ROADSHOW PRESENTATION NOVEMBER 2019 DNA AK K A G ROUP 2 NOVEMBER - - PowerPoint PPT Presentation

ROADSHOW PRESENTATION

NOVEMBER 2019

2

NOVEMBER 2019

DNA

AK K A G ROUP

3

NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

1,505 M€

2018 Group revenue Up 12.8% YOY*

>20,000

Skilled Employees Up 35.5% YOY

25

Countries

EU LEADER

Digital & Engineering In Mobility

9.5%

Revenue Organic Growth in FY 2018

* PDS Tech is consolidated as of 1st November 2018

GROUP OVERVIEW 2018

4

NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

THE MAKING OF A EUROPEAN LEADER

Creating AKKA in the automotive sector in France

1984

Reaching

€40M

revenue accelerating diversification in aerospace

1999 INITIAL PUBLIC OFFERING

aeronautics become the main segment

2005

40%

Revenue generated

• utside of

France

2012

AKKA reaches

€1BILLION

in revenue

2015

Becoming a leader in Germany

60%

revenue generated

• utside
• f France

2017

Enhanced diversification in aerospace in the US

2018

5

NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

AKKA TECHNOLOGIES RANKS AMONG THE TOP 5 EUROPEAN PLAYERS IN ENGINEERING CONSULTING

OUR STRENGTHS OUR OFFER OUR CLIENTS/PARTNERS

Largest European OEMs and industrial companies. Support clients in the conception of new products:

• ver entire product design cycle

and the value chain

• in

their international expansion, globalisation and digitalisation

• Boost
• ur

client’s performance through innovation, increased value added, agility & cross-sector expertise.

• Tailored

transnational turnkey projects.

• Through 21 skills centres
• Thanks to 20,000 dedicated

experts worldwide

6

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OPPORTUNITIES FINANCE DNA CLEAR 2022

STRATEGY OF BALANCES

DELIVERING RESULTS SINCE 1999

GEOGRAPHICAL BALANCE CLIENT BALANCE FINANCIAL BALANCE SKILLS BALANCE

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NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

Design

• ffice/

process

1984

Design, powertrain, vehicle architecture Embedded IT (Coframi) ADAS/ Link & Go Downstream aerospace (Aeroconseil)

1995 2006 2007 2009 2011

Mechatronic, electric & hybrids

2012 2015

IoT Digital

2015 2019

BALANCING OUR SKILL-SETS AND ANTICIPATING DISRUPTIVE TECHNOLOGIES

8

NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

MANUFACTURING SECTOR RESHAPED THROUGH DIGITAL CONTINUITY

SERVICE & AFTER SALES DIGITAL MANUFACTURING CONNECTED PRODUCTS DIGITAL ENGINEERING

DIGITAL TWIN

IOT, AI & ROBOTICS ANALYTICS DIGITAL WORKER PRODUCT IV&V

Cybersecurity

9

NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

SMART CONNECTED SOLUTIONS IMMERSIVE TECHNOLOGIES DIGITAL APPLICATIONS DESIGN SYSTEMS SECURITY DATA INTELLINGENCE SHOPFLOOR SOLUTIONS

CONSULTING ENGINEERING

MANUFACTURING

A UNIQUE GLOBAL PLAYER ON THE MOBILITY & SOFTWARE ENGINEERING MARKET

10

NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

Mobility

82%

Automotive 37% Aerospace 34% Suppliers 8% Railways 3%

Energy 4% Life sciences 6% Others 8%

€ 1.7Bn AKKA 2018 pro forma € 1.7Bn

Intl

18%

France

37%

Germany

29%

North America

16%

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NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

STRONG CLIENT DIVERSIFICATION

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NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

COMBINED ACQUISITIONS & ORGANIC GROWTH

AKKA:

+22%

VS SECTOR:

+9%

CAGR 2006-2018*

* Pro forma including PDS Tech

2006 2011 2015 2017 2018

REVENUE (€M)

€1.0B €0.5B €1.3B €1.7B* €0.15B

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NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

160 236 382 333 400 474 827 879 886 1,002 1,123 1,334 1,505

FY06 FY07 FY08* FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18**

Revenues in €M

PROFITABLE GROWTH

* Pro forma before the 2009 divestment ** PDS Tech is consolidated as of 1st November 2018

EBITDA % of Sales 2006 - 2018

Average : 8.7% Always > 7%

Leverage Ratio 2006 - 2018

Average : 1.0x Highest : 2.0x

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OPPORTUNITIES FINANCE DNA CLEAR 2022

SMART CONNECTED SOLUTIONS UNIQUE VISION ON THE INDUSTRY A UNIQUE EDGE ON DIGITAL TECHNOLOGIES STRONG TRACK RECORD IN INTEGRATING ACQUSITIONS CAPACITY TO ANTICIPATE DISRUPTIVE TECHNOLOGY CAPACITY TO DELIVER LARGE TRANSNATIONAL PROJECTS

CONSULTING ENGINEERING

21 SKILL CENTRES DELIVERING TURNKEY SOLUTIONS

UNIQUELY POSITIONED TO DESIGN TOMORROW’S PRODUCTS

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NOVEMBER 2019

CLEAR 2022

I N ACTI ON

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OPPORTUNITIES FINANCE DNA CLEAR 2022

CLEAR 2022

CUSTOMER- ORIENTED

C

Top 20 clients above €50M revenue*

LEADERSHIP IN INNOVATION

L

75% of our activities in the digital field

EXCELLENCE IN DELIVERY

E

Increase projects gross margin by 2%

ATTRACTIVE FOR TALENTS

A

Hire 10,000 talented digital natives

RESULTS- ORIENTED

R

Commited to best-in-class performance

*On average

17

NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

AKKA IN ACTION: CLEAR 2022 TARGETS

DIGITAL ACCELERATION ACCELERATION IN GERMANY NEW SALES ORGANISATION CLIENT DIVERSIFICATION IN AEROSPACE

18

NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

PAVING THE WAY TO CLEAR 2022: A UNIQUE DNA

GROWTH ACCELERATORS Automotive Aerospace Digital

0.9Bn 1.3Bn 1.7Bn 2.5Bn

2014 2017 2018* 2022

PACT 17 CLEAR 22

* AKKA Proforma figures including PDS Tech

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NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

THE AKKADEMY DIGITAL TALENT ACQUISITION FOR OUR CLIENT

• A unique tool to hire digital talents
• Learning Program strengthened
• University Partnerships Program
• Strengthened end-customer focus
• Re-definition of recruitment allocations

ACCELERATING DIGITAL TALENT

• Creation of a Thales AKKAdemy (digital recruitment

platform)

• Advanced discussions ongoing for similar projects

with AKKA top 20 customers

• Strategic alignment with the Strategic Customers

Department

PART OF OUR SOLUTIONS PORTFOLIO

• Franchising concept in European countries:
• Launch of an AKKAdemy in Leipzig to fuel the

centre of digital expertise in Magdeburg

MORE EUROPEAN CAMPUSES

• Total digital talent
• Number of countries / locations
• Client accounts served (per industry?

SUCCESSFUL DEPLOYMENT

20

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OPPORTUNITIES FINANCE DNA CLEAR 2022

AKKA IN ACTION: CLEAR 2022 TARGETS

Revenue

€2.5BN

Operating profit from recurring activities

€250M

Free cash flow generation

€150M

21

NOVEMBER 2019

OPPORTUNITIES

COMB I NI NG DI G I TAL & E N G I NEE RI NG

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OPPORTUNITIES FINANCE DNA CLEAR 2022

STRONG DIGITAL OUTLOOK IN GERMANY

C A S E

Shared & services Electric Connected Autonomous

DESIGN & DIGITAL FACTORY NEW BUSINESS MODELS CONNECTED FLEET URBAN AIR MOBILITY ELECTRIFICATION

23

NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

ON TRACK TO BECOMING A LEADER IN NORTH AMERICA

SUCCESS OF PDS TECH INTEGRATION SYNERGIES above expectations US CUSTOMERS Boeing, Honeywell, United Technologies EUROPEAN CUSTOMERS Daimler, Porsche

$300 MILLION CONTRACT with one of our main US customers in Aerospace

STRONG GROWTH WITH

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NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

STRATEGIC CUSTOMERS DEPARTMENT

DRIVING GROWTH BY SERVING CUSTOMERS’ NEEDS GLOBALLY WITH A COMPREHENSIVE SOLUTIONS PORTFOLIO A comprehensive solutions portfolio wherever our customers need us

25

NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

MAIN CONTRACTS WON IN H1 2019

• Digital
• ADAS
• €60M
• Digital Analytics
• Embedded Electronics
• EV Battery Production
• €100M
• Framework Contract
• $300M Contract

in Aerospace in US

AUTO AERO

• E2S + MACV8

Framework contract

• Key topics: IoT, Digital

Factory

26

NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

LINK & FLY

27

NOVEMBER 2019

Q3 2019

HI G HLI G HTS

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OPPORTUNITIES FINANCE DNA CLEAR 2022

STRONG PERFORMANCE IN Q3 2019

€441.1M

GROUP

+7.4%*

* Pro-forma growth

€123.5M +2.4%*

GERMANY

€75.9M +7.8%*

INTERNATIONAL

€78.4M +16.8%*

NORTH AMERICA

€163.3M

FRANCE

+7.0%*

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NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

€1,332.5M

GROUP

+8.0%*

* Pro-forma growth

€378.9M +1.7%*

GERMANY

€228.7M +6.7%*

INTERNATIONAL

€230.8M +22.7%*

NORTH AMERICA

€494.1M

FRANCE

+7.7%*

STRONG PERFORMANCE IN YTD 2019

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OPPORTUNITIES FINANCE DNA CLEAR 2022

Q3 2019: REVENUE BY BU

€M Q3 2019 REVENUE Q3 2018 REVENUE % CHANGE ORGANIC PRO FORMA

FRANCE 163.3 152.6 7.0% 7.0% 7.0% GERMANY 123.5 120.6 2.4% 2.4% 2.4% NORTH AMERICA 78.4 6.1 1,186.6% 35.1% 16.8% INTERNATIONAL 75.9 70.4 7.8% 6.9% 7.8%

TOTAL GROUP 441.1 349.8 26.1% 5.9% 7.4%

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OPPORTUNITIES FINANCE DNA CLEAR 2022

YTD 9M 2019: REVENUE BY BU

€M YTD 9M 2019 REVENUE YTD 9M 2018 REVENUE % CHANGE ORGANIC PRO FORMA

FRANCE 494.1 458.7 7.7% 7.7% 7.7% GERMANY 378.9 372.6 1.7% 1.7% 1.7% NORTH AMERICA 230.8 16.2 1,327.4% 43.3% 22.7% INTERNATIONAL 228.7 214.2 6.7% 6.2% 6.7%

TOTAL GROUP 1,332.5 1,061.7 25.5% 5.9% 8.0%

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NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

YTD 9M 2019

€ 1,332.5M

Intl

17%

France

37%

Germany

28%

North America

18% YTD 9M 2019: A WELL BALANCED REVENUE STREAM

+5.9%

TOTAL GROUP ORGANIC GROWTH France +7.7% Germany +1.7% North America +43.3% International +6.2%

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OPPORTUNITIES FINANCE DNA CLEAR 2022

Mobility

80%

Automotive 33% Aerospace 31% Suppliers 12% Railways 4%

Energy 4% Chemistry and health 5% Others 11%

YTD 9M 2019

€ 1,332.5M

YTD 9M 2019: STRONG DIVERSIFICATION

ORGANIC GROWTH (YTD 9M 2019)

Auto

+6%

Aero

+10%

Railways

+17%

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NOVEMBER 2019

FINANCIAL RESULTS

H1 2 0 1 9

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OPPORTUNITIES FINANCE DNA CLEAR 2022

H1 2019: VERY STRONG PERFORMANCE

€891.4M

H1 2019 REVENUE

+25% YoY

€60.0M

OPERATING PROFIT

+23% YoY

EPS

€1.31

+38% YoY

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NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

BPS

+40

at 7.3%

GROUP OPERATING MARGIN Excl. PDS:

H1 2019: PROFIT FROM BUSINESS OPERATIONS

France Germany North America Intl H1 2018 H1 2019

At 7.7%

+40 BPS

At 10.5%*

+50 BPS

At 11.1%

+40 BPS

At 3.6%

+250 BPS

* Incl. CIR

37

NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

BECOMING A LEADER IN NORTH AMERICA STRONG INCREASE OF PDS TECH PROFITABILITY

€161M

PDS TECH H1 2019 REVENUE

23%

PDS TECH REVENUE GROWTH PDS TECH H1 2019 OPERATING MARGIN

3.6%

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NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

AKKA IN H1 2019: NET INCOME UP +41%

€M H1 2019 H1 2018 % CHANGE

REVENUE 891.4 711.9 25.2% PROFIT FROM ORDINARY ACTIVITIES 59.2 48.8 21.3% IFRS 16 Impact 0.8 PROFIT FROM ORDINARY ACTIVITIES (Incl. IFRS 16) 60.0 48.8 22.9% % REVENUE 6.7% 6.9%

• 20 bps

OTHER NON-RECURRING (11.5) (8.0) FREE SHARES, STOCK OPTIONS (3.4) (3.7) OPERATING INCOME 45.1 37.1 21.6% % REVENUE 5.1% 5.2%

• 10 bps

FINANCIAL RESULT (8.2) (9.4) PRE-TAX INCOME 61.9 27.7 33.5% TAX EXPENSE (10.6) (7.1) CONSOLIDATED NET INCOME 26.3 20.6 27.8% MINORITY INTEREST (0.04) (1.9) GROUP NET INCOME 26.3 18.7 40.8% EPS 1.31 0.95 38.2%

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NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

H1 2019: HEALTHY BALANCE SHEET x2.3

LEVERAGE

Assets Liabilities

In €M H1 2019 H1 2018

GOODWILL 611.3 286.1 INTANGIBLE ASSETS 20.4 19.4 PROPERTY, PLANT & EQUIPMENT 93.7 89.6 Right of use/ IFRS16 155.7 OTHER NON CURRENT ASSETS 156.1 153.1 NON-CURRENT ASSETS 787.3 548.2 INVENTORIES 9.3 8.3 RECEIVABLES 397.2 371.0 CASH AND CASH EQUIVALENTS 187.3 278.2 CURRENT ASSETS 593.8 657.5 TOTAL ASSETS 1,381.1 1,205.7

In €M H1 2019 H1 2018

GROUP SHARE OF EQUITY 267.8 237.1 NON-CONTROLLING INTERESTS 0.4 61.3 SHAREHOLDERS’ EQUITY 268.2 273.4 NON-CURRENT LIABILITIES 644.6 544.3 CURRENT PROVISIONS 2.9 4.5 OTHER CURRENT FINANCIAL LIABILITIES 83.5 7.7 CURRENT LEASE LIABILITIES/IFRS16 28.8 OTHER CURRENT LIABILITIES 353.1 375.8 CURRENT LIABILITIES 468.3 388.0 TOTAL LIABILITIES 1,381.1 1,205.7

40

NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

NET DEBT 30th JUNE 2019

368.9 M€

NET DEBT (€M)

131%

GEARING

CP 5% SSD 93%

DEBT PROFILE (%) AS OF 30/06/2019

RCF: €225M (not drawn as of 30/06/2019) NEU CP ISSUE: €275M potential unused DEBT CHARACTERISTICS:

• Average maturity of 3.4 years
• Average cost of debt: 1.7%
• Leverage H1 2019: 2.26x *
• Gearing H1 2019: 131% *

52 7.5

317.5 127.5

5 200 11.4 25 2019 2021 2022 2023 2024 2027 SSD UNDRAWN RCF PDS RCF CP

*without IFRS16

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NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

NET DEBT SEASONALITY(€M)

30 76 46 109 94 141 97 223 195 244 279 369

FY 13 H1 14 FY 14 H1 15 FY 15 H1 16 FY 16 H1 17 FY 17 H1 18 FY 18 H1 19

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NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

PAST 12 MONTHS: EVOLUTION OF NET CASH POSITION (€M)

278.2 187.3 125.7 (32.7) (14.9) (25.6) (119.5) (13.8) 12.8 (22.9)

NET CASH 30/06/18 CASH FLOW CHANGE IN WORKING CAPITAL TAXES CAPEX ACQUISITIONS & CHANGE IN SCOPE DIVIDENDS FINANCING ACTIVITIES FINANCIAL INTERESTS & OTHER NET CASH 30/06/19

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NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

FINANCING CAPACITY

€790M

GROSS CASH 30/06/2019

€187M

CF*

€233M

+

* Credit Facility ** New Credit Facility O/W 70M€ should be finalized in Q3

+

CF**

€370M

PAVING THE WAY TO CLEAR 2022: STRONG CAPACITY TO FUEL GROWTH

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NOVEMBER 2019

OPPORTUNITIES FINANCE DNA CLEAR 2022

2019 TARGETS CONFIRMED

0% 10%

Organic growth

≥ 6%

Operating margin

≥ 8%

Free cash flow generation

≥ 5%

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NOVEMBER 2019

THANK YOU!

Q&A SESSION

46

NOVEMBER 2019

CONTACT

akka-technologies.com

akka-technologies @akka_tech AKKATechnologies1

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NOVEMBER 2019

DISCLAIMER

• This presentation does not contain or constitute an offer of securities for sale or an invitation or inducement to invest

in securities in 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.

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NOVEMBER 2019

APPENDICES

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OPPORTUNITIES FINANCE DNA CLEAR 2022

NOVEMBER 2019

H1 2019: REVENUE BY BU

€M H1 2019 REVENUE H1 2018 REVENUE % CHANGE ORGANIC PRO FORMA

FRANCE 330.8 306.0 8.1% 8.1% 8.1% GERMANY 255.4 252.0 1.4% 1.4% 1.4% NORTH AMERICA 152.4 10.1 1,412.5% 48.2% 26.1% INTERNATIONAL 152.8 143.8 6.2% 5.8% 6.2%

TOTAL GROUP 891.4 711.9 25.2% 5.9% 8.3%

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OPPORTUNITIES FINANCE DNA CLEAR 2022

NOVEMBER 2019

REVENUE BY QUARTER (€M)

268.3 281.8 272.9 299.5 328.3 338.2 310.3 357.6 353.9 358.0 349.8 443.7 446.3 445.2 441.1

Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19

+26.1%

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OPPORTUNITIES FINANCE DNA CLEAR 2022

NOVEMBER 2019

H1 2019: PROFIT FROM BUSINESS OPERATIONS

H1 2019 H1 2018 €M % of revenue €M % of revenue Growth FRANCE 24.9 7.5% 21.9 7.2% 12.3% GERMANY 19.7 7.7% 18.5 7.3% 4.3% NORTH AMERICA 5.6 3.6% 0.1 1.1% 5,400% INTERNATIONAL 17,0 11.1% 15.4 10.7% 9.7% OTHER (7.1) (7.1)

TOTAL GROUP 60.0 6.7% 48.8 6.9% 23.0%

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OPPORTUNITIES FINANCE DNA CLEAR 2022

NOVEMBER 2019

H1 2019: IFRS 16 impact

IN €M H1 2019 (W/O IFRS 16) IFRS 16 IMPACT H1 2019 (IFRS 16)

EBIT 59.2 6.6% 0.8 60.0 6.7% EBITDA 69.4 7.8% 16.3 85.7 9.6% FINANCIAL RESULT

• 6.5
• 1.7
• 8.2

NET RESULT 27.1 3.0%

• 0.8

26.3 2.9% NET DEBT 618.9 41.4% 157.4 526.3 59.0% LEVERAGE 2.26x 2.96x COVENANT <3.5x <4.5x

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OPPORTUNITIES FINANCE DNA CLEAR 2022

NOVEMBER 2019

H1 2019: HEALTHY BALANCE SHEET

In €M H1 2019 H1 2018

GOODWILL 611.3 286.1 INTANGIBLE ASSETS 20.4 19.4 PROPERTY, PLANT & EQUIPMENT 93.7 89.6 Right of use/ IFRS16 155.7 NON-CURRENT FINANCIAL ASSETS 38.8 35.8 AFFILIATED COMPANIES & JV 47.4 46.6 OTHER NET LONG-TERM ASSETS 35.1 61.4 DEFERRED TAX ASSETS 34.8 34.3 NON-CURRENT ASSETS 787.3 548.2 INVENTORIES 9.3 8.3 ACCOUNTS RECEIVABLE 302.6 254.8 OTHER RECEIVABLES 94.6 116.2 CASH AND CASH EQUIVALENTS 187.3 278.2 CURRENT ASSETS 593.8 657.5 TOTAL ASSETS 1,381,1 1,205.7

x2.3

LEVERAGE

In €M H1 2019 H1 2018

GROUP SHARE OF EQUITY 267.8 237.1 NON-CONTROLLING INTERESTS 0.4 61.3 SHAREHOLDERS’ EQUITY 268.2 273.4 NON-CURRENT ACCRUALS 28.7 26.0 OTHER NON-CURRENT LIABILITIES 487.2 518.3 NON-CURRENT LEASE LIABILITIES/IFRS16 128.7 NON-CURRENT LIABILITIES 644.6 544.3 CURRENT ACCRUALS 2.9 4.5 OTHER CURRENT FINANCIAL LIABILITIES 83.5 7.7 CURRENT LEASE LIABILITIES/IFRS16 28.8 TRADE PAYABLES 102.4 106.4 TAX AND SOCIAL SECURITY 203.4 222.6 OTHER LIABILITIES 47.3 46.8 CURRENT LIABILITIES 468.3 388.0 TOTAL LIABILITIES 1,381.1 1,205.7

Assets Liabilities

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OPPORTUNITIES FINANCE DNA CLEAR 2022

NOVEMBER 2019

H1 2019: EVOLUTION OF NET CASH POSITION (€M)

271.8 187.3 58.9 (102.1) (9.0) (14.3) (14.2) 3.1 (6.9)

NET CASH 31/12/18 CASH FLOW CHANGE IN WORKING CAPITAL TAXES CAPEX ACQUISITIONS & CHANGE IN SCOPE FINANCING ACTIVITIES FINANCIAL INTERESTS & OTHER NET CASH 30/06/19

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NOVEMBER 2019

76 67 75 64 66 54 59 53 55 53 52

H1 2014 FY 2014 H1 2015 FY 2015 H1 2016 FY 2016 H1 2017 FY 2017 H1 2018 FY 2018 H1 2019

DSO (DAYS SALES OUTSTANDING)

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OPPORTUNITIES FINANCE DNA CLEAR 2022

NOVEMBER 2019

FACTOR (DAYS OF REVENUE)

37 32 41 37 42 34 49 40 51 52

FY 2014 H1 2015 FY 2015 H1 2016 FY 2016 H1 2017 FY 2017 H1 2018 FY 2018 H1 2019

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OPPORTUNITIES FINANCE DNA CLEAR 2022

NOVEMBER 2019

HEADCOUNT (END OF PERIOD)

12,133 13,055 15,180 17,144 20,901 14,913 15,180 15,515 16,288 16,619 17,144 21,019 20,904 20,624 20,901 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19

+1.3%

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OPPORTUNITIES FINANCE DNA CLEAR 2022

NOVEMBER 2019

TURNOVER RATE (YTD)

17.6% 17.9% 17.6% 17.1% 17.7% 18.0% 17.6% 17.2% 18.5% 19.3% 19.2% 20.1% 20.8% 23.3% 23.1%

Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18* Q1 19* Q2 19* Q3 19*

• 20 bps

* Excluding PDS Tech

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NOVEMBER 2019

UTILISATION RATE (YTD)

87.8% 88.9% 89.5% 89.6% 88.9% 89.6% 89.6% 89.7% 88.9% 89.7% 89.9% 89.6% 88.3% 89.1% 89.5%

Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18* Q1 19* Q2 19* Q3 19*

+40 BPS

* Excluding PDS Tech

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OPPORTUNITIES FINANCE DNA CLEAR 2022

NOVEMBER 2019

GLOSSARY

Cash flow from

• perations

before tax and financing costs (EBITDA): operating profit adjusted for additions to depreciation and amortization. EPS (Earnings Per Share): group net income divided by weighted average number

• f

shares

• utstanding less treasury stocks.

Free cash flow: EBITDA +/- change in working capital – net financial charges and taxes paid –

• capex. Free cash flow generation is measured as %
• f total revenue.

Leverage: ratio of net consolidated financial debt to EBITDA. Net Debt: The aggregate

• f

cash and cash equivalents,

• verdrafts

and short-term bank borrowings, non-current and debt, and financial instruments. surplus cash/(net debt) does not include non-current and current lease obligations (IFRS 16 impact). Operating profit: profit form

• rdinary

activities calculated before non-recurring items and expenses relating to stock options and free shares. Operating margin: ratio of operating profit to revenue. Organic growth: Revenue growth at constant scope and exchange rates. Pro forma growth: revenue growth in North America at constant exchange rate and including PDS Tech H1-18 revenue in total H1-18 revenue. PDS Tech is consolidated as of 1st November 2018.

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