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 Page 2
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%
Paris, September 2011 Page 4
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
Paris, September 2011 Page 5
Solutions: offers complementary to ALTENcore business
Paris, September 2011 Page 6
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
Paris, September 2011 Page 7
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
Paris, September 2011 Page 8
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
Paris, September 2011 Page 9
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
Paris, September 2011 Page 10
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
Paris, September 2011 Page 11
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
Paris, September 2011 Page 12
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 Page 1313Ingénierie 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.
Paris, September 2011 Page 14
y p
Ingénierie et Conseil en TechnologiesDeauville | Septembre 2011
Energy and Life Sciences: 20% of revenue+16% S1 2010+16% versus S1 2010
Examples of projects
•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
Paris, September 2011 Page 15
‐ Sweden: Atlas Copco, Vattenfall, FMC Aseng field.
Telecommunications: 13% of revenue
+9% versus S1 2010
• Major customers:‐ France : Orange, Bouygues Telecom, SFR,
Examples of projects
• 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
Paris, September 2011 Page 16
‐ 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)
Paris, September 2011 Page 17
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
Paris, September 2011 Page 18
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).
Paris, September 2011 Page 19
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
Paris, September 2011 Page 20
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
Paris, September 2011 Page 21
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
Paris, September 2011 Page 22
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
Paris, September 2011 Page 23
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%
Paris, September 2011 Page 24
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‐
Paris, September 2011 Page 25
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
Paris, September 2011 Page 26
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
Paris, September 2011 Page 27
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
Paris, September 2011 Page 28
NET CASH POSITION ‐10.4 14.6Audit in progress
2011‐2014 Outlook2011‐2014 Outlook
Paris, September 2011 Page 29
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).
Paris, September 2011 Page 30
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.
Paris, September 2011 Page 31
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
Paris, September 2011 Page 32
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