterprise Several go-lives illustrating our Account Management) ability to successfully complete delivered to La Banque major transformation projects in Postale the financial world Initial successes for the Digital eXperience
Slide 25: Sopra Steria Singled Out for Sustainability Progress
SOPRA STERIA SINGLED OUT FOR SUSTAINABILITY PROGRESS HIGH RECOGNITION FROM TWO KEY ORGANISATIONS IN EARLY 2019 Latest achievements CDP Climate Change Workforce Ethics and Values January 2019: Sopra Steria is named to the A List in recognition of its environmental performance Promoting equal Behaving
Slide 26: Income Statement
INCOME STATEMENT FINANCIAL YEAR 2018 2018 2018 2017 2017 IFRS 15 IFRS 15 IFRS 15 IFRS 15 (€m) (% of Rev.) (€m) (% of Rev.) Revenue 4,095.3 3,831.1 Organic growth 4.9% Operating profit on business activity 307.9 7.5% 330.7 8.6% Expenses related to stock options and related items - 22.8 - 21.2 Amortis
Slide 27: Sound Financial Position at 31/12/2018
SOUND FINANCIAL POSITION AT 31/12/2018 Available undrawn facilities €1.1bn i.e. 58% of authorised amount(1) Equity: €1,329.2m Net financial debt: €620.9m EBITDA leverage: 1.68x Maturities • Bank borrowing facilities: 2023 • Bond: 2019 Note: Assuming a constant amount of commercial paper (€256m at 31
Slide 28: Annual General Meeting Summary: Auditors' Reports
ANNUAL GENERAL MEETING SUMMARY 1|Annual General Meeting Agenda 2|Board of Directors’ Report – 2018 financial statements and operational situation 3|Auditors’ Reports 4|Information about proposed resolutions 5|Discussion 6|Vote 7|Closing 28 2019 Annual General Meeting – 12/06/2019
Slide 29: Auditors' Reports
AUDITORS’ REPORTS Statutory Auditors’ report on the consolidated and individual financial statements Statutory Auditors’ special report on regulated agreements and commitments 29 2019 Annual General Meeting – 12/06/2019
Slide 30: Annual General Meeting Summary: Proposed Resolutions
ANNUAL GENERAL MEETING SUMMARY 1|Annual General Meeting Agenda 2|Board of Directors’ Report - 2018 financial statements and operational situation 3|Auditors’ Reports 4|Information about proposed resolutions 5|Discussion 6|Vote 7|Closing 30 2019 Annual General Meeting – 12/06/2019
Slide 31: Information about Proposed Resolutions
INFORMATION ABOUT PROPOSED RESOLUTIONS Ordinary General Meeting The resolutions submitted for the approval of the Ordinary General Meeting require a quorum of at least one fifth of the total voting shares and a majority of the votes of the shareholders present or represented by proxy holders. Extr
Slide 32: Annual General Meeting Summary: Discussion
ANNUAL GENERAL MEETING SUMMARY 1|Annual General Meeting Agenda 2|Board of Directors’ Report - 2018 financial statements and operational situation 3|Auditors’ Reports 4|Information about proposed resolutions 5|Discussion 6|Vote 7|Closing 32 2019 Annual General Meeting – 12/06/2019
Slide 33: Annual General Meeting Summary: Vote
ANNUAL GENERAL MEETING SUMMARY 1|Annual General Meeting Agenda 2|Board of Directors’ Report - 2018 financial statements and operational situation 3|Auditors’ Reports 4|Information about proposed resolutions 5|Discussion 6|Vote 7|Closing 33 2019 Annual General Meeting – 12/06/2019
Slide 34: End of the Annual General Meeting
END OF THE ANNUAL GENERAL MEETING 34 2019 Annual General Meeting – 12/06/2019
Slide 35: Alternative Performance Measures
ALTERNATIVE PERFORMANCE MEASURES Restated revenue: Revenue for the prior year, expressed on the basis of the scope and exchange rates for the current year. Organic revenue growth: Increase in revenue between the period under review and restated revenue for the same period in the prior financial year
Slide 36: Contacts
CONTACTS Investor Relations Team Olivier PSAUME T. +33 (0)1 40 67 68 16 Amélie CAULLIEZ T. +33 (0)1 40 67 29 75 Lima ABDELLAOUI T. +33 (0)1 40 67 86 88 Sopra Steria Delivering Transformation. Together. Financial Communications Department 6 avenue Kleber 75116 Paris www.soprasteria.com - investors@so