AKKA Technologies : January 2020 Roadshow Presentation

ROADSHOW PRESENTATION

JANUARY 2020

NOVEMBER 2019

DNA

A K K A G R O U P

2

DNA	DATA RESPONS	Q3 2019	H1 2019

GROUP OVERVIEW 2018

EU LEADER	1,505 M€	9.5%	>20,000	25
Digital & Engineering	2018 Group revenue	Revenue Organic	Skilled Employees
Countries
In Mobility	Up 12.8% YOY*	Growth in FY 2018	Up 35.5% YOY

* PDS Tech is consolidated as of 1st November 2018
JANUARY 2020	3

1984

Creating AKKA in the automotive sector

in France

DNA	DATA RESPONS	Q3 2019	H1 2019

THE MAKING OF A EUROPEAN LEADER

1999

2005

2012

2015

2017

2018

Reaching		INITIAL		40%		AKKA		Becoming		Enhanced
€40M		PUBLIC		Revenue		reaches		a leader in		diversificatio
revenue		OFFERING		generated		€1BILLION		Germany		n in
accelerating				in revenue		60%		aerospace
	aeronautics		outside of
diversificatio						revenue		in the US
	become		France
n in						generated
	the main
aerospace							outside
	segment
							of France

2020

Acceleration

in DIGITAL

with DATA

RESPONS

JANUARY 2020

4

DNA	DATA RESPONS	Q3 2019	H1 2019

THE MAKING OF A EUROPEAN LEADER

1984

1999

2005

2012

2015	2017	2018
		2020

Creating	Reaching	INITIAL	40%
AKKA in the	€40M
PUBLIC	Revenue
automotive	revenue
OFFERING	generated
sector
accelerating	outside of
in France	aeronautics
diversification	France
	become
	in aerospace
	the main

segment

JANUARY 2020

AKKA reaches

€1BILLION

in revenue

Becoming	Enhanced
a leader in	diversification
Germany	in aerospace
60%	in the US
revenue
generated

outside of France

5

DNA	DATA RESPONS	Q3 2019	H1 2019

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

OUR		OUR OFFER		OUR STRENGTHS
CLIENTS/PARTNERS

Largest European OEMs and	Support clients in the conception of
industrial companies.	new products:
	• over entire product design cycle
	and the value chain
	• in their international expansion,
	globalisation and digitalisation

• Boost our client's performance through innovation, increased value added, agility & cross-sector expertise.
• Tailored transnational turnkey projects.
  o Through 21 skills centres
  o Thanks to 20,000 dedicated experts worldwide

JANUARY 2020

6

DNA	DATA RESPONS	Q3 2019	H1 2019

STRATEGY OF BALANCES

DELIVERING RESULTS SINCE 1999

JANUARY 2020

GEOGRAPHICAL	CLIENT
BALANCE	BALANCE

FINANCIAL	SKILLS
BALANCE	BALANCE

7

DNA	DATA RESPONS	Q3 2019	H1 2019

BALANCING OUR SKILL-SETS AND

ANTICIPATING DISRUPTIVE

TECHNOLOGIES

1984

1995

2006

2009

2011

2012

2015

2007

2015

2019

Design

Design,

Embedded IT

ADAS/

Downstream

Mechatronic,

IoT

powertrain,

office/

(Coframi)

Link & Go

aerospace

electric &

Digital

vehicle

process

(Aeroconseil)

hybrids

architecture

JANUARY 2020

8

DNA

DATA RESPONS

Q3 2019

H1 2019

AKKA 2018 pro forma

Life sciences 6%

Energy 4%

Railways 3%

Suppliers

8%

Others 8%

• 1.7Bn

Aerospace 34%

Automotive	France	North
37%	37%	America
	16%
Mobility
82%		€ 1.7Bn

Intl	Germany
18%	29%

JANUARY 2020

9

DNA	DATA RESPONS	Q3 2019	H1 2019

STRONG CLIENT DIVERSIFICATION

JANUARY 2020

10

DNA	DATA RESPONS	Q3 2019	H1 2019

COMBINED ACQUISITIONS & ORGANIC GROWTH

REVENUE (€M)

							CAGR
					€1.7B*	2006-2018*
				€1.3B			AKKA:
						+22%
			€1.0B
		€0.5B					VS SECTOR:
€0.15B						+9%
2006	2011	2015	2017	2018
	* Pro forma including PDS Tech
	JANUARY 2020						11

DNA	DATA RESPONS	Q3 2019

PROFITABLE GROWTH

H1 2019

Revenues in €M

1,505

EBITDA % of Sales

2006 - 2018

											1,334
										1,123
									1,002
						827	879	886
				400	474
		382	333
160	236
FY06	FY07	FY08*	FY09	FY10	FY11	FY12	FY13	FY14	FY15	FY16	FY17	FY18**

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

Average : 8.7%

Always > 7%

Leverage Ratio

2006 - 2018

Average : 1.0x

Highest : 2.0x

JANUARY 2020

12

DNA	DATA RESPONS	Q3 2019	H1 2019

UNIQUELY POSITIONED TO DESIGN TOMORROW'S PRODUCTS

	SMART	A UNIQUE
CAPACITY TO	CONNECTED
ANTICIPATE	SOLUTIONS	EDGE ON
DISRUPTIVE		DIGITAL
	TECHNOLOGIES
TECHNOLOGY

CONSULTING

CAPACITY TO

DELIVER LARGEENGINEERING TRANSNATIONAL

PROJECTS

STRONG TRACK

RECORD IN

INTEGRATING ACQUSITIONS

	UNIQUE VISION	21 SKILL CENTRES
	DELIVERING
	ON THE
	TURNKEY
	INDUSTRY
	SOLUTIONS
JANUARY 2020		13

PROPOSED ACQUISITION OF DATA RESPONS

C R E A T I N G A U N I Q U E D I G I T A L L E A D E R

14

DNA	DATA RESPONS	Q3 2019	H1 2019

CLEAR 2022

C		L		E		A		R
CUSTOMER-		LEADERSHIP IN		EXCELLENCE		ATTRACTIVE		RESULTS-
ORIENTED		INNOVATION		IN DELIVERY		FOR TALENTS		ORIENTED
Top 20 clients		75% of our		Increase		Hire 10,000		Commited to
above €50M		activities in the		projects gross		talented digital		best-in-class
revenue*		digital field		margin by 2%		natives		performance

*On average
JANUARY 2020	15

DNA	DATA RESPONS	Q3 2019	H1 2019

A SCALABLE DIGITAL INNOVATION

POWERHOUSE

A GAME CHANGER

Perfect		Strong value
strategic fit		creation

JANUARY 2020

16

DNA	DATA RESPONS	Q3 2019	H1 2019

A COMBINED EXPERTISE IN

ENGINEERING & DIGITAL

DIGITAL

MANUFACTURING

DIGITAL WORKER

IOT, AI & ROBOTICS

DIGITAL	SERVICE &
ENGINEERING	AFTER SALES

PRODUCT IV&V

ANALYTICS

CONNECTED

PRODUCTS

Cybersecurity

JANUARY 2020

17

DNA	DATA RESPONS	Q3 2019	H1 2019

A GAME CHANGER

IMMERSIVE

TECHNOLOGIES

DATA	DIGITAL
APPLICATIONS
INTELLINGENCE
DESIGN

CONSULTING

SHOPFLOOR	ENGINEERING	SYSTEMS
SOLUTIONS		SECURITY

SMART

MANUFACTURINGCONNECTED

SOLUTIONS

JANUARY 2020

18

DNA	DATA RESPONS	Q3 2019	H1 2019

CLEAR 2022: LAUNCH OF PHASE II

					GROWTH
				€ 2.5Bn	ACCELERATORS
		€1.7Bn
	€ 1.3Bn				Automotive
1
€ 0.9Bn
					Aerospace
			CLEAR 2022		Digital
2014	2017	2018	2020	2022
* AKKA Proforma figures including PDS Tech

JANUARY 2020

19

DATA RESPONS

20

Cloud

Electrification

A complete technology partner

for smarter embedded and IoT solutions

- Digitalisation of the industries of tomorrow!

IoT / Digitalisation

AI /	Security
Analytics

Connectivity

Software & APPs

Sensor

Embedded
Solutions	R&D Services

Mobile services

JANUARY 2020

21

SUCCESFULL & PROFITABLE GROWTH

CLEAR 2022

OPPORTUNITIES

16x

2000-2018

	1,500
	1,300
	1,100
17%	900
500
	700

annual growth	300
2000-2018
	100
	-100

FINANCE

REVENUE

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

JANUARY 2020

22

AT A GLANCE

NOK I.5 billion

1 400 specialists

>1 000s R&D projects

40 nationalities

JANUARY 2020

CLEAR 2022

5

LOCATIONS

NORWAY

2

LOCATIONS

DENMARK

Our companies:

OPPORTUNITIES FINANCE

3

LOCATIONS

SWEDEN

7

LOCATIONS

GERMANY

TAIWAN

23

DIVERSIFIED CUSTOMER PORTFOLIO

FINANCE &
PUBLIC	OTHER
4%	1%
MEDTECH
7%
SPACE, DEFENCE	MOBILITY
36%
& SECURIY
10%

	STRONG
	DIVERSIFICATION
ENERGY &	across several
MARITIME	industries
11%

INDUSTRY &
AUTOMATION	TELECOM &
14%
MEDIA
	18%

JANUARY 2020

A CUSTOMER & TECHNOLOGY

DRIVEN ORGANISATION

Building long-term customer relationships

based on strong industry know-how, niche competence and local touch

18%26%

40%

Top 3 customers

Top 5 customers

Top 10 customers

24

All numbers are YTD figures

DNA	DATA RESPONS	Q3 2019	H1 2019

MAJOR CONTRACT EXAMPLES

• R&D - Product development
• Business critical
• Long-termR&D projects
• Strategically important
• Domain COMPETENCE & industry knowhow

Data driven DEVELOPMENT		Smart INFRASTRUCTURE for IoT
support		applications
Contract in Germany of		Contract in Sweden of
NOK 225 million		SEK 40 million

MEDTECH solutions	Smart FACTORY	Advanced
Frame agrmt. in Norway of	Contract in Germany of	COMMUNICATION solution
NOK 40 million p.a.	NOK 13 million	Contract in Norway of
		NOK 18 million
JANUARY 2020		25

THE MOTHER OF ALL

TECH BATTLES

ELECTRIFICATION	AUTONOMOUS	SHARED	CONNECTIVITY
	DRIVING	MOBILITY

Source: GP Bullhound

JANUARY 2020

26

CARS ARE BECOMING COMPUTERS ON WHEELS

SW frameworks

Embedded

software

ENTERTAINMENT PLATFORM

APPS AND

SERVICES

Connectivity		In-vehicle	AI/analytics	User based
remote SW update
Security	infotainment		insurance
	system
Testing			Autonomous
			driving
	Fleet			Condition
Car sharing	management
	monitoring
systems

Sensors	IoT

Digitalisation of the product development cycle

New telematics

solutions

Car-as-a-service

AUTONOMOUS

DRIVE/OPERATING

SYSTEM

DATA

ANALYTICS

JANUARY 2020

27

DNA	DATA RESPONS	Q3 2019	H1 2019

POSITIONED IN ATTRACTIVE SEGMENTS

Data Respons is involved in several projects across all growth segments

Connectivity and remote SW update solutions

Electric and hybrid drivetrain technology

In-vehicle infotainment systems

Autonomous driving projects (ADAS)

Fleet Management systems

New telematics solutions

Car-as-a-service projects

Car sharing applications

Source: Deloitte 2019 Global Automotive Supplier Study

JANUARY 2020	28
	| Slide 28

EVERYTHING

DIGITALISED, CONNECTED, AUTOMATED

EVERYWHERE

JANUARY 2020

29

A NEW DIGITAL LEADER

WITH STRONG VALUE CREATION

30

DNA	DATA RESPONS	Q3 2019	H1 2019

A POWERFUL €2BN PLATFORM

FOR A DATA-DRIVEN WORLD

Revenues c. EUR 2BN

> 22,000 experts 25 countries

Combined figures
JANUARY 2020	31

DNA	DATA RESPONS	Q3 2019	H1 2019

A DRIVER TO ACCELERATE PROFITABLE GROWTH

16%

7%

24%

1. Average 2016-18
2. AKKA current operating profit

JANUARY 2020

GROWTH

2016-18

CAGR

REVENUE

OF WHICH: ORGANIC1

EBITA2

20%

12%

42%

32

DNA	DATA RESPONS	Q3 2019	H1 2019

AN ACCRETIVE TRANSACTION

6%

8.0%

4.3%

Source: Factset consensus

JANUARY 2020

2019E

ORGANIC	>10%
GROWTH
EBITA	11.9%
MARGIN
MARGIN
7.9%
NET INCOME

→ Estimated EPS accretion > 20%1	33
1 Based on 2020 consensus EPS and fully phased-in synergies

DNA	DATA RESPONS	Q3 2019	H1 2019

STRONG COMMERCIAL SYNERGIES

Platform for

attracting more

digital talents

Capacity on

federating other

niche players

JANUARY 2020

Boosting digital

activities in countries

with high-demand

Deploying AKKA offering in Nordics

1. EUR200M additional REVENUE and c. EUR25M additional EBITA
2. 
   expected yearly
   by end 2022

Opening new doors

for Data Respons

Leverage Data

Respons' software

expertise

34

Key transaction terms

DNA	DATA RESPONS	Q3 2019	H1 2019

KEY TRANSACTION TERMS

• AKKA to launch a voluntary tender offer with support from Data Respons' Board of Directors on or around 13th January 2020
• NOK 48 per share in cash representing a clear premium (as of 18 Dec 2019) of:
• • 20% over spot price
  • 29% over last 3 month VWAP
  • 34% over last 6 months VWAP
• Corresponds to equity value of NOK 3.7BN / € 366M1
• Offer subject to customary regulatory approval in Germany and 90% acceptance rate from Data Respons shareholders

Key support &	•	Transaction recommended unanimously by both Boards of Directors
commitments	•	Irrevocables totalling c.43% of the register, including the key shareholders

	•	Committed financing in place via existing credit facilities to fund 100% of the purchase price
Financing	•	Ample financial headroom & liquidity post acquisition

JANUARY 2020	1 As of 18 Dec, 2019 - NOK/EUR of 0.09962 exchange rate	35

DNA	DATA RESPONS	Q3 2019	H1 2019

ENVISAGED TRANSACTION TIMELINE

DecemberJanuary

December 19th	Mid-Jan
Announcement Board	Tender offer
recommendation	launched

Offer document approval period

JANUARY 2020

Closing of transaction expected by Q1 2020

FebruaryMarch

Mid-Feb Tender offer results announced

36

Q3 2019

H I G H L I G H T S

37

+7.4%*

€441.1M

GROUP

• Pro-formagrowth JANUARY 2020

DNA	DATA RESPONS	Q3 2019	H1 2019

STRONG PERFORMANCE IN Q3 2019

+2.4%*

+7.0%*

€123.5M€163.3M

GERMANY

FRANCE

+7.8%*+16.8%*

€75.9M€78.4M

INTERNATIONAL

NORTH AMERICA

38

DNA	DATA RESPONS	Q3 2019	H1 2019

STRONG PERFORMANCE IN YTD 9M 2019

+8.0%*

€1,332.5M

GROUP

• Pro-formagrowth JANUARY 2020

+1.7%*

+7.7%*

€378.9M€494.1M

GERMANY

FRANCE

+6.7%*+22.7%*

€228.7M€230.8M

INTERNATIONAL

NORTH AMERICA

39

DNA	DATA RESPONS	Q3 2019	H1 2019

Q3 2019: REVENUE BY BU

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

JANUARY 2020

40

DNA	DATA RESPONS	Q3 2019	H1 2019

YTD 9M 2019: REVENUE BY BU

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

JANUARY 2020

41

DNA	DATA RESPONS	Q3 2019	H1 2019

YTD 9M 2019: A WELL BALANCED REVENUE STREAM

		TOTAL GROUP
	North	+5.9% ORGANIC GROWTH
France
America
37%
18%
		France +7.7%
	YTD 9M 2019	North America +43.3%
	€ 1,332.5M
	Germany +1.7%
Intl	Germany	International +6.2%

17%28%

JANUARY 2020

42

DNA	DATA RESPONS	Q3 2019	H1 2019

YTD 9M 2019: STRONG DIVERSIFICATION

Chemistry and health

Energy 5% 4%

Railways 4%

Suppliers 12%

Others 11%

	Automotive	ORGANIC GROWTH
	33%	(YTD 9M 2019)
YTD 9M 2019	Mobility
€ 1,332.5M	80%	Aero	Auto
		+10%	+6%

	Railways
Aerospace	+17%
31%

JANUARY 2020

43

FINANCIAL RESULTS

H 1 2 0 1 9

44

DNA	DATA RESPONS	Q3 2019	H1 2019

H1 2019: VERY STRONG PERFORMANCE

+25% YoY

+23% YoY

+38% YoY

€891.4M €60.0M €1.31

H1 2019 REVENUE

OPERATING PROFIT

EPS

JANUARY 2020

45

DNA	DATA RESPONS	Q3 2019	H1 2019

H1 2019: PROFIT FROM BUSINESS OPERATIONS

+50 BPS

At 10.5%*

+40 BPS		GROUP OPERATING
+40 BPS
At 7.7%	MARGIN Excl. PDS:
	At 11.1%

+250 BPS

+40

BPS

At 3.6%

at 7.3%

France	Germany	North America	Intl
* Incl. CIR		H1 2018		H1 2019	46
JANUARY 2020

DNA	DATA RESPONS	Q3 2019	H1 2019

BECOMING A LEADER IN NORTH AMERICA

STRONG INCREASE OF PDS TECH PROFITABILITY

€161M 23%3.6%

PDS TECH H1 2019	PDS TECH	PDS TECH H1 2019
REVENUE	REVENUE GROWTH	OPERATING MARGIN

JANUARY 2020

47

DNA	DATA RESPONS	Q3 2019	H1 2019

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%

JANUARY 2020

48

DNA	DATA RESPONS	Q3 2019	H1 2019

H1 2019: HEALTHY BALANCE SHEET

Assets

In €M	H1 2019	H1 2018
GOODWILL	611.3	286.1
INTANGIBLE ASSETS	20.4	19.4
PROPERTY, PLANT &	93.7	89.6
EQUIPMENT
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	187.3	278.2
EQUIVALENTS
CURRENT ASSETS	593.8	657.5
TOTAL ASSETS	1,381.1	1,205.7

Liabilities

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	83.5	7.7
LIABILITIES
CURRENT LEASE	28.8
LIABILITIES/IFRS16
OTHER CURRENT LIABILITIES	353.1	375.8
CURRENT LIABILITIES	468.3	388.0
TOTAL LIABILITIES	1,381.1	1,205.7

x2.3

LEVERAGE

JANUARY 2020

49

DNA	DATA RESPONS	Q3 2019	H1 2019

NET DEBT 30th JUNE 2019 + ODIRNANE

NET DEBT (€M)		GEARING
179.8 M€		41%

11.4

317.5

200

25								127.5
52	7.5									5
2019	2021			2022	2023	2024	2027
			SSD			UNDRAWN RCF		PDS RCF		CP

JANUARY 2020

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

CP
5%	SSD
	93%

RCF:

€545M (not drawn as of 23/12/2019)

NEU CP ISSUE:

€240M potential unused

DEBT CHARACTERISTICS:
•	Average maturity of 3 years	•	Leverage pos ODIRNANE:
•	Average cost of debt: 1.4%		1.15x *
		•	Gearing post ODIRNANE:
			41% *

*without IFRS16

50

DNA	DATA RESPONS	Q3 2019	H1 2019

NET DEBT SEASONALITY (€M)

369

279

																											223					244
																															195
																			141
											109	94					97
					76
30					46
		FY 13		H1 14				FY 14				H1 15				FY 15				H1 16				FY 16				H1 17				FY 17				H1 18				FY 18				H1 19
JANUARY 2020																																							51

DNA	DATA RESPONS	Q3 2019	H1 2019

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

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

(32.7) (14.9)

125.7

278.2

(25.6)

(119.5)

(13.8) 12.8 (22.9)

187.3

JANUARY 2020

52

DNA	DATA RESPONS	Q3 2019	H1 2019

PAVING THE WAY TO CLEAR 2022:

STRONG CAPACITY TO FUEL GROWTH

FINANCING CAPACITY

€907M

GROSS CASH	CF*	ODIRNANE
30/06/2019
+ €545M	+ €175M
€187M

* Credit Facility
JANUARY 2020	53

DNA	DATA RESPONS	Q3 2019	H1 2019

2019 TARGETS CONFIRMED

	Organic		Operating		Free
			cash flow
	growth		margin
			generation
10%
≥ 6%		≥ 8%		≥ 5%

0%

JANUARY 2020

54

THANK YOU!

Q&A SESSION

55

JANUARY 2020	56

C O N T A C T

						AKKATechnologies1
akka-technologies		@akka_tech

akka-technologies.com

JANUARY 2020

57

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.

JANUARY 2020

58

APPENDICES

59

DNA

DATA RESPONS

Q3 2019

H1 2019

H1 2019: REVENUE BY BU

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

JANUARY 2020

60

DNA

DATA RESPONS

Q3 2019

H1 2019

REVENUE BY QUARTER (€M)

+26.1%

443.7

446.3

445.2

441.1

	357.6	353.9	358.0	349.8
328.3	338.2

299.5	310.3

268.3 281.8 272.9

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

JANUARY 2020

61

DNA

DATA RESPONS

Q3 2019

H1 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%

JANUARY 2020

62

DNA DATA RESPONS Q3 2019 H1 2019

H1 2019: IFRS 16 impact

IN €M		H1 2019	IFRS 16		H1 2019
(W/O IFRS 16)	IMPACT		(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	-6.5		-1.7	-8.2
RESULT
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

JANUARY 2020

63

DNA

DATA RESPONS

Q3 2019

H1 2019

H1 2019: HEALTHY BALANCE SHEET

Assets

In €M	H1 2019	H1 2018
GOODWILL	611.3	286.1
INTANGIBLE ASSETS	20.4	19.4
PROPERTY, PLANT &	93.7	89.6
EQUIPMENT
Right of use/ IFRS16	155.7
NON-CURRENT FINANCIAL	38.8	35.8
ASSETS
AFFILIATED COMPANIES & JV	47.4	46.6
OTHER NET LONG-TERM	35.1	61.4
ASSETS
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	187.3	278.2
EQUIVALENTS
CURRENT ASSETS	593.8	657.5
TOTAL ASSETS	1,381,1	1,205.7
JANUARY 2020

Liabilities

In €M	H1 2019	H1 2018
GROUP SHARE OF EQUITY	267.8	237.1
NON-CONTROLLING	0.4	61.3
INTERESTS
SHAREHOLDERS' EQUITY	268.2	273.4
NON-CURRENT ACCRUALS	28.7	26.0
OTHER NON-CURRENT	487.2	518.3
LIABILITIES
NON-CURRENT LEASE	128.7
LIABILITIES/IFRS16
NON-CURRENT LIABILITIES	644.6	544.3
CURRENT ACCRUALS	2.9	4.5
OTHER CURRENT FINANCIAL	83.5	7.7
LIABILITIES
CURRENT LEASE	28.8
LIABILITIES/IFRS16
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

x2.3

LEVERAGE

64

DNA

DATA RESPONS

Q3 2019

H1 2019

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

NET CASH		CHANGE IN			ACQUISITIONS &	FINANCING	FINANCIAL INTERESTS	NET CASH
31/12/18	CASH FLOW	WORKING CAPITAL	TAXES	CAPEX	CHANGE IN SCOPE	ACTIVITIES	& OTHER	30/06/19
	58.9
		(102.1)
			(9.0)	(14.3)
				(14.2)
					3.1	(6.9)
271.8
								187.3
JANUARY 2020								65

DNA

DATA RESPONS

Q3 2019

H1 2019

DSO (DAYS SALES OUTSTANDING)

7675

67	64	66

	59
54	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
JANUARY 2020										66

DNA

DATA RESPONS

Q3 2019

H1 2019

FACTOR (DAYS OF REVENUE)

			51	52
		49
41	42		40
37	37
32		34

FY 2014	H1 2015	FY 2015	H1 2016	FY 2016	H1 2017	FY 2017	H1 2018	FY 2018	H1 2019
JANUARY 2020									67

DNA

DATA RESPONS

Q3 2019

H1 2019

HEADCOUNT (END OF PERIOD)

20,901

15,180 17,144

12,133 13,055

14,913 15,180

16,288

15,515

+1.3%

21,019	20,904	20,624	20,901

17,144

16,619

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

JANUARY 2020

68

DNA

DATA RESPONS

Q3 2019

H1 2019

TURNOVER RATE (YTD)

-20 bps

23.3% 23.1%

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

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*

* Excluding PDS Tech

JANUARY 2020

69

DNA

DATA RESPONS

Q3 2019

H1 2019

UTILISATION RATE (YTD)

								+40 BPS
89.5%	89.6%	89.6%	89.6%	89.7%	89.7%	89.9%	89.6%	89.5%
88.9%	88.9%				88.9%			89.1%
								88.3%

87.8%

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*

* Excluding PDS Tech

JANUARY 2020

70

DNA

DATA RESPONS

Q3 2019

H1 2019

GLOSSARY

Cash flow from operations 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 of shares

outstanding 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 % of total revenue.

Leverage: ratio of net consolidated financial debt

to EBITDA.

Net Debt: The aggregate of cash and cash equivalents, overdrafts 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).

JANUARY 2020

Operating profit: profit form ordinary 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.

71

72