2014 ANNUAL RESULTS. DOMINIQUE LOUIS Chairman and Chief Executive Officer PHILIPPE CHEVALLIER Chief Financial Officer

Transcription

1 2014 ANNUAL RESULTS DOMINIQUE LOUIS Chairman and Chief Executive Officer PHILIPPE CHEVALLIER Chief Financial Officer 11 MARCH 2015

2 OVERVIEW PART Highlights PART 2 Results and Cash Flow PART 3 Strategy & 2015 Outlook APPENDICES 20

3 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, level 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 achievementswill be consistent with those statements. The abovementioned 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 relationshipsinitsmajorbusinesssegments; 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 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. *Full year 2014 figures reflect the first time adoption of IFRS 11 Joint Arrangements. MPH Yemen, Engage and n.triple.a are now accounted for under the equity method. For purposes of comparison, the 2013 data presented in this document have been restated to reflect the impact of this change in accounting method. 3

4 PART HIGHLIGHTS

5 2014 HIGHLIGHTS Significant transactions to implementmedium term growth strategy Public offer: control and sustainability Breakdown of capital as of 31 December 2014 Free Float** 37.41% Treasury shares 1.75% HDL Development* 60.84% HDL Development* strengthens its position as the key shareholder to support Assystem s strategy sustainability Strengthened financial resources A 160 million ODIRNANE issue in July coupled with the buyback of two thirds of the 2017 ORNANE At 31 December 2014, net cash stood at million 5 *HDL Development is a holding company controlled by Dominique Louis, Founder Chairman of Assystem, notably through HDL (which holds an 0.13% stake in Assystem). ** Including 0.13% held by HDL.

6 2014 HIGHLIGHTS Energy & Infrastructure: a bridgehead established in the Middle East, a high potential region ACQUISITION OF RADICON GULF CONSULT First acquisition in the Middle East Total becomes one of the Top 10 customers Radicon: 400 people 2014 revenue: 23m First Radicon/Assystem joint contract A centre of expertise in infrastructure design A base for expansion within the Saudi market A regional platform in the Gulf Energy & Infrastructure headquartered in Dubai (UAE) 6

7 2014 OPERATING HIGHLIGHTS Outsourced R&D: Global Product Solutions steps forward Extended partnership with Airbus Group Partners for over 20 years E2S* preferred supplier status renewed ME3S** preferred manufacturer status awarded, supporting the ramp up of manufacturing and supply chain operations Automotive: a return to growth Enhanced expertise in high potential technologies (e.g. embedded electronics) Development of the Romanian Engineering Centre, with 200 people more hired in *Engineering Services Supplier/**Manufacturing Engineering Services Strategic Supplier

8 PART 2 RESULTS AND CASH FLOW

9 RESULTS AND CASH FLOW 2014 key figures Revenue stable Growth at comparable perimeter: +0.2% Satisfactory growth in France: +2.4% Mixed performances internationally, impacted by Germany and the refocusing of staffing activities: 3.2% Results Operating profit before non recurring items (EBITA): 51.8 million EBITA margin: 6.0% Attributable net profit: 21.8 million Solid financial position Significantly higher free cash flow: 31.2 million versus 22.1 million in 2013 Net cash and cash equivalents: million Dividend Dividend of 0.75 per share to be proposed to shareholders at the Annual General Meeting on 22 May

10 RESULTS AND CASH FLOW Stable revenue 2014 revenue: million In m, with organic growth in % Breakdown of international revenue UK 33% Germany 34% France: 62% International: 38% Asia Middle East Africa 24% Other 9% Satisfactory growth in France Good performance in the United Kingdom, Belgium, Canada and the United States 6% contraction in Germany 7% decline in Asia Middle East Africa reflecting measures to refocus staffing activities 10

11 RESULTS AND CASH FLOW Resilient performance in strategic sectors Revenue by business 41% ENERGY & INFRASTRUCTURE (E&I) 354.9m 1.2% Satisfactory growth in Nuclear related to major ongoing projects (EPRs, ITER, Cigeo, EDF nuclear rehabilitation programme, Sellafield, etc.) Staffing activities refocused in H2 59% GLOBAL PRODUCT SOLUTIONS (GPS) In Aerospace, production and product life cycle operations are taking over from new aircraft and engine design operations 511.7m +1.2% Automotive growth accelerated during the year Integrated France Romania business model proved successful with Renault/Dacia 11

12 RESULTS AND CASH FLOW Evolution of the operating profit before non recurring items (EBITA) In m and as a % of revenue % (1.6) 1 (6.8) % ENERGY & INFRASTRUCTURE: 20.5 million Margin: 5.8% GLOBAL PRODUCT SOLUTIONS: 31.3 million Margin: 6.1% 2013 EBITA 2014 EBITA 1 ENERGY & INFRASTRUCTURE 2 Temporary decrease due to start up and development costs for the Group s operations in the Middle East and the effects of MPH's ongoing refocusing measures GLOBAL PRODUCT SOLUTIONS (GPS) Impact of Germany and the reduction in France's R&D tax credit 12

13 RESULTS AND CASH FLOW Net profit: targeted restructuring measures From EBITA to net profit In m 51.8 (11.6) 1 (3.6) 2 (5.6) 3 (9.2) 21.8 (1) EBITA 1 RESTRUCTURING COSTS 2 Reduction in operational staff and overheads in Germany ( 5.6 million) M&A, stock grant plans and other nonrecurring items 3 Financial result Targeted adjustment measures elsewhere in the Group 4 Income tax and others 13 (1) Basic earnings per share of 1.05

14 RESULTS AND CASH FLOW From net debt to net cash In m (9.7) NET CASH NET DEBT (1) 31.2 (10.0) 26.5 Free Dividends Change in Share issue Interest expense (5.9) cash flow treasury stock and issue of and other (2) equity financial costs instruments (3) 31 Dec Dec (1) Net debt restated for the impact of IFRS 11 ( 3.6 million prior to restatement). (2) Including proceeds from the sale of treasury shares tendered to the takeover bid led by HDL Development in H ( 33 million). (3) Including ODIRNANE issue in July 2014 ( million net of expenses ) and the 31.4 million capital increase following the exercise of warrants (BSAARs) in May

15 RESULTS AND CASH FLOW Free cash flow up 41% Free cash flow analysis In m +41% 61.6 (4.1) (8.3) (12.6) (5.4) EBITDA (1) Change in operating WCR (2) Capex Income tax paid Other movements 15 (1) EBITDA = EBITA + net depreciation and amortisation expense + net provisions for risks and charges related to the activity. (2) Excluding changes in operating WCR related to restructuring costs (included in other movements).

16 PART 3 STRATEGY & 2015 OUTLOOK

17 STRATEGY & 2015 OUTLOOK Effectiveness of the business strategy confirmed Good medium term visibility in Energy & Infrastructure Capitalising on nuclear industry expertise Developing established positioning in the Middle East Further developments in Global Product Solutions Continuing to adapt to new aerospace industry challenges Speeding up the deployment of a competitive Automotive offering, beyond the existing customer base 17

18 STRATEGY & 2015 OUTLOOK 2015 outlook Organic growth in existing business Consolidation of Radicon from January 2015 Very strong embedded growth Vibrant infrastructure markets in Saudi Arabia In an uncertain economic environment, the objective is to improve EBITA margin 18

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20 APPENDICES

21 APPENDICES Consolidated income statement In m 2013 restated* 2014 Revenue Operating profit before non recurring items (EBITA) EBITA margin 7.0% 6.0% Operating profit Operating margin 6.1% 4.2% Share of profit (loss) of associates 0.2 (0.5) Finance costs (13.4) (5.6) Income tax expense (12.8) (8.6) Discontinued operations Consolidated net profit Attributable net profit Attributable net profit excluding change in fair value of the ORNANE derivative (1) Basic earnings per share (1)The change in fair value of the ORNANE derivative represented income of 1.3 million in 2014, or 0.8 million net of tax. In 2013, the change in fair value led to the recognition of an expense of 1.3 million, or 0.8 million net of tax. * Restated for the impact of IFRS 11

22 APPENDICES Cash flow statement In m 2013* 2014 Cash flow from operations Change in WCR (15.9) (2.0) Income tax (17.1) (12.6) Net cash from discontinued operations Net cash generated from operating activities Net operating investments (10.4) (8.3) Net financial investments 0.3 (1.3) Net cash used in investing activities (10.1) (9.6) Financing transactions 9.1 (117.1) Equity transactions (26.2) Dividends paid (8.2) (10.0) Net cash provided by financing activities (25.3) 89.2 Change in net cash and cash equivalents (2.7) *Restated for the impact of IFRS 11

23 APPENDICES Summary balance sheet At 31 December 2013* 2014 Non current assets 163.3m o/w goodwill: 119.7m Equity 195.8m Non current assets 171.3m o/w goodwill: 124.5m Equity 424.3m Net WCR**: 59.7m incl. convertible hybrid bonds: 158.4m Net WCR**: 63.7m Current assets (cash and cash equivalents) 86.4m NC liabilities: 25.3m LT borrowings 92.3m Current assets (cash and cash equivalents) 248.5m NC liabilities: 28.6m LT borrowings: 26.6m TOTAL ASSETS 313.4m Net debt: (5.9)m* TOTAL ASSETS 479.5m Net cash: million *Restated for the impact of IFRS 11 ** Net Working Capital Requirements

24 APPENDICES Financial instruments giving access to share capital ODIRNANE Issue of a senior ODIRNANE bond for 160m in July 2014 FEATURES OF THE ODIRNANE ISIN FR Total amount of the issue 160m Issue date 9 July 2014 Maturity Perpetual Number of bonds issued 5,602,240 Unit issue price (30% premium)** Coupon (fixed until 16 July 2021) 4.5% *Unsecured net share settled bonds with an indefinite term convertible into new shares and/or exchangeable for existing shares (ODIRNANE) **Reference price of FEATURES Perpetual convertible hybrid bond issue with a fixed coupon of 4.50% (until 16 July 2021) As of 17 July 2021, and if the company does not repurchase the bonds prior to that date, the annual coupon becomes variable (6 month Euribor +800bps) Option for Assystem to suspend interest payments The features of the ODIRNANE (hybrid and with a coupon that can be suspended under certain conditions) allow it to be classified under accounting terms as equity The feature of the Odirnane gives Assystem the capacity to limit the number of shares to be issued if they are converted, as the issuer can reimburse the nominal amount in cash

25 APPENDICES Financial instruments giving access to share capital ORNANE Potential dilution and accounting FEATURES OF THE ORNANE ISIN FR Total amount of the issue 92 million Issue Date 06 July 2011 Maturity (final reimbursement) 01 Jan Number of bonds issued 4,181, 818 Number of bonds at 31 December ,234,858 Unit issue price 22 (Premium 27.43%) Coupon 4% IFRS value of ORNANE s debt at 31 Dec including mark to market value of the equity component (derivative) 26.3 million 0.7 million Debt with two components (IFRS) Bond component: recognized as a liability at amortized cost Equity component (derivative): recognized as a liability in mark tomarket, unlike an Océane for which it would be recognized in equity at its initial value Impacts on the income statement Bond component: coupon and amortized cost Equity component (derivative) Change in fair value recognized on a separate line in the financial result Impact on earnings without cash effect in the opposite direction of the share price The feature of the Odirnane gives Assystem the capacity to limit the number of shares to be issued if they are converted, as the issuer can reimburse the nominal amount in cash

26 APPENDICES Financial instruments giving access to share capital BSAAR 2015 At 31 December 2014 ISIN Number of share warrants issued FR ,250,000 Number of shares per warrant 1 Exercise price Starting date of mandatory exercise/redemption period 9 July 13 Trigger price for mandatory exercise/redemption Maturity date 9 July 15 Number of warrants at 31 December ,698 Quote at 31 December Potential dilution from other instruments: 92,550 rights to free shares or performance shares at 31 Dec