Slide 1: 2013 Half-year results
2013 HALF-YEAR RESULTS Financial meeting Monday 2 September 2013 2013 Half-year results
Slide 2: The Speakers
THE SPEAKERS BRUSSELS 01 Jean-Philippe Roesch Chantal De Vrieze Christophe Vanmalleghem Managing Director Country Manager Benelux Group Services Managing Director Chief Executive Officer WWW.ECONOCOM.COM 2013 Half-year results
Slide 3: A European provider of B2B digital services
A EUROPEAN PROVIDER OF B2B DIGITAL SERVICES Finance 02 Technology Technology management & financing - Distribution – IT & Telecom Services A combination of technological and financial innovation WWW.ECONOCOM.COM 2013 Half-year results
Slide 4: International presence
INTERNATIONAL PRESENCE IN 18 COUNTRIES 3,700 employees 4.6 million technology assets managed 03 €1.54 billion revenue in 2012 WWW.ECONOCOM.COM Résultats semestriels 2013
Slide 5: Agenda
AGENDA ECONOCOM TODAY: A COMPANY WITH AMBITIONS IN THE BIRTH OF A MAJOR A GOOD DYNAMIC THE DIGITAL WORLD NEW SERVICE PROVIDER 04 2013 half-year results and Presentation of the Mutation Project for an alliance with financial position at end 2013 – 2017 strategic plan OSIATIS of June WWW.ECONOCOM.COM
Slide 6: Econocom today: a good dynamic
ECONOCOM TODAY: A GOOD DYNAMIC 2013 half-year results and financial position at end of June 2013 Half-year results
Slide 7: Increase in revenue
INCREASE IN REVENUE IFRS 792 737 06 CONSOLIDATED GROWTH A growth dynamic +7.5% resulting from our positioning ORGANIC GROWTH and strategic +3% investments 2012 2013 WWW.ECONOCOM.COM 2013 Half-year results
Slide 8: Sales performance by business area
SALES PERFORMANCE BY BUSINESS AREA IFRS All business lines 20% Services have grown 62% TECHNOLOGY organically MANAGEMENT & FINANCING Technology Mgmt 07 & Financing +1.4% DISTRIBUTION +17.7% (including 8% organic growth) SERVICES +20.3% (including 3% organic growth) 18% Distribution WWW.ECONOCOM.COM
Slide 9: Sales performance by geographical area
SALES PERFORMANCE BY GEOGRAPHICAL AREA IFRS 9% Northern & Eastern Europe FRANCE All geographical €375 M areas, except 20% 47% Northern & Eastern 08 Southern Europe France BENELUX Europe, contributed €188 M to growth SOUTHERN EUROPE €159 M NORTHERN & EASTERN EUROPE 24% Benelux €70 M WWW.ECONOCOM.COM
Slide 10: Proven success of enterprise solutions
PROVEN SUCCESS OF ENTERPRISE SOLUTIONS REVENUE IN € M CROSS-DISCIPLINARY SOLUTIONS An approach that sets us apart from the competition 128 9 52 % 70 64 A reflection 42 of the growing synergies between 27 business lines 2011 2012 H1 2013 WWW.ECONOCOM.COM 2013 Half-year results
Slide 11: A growing contribution from smart objects
A GROWING CONTRIBUTION FROM SMART OBJECTS REVENUE IN €M 75 % 10 122 88 96 Continuing 55 diversification of 23 the offering into high-potential 2011 2012 H1 2013 markets WWW.ECONOCOM.COM 2013 Half-year results
Slide 12: 6 targeted external growth transactions in 18 months
6 TARGETED EXTERNAL GROWTH TRANSACTIONS IN 18 MONTHS VIRTUALISATION SECURITY B2B APPLE DISTRIBUTION BELGIUM FRANCE FRANCE Successful integration 11 and the first major deals signed TELECOMS MANAGEMENT VIRTUALISATION ICT CONVERGENCE & SECURITY FRANCE SPAIN + MEXICO FRANCE WWW.ECONOCOM.COM 2013 Half-y
Slide 13: Consolidated income statement
CONSOLIDATED INCOME STATEMENT IFRS H1 2012 H1 2013 Revenue 736.9 792.3 Recurring operating profit(*) 26.0 23.4 A return to the normal seasonal variations of Recurring operating profit 25.0 22.4 results and strategic 12 Non-recurring operational expenses (3.7) (2.2) investments Operating profit 21.2
Slide 14: Consolidated balance sheet at 30 June 2013
CONSOLIDATED BALANCE SHEET AT 30 JUNE 2013 IFRS Assets 31/12/2012 30/06/2013 Liabilities 31/12/2012 30/06/2013 Pro forma Pro forma Goodwill 149 153 Shareholders’ equity1 156 146 Other non-current assets 132 128 Financial debts 93 91 13 Non-current assets 281 281 Other non-current liabilities 36 48 I
Slide 15: Consolidated statement of cash flows
CONSOLIDATED STATEMENT OF CASH FLOWS IFRS H1 2012 H1 2013 Cash flow 26.9 23.9 Change in working capital (68.7) (41.5) Income tax paid 5.1 (2.5) Net cash provided by operating activities (36.7) (20.2) 14 Net cash used in investing activities (3.5) (8.2) Net changes in financial debts (9.1) 36.5 Acqui
Slide 16: Consolidated net cash statement
CONSOLIDATED NET CASH STATEMENT* CONVERTIBLE BONDS (€80) M IFRS + CONTRACTS WITH RECOURSE (IFRS DEBT) 12/2010 06/2011 12/2011 06/2012 12/2012 06/2013 (€32) M 0 + OTHER DEBTS (8) M€ 15 -27 -31 + SHORT-TERM LINES (€30) M A healthy cash -59 - bank position GROSS CASH POSITION (€37 M) in spite of -83 +€
Slide 17: Financial guidance confirmed
FINANCIAL GUIDANCE CONFIRMED ORGANIC GROWTH + POSITIVE EFFECT RECURRING 16 OF ACQUISITIONS REVENUE OPERATING Another year PROFIT of investments and profitable growth WWW.ECONOCOM.COM 2013 Half-year results
Slide 18: A company with ambitions in the digital world
A COMPANY WITH AMBITIONS IN THE DIGITAL WORLD Presentation of the Mutation 2013-2017 strategic plan Half-year results 2013
Slide 19: The world is going digital, Econocom must mutate
THE WORLD IS GOING DIGITAL ECONOCOM MUST MUTATE Digital Digital is bought as a Service is central to business 18 Econocom must: Econocom must: Expand services Deploy new types of equipment Use its leasing expertise to sell “as a Service” Take an active interest in clients’ business Develop more inte
Slide 20: Econocom has everything it takes to achieve its ambition
ECONOCOM HAS EVERYTHING IT TAKES TO ACHIEVE ITS AMBITION Financial integration Technological integration 19 To be the European pioneer in integrating and financing digital solutions. WWW.ECONOCOM.COM Half-year results 2013
Slide 21: Ambitious growth guidance whilst preserving margins
AMBITIOUS GROWTH GUIDANCE WHILST PRESERVING MARGINS REVENUE RECURRING IFRS OPERATING PROFIT 3,000 150 x2 20 1,538 x2 74 2012 2017 2012 2017 WWW.ECONOCOM.COM Half-year results 2013
Slide 22: Growth drivers
5 GROWTH DRIVERS SMART SOLUTIONS ENTERPRISE SOLUTIONS ACQUISITIONS CROSS-FERTILISATION CLIENTS 640 1/3 x3 in 2017 550 ~20 acquisitions 21 x5 x4 DEVELOP A MULTI-ACTIVITY MODEL 122 128 in 6 countries Growth in revenue 2012 2017 2012 2017 WWW.ECONOCOM.COM Half-year results 2013
Slide 23: Constantly expanding our scope of expertise
CONSTANTLY EXPANDING OUR SCOPE OF EXPERTISE Business - Specific Exotic devices Smart Exotic 22 devices Digital devices Multi- media IT for Mobile business devices ICT devices Smart devices Smart Exotic devices WWW.ECONOCOM.COM Half-year results 2013
Slide 24: A growth strategy tailored to each country
A GROWTH STRATEGY TAILORED TO EACH COUNTRY Developing and driving change # 1 Multi-activity and growth # 2 23 Winning market shares # 3 Opening in new countries # 4 WWW.ECONOCOM.COM Half-year results 2013
Slide 25: Offer segmentation by client type
OFFER SEGMENTATION BY CLIENT TYPE “Niche innovation player” Key accounts 24 “Big enough to cope, Mighty Middle small enough to care” Multinationals “All-in-one-provider” Other WWW.ECONOCOM.COM Half-year results 2013
Slide 26: Developing an ecosystem
DEVELOPING AN ECOSYSTEM Identify and guide influencers and decision-makers Identify the potential Identify and address to generate combined added 25 their concerns value Be aware of the potential growth areas and address our clients’ needs Emergence of ideas Selecting development Replication WWW.ECO
Slide 27: Convergence of smart solutions and business challenges
CONVERGENCE OF SMART SOLUTIONS AND BUSINESS CHALLENGES Healthcare B2C Retail Industry Education Other Solutions 26 ICT effectiveness Transformation to Digital Business Agility Services Consulting Sourcing Design Finance and Integration asset engineering Managed Technology refresh services End of lif
Slide 28: Resuming a balanced business mix
RESUMING A BALANCED BUSINESS MIX 2012 2017 BUSINESS MIX €1.5 Bn BUSINESS MIX €3.0 Bn 19% Services 32% 27 50% Services Technology Mgmt & Financing 16% Distribution 65% Technology Mgmt & Financing 18% Distribution WWW.ECONOCOM.COM Half-year results 2013
Slide 29: The birth of a leading new service provider
THE BIRTH OF A LEADING NEW SERVICE PROVIDER Project for an alliance with OSIATIS Half-year results 2013
Slide 30: OSIATIS success story
OSIATIS 2012 SUCCESS STORY 4,581 €309 M revenue 7.3% R.O.P. 2010 Organic growth + Targeted acquisitions 2004 (including ESR and 3,140 1998 Interadapt in Brazil ) €244 M revenue A major player in 29 6.8% R.O.P. 1,372 infrastructure services & €120 M revenue specialists in related 826 5% R.O.P. Organi
Slide 31: A new leading service provider
A NEW LEADING SERVICE PROVIDER 20 countries Econocom + Osiatis the leading service company in France and Belgium 8,300 employees €2.0 Bn revenue 30 of which €650 M from services €100 M Recurring operation profit before synergies WWW.ECONOCOM.COM 2012 unaudited proforma data, before synergies Half-ye
Slide 32: An infrastructures and application-based offering
AN INFRASTRUCTURES AND APPLICATION-BASED OFFERING 31 Infrastructure Infrastructure Infrastructure Infrastructure Application Management Professional Maintenance Engineering Services 6,860 employees in IT Services including 750 in the Applications division WWW.ECONOCOM.COM Half-year results 2013
Slide 33: The new IT outsourcing leader in France
THE NEW IT OUTSOURCING LEADER IN FRANCE Infrastructures User environment Data centre and hosting 1 IBM 1 IBM 1 IBM 2 Orange Business Services Econocom + Osiatis 2 Orange Business Services 3 HP 2 HP 3 HP 4 ATOS 3 Osiatis 4 ATOS 32 Econocom + Osiatis 4 Neurones 5 BT Global Services 5 Steria 5 Steria 6
Slide 34: The first major step of the strategic plan
THE FIRST MAJOR STEP OF THE STRATEGIC PLAN REVENUE SERVICE REVENUE RECURRING OPERATING PROFIT 3,000 960 Econocom 33 + Osiatis Econocom 150 €2,000 M + Osiatis Econocom 1,538 €650 M + Osiatis €100 M 74 before synergies 285 In € millions 2012 2017 2012 2017 2012 2017 WWW.ECONOCOM.COM Half-year results
Slide 35: Terms of the transaction
TERMS OF THE TRANSACTION 1 OSIATIS share Step 1: Acquisition of the controlling interest (51.9% of share capital + common 34 share purchase warrant) 1 ECONOCOM share Mixed offer + Step 2: 2-phase €4 Public bid for free-float transaction shares WWW.ECONOCOM.COM Half-year results 2013
Slide 36: A value-creating transaction
A VALUE-CREATING TRANSACTION Integration accretive Mixed financing - 35 as of 2014 + cash & shares €20 M worth of synergies Equity increased and debt Transaction under control Financial accretive in capacity the first year maintained for new investments WWW.ECONOCOM.COM Half-year results 2013
Slide 37: Shareholder information
SHAREHOLDER INFORMATION OWNERSHIP STRUCTURE OWNERSHIP STRUCTURE AT 30 JUNE 2013 AFTER ACQUISITION OF THE CONTROLLING INTEREST 49% 41% companies controlled companies controlled by by 36 Jean-Louis Bouchard Jean-Louis Bouchard 6% 47% 50% companies controlled by Public Public Walter Butler 4% 3% Treasu
Slide 38: Provisional timeline
PROVISIONAL TIMELINE Committee set up Operational, commercial and economic to prepare integration integration of Econocom and Osiatis’ Service entities 37 2013 19 April 1 July September Q4 2013 Exclusive negotiations Agreements signed Transaction completed Public bid for Osiatis’ began remaining sha
Slide 39: Conclusion
CONCLUSION 2013 Half-year results
Slide 40: Points to remember from this presentation
5 POINTS TO REMEMBER FROM THIS PRESENTATION Strong half-year results and annual guidance confirmed An ambitious strategic plan and a strong growth dynamic driven by the digital boom 39 A determining transaction that will create value A strengthened position in the digital service industry Investment
Slide 41: Questions & Answers
QUESTIONS & ANSWERS 40 WWW.ECONOCOM.COM 2013 Half-year results
Slide 42: Stock market information: overview
STOCK MARKET INFORMATION: OVERVIEW Closing price as of 5.80 € 30/08/2013 Number of shares 96,691,588 Market capitalisation €561 M Productivity (€0.10 ) 1.7% 41 Daily trading volume 62,791 shares (average 2013) ISIN BE0974266950 MNEMO ECONB Market NYSE EURONEXT Compartment B Index BEL MID WWW.ECONOCO
Slide 43: Financial communication
FINANCIAL COMMUNICATION Econocom Group ACTUS Finance & Communication Investor Galliane Touze Jérôme Fabreguettes-Leib relations galliane.touze@econocom.com econocom@actus.fr 42 PR Florence Lièvre Nicolas Bouchez contacts florence.lievre@econocom.com nbouchez@actus.fr Next press release: 3rd quarter