SIIGroup
RéunionSFAF Meetingd'agence
2019-2020 Annual Financial Statements
June 10, 2020
Toulouse
Eric Matteucci - Chairman of the Management Board
10DidieroctobreBonnet - International2019 Regional Director
Charles Mauclair - France Regional Director
A major player in engineering consulting
Extensive technological skills at the service of consulting and engineering activities
SII covers a wide range of technological skills
Embedded IT | Cybersecurity |
Information Systems / NICT | Infrastructure |
via 3 approaches:
Research | Engineering | Systems |
and consulting | integration |
with an Build and/or Run intervention capacity
for customers in IT and R&D projects.
SII Group - June 10, 2020 | 2 |
A varied portfolio
of loyal customers
Customers present on a multitude of markets…
… the surveys for which show a high level of satisfaction*…
Services (6.5%)
Industries (9.3%)
Automotive (5.9%)
Transportation (4.5%)
Retail (3.8%)
Healthcare (4.5%)
Energy (6.6%)
Aerospace
Space Defense
(23.2%)
Banking
Insurance
(19.5%)
Telecoms & Media (13.4%)
2017-2019:93.1 %
2018-2019:90.4 %
2019-2020:92.1 %
Allmost all of our business is with large accounts
SII Group - June 10, 2020
*Regular monitoring of customers via surveys. | 3 |
A decentralized structure
in France and worldwide
Within the SII group, the decentralised organisation enables opportunities to be seized at a local level for coordination at a group level.
Since 2019, a new organisation has been rolled out at a group level and allows:
- agencies/subsidiaries to continue to be the central unit,
- managers to continue to be decision-makers,
- each agency to benefit from the group's strength for certain functions and thus provide them with additional tools and resources.
Thus, the SII group benefits from a strong local network at the service of customers:
In France, the group has 9 agencies and 22 local sites with 63% of the workforce based in the regions.
Overseas, the group has a presence in 17 countries with 88 local sites.
SII Group - June 10, 2020 | 4 |
Our employees…
… Our main asset
Great attention to the HR policy
A recognised employer brand: #Fungénieurs Targeted actions for improving quality of life at work
Group employees*
For France*
8,601
(+4,7% vs 2018-2019)
including
7,087
consultants
* As of 31/3/2020
SII Group - June 10, 2020
4,207 | 1,352 | Hiring | +21.9% |
employees | (1,266 the previous year) | ||
A trend in line with our targets | |||
(+6,0% vs | |||
2018-2019) |
93
91
89
87
85
83
81
79
77
75
Mar-20
Feb-20
Jan-20
Dec-19
Nov-19
Oct-19
Sep-19
Aug-19
Jul-19
Jun-19
May-19
Apr-19
Mar-19
Feb-19
Jan-19
Dec-18
Nov-18
Oct-18
Sep-18
Aug-18
Jul-18
Jun-18
May-18
Apr-18
Mar-18
Feb-18
Jan-18
Dec-17
Nov-17
Oct-17
Sep-17
Aug-17
Jul-17
Jun-17
May-17
Apr-17
Monthly change in ratio of billable hours (excl. Paid leaves (France)
Billed / Billable (excl. Paid leaves)
Staff turnover
(+21.9% the previous year)
For the 3rd year running in France, SII was recognised as a Great Place to Work. SII holds 3rd place in the ranking and is the only Digital Services Company listed in the category of more than 2,500 employees.
5
I
Highlights
-
2019-2020financial results
III Outlook
A 2019/2020 financial year on the increase
… despite the end of the financial year being impacted by the Covid-19 crisis
Revenue
Change | Organic | |
growth | ||
€676.3m | +7.1% | |
+7.3% | ||
vs 2018-2019 | vs 2018-2019 | |
+ 8.9%
for the first 9 months
Growth in turnover in line with the targets announced at the start of the financial year on 11 June 2019 but below the targets revised on 11 February 2020 owing to the health crisis.
Operating income
-7.6%
vs 2018-2019
SII Group - June 10, 2020 | 7 |
New referrals for the year
… result of an effective commercial conquest strategy
The SII group enjoys a unique position and an innovation capacity at the service of its customers that allow it to
win new references in a multitude of sectors.
Telecom | Banking | Defense | Services | Automotive | Electronic |
Insurance | |||||
OVH | Groupe BPCE | Naval Group | IBM | Porsche | Siemens |
Orange DREAM | |||||
Orange DIF | Banque du Canada | Ultra Electronics | Volkswagen | ||
La Banque Postale | |||||
Société Générale | |||||
Transactis | |||||
AG2R | |||||
Citibank Chili |
SII Group - June 10, 2020 | 8 |
The responsiveness of the new managerial organisation
in the context of the Covid-19 crisis
The managerial organisation recently set up:
an asset in the management of the crisis and for the development of synergies
In this context, this organisation has enabled coordinated management:
at a sectoral level with collaboration between local teams and group teams
by teams with the deployment of training or the re-sectoring of profiles and their geographic movements
concerning the response to customers' needs thanks to a development of cross-cutting offers between local teams and the development department
SII Group - June 10, 2020 | 9 |
The resources implemented for business continuity
in a lockdown context
Setting up of a business continuity system that ensures the health and safety of staff and partners
Application of government measures
Implementation of teleworking and setting up of support measures (paid leave, short-time working)
Reduction of costs and cashflow management
SII Group - June 10, 2020 | 10 |
SII group, a supportive and committed player during the crisis
around the world
From the start of the crisis, the SII group's teams offered an innovative, responsive and supportive response by developing many emergency projects.
Cargo Seat Bags, a SII Netherlands and Trip & Co collaboration
Optimisation of emergency medical units at Vall d'Herbon by SII Concatel
Study of the compatibility of components in the A400M luggage hold with substances used in the fight against Covid-19 by SII Deutschland
Development of innovative technologies to improve Covid-19 diagnoses by SII
Poland | Cargo Seat Bags, a cargo bag |
system placed between seats on | |
commercial flights |
SII Group - June 10, 2020 | 11 |
II
I highlights
2019-2020 financial results
III Outlook
Financial highlights
A dynamic of growth and profitability
Revenue
(in €m)
Gross margin
(in % of revenue)
316.7
631.4
560.9
438.9
360.1
676.3
5.46%
7.62% | 7.35% |
6.77% | |
6.34% |
5.99%
14-15 | 15-16 | 16-17 | 17-18 | 18-19 | 19-20 |
14-1515-1616-1717-1818-1919-20
Cash-flow*
Net income**
(in €m) | 65.82 |
(in €m)
30.6
54.16 | |
44.36 | |
39.69 | |
23.34 | 27.71 |
14-1515-1616-1717-1818-1919-20
*Potential cash flow before cost of debt and taxes
25.8226.41
22.35
11.30 13.13
14-1515-1616-1717-1818-1919-20
**before minority interests
SII Group - June 10, 2020 | 13 |
Revenue: evenly distributed among sectors
…between the main markets and diversification markets
Aerospace | |||||||||
Services | €157m 23.2% | Space | |||||||
Defense | |||||||||
Industry | |||||||||
Automotive | |||||||||
vs 22.1% | |||||||||
Transportation | €252m | ||||||||
in 2018-2019 | |||||||||
Health | 37.3% | ||||||||
Retail | |||||||||
vs 37.2% | |||||||||
in 2018-2019 | €132m | ||||||||
6.6% | 19.5% | Banking | |||||||
Energy | €44m | €91m | Insurance | ||||||
vs 20.0% | |||||||||
vs 6.5% | in 2018-2019 | ||||||||
in 2018-2019 |
Telecoms 13.4%
Media
vs 14.2%
in 2018-2019
SII Group - June 10, 2020 | 14 |
Revenue up…
…in almost all sectors
Aerospace / | Banking / | Telecoms | Energy | Others | ||||
Defense | Insurance | |||||||
+9.8 % | +7.8 % | +6.1 % | ||||||
+2.5% | stable | |||||||
vs 2018-2019 | vs 2018-2019 | vs 2018-2019 | vs 2018-2019 | vs 2018-2019 | ||||
Healthy order book before | Problems of cybersecurity | Adaptation to new standards | Demand for smart services | Transport: management of | ||||
lockdown | Sectoral issues linked to new | and continued deployment | Continued development in | flows and Involvement in | ||||
Response to cybersecurity | of very high speed | line with renewable energies, | digital sales channels in the | |||||
players in the sector | infrastructures | environmental challenges | rail sector | |||||
needs in the industrial sector | (neobanks, etc.) | |||||||
Situation since March 2020: | Situation since March 2020: | New services | Situation since March 2020: | Services: projects in line | ||||
(e.g. payment, media) | Switch to teleworking with | with regulations | ||||||
Defence: difficulty | Switch to teleworking with | some project stoppages | ||||||
experienced by the sector in | some project stoppages | Situation since March 2020: | Situation since March 2020: | |||||
managing teleworking | Switch to teleworking | Switch to teleworking | ||||||
Aviation: sharp decline in | Good business continuity | Severe difficulties in | ||||||
activity | transport, tourism, and | |||||||
sales/distribution | ||||||||
SII Group - June 10, 2020 | 15 |
Balanced operations
…in France and elsewhere
51%
of revenue generated in France
in fiscal year 2019-2020
49%
of revenue generated by international operations
in fiscal year 2019-2020
40%
59.4 % du CA
140 2019-2020
(€m) 206 60 %
13.0 % du CA
43
2019-2020 | 39 | 11.8 % du CA | |
195 | (€m) | 52 | |
15.8 % du CA
SII Group - June 10, 2020 | 16 |
Monitoring of business by geographic zone
Details for France and Poland
FRANCE | POLAND | |
2019-2020
+1.7%
vs 2018/2019
Top 3 sectors: ASD / BAM /
TELCO
Recent situation:
01/2020: 87.6%
Rate of activity: 03/2020: 77.7% 04/2020: 63.7%
End of 03/2020 : 95%
Rate of teleworking: End of 05/2020 : 81%
2019-Q4:-0.7%Rate of growth: 2020-Q1:-5.2%
(YoY)2020-April: -21.5%
2019-2020
+23.5%
vs 2018-2019
Top 3 sectors: BAM / Health / Electronics
Double-figure
growth in activities
for more than 10
years
Recent situation:
01/2020 : 84.7%
Rate of activity: 03/2020 : 84.3% 04/2020 : 85.7%
End of 03/2020: 98%
Rate of teleworking: End of 05/2020: 98%
Rate of growth: | 2019-Q4: +24.6% |
2020-Q1: +22.9% | |
(YoY) | 2020-April: +22.0% |
SII Group - June 10, 2020 | 17 |
Monitoring of business by geographic zone
Details for Germany and Spain
GERMANY
SPAIN
2019-2020
-5.1 %
vs 2018-2019
Top 3 sectors:
ASD / Automotive /
Equipment
SII Deutschland:
activities less impacted
Recent situation * :
01/2020 : 89%
Rate of activity: 03/2020 : 85% 04/2020 : 75%
End of 03/2020: 80%
Rate of teleworking: End of 05/2020: 75%
2019-Q4: +0.9% Rate of growth: 2020-Q1: +2.7%
(YoY)2020-April: -18.4%
2019-2020
-3.5%
vs 2018-2019
Top 3 sectors:
Services / BAM /
TELCO
Stable business
Recent situation:
01/2020: > 90%
Rate of activity: 03/2020: 80% 04/2020: 76%
End of 03/2020: 98%
Rate of teleworking: End of 05/2020: 90%
2019-Q4:-4.8%
Rate of growth: 2020-Q1: -11.8%
(YoY)2020-April: -19.5%
* : engineering activity only
SII Group - June 10, 2020 | 18 |
Monitoring of business by geographic zone
Details for others countries
OTHERS COUNTRIES
2019/2020
+ 17,2 %
vs 2018/2019
New positive
situation in Chile
New perspectives in
Romania
Sweden :
deployment of the
Polish offshore
offer
Recent sityuation:
01/2020 : 95%
Rate of activity: 03/2020 : 92% 04/2020 : 90%
Fin 03/2020 : 96%
Rate of teleworking: Fin 05/2020 : 97%
4T/2019 : + 13,9% Rate of growht: 1T/2020 : + 8,6%
(YoY)04/2020 : - 1,5%
SII Group - June 10, 2020 | 19 |
Gross income from operating activities: €44.2m
Margin resilience in a difficult context
in €m (pending audit completion) | 2018-2019 | 2019-2020 | |
Revenue | 631.38 | 676.33 | +7.1% |
Payroll | -390.42 | -417.75 | |
Purchases and outisde expenses | -177.81 | -183.09 | |
Taxes | -6.37 | -6.26 | |
Depreciation, amortization and provisions | -9.04 | -25.80 | |
Others expenses and revenues | 0.37 | 0.73 | |
Gross income from operating activities | 48.10 | 44.16 | -8.2% |
Gross margin, as a % of revenue | 7.62% | 6.53% | -1.09 pt. |
Share-based payments | -1.42 | -1.28 | |
Non-recurring items | -0.28 | ||
Net operating income | 46.40 | 42.88 | -7.6% |
Net operating margin, as a % of revenue | 7.35% | 6.34% | -1.01 pt. |
Net operating margin in France, as a % of revenue | 7.3% | 4.6% | -2.7 pt. |
Net operating margin at international operations, | 7.4% | 8.1% | +0.7 pt. |
as a % of revenue | |||
Operating profit: €44.2m
- Group annual staff activity rate (TACE) of 88.4% compared to 90.7% in 2018-2019.
- Impact IFRS 16
External charges: removal of rents of: €14,828 k
Depreciation: Leased property depreciation of: €14,813 k
Total impact on the Operating profit insignificant
Operating profit decline in France: -35,4 %
- Deteriorated annual average staff activity rate (TACE)
Annual average TACE France: 88.5 % in 2019-2020, vs 91.3% in 2018-2019
- 1 extra working day
- Investment in structure
Continued improvement of overseas margins
- Exceptional performance in Poland
- Improved performance in Chile et aux the Netherlands - Deterioration in Germany
- Additional €900 k provision in Spain
SII Group - June 10, 2020 | 20 |
A financial year impacted by the health crisis
In all key items of the income statement
In €m | 2018-2019 | 2019-2020 | |
(pending audit completion) | |||
Revenue | 631.38 | 676.33 | +7.1% |
Operating income | 46.40 | 42.88 | -7.6% |
Gross margin (as a % of revenue) | 7.35% | 6.34% | |
Interests income (expense) | -1.67 | -2.05 | |
Taxes (including business value-added tax) | -14.14 | -14.42 | |
Net income | 30.60 | 26.41 | -13.7% |
Net margin | 4.85% | 3.90% | |
Non-controlling interests * | -0.09 | -0.21 | |
Net income after non-controlling interets * | 30.69 | 26.62 | -13.3% |
Average headcount | 7,921 | 8,356 | +435 |
Headcount at the end of the period | 8,213 | 8,601 | +388 |
IFRS 16 impact
Financial expenses: +1,360,000
Net income: -900,000
(*): impact of put option on non-controlling interests
SII Group - June 10, 2020 | 21 |
Cash-flow
Cash-generating activity
Before IFRS 16 | After IFRS 16 | ||
In €m | 2018-2019 | 2019-2020 | 2019-2020 |
(pending audit completion) | |||
Potential cash flow * | 54.16 | 65.82 | 65.82 |
Change in working capital | -13.63 | -21,70 | -2.03 |
and taxes paid | |||
Cash flow from operations | 40.53 | 44.12 | 63.79 |
Cash flow from investment | -10.16 | -10.68 | -10.68 |
Cash flow from financing | -3.90 | -19.13 | -38.80 |
Change in available cash | 26.47 | 14.31 | 14.31 |
Purchases of securities | -0.40 | 0.11 | 0.11 |
Foreign-exchange gains (losses) | -0.57 | -2.83 | -2.83 |
Change in net cash | 25.50 | 11.59 | 11.59 |
Cash at period start | 54.40 | 79.91 | 79.91 |
Cash at period end | 79.91 | 91.50 | 91.50 |
Long-term debt | -22.21 | -12.24 | -55.43 |
Short-term debt | -24.90 | -23.95 | -38.10 |
Net Cash | 32.80 | 55.31 | -2.03 |
* Self financing capacity before cost of debt and taxes
SII Group - June 10, 2020 | 22 |
Balance sheet
3/31/2019
3/31/2020
Before IFRS 16
3/31/2020
After IFRS 16
Non-current
assets
€74.5m
Current
assets
€224.8m
Cash
€79.9m
Shareholders'
equity
€162.0m
Non-controlling interests: €0.1m
Non-current
liabilities: €31.3m
Current
liabilities €185.9m
Non-current
assets
€77.7m
Current
assets
€218.1m
Cash
€91.5m
Shareholders'
equity
€174.2m
Non-controlling interests: €0.0m
Non-current
liabilities: €21.4m
Current
liabilities
€191.7m
Non-current
assets
€133.7m
Current
assets
€218.1m
Cash
Shareholders'
equity
€172.8m
Non-controlling interests: €-0.3m
Non-current
liabilities
€64.6m
Current
liabilities €205.9m
- = €379.2m
- = €387.3m
€91.5m
- = €443.3m
SII Group - June 10, 2020 | 23 |
III
I Highlights
II 2019-2020 financial results
Outlook
The resilience of the digital sector...
... key player in business continuity and recovery
Digital:
a resilient sector
- decline in business contained for Q1 2020,
- an estimated decrease in turnover of less than 25% in Q2 2020 according to
a study by Syntec numérique with the hope of a gradual recovery from September,
a sector that is necessary for business continuity in many sectors
- with the deployment of teleworking: security of infrastructures and challenges of Cloud and cybersecurity,
- in the banking sector: intensification of digital operations,
- in the telecommunications sector: solidity of networks.
At the heart of the crisis, the SII group is a major player in a key sector for business continuity and recovery.
SII Group - June 10, 2020 | 25 |
The SII group's assets and levers that are
favourable for the development of activities
A history of growth
and a capacity to adapt to crises
A balanced Build and Run mix
allowing business continuity at the heart of the crisis and supporting customers in their recovery
A decentralised organisation
in order to better seize opportunities
The strength of the HR model,
an asset for business recovery
A varied and loyal customer portfolio
that bears witness to recognised expertise
An expected rise in demand for problems
concerning digital transformation and cybersecurity
Geographic locations
that are varied and of high quality
A strong financial structure and long-term shareholding
SII Group - June 10, 2020 | 26 |
Updating of prospects for Q1 2020/2021
In the context of the health crisis, impact and recovery trends vary according to the nature of the project (Run versus Build), the business sector, and the geographic area.
In view of the uncertainty, the first quarter of 2020/2021 closed on 30 June 2020 that covers the lockdown/lockdown easing period in many countries, is expected to show a decline of between -8% and -10% compared to last year:
- Estimated impact on turnover in France: -15% to -20%(compared to -20%to -25%announced on 12 May)
- Estimated impact on turnover overseas: 0% to -5%(compared to -5%to -10%announced on 12 May)
- Estimated "effects of change" impact on turnover overseas: -1% to -2%
In this context, it is difficult to provide forecasts for the entire financial year. To date, the SII group only provides quarterly targets.
27
Investor information
(5/31/2020)
Number of shares: 20,000,000
ISIN Code: FR0000074122
LEI code: 96950044FWV7YEJCKR65
Exchange: Euronext Paris Compartment B
Others
30.59 %
Float | Fidelity | Management & | ||
10.99% | ||||
41.58% | Employees | |||
Treasury shares | ||||
54.19% | ||||
4.23% | ||||
2020-2021 Financial timetable
11 AOUT | Fiscal 2020-2021 Q1 revenue, after closing of trading |
17 SEPT | 2020 Shareholders' meeting |
12 NOV | Fiscal 2020-2021 Q2 revenue, after closing of trading |
9 DEC | Fiscal 2020-2021 1st half financial results, after close of trading |
10 DEC | SFAF Meeting - 2020-2021 1st half financial statements |
Proposed dividend of €0.10 per share
Groupe SII - 10 juin 2020 | 28 |
Questions
Attachments
Breakdown of international operations
in €m | 2018-2019 | 2019-2020 | Change | Organic change* |
Revenue from international operations (1) | 289.52 | 328.80 | +13.6% | +14.0% |
Poland | 157.98 | 195.17 | +23.5% | +23.9% |
Germany | 54.67 | 51.87 | -5.1% | -5.1% |
Spain | 40.28 | 38.86 | -3.5% | -3.5% |
Romania | 8.06 | 10.09 | +25.2% | +27.5% |
Chile | 6.31 | 8.27 | +31.0% | +42.9% |
Canada | 5.48 | 6.86 | +24.9% | -21.6% |
Belgium | 5.57 | 4.85 | -12.8% | -12.8% |
Czech Repulic | 3.49 | 3.18 | -9.1% | -9.4% |
The Netherlands | 2.51 | 3.00 | +19.8% | +19.8% |
United Kingdom | 1.10 | 2.26 | +105.7% | +104.0% |
Colombia | 1.75 | 2.06 | +17.7% | +27.4% |
Morocco | 1.51 | 2.02 | +33.9% | +31.3% |
Switzerland | 0.79 | 0.27 | -66.0% | -67.5% |
Sweden | - | 0.04 | n.s. | n.s. |
India | 0.01 | 0.00 | n.s. | n.s. |
Average international headcount | 4,125 | 4,299 | +174 | |
Operating margin of international operations | 7.42% | 8.15% | +0.73 pt. | |
*Excluding the impact of acquisitions and exchange- rate fluctuations
2018-2019 exchanges rates applied to revenue for 2019-2020.
(1): Consolidated revenue after elimination of intra-group operations | 31 |
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Disclaimer
SII SA published this content on 10 June 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 June 2020 09:17:07 UTC