PRESENTATION OF THE FIRST-HALF RESULTS - 17 SEPTEMBER 2020 - Infotel
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PRESENTATION
OF THE FIRST-HALF
RESULTS
17 SEPTEMBER 2020
CONTENTS
1. RESILIENT IN AN EXCEPTIONAL ENVIRONMENT
2. H1 2020 RESULTS
3. STRATEGY AND OUTLOOK
4. STOCK MARKET INFORMATION
Investor presentation – September 2020 © Infotel 2
1. RESILIENT IN AN EXCEPTIONAL ENVIRONMENT Investor presentation – September 2020 © Infotel 3
Resilient in an exceptional environment
High level of flexibility in
Controlled impact from
the management of
the health crisis
projects
Agile management of Satisfactory
resources performances
Investor presentation – September 2020 © Infotel 4
Activity showed resilience despite the crisis
€9.0m
€118.4m Op. income
Revenue
7.6% of revenue
-3.2%
€4.8m
€114.2m
Net income, Group
Services revenue
share
-3.4% 4.0% of revenue
€4.2m
2,399
Software revenue Staff members
Employees and
+2.9% subcontractors at
30 June 2020
Revenue forecast to decline by 6.7% across the entire
sector in 2020 – estimate by Syntec Numérique on 7 July 2020
Investor presentation – September 2020 © Infotel 5A very changeable situation between March and June 2020
May and June
▪ Gradual decrease in use of part-time work
▪ Freeze on recruitment
▪ Enhanced client monitoring
▪ No lay-offs
▪ Arbitrage concerning subcontractors
Mid-March and April
▪ Termination or resizing of certain client
contracts
▪ Most employees working from home
▪ Use of part-time work for more than 300
employees
Investor presentation – September 2020 © Infotel 6Services: Mixed impact from Covid-19 depending on the sector/client
Breakdown of 2019 revenue Breakdown of H1 2020 revenue
by sector as % by sector as %
▪ Growth in the
Administration
Banking sector
Administration
2.1% 3.0% (BNP, i-BP, Banque
Services/ Services/ de France, etc.)
Transport Transport
21.2% 17.4% ▪ Decrease in the
Banking/ Banking/ Transport/Services
Finance Finance sector
36.1% 39.8%
▪ Slight fall in
Industry with the
end of certain
Industry Airbus contracts and
26.2% no change at PSA
Industry Insurance/ Insurance/
28.2% Pensions Pensions
12.5% ▪ Air France:
13.6%
decrease in revenue
and reduction in the
number of service
providers
Investor presentation – September 2020 © Infotel 7Services: €114.2m (-3.4%)
Geographical breakdown
of revenue in France
in €m
North East Monaco
3.3 2.6
▪ Good performances
in Paris, the West
West and Monaco
20.4
▪ Mixed
performances in
Paris
South East 49.7 the South West
6.6 and South East
64%
of activity is
fixed-price South West
30.7
Investor presentation – September 2020 © Infotel 8A temporary halt in recruitment and adjustment of outsourcing
Change in average headcount
-0.3%
1,736 1,721 1,716
1,697
Average employee
Period
headcount
H1 2019 1,721
H2 2019 1,753
Q1 2020 1,736
Q2 2020 1,697
Q1 2020 Q2 2020 H1 2019 H1 2020
Investor presentation – September 2020 © Infotel 9A temporary halt in recruitment and adjustment of outsourcing
Inter-contract
Changes in subcontracting rate
and personnel expenses
(as a % of revenue)
3.2%
Personnel
Subcontracting
82.7% 83.5%
Changes in subcontracting
Period Overall headcount
890
44.2 43.5
H1 2019 2,539
H2 2019 2,588
680
Q1 2020 2,626
38.5 40.0
Q2 2020 2,377
Q1 2020 Q2 2020 H1 2019 H1 2020
At the Services arm, time between contracts is defined in days as a proportion of the potential work time
(excluding paid leave, unpaid leave and RTT days) of directly billable employees.
Investor presentation – September 2020 © Infotel 10Increase in Software sales: €4.2m, +2.9%
Breakdown of software sales
in H1 2020
in €m
1.8
▪ IBM royalties
remained stable
2.4
IBM licenses Licenses excl. IBM
Investor presentation – September 2020 © Infotel 112. H1 2020 RESULTS Investor presentation – September 2020 © Infotel 12
Quarterly revenue growth
Revenue growth
in €m
65.98
2.34
52.47
1.88
63.63
50.59
Q1 2020 Q2 2020
Services Software
Investor presentation – September 2020 © Infotel 13H1 2020 results
H1 2019 H1 2019
Simplified income statement (€m) H1 2020 % change
IFRS IC* reported
Revenue 118.4 122.3 122.3 -3.2%
Personnel expenses (51.5) (54.0) (54.0) -4.6%
External expenses (53.0) (53.7) (53.5) -1.4%
EBITDA 11.9 12.3 12.5 -3.3%
% of revenue 10.1% 10.1% 10.2%
Depreciation, amortisation, and provisions (3.9) (2.9) (3.1) +32.8%
Current operating income 8.0* 9.5 9.5 -16.2% *10.0 excl.
free shares
% of revenue 6.7% 7.8% 7.8%
Operating income 9.0* 9.5 9.5 -4.9% *11.0 excl.
free shares
Operating income - Services 6.8 8.2 1.3 -16.9%
Operating income - Software 2.2 1.3 8.2 +72.0%
Financial income (0.2) (0.1) (0.03)
Income tax (3.9) (4.3) (4.3) -9.0%
* Decision by IFRS IC on application with
retroactive effect to 1 January 2019. Net income, Group share 4.8 4.9 5.0 -3.1%
% of revenue 4.0% 4.0% 4.1%
Investor presentation – September 2020 © Infotel 14Breakdown of H1 2020 current operating income
in €m
9.51 3.91 0.75 0.36
2.86 0.71
0.16
7.97
COI Revenue Personnel External Free Dep./Amort. Dep./Amort.
COI
H1 2020 expenses expenses shares & Prov. H1 2020
H1 2019 IFRS 16
o/w granted
outsourcing
Investor presentation – September 2020 © Infotel 15A solid financial structure
Consolidated balance sheet H1 2019 H1 2019 H1 2019 H1 2019
H1 2020 Consolidated balance sheet H1 2020
ASSETS (€m) IFRS IC* reported IFRS IC* reported
LIABILITIES (€m)
Non-current assets 59.2 40.4 38.0
Shareholders’ equity 92.2 83.2 83.2
o/w goodwill 11.4 12.1 12.1 Non-current liabilities 33.9 17.5 15.0
o/w rights of use 31.8 15.6 13.3 o/w lease liabilities 29.8 13.3 10.9
o/w intangible assets 7.5 7.3 7.3 Current liabilities 78.9 75.5 75.6
o/w PPE 5.6 2.8 2.8 o/w current lease liabilities 2.9 2.4 2.4
Current assets 145.8 135.8 135.8
o/w operating liabilities 20.0 21.7 21.7
o/w cash and cash equivalents 74.6 62.5 62.5
o/w tax and social charges 56.0 51.4 51.4
TOTAL ASSETS 205.0 176.2 173.8 TOTAL LIABILITIES 205.0 176.2 173.8
* Decision by IFRS IC on application with
retroactive effect to 1 January 2019.
No state-backed loans
Investor presentation – September 2020 © Infotel 16A cash-generating business
H1 2019 H1 2019
Cash flow (€m) H1 2020 IFRS IC* reported
Cash flow before taxes 14.6 13.9 14.1
Taxes paid (4.9) (3.9) (3.9)
Change in WCR 2.4 (5.3) (5.3)
Cash flow from operating activities 12.1 5.0 5.0
Acquisitions of property, plant and equipment and intangible
(3.4) (1.6) (1.6)
assets
Impact of changes in scope - (1.4) (1.4)
Cash flow from investing activities (3.4) (3.5) (3.5)
Cash flow from financing activities (8.6) (11.7) (11.9)
o/w dividends paid to shareholders (7.1) (10.6) (10.6)
o/w repayment of lease liabilities (1.3) (1.0) (1.2)
Change in cash and cash equivalents 0.1 (10.3) (10.3)
Opening cash position 74.6 72.8 72.8
Closing cash position 74.6 62.5 62.5
* Decision by IFRS IC on application with
retroactive effect to 1 January 2019.
Investor presentation – September 2020 © Infotel 173.STRATEGY AND OUTLOOK Investor presentation – September 2020 © Infotel 18
An ambitious recovery plan for the Services activity
▪ Agile management of resources
▪ Geographical reassignment of teams
▪ Reduction in the number of subcontractors and in costs
▪ Plan covering home-working and optimisation of human resources
▪ Selective resumption of recruitment
▪ Responsiveness at all levels
▪ Inter-contract rate remaining low at < 4%
▪ Reduction in part-time work to < 150 with a target of < 50 in Q4
▪ Reduction of costs
▪ Standardise and digitise processes
▪ Adjust investment in line with the situation
▪ Targeted and closely-managed sales strategy
• Multiply commercial contacts
▪ Proximity management
▪ Set up an executive management committee
▪ Involvement of operational managers
Investor presentation – September 2020 © Infotel 19Software: effective take-off of Orlando
• Reference listing already acquired
• Air France, ATR, etc.
• Signature of a major contract in September
• American Airlines Group
• Contracts in the process of being signed Signature
• in North America
• in Gulf countries
• More than 100 contracts to be converted
Investor presentation – September 2020 © Infotel 20Targets
Recovery of
growth in
2021
Keep
operating
margin at the
same level as
Limited fall in 2019
in revenue:
between
-7% and
-8%
Investor presentation – September 2020 © Infotel 21Our ambition
To be the go-to partner
for the digital transformation
of key accounts in Europe
Investor presentation – September 2020 © Infotel 22Strategic priorities
Broaden our Services offering among clients
Extend our Software offering
Ramp up our points of contact at contracting clients
Preserve our technical DNA while adding a client/sector/operational-
focused dimension
Push ahead with our expansion through organic and
acquisition-led growth
Make the most of our human capital
Investor presentation – September 2020 © Infotel 234.STOCK MARKET INFORMATION Investor presentation – September 2020 © Infotel 24
Infotel and the stock market
Shareholder structure
(as of 30/06/2020 - based on 6,734,452 shares)
Composition of free float at
17/01/20
Free-float • UCITS: 34.5%
63.4% • Foreign depositaries: 43.5%
• Individual shareholders: 12.4%
• Companies: 9.5%
Free share plan for
seven key persons in
Executive management team
management
36.6% 77,497 new shares
VR 51.1% issued
on 29/01/2020
+
86,823 awarded on
23/1/2020
Investor presentation – September 2020 © Infotel 25Stock history
Change in stock price and volumes
Stock information
(rolling one-year basis)
ISIN code FR 0000071797
Reuters ETFO.PA
Bloomberg INF.FP
Compartment Euronext B – SRD long only
Index EnterNext© PEA-PME 50
Number of shares 6,734,452
Average daily trading volume
€169k
since 01/01/2020
Share price at 15/09/2020 €40.70
Market cap. at 15/09/2020 €272m
Highest price over 12 months €43.95 (24/01/2020)
Lowest price over 12 months €22.05 (16/03/2020)
Investor presentation – September 2020 © Infotel 26Financial Agenda
Publications
21 October 2020 Q3 2020 revenue
27 January 2021 Q4 2020 revenue
Investor meetings
20 & 21 October 2020 Midcap Event Paris
GD Forum on family-owned
5 November 2020
companies
18 November 2020 Euroland Forum
3 December 2020 Portzamparc Forum
Investor presentation – September 2020 © Infotel 27Managed transformation. Passionate innovation.
5.PROFILE Investor presentation – September 2020 © Infotel 29
Driving the digital transformation of key accounts
Solid partnerships with top
blue chips
Driven by
A growing Proximity cutting-edge
market(1) Agile growth technologies
Innovation
€56.4bn in revenue from
French market in Co-creation
2018
Big data Mobile
4% growth expected in
2020
+2,000 companies Cloud Analytics
registered by digital service
providers’ union Syntec
Numérique, accounting for
80% of total sector
revenues
AIRBUS BNP PARIBAS
474,000 employees,
Artificial Security
over 28,000 new jobs BPCE Banque de France
created in 2018 Intelligence
Air France PSA
Arkéa Crédit Mutuel EPO
GENERALI COVEA (MMA GMF MAAF)
(1)KPMG - Syntec Numérique report - “Grand angle ESN” (DSP sector survey)
“Panorama sur la vitalité et les tendances des ESN” (Overview of vitality and trends in DSP sector)
- 2nd edition - September 2019
Investor presentation – September 2020 © Infotel 30Our business model creates value
OUR DNA OUR STRENGTHS OUR ACHIEVEMENTS
Revenue growth Growth in Net Income, Group Share
(€m) (€m)
Customer proximity 16 local branches 248.4
in France
13.0
Long-term Business model based on
2.4
partnership service centres 24.8
5 countries: US, 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019
Consulting, specialised Netherlands, Germany,
and technical services UK, France Change in dividend 1.60
(€)
Flexible and agile 730 clients 1.05
0.46
Talent culture 2,399
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
employees
Investor presentation – September 2020 © Infotel 31Software: constantly innovating to serve our clients
1st smart index 1st technical
Ultrafast Db2 data
engine aircraft
download
documentation
HPU/InfoUnload
Pertinent search solution Orlando
Quality assurance for Db2 1st artificial intelligence engine for
A
B
C
applications D
Db2 maintenance
DB/IQ IdbA
Electronic archiving preserving the 1st data volume
probative value of data simulator for Db2
ARCSYS INFOSCOPE
Investor presentation – September 2020 © Infotel 32You can also read
