2020 half-year results - ANALYST PRESENTATION - Econocom
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
2020
half-year results
ANALYST PRESENTATION
September 10th, 2020
1
Today’s speakers
JEAN-LOUIS Angel Laurent
BOUCHARD BENGUIGUI ROUDIL
Chairman & CEO Managing Director Managing Director
Econocom - 2020 Half Year Results 2
01 One digital
company
OUR
AGENDA 02 H1 2020
results and
financial position
03 2021
outlook
One digital company,
a new claim to express
our identity and singularity
Digital
general
contractor
4
2018-20: 3 years of consolidation
Appointments as Group
Appointment of Appointment Managing Directors of
ECS Osiatis Starting period of new L. Roudil as GM as CFO of A. Benguigui
Acquisition Acquisition management team for Services A. Benguigui & L. Roudil
(2010) (2013) (end 2016 / early 2017) (early 2018) (April 2019) (March 2020)
Revenue
In € M
Headcount
Headcount 2 980 10 000
3 000
31/12/n 2 927 2 927
2 750
2 536
2 500
2 316 8 000
2 093 Consolidation period
2 000 Revenue Impact of disposals:
1 773 6 000
• Revenue : ca. -€200 M
1 584 1 538 ca. -€20 M
• ROP :
1 500 ROP
• Cash : ca. +€200 M
in €M
1 021 4 000
200 154
1 000
759 140 126 130
150 118 111
89 95
100 74 2 000
500 67 ROP
47
50 29
0 0 0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 e
Econocom - 2020 Half Year Results 5
One digital Committed Strengthened Supportive
company teams fundamentals market trends
Econocom - 2020 Half Year Results 6
01 One digital
company
Digital general
contractor
Equipment | Services | Financing
8
Digital general contractor
Clients Econocom Econocom
needs offering expertise
User experience Advisory Solutions
EQUIPMENT
Synergies between Installation Integration
people & digital SERVICES
Managed Services Cloud
Funding agility
FINANCING Applications Recycling
End-to-end support ability
for the implementation of digital projects
Econocom - 2020 Half Year Results 9
Our success factors in digital transformation
Wide range of
technologies & Multi-industry Long-term European
expertise partnerships presence
services
Others
Education
17% 22%
Energy
10%
Manufacturing
18%
IT
15%
Services
18%
Econocom - 2020 Half Year Results 10The team
at the center of the organization
Very experienced Unfailing support
Management Team provided to our clients
throughout Covid-19 crisis
New talents to Entrepreneurial mindset
drive sustainable
growth
Econocom - 2020 Half Year Results 11Case Study #1: large outsourcing project for
a global high-tech leader
Goal
Key figures
Full outsourcing of the
Workplace support chain
€52 M
project
Governance
End-to-end project support
44,000
users
Innovation
5 year
User experience improvement contract
Econocom - 2020 Half Year Results 12Case Study #2: digital transformation of points of sales
of a leading car manufacturer
Goal
Key figures
Transforming and digitalizing
dealerships across Europe
€30 M
project
Team
All countries involved 15,000
with central coordination equipment delivered
and installed
Innovation
16
Installation and maintenance countries
of audiovisual solutions
Econocom - 2020 Half Year Results 1302 H1 2020
results and
financial positionKey highlights
Revenue ROP Net Result Net financial debt
€1.24 Bn €43.5 M €22.1 M €303 M
-12.5% (1)
+12.4% (1) (2)
4x
(1)
-€102 M (3)
vs. H1 2019 vs. H1 2019 vs. H1 2019 vs. H1 2019
(1) On a like-for-like basis
(2) Before amortization of intangible assets from acquisitions
(3) Excluding impact of IFRS 16 on leases and rentals for which Econocom is a tenant Econocom - 2020 Half Year Results 15Continued increase in profitability
despite Covid-19 impact
H1 2020 revenue impacted
Revenue(1) by Covid-19 pandemic
H1 2020 €1,240 M -
12.5% ROP up by €4.8 M (+12.4%)
H1 2019 €1,417 M vs. H1 2019
Positive effects of cost
savings measures started early
2019 and intensified in H1 2020
Recurring operating profit (ROP) (1)(2)
H1 2020 €43.5 M + Driving sharp increase
12.4% in profitability
H1 2019 €38.7 M
(1) On a like-for-like basis
(2) Before amortization of intangible assets from acquisitions Econocom - 2020 Half Year Results 16Strong foothold and scale in Europe
H1 2020 Revenue (% and €)
North America
North & East Europe 6% (€68 M)
8% (€102 M)
France
South Europe All regions similarly impacted
53% (€659 M) by the Covid-19 pandemic
18% (€228 M)
Total
€1,240 M
Benelux
15% (€182 M)
Econocom - 2020 Half Year Results 17Accelerating on cost savings plan
Cumulated net annual cost savings Clear acceleration of cost
savings plan over H1 2020
2021 Net Global Objective(1) €90 M Well on track with €90 M
objective of net savings by 2021
Structural cost savings
H1 2020 Period to date Realized excluding ad hoc cost
€73 M
initiatives in connection with
Covid-19 pandemic
(1) Equivalent to €96.5 M gross amount (excluding reinvestment) Econocom - 2020 Half Year Results 18Services / Products & Solutions (DSS):
Strong increase in profitability
Revenue(1) Similar decline in revenue
between Services (-12.4%)
Services Products & Solutions and Products & Solutions (-11.7%)
H1 2020 €280 M €481 M €761 M -
11.9% Sharp increase in Services
H1 2019 €320 M €544 M €864 M
profitability (5.7%) on the back
of cost savings implementation
and strategic refocus towards
value-added contracts
Recurring operating profit (ROP)(1)(2)
Continued increase in Products
Services Products & Solutions + & Solutions profitability (3.6%
H1 2020 €16.2 M €17.2 M €33.5 M vs. 3.3%)
51.5%
H1 2019 €4.2 M €17.9 M €22.1 M
(1) On a like-for-like basis
(2) Before amortization of intangible assets from acquisitions Econocom - 2020 Half Year Results 19Technology Management & Financing:
Revenue and ROP hit by Covid-19 crisis
Financing activities generated
Revenue(1) €479 M in revenue down 13.5%
- year-on-year
H1 2020 €479 M
13.5%
H1 2019 €553 M Decrease more significant
in Q1 (-16.2%) than in Q2 (-11.7%)
with new operations gradually
introduced again
Recurring operating profit (ROP)(1)(2)
Translating into €10.0 M ROP
- given less variable cost model
H1 2020 €10.0 M
39.4%
H1 2019 €16.6 M
(1) On a like-for-like basis
(2) Before amortization of intangible assets from acquisitions Econocom - 2020 Half Year Results 20Stability of TMF portfolio
Contract portfolio
€6.1 Bn Overall stability of portfolio
at original purchasing price
Residual interest(1)
• 2.9% of the Original
€2.9 Bn Purchase Price
• >2x covered by remarketing
of assets and contract
extensions
€0.18 Bn
(1)
Outstandings Original Residual interest
purchase price
(1) Estimated value of assets at the expiry of the lease contract Econocom - 2020 Half Year Results 21Overall increase in ROP and Net profit
(In €M) H1 2020 H1 2019(1)
Increased in ROP
Revenue 1,240 1,424 despite decline
in revenue
Recurring operating profit2 43.5 41.2
Recurring operating profit 42.5 40.2 Increase in non-
recurring expenses
Non-recurring operating incomes and expenses -23.7 -13.5 following acceleration
Operating profit 18.8 26.8
in cost program
implementation
Financial result -8.5 -8.9 and Covid-19 expenses
Profit before tax 10.3 17.9
Net profit benefited
Income tax -5.6 -7.8 from capital gains
of non-core assets
Net profit from continued operations 4.7 10.1
disposals
Result from discontinued operations 17.4 -4.9
Net profit 22.1 5.2
(1) Restated
(2) Before amortization of intangible assets from acquisitions Econocom - 2020 Half Year Results 22H1 2020 FCF generation in line with H1 2019
Free Cash flow over H1 2020
+50 -19
-44
-88
-20
-5 -127
Free cash flow
generation in line
with H1 2019 level
Operating Non TMF WCR Financial CAPEX Free cash flow
Cash flow recurring Investments Expenses
items & Income tax • FCF structurally
negative over H1
Free Cash flow over H1 2019(1)
+76 -15 • WCR improvement
-6 -133
-27
-10 -116
Operating Non TMF WCR Financial CAPEX Free cash flow
Cash flow recurring Investments Expenses
items & Income tax Econocom - 2020 Half Year Results 23
(1) Published figuresSolid Free Cash Flow 12 months
as of end of H1 2020
€78 M of FCF
FCF 12 months H1 2020= +€78 M generation over last 12
months contributing to
-405 -303
deleveraging
• €140 M of cash flow
+110 -51
from operating
+140 -29
-30
+52 -39 -35 activities
-16
• €52 M WCR outflow
slightly improved
NFD(1) Operating Non TMF Financial CAPEX M&A(2) Treasury Others(3) NFD(1)
• €110 M net inflow
WCR
H1 2019 Cash flow recurring
items
Invest-
ments
Expenses
& Income
share
Buybacks
H1 2020 on disposals
tax Dividend
(1) NFD: Net Financial Debt excluding impact of IFRS 16 on leases and rentals for which Econocom is a tenant
(2) Includes cash proceeds of disposals of assets and cash disbursements on minority stakes bought in satellites
(3) “Others” includes cash impact of IFRS 5 and IFRS 16 Econocom - 2020 Half Year Results 24Strong progress on deleveraging path
Net Financial Debt (NFD)(1) Leverage ratio – NFD to LTM EBITDA NFD reaching €303 M
down €102 M vs. H1 2019
• Benefits from the sale
of EBC in H1 2020
€405 M
Sharp decrease
-€102 M
in leverage ratio
€303 M 2.5x at H1 2020
• 1.8x 12 LTM EBITDA
1.8x vs. 2.5x in H1 2019
Ongoing disposals
of non-core assets
to further accelerate
deleveraging path
H1 2019 H1 2020 H1 2019 H1 2020
(1) NFD: Net Financial Debt excluding impact of IFRS 16 on leases and rentals for which Econocom is a tenant Econocom - 2020 Half Year Results 25Solid liquidity position
Liquidity overview – H1 2020 Bond repayment schedule – H1 2020
Ample liquidity of
ca. € 375 M including
€375 M planned actions to
accelerate deleveraging
€200 M
ca.53 m€M
€150 No need for state-
backed loans
€224 M €137 M
€53 M Actions Next bond maturity
to come in November 2021
171 m€ €55 M following partial
€171 M repayment of Euro PP
in June 2020
13
(1)
Net cash
Catégorie 1 Total nov-21 2022 2023
Undrawn credit lines Liquidity Schuldschein Euro PP OCEANE
& Schuldschein
(1) Net cash as of H1 2020 : Cash on hand €478 M minus short-term debt €307 M (commercial papers and drawn credit lines) Econocom - 2020 Half Year Results 26Financial objectives 2020
2020 Revenue 2020 ROP Implement
growth of slightly better actions towards
-6% or better or equal to 2019 zero net debt
ROP(1)
(1) On a like-for-like basis Econocom - 2020 Half Year Results 2703 2021
outlookA new era for growth
One digital Committed Strengthened Supportive
company teams fundamentals market trends
Econocom - 2020 Half Year Results 29Products & Solutions
At the center of evolving customer needs
Today 2021
key metrics focus
Revenue 2019
€1.1 Bn Grow
in Germany, Italy,
Benelux and Spain
People
ca. 600
Strengthen
positions in France
#2 in France,
challenger positions
in rest of Europe
Econocom - 2020 Half Year Results 30Focus: acquisition of Switch B2B assets in Belgium
Key highlights
1st Apple Premium Reseller in Belgium
€25 M
revenue in 2019
Strengthen Econocom leadership
as an Apple Authorized Enterprise Reseller (“AAER”)
Group
dynamics
New Apple certification to develop in Education
premium services and support levels
for Education clients
Econocom - 2020 Half Year Results 31Services
Focus on higher value-adding offerings
Today 2021
key metrics focus
Revenue 2019
€0.7 Bn Mutualize
outsourcing model
between France, Belgium
People and Spain
ca. 7,800
Synergies
with satellites
Top 10 France
Econocom - 2020 Half Year Results 32Services in France
Strong increase in results
and profitability over the last 3 years
ROP Margin
improvement improvement
x 2.5 x 2.5
vs. 2017 from 2.5% to 6.5%
vs. 2017
Econocom - 2020 Half Year Results 33Technology Management & Financing
A growing market in the next years
Today 2021
key metrics focus
Revenue 2019
Recruit
€1.1 Bn new salespeople
People
ca. 650 Growth actions
all over Europe
Leading position
in France Target
scale and foothold external developments
in major European in Germany
countries
Econocom - 2020 Half Year Results 34Solid and experienced TMF Management team
Samira Draoua Chantal De Vrieze Frances Weston
Paris Brussels London
Emiliano Veronesi Carlos Perez-Herce Christoph Bläser
Milano Madrid Frankfurt
Econocom - 2020 Half Year Results 35Financial objectives 2021
2021 Revenue Implementation of
growth between new 3-year strategic
+5% and +10% plan to be presented
in February 2021
Econocom - 2020 Half Year Results 36Q&A
E
c
o
n
o
c
o
m
-
2
0
2
0
H
37
a
l
f
Y
e
a
r
R
e
s
u
l
t
sAppendices
E
c
o
n
o
c
o
m
-
2
0
2
0
H
38
a
l
f
Y
e
a
r
R
e
s
u
l
t
sStock Exchange
Equity table Number of shares:
• 220,880,430
Treasury
Stocks
1.5% Share price as of
September 8th, 2020:
• 2.4€
Holding companies held
by Mr. Bouchard
Listing place:
40.6%
Free float • Euronext Brussels
57.9% Market Cap • EBR: ECONB
€530 M • ISIN: BE0974313455
Stock Indexes:
• Bel Mid and Family
Business
(1) as of July 31st, 2020 Econocom - 2020 Half Year Results 39Divisional breakdown overview
Revenue(1)
Equipment Services Financing
2019 €1,131 M €671 M €1,124 M €2,927 M
2018 €1,026 M €652 M €1,249 M €2,927 M
Recurring operating profit (ROP)(1)(2)
Equipment Services Financing
2019 €46.9 M €35.4 M €43.9 M €126.2 M
2018 €38.7 M €19.9 M €52.3 M €110.9 M
(1) On a like-for-like basis
(2) Before amortization of intangible assets from acquisitions Econocom - 2020 Half Year Results 40H1 2020 Revenue and ROP bridges
In €M
192 1,424 -8 1 1,417
1,238 -6 1,240
Revenue
H1 2019 IFRS 5 IFRS 15 H1 2019 Rayonnance Exchange H1 2019 H1 2020
Published impact impact Restated disposal Rates Like-for-Like
1.2 41.4 -2.6 43.5
40.2 - -0.1 38.7
ROP
H1 2019 IFRS 5 IFRS 15 H1 2019 Rayonnance Exchange H1 2019 H1 2020
Published impact impact Restated disposal Rates Like-for- Like
Econocom - 2020 Half Year Results 41Simplified consolidated balance sheet
ASSETS (IN €M) 30/06/2020 31/12/2019(1) EQUITY & LIABILITIES (IN €M) 30/06/2020 31/12/2019(1)
Goodwill 509 513 Equity 498 484
Other non-current assets 219 234 Net Financial Debt 303 252
Assets related to leasing activities 459 404 Commitments on residual value 105 102
Residual interest in leased assets 177 165 Other non-current liabilities 146 131
Net receivables from own booked TMF
282 239 Trade payables 866 981
contracts
Other trade and other receivables 731 855 Other current liabilities 233 311
Other current assets 167 137 Liabilities related to assets held for sale 47 83
Assets held for sale 114 201
TOTAL 2,198 2,343 TOTAL 2,198 2,343
(1) After application of IFRS 5 and IFRS 16 Econocom - 2020 Half Year Results 42Net Financial Debt(1) overview
In €M
Bonds
478 -307
NFD at €303 M at H1 2020
• of which €282 M
Net related to own booked
-191
cash TMF contracts
Short term
-41 maturing within
debt
30 months
-55 -303
Cash -150
-39 OCEANE
on hand
Euro PP
-78
Schuldschein
Others NFD
(1) NFD: Net Financial Debt excluding impact of IFRS 16 on leases and rentals for which Econocom is a tenant Econocom - 2020 Half Year Results 43Contacts
Contact
relations investisseurs Contact
et relations actionnaires : agence :
etienne.jacquet@econocom.com Contact agence:
info@capvalue.fr
Tel. +33 1 80 81 50 00
Contact
relations presse :
anne-marie.cravero@econocom.com
Econocom - 2020 Half Year Results 44Thank you
E
c
o
n
o
c
o
m
-
2
0
2
0
H
45
a
l
f
Y
e
a
r
R
e
s
u
l
t
sYou can also read
