Gfi Informatique. H results 05/08/2015. H results 1

Transcription

1 Gfi Informatique 1

2 Agenda I. H performance II. Detailed financial results III. Outlook IV. Conclusion 2

3 Agenda I. H performance Vincent Rouaix, Chairman and Chief Executive Officer 3

4 Highlights Strong growth in France Strong international growth Acceleration in Q2 Sharp rise in profitability Confirmed recovery internationally H2 in line with expectations Major commercial successes Conversion of the OCEANE bonds Acquisition of Ordirope 4

5 Key figures Revenue Operating margin reported like-for-like H H France 374m +13.1% +5.9% 18.5m 4.9% 18.4m 5.6% Group 437m +13.0% +6.5% 20.8m 4.8% 19.5m 5.0% 5

6 France: strong growth and marked seasonal effect Gfi organic growth Financial data (France) 5.9% 3.5% 2.7% 3.2% 1.8% H Comments 13.1% total growth in H in France, of which 5.9% like-for-like. Acceleration in Q2, with organic growth of 7.5%, once again reflecting the group s strong momentum in the last four years Revenue & overall growth Operating margin (3.0%) 6.1% 10.0% 15.6% % % H Revenue ( m) Total growth 5.5% 5.8% 6.3% 6.7% 5.6% 7.0% % H H Op.margin ( m) Op.margin (%) Performance fuelled by market share gains, particularly in Infrastructure Services, Banking- Finance-Insurance and Telecoms Acquisitions had a leverage effect, with strong development based on the assets taken over (ITN, Airial, etc.) The operating margin declined as a % in H1 (- 90bp y-o-y), in line with the budget, with a strong seasonal effect, particularly in Software. Catch-up expected in H2, driven by continued strong growth, the recovery in the workforce activity rate and the seasonal effect of Software sales 6

7 France: KPIs (Services) still buoyant Average daily rate - Good performance Stable versus H Change in mix (+) Industrialisation (-) Jan Feb March April May June July August Sep Oct Nov Dec Workforce activity rate - Slight improvement +30bp versus H Better trend in Q2 733 new hires in H1 Jan Feb March April May June July August Sep Oct Nov Dec % turnover (+0.8pt) 7

8 Growth and margins accelerating internationally Confirmed turnaround for activities outside France Org. change y-o-y 12.3% 1.5% 1.1% 1.3% 0.4% 0.6% 2.1% 4.5% 1.0% 6.1% 2.4% 7.6% (0.8%) (0.4%) (3.3%) (5.6%) (8.4%) (12.0%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q Op. margin in and as a % ,8% 5,5% 3,5% 4,9% Strong organic growth of +10% in H1 (+12.4% on a reported basis) of which +12.3% in Q2. Spain drove performance, up 21%, followed by Morocco, up 18.2%. Portugal moved back into positive territory in Q2. BeLux still weak. Sharp improvement of KPIs and profitability outside France (op. margin more than doubled compared with H1 2014) 0,8% 0.5 H1-11 H2-11 H1-12 H2-12 H1-13 H2-13 H1-14 H2-14 H1-15 Op.margin ( m) Op.margin (%) 4,1% 1.1 1,9% 5,0% 3,8% 8

9 Continued growth through acquisitions Strategic acquisition in Software with the acquisition of Ordirope Continuation of strategy of strengthening the 4 strategic vertical markets Track record of acquisitions since Company BUS BSS JDE Date Feb-11 Jul-12 Oct-12 Oct-12 Sep-13 Oct-13 Feb-14 May-14 May-14 Sep-14 Jun-15 Revenues (in million) FTE c.500 c c.350 c.110 c Strategic rationale Sectors/ Key figures Specialisation Market share Recurring revenue Added value Public Sector TMA ) Public Sector Software SIG Thales, Airbus Group, BNP Consulting, TMA, PLM Finance BI, Testing MoA Finance Consulting Telecoms BSS Digital Public Sector, Finance, Telecoms TMA, Testing, IPs Insurance Software Upper midmarket Oracle JDE Integration C er Goods Software 9

10 New structurally important Software acquisition Publisher of business ERP solutions for mass-market retailing and specialised channels Best-of-breed to be promoted across Gfi s footprint Revenue > 10m, of which Maintenance revenue > 3m Profitability to match group standards by 2016 Sectors Clients QUOJEM HEALTH AND SECURITY 10

11 Product range built around 4 vertical markets Steering and productivity Portals Mobility CRM BI Decision making GIS Mapping Paper-free processing Access security Outsourcing Business Solutions Mass billing - Authorities Social Work Mother and child care School transport Land law Sanitation Burial grounds Elections Public libraries Patient files Medication circuit Clinical trials Biological samples Mother and child care Insurance ERP (ITN) Bank Front Office SepaMail Asset Management Consumer goods ERP (Ordirope) Housing Action Seed producers Transport and logistics Operators of collective services Resources management Finance Subsidies Heritage Local taxation HR and Payroll Occupational risks Proceedings - mail Finance Heritage HR and Payroll Occupational risks Heritage Occupational risks Public Sector Time and Activities ( 19.9m) Retailing Services Insurance Finance Asset Management Healthcare/ Social 53% 21% 20% 5% 11

12 Agenda II. Detailed financial results Cyril Malher, Chief Financial Officer 12

13 Strong growth and further improvement in results Summary income statement (in million) restated (1) Revenue EBITDA % 6.0% Net amortisation and provisions Operating margin Depreciation of allocated assets (0.8) (0.9) Goodwill depreciation - - Other operating income and expenses (7.1) (8.9) Operating income Financial result (3.4) (3.7) Income tax (6.4) (4.8) Net profit (Group share) EPS (Group share, in ) Total growth: 13.0% Organic growth: 6.5% Stable EBITDA in % Sharp decline (-20%) in other operating expenses Net profit: +167% Correlation between EBITDA and operating margin (1) restated for the impact of applying IFRIC 21 The first half, with the improvement in operating profit, demonstrates the Group s ability to improve its net profit. 13

14 Good profitability given seasonal factors Financial data (in million) France International Spain Portugal BeLux Switzerland Morocco and Africa Revenue Operating margin Operating margin % 4.8% 4.9% 3.6% 4.5% 3.7% 0.6% -6.1% 7.0% (in million) France International Spain Portugal BeLux Switzerland Morocco restated and Africa Revenue Operating margin Operating margin % 5.0% 5.6% 1.9% 0.2% 0.4% 6.1% -7.0% 10.0% Comments In France: half-year growth of 13.1%, of which 5.9% like-for-like, with an acceleration in Q2 (14.6% and 7.5%). Strong licence revenue expected in H2. A half-year of investments in IP 20. Internationally: higher profitability (doubled) against a backdrop of renewed organic growth Spain: half-year growth of 22.6%, driven by outsourcing and banking sector. Strong improvement explained by well-reined in costs and leverage effect Portugal: stable revenue, but budding recovery to be confirmed in H2 with a constant improvement in profitability underpinned by the Offshore business BeLux: difficult half-year with contracts coming to an end, affecting activity rate. Strong recovery expected in H2. 14

15 Growth in net profit Income statement (in million) restated (1) Revenue Operating margin Operating margin % 4.8% 5.0% Depreciation of allocated assets (0.8) (0.9) Restructuring (4.8) (5.8) Gains (losses) on disposals and liquidations Goodwill depreciation - - Other operating income and expenses (2.4) (3.1) Operating income Cash and cash equivalents Cost of gross financial debt (3.3) (3.1) Cost of net financial debt (3.3) (3.0) Other financial expenses and income (0.2) (0.7) Income tax (6.4) (4.8) Consolidated net income of which Group share of which minority interests - - EPS (Group share, in ) Diluted EPS (in ) (1) restated for the impact of applying IFRIC Restructuring: Decrease of 1m in France Decline expected at year-end (at constant scope) Other non-current operating expenses: Acquisition, relocation and AGM costs 1.5m of tax risk Financial expenses: - 0.4m of spot charges related to repayment of 2012 syndicated loan Taxation: - 4.8m of CVAE (contribution for enterprise added value) - 1.6m of income tax (vs m in 15 H1 2014)

16 Statement of comprehensive income: consolidated equity gearing 16% Summary statement of comprehensive income (in million) restated (2) restated (1) Goodwill Fixed assets Other non-current and current assets Cash Total assets Shareholders equity (group share) Shareholders' equity (minority interests) Bond pending conversion Debt (current and non-current) Non-current and current liabilities Financial liabilities and current provisions Total liabilities (1) restated for the impact of applying IFRIC 21 (2) restated for the impact of converting the OCEANE bonds Increase in goodwill: Essentially acquisition of Ordirope Ongoing negotiation of new financing Net debt Gearing 16% 43% 32% WCR (excluding tax payables and receivables) Change in shareholders equity (in million) Group NCI Total result Total profit/loss recognised in shareholders' equity Dividends paid (5.4) - (5.4) Securities of consolidating company (0.6) - (0.6) Capital increase Valuation of share-based payments Changes in scope Changes in translation reserve Conversion of the OCEANE bonds restated for conversion impacts

17 Cash flow Consolidated cash flow statement (in million) restated (1) Cash flow Tax paid (6.0) (5.4) Changes in WCR (except payment of VAT litigation) (15.9) (16.8) Payment in respect of VAT litigation (1.9) - Net cash from operating activities (3.5) (6.3) Net cash from off-scope investments (9.3) (5.9) Cash linked to scope transactions: other (4.1) (14.6) Cash from investing activities (13.4) (20.5) Treasury shares (0.6) (1.5) New borrowings Repayment of borrowings (21.6) (4.8) Interest paid (0.8) (1.0) Factoring and other Net cash from financing activities (0.2) 29.4 Exchange rate impact Changes in cash and cash equivalents (17.1) 2.5 '(1) restated for IFRIC 21 Cash flow: +28% Well-controlled consumption of WCR CAPEX of which - 1m related to relocation Software investments Transactions affecting scope: - 3.6m related to transactions over the period M related to transactions in Y-1 Dividends: paid in early July Bridge loan covering the former syndicated loan 17

18 Agenda III. Outlook Vincent Rouaix, Chairman and Chief Executive Officer 18

19 Outlook Confirmed trajectory 2015: growth in Group s revenue and operating margin Growth factors Major projects won in outsourcing, positioning in significant new opportunities Strong growth in specialised offers (Telecoms, Finance, Insurance, etc.) Acceleration of Software expected in H2 Business synergies from recent acquisitions (notably ITN and Ordirope) Gfi solutions deployed internationally Continuation of the ambitious but targeted M&A strategy, underpinned by strengthened balance sheet structure Good Group sales momentum in France 12-month rolling B-to-B: 1.13 Weighted pipeline: + 60% y-o-y Backlog in 2015: +25% y-o-y Continued recovery in southern Europe Profitability Growth in Group s profitability More pronounced seasonal effect in H1/H2 given the calendar effect, the business pipeline and the environment, particularly in the Public Sector 19

20 Outlook High-profile contract underscoring the Group s transformation GFI has been selected by the CNES (the French space agency) for a four-tosix-year period for the global facilities management and transformation of its infrastructure and applications: user support, maintenance in operational condition, supervision, operation, integration into production of new services. IT Process Outsourcing Information Systems Outsourcing Business Solutions Outsourcing Wider scope Transformation Ultimately, more than 140 people, spread over the Gfi sites in Toulouse, Nantes and Paris, will operate the CNES s IT production. Gfi Informatique is thus accelerating its growth in facilities management and outsourcing by developing approaches combining on-the-spot presence, industrialisation and innovation. The Group s organic growth has topped 10% per year in the last three years and we are improving our profitability on a continuous basis, building on our offers, critical size and partners. Flexible outsourcing Shared governance Proximity Gfi, the partner of choice for French key accounts in their outsourcing programmes FY 2014 results Gfi Informatique February 2015 OSS 20

21 Agenda IV. Conclusion Vincent Rouaix, Chairman and Chief Executive Officer 21

22 Conclusion A structure conducive to implementing our strategy Enhanced ability for transformation Stronger balance sheet structure Conversion of the OCEANE bonds at 27/07/2015 Continued stable and committed ownership structure Net gearing restated for the conversion of the OCEANE bonds at 16% at end- June 2015 Gives Gfi the means to accelerate its transformation Places the Group in a favourable position for the sector consolidation SHAREHOLDER STRUCTURE AFTER CONVERSION OF THE OCEANE BONDS Apax Partners France Itefin Stake Market trading statistics Price ( ) July 29th 6,30 LTM High 7,00 LTM b o Low s a es post Ocea e 4,52 conversion 66,0 Equity value ( m) 415,8 Net debt post conversion 41,9 Enterprise value 457,7 c. 95% 100% Infofin Stake 26% 16% 38% Consortium Gfi Informatique Boussard & Gavaudan (3) Other (2) 20% 22

23 Conclusion Continuation of the strategic plan 1 Services We have a mature positioning in our traditional slower growth markets, allowing for a strategy of improvement via client concentration (Top 35), a search for efficiency via continued industrialisation and the development of growth offers (Digital, Big Data, Cloud, Outsourcing, etc.) Solutions 2 Acceleration by distributing our software solutions in all our footprint markets, driving innovation (IP 20), and developing systems integration in the Upper Mid Market segment 3 International Continue the expansion strategy in the existing footprint and in growth markets like Africa, already initiated in Morocco, recognised as development factors for our Solutions and Services offer 4 M&A Services - Tactical sector consolidation approach / Client / Technology Solutions - Strategic approach consisting in expanding our product portfolio and strengthening our vertical markets. Search for business solutions, a leverage factor for integration services and a development factor in our footprint markets 23

24 Conclusion At the heart of Phase II of our strategic plan Build a hybrid Services/Software IT services company with high margins and a leader in Europe Experienced management, with a convincing track record in terms of: Transformation Acquisition and Integration 6 International Account management 1 Development Strong foundations, characterised by: Medium-term objectives Revenue > 1.0bn OM > 8% Innovation 2 Robust like-for-like growth 5 Acquisitions Dominant local competitive positions, both in Services and in Software 4 Industrialisation Added value 3 24

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