2013 First-half results
Simon Azoulay Chairman and Chief Executive Officer
Bruno Benoliel D Deputy t Chief Chi f Executive E ti Officer Offi Paris, 25 September 2013
CONTENTS
ALTEN, European leader in Technology Consulting and Engineering (TCE) 2013 First-half results Outlook and strategy
Paris, 25 September 2013 l First-half results 2013
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ALTEN ALTEN. European leader in T h l Technology Consulting C lti and d Engineering g ee g ((TCE) C )
Paris, 25 September 2013 l First-half results 2013
ALTEN, EUROPEAN LEADER IN TECHNOLOGY CONSULTING AND ENGINEERING (TCE) REVENUE 30 June 2013
613.8 â‚Źm
Based in16 countries
62% France, 38% International
15.790 employees
88% engineers
Operating Profit on Activity
8.8% of revenue
Gearing
-11%
Paris, 25 September 2013 l First-half results 2013
+ 2.5%
4
13 890 ENGINEERS SPREAD OVER 16 COUNTRIES ALMOST 40% OUTSIDE FRANCE Canada USA
Sweden
130
850
UK
100
Netherlands
380 Belgium
240
Germany
1 150 1 150
1 200
India
100
730
30 Italy
450 Spain
40
Poland
France
7 940
China
Russia
Romania
250 Africa & Middle‐East
300
Paris, 25 September 2013 l First-half results 2013
ALTEN’S TWO BUSINESS LINES: TCE AND NTIS
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SERVICES PROVIDED Alten’s p projects j are p positioned mainly y upstream p ‌
And also provides industrial process advice and customer support to clients Paris, 25 September 2013 l First-half results 2013
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OPERATIONAL ORGANIZATION
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REVENUE BREAKDOWN BY SECTOR (%)
H1 2013
H1 2012 Aerospace
16.4%
Aerospace 19.4% 16.4%
/ Rail/Naval
4.8%
7.0%
4.2%
598.7 Mâ‚Ź Energy/LS
17.2%
Telecoms
13.5%
Other industries Tertiary/Finance
Rail/Naval 4.6%
Automotive
Defence
Multimedia/ Electronic
Automotive 14.1%
3.9%
16.6%
Defence 5.9% Multimedia/ Electronic 6.1%
613 8 Mâ‚Ź 613.8 Energy/LS 19.7% %
Telecoms 12.4% Tertiary/Finance T ti /Fi 14.3%
Other industries 3.5%
Well balanced revenues re en es across sectors Paris, 25 September 2013 l First-half results 2013
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AUTOMOTIVE – RAIL – NAVAL
Automotive (-16%) A sharp decline in revenue with the French manufacturers, stable revenue in Sweden, sustained growth in Germany. A lower number of projects with all European equipment manufacturers (OEMs).
Rail – Naval (+10%) Growth mostly in the French markets.
18.7% of revenue
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AERONAUTICS - SPACE - DEFENCE - SECURITY
Aeronautics – Space (+20%) Alt Alten b benefits fit from f Tier Ti One O E2S referencing f i for f 2012-2016. N New projects Eurocopter j t with ith Airbus Ai b / E t / Dassault D lt / Safran / Thalès in France and internationally. Development of cross-border projects.
Defence – Security (+30%) Firm growth with Safran / Thalès / EADS.
25.3% of revenue
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ENERGY AND LIFE SCIENCES
Energy and Life Sciences (+17%) Strong growth in Oil & Gas (+19%). New projects in Nuclear (+27%), (+27%) Chemicals and Pharmaceuticals.
19.7% of revenue
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TELECOM – MULTIMEDIA – ELECTRONIC
Telecom (-6%) A slight li ht increase i with ith the th French F h and d international i t ti l operators. A significant reduction in the number of projects with the equipment manufacturers and infrastructure suppliers (Ericsson / Alcatel / Motorola…).
Multimedia – Electronic (-10%) D Declining li i revenues, mostly tl iin semiconductors i d t and d mass-market electronics.
18.5% of revenue
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FINANCE – TERTIARY
Finance – Tertiary (-12%) Clients streamlined their procurement; ALTEN saw its existing referencing renewed and won new ones. Development of the workpackage offer. Banking g and insurance declined in Europe p (-12%). A sharp drop in the number of public-sector (-20%) projects in Spain (-20%).
14.3% of revenue
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EXTERNAL GROWTH
Alten finalised the following at the beginning of July 2013: - a technical consulting company based in Belgium (2012 revenue: â‚Ź13m - 115 engineers) - a Life Science company based in Belgium and France ((2012 revenue: â‚Ź3.2m - 30 consultants))
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SHAREHOLDING AS AT 30 JUNE 2013
% of shares FCPE Alten Alt 0.87%
Public P bli 72.98%
FFounder d + Holding H ldi C Co. 24.68% % of voting rights
Treasury stock 1.47%
Founder + Holding Co. Mutual Funds Public
Paris, 25 September 2013 l First-half results 2013
36.46% 0.75% 62 79% 62.79%
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2013 Half-year results
The limited examination of the half-year financial statements was performed by our auditors. The limited examination report will be published after the required half-year half year financial report publication proceedings.
REVENUE TREND STEADY INCREASE FROM INTERNATIONAL BUSINESS €m
+12.8%
700
+17.7%
600
500
400
+2 5% +2.5% 598,7
613,8
36%
38%
530,9 450,9
32 4% 32.4%
International
31% France
300
200
69%
67.6%
64%
62%
H1 2011
H1 2012
H1 2013
100
0
H1 2010
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ORGANIC GROWTH (on a constant basis) +1.6%
€ €m
598.7
600
500
608.3
2.3 fewer working days than in 2012
+2.4%
+0.9%
400
300
306.6
309.3
292.1
299.0
200
100
0
Q1 2012 Q1 2013
Q2 2012 Q2 2013
Paris, 25 September 2013 l First-half results 2013
S1 H12012 2010 S1 H1 2013 2013 19
CONSOLIDATED REVENUE BY COUNTRY (â‚Źm) Countries
June 2012
% Group
June 2013
% Group
% change
of which organic organic, excl. exchange rates effect
Germany
42.7
7.1 %
54.5
8.9 %
27.5 %
23.1%
Sweden
57.2
9.6 %
53.7
8.7 %
-6.1 %
-9.8%
Spain
35.4
5.9 %
30.1
4.9 %
-14.9 %
-14.9%
U it d Kingdom United d
20 9 20.9
35% 3.5
23 0 23.0
37% 3.7
10 1 % 10.1
10 3% 10.3%
Netherlands
17.1
2.9 %
16.6
2.7 %
-2.3 %
-2.3%
Belgium
16.5
2.8 %
16.4
2.6 %
-0.7 %
-0.7%
Italy
14.5
2.4 %
16.2
2.6 %
11.8 %
11.8%
USA
10.3
1.7 %
12.0
2.0 %
16.3 %
17.8%
1.2
0.2 %
9.7
1.6 %
International
215.8
36.0 %
232.2
37.8 %
7.6 %
5.0%
France
382.9
64.0 %
381.6
62.2 %
- 0.3 %
-0.3%
TOTAL
598.7
100%
613.8
100%
2.5 %
1.61%
Others
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CONDENSED INCOME STATEMENT H1 2012
H1 2013
% change
598.7
613.8
+ 2.5 %
Operating Profit on Activity As % of sales revenue
59.0
53.8
- 8.8 %
Payment in shares
- 0.2
-
-
Operating Profit before Exceptionals
58.8
53.8
- 8.5 %
-1.5 -
0.2 -
57.3
54.0
â‚Źm Revenue
Non-recurrent profit Disposal of assets Amortisation of Goodwill Operating Profit A % off sales As l revenue
9 9% 9.9%
9.6%
8 8% 8.8%
8.8%
Net cost of financial debt Cost on debt present value and fin. asset
-0.1 -
-0.7 -
Net financial Income
-0 1 -0.1
-0 7 -0.7
Corporate income tax Profit of associated companies (equity method) & Minority interests
-19.2 0.7
-18.0 0.9
38 7 38.7
36 2 36.2
Net Profit group share As % of revenue
Paris. September 25 2013 l First-half results 2013
6.5%
-5.8 %
-6.5 65%
5.9%
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CONDENSED INCOME STATEMENT BY GEOGRAPHY € €m
H1 2012 France
H1 2012 Internat.
H1 2012 Group
H1 2013 France
H1 2013 Internat.
H1 2013 Group
382.9
215.8
598.7
381.6
232.2
613.8
32.1
8.4%
26.9 12.5%
59.0
9.9%
29.0 7.6 %
24.8 10.7 %
53.8 53 8
8.8 %
Stock-options cost
-0.2
-
-0.2
-
-
-
Operating Profit before Exceptionals
31.9
26.9
58.8
29.0
24.8
53.8
Non-recurring profit/loss Disposal of assets Goodwill impairment test
-0.4 -
-1.1 -
-1.5 -
0.3
-0.1
0.2
Operating Profit As % of revenue
31 5 31.5
25 8 25.8
7.7 %
10.6%
8.8 %
Revenue Operational p Profit on Activity y As % of revenue
29 3 29.3
24 7 24.7
54 0 54.0
8.2%
12.0%
57.3 57 3 9.6%
Net debt income/loss Cost on debt present value and Fin. asset
-0.1 -
-
-0.1 -
-0.9 -
0.2 -
-0.7 -
Net Financial Income
-0.1
-
-0.1
-0.9
0.2
-0.7
-12.0 0.7
-7.2 -
-19.2 0.7
-11.0 0.9
-7.0 -
-18.0 0.9
17 9 17.9
36.2
Corporate income tax Profit of associated companies & Minority interests Nett Profit N P fit Group G share h As % of revenue
20 1 20.1
5.3%
Paris. September 25 2013 l First-half results 2013
18 6 18.6
8.6%
38 7 38.7
6.5%
18 3 18.3
4.8 %
7.7 %
5.9 %
22
CONDENSED BALANCE SHEET Dec 2012 Dec.
June 2013 (Net)
447.2
456.7
05 0.5
10 1.0
Contingency & loss provisions
12.7
13.5
N Non-current t financial fi i l liabilities li biliti
15 1.5
05 0.5
Other non-current liabilities
5.7
4.9
19.9
18.9
300.6
303.6
7.9
27.2
776.1
807.3
Dec 2012 Dec.
June 2013
200.6
199.7
Oth intangible Other i t ibl assets t
10 1 10.1
95 9.5
Tangible fixed assets
14.1
15.8
N Non-current t financial fi i l assets t
31 5 31.5
33 7 33.7
9.9
7.7
NON-CURRENT ASSETS
266.2
266.4
NON-CURRENT LIABILITIES
CURRENT ASSETS
443.4
462.8
CURRENT LIABILITIES
66.5
78.1
776.1
807.3
ASSETS (€m) Goodwill
Tax assets
CASH
BALANCE-SHEET BALANCE SHEET TOTAL
(Net)
Paris. September 25 2013 l First-half results 2013
(Net)
LIABILITIES (€m) SHAREHOLDERS’ EQUITY Mi Minority it iinterest t t
FINANCIAL LIABILITIES
BALANCE-SHEET BALANCE SHEET TOTAL
(Net)
23
CASH FLOWS 2012-2013 56 9 56.9
120
-23.0 23 0
110 100
-7.3 -7.0
90
-32.3
80 70 60
58.4
92 3 92,3 85
4.9
78
50.6
50 58,4 40
45,7
45,7
30 Net cash 31/12/2012
Cash flow generated from earnings
Tax paid
Change in WCR
Paris, 25 September 2013 l First-half results 2013
p Capital expenditure
Dividends
Other financing flows
Net cash 30/6/13
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FIRST-HALF RESULTS 2013 - SUMMARY In a challenging environment, environment ALTEN slightly increased revenue and maintained its gross margin’s underlying fundamentals. Operating O ti margin i in i the th first fi t half h lf was mostly tl impacted i t d by b economic factors: - 2.3 fewer working g days y than in the 1st half of 2012, - a lower utilization rate. (4 3% of The cash flow generation remained satisfactory (4.3% revenue) despite seasonal factors unfavourable to our business at the end of June. Available net cash is ₏50.6m (-11% gearing).
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Outlook and strategy
2013 OUTLOOK
The European technology consulting market probably contracted in the 1st half of 2013 (it declined in France, Benelux and Spain) but growth should resume in the second half. Action plans were put in place during the first half of the year to benefit from the economic turnaround at the end of 2013 2014 and in 2014. Fewer consultants in-between contracts and an operating margin improvement are expected in the second half of the year.
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STRATEGY 2013 - 2015 Alten is optimistic about its further development: ďƒ˜ In France: moderate growth with significant recovery as from H2 2013 ďƒ˜ Abroad: more aggressive organic and external growth Challenges will include: - Optimizing the management of cross-border projects, - Reaching the critical size (1,500 (1 500 staff) in the West European countries, - Achieving targeted and relutive external growth operations.
Alten will count at least 17,000 people in 2015 Paris, 25 September 2013 l First-half results 2013
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APPENDIX
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NOTES to the balance sheet - assets BALANCE SHEET - ASSETS (In thousands of euros) ITEM
Dec. 2012
June 2013
200 572
199 662
INTANGIBLE FIXED ASSETS
10 053
9 466
TANGIBLE FIXED ASSETS
14 061
15 832
4 717
5 773
26 827
27 984
DEFFERRED TAX ASSETS
9 943
7 745
NON CURRENT ASSETS
266 173
266 462
402 753
418 949
OTHERS RECEIVABLES
40 664
43 888
CASH AND EQUIVALENTS
66 523
78 067
CURRENT ASSETS
509 940
540 904
TOTAL ASSETS
776 113
807 366
GOODWILL
EQUITY AFFILIATES NON CURRENT FINANCIAL ASSETS
TRADE DEBTORS
30
NOTES to the balance sheet - liabilities
BALANCE SHEET - LIABILITIES (In thousands of euros)
ITEM
Dec. 2012
June 2013
Capital
32 953
33 277
Premiums
25 443
31 811
Consolidated reserves
310 641
355 453
Consolidated net profit
78 160
36 194
447 197
456 735
455
996
12 629 1 517 5 742
13 487 530 4 891
19 888
18 908
6 496
4 143
7 936 38 100 256 041
27 218 36 904 262 462
CURRENT LIABILITIES
308 573
330 727
TOTAL LIABILITIES
776 113
807 366
SHAREHOLDERS' EQUITY
MINORITY INTERESTS Contingency provisions Non current financial debts Other non current liabilities
NON CURRENT LIABILITIES
Provisions Currents financial debts Trade and other account payable Other current liabilities
31
NOTES
PROFIT AND LOSS ACCOUNT (In thousands of euros)
ITEM
June 2012
June 2013
598 654
613 795
-47 596 -427 991 -57 57 639 -3 531 -3 677 783 -539 651
-47 942 -443 935 -60 60 243 -3 433 -5 247 789 -560 011
59 003
53 784
-193
24
58 810
53 808
-1 483
179
57 328
53 987
Net financial cost on net debt Financial cost on update and provisions
-258 184
-258 -488
FINANCIAL INCOME
-74
-746
SHARE IN NET INCOME OF EQUITY AFFILIATES
819
1 044
CORPORATE INCOME TAX
-19 264
-17 947
CONSOLIDATED NET PROFIT
38 807
36 338
-75
-144
38 732
36 194
NET REVENUE PURCHASES PERSONNEL COSTS EXTERNAL R A C CHARGES ARG S TAXES OTHER THAN ON NET INCOME AMORTISATION OTHER CHARGES AND INCOME OPERATING CHARGES OPERATING PROFIT ON ACTIVITY Payment in shares OPERATING PROFIT ON ACTIVITY BEFORE EXCEPTIONALS Non recurrent profit
Capital loss on asset disposal Goodwill impairment test OPERATING PROFIT
PROFIT ATTRIBUTABLE TO MINORITY INTERESTS PROFIT ATTRIBUTABLE TO THE GROUP
32
NOTESITEM
CASH FLOW STATEMENT (In thousands of euros) June 2012
June 2013
60 611
56 882
38 807 -819 2 888 193 19 264 15 258 5
36 338 -1 044 3 386 -24 17 947 21 258
Income tax p paid Change in Working Capital Requirements
-14 582 -16 382
-23 007 -7 315
NET CASH FLOW GENERATED BY ACTIVITY (FREE CASH FLOW)
29 647
26 560
Acquisition / Disposal on fixed assets Impact of change in scope of consolidation and earn-outs paid
-7 099 -16 096
-7 121 83
-23 195
-7 038
-245 -31 31 823 705 7 -85 32 118
-259 -32 32 262 6 770 -87 -948 19 295
NET CASH FLOW FROM FINANCING OPERATIONS
677
-7 491
CHANGE IN CASH RELATED TO FOREIGN EXHANGE POSITION
233
-487
7 362
11 544
Cash on hand Overdrafts Bank loans
66 976 -6 240 -43 307
78 067 -6 496 -20 932
NET CASH POSITION
17 429
50 639
CASH FLOW Consolidated Net Profit
Net contribution of associated companies (equity method) Amortisation and Provisions Payment in shares Corporate income tax Capital gain or loss Net borrowings income / loss Cost on debt present value
NET CASH FLOW ON INVESTMENTS Net financial cost Dividends paid to shareholders Capital increase Buy back of shares Repayment of long term debt Changes in short term financial debts
CHANGE IN CASH POSITION
33
Contact comfi@alten.fr www.alten.fr T : +33 (0)1.46.08.71.79 34