2015 RESULTS. Analyst Meeting (SFAF) of 17 March 2016

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Hector Thornton
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1 2015 RESULTS Analyst Meeting (SFAF) of 17 March 2016

2 CONTENTS 1 Operating highlights Financial outlook results 3 4 Appendices Analyst Meeting (SFAF) of 17 March

3 1 OPERATING HIGHLIGHTS Analyst Meeting (SFAF) of 17 March

4 KEY FIGURES: BEST YEAR SINCE INCEPTION REVENUE M 12.5% 2014 CURRENT OPERATING INCOME (EBIT) K +28.0% WORKFORCE NET INCOME 4, K % Analyst Meeting (SFAF) of 17 March

5 KEY POINTS + + Market share gains in strategic customer segments (+13% for 10 largest customers) Position in Iberian Peninsula significantly strengthened through an acquisition Return to an optimal situation in Italy in order to take the next step forward Boosted by the digital transformation: Acquisition of new business Incubation project with customers Optimization of RUN budgets to invest in the transformation Integration of recent graduates Recruiting experienced talent by leveraging the strength of Aubay's image Analyst Meeting (SFAF) of 17 March

6 2 FINANCIAL RESULTS Analyst Meeting (SFAF) of 17 March

7 2015 REVENUE REVENUE GROWTH ( MILLION) % excl. France: 40% CAGR 10 yrs : 8% Utilization rate: 93.5% Other countries France Analyst Meeting (SFAF) of 17 March

8 REVENUE GROWTH ( MILLION) % % 93.5% 06/07/1905 Consolid. scope effect (Norma4 for 9 months) Internal growth 07/07/1905 INTERNAL GROWTH: +8.7% Analyst Meeting (SFAF) of 17 March

9 ANALYSIS OF REVENUE GROWTH FRANCE ( MILLION) % /07/ Internal growth 07/07/ INTERNAL GROWTH: +9.3% Analyst Meeting (SFAF) of 17 March

10 ANALYSIS OF REVENUE GROWTH INTERNATIONAL ( MILLION) % /07/ Consolid. scope effect Internal growth 07/07/ (Norma4 / 9 months) INTERNAL GROWTH: +7.6% Analyst Meeting (SFAF) of 17 March

11 2015 REVENUE BY SECTOR 2005 vs Services/ Utilities 12% vs. 11% Industry/ Transportation 7% vs. 8% Public sector 7% vs. 7% Insurance 27% vs. 25% Bank/ Finance 41% vs. 42% Revenue by industry sector as % in 2015 Retail 1% vs. 1% Telecoms 6% vs. 6% Analyst Meeting (SFAF) of 17 March

WORKFORCE (FULL-TIME EQUIVALENT) Since 31/12/14 : + 347 employees

1,938 2014 2015 93% revenue-generating Spain / Portugal 1,272 vs.

12 WORKFORCE (FULL-TIME EQUIVALENT) Since 31/12/14 : employees (excl. CastInfo acquisition) Breakdown by region France: 2,125 International: 2,542 Total 2015: 4,667 France 2,125 vs. 1, % revenue-generating Spain / Portugal 1,272 vs. 603 Italy 1,014 vs. 968 Critical size reached in all regions Belgium / Luxembourg 256 vs Analyst Meeting (SFAF) of 17 March

13 INCOME STATEMENT HIGHLIGHTS BY REGION : FRANCE Revenue (IN M) CURRENT OPERATING MARGIN Change Group % 9.5% 8.3% France % 10.6% 9.7% Growth considerably outpacing the benchmark market (Syntec: 2.1%) Engine for relations with large customers at the commercial level Balance between the package offering and technical support Success of industrialization and recruitment Analyst Meeting (SFAF) of 17 March

14 INCOME STATEMENT HIGHLIGHTS BY REGION : INTERNATIONAL Revenue (IN M) CURRENT OPERATING MARGIN Change Group % 9.5% 8.3% International % 8.3% 6.8% Critical size obtained in the Iberian Peninsula Access to BBVA and Santander in Spain Return to good margins in Italy Improvement of Belux Analyst Meeting (SFAF) of 17 March

15 INCOME STATEMENT HIGHLIGHTS ( '000s) Change Revenue 273, , % Current operating income 25,980 20, % % of revenue 9.5% 8.3% Other operating income and expenses (1,534) (1,690) Operating profit 24,446 18, % Net financial income (expense) (218) (893) Income tax (8,184) (6,015) Net income of equity accounted investees Net income of consolidated companies 16,044 11, % % of revenue 5.9% 4.8% Net income attributable to non-controlling interest Net income attributable to owners of the parent 15,903 11, Analyst Meeting (SFAF) of 17 March

16 BALANCE SHEET HIGHLIGHTS ASSETS In M 31/12/15 31/12/14 Consolidated goodwill Other financial assets Deferred tax assets Other current assets Cash flow Total Assets In M 31/12/15 31/12/14 Shareholder s equity Group Share LIABILITIES Equity IM Non-current liability Financial debts Current liability Total Liabilities Analyst Meeting (SFAF) of 17 March

17 CASH FLOW HIGHLIGHTS In M Change Cash flow % of revenue % % Tax payments (10.8) (11.0) Change in WCR Net cash provided by (used in) operating activities Net cash provided by (used in) investing activities Net cash provided by (used in) financing activities (8.0) (5.5) (5.3) (2.7) Net change in cash and cash equivalents Opening cash and cash equivalents Closing cash and cash equivalents CASH + MARKETABLE SECURITIES = SHORT-TERM BANK FACILITIES AND OVERDRAFTS = Analyst Meeting (SFAF) of 17 March M 1.0M +36% Acquisition of 75% of CastInfo Acquisition of 8% of Norma4 Dividends paid: 3.2 M

18 NET CHANGE IN CASH AND CASH EQUIVALENTS (IN M) Free cash flow: <6.6> <2.4> Net debt 31/12/2014 Cash flow Tax payments Change in WCR CAPEX Financial investments & acquisitions Dividends Other financial flows Net debt 31/12/ Analyst Meeting (SFAF) of 17 March

19 CHANGES IN GROSS DEBT In m Gross debt at 31/12/ Repayments in the period (1.2) Gross debt at 31/12/ Cash at bank and in hand 21.6 Net debt at 31/12/ VERY LOW GEARING: 2% EBITDA 2016: 27,575,000 THE CAPACITY OF APPROX. 70M BASED ON A MULTIPLE OF 2.5 X EBITDA Analyst Meeting (SFAF) of 17 March

20 OUTLOOK Analyst Meeting (SFAF) of 17 March

21 TRENDS PROVIDING A BASIS FOR OPTIMISM Aubay Group's operational and financial health is excellent. Our market remains buoyant. Identical to 2015 with uncertainties though not more than in the past. Gaining access to large customers is increasingly complicated for small players. CATALYSTS FOR GROWTH Market listings and positions represent important assets Analyst Meeting (SFAF) of 17 March 2016 The emergence of digital is profoundly transforming organizations, generating business and leading to the emergence of many small companies

22 THE AUBAY PROJECT FOR THE MEDIUM-TERM After building in slightly more than 15 years a Digital Service Company well known and recognized in its market To establish a position as the reference for quality and alternative to the large global players. WITHOUT CHANGING OUR PRINCIPLES AMBITION WEALTH MANAGEMENT Analyst Meeting (SFAF) of 17 March

23 THREE STRATEGIC PRIORITIES BOOST ORGANIC GROWTH (BUSINESS AS USUAL) Increase our market shares Effectively recruit Quality of services Acquiring new customers WORKING ON OUR DIGITAL OFFERING Expertise is built and capitalized internally (communication / marketing) Technological expertise constitutes a specific silo in the same way as other technologies No acquisition planned in this area (too small, too volatile, too expensive) ACTIVELY PURSUE EXTERNAL GROWTH OPPORTUNITIES Target acquisitions that make it possible to reduce time for opening accounts and that ultimately will provide shareholder value France / Italy as priority markets Analyst Meeting (SFAF) of 17 March

2016 FINANCIAL TARGETS Assumptions Organic growth of 6% 2015 2016 Revenue 273.

85 M 9.5% 9.1% Current operating margin of 9.

24 2016 FINANCIAL TARGETS Assumptions Organic growth of 6% Revenue M +15.7% 317 M Current operating income Current operating margin M +11% M 9.5% 9.1% Current operating margin of 9.5%, stable based on initial consolidation scope, 6% incl. the last acquisition Analyst Meeting (SFAF) of 17 March

SETTING THE FINAL DIVIDEND / SHAREHOLDER STRUCTURE Final dividend The Board of Directors will propose a dividend of 0.30 per share (vs. 0.23 last year) which, taking into account the interim dividend of 0.

25 SETTING THE FINAL DIVIDEND / SHAREHOLDER STRUCTURE Final dividend The Board of Directors will propose a dividend of 0.30 per share (vs last year) which, taking into account the interim dividend of 0.13 paid in November 2015, will result in a payment of 0.17 in May Shareholder structure % of Capital % of Voting rights Partners / Managers Free float Own shares indirectly held through subsidiaries Analyst Meeting (SFAF) of 17 March

26 Analyst Meeting (SFAF) of 17 March QUESTIONS?

27 4.1 APPENDICES AUBAY IN BRIEF Analyst Meeting (SFAF) of 17 March

AUBAY, A EUROPEAN DIGITAL SERVICE PROVIDER Created and 1998, listed on Euronext (SBF

strengthened European presence Revenue by market France 60% Italy 22% Spain / Portugal

type France 2,125 Total = 4,667 Spain / Portugal 1,272 Italy 1,014 DELEGATION OF

28 AUBAY, A EUROPEAN DIGITAL SERVICE PROVIDER Created and 1998, listed on Euronext (SBF 250) 16 offices in seven European countries 54% of the capital held by managers A strengthened European presence Revenue by market France 60% Italy 22% Spain / Portugal 11% Belux 7% Aubay revenue ( M) prev pro proforma Engineers and Consultants at 31/12/2015 Revenue by engagement type France 2,125 Total = 4,667 Spain / Portugal 1,272 Italy 1,014 DELEGATION OF SKILLS 54% DELEGATION OF RESPONSIBILITIES 46% Belgium / Luxembourg 256 * Figures post-acquisition CastInfo (15/12/2015) Analyst Meeting (SFAF) of 17 March

AUBAY, A EUROPEAN DIGITAL SERVICE PROVIDER Created and 1998, listed on Euronext (SBF 250) 16 offices in seven European countries 54% of the capital held by managers 2015 revenue by industry sector

29 AUBAY, A EUROPEAN DIGITAL SERVICE PROVIDER Created and 1998, listed on Euronext (SBF 250) 16 offices in seven European countries 54% of the capital held by managers 2015 revenue by industry sector (%) TOP 15 customers of Aubay Group 41% 27% BNP Paribas Groupe Crédit Agricole Allianz Grupo Santander AXA Bank / Finance 7% 7% Insurance Public sector Industry / Transport 12% Services / Utilities 6% Telecoms 1% E-commerce / Retail Société Générale Groupe BPCE Poste Italiane Orange BBVA SNCF Vodafone Intesa SAN PAOLO European Institutions Renault Nissan Analyst Meeting (SFAF) of 17 March

OUR DNA A family-held growth company A hands-on management team Revenue growth ( M) 300 200 100 A culture of growth Balancing internal growth with acquisitions 0 Growth in

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 A commitment to shareholder returns Dividend policy: approx.

30 OUR DNA A family-held growth company A hands-on management team Revenue growth ( M) A culture of growth Balancing internal growth with acquisitions 0 Growth in current operating income ( M) A culture of profitability Prudence and discipline (a capacity for adaptation) Dividends ( '000s) A commitment to shareholder returns Dividend policy: approx. 30% of net income (that regular increases since 2002), buybacks and cancellations of approximately 1 million shares or 7% of the capital over the last three years.. Gradually creating value Analyst Meeting (SFAF) of 17 March

A VIRTUOUS CIRCLE OF GROWTH Masters degree or equivalent 43% Gradually creating value

RECRUIT, SELL & INNOVATE Improving margins and and cash flow generation Rapid integration

well-positioned in their markets Recent successful acquisitions: CastInfo, Spain, 2015

or equivalent 16% + 900 highly qualified candidates recruited in 2015 Relevant proposals

31 A VIRTUOUS CIRCLE OF GROWTH Masters degree or equivalent 43% Gradually creating value Shareholder returns Recruiting highly qualified candidates Engineering degree 41% MANAGE, RECRUIT, SELL & INNOVATE Improving margins and and cash flow generation Rapid integration under a common banner ACQUIRE Acquiring marginally profitable companies though well-positioned in their markets Recent successful acquisitions: CastInfo, Spain, 2015 Norma4, Spain, 2014 Aedian, France, 2013 BSC, Italy, 2013 Adex, France, 2010 Bachelors degree or equivalent 16% highly qualified candidates recruited in 2015 Relevant proposals Attractive customers INTEGRATE & REORGANIZE 28 successfully integrated acquisitions Analyst Meeting (SFAF) of 17 March

32 4.2 APPENDICES FINANCIAL HIGHLIGHTS Analyst Meeting (SFAF) of 17 March

33 INCOME STATEMENT AT 31/12/2015 ( 000s) 31/12/2015 % 31/12/14 % Revenue 273, % 243, % Other operating income Purchases used in production and external charges (58,322) (50,596) Staff costs (185,691) (168,784) Taxes other than on income (2,666) (2,566) Amortisation, depreciation and provisions (1,595) (1,329) Change in inventories of work in progress and finished goods 3 3 Other operating income and expenses Current operating income 25, % 20, % Other operating income and expenses (1,534) (1,690) Net operating income 24, % 18, % Income from cash and cash equivalents Net borrowing costs*** (816) (1,174) Other financial income and expenses Net financial income (expense) (218) (893) Income tax expense (8,184) 34% (6,015) 34% Income from equity-accounted investees Net income before results of discontinued operations or assets held for sale 16,044 11,694 Net income after tax of discontinued operations or assets held for sale Net income 16, % 11, % Group share 15,903 11,645 Non-controlling interests Basic weighted average number of shares 13,029,463 13,114,209 Earnings per share Diluted weighted average number of shares 13,081,127 13,203,609 Diluted earnings per share Analyst Meeting (SFAF) of 17 March

34 STATEMENT OF FINANCIAL POSITION AT 31/12/2015 ASSETS ( 000s) 31/12/ /12/14 Goodwill 83,570 75,793 Intangible assets 23,753 23,798 Property, plant and equipment 4,207 4,027 Equity-accounted investees - Other financial assets 1,951 2,441 Deferred tax assets 1,257 1,560 Other non-current assets - NON-CURRENT ASSETS 114, ,619 Inventories and work in progress Trade receivables and related accounts 90,185 81,424 Other receivables and accruals 22,707 20,286 Marketable securities 4,342 4,494 Cash at bank and in hand 18,297 14,558 CURRENT ASSETS 135, ,778 TOTAL ASSETS 250, , Analyst Meeting (SFAF) of 17 March

35 STATEMENT OF FINANCIAL POSITION AT 31/12/2015 LIABILITIES ( 000s) 31/12/ /12/14 Capital 6,515 6,510 Additional paid-in capital and consolidated reserves 88,344 79,982 Net income attributable to the Group 15,903 11,645 Shareholders' equity attributable to the Group 110,762 98,137 Non-controlling interests SHAREHOLDERS' EQUITY 111,572 98,798 Borrowings and financial liabilities: non-current portion 14,958 19,832 Deferred tax liabilities Provisions for contingencies and expenses 1,909 1,921 Other non-current liabilities 6,665 3,966 NON-CURRENT LIABILITIES 23,582 25,798 Borrowings and financial liabilities: current portion 10,088 5,831 Trade payables and related accounts 19,606 19,156 Other receivables and accruals 85,500 78,814 CURRENT LIABILITIES 115, ,801 TOTAL EQUITY AND LIABILITIES 250, , Analyst Meeting (SFAF) of 17 March

36 STATEMENT OF CONSOLIDATED CASH FLOWS AT 31/12/2015 ( 000s) 31/12/ /12/14 Consolidated net income (including non-controlling interest) 16,044 11,694 Income from equity-accounted investees Net exceptional depreciation, amortisation and provisions 1,405 1,310 Non-cash expenses and income*** linked to stock options Other non-cash income and expenses*** 0 Dividend income (20) (60) Gains and losses on disposals of fixed assets (130) (27) Cash flow after net interest expense and tax 17,683 13,052 Net borrowing costs 816 1,185 Tax expense (including deferred taxes) 8,184 6,015 Cash flow before net interest expense and tax (A) 26,683 20,252 Income tax payments (B) (10,780) (10,953) Change in operating working capital requirements (including liabilities relating to employee benefits) (C) 405 3,677 Net cash provided by (used in) operating activities (D) = (A+B+C) 16,308 12,976 Outflows for the acquisition of tangible and intangible fixed assets (1,160) (2,617) Inflows from the disposal of tangible and intangible fixed assets Outflows for the acquisition of financial assets (54) - Inflows from the disposal of acquisition of financial assets Change in loans and advances granted 242 (85) Impact of changes in the Group structure (7,682) (3,334) Dividends received Net cash provided by (used in) investing activities (8,041) (5,494) Proceeds from capital increases Amounts received upon the exercise of stock options Purchases of treasury shares for cancellation Purchases of and proceeds from the sale of treasury shares 28 Dividends paid in the period Net dividends paid to parent company shareholders (3,242) (2,731) Dividends paid to the non-controlling shareholders of the consolidated companies Inflows from new borrowings 7,500 6,500 Repayment of debt (8,759) (5,400) Net interest payments (830) (1,185) Other financial flows (24) (192) Net cash provided by (used in) financing activities (F) (5,266) (2,715) Effects of changes in foreign exchange rates (G) (2) Change in net cash (D+E+F+G) 2,999 4,767 Cash and cash equivalents at the beginning of the year 18,583 13,816 Cash and cash equivalents at year-end 21,582 18,583 Cash flow reconciliation at year-end with the balance sheet Cash at bank and in hand 18,297 14,558 Short-term investments 4,342 4,494 Bank overdrafts (1,057) (469) Total cash and cash equivalents 21,582 18, Analyst Meeting (SFAF) of 17 March

37 CHANGE IN SHAREHOLDERS' EQUITY AT 31/12/2012 Share capital Additional paid-in capital and consolidated reserves Net income attrib. to owners of the parent Equity attributable to the Group Noncontrolling interests Total Shareholders' equity at 31 December ,500 73,772 9,022 89, ,924 Increase and reduction in capital Share-based payments Dividends (2,731) - (2,731) (2,731) Appropriation of net income 9,022 (9,022) -- - Net income of the period - 11,645 11, ,694 Change in treasury shares (20) - (20) (20) Changes in Group structure - Flows related to equity-accounted investments Other changes (319) - (319) (19) (338) Shareholders' equity at 31 December ,510 79,983 11,645 98, ,798 Increase and reduction in capital Share-based payments Dividends (3,242) - (3,242) (3,242) Appropriation of net income 11,645 (11,645) -- - Net income of the period 15,903 15, ,044 Change in treasury shares (484) - (484) (484) Changes in Group structure - Flows related to equity-accounted investments Other changes Shareholders' equity at 31 December ,515 88,345 15, , , Analyst Meeting (SFAF) of 17 March

H RESULTS. Analyst Meeting (SFAF) of 15 September 2016

H RESULTS. Analyst Meeting (SFAF) of 15 September 2016 H1 2016 RESULTS Analyst Meeting (SFAF) of 15 September 2016 CONTENTS 1 Key points Financial 2 2016 outlook results 3 4 Appendices - - H1 2016 results - Analyst Meeting (SFAF) of 15 September 2016 2 1 KEY