INVESTOR PRESENTATION

Transcription

1 INVESTOR PRESENTATION Natixis Mid Caps Conference PHILIPPE CHEVALLIER CFO & Deputy CEO 1

2 INVESTOR PRESENTATION - NATIXIS MID CAPS CONFERENCE 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 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 these 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 goals 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 ASSYSTEM IN 2017: STRATEGIC RECONFIGURATION 3

4 STRATEGIC RECONFIGURATION Strategic movements in 2017 Transfer of control of GPS New Areva NP project Creation of Assystem Technologies 60.8% owned by Ardian and 39.2% by Assystem Objectives: speed up the expansion of GPS and participate to value creation Completed: 28 September 2017 Acquisition of a 5% stake in New Areva NP Objectives: strengthen Assystem s existing partnerships with EDF and other nuclear players and capitalise on attractive investment conditions Planned completion date: Q Share buyback offer Launch of a share buyback offer Objective: allocate to the Company s shareholders a portion of the proceeds from the transfer of control of GPS AMF visa no obtained on 31 October 2017

5 STRATEGIC RECONFIGURATION Characteristics of the planned share buyback offer (1) Price per share: (2) Maximum number of shares involved: 6,000,000 representing 28.35% of the Company s outstanding shares (3) and a maximum 225m Offer period: from 24 November to 14 December (settlement-delivery on 22 December 2017) Followed by the cancellation of the shares bought back plus 550,000 shares already held in treasury HDL Development intends to tender to the offer a number of shares that would enable it to retain the same ownership interest in the Company in terms of the percentage of outstanding Assystem shares held (1) Subject to approval of the corresponding resolutions at the Extraordinary General Meeting of 22 November (2) Representing a premium of 18.3% on the closing Assystem share price at 16 October, and premiums of 14.6% and 19.2% compared with the volume-weighted average share prices as recorded over the one- and 12-month periods, respectively, preceding 17 October (3) The offer covers 27% of the total number of shares making up Assystem s capital (22,218,216 shares) and 28.35% of the Assystem shares currently outstanding (i.e. after deducting the 1,057,572 shares held in treasury). 5

6 STRATEGIC RECONFIGURATION The new Assystem 100% 5% 39% ENERGY & INFRASTRUCTURE NEW AREVA NP ASSYSTEM TECHNOLOGIES accounted for by the equity method 100% STAFFING 6

7 ASSYSTEM ENERGY & INFRASTRUCTURE: A NEW GROWTH PROFILE 7

8 ASSYSTEM E&I: A NEW GROWTH PROFILE Assystem Energy & Infrastructure at a glance Independent engineering specialist focused on: Over 50 years experience International presence Belgium France India Malaysia Morocco Nigeria Qatar Romania Russia Saudi Arabia Singapore Switzerland Turkey United Arab Emirates United Kingdom Partnering public authorities, operators and industrialists in managing and engineering their capital expenditure projects Complex projects subject to significant safety and regulatory constraints Mastering state-of-the-art engineering digital tools 58% Revenue by sector 4,000 employees 316m in revenue in % 10% 7% 4% 4% 3% NUCLEAR ENERGY BUILDING INFRA LIFE SCIENCES OIL & GAS INDUSTRY OTHER 8

9 ASSYSTEM E&I: A NEW GROWTH PROFILE A targeted strategy Nuclear the strategic cornerstone: Deep offering for nuclear engineering Strong international positioning High demand for nuclear engineering: need for maintenance, construction of new nuclear power plants, and dismantling operations Capitalise on this expertise to target high-growth sectors: Life Sciences and Transport New projects and management of existing infrastructure 9

10 ASSYSTEM E&I: A NEW GROWTH PROFILE Assystem: a vector for the digital and energy revolutions The growing demand for electricity and digitisation are major challenges for our clients in the fields of: Energy Production and transport Infrastructure Everyday life and work Mobility Assystem offers three service lines: Engineering Operating performance Safety and security By drawing on two dedicated cross-business technical supports: Project management 1 2 and Critical systems integration and maintenance 10

11 ASSYSTEM E&I: A NEW GROWTH PROFILE Our strengths ONE OF THE WORLD s TOP 5 NUCLEAR ENGINEERING FIRMS 50 YEARS EXPERIENCE IN COMMISSIONING AND MAINTAINING NUCLEAR POWER PLANTS IN FRANCE AND THE UK ETHICS, SECURITY & HSE AT THE HEART OF OUR BUSINESS GUARANTEED DELIVERY WITH SCHEDULES AND BUDGETS RESPECTED LONG-STANDING EXPERIENCE IN MANAGING COMPLEX PROJECTS AND SAFETY & CONTROL SYSTEMS IN-DEPTH KNOWLEDGE OF OUR INDUSTRIAL CLIENTS BUSINESSES TECHNOLOGICAL INDEPENDENCE Major client references: AREVA CEA EDF GSK RATP RENAULT NISSAN ROLLS ROYCE ROSATOM SANOFI SAUDI ARAMCO SAUDI ROYAL COMMISSION SNCF TOTAL 11

12 ASSYSTEM E&I: A NEW GROWTH PROFILE Our roadmap GEOGRAPHIC EXPANSION NUCLEAR Partnering EDF worldwide (India, Turkey etc.) Partnering new entrants (ENEC and EUAS in Turkey, Kacare in Saudi Arabia) Strengthen our positioning in the UK Enter the German market (decommissioning) ET&I (1) Strengthen our positions in France Roll out our offerings to Germany Grow our market share in Belgium, Switzerland and the Middle East CLIENT AND SECTOR FOCUS Broaden the services offered to existing clients (EPC, digital etc.) Develop partnerships with large international nuclear companies (Rosatom, MHI etc.) Grow our transport infrastructure business (automation & systems) And life sciences DIVERSIFYING OFFERINGS Deploy existing services (STEMA) Develop new solutions Switch from a PMC* to PMS** approach Develop new technological solutions (1) Energy Transition & Infrastructures *PMC: Project management consultancy / **PMS: Project management support 12

13 13 FINANCIAL PERFORMANCE AND OUTLOOK FOR FULL-YEAR 2017

14 INVESTOR PRESENTATION - NATIXIS MID CAPS CONFERENCE Application of IFRS 5 On 28 September 2017, Assystem transferred control of GPS to Assystem Technologies, which is 60.8% owned by Ardian and 39.2% by Assystem. In accordance with IFRS 5, GPS was therefore classified as held for sale in Assystem s financial statements for the first three quarters of The financial statements for the corresponding quarters of 2016 have been restated in order to facilitate year-on-year comparisons. All of the profit generated by GPS was recorded in Profit from discontinued operations in Assystem s consolidated income statement for the six-month period from 1 January 2017 to 30 June 2017 and it will be recorded under this same line item for the first three quarters of 2017 in the annual financial statements. Profit generated by GPS as from the date of the transfer of its control will be accounted for by the equity method in proportion to Assystem s ownership interest in Assystem Technologies. 14

15 INVESTOR PRESENTATION NATIXIS MID CAPS CONFERENCE E&I and Staffing key figures at 30 June 2017 Revenue + 7.1% EBITA % representing 5.9% of revenue (+130 bps) (5.1) (0.1) (0.5) (0.3) % 5.9% H E&I Staffing Other H1 H E&I Staffing Holding company and other H (in m and % of revenue) 15

16 INVESTOR PRESENTATION NATIXIS MID CAPS CONFERENCE Energy & Infrastructure (E&I) Key figures at 30 June 2017 Revenue (in m) EBITA (in m and % of revenue) 13.9 Nuclear % m 175.5m +11.9% (1) % Energy Transition & Infrastructures 6.3% 7.9% H H Good performances for both business sectors Strong increase in EBITA and EBITA margin (1) Total growth at constant exchange rates (breaking down as 9.2% in organic growth, a 3.3% increase due to changes in scope of consolidation and a % negative currency effect).

17 INVESTOR PRESENTATION NATIXIS MID CAPS CONFERENCE Staffing Key figures at 30 June 2017 Revenue (in m) EBITA (in m and % of revenue) Oil & Gas % 7.3 stable Industry % - 0.5m % 24.3m -17.5% H H STAFFING Lower revenue in the Oil & Gas sector but a stable performance in Industry EBITA margin in line with budget 17

18 INVESTOR PRESENTATION NATIXIS MID CAPS CONFERENCE GPS in first-half 2017 (1) Revenue (in m) EBITA (in m and % of revenue) Aerospace 178,9 M Automotive m m % (2) 24.2 Industry & Transportation 6.4% 7.2% H H Strong increase in revenue, EBITA and EBITA margin in the Aerospace and Automotive sectors (1) Classified under discontinued operations in accordance with IFRS 5 GPS became Assystem Technologies on 28 September (2) Organic growth, i.e. based on a comparable scope of consolidation and at constant exchange rates. 18

19 INVESTOR PRESENTATION NATIXIS MID CAPS CONFERENCE EBITA from continuing operations period (first-half 2017) in m ROPA consolidated profit for the (1.8) 1 2 (4.1) 3 4 EBITA Other operating income Net financial expense Income tax expense Consolidated profit for the period 4 GPS s profit Based on the Group s future configuration, profit for first-half 2017 is estimated to represent 12.5m (1) (1) With Assystem Technologies accounted for by the equity method and taking into account Assystem Technologies financing structure and the elimination of certain non-recurring tax items related to internal and external dividends. 19

20 INVESTOR PRESENTATION NATIXIS MID CAPS CONFERENCE Movements in net debt in first-half 2017 in m (15.1) Consolidated net debt at 31 Dec Net cash used in operating and investing activities (1) Net cash used in operating and investing activities (2) Dividends paid to shareholders of Assystem SA Other movements (3) Net debt of continuing operations at 30 June 2017 Continuing operations GPS (1) Including ( 1.4)m in net cash generated from operating activities and 2.8m used in investing activities. (2) Including 4.0m in net cash used in operating activities and 22.4m used in investing activities (o/w 15.8 m for acquisitions in first-half 2017 and 4.7m in payments for prior-period acquisitions). (3) GPS s net debt totalled 16.3m at 30 June 2017 and primarily related to acquisitions carried out in first-half The agreements signed with Ardian provide for this debt to be transferred to Assystem Technologies separately from the agreed enterprise value of 550m. The pro forma impact of the transfer of this net debt on the net debt of continuing operations is (16.3) million. 20

21 INVESTOR PRESENTATION NATIXIS MID CAPS CONFERENCE Revenue for the nine months ended 30 September 2017 Consolidated revenue In millions of euros 2016* 2017 Total y-on-y change Organic y-on-y change** 9 months % +4.9% Energy & Infrastructure % +8.1% Staffing % -14.0% Other Organic growth of 8.2% excluding the impact of the decrease in Staffing revenue Organic growth of 9.5% in the Nuclear sector and 6% for ET&I Assystem Technologies 9 months % 12.8% 21 Organic growth of 11.8% in the Aerospace sector (revenue of 281.8m) Organic growth of 23.9% in the Automotive sector (revenue of 174.6m) * Restated to facilitate year-on-year comparisons. ** Based on a comparable scope of consolidation and constant exchange rates.

22 INVESTOR PRESENTATION NATIXIS MID CAPS CONFERENCE Outlook for full-year 2017 (1) E&I revenue: ~ +8.0% to 8.5% (organic growth at constant exchange rates) Staffing revenue: ~ 45m Strong growth in EBITA margin Net cash: 40m (2) (1) As announced in the press release issued on 9 November 2017 (2) At 31/12/2017. Taking into account (i) an estimated 35m in net cash generated by the operating and investing activities of continuing operations in second-half 2017 (excluding the impact of any acquisitions but including 9m from the receipt of a research tax credit receivable) and (ii) the completion of the transfer of control of GPS on 28 September 2017 (generating net cash proceeds of 404m), and based on the assumption that the following will take place before 31 December 2017: the settlement-delivery for a 225m share buyback offer and a 125m investment in the capital of New Areva NP. 22

23 INVESTOR PRESENTATION NATIXIS MID CAPS CONFERENCE 2018 financial calendar 7 February: 19 March: 26 April: 16 May: 26 July: 10 September: 8 November: Press release for 2017 annual revenue Press release for 2017 annual results Presentation meeting on 20 March at 8.30 a.m. Press release for first-quarter 2018 revenue Annual General Meeting Press release for first-half 2018 revenue Press release for first-half 2018 results Presentation meeting on 11 September at 8.30 a.m. Press release for third-quarter 2018 revenue 23

24 24 APPENDIX

25 Assystem s ownership structure at 31 October 2017 Euronext Paris Compartment B FR Mid-caps deferred settlement service (SRD) Indices: CAC All-Shares CAC Industrials CAC Support Services Next 150 HDL Development Free float 34.64% Treasury shares 60.60% (1) 4.76% Market capitalisation: 738m (share price: 33.21) Number of shares: 22,218,216 O/w treasury shares: 1,057,572 % of shares (1) Of which 0.23% held by HDL 25