Slide 1: Annual Results 2009
a mobilite Connectivite availability ae Connectivity Mo bility adaptabilite disponibile enteral 2009 ANNUAL RESULTS econocom* mobility on demand
Slide 2: Agenda
AGENDA £ Group profile £ Strong increase in results £ A solid financial position £ 2009 : strong commercial dynamism £ 2009 : a year of investments £ The Econocom Group share £ Conclusion and outlooks 2
Slide 3: Group profile
Group profile econocom © www.econocom.com mobility ondemand
Slide 4: The Group
THE GROUP £ An ICT services provider, specialized in B-to-B £ Four complementary fields of expertise l IT & Telecom financing and asset management l Supplier of IT products and solutions l IT services l Telecom solutions 4
Slide 5: The Group
THE GROUP £ A direct presence in 8 European countries* and in Morocco £ 2,266 employees including 1,600 engineers and technicians £ More than 25 years of experience £ Listed since 1986 (Euronext Bruxelles) * Belgium, France, the Netherlands, Italy, Spain, Luxemburg, Germany, the United Kingdom 5
Slide 6: Our vision of the market
OUR VISION OF THE MARKET £ The new technologies and mobility solutions have transformed organizations and generated new needs for users. £ A key issue: to ensure that all company employees have ANY TIME, ANYWHERE the communication tools and ACCESS TO THE INFORMATION necessary to efficiently carry
Slide 7: Our mission
OUR MISSION Econocom guides and supports its customers in IT and telecom infrastructures management by providing mobility solutions customized to their users. 7
Slide 8: Strategic plan
STRATEGIC PLAN A five-year strategic plan (2008 – 2012) A strong strategic axis supporting the group s growth « Reinforce our leadership by uniting our talents in the scope of enterprise solutions » 8
Slide 9: Strategic plan
STRATEGIC PLAN INNOVATION AT THE HEART OF THE ECONOCOM STRATEGY Strategic plan 2003-2007 Strategic plan 2008-2012 To regain leadership Reinforce our leadership through innovation by uniting our talents in the scope of enterprise solutions 9
Slide 10: Strategic plan
STRATEGIC PLAN ENTERPRISE SOLUTIONS 4 differentiating offerings and cross-activity to Econocom businesses IT equipment Printing resources Deadlines and supply with Telecom with costs with resources with FOR A BETTER MARKET PENETRATION 10
Slide 11: Strong increase in results
Strong increase in results a www.econocom.com mobility ondemand econocom ©
Slide 12: Strong increase in results
STRONG INCREASE IN RESULTS Revenue Recurring Net earnings Cash flow operating per share profit 759.3 M€ 28.7 M€ 0.86 € 35.9 M€ +5.9% +12% +15.5% +25.1% 12
Slide 13: Strong increase in results: revenue
STRONG INCREASE IN RESULTS Revenue (M€) 759 717 + 5.9% 701 + 2.3% + 18.8 % 590 2006 2007 2008 2009 13
Slide 14: Strong increase in results: recurring operating profit
STRONG INCREASE IN RESULTS Recurring operating profit (M€) 28.7 + 12.1% 24.5 25.6 + 4.5% + 48.5 % 16.5 2006 2007 2008 2009 14
Slide 15: Consolidated P&L statement as of December 31, 2009
STRONG INCREASE IN RESULTS Consolidated P&L statement as of December 31, 2009 (M€) 2008 2009 Revenue 716.9 759.3 +5.9% Recurring operating profit 25.6 28.7 +12.1% Operating profit 25.0 28.7 Profit before tax 24.7 28.1 Tax (5.8) (7.8) +8.0% Net profit, group share 18.8 20.3 Net earnings per share (€)
Slide 16: Consolidated revenue per activity
STRONG INCREASE IN RESULTS Consolidated revenue per activity (M€) Evolution (%) Adjusted 2009 (includind Current basis intra-group eliminations) IT Financial Services 420.6 +17.7% N/A Products and Solutions 185.8 -3.3% -1.6% Managed Services 125.6 -8.2% -6.0% Telecom Services 27.3 -10.5% +5.6% TOTAL
Slide 17: IT Financial Services
IT FINANCIAL SERVICES 23.4 421 357 16.9 2008 2009 2008 2009 Revenue Recurring operating profit 18% growth in revenue and 38% in recurring operating profit 17
Slide 18: IT Financial Services
IT FINANCIAL SERVICES £ Companies are seeking financing solutions and administrative management £ An activity that fully benefits to the success of the four enterprise solutions £ A commercial, technical and financial capacity to sign major contracts: 2 multi-year contracts exceeding €50 million
Slide 19: Products and Solutions
PRODUCTS AND SOLUTIONS 192 186 3.2 2.8 2008 2009 2008 2009 Revenue Recurring operating profit Resistance of the activity in a lackluster IT investment market. 19
Slide 20: Products and Solutions
PRODUCTS AND SOLUTIONS Good results of the activity due to: £ Commercial investments begun end 2007. £ The significant position of the public sector (> 35%) in the client portfolio. £ The signing of a very big 3-year contract in France. £ A business model built around variable costs: logistical,
Slide 21: Managed Services
MANAGED SERVICES 136 6.1 126 2.9 2008 2009 2008 2009 Revenue Recurring operating profit A performance impacted by economic context and investments 21
Slide 22: Managed Services
MANAGED SERVICES £ Resistance of the outsourcing activity in France and in the Benelux. £ A difficult economic context for businesses in project (deployment, consulting, integration) which suffered from cancellations or postponements of projects. £ Investments in the new remote services center in
Slide 23: Telecom Services
TELECOM SERVICES 30 27 1.3 0.3 2008 2009 2008 2009 Revenue Recurring operating profit Decrease of customers investments and operators fees. But the integration and outsourcing services realized a double-digit growth. 23
Slide 24: Telecom Services
TELECOM SERVICES £ The telecom equipment distribution and opening lines activity is impacted by the decline or postponement of companies investments, and by lower fees paid by operators. £ Confirmed success of telecom outsourcing offers (120,000 lines outsourced at the end of 2009) which contribut
Slide 25: A solid financial position
A solid financial position econocom © www.econocom.com mobility ondemand
Slide 26: A solid financial position
A SOLID FINANCIAL POSITION État consolidé de la 2008 situation 2009 financière au 30.12.2009 2008 (M€) 2009 NON CURRENT ASSETS 66.8 72.8 SHAREHOLDER’S EQUITY 84.4 84.6 CURRENT ASSETS 300.8 274.3 LIABILITIES 283.2 262.5 Inventories 7.6 6.2 Provisions 4.0 6.6 Accounts receivable 209.6 177.5 Accounts p
Slide 27: Growth of net cash
A SOLID FINANCIAL POSITION Growth of net cash (M€) 29.6 24.2 2008 2009 27
Slide 28: Stable shareholders' equity
A SOLID FINANCIAL POSITION Stable shareholders’ equity (M€) 84.4 84.6 2008 2009 After including €6 million of gross dividend (June 2009) and €15.5 million of own-shares acquisition (net ) 28
Slide 29: Cash flow statement
A SOLID FINANCIAL POSITION CASH FLOW STATEMENT (M€) 2008 2009 Evolution Cash flow 28.7 35.9 + 25% Change in working capital and tax (4.9) 1.0 Cash flow from operations 23.8 36.9 + 55% Investment flow (6.4) (7.9) Acquisition of own-shares (net) (9.2) (15.5) Dividends paid (6.0) (5.7) Reimbursement of
Slide 30: 2009: a strong commercial dynamism
2009: a strong commercial dynamism
Slide 31: 2009: A strong commercial dynamism
2009: A STRONG COMMERCIAL DYNAMISM Growth of market shares in all our businesses £ Increase in revenue for Econocom Group: +5.9% in 2009 £ IT investments declined of 8% (1) in 2009 (15% for products). (1) Gartner / Forrester 31
Slide 32: Enterprise solutions: a favorable reception of the market
2009: A STRONG COMMERCIAL DYNAMISM Enterprise solutions: a favorable reception of the market £ The first enterprise solutions successes l 11 customers l More than €50 million revenue in 2009 l More than €150 million total contracts revenue signed l 150,000 managed assets OFFERS THAT SPEED THE G
Slide 33: Contracts signed
2009: A STRONG COMMERCIAL DYNAMISM Contracts signed A leading aircraft manufacturer World leader in consulting services Important European energy French Group of food Group retailers 33
Slide 34: Each business signed its largest contract ever
2009: A STRONG COMMERCIAL DYNAMISM Each business of the group has signed its largest contract ever in the last 18 months … A leading aircraft manufacturer Important European energy World leader in consulting Group services 34
Slide 35: Keeping a diversified portfolio
2009: A STRONG COMMERCIAL DYNAMISM ... While keeping a diversified portfolio The top 5 customers % of revenue Roularta Media Group 8.3% A leading aircraft manufacturer 3.5% Important European energy Group 3.3% Ministère de l’Intérieur (France) 3.0% Veolia Environnement 2.6% The top 20 customers repr
Slide 36: 2009: a year of investments
2009: a year of investments econocom © www.econocom.com mobility ondemand
Slide 37: Creation of a virtual remote services center
A YEAR OF INVESTMENTS CREATION OF A VIRTUAL REMOTE SERVICES CENTER £ Composed of 3 unified centers: Les Ulis (France), Woluwe (Belgium) et Rabat (Morocco) £ I n c r e a s i n g o u r c o m p e t i t i v e p o s i t i o n a n d o u r competitiveness in the remote service market (service desk, IT po
Slide 38: New business units
A YEAR OF INVESTMENTS NEW BUSINESS UNITS MEDICAL BU MULTIMEDIA BU IN BELGIUM IN FRANCE 38
Slide 39: Commercial investments
A YEAR OF INVESTMENTS COMMERCIAL INVESTMENTS £ Net recruitment of around 15 commercials and agents. The Econocom sales force is made up by almost 380 people. £ Development of web tools: « Biznet by econocom », « Econocomshop », … £ New website for the Group 39
Slide 40: Launching of the 5th enterprise solution
END OF MARCH 2010… Launching of the 5th enterprise solution integrating procurement, managed services and financing 40
Slide 41: The Econocom Group share
The Econocom Group share econocom © www.econocom.com mobility ondemand
Slide 42: The Econocom Group share
THE ECONOCOM GROUP SHARE The Econocom Group share performance as of March 12th, 2010 Market capitalization as of March 12th, 2010 243 M€ Quoted price as of March 12th, 2010 9.80 € Market capitalization 19 M€ / Shareholders’ equity 2.87 17,8 M€ Gross dividend (Shareholders’ Meeting – May 18, 2010) 0.
Slide 43: Conclusion and outlooks
Conclusion and outlooks econocom © www.econocom.com mobility ondemand
Slide 44: Conclusion
CONCLUSION £ A year of growth in revenue, cash flow and results £ A strategic axis which supports the group activity: enterprise solutions meet a real success £ The largest contracts ever signed in the group in each activity £ A year of investments 44
Slide 45: Outlooks
OUTLOOKS £ Order books and business outlooks better than a year ago £ Launching of innovative offerings £ A strong financial position allowing to explore external growth opportunities THE GROUP MANAGEMENT ANTICIPATES A NEW YEAR OF GROWTH IN 2010 45
Slide 46: Publications / Agenda 2010 / 2011
PUBLICATIONS/ AGENDA 2010 / 2011 £ First-quarter trading statement April 21, 2010 £ Annual General Meeting May 18, 2010 £ Preliminary half-year figures press release July 28, 2010 £ Half-year results press release August 31, 2010 £ Information meeting September 1, 2010 £ Third-quarter trading
Slide 47: www.econocom.com
www.econocom.com 47