2011 half results - alten - technology consulting and ... · • development of an mmi simulator...

Paris, 28 September 2011

2011 First Half Results

ALTEN Group

ContentsContentsContentsContents

• ALTEN, European leader in Technology Consulting and Engineering (TCE)

2011 Fi t Half Re ult• 2011 First Half Results

• Outlook for 2011‐2014• Outlook for 2011‐2014

Paris, September 2011

ALTEN,

European leader in TechnologyEuropean leader in Technology Consulting and Engineering

( )(TCE)

ALTEN, European leader in Technology ALTEN, European leader in Technology Consulting and Engineering (TCE) Consulting and Engineering (TCE) g g g ( )g g g ( )

European company67% France

EngineersAn Engineering and

33% InternationalIS Technology offer

S1 2011€530 9 M R€530,9 M Revenue+14, 000 employeesO PA (Ebit) : 10 2%


O.P.A (Ebit) : 10.2%

12,600 Engineers in 14 countries,almost 40% outside Fran ealmost 40% outside France

680400

280

60

72020100

7730210

20100

1340700360

1340


Solutions: offers complementary to ALTENcore business


ALTEN’s two businesses: NTIS and TCE

Networks and T h l i l I f ti Technology Consulting Technological Information

Systems (NTIS): 26% of revenue

ec o ogy o su i gand Engineering (TCE):

74% of revenue

Information Systems & ProductionInformation systems

Systems & Networks

Engineering Production & Life cycle

IS TechnologyS&N

Consulting and Program IndustrialisationTechnical publication

Payroll, HR Management

Architecture

Studies and

Customer support

Purchasing and logistics

Operation, Deployment,Outsourcing

Studies and Conception Production

managementFinance, and accounting

Sales Help Desk

Design facilities Production


Management

Organization

ALTEN GrouppOperating DivisionsGroup entity

Structured Projects Division

DRCAS l D l

TCE Paris NTIS Paris Regions International Solutions

MIGSOProgram & Project Management

Sales Development

POMProcess, Tools and Methods

ADCALTEN Delivery Center

Studies & ConceptionATEXISCustomer Support

AVENIR CONSEILTraining

ALTEN Delivery Center

DTTechnical Divisions

DPOPerformance and Offers

Projects are carried out in the ”Production Centers ”, led by the

ADC.Network in France and abroad

ANOTECHOil & Gas Operations

B2i, ELYTISEngineering Control

Performance and Offers Network in France and abroad PEGASE, WINWISEMicrosoft Technologies, SAP

ID APPSMobile applications


ALTEN will manage 70% of its projects in 2014 (Alten already manages 45% of its projects in 2011)

JuneJune JuneJune DD

Sales Development

Sales Development Consulting support for the successful completion Consulting support for the successful completion 6 6006 600 7 0007 000 5 1005 100

June 2010June 2010

June 2011June 2011

Dec. 2014 (est.)Dec.

2014 (est.)

Programme Management PMOProgramme Management PMO

Development Division

Development Division of studies and projects, on a time‐spent basisof studies and projects, on a time‐spent basis

900900 1 1001 100 2 2002 200

6, 6006, 600 7, 0007, 000 5, 1005, 100

Structured ProjectsStructured Projects

Work Package (project team and dedicated structure)

Work Package (project team and dedicated structure)

Programme Management ‐ PMOProgramme Management ‐ PMO

1, 7501, 750 2, 5002, 500 6, 2006, 200

900900 1, 1001, 100 2, 2002, 200

70 %Projects Development Division

Projects Development Division

Near Shore : RomaniaNear Shore : Romania

Fixed‐price package, based on detailed specifications

Fixed‐price package, based on detailed specifications 850850 1, 1001, 100 1, 5001, 500

70 %

Total EngineersTotal Engineers 10 30010 300 12 60012 600 17 00017 000

Near‐Shore : RomaniaOff‐Shore : India

Near‐Shore : RomaniaOff‐Shore : India 200200 900900 2, 0002, 000


Total EngineersTotal Engineers 10, 30010, 300 12, 600 12, 600 17, 00017, 000

The major “Solutions” of the Alten Group, companies positioned on a specific business and a particular expertise

July 2011

Obj.2014 Expertise Major sectors Countries

PMO Aerospace, France, UK, 500 700

MOProgrammemanagement

Ae ospace,Automotive

a ce, U ,Germany

Customer Aerospace France, Spain, 450 630 Support

EngineeringGermany, Romania, India

410 600Exploration, Production,

Oil & Gas France, UK, Russia, Brazil, Africa (40410 600 Production,

Refining, Brazil, Africa (40 countries)

135 160Educational engineering and t ai i

Automotive, Telecom

France

training

Part of Paris ECT

ControlPowertrainEngineering

Automotive France


g g

Acceleration of organic growth

• Activity has remained strong this half year thanks to: “technological breakthrough” projects, deployment of projects in workpackagemode deployment of projects in workpackagemode, increased use of outsourcing.

• Clients ontinue their shortlist rationali ation poli y based on• Clients continue their shortlist rationalization policy based on: plurality of engineering skills and offers, ability to manage projects in workpackage mode and make y g p j p g

productivity gains, international presence and access to offshore/nearshore.

Alten will continue to increase its market share thanks to its positioning and


p gknow how in structured projects (workpackage)

Breakdown of turnover per sector(as a %)(as a %)

1st half 2011

Aerospace Automotive

17,50%

4 50%2%

16,50%

RailNaval

Defence1st half 2010

4,50%

14 50%

9%

NavalMultimediaElectronicsAerospace Automotive

14,0%

5,0%

%8,0%

2,5%

16,0%14,50%

5,50%

13%Energy

TelecomMultimédiaElectronics

Energy

Defence RailNaval

14,5%

6,0%

20 0%

14,0%17,50%

B ki

Other industries

e ecoEnergy

OtherTelecom


20,0%

12

BankingServices

BankingServices

Industries

Automobile: 17.5% of revenue+ 45% versus S1 2010+ 45% versus S1 2010

•Major customers: Examples of projects

‐ France : PSA, Renault, Valeo, Delphi, Infineon,

Volvo Trucks, Visteon

Germany: BMW Daimler Audi Continental

• Integration, validation, evolution and maintenance of embedded software,

• Development of an MMI simulator for‐Germany: BMW, Daimler, Audi, Continental,

Bosch, GM, Magneti, Porsche, VDO

‐ Spain: PSA, Valeo, Mecaplast, Delphi

• Development of an MMI simulator for comfort functions and driving assistance,

• Development of the hybrid engine traction chain steering software‐ Belgium: Valeo, Inergy, Daimler

‐ Italy: Magneti, Fiat, WW

‐ Sweden: Volvo, Scania, Delphi, Bosch

chain steering software.

Paris, September 2011 13Ingénierie et Conseil en TechnologiesDeauville | Septembre 2011

ASD [Aeronautics, Space and Defence] : 18.5% of revenue

+14% versus S1 2010

Major customers :

15%13%

Examples of projectsMajor customers :

‐ France : Airbus, Thalès Avionics, Eurocopter,

Astrium CNES

Examples of projects

• Designing cockpit systems and equipment (ice and rain protection, fire protection, Astrium, CNES

‐Germany: Airbus, Astrium, Eurocopter, MTU

‐ Spain: Airbus Military (EADS Casa)

p pengine interface …) for Airbus aircrafts.

• Design of a reactor mass in composite material.

‐ UK : Airbus, Astrium

‐ Belgium: Techspace (Safran)

‐ Italy: Thales Alenia Space

• Production of flight simulators.


y p

Ingénierie et Conseil en TechnologiesDeauville | Septembre 2011

Energy and Life Sciences: 20% of revenue+16% S1 2010+16% versus S1 2010


•Major customers:‐ France : Total, Technip, Saipem, EDF, Areva,

• Hydro‐electricity: multi‐location research and monitoring project for the renovation work on installed French hydro‐electric plants (engineering, civil engineering command & control)Airliquide, Veolia, GSK, Sanofi

‐ Spain: Gamesa, Gas Natural, Red Electrica

‐ Belgium: GSK, GDF SUEZ, SNC Lavallin,

civil engineering, command & control).

• Nuclear power: overseeing the reactor pool construction work at the EPR OL3 site in Finland.

Belgium: GSK, GDF SUEZ, SNC Lavallin,

Electabel

‐Netherlands: Shell, GDF SUEZ,

S d Atl C V tt f ll FMC

• Oil & Gas : assisting with the project management and coordination of the structural studies for the sub‐sea project (underwater infrastructure) in the Aseng field


‐ Sweden: Atlas Copco, Vattenfall, FMC Aseng field.

Telecommunications: 13% of revenue

+9% versus S1 2010

• Major customers:‐ France : Orange, Bouygues Telecom, SFR,


• Development of “mobile” and multimedia Alcatel,

‐ Spain: Telefonica, Ericsson, Alcatel

‐ Belgium: Orange, Belgacom

applications: set top box digital TV, virtual and augmented reality.

• Study of superfast broadband deployment (fibre) g g g

‐ UK : Nokia, T‐Mobile

‐ Italy: NSN, Vodaphone

Sweden: Ericsson

and LTE (wireless)).

• Provision of M2M (machine to machine) communications services for communicating


‐ Sweden: Ericsson

‐Netherlands : Vodaphone, Qualcommvehicles.

Banking, Insurance & Public Administration: 17.5% of revenueof revenue + 3% versus S1 2010

•Major customers: Examples of projects Major customers:‐ France : SG, Calyon, BNP, Natixis, BPCE

HSBC, Axa

• Design and development of risk management and control applications in the trading room.

‐ Spain: La Caixa, Axa, Caja Madrid,

‐ Belgium: BNP Fortis

‐ Italy: Intesa San Paolo Banca du Milano

• Development of a credit data management and valuation application in a dot.net environment

• Implementation and set up of a joint securities Italy: Intesa San Paolo, Banca du Milano,

Unicredit, BNPsettlement/delivery platform under the aegis of the ECB (European Central Bank)


External growth:

i iti f C l ft L bacquisition of Calsoft Labs

• Establishment in the United States and India

• Specialization in the fields of electronics, embedded software, telecom networks and mobile platforms

• 640 employees at the end of June 2011 (including 590 engineers)engineers),

• $22.3M in turnover in 2010/2011 with an operational margin p gclose to 10% (consolidated company as of 1st April 2011).

Alten has become one of the best established European ETC


pcompanies in India

External growth:

• Alten has taken a 15% stake in the Phinergy company,

specializing in the design and development of batteries for

electric vehicles (Z.E.V).

Phinergy develops Metal Air, Zinc Air and AluminiumAir

technology.

• Alten has taken over a German company (in Munich) in the

telecom sector (estimated turnover in 2011: €2.3 M, 35

engineers, consolidated as of 1st July 2011).


g , J y )

Share ownership as of 30 June 2011

1,24%Treasury stock

33,17%Founder + holding

Breakdown of % of sharesFounders + Holding 33,17%Mutual fund 1,03%

1,03%

Public 64,56%Treasury 1,24%

Breakdown as % of voting rights,03%64,56%

Breakdown as % of voting rightsFounders + Holding 50,04%Mutual fund 0,78%Public 49,18%

Mutual fund

Public


Public

Half‐year resultsHalf year results

The procedures of limited examination of the half‐yearly financial statements have been carried out. The limited examination report will be issued after finalisation of the procedures

i d f h f bli i f h h lf l fi i l


required for the purpose of publication of the half‐yearly financial report.

Growth Revenue

+1,7%+5,6%

450 9

530.9+17.7%

I €M

International420,1 443,4

30,9%24,9% 30,7%

450.932.3%

In €M

France

75,1% 69.3% 69.1% 67.7%

1st half1st half 1st half 1st half


20092008 2010 2011

Sequential change in Revenue

+17%

+17 3%+16.8%

+17.3%M€

222.9 227.1 450.0 526.7261.5 265.2

1st half 2010

1st half 2011

Q1 2010 Q1 2011 Q2 2011Q2 2010


Acceleration of organic growth in first half of 2011

Consolidated revenue by country (in €M)(in €M)

Country June10 % June 2011 % var %

Spain 34.0 7.5% 36.8 6.9% 8.2%

Sweden 22 4 5 0% 35 7 6 7% 59 4%Sweden 22.4 5.0% 35.7 6.7% 59.4%

Germany 27.8 6.2% 31.7 6.0% 14.0%

Netherlands 12.5 2.8% 17.9 3.4% 43.2%

Belgium 18.5 4.1% 16.9 3.2% ‐8.6%

United Kingdom 9.9 2.2% 13.6 2.6% 37.4%

I l 11 0Italy 11.0 2.4% 12.9 2.4% 17.3%

USA 1.2 0.3% 5.5 1.0% 358.3%

Others 2 1 0.5% 0 9 0.2% ‐57.1%Others 2.1 0.5% 0.9 0.2% 57.1%

International 139.4 30.9% 171.9 32.4% 23.3%

France 311.5 69.1% 359.0 67.6% 15.2%


TOTAL 450.9 100.0% 530.9 100.0% 17.7%

Condensed income statement

In €M H1 2010 H1 2011 Var %

Revenue 450 9 530 9 + 17 7%Revenue 450.9 530.9 + 17.7%

Operating profit on activityAs % of turnover

43.89.7%

54.110.2%

+ 23.6%

Payment in shares ‐0 3 ‐0 2Payment in shares 0.3 0.2

Operating profit before exceptionals 43.5 53.9 + 24.0%

Non‐recurrent profitDisposal of assets

‐3.1‐

0.4‐ 0.2Disposal of assets

Amortization of Goodwill ‐0.2‐3.1

Operating profitAs % of turnover

40.49%

51.09.6%

+26.3%

Net cost of financial debt Financial cost on debt present value

‐0.3‐

‐1.3‐

Net financial income ‐0.3 ‐1.3

Corporate income taxProfit of associated companies (equity method)Minority interests

‐14.8‐

‐0.1

‐18.20.4‐


Net profit group share As % of turnover

25.25.6%

31.96.0%

+26.7%

Audit in progress

Condensed income statementper geographic zoneper geographic zone

H1 2010 H1 2010 2010 H1 2011 H1 2011 2011In €M France

(1)Interna.

(1)Group

(2)France

(1)Interna.

(1)Group

(2)

Revenue 315.6 149.7 450.9 359.0 171.8 530.9

Operating profit on activityAs % of turnover

29.39.3%

14.59.7%

43.89.7%

30.98.5%

23.212.6%

54.110.2%

Payment in shares ‐0.3 ‐ ‐0.3 ‐0.2 ‐ ‐0.2y

Operating profit before exceptionals 29.0 14.5 43.5 30.7 23.2 53.9

Non‐recurrent profitDisposal of assets Amortization of Goodwill

‐2.3‐

‐0.8‐

‐3.1‐

1‐3 1

‐0.6‐0.2

0.4‐0.23 1Amortization of Goodwill ‐ ‐ ‐ ‐3.1 ‐ ‐3.1

Operating profitAs % of turnover

26.78.5%

13.79.2%

40.49.0%

28.67.9%

22.412.1%

51.09.6%

Net financial income 0.2 ‐0.5 ‐0.3 ‐0.9 ‐0.4 ‐1.3

Corporate income taxProfit of associated companies (equity method)SME and minority interests

‐10.6

‐

‐4.1

‐0.1

‐14.8

‐0.1

‐11.70.4

‐

‐6.5‐

‐

‐18.20.4

‐

N fi 16 2 9 0 25 2 16 4 15 5 31 9


Net profitAs % of turnover

16.25.1%

9.06.0%

25.25.6%

16.44.5%

15.58.4%

31.96.0%

Audit in progress

Condensed balance sheet

LIABILITIESASSETS

In €M Dec. 2010 (Net)

June 2011(Net) In €M Dec. 2010

(Net)June 2011(Net)

LIABILITIESASSETS

Goodwill 179.5 186.3

Other intangible assets 11.5 11.0Tangible fixed assets 9.4 10.9

SHAREHOLDERS’ EQUITY Minority interest

367.70.3

374.30.5

g

Associated companies ‐ 2.6Non‐current financial assets 15.0 25.9

Contingency Provisions 11.6 11.9

Non‐current financial liabilities 2.6 2.1

Tax assets 7.4 7.9

NON‐CURRENT ASSETS 222.8 244.6

Other non‐current liabilities 3.7 3.8

NON‐CURRENT LIABILITIES 17.9 17.8

CURRENT ASSETS

CASH AND CASH EQUIVALENTS

391.6

58.0

400.9

63.3

CURRENT LIABILITIES 271.5 268.3

FINANCIAL LIABILITIES 15.0 47.9


TOTAL ASSETS 672.4 708.8 TOTAL LIABILITIES 672.4 708.8Audit in progress

Cash Flow Statement

In €M H1 2010 H1 2011

Cash‐FlowCorporation tax paidCh i ki i l

45.214.333 8

60.0‐15.815 1Change in working capital ‐33.8 ‐15.1

Cash from operations 25.8 29.1

A / l f f dAcquisitions / sales of fixed assetsChange in scope and earn out

‐2.7‐4.2

‐11.9‐14.4

Cash flow from investments ‐6.9 ‐26.3

Cash flow from financing activities ‐28.3 2.7

Exchange rate variation 0.5 ‐0.2

Net change in cash position ‐9.0 5.3


NET CASH POSITION ‐10.4 14.6Audit in progress

2011‐2014 Outlook2011‐2014 Outlook


2011 – 2014 Outlook

The financial crisis could slow down growth in Europe and

au e a o t a tio i i e t e tcause a contraction in investment.

To date, activity remains dynamic and activity rate is y y y

satisfactory

Alten has operational “steering” indicators to forecast changes

in the market trends in real time. Its rapid reaction capacity

gives it real rebound power (cf 2009).


2011 – 2014 Outlook

The scarcity of engineers in Europe will continue, and even get worse, confirming the relevance of Alten’s positioning.g p g

Studies and innovation form the basis of our customers’ development and competitiveness.development and competitiveness.Breakthrough technology programmes in the Automotive, Energy and Aerospace sectors confirm the strategic character of R&D investmentinvestment.

Strict referencing policies, combined with the globalization t e d e u e u to e a d ua a tee thei loyaltytrend, secure customers and guarantee their loyalty.


Outlook for 2011 – 2014

The probable evolution of the economic context should allow Alten to close other external growth operations.

Thank’s to its business model, size, positioning, rational organization and structured projects (workpackage) management know how Alten will continue to win market shareknow‐how, Alten will continue to win market share.

Alten remains confident as to its development objective for 2014E l d hi• European leadership

• a headcount of 17,000• 70% in Structured Projects• high profit margin


APPENDICES

GOODWILL 179 477 186 344

INTANGIBLE FIXED ASSETS 11 456 10 969

TANGIBLE FIXED ASSETS 9 350 10 854

EQUITY AFFILIATES 2 613

NON CURRENT FINANCIAL ASSETS 15 035 25 888

DEFFERRED TAX ASSETS 7 424 7 875

NON CURRENT ASSETS 222 741 244 544

TRADE DEBTORS 365 018 367 817

OTHERS RECEIVABLES 26 651 33 058

CASH AND EQUIVALENTS 57 992 63 328

CURRENT ASSETS 449 661 464 203

TOTAL ASSETS 672 402 708 746

BALANCE SHEET - ASSETS (In thousands of euros)

ITEM Dec. 2010 June 2011

APPENDICES

Capital 32 491 32 782

Premiums 17 219 22 398

Consolidated reserves 264 426 287 179

Consolidated net profit 53 607 31 915

SHAREHOLDERS' EQUITY 367 743 374 275

MINORITY INTERESTS 326 454

Contingency provisions 11 597 11 893Non current financial debts 2 616 2 066Other non current liabilities 3 691 3 800

NON CURRENT LIABILITIES 17 904 17 759

Provisions 2 051 4 387

Currents financial debts 14 994 47 903Trade and other account payable 31 858 30 043Other current liabilities 237 526 233 926

CURRENT LIABILITIES 286 429 316 259

TOTAL LIABILITIES 672 402 708 746

BALANCE SHEET - LIABILITIES (In thousands of euros)

ITEM Dec. 2010 June 2011

APPENDICES

NET REVENUE 450 855 530 891

PURCHASES -38 232 -40 631PERSONNEL COSTS -315 537 -374 769EXTERNAL CHARGES -48 116 -52 818TAXES OTHER THAN ON NET INCOME -2 776 -3 125AMORTISATION -2 978 -3 486OTHER CHARGES AND INCOME 550 -1 980OPERATING CHARGES -407 088 -476 808

OPERATING PROFIT ON ACTIVITY 43 767 54 083

Payment in shares -320 -187

OPERATING PROFIT ON ACTIVITY BEFORE EXCEPTIONALS 43 447 53 896

Non recurrent profit -3 058 374Capital loss on asset disposal -141Goodwill impairment test -3 131

OPERATING PROFIT 40 389 50 997

Net financial cost on net debt -522 -251Financial cost on liabilities present value 174 -1 025

FINANCIAL INCOME -348 -1 276

SHARE IN NET INCOME OF EQUITY AFFILIATES 386

CORPORATE INCOME TAX -14 765 -18 166

CONSOLIDATED NET PROFIT 25 276 31 942

PROFIT ATTRIBUTABLE TO MINORITY INTERESTS -76 -26

PROFIT ATTRIBUTABLE TO THE GROUP 25 199 31 915

PROFIT AND LOSS ACCOUNT (In thousands of euros)

ITEM June 2010 June 2011

APPENDICES

CASH FLOW 45 208 59 959

Consolidated Net Profit 25 276 31 942Net contribution of associated companies (equity method) -386Amortisation and Provisions 4 258 8 989Payment in shares 320 187Corporate income tax 14 765 18 166Other 27 134Financial charges 522 251Financial income 40 676

Income tax paid 14 276 -15 782Change in Working Capital Requirements -33 764 -15 096

NET CASH FLOW GENERATED BY ACTIVITY (FREE CASH FLOW) 25 720 29 081

Acquisition / Disposal on fixed assets -2 728 -11 867Impact of change in scope of consolidation and earn-outs paid -4 167 -14 456

NET CASH FLOW ON INVESTMENTS -6 895 -26 323

Net financial cost -521 -246Dividends paid to shareholders -28 284 -34 996Capital increase 1 226 5 571Buy back of shares -63 43Repayment of long term debt -43 -1 285Changes in short term financial debts -629 33 664

NET CASH FLOW FROM FINANCING OPERATIONS -28 313 2 750

CHANGE IN CASH RELATED TO FOREIGN EXHANGE POSITION 500 -172

CHANGE IN CASH POSITION -8 988 5 336

Cash on hand 43 407 63 328Overdrafts -21 113 -12 109Bank loans -32 687 -36 579

NET CASH POSITION -10 393 14 640

CASH FLOW STATEMENT (In thousands of euros)

ITEM June 2010 June 2011

2011 half results - alten - technology consulting and ... · • development of an mmi simulator...

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