Majorel - Investor Presentation
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
STRICTLY PRIVATE AND CONFIDENTIAL Majorel – Investor Presentation November 2021
Disclaimer
IMPORTANT: Please read the following before continuing. Failure to comply with the following restrictions may, between others, constitute a violation of applicable securities laws.
This presentation (“Presentation”) is released by Majorel Group Luxembourg S.A. (“Company”) and contains information that qualified or may have qualified as inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 (MAR).
The financial information for Q3/9M of the Company in this Presentation has been derived from the management accounts of the Company and is unaudited and preliminary. The Information is subject to
updating, revision, amendment, verification, correction, completion and change without notice. It does not purport to contain all information required to evaluate the Company or the Majorel Group and/or its
financial position. The Information does not constitute a recommendation regarding any loans or securities of the Company.
All forward-looking statements are based on Company`s management`s present expectations of future events and are subject to a number of factors and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements. For a detailed description of these factors and uncertainties, please refer to the “Risk Factors” section of our Prospectus, available at the
www.bourse.lu/cssf-approvals. Majorel undertakes no obligation to publicly update or revise any of these forward-looking statements
In providing access to this Presentation, none of the Company or any of the Company’s respective affiliates or any of its of their respective directors, officers, employees, agents or advisers (“Representatives”)
undertakes any obligation to provide you with access to any additional information or to update the information as part of this Presentation or to correct any inaccuracies in any such information, including any
financial data or forward-looking statements.
No representation, warranty or undertaking, express or implied, is made by the Company or its Representatives or any other person as to, and no reliance should be placed on, the fairness, accuracy, completeness
or correctness of the Information or the opinions contained therein or any other statement made or purported to be made in connection with the Company or any of the Company’s respective affiliates, for any
purpose whatsoever, including but not limited to any investment considerations.
No responsibility, obligation or liability whatsoever, whether arising in tort, contract or otherwise, is or will be accepted by the Company or its respective Representatives for any loss, cost or damage howsoever
arising from any use of the Information, or for information or opinions or for any errors, omissions or misstatements contained therein or otherwise arising in connection therewith. In addition, no duty of care or
otherwise is owed by the Company or its Representatives to recipients of the information within this Presentation or any other person in relation to the Information.
This Presentation does not, in any jurisdiction, including without limitation in the U.S., constitute or form part of, and should not be construed as, any offer for sale of, or solicitation of any offer to buy, or any
investment advice in connection with, any securities of Majorel Group Luxembourg S.A., nor should it or any part of it form the basis of, or be relied on in connection with, any contract or commitment
whatsoever.
2
Definitions
Net Revenues “Net Revenues” for the group corresponds to revenues as reported in our consolidated income statement less (i) revenues from minor activities (primarily the Sonopress Business) outside
the Majorel Group’s core business which are reported in the column “consolidation / other” in the Company’s segment reporting and (ii) certain direct, order-related external costs which
are part of external expenses and costs of materials and consist mainly of cost of services purchased (subcontracted or outsourced services). The “Sonopress Business” is defined as certain
non-core business activities historically carried out by Arvato de Mexico, S.A. de C.V., which is currently being wound down. Segment revenues already excludes revenue reported as
“consolidation / other” in the Company’s segment reporting. Net Revenues for each segment corresponds to the according segment revenues less certain direct, order-related
intersegment and external costs.
Operating “Operating EBITDA” is defined as EBIT (earnings before interest and taxes) adjusted for depreciation / amortization, impairment and reversal on intangible assets, property, plant and
EBITDA equipment and right-of-use assets, adjusted for (i) impairment on goodwill and other intangible assets with indefinite useful life as well as gains from business combinations, (ii) carrying
amounts on assets held for sale, (iii) impairment/reversals on other financial assets at amortized cost, (iv) impairment/reversals on investments accounted for using the equity method, (v)
results from disposals of investments, (vi) fair value measurement of investments, and (vii) restructuring and other special items. We use Operating EBITDA to assess the operating
performance of our business as Operating EBITDA shows our EBIT as adjusted for depreciation and amortization, which are non-cash effective charges, and one-off effects for the relevant
period. When comparing Operating EBITDA with peer group data, it should be taken into account that the total adjustments in a given year do not represent the full amount of all special
effects incurred in a given year, as rather only material non-recurring effects subject to certain thresholds will be considered for the purpose of calculating Operating EBITDA.
Capital “Capital Expenditure” is defined as investments in intangible assets and investments in property, plant and equipment.
Expenditure
Free Cash Flow “Free Cash Flow” is defined as Operating EBITDA less adjustments minus increase/plus decrease in Net Working Capital after net cash out from pensions, payments from leases and net
investments in non-current tangible and intangible assets excluding net payments from acquisitions and disposals of financial assets.
Net Working “Net Working Capital” is defined as inventories plus trade and other current receivables, other current assets and deferred items (assets), less trade and other current payables, other
Capital current provisions and deferred items (liabilities). Current income tax receivables and payables and cash equivalents are not included in our definition of Net Working Capital. We use Net
Working Capital to assess the capital requirements of our operating business.
Offshore We define Net Revenues from offshore locations as Net Revenues generated from the following countries, which include our nearshore locations and may also include certain onshore
Delivery business carried out in these countries: Morocco, Ivory Coast, Senegal, Togo, Poland, Romania, Estonia, Georgia, Armenia, Mexico, Philippines, Malaysia, India, Kenya, Portugal, Peru,
Colombia, and Egypt.
Net Revenue “Net Revenue Retention” means net revenues generated by clients in H1-2021 divided by net revenues generated by the same cohort of clients in H1-2020 (excluding China Business).
Retention
China Business "China Business“ means the acquisition of Shanghai Bertelsmann Commercial Services Co. Ltd, Shanghai Bertelsmann – arvato Information Services Co. Ltd. and Bertelsmann-Arvato
Commercial Services (Shanghai) Co., Ltd.
Covid-19 "Covid-19 Business“ means contracts to provide services in the fight against the Covid-19 pandemic.
Business
3Today’s agenda
1 INTRODUCTION TO MAJOREL
1 FINANCIAL AND BUSINESS PERFORMANCE
1 2021 FULL YEAR GUIDANCE AND MID-TERM OUTLOOK
1 FINAL REMARKS
1 APPENDIX
4Today’s agenda
1 INTRODUCTION TO MAJOREL
FINANCIAL AND BUSINESS PERFORMANCE
1 2021 FULL YEAR GUIDANCE AND MID-TERM OUTLOOK
1 FINAL REMARKS
1 APPENDIX
51 Majorel’s evolution to a publicly listed company
on Euronext Amsterdam
Full merger Private placement and
in 2019 public listing
in 2021
(One of the largest media services Shareholder structure
(October 31st, 2021)
+ and education groups worldwide)
Management
Freefloat
0.9%
50/50 partnership Saham 20.1%
+ Designs, builds and
Group 39.5%
delivers end-to-end 39.5%
+ (African investment group operating
customer experience for
many of the world’s most
respected digital-native
Bertelsmann
in a variety of essential human
industries and services) and vertical leading Euronext Amsterdam
brands September 24, 2021
JV since 2004
61 Majorel is enabling rich end-to-end customer experience
Customer Interaction Business Tech &
Clients Services Process Services Expert Services
Global Internet
Global partner of choice Leader for Content Services, Digital consumer engagement
for digital-native companies Trust & Safety Digital CX consultancy
Start-ups
Other verticals1
Long-term partner for industry leaders and Portfolio of vertical
digital disruptors in integrated end-to-end services digital solutions
BFSI2 Auto CPG3 Utilities
Leverage Domain expertise | Next generation technology | Global platform
Delivery model Majorel Anywhere | Multilingual hubs | Global and regional
Talent Learning and development | Diversity and inclusion | Wellness and resiliency
Notes: (1) Selected verticals. (2) Banking, financial services and insurance. (3) Consumer packaged goods. 71 Large and structurally growing ~$305bn TAM
Insourced CX Outsourced CX Content / Trust &
(2020) (2020) Safety services
(2020)
$89-91bn
4-5%
expected growth(2)
$~8bn $4-5bn Adjacent markets
~$210bn(1) ~42% 30-40% (e.g. Vertical
expected expected
growth(2) growth(3) BPO)
Digital CX
~70% ~30%
in-house outsourced
Sources: Everest Group.
Notes: (1) 70% of TAM. (2) CAGR 2020-22E. (3) CAGR 2020-23E.
81 Favorable digital megatrends accelerated by Covid-19 pandemic
Digital Brand protection Proliferation of AI, cloud
transformation imperative and IoT solutions
Increased Increase in customer Omnichannel
outsourcing interactions complexity
91 Majorel´s global platform spanning from East to West
Countries we operate in
Multilingual hubs
Netherlands Germany
Amsterdam Berlin & Münster Poland
#4 16 HQ (Luxembourg)
Poznan
globally in terms of multilingual Ireland
Romania Differentiated Chinese platform
Brasov, Cluj & Sibiu
countries vs peers(1) hubs Dublin with 20 years of history:
Georgia Serving international clients in
Portugal
Tbilisi
35% 63% Lisbon
Spain
Armenia
China and domestic Chinese
clients abroad
Yerevan
offshore net employees Barcelona
revenues share(1,2,3) work from home(1,4) Italy
Milan Egypt
Alexandria Malaysia
31 129 120+ 60 & Cairo Kuala Lumpur
countries countries
sites(1) languages
presence(1) served
Serving clients from all over the world… …across varying industry verticals… …with a truly global delivery
Net revenues by segment (2020A)(5) Net revenues by industry vertical (2020A)(6) Employees by location (2020A)
Americas
GEMS
Merged Other Global 10%
19% Excl. China
Arvato China 26% Internet Asia
38% 15%
in 2021 40% Europe
81% 19%
EASA 35%
Telco 16%
Africa & ME
BFSI
Notes: Latest data unless otherwise stated. (1) As of 31 December 2020. (2) “Offshore” defined as revenues from the following countries (even if some local business is included): Morocco, Ivory Coast, Senegal, Togo, Poland, Romania, Estonia, Georgia, Armenia,
Mexico, Philippines, Malaysia, India, Kenya, Portugal, Peru, Colombia, Egypt. (3) Net revenues for the group corresponds to revenues as reported in our consolidated income statement less (i) revenues from minor activities (primarily the Sonopress Business)
outside the Majorel Group’s core business which are reported in the column “consolidation / other” in the Company’s segment reporting and (ii) certain direct, order related external costs which are part of external expenses and costs of materials and consist
mainly of cost of services purchased (subcontracted or outsourced services). (4) Including China. (5) EASA = Europe, Africa, South America. GEMS = Global English, Middle East, South East Asia. Excluding revenues from consolidation and others. (6) Split based on 10
assessment of the management.1 Deeply entrenched long-term relationships with top clients
Top 20 clients (2020)
Business
Countries Sites Languages Client tenure
Lines Low client concentration(1)
(#) (#) (#) (years)
(#)
% of net revenues (2020A)
45 21 23
15
22
22
17
Top 5 clients
Other clients
16 22
31% 34%
8 14
10
8 9
6 7
6
3 8 16%
19%
11 Top 6-10 clients
3 3 Top 11-20 clients
3
1 3 1 1 1 1
2
~12Y 113%
Global Internet (8 clients) Non Global Internet (12 clients) Average Avg. client tenure(2) Net revenues retention(3)
Notes: (1) Client concentration percentages do not add up to 100% due to rounding. (2) Of top 20 clients. (3) Net revenues generated by clients in 2020 divided by net revenues generated by the same cohort of clients in 2019.
111 Uninterrupted Global Internet Client wins since 1998
Client GI 13
Illustrative Global Internet (GI) clients won year on year
Client GI 14
Client GI 15
Client GI 2 Client GI 10 Client GI 16
1998 2010 2011 2015 2016 2018 2019 2020
Client GI 2
Client GI 1 Client GI 7
Client GI 3 Client GI 11 Client GI 17
Client GI 4 Client GI 8
Client GI 12 Client GI 18
Client GI 5 Client GI 9
Long-term partnerships and no churn Dedicated key account teams Expanding with clients
121 Multiple organic growth vectors supplemented by M&A
Visible organic and M&A growth levers Successful track record
Group foundation Add-ons
Regional expansion
China CRM
Business
Majorel created through successful merger and (2021) (2021) (2020)
integration of 4 businesses
Expand product scope
with existing clients
Visible pipeline of further M&A opportunities
42 targets in the pipeline as of June 2021
Attract new clients
Customer Interaction and Business Process Services
31 targets
Invest in new services Tech & Expert
7 targets 4 targets
Services
Geographical expansion Vertical domain expertise
13Today’s agenda
INTRODUCTION TO MAJOREL
1 FINANCIAL AND BUSINESS PERFORMANCE
1 2021 FULL YEAR GUIDANCE AND MID-TERM OUTLOOK
1 FINAL REMARKS
1 APPENDIX
142 Attractive financial profile with strong growth, expanding margins
and high cash conversion
Revenues and Net Revenues Operating EBITDA EBIT Group Profit
€mn; % YoY organic growth €mn; % of net revenues €mn; % of net revenues €mn; % of net revenues
+14% 10.9% 14.6% 4.1% 8.7% 1.3% 6.4%
+14%
1,375
1,340
+53% 196
128
1,211 +142% 116
1,172 +438% 86
48
16
2019 2020
Revenues Net Revenues 2019 2020 2019 2020 2019 2020
77% cash conversion(2) in 2020
Notes: Excl. China. (1) Operating EBITDA is defined as EBIT (earnings before interest and taxes) adjusted for amortization and depreciation, impairment and reversal on intangible assets, property, plant and equipment and right-of-use assets. (2) Cash Conversion
= Free Cash Flow / Operating EBITDA.; all full year financials are audited. 152 Our strong financial performance continues in H1 2021
Revenues and Net Revenues Operating EBITDA EBIT Group Profit
€m €m €m €m
+37%
+35%
877 +121%
842
154
642 626
+235% 114
+331% 85
70
34
20
H1-2020 H1-2021
H1-2020 H1-2021 H1-2020 H1-2021 H1-2020 H1-2021
Revenues Net Revenues
% Net
11.2% 18.4% 5.4% 13.6% 3.1% 10.1%
Revenues
162 Majorel’s strong topline momentum continues
Revenues and Net Revenues (9M 2021) Revenues and Net Revenues (Q3 2021)
€m €m
+34% 1,327 +33% 1,282 +30% +30%
451 440
987 965 347 340
9M 2020 9M 2021 9M 2020 9M 2021 Q3-2020 Q3-2021 Q3-2020 Q3-2021
Revenues Net Revenues Revenues Net Revenues
Note: All numbers are based on unaudited and non-reviewed management reporting. 172 Business highlights during 9 months ended September 30, 2021
Continued strong Growth On-going
Digital expansion
growth momentum with existing clients regional expansion
+33% 116% 3 44%
9M Net Revenues growth (yoy) Net Revenue Retention New countries in preparation Global Internet clients1
(9M 2021)
Croatia
66,800 North Macedonia 21%
Team members (Sep 2021) Content Services, Trust & Safety1
Ghana
+50% 9%
Offshore Net Revenues growth Tech & Expert Services1
(9M, yoy)
Note: All numbers are based on unaudited and non-reviewed management reporting.
(1) As % of group Net Revenues for 9M 2021
182 On track to achieve our operational KPI midterm targets
Client mix Delivery mix Product mix
Share of Content Share of Tech &
Share of Global Internet Share of Telco Share of Offshore
Services, Trust & Safety Expert Services
in 2020 in 2020 in 2020 in 2020 in 2020
38% 19% 35% 17% 5%
9M 2021 9M 2021 9M 2021 9M 2021 9M 2021
44% 13% 38% 21% 9%
Midterm target Midterm target Midterm target Midterm target Midterm target
>50% c.10% 45-50% 20-25% 10-15%
Note: All numbers are based on unaudited and non-reviewed management reporting. All operational KPIs are expressed as % of group Net Revenues. 192 Strong like-for-like Net Revenues growth of 17%
Net Revenues bridge 9M 2020 to 9M 2021
€m
+17%
like-for-like 1,282
Net Revenues growth
83
68
166
965
9M 2020 Like-for-like China Business Covid-19 Business 9M 2021
Note: All numbers are based on unaudited and non-reviewed management reporting. Like-for-like comparison includes first time consolidation of Junokai acquisition (2 All segments contributed to Majorel’s growth
Net Revenues bridge 9M 2020 to 9M 2021
€m
9M y-o-y growth +21% +45% N/A +33%
Q3 y-o-y growth +15% +52% N/A +30%
1,282
68
81
965 167
Includes positive
impact from
COVID-19 Business
9M 2020 EASA GEMS CEA 9M2021
EASA = Europe, Africa, South America GEMS = Global English, Middle East and South East Asia CEA = China and East Asia
Note: All numbers are based on unaudited and non-reviewed management reporting.
212 EASA growth in line with expectations
Net Revenues Q3 2020 and Q3 2021 Comments
€m
15% • Expansion with Global Internet Clients
317
276
+6% • Expansion with BFSI clients
Like-for-like Net
Revenues growth
• COVID-19 related business
Q3 2020 Q3 2021
• Continuation of active client portfolio
Net Revenues 9M 2020 and 9M 2021 management
€m
21%
953
786
+11%
Like-for-like Net
Revenues growth
9M 2020 9M 2021
Note: All numbers are based on unaudited and non-reviewed management reporting. Like-for-like comparison includes first time consolidation of Junokai acquisition.
222 Very strong growth momentum in GEMS
Net Revenues Q3 2020 and Q3 2021 Comments
€m
52% • Growth with Global Internet clients
97
64 +52% • In particular strong growth momentum in
Like-for-like Net the Philippines, Canada, US, Malaysia and
Revenues growth India
Q3 2020 Q3 2021 • Strong growth of recently established
country Kenya
Net Revenues 9M 2020 and 9M 2021
€m • Continuation of active client portfolio
44% management
260
180
+45%
Like-for-like Net
Revenues growth
9M 2020 9M 2021
Note: All numbers are based on unaudited and non-reviewed management reporting 232 Growing contribution from CEA business
Net Revenues Q3 2021 Comments
€m
• Expanding footprint in China
27
Growth rate n/a
due to first time • Expansion of digital consumer engagement
consolidation as services and focus on Consumer Products and
of January 1, 2021 digital clients
Q3 2021 • Contribution in line with management
expectations
Net Revenues 9M 2021
€m
68
Growth rate n/a
due to first time
consolidation as
of January 1, 2021
9M 2021
Note: All numbers are based on unaudited and non-reviewed management reporting. 24Today’s agenda
INTRODUCTION TO MAJOREL
FINANCIAL AND BUSINESS PERFORMANCE
1 2021 FULL YEAR GUIDANCE AND MID-TERM OUTLOOK
1 FINAL REMARKS
1 APPENDIX
253 Raising our 2021 Net Revenues target guidance
and keeping our midterm guidance unchanged
€m
Covid-19 Business
First time
consolidation of 1,700-1,750
China Business
9M
+17%1
1,340
1,282m
1,172 +14% in 9M
965m
in 9M
2019 2020 2021E […]
(1) Like-for-like Net Revenues growth 9M 2021 yoy (excl. Covid-19 Business and effects from the first time consolidation of China Business) 263 Raising our 2021 Operating EBITDA target guidance
and keeping our midterm guidance unchanged
€m
Covid-19 Business
290-310
196
128
% Net Above
10.9% +370bps 14.6% 16.5-17.0%
Revenues
2019 2020 2021E […]
(1) As % of Net Revenues. 27Today’s agenda
INTRODUCTION TO MAJOREL
FINANCIAL AND BUSINESS PERFORMANCE
1 2021 FULL YEAR GUIDANCE AND MID-TERM OUTLOOK
1 FINAL REMARKS
1 APPENDIX
284 Key takeaways
1 Strong like-for-like Net Revenues growth (+17% for 9M 2021 and +15% for Q3 2021) ✓
1 Accelerated momentum with Global Internet clients (+58% Net Revenues growth for 9M 2021 and +54% for Q3 2021) ✓
1 Substantial growth in Offshore Delivery and further regional expansion with 3 new countries in preparation ✓
1 Further expansion of digital offerings: Content Services, Trust & Safety and Tech & Expert Services ✓
1 Increased guidance for 2021: Net Revenues expected 1,700m-1,750m and Operating EBITDA 290m-310m ✓
Note: All numbers are based on unaudited and non-reviewed management reporting.
29Today’s agenda
1 INTRODUCTION TO MAJOREL
1 FINANCIAL AND BUSINESS PERFORMANCE
1 2021 FULL YEAR GUIDANCE AND MID-TERM OUTLOOK
1 FINAL REMARKS
1 APPENDIX
30A Free Cash Flow generation in line with our target corridor
€m H1-2021 H1-2020 • Free Cash Flow of €85m, in line with our free
cash flow generation target corridor of 51-56%
Cash flow from operating activities 123 139 of Operating EBITDA
o/w Net Working Capital effects (24) 70
• H1-2020 substantially impacted by Covid-19
add back: Taxes paid 15 5 related liquidity preservations measures
(working capital effect and lower than usual
add back: Other adjustments not included in free cash flow1 (1) 1
Capital Expenditure)
less: Capital Expenditure (30) (16)
• Capital Expenditure of €30m in H1-2021,
% Net Revenues 3.5% 2.6% equivalent to 3.5% of our Net Revenues
(c. 3.8% of our Net Revenues if adjusted for
less: Payment from leases (25) (21)
Covid-19 Business)
less: Scope and other effects2 3 1
• Net Working Capital of €85m
Free Cash Flow 85 109
% Operating EBITDA 55% 155%
(1) Includes additional items other than taxes paid which are included in Cash flow from operating activities as defined by IAS 7, but not included in Free Cash Flow as used in the management reporting, such as cash flows from profit transfer agreements 31
with Bertelsmann affiliates and other. (2) Includes cash effects from scope differences and other simplifications used in management reporting.A Strong balance sheet despite investments in strategic M&A
€m H1-2021 FY-2020 • Net cash position impacted by
• Net cash outflow for strategic M&A
Cash and cash equivalents 216 195
• Dividend payment to shareholders
Liabilities to banks (3) (33)
• €30m bank loan repaid in June
Other financial debt (85) (21)
• Other financial debt increased due to
Net cash position 128 141
additional €65m term loan agreement with
Bertelsmann to fund strategic M&A
Provisions for pensions and similar (46) (50)
Lease liabilities (112) (95) • Undrawn revolving credit facilities of c. €50m
(maturing in November 2022)
Economic Cash/ (Debt) (29) (4)
32A Consolidated Income Statement
€m H1-2021 H1-2020
Revenues 877 642
Other operating income 18 15
External expenses and cost of materials (212) (155)
Personnel costs (529) (432)
Amortization/ depreciation, impairment and reversals on intangible assets, property, plant and equipment and right-of-
(40) (36)
use assets
o/w related to right-of-use assets (22) (20)
Results from investments accounted for using the equity method 0 0
Results from disposals of investments - -
EBIT (earnings before interest and taxes) 114 34
Interest expenses (1) (1)
Other financial expenses (net) (1) (3)
o/w interest expenses on lease liabilities (2) (2)
Earnings before tax 112 30
Income tax expense (27) (10)
Group profit or loss 85 20
33A Consolidated Balance Sheet – Assets
€m H1-2021 FY-2020
Goodwill 91 53
Other intangible assets 22 8
Property, plant and equipment and right-of-use assets 219 190
Investments accounted for using the equity method 3 2
Trade and other receivables - 1
Other non-financial assets 8 2
Deferred tax assets 15 15
Total non-current assets 358 271
Inventories - -
Trade and other receivables 380 307
Other financial assets 7 1
Other non-financial assets 55 56
Current income tax receivables 11 9
Cash and cash equivalents 216 195
Total current assets 669 568
Total assets 1,027 839
34A Consolidated Balance Sheet – Equity & liabilities
€m H1-2021 FY-2020
Subscribed capital 0 0
Capital reserve 256 275
Retained earnings 132 37
Majorel’s shareholders equity 388 312
Non-controlling interests 5 5
Total equity 393 317
Provisions for pensions and similar obligations 46 50
Other provisions 7 5
Deferred tax liabilities 2 -
Financial debt 85 20
Lease liabilities 68 58
Other non-financial liabilities 6 1
Total non-current liabilities 214 134
Other provisions 29 22
Financial debt 2 34
Lease liabilities 44 37
Trade and other payables 144 132
Other non-financial liabilities 177 153
Current income tax payable 24 10
Total current liabilities 420 388
Total equity and liabilities 1,027 839
35A Consolidated Cash Flow Statement
€m H1-2021 H1-2020
Group earnings before interest and taxes 114 34
Taxes paid (15) (5)
Depreciation and write-up of non-current assets 40 36
Change in provisions for pensions and similar obligations - (1)
Change in other provisions 9 6
Change in net working capital (24) 70
Other effects (1) (1)
Cash flow from operating activities 123 139
Investments in intangible assets (4) (1)
Investments in property, plant and equipment (26) (15)
Investments in financial assets (5) -
Investments in purchase price for consolidated investments (56) (1)
Disposal of fixed assets - 1
Cash flow from investing activities (90) (17)
Proceeds from/redemption of other financial debt 34 32
Redemption of lease liabilities (23) (19)
Interest paid (3) (3)
Dividends to Majorel shareholders (19) -
Other effects (3) -
Cash flow from financing activities (14) 10
36A Calculation of Net Working Capital
€m H1-2021 FY-2020
Inventories 0 0
+ Trade accounts receivable 363 291
- Trade accounts payable (121) (104)
Trade working capital 242 187
+ Other accounts receivable and other current assets 57 60
+ Prepaid expenses 14 12
- Other accounts payable (196) (174)
- Deferred income (3) (5)
- Other operating provisions (29) (22)
Other working capital (157) (129)
Net Working Capital1 85 58
Notes: (1) Unaudited
37You can also read
