Sopra Steria Group Sa · EURONEXT:SOP
Sopra Steria Group Sa — H1 2014 Earnings Presentation
24 slides from Sopra Steria Group Sa's earnings presentation, Jul 25, 2014
Slide 1: Results Presentation for the First Half Year 2014
Talented Together RESULTS PRESENTATION FOR THE FIRST HALF YEAR 2014 Paris, 25 July 2014
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This document contains forecasts in respect of which there are risks and uncertainties concerning Sopra Group’s future growth and profitability. The Group highlights the fact that the signature of licence contracts, which often represent investments for clients, are more s
Slide 3: Agenda
AGENDA 1) Highlights 2) Financial results 3) Market, strategy & objectives 3 First half year 2014
Slide 4: Highlights
HIGHLIGHTS Vincent Paris, Chief Executive Officer
Slide 5: Highlights for the 1st Half Year
HIGHLIGHTS FOR THE 1ST HALF YEAR GROUP’S PERFORMANCE CONSULTING & IT SERVICES Growth and profitability Market share increase in on target Europe SOLUTIONS SOPRA - STERIA Ramp-up of our strategy dedicated to solutions Sopra Steria tie-up on track -Sopra Banking Software -HR Solutions 5 First half yea
Slide 6: Growth and Profitability on Target
GROWTH AND PROFITABILITY ON TARGET 722 661 Revenue (€m) Operating profit on business activity (€m) 358 364 52 41 Q1 Q2 H1 2014 H1 2013 Total growth + 11.5 % + 7.1 % + 9.3 % + 12.1 % Organic growth + 4.4 % + 4.7 % + 4.5 % + 4.9 % Operating profit on business activity 7.2 % 6.2 % 6 First half year 201
Slide 7: Performance by Division
PERFORMANCE BY DIVISION H1 2013 H1 2014 H1 2014 Organic Op. profit on Op. profit on revenue growth business act. business act. (€m) (%) (%) (%) France 7.5% 8.3% 393.3 + 2.5 % Europe (excl. France) 2.8% 2.1% 129.9 + 4.4 % Sopra Banking Software 9.7% 6.1% 120.7 + 1.6 % Other Solutions - 2.2% 12.0% 78.
Slide 8: Breakdown of Revenue at Group Level
BREAKDOWN OF REVENUE AT GROUP LEVEL €722m IN H1 2014 Retail Software Telecom 28% & Media BUSINESS 5% LINES 8% Financial 72% Public services Services 36% sector 17% VERTICALS 14% Rest of 20% 34% World Manufacturing REGIONS Services, 66% France Transport & Utilities 8 First half year 2014
Slide 9: Breakdown of Revenue for Service Activities
BREAKDOWN OF REVENUE FOR SERVICE ACTIVITIES €523m IN H1 2014 (72% OF SALES) TOP 30 CLIENTS (51% OF SALES) Managed services 7% Other Application Services 23% Outsourcing 41% SERVICES Spain 8% United Kingdom Consulting 8% Rest of 8% 21% World 9% REGIONS Fixed-Price Projects 75% France 9 First half yea
Slide 10: Breakdown of Revenue for Software Activities
BREAKDOWN OF REVENUE FOR SOFTWARE ACTIVITIES €199m IN H1 2014 (28% OF SALES) Managed services 13% Licence 11% Integration REVENUE Human STREAMS 50% Services Resources 26% 30% Maintenance SOFTWARE 60% Sopra 10% Banking Europe Real Estate Software (excl. France) 35% REGIONS France 53% 12% Rest of Worl
Slide 11: Constant Increase in Headcount
CONSTANT INCREASE IN HEADCOUNT 17,160 16,290 14,310 10,230 10,765 9,380 6,060 6,395 4,930 31/12/2012 31/12/2013 30/06/2014 World (excl. France) France Group 11 First half year 2014
Slide 12: Key Figures for the 1st Half
KEY FIGURES FOR THE 1ST HALF Revenue Organic growth €722m + 4.5% +€61m vs H1 2013 Total growth + 9.3% Operating profit on business activity Net profit €52m €22m 7.2% of revenue 3.1% of revenue 12 First half year 2014
Slide 13: Financial Results
FINANCIAL RESULTS François Lefebvre, Chief Financial Officer
Slide 14: Income Statement
INCOME STATEMENT H1 2013 H1 2014 H1 2014 Variation (€m) (€m) (%) (%) Revenue 661.0 722.3 + 9.3% Staff costs - employees - 455.4 - 498.8 + 7.6% Staff costs - contractors - 53.1 - 48.3 Operating expenses - 101.2 - 112.7 Depreciation, amortization and provisions - 10.0 - 10.3 Operating profit on busine
Slide 15: Change in Net Debt
CHANGE IN NET DEBT H1 2013 H1 2014 (€m) (€m) Net debt at beginning of period (A) - 204.1 - 154.6 Gross cash flow from operations before net financial debt and tax 39.9 52.9 Tax paid - 15.4 - 13.5 Changes in working capital requirements - 50.9 - 49.4 Net cash flow from operations - 26.4 - 10.0 Change
Slide 16: Change in Equity
CHANGE IN EQUITY H1 2014 (€m) Equity position at beginning of period 357.9 Net profit - Group share 22.2 Distribution in cash (ordinary) - 22.6 Acquisition or disposal of treasury shares - 0.6 Share-based payments 2.1 Actuarial differences - 2.3 Change in financial instruments 0.3 Translation adjust
Slide 17: Balance Sheet
BALANCE SHEET 31/12 30/06 2013 2014 (€m) (€m) Goodwill 317.5 344.0 Allocated intangible assets 51.4 49.1 Other fixed assets 56.7 61.5 Equity-accounted investments 118.8 117.5 Fixed assets 544.4 572.1 Trade accounts receivable (net) 442.4 461.2 Other assets and liabilities - 474.3 - 474.3 Operating a
Slide 18: Bank Covenants at 30 June
BANK COVENANTS AT 30 JUNE PRO/ Cost of net debt Net debt / Equity Must be 91% Must be 23.88 24.76 >5 < 100% 56% 13.75 47% 30/06/2012 30/06/2013 30/06/2014 30/06/2012 30/06/2013 30/06/2014 Net debt / EBITDA Must be <3 1.46 1.40 Net financial debt is adjusted for employee profit 1.17 sharing (€27.1m)
Slide 19: Market, Strategy & Objectives
MARKET, STRATEGY & OBJECTIVES Vincent Paris, Chief Executive Officer
Slide 20: Addressing a Fast-Moving Market
ADRESSING A FAST-MOVING MARKET Digitalisation is transforming the economy Client disintermediation Personalisation of information Transformation of clients’ value chain (Mobility, Software & Solutions Machine to Machine) w/ value-added Services Technology advances and new uses result in major challe
Slide 21: An Increasingly Comprehensive Approach
AN INCREASINGLY COMPREHENSIVE APPROACH Corporate Social Network Cybersecurity Commitment Customer experience Machine to Transformation Machine projects Managed Services Consulting Cloud Long term Mobility Solutions relationships Implementation Application outsourcing Big data Enterprise architecture
Slide 22: Annual Targets for 2014
ANNUAL TARGETS FOR 2014 Ambitions of the stand-alone project remain intact Objectives Organic growth between 3% and 5% Operating margin on business activity improvement Year-end net debt between €130 and €160m Creation of Sopra Steria Group amplifies opportunities 22 First half year 2014
Slide 23: Questions & Answers
QUESTIONS & ANSWERS <> sopra
Slide 24: 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 24 First half year