ANALYST & INVESTOR CALL - JULY 28th,2021
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ANALYST & INVESTOR CALL JULY 28th,2021
AKKA AND MODIS UNITE TO BUILD A GLOBAL SMART INDUSTRY LEADER 27/07/2021 AKKA GROUP | CORPORATE PRESENTATION 2
STRATEGIC CORPORATE DEVELOPMENT
A Worldwide
Multi-Specialist
MAIN ACQUISITIONS
Data Respons GIGATRONIK AEROCONSEIL
IoT and smarter embedded solutions IoT Specialist Aerospace Systems Engineering
specialist, SW and HW development, HW & SW development Specialist (950 Consultants) Data
R&D engineering services (1400 (1000 Consultants) Respons
specialists) COFRAMI
PDS
MBTECH IT Specialist
(2000 Consultants)
Tech
PDS Tech Automotive Engineering GIGATRONIK
Engineering and Technology Specialist (3500 Consultants) ERLKÖNIG
Services (2600 Consultants) EPSCO
CORIALIS
AURONIK MATIS
BAIC JV
MBTECH
CREATION
AEROCONSEIL
CREATION OF AKKA
COFRAMI OF AKKA DIGITAL
RESEARCH SOLUTION
CREATION OF CREATION OF
THE FIRST AKKA
GROUP TECHNOLOGIES
COMPANY
1984 1999 2005 2007 2010 2011 2012 2014 2015 2016 2017 2020
ORGANIC DIVERSIFICATION INTERNATIONAL DEVELOPMENT WITH FOCUS ON GERMANY START OF TRANSNATIONAL PROJECTS
GROWTH STRATEGY
ACCELERATION OF INTERNATIONAL DEVELOPMENT OUTSIDE EUROPE
7/27/2021 ANALYST & INVESTOR CALL 3KEY BENEFITS
50,000 engineers and digital experts with deep cross-sector expertise, a global footprint and a balanced industry
profile
#2 Global #2 in the engineering R&D market, building a powerful platform to drive future Smart Industry leadership
Extensive capabilities in innovative technologies and a differentiated end-to-end services offering in the Smart
Industry
Enhanced career and development opportunities as part of the leading global player shaping the future
Stronger attractiveness for key Smart Industry talent in a scarce market
7/27/2021 ANALYST & INVESTOR CALL 4AKKA & MODIS UNITE TO BUILD A GLOBAL SMART INDUSTRY LEADER
Top 10 players in ER&D services ($ bn)
Market
share AKKA & Modis - Global #2 in ER&D
~4.0% services, €3.7 bn revenues
Increasing importance of scale as
customers seek global suppliers with
deep cross-sector expertise and
extensive digital engineering
capabilities to drive innovation and
accelerate digital transformation
Capgemini Modis + HCL Alten AVL AFRY Accenture Tata Cognizant Wipro
/ Altran AKKA
A powerful platform to drive future global Smart Industry leadership
7/27/2021 ANALYST & INVESTOR CALL 5
Source: Everest Group, Zinnov Research & AnalysisFEATURES OF THE TRANSACTION
Acquisition by the Adecco Group of Ricci family and CNP controlling stakes (59.92% of share capital)
Transaction at €49 per share, a premium of c. 115% to the undisturbed share price of €22.82 on 23 July 2021
Subsequent launch of a Mandatory Tender Offer for the remaining shares expected end of Q1 2022,
Market subject to relevant approvals being obtained and closing
Intention to combine AKKA with Modis to create the number #2 player in the global engineering R&D
Integration market
Mauro Ricci and Jean-Franck Ricci agreed on a cash and share offer, showing commitment to future
Re-investment success of the combined entity within the Adecco Group
Jan Gupta appointed President-elect of combined business.
Jean-Franck Ricci to be appointed Chairman of the Customer Advisory Board of the newly combined
Governance business
Mauro Ricci to be appointed Special Advisor to the CEO of the Adecco Group
7/27/2021 ANALYST & INVESTOR CALL 6AKKA & MODIS GLOBAL FOOTPRINT
Unparalleled Global Reach
>50.000
Engineers & Digital
Experts
3.7 Bn €
Combined revenue 2020
>30
Countries
North America EMEA APAC
4
~30% ~50% ~ 20% Continents
Akka & Modis Presence
7/27/2021 ANALYST & INVESTOR CALL 7
Source: Management estimates, as % of 2020 revenuesINDUSTRY COVERAGE
AKKA & Modis Balanced Industry Profile
Industry Split AKKA & ER&D growth rates, by sector (2020-23e CAGR), and key growth
Modis drivers
Other
(Inc. Railway)
Automotive +6% 0% +16%
AUTOMOTIVE AEROSPACE SOFTWARE &
23%
22% INTERNET
Connected vehicles Fleet modifications and AI/ML, UX design, AR/VR,
Autonomous upgrades cyber security
Environmental
& Energy 6%
14%
Aerospace +20% +5% +5%
9% FINANCIAL SERVICES INDUSTRIAL ENVIRONMENTAL
MANUFACTURING & ENERGY
Industrial
Manufacturing 12% 14% Payments tech, robot Industry 4.0, 5G, IoT, Remote monitoring, cyber
advisory, fraud detection smart service security, smart service
Financial Software &
Services Web Services
Strong footprint in high-growth sectors will accelerate growth
Source Industry split: Management estimates, as % of 2020 revenues
Source ER&D growth rates: : Zinnov Research & Analysis
Manufacturing = includes automotive, aerospace, industrial, energy. Hi-Tech = includes software & internet, consumer electronics, semi-conductors. Services = includes financial, healthcare, retail, media
7/27/2021 ANALYST & INVESTOR CALLQ2 & H1 2021 HIGHLIGHTS
Q2 IN LINE WITH EXPECTATIONS
Q2 REVENUE +9.2% All Business Units recorded positive
vs Q2 2020 organic growth in Q2
€384.3M +20.5% Strong momentum in non-mobility
vs Q1 2021 sectors
H1 REVENUE +6.1% Sequential revenue growth
vs H2 2020
€769.5M Growth of non-mobility sectors results
>22%
vs H1 2020 from our diversification strategy
1AKKA legacy
Definition and calculation of all Alternative Performance Measures (APM) are provided on slides 16
7/27/2021 ANALYST & INVESTOR CALL 10Q2 2021
REPORTED ORGANIC
€M Q2 2021 Q2 2020 GROWTH GROWTH
(%) (%)
FRANCE 123.8 111.4 +11.1% +11.1%
GERMANY 84.8 74.5 +13.7% +13.7%
NORTH AMERICA 57.9 60.6 -4.4% +4.3%
INTERNATIONAL 64.8 59.7 +8.5% +9.2%
DATA RESPONS 53.1 45.8 +16.0% +4.2%
TOTAL GROUP 384.3 352.0 +9.2% +9.3%
* Definition various growth indicators are provided on slide 16
7/27/2021 ANALYST & INVESTOR CALL 11H1 2021
Q2 2021 Q2 2020 REPORTED H1 2021 H1 2020 REPORTED
€M
REVENUE REVENUE GROWTH (%) REVENUE REVENUE GROWTH (%)
FRANCE 123.8 111.4 11.1% 246.8 264.2 -6.6%
GERMANY 84.8 74.5 13.8% 168.5 181.3 -7.1%
NORTH AMERICA 57.9 60.6 -4.5% 119.3 138.1 -13.6%
INTERNATIONAL 64.8 59.7 8.5% 129.8 130.4 -0.5%
AKKA LEGACY 331.2 306.2 +8.2% 664.4 714.0 -6.9%
DATA RESPONS 53.1 45.8 +16.0% 105.1 64.0 64.2%
TOTAL GROUP 384.3 352.0 +9.2% 769.5 778.0 -1.1%
* Definition various growth indicators are provided on slide 16
7/27/2021 ANALYST & INVESTOR CALL 12REVENUE PER QUARTER
469,0
443,7 446,3 445,2 441,1
425,9
385,2 384,3
374,5
357,6 353,9 358,0 349,8 352,0 351,0
338,2
328,3
310,3
Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021
7/27/2021 ANALYST & INVESTOR CALL 13SECTOR EXPOSURE
DIVERSIFICATION SHOWS STRONG PROGRESS
Other
Other
sectors
sectors
Telco 9% Chemistry & Telco 5%
health 7%
5%
Chemistry & 6%
Automotive
health 33% Services Automotive
7% 4% 33%
Energy
Services 6%
5% Q2 2021 Mobility Railways Q2 2020 Mobility
Energy
68.5%
5% 71.5%
6% Defence
5%
Railways
5% Aerospace
Defence 6%
5% Aeronautic
Aerospace Aeronautic
7% 18%
23%
7/27/2021 ANALYST & INVESTOR CALL 14OUTLOOK
2021 OUTLOOK CONFIRMED
Cost base 2021 70 – 75 m€ reduction vs 2020 confirmed
One-off costs Expectations of c.€75m excl. Data Respons PPA confirmed
for the full year
2/3 occurred in H1 2021
FCF* Strong focus on cash management resulting into lower
than expected cash outflows in H1
Covenants Leverage ratioTHANK YOU.
NEXT PUBLICATION – H1 2021 RESULTS
ON SEPTEMBER 8TH, 2021CONTACT
akka-technologies @akka_tech AKKATechnologies1
akka-technologies.comAPPENDICES Q2 2021 FINANCIAL DATA 7/27/2021 ANALYST & INVESTOR CALL 19
HEADCOUNT (END OF PERIOD)
22.351
21.696 21.715
21.019 20.904 21.080
20.624 20.901 20.930 20.656
19.237
17.144
16.619
16.051
15.515
14.916 15.180
14.578
13.055 13.252
12.394
10.822
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021
7/27/2021 ANALYST & INVESTOR CALL 20TURNOVER RATE (YTD)
23% 23%
23%
22% 22%
20% 20%
19% 19%
19%
18% 18% 18%
18% 18% 18% 18%
17% 17% 17%
17%
16%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021
*Excluding PDS Tech
7/27/2021 ANALYST & INVESTOR CALL 21UTILISATION RATE (YTD)
91,5% 90,7% 91,9% 92,1% 91,0%
89,1% 90,3% 89,6% 89,7% 88,8% 90,3% 90,0%
86,5% 87,1%
84,4% 85,2%
77,6%
73,6%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021
* Excluding Data Respons
7/27/2021 ANALYST & INVESTOR CALL 22GLOSSARY
Definition of ALTERNATIVE MEASUREMENT MEASURES and COMPARABILITY ADJUSTMENTS:
reconciliation with IFRS : Expenses and income related to significant acquisitions,
The Group uses alternative performance measures (APM) aimed to reorganizations, litigations, transformation, amortization of
provide a broader view of the Group financial performance which is intangibles identified as part of business combinations,
complementary to IFRS aggregates. These APM are not audited, stock options and free shares, costs related to COVID crisis.
and their calculations are based on both IFRS and non IFRS
figures. OPERATING PROFIT ADJUSTED:
Operating profit increased by comparability adjustments.
ORGANIC GROWTH:
Growth at constant scope and exchange rate. OPERATING MARGIN ADJUSTED:
Rate of adjusted operating profit in proportion of Revenue.
ECONOMIC GROWTH:
Growth at constant scope, exchange rate and number of working
days.
PRO FORMA CONSTANT GROWTH:
Organic growth based on proforma figures as if Data Respons had
been consolidated from 1st January 2020.
7/27/2021 ANALYST & INVESTOR CALL 23DISCLAIMER ▪ This presentation does not contain or constitute an offer of securities for sale or an invitation or inducement to invest in securities in Belgium, France, the United States or any other jurisdiction. ▪ This presentation may contain information expressed as forward-looking statements. Forward-looking statements are statements that are not historical facts. Forward-looking statements may include anticipations, projections and their underlying assumptions as well as statements (regarding plans, objectives, expectations and intentions, future financial results, potential events, operations, services, products). Such information concerns either trends or targets and cannot be regarded as results forecasts or as any other performance indicator. ▪ This information is by nature subject to risk and uncertainty, that may cause the actual results to differ from those mentioned in the forward-looking statements. Even though AKKA Group’s management believes that the expectations reflected as of the date of this presentation in such forward-looking statements are reasonable, this information does not reflect the Group's future performance and is not intended to give any assurances or comfort as to future results. Therefore no-one should unduly rely on these forward-looking statements. The AKKA Group makes no commitment to update this information. ▪ More comprehensive information on the AKKA Technologies Group may be obtained on our website. 7/27/2021 ANALYST & INVESTOR CALL 24
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