Assystem Sa · EURONEXT:ASY
Assystem Sa — FY2003 Earnings Presentation
33 slides from Assystem Sa's earnings presentation, Mar 31, 2004
Slide 1: Presentation of the activity in 2003
Innovation Engineering and Consulting Presentation of the activity in 2003 March 31, 2004 1
Slide 2: Contents
Contents Key aspects Financial results The synergies from the merger Early 2004 trends Acquisitions and sales Strategy and outlook 2
Slide 3: Key Aspects
Key Aspects An Engineering and Consulting Group in Innovation resulting from the merger of Assystem and Brime Technologies Pro forma consolidated turnover for 2003: €436.3 million €79.2 million in cash as at December 31, 2003 16% of the turnover generated abroad (11 countries) Over 6,000 consultants
Slide 4: Key Aspects: Key clients
Key Aspects Key clients > The top 10 clients represent 40% of the Group’s pro forma consolidated turnover PSA 9% Airbus 7% Renault 5% General Electric 4% Cogema & subs. 4% DCN 3% EADS 2% EDF 2% Alcatel 2% Thalès 2% 4
Slide 5: Key Aspects: Key sectors
Key Aspects Key sectors Automotive 24% Aerospace 19% Capital goods industry 10% Banking 7% Energy & Environment 5% Nuclear 5% Telecommunications 5% Railways and transportation 5% Defense 4% Insurance 4% Pharmaceuticals 4% Heavy process industry 3% Others* 5% 5 * Including medical, media, foods
Slide 6: Contents
Contents Key aspects Financial results The synergies from the merger Early 2004 trends Acquisitions and sales Strategy and outlook 6
Slide 7: Financial Results
Financial Results In 2003 : - Pro forma turnover up 20% - Organic growth was stable 7
Slide 8: Pro forma consolidated income statement
Financial Results Operating profit up 7.6% AssystemBrime Group’s pro forma consolidated income statement In million euros Proforma for 2002 Proforma for 2003 Turnover 362.9 436.3 Operating profit 31.1 33.5 % turnover 8.6% 7.7% Extraordinary profit 0.8 - 7.3 Group’s share of net profit 20.8 15.6 befo
Slide 9: Brime Technologies consolidated income statement
Financial Results The weak results of the IT division had a 1-point impact on the operating profit of Brime Technologies Brime Technologies (excluding Assystem) consolidated income statement In million euros 2002 actual 2003 actual Turnover 148.3 163.1 Operating profit 11.6 9.9 % turnover 7.8% 6.1%
Slide 10: Assystem Group simplified consolidated income statement
Financial Results The 2003 acquisitions were successfully consolidated The operating profit for H2 2003 was over expectations Assystem Group’s simplified consolidated income statement In million euros 2002 actual 2003 actual Turnover 214.6 273.2 Operating profit 19.2 22.9 % turnover 8.9% 8.4% Extrao
Slide 11: Accretive effect of the alliance
Financial Results The alliance between Assystem and Brime Technologies had a accretive effect In euros Brime Assystem AssystemBrime pro forma 2003 operating profit per share* 1.61 1.62 1.75 Accretive effect primarily tied to the public offer of exchange •Restated average number of shares held on Mar
Slide 12: Goodwill amortization and depreciation in 2003
Financial Results Goodwill amortization and depreciation in 2003 > Acceleration of the goodwill amortization > Effect of the Group’s strategic re-focusing BRIME ASSYSTEM Pro format ASSYSTEMBRIME restatements Proforma Depreciation charge for 2002 3.9 1.9 5.8 Change in perimeter 0.6 1.9 2.5 Amortizati
Slide 13: Consolidated balance sheet
Financial Results Consolidated balance sheet: a very healthy financial structure 13
Slide 14: Commitments as at December 31, 2003
Financial Results Commitments as at December 31, 2003 > Earnouts complements Estimated at 10 million euros over 2004/2006 Due if the companies generate a cumulative net profit of 14 million euros > Discount/factoring Impact on cash limited to 0.7 million euros as at December 31, 2003 > Retirem
Slide 15: Stock ownership after the merger
Financial Results Stock ownership after the merger 15
Slide 16: Contents
Contents Key aspects Financial results The synergies from the merger Early 2004 trends Acquisitions and sales Strategy and outlook 16
Slide 17: The Synergies from the Merger
The Synergies from the Merger Speed, a key factor of success for our alliance > An organization based on core businesses > A new offer, a new division > Scale economies An effective approach based on the success of operations carried out in 2003 (Thalès SI, SYTECH, CETI, etc.) 17
Slide 18: A clear organization
The Synergies from the Merger A clear organization > 5 specialized Business Units 18
Slide 19: The Technologies & Systems Business Unit
The Synergies from the Merger The ‘Technologies & Systems’ Business Unit : A Consulting & Engineering Systems offer focused on real time and embedded software and electronics equipments > Merger of 8 companies > 720 consultants (75% engineers and executive staff) > Turnover: €55 million > 70% Consul
Slide 20: Greater synergies than initially expected
The Synergies from the Merger Greater synergies than initially expected > Purchasing optimization Æ Gains: €2 million > Structure optimization Æ Gains: €1 million OBJECTIVE: €3 million on a full year basis €1.5 million for 2004 20
Slide 21: Contents
Contents Key aspects Financial results The synergies from the merger Early 2004 trends Acquisitions and sales Strategy and outlook 21
Slide 22: Early 2004 Trends
Early 2004 Trends January 2004 was well and better than January 2003 > January turnover gained over 15% on the 2003 figure > Organic growth stands at approximately 5% (despite IT division organic decrease) > In February the trend was likewise good 22
Slide 23: Highlights for the beginning of the year
Early 2004 Trends Highlights for the beginning of the year > At the beginning of the year, visibility was already good overall > The engineering offer book expanded: a few significant projects (>€1 million) were booked > The former Brime and Assystem Spanish and Italian teams strengthened their coop
Slide 24: Contents
Contents Key aspects Financial results The synergies from the merger Early 2004 trends Acquisitions and sales Strategy and outlook 24
Slide 25: Sale of the IT division
Acquisitions and Sales The sale of the IT division from Brime Technologies to its management, is under completion > Technical support activity Turnover ≈ €40.7 million 80% of the customer base belongs to the tertiary sector (Banking, Insurance, Retail, etc.) Quasi-exclusive presence in France
Slide 26: Acquisition of an outsourced R&D company in Hamburg
Acquisitions and Sales The acquisition of an outsourced R&D company in Hamburg is under completion > Outsourced R&D for aerospace Turnover: €12 million Operating profit: Above 10% Headcount: 150 out of which 70% engineers > A response to Airbus’s search for European service providers able to o
Slide 27: Other sales and acquisitions
Acquisitions and Sales Other sales and acquisitions > Sale of two non strategic Canadian entities: Sinc Developpement and Logisil Activity: Information systems for the tertiary sector 2003 turnover: €4.5 million Operating profit: approximately 3% Headcount: 35 > Acquisition of a business in
Slide 28: Contents
Contents Key aspects Financial results The synergies from the merger Early 2004 trends Acquisitions and sales Strategy and outlook 28
Slide 29: Key aspects of our strategy
Strategy and Outlook Key aspects of our strategy > Position ourselves on the client’s strategic investments: new products, new technologies > Become a first-rank partner for our major clients in our core business, thanks to our size and our ability to accompany our clientele internationally > Improv
Slide 30: Strategic orientations
Strategy and Outlook Strategic orientations > Strengthen our presence in embedded software and on- board electronics > Ensure a geographic deployment that is consistent with our clients’ expectations > Ensure deployment towards related activities > Master ever-more complex projects, that can generat
Slide 31: Strategic levers
Strategy and Outlook Strategic levers > Internal synergy to stimulate organic growth > Selective external growth to strengthen the offer and deploy it internationally > New steering indicators for the Group: cash flow per employee, ROI from acquisitions, risk management 31
Slide 32: Priorities for 2004
Strategy and Outlook Priorities for 2004 > Harness the synergies from our merger (greater than expected) > Improve our organic growth in excess of 2003 > Improve our results > Accelerate the international deployment Target: 1 billion euros turnover within 3 years 32
Slide 33: Innovation Engineering and Consulting
Innovation Engineering and Consulting March 31, 2004 33