Annual Results Paris, 11th march 2009

Transcription

1 Annual Results 2008 Paris, 11th march 2009

2 2008 annual results Contents 1. The Engineering and Technology Consulting (ETC) market annual results development strategy 2

3 2008 annual results ALTEN ALTEN remains strongly positioned on Engineering and Technology Consulting (ETC), which represents 80% of sales. ALTEN carries out conception and study projects for technical and IS Departments for key industrial, telecom and tertiary sector accounts. ALTEN now has more than 12,600 employees, 88% are top level engineering consultants. ALTEN is European leader in Engineering and Technology Consulting (ETC) 3

4 2008 Annual results Over 12,600 employees in 12 countries

5 2008 annual results The Engineering and Technology Consulting market 5

6 2008 annual results The ETC market The market encompasses all Engineering and Technology Consulting (ETC) services, Scientific and Technical Studies, Network and Systems Architecture. The R&D projects are the cornerstone of technological innovation and are part of our clients strategy. A market with real barriers to entry 6

7 2008 annual results The ETC market This market, estimated at 6.8 billion euros (PAC), has grown by between 5% and 7% per year since 2005, and will continue to grow over the medium to long-term. In France, it is estimated to have more than 80,000 engineers. The outsourcing rate is 27-30% in France, and more than 15% in Europe. A divided market comprised of around ten principal players, and many local players. The reduction in short lists and the economic crisis will probably cause a concentration of players 7

8 2008 annual results The ETC market in 2008 Development in the market follows on from previous years (up until November ) growth in activity, a tight recruitment market, increased turnover (>25%) demanding "purchasing" policies: pressure on prices, reduction in the number of approved suppliers, necessity of having a comprehensive offer (consulting project mode fixed price work package offshore/nearshore) 8

9 2008 annual results 2008 highlights Alten has confirmed almost all its reference listings and partnerships in Europe, and is one of the short listed E2S service providers in the world, for EADS. Sustained organic growth (16.2%). Activity rate of steady at approximately 94% over the year. Recruitment of more than 3,000 engineers, i.e. net growth of 870 engineers. Significant growth achieved in the Energy, Railway, Automotive and Bank sectors. Acceleration in external growth: 8 companies purchased in 2008, in France and abroad (1,100 consultants, annual sales of 86.2m). 9

10 2008 Annual results The development of the range December 2007 June 2008 December 2008 Consulting support for completion of studies and project on a time-spent basis, in consulting mode Project management Workpackage (project team & dedicated structure) Fixed priced project, based on detailed specs P in structured Projects Near-Shore : Poland, Czech Rep, Romania Off-Shore : Vietnam, India with Infotech Total consultants

11 2008 Annual results ALTEN s skills Dec Dec Onboard systems/ real time, MMI Analogue and digital electronics Onboard systems/ real time, MMI 34% 16% Analogue and digital electronics 34% 15% Communication systems 12% 13% 25% Information system architecture Mechanics, scientific calculation Communication systems 11% 14% 26% Information system architecture Mechanics, scientific calculation A top-level group of engineers with multi-disciplinary skills 11

12 2008 annual results 2008 acquisitions Alten has continued its policy of targeted acquisitions, in France and abroad. 2 companies specialised in project management (PMO) in France, in the first quarter (70 consultants, annual sales: 5.2m), 1 company specialised in embedded / real-time software in the Netherlands, in the first quarter (90 consultants, annual sales: 7.8m), 1 company specialised in documentation engineering, in Romania, in the second quarter (80 consultants, annual turnover: 1.7m). 12

13 2008 annual results 2008 acquisitions 1 Microsoft technology experts company in France, in July 2008 (80 consultants, annual sales: 7.5m), 2 companies specialised in information technologies in Spain at the end of September (300 consultants, annual sales: 24m), 1 company specialised in the field of mechanics, electronics and scientific computation, in Sweden in December 2008 (400 consultants, annual sales: 40m). The current market context should enable Alten to strengthen its external growth under advantageous conditions, particularly internationally. 13

14 2008 annual results Acquisitions in the first quarter 2009 In France, a company specialised in the design of "vehicle" systems: engine control and motorisation systems, embedded and real-time software (180 consultants, annual sales: 14m), In Italy, a company specialised in Telecom and embedded software (150 consultants, annual sales: 10m), 14

15 2008 Annual results Shareholding on 31 December 2008 Voting rights Founder + Holding 57,66% FCP Alten 0,86% Public 41,49% Public 58.58% 40.24% Founder and controlling holding 1.18% FCP ALTEN 15

16 2008 Annual results Annual results

17 2008 Annual results Revenue growth % % % International % In M % 25.8% 72.3% 74.2% 75% 73.7% France Dec Dec Dec Dec

18 2008 Annual results Revenue breakdown by business sector (in%) December 2007 Automotive 20% 10% Energy Automotive December % 12% Energy Aeronautics Space Rail/ Naval 13% 3% Telecoms 19% 14% 7% 6% 4% 4% Banking/tertiary Industry Multimedia/ Services Electronics G.P. Defence Aeronautics Space Rail/ Naval 13% 3% 17% 15% 7% Industry 5% 4% 4% Multimedia/ Services Electronics G.P. Defence Telecoms Banking/tertiary 18

19 2008 Annual results Consolidated turnover by country (in m) Countries Turnover % Turnover % Var en % Benelux % % +25.0% Spain % % +33.1% Germany % % +12.3% United Kindgom % % +44.0% Italy % % +41.7% Switzerland % % -5.5% Eastern Europe % % +53.3% Europe (excl. France) % % +25.0% France % % +19.2% TOTAL % % +20.7% 19

20 2008 Annual results Condensend income statement (in m) In M Var % Turnover % Operating Profit on Activity % In % of revenue 12.1% 11.5 % Cost of stock options Operating Profit before exceptionals % Non recurrent profit Gain (loss) on assets disposals 0-0,3 Goodwill impairment Operating Profit % In % of revenue 10.4% 10.3% Net debt income (expense) Financial cost on liabilities present value Depreciation on financial assets - -0,6 Financial income Corporate income tax Minority interests Profit attributable to the group % In % of revenue 6.1% 6.4% Audit in progress 20

21 2008 Annual results Condensed Income Statement by Regions (en m) In M Elim Elim 2008 France Internat. Groupe France Internat. Groupe Sales Operating Profit on activity In % of revenue % 10.8% 12.1% 11.4% 10.8% 11.5% Cost of Stock options Operating profit before exceptionals Non recurrent profit Gain (loss) on assets disposals Goodwill impairement Operating profit In % of revenue % 8.7% 10.4% 9.9% 10.6% 10.3% Net debt income (expense) Financial cost on liabilities present value Depreciation on financial assets Financial income Corporate income tax Minority interest Net profit In % of revenue % 5.0% 6.1% 6.1% 6.9% 6.4% Audit in progress 21

22 2008 Annual results Condensed Balance sheet ( m) Assets Liabilities and shareholders equity In M Dec Dec 2008 (Net) (Net) In M Dec (Net) Dec. (Net) 2008 Goodwill Other intangible assets Tangible assets Non-current financial assets Deferred tax NON CURRENT ASSETS CURRENT ASSETS CASH TOTAL ASSET Shareholder s equity Minority shareholders Long term contingency provis Non current financial liabilities Other long term liabilities NON CURRENT LIABILITIES CURRENT LIABILITIES FINANCIAL LIABILITIES TOTAL LIABILITIES

23 2008 Annual results Cash flow statement (in m) In m Cash-Flow Corporation tax paid Change in working capital Cash flow from operating activities Acquisitions/disposal on fixed assets Impact of change in scope of consolidation and earn out paid Net cash flow on investment Cash flow from financing activities NET CHANGE IN CASH POSITION Audit in progress 23

24 2008 Annual results 2009/2011 development strategy 24

25 2008 annual results Situation of the ETC market at the start of 2009 Telecom Operators Telecom Component Manufacturers Energy Aeronautics / Space Other Industries Multimedia Consumer Electronics Defence Railway Automotive Banking Finance 25

26 2008 annual results Specific case of the Automotive sector Main clients: Renault (6.5%) - PSA (6.5%) Component manufacturers (4%) Other manufacturers (3%). i.e. approximately consultants at the start of 2009 Risk areas: Renault: sudden stoppage without notice of services, announced on 20 December, with immediate effect. Component manufacturers: Return of tens of consultants during January and February. Situation to date: - Only strategic services are being continued at Renault. - Approximately 370 consultants on the bench in the Automotive sector. 26

27 2008 annual results Situation of the ETC market at the start of 2009 Tensions in price negociations Expected reduction in the average salary Reduced visibility of our clients investment and development programmes in acyclical sectors (Aeronautics/Energy/Railway) and in the Banking vector Irrational behaviour of some competitors, detrimental to the whole of the profession The major players, which are capable of managing the current situation and adapting their offer, will be the post-crisis winners. 27

28 2008 annual results Crisis management: support measures Managing costs (review of salary scales staffing control working time reduction/paid holiday, etc.), Daily monitoring of bench time, Detailed mapping of skills to improve the fluidity of consultants, between the different business sectors. Optimising production costs and the rate of activity 28

29 2008 annual results Crisis management: management measures Adjustment of operational wage costs (Sales representatives HR and recruitment staff Finance and administration), Review of general expenses and renegotiation of main contracts, Reduction in HR and recruitment publicity costs. Controlling overheads 29

30 2008 annual results Crisis management: urgent measures Assessment of "structural overstaffing" if the Automotive sector (in particular Renault) does not relaunch the suspended projects, and if the other sectors do not offer sufficient prospects, All possibilities and solutions must be contemplated, without taboo, in order to adjust the skills offer and bring the activity rate up to 94% 30

31 2008 annual results Development strategy: preparing for the future Continue to set up a managerial and administrative organisation suited to the Group s future size and development of the offer. Capitalise on sectoring the offshore on one hand, and developing the Information System and Networks activity on the other hand, in order to speed up regional and international development. Target acquisitions, in particular internationally (Northern Europe Germany Spain), in a more favourable context (easing prices, less competition from private equity funds) 31

32 2008 annual results Conclusion The first half of 2009 will be dedicated to managing the crisis, adapting the company to the new environment, and protecting the margin. Opportunities for external growth, at attractive prices, should enable ALTEN to grow stronger on strategic markets. The expected improvement in cash generation will be dedicated to financing acquisitions, to possible payment of dividends and to clear the debts. The largest and most financially solid players should benefit from the economic context to increase their market share. Alten should emerge from the current crisis period stronger and be able to consolidate its position as the leading Engineering and Technology Consulting company 32

33 Annual Results 2008 Paris, 11th march 2009

34 APPENDICES BALANCE SHEET - ASSETS (In thousands of euros) ITEM Dec 2007 Dec GOODWILL INTANGIBLE FIXED ASSETS TANGIBLE FIXED ASSETS NON CURRENT FINANCIAL ASSETS DEFERRED TAX ASSETS NON CURRENT ASSETS WORK IN PROGESS TRADE DEBTORS OTHERS RECEIVABLES CASH CURRENT ASSETS TOTAL ASSETS Audit in progress

35 APPENDICES BALANCE SHEET - LIABILITIES (In thousands of euros) ITEM Dec 2007 Dec 2008 Capital Premiums Consolidated reserves Consolidated net profit SHAREHOLDERS EQUITY MINORITY INTERESTS Provisions Non current financial debts Other non current liabilities NON CURRENT LIABILITIES Provisions Current financial debts Trade and other account payable Other current liabilities CURRENT LIABILITIES TOTAL LIABILITIES Audit in progress

36 APPENDICES PROFIT AND LOSS ACCOUNT (In thousands of euros) ITEM Dec Dec NET REVENUE PURCHASES PERSONNEL COSTS EXTERNAL CHARGES TAXES OTHER THAN ON NET INCOME AMORTISATION OTHER CHARGES AND INCOME OPERATING CHARGES OPERATING PROFIT ON ACTIVITY Stock options cost OPERATING INCOME ON ACTIVITY BEFORE EXCEPTIONALS Non recurrent income Capital gain Goodwill depreciation OPERATING INCOME Net financial cost on net debt Financial cost on liabilities present value Depreciation on financial assets FINANCIAL INCOME TAX EXPENSE CONSOLIDATED NET PROFIT PROFIT ATTRIBUTABLE TO MINORITY INTERESTS PROFIT ATTRIBUTABLE TO THE GROUP Audit in progress

37 APPENDICES CASH FLOW STATEMENT (In thousands of euros) ITEM Dec Dec CASH FLOW Consolidated Net Profit Amortisation and Provisions Cost of stock options Tax expense Other Financial charges Financial income Income tax paid Change in Working Capital Requirements NET CASH FLOW GENERATED BY ACTIVITY (FREE CASH FLOW) Acquisition / Disposal of fixed assets Impact of change in scope of consolidation and earn-outs paid NET CASH FLOW ON INVESTMENTS Net financial cost Capital increase Buy back of shares Repayment of long term debt Changes in short term financial debts NET CASH FLOW FROM FINANCING OPERATIONS CHANGE IN CASH POSITION Cash on hand Overdrafts Bank loans NET CASH POSITION Audit in progress