R&D pure player ANALYST DAY. October 17 th, Full spectrum of services. Global

Transcription

1 R&D pure player ANALYST DAY October 17 th, 2013 Full spectrum of services Global

2 Agenda 1. Market trends Growth Strategy mid-term status 3. Monitoring Altran Ambition

3 Our Ambition To become the preferred global l partner in innovation and high-tech engineering consulting for our clients and employees 3

4 Agenda 1. Market trends Growth Strategy mid-term status 3. Monitoring Altran Ambition

5 The Outsourced R&D Market Worldwide R&D spending A 1,122.5bn spending on R&D, 9.7% CAGR over the last 10 years ( 03-12) +9.7% CAGR

6 The Outsourced R&D Market Size of the Market Global outsourced R&D amounts 119bn in Not addressable 6 Source: Battelle, World Bank, OECD, PAC * : Outsourced R&D includes Testing, Prototyping, LXP out of Design and IT R&D related activities

7 The Outsourced R&D Market Growth of the Market Global outsourced R&D growth depends on BERD growth and outsourcing rate. With a CAGR of 68% 6.8%, it should reach 159bn in % CAGR Source: Battelle, World Bank, OECD, PAC * : Outsourced R&D includes Testing, Prototyping, LXP out of Design and IT R&D related activities

8 The Outsourced R&D Market Growth per countries Market growth is linked to GDP growth 18,0% 16,0% Outsourcing Rate Outsourcing R&D Market size 14,0% 12,0% Market growth is primarily linked to outsourcing rate growth Market growth is both linked to GDP and outsourcing rate growth 10,0% 8,0% 6,0% 4,0% GDP Growth CAGR '13/'10 2,0% 0,0% 2,0% 4,0% 6,0% 8,0% 10,0% 12,0% 8 Source: Battelle, World Bank, OECD, PAC

9 Variety of Services The extension of R&D activities Outsourced R&D services focus on the core design of products & services but may extend to prototyping, testing and manufacturing & aftersales. Research R&D Testing Prototyping Manufacturing & Aftersales Idea Design Product Analyze Validate Specify Integrate R&D related IT Realize 9

10 Demands of Clients SIZE & SPAN Fewer global partners EXPERTISE More experienced engineers QUALITY Reliable partners PRICE Value for money thanks to superior quality and positioning 10

11 Agenda 1. Market trends Growth Strategy mid-term status 3. Monitoring Altran Ambition

12 2015 Growth Strategy Mid-term status FOCUS ON 6 EUROPEAN SEEK CORE EUROPEAN COUNTRIES FOOTPRINT & PARTNERSHIPS FOR CORE SOLUTIONS BECOME A STRATEGIC PARTNER FOR ALTRAN MORE THAN TRIPLE 20 CLIENTS OFFSHORING PRESENCE IN INDIA OPTIMISE NON-CORE COUNTRIES D DEVELOP CHINA 12

13 1 st Strategic Goal: Focus on 6 European Core Countries To be in the Top 3 in each core country Higher market share implies better EBIT and resilience to market cycles Country 12 EBIT Altran s competitive ranking in Europe Estimated Market Share 13

14 2 nd Strategic Goal: Optimise Non-core Countries Non-core Countries have been optimised and lead for H1-13 to an EBIT tied with core countries 14

15 3 rd Strategic Goal: Develop China Key partnerships Altran FTE in China JV with Beyondsoft in Telecom market (June 2013) X Other JVs to come in the field of Mechanical Engineering and Nuclear End 2010 Mid

16 4 th Strategic Goal: Triple Offshoring Presence in India Altran in India: on track to meet 2015 target Altran FTE in India 200 ~400 ~ target 16 21

17 5 th Strategic Goal: Become a Strategic Partner for More than 20 Clients New strategic partners since 2011 (selection) AIT ASD-R EILIS TEM 17

18 6 th Strategic Goal: Seek European Footprint & Partnerships for Core Solutions Since March 2013 Technolo ogy demonst trators Since June

19 Agenda 1. Market trends Growth Strategy mid-term status 3. Monitoring Altran Ambition

20 Four Strategic KPI Client Satisfaction Delivery Quality Employee Satisfaction Financial i Performance 20

21 KPI: Client Satisfaction Altran #1 in Net Promoter Score compared to its R&D competitors 1 st KPI: French R&D #1-1 "If you had to advise a colleague or a close acquaintance on choosing an innovation and high-tech engineering consulting firm, would you this company?" Client Satisfaction French R&D #2-19 French R&D #3-20 NPS = Promoters - Detractors French R&D #4-23 Definition Fred Reichheld, Bain & Company, and Satmetrix as published in Harvard Business Review GFK independent survey based on 2695 answers

22 KPI: Employee Satisfaction Employee satisfaction survey nd KPI: Examples of high scoring countries 94% 93% 92% 89% 88% Employee Satisfaction Overall employees satisfaction on Altran Employee Feedback Program survey

23 KPI: Delivery yquality Quality of delivery tracked at project level 3 rd KPI: No aggregation at Group level New IT system on projects will allow full tracking of quality at various levels (2015) Delivery Quality 23

24 KPI: Financial Performance 5 Financial KPIs Growth (versus Last Year) our target +8% 4 th KPI: Direct Margin Invoicing rate 35% Financial Performance 88% Cost Ratio 60% Cash (days of DSO) 80 24

25 Agenda 1. Market trends Growth Strategy mid-term status 3. Monitoring Altran Ambition

26 2015 Ambition 1 b Revenues > 2bn 2 EBITA: 11%-12% of sales (at top of the cycle ambition) 3 Free Cash-Flow: 4% of sales (at top of the cycle ambition) 26

27 2015 Ambition Revenues 2bn 1.6bn m 250m Organic Growth Ambition 2015 Altran Pro Forma m Acquisitions 27

28 2015 Ambition Revenues Key accounts strategy implemented Next steps A d i 4 i D ll per account to foster growth Implement new CRM (2015) Accounts segmented in 4 categories Deeper allocate resources 28 Bottom-up strategy and budget per global and key account (75% of revenues) Top-down monitoring through BI dashboards

29 2015 Ambition Revenues Outsourced R&D market size 2012 > Product Development CAGR >10% ~ 5bn > Intelligent Systems CAGR >15% ~ 14bn > Lifecycle Experience CAGR >10% ~ 7bn 29 Market size for 2012 % variation in CAGR 2016 vs 2010

30 2015 Ambition Profitability Direct Margin 33% Gross Margin 28% Invoicing rate 88% EBITA 11% Cost Ratio 60% 30

31 2015 Ambition Free Cash Flow 2012 Free Cash-Flow: 34% 3.4% New objective: 3% Free Cash-Flow 6% (at top of the cycle ambition) 31

32 Conclusion Organisation and teams in place Ambitions shared with top employees Accounts strategy defined and closely followed Monitoring in place for key business and financial ratios New IT systems ( ) to enhance monitoring and accelerate top line 32

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