H1 2019 results & outlooks Mastered transformation. Driven innovation - Infotel
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H1 2019 results & outlooks Mastered transformation. Driven innovation.
Contents
1
PROFILE
Investor presentation - September 2019 © Infotel 2
Our mission:
Support our clients in scaling
their IT systems and legacy
applications
Investor presentation - September 2019 © Infotel 3
Growth in the first half
✓ Positioning creates long-term value
✓ Outperforming the market
✓ A preferred partner of tier one accounts
✓ Business model combining growth and revenue recurrence
Investor presentation - September 2019 © Infotel 4
Sustainable growth
Changes in COI and NI Group share
Growth in revenue (at 31/12 - €m)
250,0 (at 31/12 - €m) 231.7 25,0
22.7
200,0 20,0
150,0 15,0 15.1
100,0 10,0
50,0 24.8 5,0 3.1
0,0 0,0 2.4
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Current operating income NI Group share
Investor presentation - September 2019 © Infotel 5
Services arm provides high level of revenue recurrence
H1 2009 H1 2019
Revenues from top 10 clients: €29m Revenues from top 10 clients: €84m
Investor presentation - September 2019 © Infotel 6
Contents
2
HIGHLIGHTS
Presentation to investors - September 2019 © Infotel 7
Investments made in H1 to prepare for the future
✓ Strong sales momentum and a growing, diversified order backlog
✓ Incentive policy based on distribution of free shares
✓ Action taken to secure the loyalty of staff and sub-contractors
✓ An ever-inventive Software business
Investor presentation - September 2019 © Infotel 8
Growth in H1
€122.3m 2,500
First-half revenue employees
+6.2%
€118.2m €9.5m
Revenues from Services
Operating income
+7.0%
€4.1m €62.5m
Revenues from Software Cash
-11.3% +€3.0m
Investor presentation - September 2019 © Infotel 9
Services: €118.2M (+7.0%)
Geographic breakdown Breakdown of revenue by sector
2,6
of revenue IBC %
1,8
(€m) UK Administrations
2,1
H1 2019 Monaco 2.0%
€118.2m 3,2
Nord Est Services/
7,7
Transports
19,6 Sud-Est
21.9% Banking/
33,8 Ouest
Finance
47,2 Sud-Ouest 35.7%
Paris
3,7
1,0
H1 2018
1,4
€110.5m
2,9
7,0 Industry
27.8% Insurance/
18,7 Pensions
32,5 ~64% 12.7%
43,3 of revenue from
fixed-rate
activity
Presentation to investors - September 2019 © Infotel 10New business sectors
• French Council of State: global approach aimed at replacing existing dispute management
applications within the next three years by introducing more innovative technologies providing
AIM
added capabilities (ergonomic, easy to use, multi-device, etc.)
• Create a new web portal for lawyers, so these can file suits with the Council of State following
damages caused by a third party
ORGANISATION
• Project conducted on the client’s premises in agile mode involving a dedicated team, under
Infotel management
• Tests conducted by a sample of users, aimed at ensuring needs are addressed in full
SOLUTION
• Web portal developed using latest technologies (Jhipster and Angular)
Investor presentation - September 2019 © Infotel 11New business sectors
• Open a new client account for the provision of Tech Lead Big Data services, highlighting Infotel's
AIM
expertise in this field
• Improve the reliability of the AMF’s financial market surveillance system (“ICY Platform”) by
ensuring maintenance and scale-up, with performance indicators to measure commitment
• Committing resources:
ORGANISATION
• one Quality and Methods manager
• one Flow Supervision manager
• Committing to deliver results: TPAM team implemented on customer site to ensure overall
provision of services and to ensure a secure environment for the client using service transparency
indicators
SOLUTION
• Development involving standard tools for Big Data environments (Hadoop, Spark, Kafka,
ElasticSearch, Scala)
Investor presentation - September 2019 © Infotel 12New business sectors
•
AIM
Digitalise patient case files amid mounting growth in hospital activity
• Streamline and improve efficiency of patient data processing
ORGANISATION
• Infotel’s team of healthcare sector specialist to roll out customised data forms and data
extraction requests for the Computerised Patient File tool based on Agfa ORBIS software
SOLUTION
• Expertise across multiple fields
• Service included in our Toulouse-based
service centre range to ensure we capitalise
on our knowledge base and flexible
production capacity
Investor presentation - September 2019 © Infotel 13Partnership with long-standing client extended
• Streamline and ensure efficiency of patent data processing for two of the world’s
AIM
main intellectual property offices
• Pool and synchronise patent classification data between the EPO and the USPTO
• Ensure no loss of service or of integrity during data migration
ORGANISATION
• Critical project in patent filing process, requiring heavy involvement in the business,
both in Europe and the US
• Development team divided between our sites in Newcastle upon Tyne, the Hague
and Paris
• Agile approach for distributed development
• Secure solution, accessible from Amazon Cloud
SOLUTION
• Migration of existing Mainframe data to Oracle server on AWS Cloud
• Back-end programming: JBoss Enterprise Java
• MMI to create and remove attributions
Investor presentation - September 2019 © Infotel 14Recruitment in a tight job market
Véronique Arène , published on 28 February 2019
Extract from interview with Paul Hermelin, Capgemini
September 2019 - Capital magazine
Investor presentation - September 2019 © Infotel 15Right sizing teams
Growth in average headcount Change in sub-contracting and
+1.4 % personnel expenses
1,697 1,721
o/w
o/w CICE 82.4% 84.2% Free
at
shares
€1.4m
at
€1.6m
44.9 44.2
Employees
37.5 40.0
Sub-contracting
Inter-contract
rate
H1 2018 H1 2019
2.0% H1 2018 H1 2019
The Service division’s time between contracts is defined in days versus potential work time (excluding paid leave,
unpaid leave and time off in lieu of overtime) of directly billable employees.
Investor presentation - September 2019 © Infotel 16Steady growth in headcount
Growth in headcount France
(at 30/06)
1,742
1,679
1,557
1,405
1,314
2015 2016 2017 2018 2019
Investor presentation - September 2019 © Infotel 17A large pool of sub-contractors
A proven asset in the Infotel business model
A pool of talent with diversified profiles
High degree of flexibility to keep pace with growth
Leverage can be activated rapidly
Highly adaptable personnel
Investor presentation - September 2019 © Infotel 18Agile Human Resources model
Human Resources Department strengthened
Roll-out of employer brand campaign
Multiple new recruitment methods used (co-opting, social networks, speed
dating, etc.)
Strengthened follow-up of employee career paths (mobility, internal
promotion, etc.)
Improvement in Quality of Life at Work (after-work events, work spaces, home
office, etc.)
“I reached 10 years of service at Infotel in recent months. Those years have been
spent at the Software division, where I’ve worked on Acrsys, IbdA and Merge
Backup. I was hired as a graduate and am happy to continue taking part in the life
of the company today, particularly at the Software arm: I’ve read that you have big
plans for the business. Lastly, I’d like to thank you for recognising my commitment
to Infotel. “
Sandrine, Development Engineer, Software division
Investor presentation - September 2019 © Infotel 19Fresh impetus from a new generation of managers
Free share plan
AGM on 31 May 2018: up to 5%
of share capital over 38 months
23/1/2019 77,497 shares
granted to seven people, or 1.2%
of share capital
Investor presentation - September 2019 © Infotel 20Software: sales and royalties
Breakdown of software sales in Change in royalties from IBM
H1 2019 (€m)
(%) 2.8
2.7
2.3
Licences
& maintenance
Europe
35.0%
Licences
& maintenance
US
65.0% H1 2017 H1 2018 H1 2019
Investor presentation - September 2019 © Infotel 21Stepping up prospection for Orlando
Advanced talks
with several companies
First clients look promising
Investor presentation - September 2019 © Infotel 22A unifying project to create new software solutions
ONE AIM: BRING A NEW
ONE BIG AMBITION: ENERGISE THE A GROUP-WIDE
SOFTWARE SOLUTION ON THE MARKET
SOFTWARE BUSINESS COLLABORATIVE EFFORT
IN 2021
• One of the Group’s historical divisions • A generic product to meet a recurrent need • Involving all Infotel sites and a maximum
identified among our clients number of employees, across all functions
• A dominating strand of Infotel’s DNA
• A product that can be rolled out quickly • Direct, regular involvement of Infotel’s
general management at each stage of the
• The division needs to account for a more
• A productdelivered in SAAS mode and project
substantial share of Group business
encapsulating current technologies: AI, Big
Data, Virtal/Augmented Reality, • A collective dynamic that spurs staff
Blockchain, etc. motivation and commitment
Investor presentation - September 2019 © Infotel 23Contents
3
H1 RESULTS
Investor presentation - September 2019 © Infotel 24Impact of application of IFRS 16
Income statement Impact Amount
1 EBITDA Favourable impact thanks to decline in lease payments €1.3m
Depreciation and Percentage of rents paid booked to depreciation and
2 -€1.3m
amortisation amortisation.
3 Financial result Part of lease payments recorded as a financial cost -€0.1m
Balance sheet Impact Amount
4 Non-current assets Right-of-use assets booked as non-current assets. +€13.3m
Financial liabilities Offset by the recognition of future lease payments as a
5 (ST & LT) liability (non-cash)
+€13.3m
Cash Flow Impact Amount
Cash flows used in
6 financing activities
Cash flow amount recorded to cover lease liability -€1.2m
Investor presentation - September 2019 © Infotel 25H1 2019 results: growth
Simplified income statement H1 2019
H1 2018 % Change
(€m) IFRS 16
Revenue 122.3 115.2 +6.2%
Personnel expenses (54.0) (51.7) +4.5%
External expenses (53.5) (49.0) +9.3%
1 EBITDA 12.5 12.2 2.8%
% of revenue 10.2% 10.6%
2 Depreciation and amortisation (3.1) (1.6)
Current operating income 9.5 10.7 -10.4%
% of revenue 7.8% 9.2%
Operating income - Services 8.2 8.7 -5.2%
Operating income - Software 1.3 2.2 -41.0%
Operating income 9.5 10.9 -12.4%
3 Financial result (0.03) (0.05)
Income tax (4.3) (3.8) 13.5%
NI Group share 5.0 7.1 -29.5%
% of revenue 4.1% 6.1%
Investor presentation - September 2019 © Infotel 26Breakdown of 2019 current operating income
in €m
1.45
7.19 2.31
4.52
10.65 1.64
1.28
9.54
2018 Revenue CICE Personnel External Free Depreciation 2019
current H1 2019 (Tax credit) costs expenses shares & current
operating incl. sub- granted Amortisation operating
income contracting IFRS 16 income
Investor presentation - September 2019 © Infotel 27Robust financial structure
Consolidated balance Consolidated balance
sheet H1 2019 sheet H1 2019
ASSETS (€m) IFRS 16 H1 2018 LIABILITIES (€m) IFRS 16 H1 2018
Non-current assets 38.0 22.1 Shareholder's equity 82.7 79.3
o/w goodwill 12.1 11.0 Non-current liabilities 15.0 3.5
4 o/w rights-of-use 13.3 - o/w lease liabilities 10.9 - 5
o/w intangible assets 7.3 6.8 Current liabilities 75.6 72.0
o/w property, plant &
2.8 2.5 o/w current lease liabilities 2.4 5
equipment
Current assets 135.8 132.8
o/w accounts payable 21.7 20.9
o/w cash & cash
62.5 59.5 o/w tax & social security
equivalents 51.4 51.0
liabilities
TOTAL ASSETS 173.8 154.9 TOTAL LIABILITIES 173.8 154.9
Investor presentation - September 2019 © Infotel 28A cash-generating business
H1 2019
Cash flow (€m) IFRS 16 H1 2018
Cash flow from operations before
14.1 12.4
tax
Income tax paid (3.9) (1.7)
Chance in WCR (5.3) (3.5)
Cash flow generated by business 5.0 7.2
Acquisitions of PPE and intangible
(1.6) (2.6)
assets
Impact of changes in scope (1.4) -
Cash flow from investing activities (3.5) (2.7)
6 Cash flow from financing activities (11.9) (9.3)
o/w dividend payments (10.6) (7.7)
o/w net lease liabilities (1.2) -
Change in cash position (10.3) (4.8)
Opening balance 72.8 64.3
Closing balance 62.5 59.5
Investor presentation - September 2019 © Infotel 29Contents
4
STRATEGY AND
OUTLOOKS
Investor presentation - September 2019 © Infotel 302018-2022 strategy plan
# Capitalise and share
Ambition
# Attract new talent
# Surprise our clients
# Expand in France and international markets
# New working methods
# New management practices
# New technologies Innovation
# A winning business model
Continuity # Growth and profitability
# Reputation and prominence
Investor presentation - September 2019 © Infotel 31Strategic priorities
Gain traction on global Speed up roll-out of
projects the Software business
in Services
Expand Make selective
in business sectors and acquisitions
international markets
Investor presentation - September 2019 © Infotel 32Objectives
GROW FASTER THAN
THE MARKET
MAINTAIN A HIGH
LEVEL OF OPERATING PROFITABILITY
Investor presentation - September 2019 © Infotel 33Contents
5
STOCK MARKET
Investor presentation - September 2019 © Infotel 34Stock market information
Share-ownership structure
(as at 31/12/2018 based on share capital of 6,656,955 shares)
Public Free float structure
59.8% Mutual funds: 48%
Foreign depositories: 38%
Individual shareholders: 12%
Companies: 2%
Managers:
40.2% Free share plan for
Voting rights: 54.6% seven key people for
company growth
Investor presentation - September 2019 © Infotel 35Share performance
Share price information Share price and volumes over 1 year
(source: Euronext)
ISIN FR 0000071797
Reuters ETFO.PA
Bloomberg INF.FP
Compartment B – SRD long only
Index EnterNext© PEA-PME 50
Number of shares 6,656,955
Avg. capital traded/day
€189k
since 1/1/2019
Price at 18/09/2019 €38.70
Market cap at 18/09/2019 €257m
12-month high €48.50 (18/09/2018)
12-month low €34.35 (27/12/2018)
Investor presentation - September 2019 © Infotel 36Financial calendar
Roadshows
Upcoming publications 23/26 September 2019 Salt Lake City, Chicago, New York
23 October 2019 Q3 2019 revenues 8 October 2019 Frankfurt
9 October 2019 Vienna
22 January 2020 Q4 2019 revenues
4 March 2020 2020 annual results Investor Forums
5 March 2020 SFAF meeting 10 October 2019 Portzamparc
14/15 October 2019 Midcap Event
GD - French Small & Midcaps
7 November 2019
owned family businesses
20 November 2019 Euroland
Infotel Actifin, financial communications
Michel Koutchouk Ghislaine Gasparetto
michel.koutchouk@infotel.com ggasparetto@actifin.fr
00 33 1 48 97 38 38 00 33 1 56 88 11 11
www.infotel.com www.actifin.fr
Investor presentation - September 2019 © Infotel 37La transformation maîtrisée. L’innovation passionnée.
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