Sopra Steria Group SA · EURONEXT:SOP
Sopra Steria Group SA — Shareholder Meeting (June 2022)
48 slides from Sopra Steria Group SA's shareholder meeting presentation, Jun 1, 2022
Slide 1: 2022 Combined General Meeting of Shareholders
2022 Combined General Meeting of Shareholders PARIS, 1ST JUNE 2022 AT 2:30PM * Le monde est tel que nous le façonnons. *
Slide 2: Disclaimer
Disclaimer This document contains forward-looking information subject to certain risks and uncertainties that may affect the Group’s future growth and financial results. Readers are reminded that licence agreements, which often represent investments for clients, are signed in greater numbers in the
Slide 3: Meeting schedule
Meeting schedule 01 Agenda for the General Meeting 02 Board of Directors’ reports – Presentation of the 2021 accounts and operating position 03 Statutory Auditors’ reports 04 Information about proposed resolutions 05 Discussion 06 Vote 07 Closing 3 2022 Combined General Meeting – 1 June 2022
Slide 4: Agenda (1/6)
Agenda (1/6) Notice published in the “Bulletin des Annonces Légales Obligatoires” on 13 May 2022 Requiring the approval of the Ordinary General Meeting 1. Approval of the parent company financial statements for financial year 2021; 2. Approval of the consolidated financial statements for financial y
Slide 5: Agenda (2/6)
Agenda (2/6) Notice published in the “Bulletin des Annonces Légales Obligatoires” on 13 May 2022 Requiring the approval of the Ordinary General Meeting 8. Approval of the compensation policy for the Chief Executive Officer; 9. Approval of the compensation policy for Directors for their service; 10.
Slide 6: Agenda (3/6)
Agenda (3/6) Notice published in the “Bulletin des Annonces Légales Obligatoires” on 13 May 2022 Requiring the approval of the Ordinary General Meeting 15. Appointment of Yves de Talhouët as a Director for a term of office of three years; 16. Renewal of the appointment of ACA Nexia as Principal Stat
Slide 7: Agenda (4/6)
Agenda (4/6) Notice published in the “Bulletin des Annonces Légales Obligatoires” on 13 May 2022 Requiring the approval of the Extraordinary General Meeting 20. Delegation of authority to be granted to the Board of Directors to issue ordinary shares and/or other securities giving access to the Compa
Slide 8: Agenda (5/6)
Agenda (5/6) Notice published in the “Bulletin des Annonces Légales Obligatoires” on 13 May 2022 Requiring the approval of the Extraordinary General Meeting 23. Delegation of authority to be granted to the Board of Directors to increase, with or without pre- emptive rights for existing shareholders,
Slide 9: Agenda (6/6)
Agenda (6/6) Notice published in the “Bulletin des Annonces Légales Obligatoires” on 13 May 2022 Requiring the approval of the Extraordinary General Meeting 27. Authorisation to be granted to the Board of Directors to allot existing or new free shares to employees and/or company officers of the Comp
Slide 10: Meeting schedule
Meeting schedule 01 Agenda for the General Meeting 02 Board of Directors’ reports – Presentation of the 2021 accounts and operating position 03 Statutory Auditors’ reports 04 Information about proposed resolutions 05 Discussion 06 Vote 07 Closing 10 2022 Combined General Meeting – 1 June 2022
Slide 11: 2021 Annual Results
2021 Annual Results 11 2022 Combined General Meeting – 1 June 2022
Slide 12: Sopra Steria, a European leader in digital transformation
Sopra Steria, a European leader in digital transformation Breakdown of revenue – year ended 31 December 2021 Top 5 European digital services companies Top 12 operating in Europe 2021 revenue >47,000 Operations in End-to-end approach of €4.7bn employees 30 countries End-to-end 2% 15% 10% 3% 24% 5% 31
Slide 13: Strategy underpinned by clearly defined levers
Strategy underpinned by clearly defined levers Focus strategy Offering strategy Production model 100 European key accounts End-to-end approach Industrial approach 8 key vertical markets, Strengthening of consulting DevOps and asset-based including 2 priorities Digitisation platforms Financial Servic
Slide 14: Strong performance driven by digitalisation
Strong performance driven by digitalisation AI – Big data – Cloud – Cybersecurity Very buoyant market Consulting Powerful growth drivers Financial Tailored services response Digital services in Europe: Cloud migration and End-to-End approach estimated growth >5% per modernisation of Vertical special
Slide 15: Significant increase in value creation
Significant increase in value creation Structural free cash flow in excess of €200 million per year 2020 2021 2020 2021 2015 2016 2017 2018 2019 2020 2021 4 800 8,2% 8.1% 300 4,683 264 4 700 8,0% +6.4% +1.1 250 FCF > €200m 229 4 600 growth 7,8% points per year 204 7,6% 200 4 500 7,4% 151 148 4 400 1
Slide 16: France
France Strong rebound in performance compared with 2020 Accelerating pace of recovery over the 2021 2020 year, with double-digit growth in Q3 and Q4 France (€m) (% Rev.) (€m) (% Rev.) Rebound driven in particular by product life cycle management activities (up Revenue 1,824.9 1,655.6 17.2%) Organic
Slide 17: United Kingdom
United Kingdom Solid performance in 2021 Slowing of growth in Q4, as 2021 2020 anticipated Very strong revenue growth for the United Kingdom (€m) (% Rev.) (€m) (% Rev.) year Revenue 823.1 699.8 Public-sector joint ventures up 24.3% Defence & Security and Government p Organic growth (%) + 13.9% secto
Slide 18: Other Europe
Other Europe Improvement and consolidation of operating performance Double-digit growth 2021 2020 In Benelux (€m) (% Rev.) (€m) (% Rev.) In Scandinavia Other Europe In Germany Revenue ee cas o 1,343.2 1,249.0 Strengthening of consulting business Organic growth (%) + 6.0% in Scandinavia (EGGS Design
Slide 19: Sopra Banking Software
Sopra Banking Software Gradual improvement in operating position Continuation of product developments 2021 2020 Highly unfavourable base effect in H2 2020 for licences Sopra Banking Software (€m) (% Rev.) (€m) (% Rev.) Increase in Services revenue in H2 Revenue 434.1 421.6 2021 Robust growth for new
Slide 20: Other Solutions
Other Solutions Return to >10% operating margin on business activity Human resources solutions up 10.0% 2021 2020 Good momentum in outsourced management of payslips Other Solutions (€m) (% Rev.) (€m) (% Rev.) More than a million payslips managed each month Revenue 257.5 236.9 First major successes f
Slide 21: Income statement
Income statement Financial year 2021 2021 2021 2020 2020 (€m) (% of Rev.) (€m) (% of Rev.) Revenue 4,682.8 4,262.9 Organic growth 6.4% Operating profit on business activity 379.2 8.1% 300.2 7.0% Share-based payment expenses - 6.7 - 4.2 Amortisation of allocated intangible assets - 33.2 - 34.8 Profit
Slide 22: Simplified balance sheet
Simplified balance sheet Financial year 2021 31/12/2021 31/12/2020 (€m) (€m) Goodwill 1,984.3 1,843.2 Allocated intangible assets 131.8 161.5 Other fixed assets 216.4 241.1 Right-of-use assets 343.1 290.3 Equity-accounted investments 198.1 193.4 Fixed assets 2,873.8 2,729.6 Net deferred tax 99.7 0 1
Slide 23: Very solid balance sheet
Very solid balance sheet Position at 31 December 2021 Net financial debt / Equity Net financial debt / EBITDA (1) Leverage 448 1,696 0.7x 327 Gearing Financial 19% covenants: 3x maximum 327 Equity Net financial debt Dette financièredebt Net financial nette EBITDA(1) (1) Pro forma EBITDA before impac
Slide 24: Outlook
Outlook 24 2022 Combined General Meeting – 1 June 2022
Slide 25: Strong growth in revenue in Q1 2022
Strong growth in revenue in Q1 2022 Revenue Q1 2021 Organic Total Q1 2022 Restated* growth growth (€m) (€m) (%) (%) France 513.2 468.5 + 9.6% + 11.5% United Kingdom 219.0 218.3 + 0.3% + 4.9% Other Europe 365.0 337.6 + 8.1% + 10.2% Sopra Banking Software 103.2 102.4 + 0.8% + 1.8% Other Solutions 67.3
Slide 26: Reminder of the 2022 financial targets
Reminder of the 2022 financial targets Organic revenue growth of between 5% and 6% Operating margin on business activity of between 8.5% and 9.0% Free cash flow of around €250m 26 2022 Combined General Meeting – 1 June 2022
Slide 27: Medium-term ambitions
Medium-term ambitions Financial targets Conseil Operating performance - 2022 / 2024 Services External financiers growth Revenue organic growth +4% to +6% pa Operating margin rate on business activity ~ 10% in 2024 Proactively pursuing consolidation Free cash flow 5% to 7% of rev. 27 2022 Combined Ge
Slide 28: Medium-term ambitions
Medium-term ambitions ESG objectives Reduction of greenhouse Gender Digital sustainability in our gas emissions balance value proposition Cut GHG (1) emissions from A proactive policy of bringing Digital sobriety direct activities, approved by more women into the Measuring the environmental SBTi wor
Slide 29: Meeting schedule
Meeting schedule 01 Agenda for the General Meeting 02 Board of Directors’ reports – Presentation of the 2021 accounts and operating position 03 Statutory Auditors’ reports 04 Information about proposed resolutions 05 Discussion 06 Vote 07 Closing 29 2022 Combined General Meeting – 1 June 2022
Slide 30: Auditors’ reports
Auditors’ reports Statutory Auditors’ report on the consolidated and individual financial statements Statutory Auditors’ special report on regulated agreements and commitments Others Statutory Auditors’ reports 30 2022 Combined General Meeting – 1 June 2022
Slide 31: Schedule for the General Meeting
Schedule for the General Meeting 01 Agenda for the General Meeting 02 Board of Directors’ reports – Presentation of the 2021 accounts and operating position 03 Statutory Auditors’ reports 04 Information on the proposed resolutions 05 Discussion 06 Vote on resolutions 07 Closing remarks to the Genera
Slide 32: Information on the proposed resolutions
Information on the proposed resolutions Quorum and majority rules Ordinary General Meeting The resolutions submitted for approval at the Ordinary General Meeting require a quorum of at least one-fifth of the total voting shares and a majority of the votes of the shareholders present or represented b
Slide 33: Information on the proposed resolutions
Information on the proposed resolutions Approval of the financial statements and appropriation of earnings Resolutions 1 and 2 – Approval of the Resolutions submitted for approval at the financial statements Ordinary General Meeting Parent company and consolidated financial statements for financial
Slide 34: Information on the proposed resolutions
Information on the proposed resolutions Compensation of company officers Resolution 4 – Approval of the report on the Resolution submitted for approval at the compensation of company officers relating to the disclosures mentioned in Article Ordinary General Meeting L. 22-10-9 I of the French Commerc
Slide 35: Information on the proposed resolutions
Information on the proposed resolutions Compensation of company officers Resolutions 7 and 8 – Compensation Resolutions submitted for approval at the policy Ordinary General Meeting of the Chairman of the Board of Directors Meeting brochure of the Chief Executive Officer Compensation policy No sig
Slide 36: Information on the proposed resolutions
Information on the proposed resolutions Decision setting the amount of compensation awarded to Directors Resolution 10 – Decision setting the Resolution submitted for approval at the amount of compensation awarded to Directors for their service Ordinary General Meeting Proposed compensation for fina
Slide 37: Information on the proposed resolutions
Information on the proposed resolutions Reappointment and appointment of Directors Resolutions 11 to 14 – Reappointment of Resolutions submitted for approval at the 4 Directors: Ordinary General Meeting Noëlle Lenoir for a 4-year term Meeting brochure André Einaudi Presentation of the reappointed
Slide 38: Information on the proposed resolutions
Information on the proposed resolutions Renewal of the appointment of a Statutory Auditor Resolution 16 – Renewal of the Resolutions submitted for approval at the appointment of ACA Nexia as one of the Company’s two Statutory Auditors Ordinary General Meeting Appointed for a period of 6 financial ye
Slide 39: Information on the proposed resolutions
Information on the proposed resolutions Authorisation for the Company to buy back its own shares and to potentially retire treasury shares Resolution 17 – Buyback by the Company Resolution submitted for approval at the of its own shares Ordinary General Meeting Authorisation renewed under the same t
Slide 40: Information on the proposed resolutions
Information on the proposed resolutions Financial delegations granted to the Board of Directors Resolutions 19 to 23 – Financial delegations Resolutions submitted for approval at the granted to the Board of Directors to carry out Extraordinary share capital increases other than as consideration for
Slide 41: Information on the proposed resolutions
Information on the proposed resolutions Financial delegations aimed at giving employees and/or company officers a stake in the share capital Resolution 26 – Capital increase through Resolutions submitted for approval at the the capitalisation of reserves Extraordinary Authorisation granted for a per
Slide 42: Information on the proposed resolutions
Information on the proposed resolutions Powers Resolution 29 – Powers granted to carry out Resolutions submitted for approval at the all legal formalities Ordinary General Meeting 42 2022 Combined General Meeting – 1 June 2022
Slide 43: Meeting schedule
Meeting schedule 01 Agenda for the General Meeting 02 Board of Directors’ reports – Presentation of the 2021 accounts and operating position 03 Statutory Auditors’ reports 04 Information about proposed resolutions 05 Discussion 06 Vote 07 Closing 43 2022 Combined General Meeting – 1 June 2022
Slide 44: 2022 Combined General Meeting Q&A session
2022 Combined General Meeting Q&A session 44 2022 Combined General Meeting – 1 June 2022
Slide 45: Meeting schedule
Meeting schedule 01 Agenda for the General Meeting 02 Board of Directors’ reports – Presentation of the 2021 accounts and operating position 03 Statutory Auditors’ reports 04 Information about proposed resolutions 05 Discussion 06 Vote 07 Closing 45 2022 Combined General Meeting – 1 June 2022
Slide 46: Meeting schedule
Meeting schedule 01 Agenda for the General Meeting 02 Board of Directors’ reports – Presentation of the 2021 accounts and operating position 03 Statutory Auditors’ reports 04 Information about proposed resolutions 05 Discussion 06 Vote 07 Closing 46 2022 Combined General Meeting – 1 June 2022
Slide 47: Closing – 2022 Combined General Meeting
Closing – 2022 Combined General Meeting 47 2022 Combined General Meeting – 1 June 2022
Slide 48: Alternative performance measures
Alternative performance measures Restated revenue: Revenue for the prior year, expressed on the basis of the scope and exchange rates for the current year. Organic revenue growth: Increase in revenue between the period under review and restated revenue for the same period in the prior financial year