enabler of energy & digital revolutions

Transcription

1 enabler of energy & digital revolutions DOMINIQUE LOUIS Chairman and Chief Executive Officer PHILIPPE CHEVALLIER CFO & Deputy CEO MARCH 2019

2 Disclaimer This presentation includes forward-looking statements, which, by their very nature, involve inherent risks and uncertainties. These statements concern future financial performance and other risks relating to Assystem's markets as well as its results, levels of business, performance, and objectives. Actual results could therefore differ significantly from those currently anticipated. Assystem considers that such statements are based on reasonable assumptions, but cannot and does not give any assurance that future results, levels of business, performance or achievements will be consistent with those statements. The above-mentioned risks include: trends in Assystem's markets; increased competition in those markets; the profitability of Assystem's expansion strategy; challenges to or loss of its intellectual property rights; its ability to establish and maintain strategic relationships in its major businesses; its ability to develop and take advantage of new software and services; and the effect of future acquisitions and investments on the Assystem share price. Due to the uncertain nature of these forward-looking statements, the reader is advised that they do not constitute a guarantee by the Company or by any other person as to the achievement of Assystem's objectives and projects. Neither the Company nor any other person assumes any liability for the accuracy or completeness of these statements, which apply solely to this presentation. 2

3 CONTENTS PART 1 Significant events in 2018 PART financial performance PART 3 Outlook for APPENDICES 24

4 PART 1 SIGNIFICANT EVENTS IN 2018

5 ASSYSTEM: ENABLER OF ENERGY & DIGITAL REVOLUTIONS 100% ENERGY & INFRASTRUCTURE 100% 100% STAFFING 5% 38.2% 5 Assystem s % interest

6 Significant events in 2018 (1/5) Strong growth for Nuclear activities 22.1% overall growth, with 17.2% like for like Acceleration of like-for-like growth during the year (20.5% in the second half) Both overall and like-for-like growth led by France and the UAE Positive effects of the integration of ECP (project management), acquired in late 2017, especially in terms of our business with CEA and Orano Fast like-for-like growth for revenue generated with EDF and the UAE-based operator, ENEC 6

7 Significant events in 2018 (2/5) International development New countries starting nuclear energy programmes Ramp-up of business with ENEC Contract win with K.A.CARE in Saudi Arabia International bid won thanks to the Group s long-standing expertise and local knowledge Site characterisation and impact studies in preparation for Saudi Arabia s nuclear plant programme Two contracts won with Rosatom Supervising the construction of the Akkuyu plant in Turkey Helping to obtain the licences and permits required to build a nuclear power plant in El Dabaa in Egypt 7

8 Significant events in 2018 (3/5) International development Creation of joint ventures Joint venture set up with Nama Development Enterprises in the United Arab Emirates Cementing Assystem s positioning over the long term in the UAE s nuclear energy programme and increasing revenue generated with ENEC by expanding the service offering Creation of a joint venture with AXISCADES in India (AEAC) Proposing engineering services in the Energy, Building, Infrastructure and Nuclear sectors to Indian and international OEMs Enhancing the cost efficiency of Assystem s European and Middle Eastern engineering centres 8

9 Significant events in 2018 (4/5) A mixed year for Energy Tranition & Infrastructures (ET&I) Assystem Care The Group s Life Sciences activities were combined and restructured following the acquisition of BQG in late 2017 Operational disruptions hampered revenue and earnings in first-half 2018 A gradual return to normal operations in the second half Radicon Building infrastructure activities troughed in the first half of 2018 following on from the downward trend seen in second-half 2017 A marked recovery from fourth-quarter 2018 Transport engineering Strong commercial success with SNCF 9

10 Significant events in 2018 (5/5) Additional investment in Expleo Group Expleo Group (formerly Assystem Technologies Groupe) Additional investment in Expleo s equity and quasiequity in order to share in the value creation resulting from the acquisition of SQS 2018 REVENUE 1,042.7m +54.8% o/w +7.7% like for like 2018 EBITDA (1) 99.0m 9.5% of revenue (1) EBITA before the net addition to depreciation and provisions for recurring operating items 10

11 PART FINANCIAL PERFORMANCE

12 2018 key figures Revenue 444.1m +12.4% Free cash flow (1) 43.8m 9.9% of revenue EBITA 26.6m Per-share dividend (2) +2.3% % of revenue (1) Free cash flow for Assystem s current scope of consolidation (2) Dividend that will be recommended at the Annual General Meeting. It would represent a total payout of 15.0 million (payable on ordinary shares carrying dividend rights) 12

13 2018 revenue (In m) (0.9) (0.2) % Like-for-like growth: 6.8% Impact of changes in scope of consolidation: +7.1% Currency effect: -1.5% Total growth: 12.4% 2017 E&I Staffing Other

14 2018 EBITA A year of contrasting trends 26.6m (0.1) Total EBITA +2.3% 6.0% of revenue H vs. H % H vs. H % % % (3.6) (0.2) 4.3% H H H H (In m and % of revenue) 14 E&I Staffing Holding company and Other

15 Energy and Infrastructure (E&I) Revenue 391.3m Total revenue +14.7% (1) Nuclear revenue ET&I revenue % (2) % (3) ( m) Very strong momentum in the Nuclear sector, with growth picking up pace during the year Like-for-like growth: 13.3% in H1 and 20.5% in H2 A difficult first half for ET&I with a marked recovery in the second half Like-for-like growth: negative 17.4% in H1 and positive 4.2% in H2 (1) Total growth (breaking down as a 7.5% like-for-like increase, an 8.3% positive impact from changes in scope of consolidation and a 1.1% negative currency effect). (2) Total growth (breaking down as a 17.2% like-for-like increase, a 6.3% positive impact from changes in scope of consolidation and a 1.4% negative currency effect). (3) Total growth (breaking down as a 7.5% like-for-like decrease, an 11.4% positive impact from changes in scope of consolidation and a 0.6% negative 15 currency effect).

16 Energy and Infrastructure (E&I) Operating profit before non-recurring items (EBITA) Total EBITA 27.3m -2.1% % H1-3.6m % % H m % H1 S S1 H H2 S H2 S (In m and % of revenue) First-half 2018 was adversely affected by the measures taken to reorganise Assystem Care, as well as one-off communication costs related to changes in the Group s scope of consolidation The costs of dissynergies arising due to changes in the scope of consolidation had an estimated full-year impact of 1.5 million Management- and innovation-related investments were made during the year to support growth, both in France and internationally 16

17 Staffing: Revenue and Operating profit before non-recurring items (EBITA) Revenue (in m) EBITA (in m and % of revenue) Oil & Gas 44.2m -2.1% (1) % % Industry % 4.0% The revenue rise for Industry ( 5.6m) largely offset the decline for Oil & Gas ( 6.5m) Operating margin maintained at a satisfactory level compared with the sector as a whole (1) Breaking down as 2.4% growth at constant exchange rates and a 4.5% negative currency effect. 17

18 From EBITA to consolidated profit for the period (In m) (0.6) (0.3) (14.7) (6.2) (1.7) 19.9 EBITA Expenses on free share grants Net nonrecurring expense Contribution of Expleo Group excl. impact of non-recurring expenses (1) Impact of Expleo Group s nonrecurring expenses (2) Income tax expense Other (3) Consolidated profit for the period (1) Including 8.3m in coupons on convertible bonds and 8.5m in Assystem s share of profit excluding the impact of non-recurring expenses recorded by Expleo Group for 2018 (2) Including 4.4m for the Group s share of acquisition costs (primarily related to SQS) and 10.3m in costs incurred for adapting and restructuring Expleo s operations (3) Breaking down as 1.4m in net financial expense and a 0.3m loss from discontinued operations 18

19 Movements in net (cash)/debt (In m) (23.9) Acqusitions of shares and purchased goodwill Dividends paid to Assystem shareholders Share buybacks and other movements in equity Other movements (1) Net debt at 31 Dec (43.8) Net cash at 31 Dec Free cash flow Additional investment in Expleo 19 An exceptionally high level of free cash flow for three reasons: A significant improvement in DSO in France The receipt of 3.5 million on overdue invoices in Turkey The receipt of a 7.5 million down payment on the K.A.CARE contract (although this positive cash impact will reverse in 2019) (1) Including 7.2m in tax paid on the capital gain generated on the transfer of control of GPS and 3.4m in costs paid for financial transactions carried out in 2017 (disposal of GPS, share buyback offer and acquisition of Framatome shares)

20 PART 3 OUTLOOK FOR 2019

21 Outlook for 2019 Energy & Infrastructure (E&I) Nuclear: further solid like-for-like growth In France: same upward trend as in 2018, but slower pace in view of the high basis of comparison International: growth expected to accelerate thanks to the contracts with K.A.CARE and Rosatom and the ramp-up of business with ENEC Energy Transition & Infrastructures: robust like-for-like growth Following on from its strong second-half performance in 2018 and in view of the favourable basis of comparison in H Staffing Annual revenue expected to remain stable again 21

22 2019 targets Consolidated revenue growth of c. 10% (1) Significantly stronger growth in H1 than H2 due to the 2018 bases of comparison EBITA margin at least equal to 2017 (2) Strong year-on-year rise in EBITA and EBITA margin expected in H1 Free cash flow representing more than 6% of revenue (3) for the 24-month period covering 2018 and 2019 (1) Based on the Group s scope of consolidation at 31 December 2018 (2) EBITA margin for 2017 = 6.6% of consolidated revenue (3) Excluding the impact of the first-time application of IFRS 16 as from 1 January

23

24 APPENDICES

25 2019 financial calendar 29 April: 16 May: 30 July: 9 September: 30 October: First-quarter 2019 revenue release Annual General Meeting First-half 2019 revenue release First-half 2019 results release Third-quarter 2019 revenue release 25

26 26 RELEASE Condensed consolidated income statement In millions Revenue Operating profit before non-recurring items (EBITA) (1) EBITA margin 6.6% 6.0% Share-based payment expense (0.7) (0.6) Non-recurring income and expenses (11.1) (0.3) Operating profit Share of profit/(loss) of Expleo Group (accounted for by the equity method) (2) 2.3 (6.2) Income from Expleo Group convertible bonds Net financial income/(expense) 0.1 (1.4) Income tax expense (4.8) (6.2) Profit from continuing operations Profit/(loss) from discontinued operations (0.3) (3) Consolidated profit for the period (4) (1) Operating profit before non-recurring items including share of profit of equity-accounted investees ( 0.9m in 2017 and 0.8m in 2018) (2) Including (4.4)m for the Group s share of acquisition costs (primarily related to SQS) and (10.3)m in costs incurred for adapting and restructuring Expleo s operations, making a total of (14.7)m (3) Residual costs incurred for the transfer of control of GPS (4) Including 0.5m in profit for the period attributable to non-controlling interests in 2018, with profit for the period attributable to owners of the parent therefore totalling 19.4m.

27 Condensed balance sheet at 31 December 2018 Non-current assets (1) : 106.7m o/w goodwill: 82.8m Equity 386.8m Expleo Group shares and conv. bonds 190.3m Framatome shares: 124.3m Net WCR (2) : 33.8m NC liabilities: 37.2m Net debt: 31.1m BALANCE SHEET TOTAL: 455.1m (1) Excluding Expleo Group shares and convertible bonds and Framatome shares (2) Including 22.1m in research and CICE tax credits 27

28 Assystem s ownership structure at 28 February 2019 Euronext Compartment B FR Mid-caps deferred settlement service (SRD) Indices: CAC All-Shares CAC Industrials CAC Support Services Next 150 Free float (2) 34.40% HDL Development (1) 61.34% Market capitalisation: 499m (share price: 31.85) Number of shares: 15,668,216 o/w held in treasury 667,336 Treasury shares 4.26% (1) HDL Development is a holding company controlled by Dominique Louis (Assystem's Chairman and Chief Executive Officer), notably through HDL, which itself holds 0.35% of Assystem's capital (2) Including 0.35% held by HDL 28