Slide 1: ALTEN 2022 First Half Results
ALTEN 2022 First Half Results Simon Azoulay Chairman and Chief Executive Officer Bruno Benoliel Deputy Chief Executive Officer Paris, September 23rd 2022
Slide 2: Disclaimer
DISCLAIMER “This presentation may contain information that may be considered forward‐looking. This information constitutes trends or targets and should not be considered to be a forecast of the Company’s results or any other performance indicator. By its nature, this information is subject to risk a
Slide 3: Business and Highlights in First Half 2022
BUSINESS AND HIGHLIGHTS IN FIRST HALF 2022 September 23rd 2022 l ALTEN - 2022 First Half results
Slide 4: Alten, Leader in Engineering and Technology Consulting
ALTEN, LEADER IN ENGINEERING AND TECHNOLOGY CONSULTING (ETC) Revenue: €1,825.9M Oper. Profit on Activity: €208.6M 49,600 employees +30.9% 11.4% of 43 650 including 19.8% organic revenue engineers I NTERNATIONAL DECEMBER 2020 : 29,400 67.2% of revenue JUNE 2021 : 33,800 €1,227.6 M: +38.0% DECEMBER 20
Slide 5: Geographic Footprint per Continent (Number of Engineers)
GEOGRAPHIC FOOTPRINT PER CONTINENT (NUMBER OF ENGINEERS) June 2022 18,540 EUROPE (EXCLUDING FRANCE) June 2022 Dec. 2021 June 2022 FRANCE 10,800 16,690 June 2022 2,520 AMERICA 10,540 ASIA I PACIFIC Dec. 2021 Dec. 2 0 2 1 2,240 10,355 June 2022 Dec. 2021 1,250 MIDDLE‐EAST I AFRICA 6,770 Dec. 2021 1,09
Slide 6: Alten Group Is an Engineering & IT Services Company
ALTEN COVERS THE WHOLE PRODUCT LIFE CYCLE DEVELOPMENT FOR TECHNOLOGICAL PROJECTS IN ENGINEERING & IT SERVICES ENGINEERING SERVICES 75% IT & ENTERPRISE SERVICES 25% Customer Services ‐ MCO PMO Subsidiaries SW Devpt & IT applications specialised in (Cust.Mngt, retail, digital & web, Infrastructures ‐
Slide 7: Our Customers
ALTEN ONLY COVERS RISK LEVELS 2 & 3 Industrial companies: ODM & OEM – Tier one CIO’s & software editors (IT Enterprise services) Our Customers Risk Estimated Gross Positioning % Group activity level Margin & OPA With CAPEX: internal R&D, IP, Risk sharing, Prototyping, 4 pre‐production, Sofware editi
Slide 8: Breakdown of Turnover per Sector as at June 30th 2022
BREAKDOWN OF TURNOVER PER SECTOR (AS A % OF REVENUE) AS AT JUNE 30TH 2022 Automotive & Rail 19.8 % H1 2021 19.9 % ↗ Rail Automotive Alstom‐Bombardier, Stellantis, Volkswagen, Renault, Aerospace, Defense, Aerospace Siemens… Volvo, ZF, BMW, Ford, Continental, GM… Security & Naval Airbus, Airbus DS, Ro
Slide 9: Our Markets: Automotive and Rail
OUR MARKETS (IN % OF REVENUE) AUTOMOTIVE Decarbonisation of the sector is accelerated: Vehicule electrification (driving chains/electrical architecture/electronics, tests, etc.); 17.3% Design & implementation of Gigafactories producing batteries; Large investments in the hydrogen sector. D
Slide 10: Our Markets: Aeronautics, Space, Defense, Security, Naval
OUR MARKETS (IN % OF REVENUE) AERONAUTICS/ SPACE CIVIL AERONAUTICS: Projects associated with Data, Digital PLM, productivity improvment & TCO; 12.8% Design & implementation of the hydrogen‐powered aircraft (tanks, distribution systems, power fuel cells, etc.). SPACE: Development of new launche
Slide 11: Our Markets: Energy and Life Sciences
OUR MARKETS (IN % OF REVENUE) ENERGY Massive investments in: 9.3% ‐ The nuclear sector (EPR, lifespan extension of existing reactors, security of already‐existing plants, export markets); ‐ Gas infrastructures (liquefaction, transport, storing); ‐ Renewable energies. LIFE SCIENCES Development of
Slide 12: Our Markets: Bank, Retail, Services, Public Sector
OUR MARKETS (IN % OF REVENUE) BANK/ FINANCE/ INSURANCE Investments in infrastructures & networks, Cloud, Cyber Security; 10.9% Openbanking development acceleration (UX, mobile banks, etc.); Internal projects linked to process automation, regulation evolution and fraud prevention. RETAIL/ SERVI
Slide 13: Our Market and Its Competitive Environment
OUR MARKET AND ITS COMPETITIVE ENVIRONMENT ALTEN is facing 4 new competitors in Engineering: The largest IT companies: CAP‐Altran; Accenture‐Umlaut; etc. Interim staffing companies: Adecco‐Akka; Randstad‐Ausy, etc. Indian companies: Infosys, Wipro, TCS, etc. Private Equity funds with an inte
Slide 14: Alten Pursues Its Expansion Through Acquisitions
CONTINUED GROWTH STRATEGY THROUGH ACQUISITIONS ALTEN HAS COMPLETED 4 ACQUISITIONS IN 2022 : Spain: one company specialised in Cloud and digital transformation (annual revenue: €12 M, 180 consultants) India/US/Canada : one company specialised in product engineering (annual revenue: €12 M, 480 consult
Slide 15: Shareholders Base on September 15th 2022
SHAREHOLDERS BASE ON SEPTEMBER 15TH 2022 E URONEXT PARIS C OMPARTIMENT A FR 0000071946 A l te n (SRD) Public Mutuel fund 82.60% 1.24% % in shares • CAPITALIZATION: €4 213 M • NUMBER OF SHARES: 34 424 276 Fo u n d e r 14.81% Tre a s u r y sto c k 1.35% % OF VOTING RIGHTS Founder 25.73% FCP Alten 1.07
Slide 16: First Half Results 2022
2022 F IRST HALF RESULTS September 23rd 2022 l ALTEN - 2022 First Half results
Slide 17: Ongoing International Growth
ONGOING INTERNATIONAL GROWTH 1,825.9 43,650 engineers 1,395.2 1,292.3 33,800 engineers 1,240.4 Revenue in €M 1,099.9 32,550 engineers 31,440 engineers 983.7 29,600 engineers 67.2% 870.5 24,700 engineers INT 764.2 21,400 engineers 55.8% 63.8% 18,000 engineers 60.4% 54.2% FR 53.3% 51.4% 48.2% 45.8% 44
Slide 18: Growth in Business - Group
GROWTH IN BUSINESS ‐ GROUP Change/l-f-l €M H1 2021 revenue H1 2022 revenue H1 2021 Revenue Revenue on a l-f-l basis 1,395.2 1,671.3 19.8% Change in scope 126.4 9.1% FX impact 28.2 2.0% Consolidated revenue 1,395.2 1,825.9 30.9% A very sustained organic growth: Identical to H2 2021; Accounting for 2/
Slide 19: Growth in Business - France
GROWTH IN BUSINESS ‐ FRANCE Change/l-f-l €M H1 2021 revenue H1 2022 revenue H1 2021 Revenue Revenue on a l-f-l basis 505.4 578.7 14.5% Change in scope 19.7 3.9% Consolidated revenue 505.4 598.4 18.4% 18,4% Although slightly slowed down because of offshore development, organic growth is satisfying. 1
Slide 20: Growth in Business - International
GROWTH IN BUSINESS ‐ INTERNATIONAL Change/l-f-l €M H1 2021 Revenue H1 2022 Revenue H1 2021 Revenue Revenue on a l-f-l basis 889.8 1,092.5 22.8 % Change in scope 106.8 12.0% FX impact 28.2 3.2% International - TOTAL 889.8 1,227.6 38.0% A very strong organic development: In almost all geographical are
Slide 21: Breakdown of Turnover per Geographical Area as at June 30th 2022
BREAKDOWN OF TURNOVER PER GEOGRAPHICAL AREA AS AT JUNE 30TH 2022 YTD Change Change in Organic, excl. COUNTRY 2021 % 2022 % Published scope Forex Forex effect FRANCE 505.4 36.2% 598.4 32.8% 18.4% 3.9% 0.0% 14.5% IBERIC 126.8 9.1% 159.1 8.7% 25.5% 2.0% 0.0% 23.5% GERMANY 119.3 8.5% 156.3 8.6% 31.1% 7.
Slide 22: Condensed Income Statement
CONDENSED INCOME STATEMENT €M H1 2021 H1 2022 Var % Revenue 1,395.2 1,825.9 + 30.9% Operating Profit on Activity 137.1 208.6 + 52.1% As % of Revenue 9.8% 11.4% Share‐based payments ‐7.5 ‐15.4 Non‐recurring profit ‐5.4 ‐6.2 Operating profit 124.2 186.9 + 50.5% As % of Revenue 8.9% 10.2% Financial Inc
Slide 23: Financial Income Analysis
FINANCIAL INCOME ANALYSIS H1 2021 H1 2022 Cost of net financial debt ‐0.3 0.0 Interests on leasing contracts (IFRS16) ‐1.1 ‐1.4 Cost of financial debt and lease ‐1.4 ‐1.4 Forex result 0.6 2.2 Other net financial income ‐0.4 ‐0.4 FINANCIAL INCOME ‐1.2 0.4 23 September 23rd 2022 l ALTEN - 2022 First H
Slide 24: Condensed Income Statement by Region
CONDENSED INCOME STATEMENT BY REGION H1 2021 H1 2021 H1 2021 H1 2022 H1 2022 H1 2022 In €M France International Group France International Group Revenue 505.4 889.9 1,395.2 598.4 1 227.6 1,825.9 Operating Profit on Activity 34.8 102.4 137.1 46.7 161.9 208.6 As % of Revenue 6.9% 11.5% 9.8% 7.8% 13.2%
Slide 25: A Very Healthy Balance Sheet
A VERY HEALTHY BALANCE SHEET (IN €M) December 2021 ASSETS June 2022 EQUITY & LIABILITIES December 2021 June 2022 NON‐CURRENT ASSETS: NON‐CURRENT ASSETS: 1 179.9 1 311.2 SHAREHOLDER’S EQUITY: SHAREHOLDER’S EQUITY: o/w goodwill: 888.7 o/w goodwill: 1 006.3 1 421.1 1 539.7 Incl. Right of use: 172.2 Inc
Slide 26: IFRS16 Financial Impacts
IFRS16 FINANCIAL IMPACTS BALANCE INCOME FINANCING SHEET (€M) STATEMENT (€M) STATEMENT (€M) ASSETS Rights of use 176.9 OPA 1.6 Cash flow 31.2 Depreciation of rights of use & Tangible assets ‐0.1 Financial income ‐1.3 financial costs Deferred tax 0.1 WCR 0.7 Financial result ‐0.1 176.9 LIA
Slide 27: Change in Net Cash Position
CHANGE IN NET CASH POSITION (€M) F REE CASH FLOW : 1.1 ‐46.4 245.0 245.0 ‐154.6 Incl. ‐0.7 IFRS16 ‐11.0 Incl. 31.2 IFRS16 ‐31.9 ‐116.0 219.8 62.4 ‐44.1 1.6 62.4 Net cash Cash flow from Flow from Financial Other financing Net cash Tax paid Change in WCR Capex Dividends 31/12/2021 operating activities
Slide 28: Free Cash Flow Analysis
FREE CASH FLOW ANALYSIS 6 months Rolling 12 months H1 2022 2021 S1 2022 H1 2021 12 months 12 months OPERATIONAL CASH FLOW 141.6 213.8 329.9 402.1 AS % OF REVENUE 10.1% 11.7% 11.3% 12.0% DEPRECIATION OF RIGHTS OF USE AND 29.4 31.2 59.1 60.9 FINANCIAL COSTS CASH FLOW (IFRS16) 171.0 245.0 389.0 463.0 T
Slide 29: Free Cash Flow Analysis
FREE CASH FLOW ANALYSIS The operational cash flow increases by 51% as compared to H1 2021, in line with OPA increase (+52%). Paid tax recovers its standard level. Because of a strong organic growth and seasonal effects in the first half, WCR increases by €154.6 M. Accounts receivables (witho
Slide 30: Summary
SUMMARY ALTEN has largely exceeded its pre‐crisis activity level thanks to a very sustained organic growth since Q2 2021. Taking acquisitions into account, business has grown by over 30% in 2 years. The operational margin reaches 11.4% thanks to: An improved gross margin: high activity rate, enhan
Slide 31: Growth Strategy
GROWTH STRATEGY September 23rd 2022 l ALTEN - 2022 First Half results
Slide 32: Strategy & Development
STRATEGY & DEVELOPMENT T h e e co l o g i ca l t ra n s i t i o n a n d t h e e n e rg y c r i s i s , t h e d i g i ta l i s at i o n o f B 2 B & B 2 C p ro c e s s e s , t h e e vo l u t i o n o f t h e h e a l t h e nv i ro n m e nt , e tc . , p ro v i d e h u g e te c h n o l o g i ca l i nve
Slide 33: Conclusion
CONCLUSION A LT E N , a s t h e o n l y i n d e p e n d e nt a n d i nte r n at i o n a l p l aye r, p r i v i l e ge d p a r t n e r o f m a j o r G ro u p s , o ffe rs a l l t h e a s s et s to f u r t h e r d e ve l o p wo r l d w i d e : ‐ A c r i t i ca l s i ze a n d a n i nte r n at i o n a
Slide 34: Appendices
APPENDICES September 23rd 2022 l ALTEN - 2022 First Half results
Slide 35: Balance Sheet - Assets
BALANCE SHEET – ASSETS (IN THOUSANDS OF EUROS) ITEM June 2022 Dec. 2021 Goodwills 1 006 333 888 723 Right of use 176 921 172 233 Intangible assets 7 144 7 594 Tangible assets 42 128 37 813 Investments in associates 1 200 1 180 Non‐current financial assets 62 798 57 477 Deferred tax assets 14 635 14
Slide 36: Balance Sheet - Liabilities
BALANCE SHEET – LIABILITIES (IN THOUSANDS OF EUROS) ITEM June 2022 Dec.2021 Capital 36 144 36 098 Premiums 60 250 60 250 Consolidated reserves 1 304 641 1 117 241 Consolidated earnings 138 997 207 837 SHAREHOLDERS' EQUITY 1 540 032 1 421 427 MINORITY INTERESTS ‐344 ‐371 Employee benefits 16 094 18 8
Slide 37: Income Statement
INCOME STATEMENT (IN THOUSANDS OF EUROS) ITEM H1 2022 H1 2021 NET REVENUE 1 825 929 1 395 225 Purchase consumed -184 091 -131 908 Payroll expenses -1 266 264 -990 561 External charges -124 141 -89 574 Taxes other than on income -6 559 -6 734 Depreciation and amortization -37 521 -35 961 Other operat
Slide 38: Cash Flow Statement
CASH FLOW STATEMENT (IN THOUSANDS OF EUROS) ITEM H1 2022 H1 2021 CASH FLOW 244 969 171 035 Consolidated net earnings 139 033 89 322 Earnings from associates -20 11 Depreciation, provisions and other calculated expenses 40 660 38 314 Share-based payments 15 433 7 526 Income tax expense 48 285 33 720
Slide 39: Evolution of Organic Growth 2022
EVOLUTION OF ORGANIC GROWTH 2022 As % Q1 Q2 H1 France 14.9% 14.2% 14,5% International 24.2% 21.5% 22,8% GROUP 20.7% 18.9% 19.8% Growth on constant business days 19.3% 19.1% 19.2% The seasonal effect on activity is non significant 39 September 23rd 2022 l ALTEN - 2022 First Half results
Slide 40: Breakdown of Turnover per Geographical Area as at June 30th 2022
BREAKDOWN OF TURNOVER PER GEOGRAPHICAL AREA AS AT JUNE 30TH 2022 Q1 2022 Q2 2022 H1 2022 Organic, excl. Forex Organic, excl. Forex Organic, excl. COUNTRY Published effect Published effect Published Forex effect FRANCE 18.9% 14.9% 17.9% 14.2% 18.4% 14.5% IBERIC 26.7% 26.7% 24.4% 20.5% 25.5% 23.5% GER
Slide 41: Q&A
Q&A September 23rd 2022 l ALTEN - 2022 First Half results
Slide 42: ALTEN First Half Results 2022 Contact
ALTEN First Half Results 2022 Contact comfi@alten.fr https://www.alten.com/fr/investisseurs/ T : +33 (0)1.46.08.71.79 40 av. André Morizet 92513 Boulogne‐Billancourt Cedex