Slide 1: Analysts and investors Presentation
Analysts and investors Presentation 26 July 2023
Slide 2: Welcome
Welcome
Slide 3: Agenda
01 Introduction H1 2023 results and 02 financial situation as of 30 June 2023 AGENDA 03 ESG performance 04 Development of new activities 05 Outlook
Slide 4: The speakers
The speakers Jean-Louis Patrick Angel BOUCHARD VAN DEN BERG BENGUIGUI Chairman and CEO Managing Director Managing Director
Slide 5: Introduction
Introduction Jean-Louis Bouchard Chairman and CEO
Slide 6: H1 2023 results and financial situation as of June 2023
H1 2023 results and financial situation as of 30 June 2023 Patrick Van Den Berg Managing Director
Slide 7: Growth in consolidated revenue over all businesses
Growth in consolidated revenue over all businesses Operating Margin hit by various cyclical effects Revenue(1) Operating Margin(1) Total growth(1) at 3.9%, driven by €1,337 M the 3 business €1,287 M €60.0 M lines and -26.3% contribution of +3.9% 2022 €44.2 M acquisitions Profitability rate at 3.3% d
Slide 8: Products & Solutions: revenue
Products & Solutions Strong contribution of acquisitions to turnover growth Revenue(1) €585 M Total growth(1) €554 M at 5.5%, integrating the positive impact of the 2022 acquisitions of SEMIC in Spain and LYDIS +5.5% in the Netherlands Limited organic(2) decrease (-2.8%) after a strong H1 2022 growt
Slide 9: Products & Solutions: operating margin
Products & Solutions Operating Margin impacted by economic context Operating Margin(1) Operating Margin down at €15.9 M: • Increase in digital asset prices not yet fully € 18.1 M reflected • Wage increases needed in a tense €15.9 M -12.1% environment • Factoring costs up 0.9 M€ due to increase in in
Slide 10: TMF: revenue
TMF Continuing growth revenue Revenue(1) Total growth(1) at 2.8%, benefiting from a good dynamic in 498 m€ many countries, such as Germany or Italy and the contribution of Econocom Factory (SOFI €485 M +2.8% Group) Organic growth(2) showing a smaller increase (+0.9%) further to a strong seasonality
Slide 11: TMF: operating margin
TMF H1 2022 base effect on Operating Margin Operating Margin(1) €21.6 M Operating Margin down at €17.3 M 17,3 m€ -19.9% Unfavorable mix effect with less high contribution margin deals than in Q2 2022 Profitability rate at 3.5% down 1.0 bps H1 2022 H1 2023 (1) For continuing operations on a constant
Slide 12: Services: revenue
Services Recovery in business growth Revenue(1) 254 m€ Total(1) and organic(2) growth at 2.6%, taking €248 M advantage of the good trajectory of the activity in +2.6% particular in Belux and Spain after a decline in 2022 Continued sales momentum in S2 with the launch of new contracts H1 2022 H1 2023
Slide 13: Services: operating margin
Services Profitability affected by non-recurring items Operating Margin(1) Operating Margin down at €11.0 M: • Impact of inflation on costs • New contracts in ramp-up process €20.3 M Profitability rate at 4.3% down 3.9 bps -45.8% 11,0 m€ Expected improvement of the Operating Margin in H2 thanks to a
Slide 14: H1 2023 simplified income statement
H1 2023 simplified income statement (in € M) 06.22(1) 06.23 Revenue 1,287 1,337 +3.9% +3,9% Solid growth driven by acquisitions and good performance in all three businesses Cyclical effects on operating margin due Operating margin 60.0 44.2 -26,3% to inflation, wage pressures, TMF seasonality and fa
Slide 15: Slight increase in Net Financial Debt
Slight increase in Net Financial Debt in € M -272 -321 • NFD on 30 June 2023 up €49 M, mainly due to M&A Free cash-flow : +11 disbursements and a return to shareholders for €55 M in total +64 -53 • Normalized free cash flow at -27 €64 M excluding non- -3 -25 recurrence at end H1 2023 of cyclical red
Slide 16: Limited operating debt
Limited operating debt • Operating debt corresponds to NFD(1) adjusted for discounted lease payments on contracts carried on balance sheet as not refinanced or refinanced with recourse. 30.06.2022 in € M 30.06.2023 in € M 10 -282 -272 -36 -321 -285 • Stability of discounted rental income • Increase
Slide 17: Breakdown of Net Financial Debt
Breakdown of Net Financial Debt 133 -47 -115 -209 -321 • Repayment of OCEANE in March 2023 for €150 M -83 refinanced with more flexible bank financing • 2022 Schuldschein of €200 M (maturity up to 7 years and total interest rate of 2.1%) Cash at Short term TMF Recourse Bonds Other corporate NFD(1) 3
Slide 18: Continuous improvement of cash management
Continuous improvement of cash management Increase in cash Optimizing cash Rolling out best generation management practices • Optimizing pricings and • Cash-pooling upgrade • Integration of these cash passing on cost increases • Improved cash forecasts projects into • Greater control over performanc
Slide 19: ESG performance
ESG performance Angel Benguigui Managing Director
Slide 20: Significant improvement in ESG indicators
Significant improvement in ESG indicators +4 pts. +3 pts. +99 places 2022 Ecovadis rating 2022 gender equality index in the ranking of at 70/100 vs. 66/100 in in France is 86/100 vs companies committed to 2021 83/100 in 2021 diversity(1) Econocom ranked 19 out of 248 companies in the HighTech sector
Slide 21: First bank credit lines indexed on social and environmental criteria
First bank credit lines indexed on social and environmental criteria • €50 M credit lines signed with the bank LCL and Crédit Agricole Ile de France • Interest rate indexed on environmental and social criteria with three aims for 2026 Aims 1 2 3 -4.2 % per year SBTI +2 pts per year Lower carbon Vali
Slide 22: Development of new activities
Development of new activities Angel Benguigui Managing Director
Slide 23: Econocom makes audiovisual its fourth independent business line
Econocom makes audiovisual its fourth Exaprobe independent business line Smart office technology, Cybersecurity & infrastructures networking • Business activity driven by new uses, with an acceleration since the Covid-19 crisis BIS|Econocom flex offices videoconferencing Digitalisation of informatio
Slide 24: Refurbishment business: pursuing the integration and development plan of Econocom Factory
Refurbishment business: pursuing the integration and development plan of Econocom Factory • Defining processes to develop synergies • A large proportion of TMF fleets that reached the end of their contract are channelled to Econocom Factory rather than third-party brokers • Market-addressing plan vi
Slide 25: Outlook
Outlook Angel Benguigui Managing Director
Slide 26: Reminder of 2023 guidance
Reminder Revenue increase of 2023 5% (1) of guidance Improvement of net consolidated result (1) For continuing operations on a constant basis Econocom - 2023 half year results 26
Slide 27: Strategic plan
Strategic plan 5 5 5 Years € B in Businesses revenue Presentation on 16 November 2023 at the Investor Day Econocom - 2023 half year results 27
Slide 28: Appendices
Appendices CE COMOCOTT)
Slide 29: Simplified income statement
Simplified income statement (In € M) 06.2022(1) 06.2023 Revenue 1,286.7 1,337.2 Operating margin 60.0 44.2 Depreciation of acquisition-related intangible assets -1.0 -1.2 Other operating income and expenses -10.2 -4.7 Operating profit 48.8 38.3 Other financial income 0.3 0.8 Other financial expenses
Slide 30: Simplified balance sheet
Simplified balance sheet ASSETS (in € M) 31.12.2022 30.06.2023 EQUITY & LIABILITIES (in € M) 31.12.2022 30.06.2023 Goodwill 554 556 Equity 457 452 Other long-term assets 212 210 Net Financial Debt 144 321 Assets related to leasing activities 448 453 Commitments on residual value 103 107 Residual int
Slide 31: NFD bridge
NFD bridge -272 -321 150 100 Free Cash Flow = €11 M 50 -67 122 -13 -143 0 -22 -3 -19 -50 -32 -21 -100 -27 -3 -25 -150 -5 NFD(1) Operating Non- Payments TMF WCR Financial CAPEX M&A(2) Share Others NFD(1) Dividend -200 30.06.2022 cashflow Operating lease Investment Expenses & buybacks 30.06.2023 items
Slide 32: 2024-2028 strategic plan in progress
2024-2028 strategic plan in progress Work in progress Ambition and challenges work staggered until 2023 Q3 • Reach €5 B revenue, with a first • Support from a tier 1 strategic stage of €4 B in 2026 consultancy • Prepare the future of Econocom • Involvement of Econocom's top 50 Group and its business
Slide 33: Stock Exchange
Stock Exchange Equity tab - % of ownership and number of shares (1) Market cap Number of shares €495 M • Total shares : 179.0 M • Treasury shares : 0.9 M • Floating shares: 178.1 M 0.50% Treasury shares Share price 0.9 M as of 24 July 2023 49.79% • €2.78 Holding companies held by Mr. Bouchard Listin
Slide 34: Contacts
Contacts Investor and shareholder Financial Press relations communication relations benjamin.pehau@econocom.com info@capvalue.fr econocom@the-arcane.com 34 Econocom – Résultats annuels 2022