FY 2019 RESULTS Mauro RICCI Nicolas VALTILLE Kenneth RAGNVALDSEN - - PowerPoint PPT Presentation

1

60

FY 2019 RESULTS

Mauro RICCI Nicolas VALTILLE Kenneth RAGNVALDSEN 18TH March 2020

18TH March 2020

2

60

DIGITAL FINANCE STRATEGY 2019 RESULTS

STRONG RETURNS OVER YEARS

2019 RESULTS

18TH March 2020

3

60

SUCCESSFUL INTEGRATION OF CREATING ½ bn € DIGITAL PLATFORM

SOLID FUNDAMENTALS

2019 RESULTS

18TH March 2020

4

60

SOLID FUNDAMENTALS

8% MARGIN ACHIEVED IN SPITE OF Q4

+20% YoY

2019 REVENUE

€1,801.5M

+43% YoY

€3.64

EPS

2019 RESULTS

18TH March 2020

5

60

STRATEGY DIGITAL

AGENDA

FINANCE

2019 RESULTS

6

60

FY 2019

FI N AN C I AL RESU LTS

NICOLAS VALTILLE

G R O U P M A N A G I N G D I R E C T O R

2019 RESULTS

18TH March 2020

7

60

DIGITAL FINANCE STRATEGY

SOLID FUNDAMENTALS

ACTIVITY BALANCE REVENUE

€ 1,801.5M

+4.4% ORGANIC

NET DEBT

€ 73.3M

LEVERAGE 0.43x

FCF

€ 99.3M

5.5% OF REVENUE

OPERATING MARGIN

€ 143.7M

8.0% OF REVENUE

2019 RESULTS

18TH March 2020

8

60

DIGITAL FINANCE STRATEGY

Intl

17%

France

37%

Germany

29%

FY 2019

€ 1,801.5M

North America

17%

+4.4%

FY 2019 ORGANIC GROWTH France +5.8% Germany +1.6% North America +9.2% International +5.0%

A WELL BALANCED REVENUE STREAM

2019 RESULTS

18TH March 2020

9

60

DIGITAL FINANCE STRATEGY

Mobility

80%

Automotive 33% Aerospace 31% Suppliers 12% Railways 4%

Energy 4% Life sciences 5% Others 11%

FY 2019

€ 1,801.5M

Auto

+4%

Aero

+7%

Railways

+22%

A WELL BALANCED REVENUE STREAM

FY 2019 ORGANIC GROWTH

2019 RESULTS

18TH March 2020

10 60

DIGITAL FINANCE STRATEGY

2019 PROFIT FROM BUSINESS OPERATIONS: 8%

* Incl. CIR (Research Tax Credit)

France Germany North America Intl FY 2018 FY 2019

At 9.2%

+ 20 BPS

At 4.3%

+ 180 BPS

At 11.2%*

Stable

At 12.6%*

+ 120 BPS

2019 RESULTS

18TH March 2020

11 60

DIGITAL FINANCE STRATEGY €M FY 2019 FY 2018 % CHANGE

REVENUE 1,801.5 1,505.3 19.7% PROFIT FROM ORDINARY OPERATIONS 143.7 118.1 21.7% OTHER NON-RECURRING (18.7) (18.2) FREE SHARES, STOCK OPTIONS (3.8) (9.8) OPERATING INCOME / EBIT 121.2 90.1 34.6% % REVENUE 6.7% 6.0% 70 bps FINANCIAL RESULT (17.5) (17.1) PRE-TAX INCOME 103.7 73.0 42.2% TAX EXPENSE (30.4) (19.9) CONSOLIDATED NET INCOME 73.3 53.1 38.1% MINORITY INTEREST (0.2) (2.9) GROUP NET INCOME 73.0 50.1 45.7% EPS 3.64 2.55 42.7%

PROFITABILITY PROFILE

2019 RESULTS

18TH March 2020

12 60

DIGITAL FINANCE STRATEGY

2019: EVOLUTION OF CASH POSITION (€M)

271.8 469.2 131.5 19.1 (21.0) (30.3) (20.6) (14.0) 148.7 (16.0)

NET CASH 31/12/18 CASH FLOW CHANGE IN WORKING CAPITAL TAXES CAPEX ACQUISITIONS & CHANGE IN SCOPE DIVIDENDS FINANCING ACTIVITIES FINANCIAL INTERESTS & OTHER NET CASH 30/06/19

FCF: 5.5% of REVENUE

2019 RESULTS

18TH March 2020

13 60

DIGITAL FINANCE STRATEGY

X0.43

LEVERAGE

X0.15

GEARING

Assets Liabilities

In €M FY 2019 FY 2018

GOODWILL 367.7 360.8 INTANGIBLE ASSETS 24.7 20.0 PROPERTY, PLANT & EQUIPMENT 91.9 91.2 Right of use/ IFRS16 149.7

• OTHER NON CURRENT ASSETS

152.8 151.8 NON-CURRENT ASSETS 786.9 623.8 INVENTORIES 9.5 12.7 RECEIVABLES 339.7 348.0 CASH AND CASH EQUIVALENTS 469.2 271.8 CURRENT ASSETS 818.4 632.5 TOTAL ASSETS 1,605.3 1,256.3

In €M FY 2019 FY 2018

GROUP SHARE OF EQUITY 477.6 258.7 NON-CONTROLLING INTERESTS 0.6 0.3 SHAREHOLDERS’ EQUITY 478.2 258.7 NON-CURRENT LIABILITIES 633.0 520.2 CURRENT ACCRUALS 2.5 4.3 OTHER CURRENT FINANCIAL LIABILITIES 74.8 71.2 CURRENT LEASE LIABILITIES/IFRS16 29.7 OTHER CURRENT LIABILITIES 387.0 401.9 CURRENT LIABILITIES 494.0 477.4 TOTAL LIABILITIES 1,605.3 1,256.3

2019: HEALTHY BALANCE SHEET

2019 RESULTS

18TH March 2020

14 60

DIGITAL FINANCE STRATEGY

SOURCING EFFICIENCY

DEBT AVERAGE MATURITY 2.9 YEARS AVERAGE COST 1.7%

EQUITY

ODIRNANE

173€M

FACTOR

+64€M

1.9 MONTHS STABLE LEVERAGE: 0.43x GEARING: 0.15x

RCF

DEBT

370€M

2019 FINANCING ACTIONS

2019 RESULTS

18TH March 2020

15 60

DIGITAL FINANCE STRATEGY

DEBT MATURITY 31st December 2019

7.5 317.5 127.5 5 200 370 8 36 72 2020 2021 2022 2023 2024 2027 SSD UNDRAWN RCF PDS RCF UNDRAWN PDS RCF CP

€ 73M

NET DEBT (€M)

0.43x

LEVERAGE

15%

GEARING

2019 RESULTS

18TH March 2020

16 60

DIGITAL FINANCE STRATEGY

COVENANTS 175% 4.0x

AFTER DATA RESPONS

END 2019 DATA RESPONS PRO FORMA PRO FORMA

NET DEBT EQUITY EBITDA €73M €478M €169M €382M €20M €455M €478M €189M GEARING LEVERAGE

15% 0.43X 95% 2.41X

2019 RESULTS

18TH March 2020

17 60

DIGITAL FINANCE STRATEGY

€ 469 M

GROSS CASH

€ 258 M

NEU CP*

€ 610 M

RCF

€ 1,337 M

Financing capacity

*NegotiableEuropean Commercial Paper. New CP & RCF non used at end 2019

STRONG FINANCIAL SUSTAINABILITY

2019 RESULTS

17 MARCH 2020

18 60

DATA RESPONS

KENNETH RAGNVALDSEN

D A T A R E S P O N S C E O

LOCATIONS

NORWAY

5

LOCATIONS

DENMARK

2

LOCATIONS

GERMANY

7

LOCATIONS

SWEDEN

3

Our companies:

AT A GLANCE

I.9 billion NOK 1 400 specialists >1 000s R&D projects 40 nationalities

TAIWA N

A complete technology partner

for smarter embedded and IoT solutions

• Digitalisation of the industries of tomorrow!

Connectivity IoT / Digitalisation Software & APPs Security Embedded Solutions R&D Services AI / Analytics Sensor Mobile services Electrification Cloud

We develop everything from SENSOR LEVEL to the MOBILE APP making us a good partner for your DIGITALISATION

IoT Endpoints IoT Infrastructure Internet Infrastructure Cloud Devices

Sensors/ actuators Routers & Gateways

LAN/ Edge routers

IoT Software & apps IoT Platform RFID

Z-Wave Java IPv6

MQTT

ZigBee

NFC

BLE

WiFi

LPWAN

RPL AMQP XMPP

HTTPS HTTP WPA2 Authentication Encryption Port protection

UI/UX

PPSK TLS

Python

C

C++

C#

Analytics AI

REVENUE

200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 0001020304050607080910111213141516171819

LONG TERM & PROFITABLE GROWTH

20x

2000-2019

17%

annual growth

2000-2019

REVENUES

1 867

• Continued organic initiatives (locally driven)
• Diversified on industry - Specialist level on skills
• Large account focus (Land & Expand)
• M&A in Strategic direction

PROFITABLE GROWTH

EBITA

216.2 (11.6%)

• Focus on SOFTWARE/DIGITAL and

recurring business models

• Value add-adding services and support

agreements

• Risk management and cost discipline

964 1,040 1,242 1,488 1,867 500 1,000 1,500 2,000

MNOK 2015 2016 2019 2017 2018 +18%

50 100 150 200 250

2019 MNOK 2017 2015 142.8 2016 2018 55.2 70.7 98.6 216.2 +41%

DIVERSIFIED CUSTOMER PORTFOLIO

FINANCE & PUBLIC 4% TELECOM & MEDIA 17% MOBILITY 37% INDUSTRY & AUTOMATION 13% ENERGY & MARITIME 11% SPACE, DEFENCE & SECURITY 10% OTHER 1% MEDTECH 6%

STRONG DIVERSIFICATION

across several industries

Next Gen COMMUNICATION SOLUTION

in the space, defence and security industry

• f NOK 38 million

Digitalisation and MACHINE LEARNING

in the German banking sector of NOK 15 million

Data driven DEVELOPMENT system

Contract in Germany of NOK 225 million

5G INFRASTRUCTURE for IoT applications

Contracts in Sweden of SEK 75 million

SW EATS the world

DIGITALISATION OF

BUSINESS MODELS

DIGITALISATION

– the SKILL MATRIX changes faster

New payment solutions Asset optimisation Condition monitoring

DIGITALISATION OF

PRODUCTS AND SERVICES

Connected assets Connectivity / 5G Secure communication Mobile services Software-as-a-service Fleet management Application development Test management Connected value chains Backend system

• ptimisation

Automatically data collection Data driven decision making

DIGITALISATION OF

PROCESSES

Self-services Digital process flows Industry 4.0

R&D focus towards DATA and SW TECHNOLOGY

Autonomous systems Digital twins Connected services SMART concepts Shared mobility Pay per use Car-as-a-service Computer Aided Design Computer Aided Testing “over the air” services Subscription-based On-demand services Ad-supported models New entertainment systems Cloud Embedded / Edge IoT AI / Analytics Sensors Smart factory

IoT

In-vehicle infotainment system Embedded Software Autonomous driving Sensors SW Frameworks AI/Analytics New Telematics solutions Connectivity Remote SW update Security Condition monitoring Fleet Management systems Testing Digitalisation of the Product Development Cycle Car sharing User based insurance Car-as-a-service

CARS ARE BECOMING COMPUTERS ON WHEELS

APPS AND SERVICES DATA ANALYTICS ENTERTAINMENT PLATFORM AUTONOMOUS DRIVE/OPERATING SYSTEM

Data Respons 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

POSITIONED IN THE ATTRACTIVE SEGMENTS

EVERYTHING DIGITALISED, CONNECTED, AUTOMATED EVERYWHERE

2019 RESULTS

17 MARCH 2020

30 60

STRATEGY

MAURO RICCI

G R O U P C H A I R M A N & C E O

2019 RESULTS

18TH March 2020

31 60

DIGITAL FINANCE STRATEGY

TECH LINES TO THE MARKET TRENDS

• Data Science
• Connectivity

and Architectures

• Cyber security
• Human Machine

Interface

• Autonomous

Systems

• Collaborative

Robotic

• Computer Vision
• Propulsion Systems
• High Density

Storage

• Efficiency

Digital tech Green Energy Automation

TECH LINES VS USAGES

Digital A utomotive A eronautics Railway Defence Life Sciences Telecoms Space Energy

2019 RESULTS

18TH March 2020

32 60

DIGITAL FINANCE STRATEGY

€ 2 BN*

Embedded IT

700

Mechanical & Design 800 Digital

500

* Proforma revenue including Data Respons

POSITIONED FOR GROWTH

€ 240 M

Embedded

50

Mechanical & Design 190

FY 2007 FY 2019*

€M €M

2019 RESULTS

18TH March 2020

33 60

DIGITAL FINANCE STRATEGY

Boosting Value Creation through CoE

• Big Data
• Manufacturing
• Aircraft Modification
• System Engineering
• Software &

Embedded Systems …..

• IoT
• Software
• Digital
• Telco
• Embedded
• ….
• Full Vehicle Dev.
• Manufacturing
• EE
• Digital
• Embedded
• IT
• …..

18TH March 2020

34

60

DIGITAL FINANCE STRATEGY 2019 RESULTS

2018 2019 2020 2021 2022 GROWTH ACCELERATORS

AKKA IN ACTION: BUILDING UP THE FUTURE

* AKKA Proforma figures including DATA RESPONS

Automotive Aerospace Digital SCD

€ 1.5Bn € 2Bn

€ 5Bn € 2.5Bn

2019 RESULTS

18TH March 2020

35 60

DIGITAL FINANCE STRATEGY

AKKA IN ACTION: OUR TARGETS

Revenue

€2.5BN

Operating profit from recurring activities

€250M

Free cash flow generation

€150M

2019 RESULTS

17 MARCH 2020

36 60

THANK YOU!

Q&A SESSION

2019 RESULTS

18TH March 2020

37 60

CONTACT

akka-technologies.com

akka-technologies @akka_tech AKKATechnologies1

2019 RESULTS

18TH March 2020

38 60

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.

2019 RESULTS

17 MARCH 2020

39 60

APPENDICES

FINANCIAL DATA

2019 RESULTS

18TH March 2020

40 60

DIGITAL FINANCE STRATEGY

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

FRANCE 661.4 625.4 5.8% 5.8% 5.8% GERMANY 519.3 511.0 1.6% 1.6% 1.6% NORTH AMERICA 305.0 70.5 332.3% 9.2% 17.6% INTERNATIONAL 315.9 298.4 5.8% 5.0% 5.8%

TOTAL GROUP 1,801.5 1,505.3 19.7% 4.4% 6.3%

2019: REVENUE BY BU

2019 RESULTS

18TH March 2020

41 60

DIGITAL FINANCE STRATEGY

REVENUE BY QUARTER (€M)

226.1 235.6 254.4 285.6 268.3 281.8 272.9 299.5 328.3 338.2 310.3 357.6 353.9 358.0 349.8

443.7 446.3 445.2 441.1 469.0

Q1 15 Q2 15 Q3 15 Q4 15 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 Q4 19

+5.7%

2019 RESULTS

18TH March 2020

42 60

DIGITAL FINANCE STRATEGY

Revenue (€ million) Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 France 169.1 161.7 163.3 167.2 661.4 % change 5.4% 11.0% 7.0% 0.3% 5.8% Organic Growth 5.4% 11.0% 7.0% 0.3% 5.8% Germany 126.2 129.2 123.5 140.4 519.3 % change 6.4%

• 3.1%

2.4% 1.5% 1.6% Organic Growth 6.4%

• 3.1%

2.4% 1.5% 1.6% North America 75.6 76.8 78.4 74.2 305.0 % change 1,433.1% 1,392.7% 1,186.6% 36.4% 332.3% Organic Growth 35.9% 60.1% 35.1%

• 1.2%

9.2% International 75.4 77.4 75.9 87.2 315.9 % change 7.7% 4.9% 7.8% 3.6% 5.8% Organic Growth 7.3% 4.4% 6.9% 2.1% 5.0% Total Group 446.3 445.2 441.1 469.0 1,801.5 % change 26.1% 24.4% 26.1% 5.7% 19.7% Organic Growth 6.6% 5.1% 5.9% 0.8% 4.4%

QUARTERLY REVENUE BY BU

2019 RESULTS

18TH March 2020

43 60

DIGITAL FINANCE STRATEGY

2019: OPERATING PROFIT FROM ORDINARY OPERATIONS

€M FY 2019 % of revenue FY 2018 % of revenue % CHANGE

BU FRANCE 56.3 8.5% 50.8 8.1% 10.8% BU GERMANY 47.8 9.2% 45.9 9.0% 4.1% BU NORTH AMERICA 13.2 4.3% 1.8 2.5% 633.3% BU INTERNATIONAL 36.6 11.6% 32.3 10.8% 13.3% BU HOLDINGS

• 10.2
• 26.6
• 19.7%

TOTAL GROUP 143.7 8.0% 118.1 7.8% 21.7%

2019 RESULTS

18TH March 2020

44 60

DIGITAL FINANCE STRATEGY

IFRS P&L

In thousands of euros FY 2019 FY 2018 % CHANGE

REVENUE 1,801,486 1,505,326 19.7% External expenses (388,924) (386,076) 0.7% Taxes and duties (12,714) (12,262) 3.7% Personnel expenses (1,235,913) (995,519) 24.1% Net depreciation and provisions (43,853) (20,350) 115.5% Other current expenses / income 2,479 6,896

• 64.1%

Income from equity affiliates 2,487 1,828 36.1% Free shares and stock options (3.824) (9,779)

• 60.9%

OPERATING INCOME / EBIT 121,223 90,065 34.6% Income from cash and cash equivalents 528 174 203.4% Cost of gross financial debt (16,692) (14,894) 12.1% COST OF NET FINANCIAL DEBT (16,164) (14,720) 9.8% Other financial income and expenses (1,343) (2,395) 43.9% PROFIT BEFORE TAX 103,716 72,950 42.2% Tax expenses (30,447) (19,891) 53.1% CONSOLIDATED NET INCOME 73,270 53,058 38.1% Minority interests (229) (2,914)

• 92.1%

GROUP NET INCOME 73,041 50,145 45.7% Earnings per share Diluted earnings per share Weighted average number of ordinary shares outstanding Weighted average number of ordinary shares plus potential dilutive shares 3.64 3.61 19,937,521 20,254,054 2.55 2.50 19,641,030 20,071,917 42.7% 44.4% 1.5% 0.9%

ACCORDING TO FSMA & AMF RECOMMENDATION

2019 RESULTS

18TH March 2020

45 60

DIGITAL FINANCE STRATEGY

2019: HEALTHY BALANCE SHEET

In €M FY 2019 FY 2018

GOODWILL 367.7 360.8 INTANGIBLE ASSETS 24.7 20.0 PROPERTY, PLANT & EQUIPMENT 91.9 91.2 Right of use/ IFRS16 149.7 NON-CURRENT FINANCIAL ASSETS 44.9 40.3 AFFILIATED COMPANIES & JV 47.9 46.2 OTHER NET LONG-TERM ASSETS 27.2 31.1 DEFERRED TAX ASSETS 32.8 34.1 NON-CURRENT ASSETS 786.9 623.8 INVENTORIES 9.5 12.7 ACCOUNTS RECEIVABLE 224.8 261.9 OTHER RECEIVABLES 114.9 86.1 CASH AND CASH EQUIVALENTS 469.2 271.8 CURRENT ASSETS 818.4 632.5 TOTAL ASSETS 1,605.3 1,256.3

X0.43

LEVERAGE

In €M FY 2019 FY 2018

GROUP SHARE OF EQUITY 477.6 258.4 NON-CONTROLLING INTERESTS 0.6 0.3 SHAREHOLDERS’ EQUITY 478.2 258.7 NON-CURRENT ACCRUALS 29.0 26.7 OTHER NON-CURRENT LIABILITIES 467.7 479.9 NON-CURRENT LEASE LIABILITIES/IFRS16 123.4 NON-CURRENT LIABILITIES 633.0 520.2 CURRENT ACCRUALS 2.5 4.3 OTHER CURRENT FINANCIAL LIABILITIES 74.8 71.2 CURRENT LEASE LIABILITIES/IFRS16 29.7 TRADE PAYABLES 114.6 0.4 TAX AND SOCIAL SECURITY 228.7 220.6 OTHER LIABILITIES 43.8 63.3 CURRENT LIABILITIES 494.0 477.4 TOTAL LIABILITIES 1,605.3 1,256.3

Assets Liabilities

2019 RESULTS

18TH March 2020

46 60

DIGITAL FINANCE STRATEGY

FY 2019: IFRS 16 impact

€M FY 2019 (W/O IFRS 16) IFRS 16 IMPACT FY 2019 (IFRS 16)

EBIT 121.2 6.7%

• 0.1

121.1 6.7% EBITDA 169.3 9.4% 31.6 200.9 11.2% FINANCIAL RESULT

• 14.2
• 3.3
• 17.5

CONSOLIDATED NET INCOME 76.7 4.3%

• 3.4

73.3 4.1% NET DEBT 73.3 4.1% 205.9 279.2 15.5% LEVERAGE 0.43x 1.39x COVENANT <4x <4.5x

2019 RESULTS

18TH March 2020

47 60

DIGITAL FINANCE STRATEGY

NET DEBT 31st December 2019

73 M€

NET DEBT (€M)*

0.43x

LEVERAGE *

NEU CP 13% SSD 84% RCF PDS and OTHERS 3%

DEBT PROFILE (%) AS OF 31/12/2019

RCF: €570M (not drawn as of 31/12/2019) + $50M NEU CP: €258M unused OTHER SOURCES OF FUNDING: ODIRNANE

• 175 €M
• Treated as equity under IFRS

DEBT CHARACTERISTICS:

• Average maturity of 2.9 years
• Average cost of debt: 1.7%
• Leverage 2019: 0.43x *
• Gearing 2019: 15% *

*Excluding IFRS16 impact

7.5 317.5 127.5 5 200 370 8 36 72 2020 2021 2022 2023 2024 2027 SSD UNDRAWN RCF PDS RCF UNDRAWN PDS RCF CP

2019 RESULTS

18TH March 2020

48 60

DIGITAL FINANCE STRATEGY

76 67 75 64 66 54 59 53 55 53 52 49

H1 2014 FY 2014 H1 2015 FY 2015 H1 2016 FY 2016 H1 2017 FY 2017 H1 2018 FY 2018 H1 2019 FY 2019

DSO (DAYS SALES OUTSTANDING)

2019 RESULTS

18TH March 2020

49 60

DIGITAL FINANCE STRATEGY

HEADCOUNT (END OF PERIOD)

10,822 12,394 14,913 16,619 20,624 14,916 15,180 15,515 16,051 16,619 17,144 21,019 20,904 20,624 20,901 20,930 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 Q4 19

2019 RESULTS

18TH March 2020

50 60

DIGITAL FINANCE STRATEGY

TURNOVER RATE (YTD)

17.6% 17.9% 17.6% 17.1% 17.7% 18.0% 17.6% 17.2% 18.5% 19.3% 19.2% 20.1% 21.7% 23.3% 23.1% 22.6% 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* Q4 19*

* Excluding PDS Tech

2019 RESULTS

18TH March 2020

51 60

DIGITAL FINANCE STRATEGY

UTILISATION RATE (YTD)

87.6% 88.9% 89.6% 89.7% 89.1% 90.3% 89.6% 89.7% 88.8% 90.3% 90.0% 91.5% 90.7% 91.9% 92.1% 91.0%

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 Q4 19

2019 RESULTS

17 MARCH 2020

52 60

APPENDICES

GROUP HISTORY AND STRATEGY

2019 RESULTS

18TH March 2020

53 60

DIGITAL FINANCE STRATEGY

THE MAKING OF A EUROPEAN LEADER

Creating AKKA in the automotive sector in France

1984

Reaching

€40M

revenue accelerating diversification in aerospace

1999

INITIAL PUBLIC OFFERING

aeronautics become the main segment

2005

40%

Revenue generated

• utside of

France

2012

AKKA reaches

€1BILLION

in revenue

2015

Becoming a leader in Germany

60%

revenue generated

• utside
• f France

2017

Enhanced diversification in aerospace in the US

2018 2020

Acceleration in DIGITAL with DATA

RESPONS

2019 RESULTS

18TH March 2020

54 60

DIGITAL FINANCE STRATEGY

COMBINED ACQUISITIONS & ORGANIC GROWTH

AKKA:

+20%

VS SECTOR:

+9%

CAGR 2006-2019*

* Pro forma including PDS Tech ** Pro forma including Data Respons

2006 2011 2015 2017 2018 2019

€1.0B €0.5B €1.3B €1.7B* €0.15B €2.0B**

2019 RESULTS

18TH March 2020

55 60

DIGITAL FINANCE STRATEGY

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

OUR STRENGTHS OUR OFFER OUR CLIENTS/PARTNERS

Largest European OEMs and industrial companies. Support clients in the conception of new products:

• ver entire product design cycle

and the value chain

• in

their international expansion, globalisation and digitalisation

• Boost
• ur

client’s performance through innovation, increased value added, agility & cross-sector expertise.

• Tailored

transnational turnkey projects.

• Through 21 skills centres
• Thanks to 20,000 dedicated

experts worldwide

2019 RESULTS

18TH March 2020

56 60

DIGITAL FINANCE STRATEGY

STRATEGY OF BALANCES

DELIVERING RESULTS SINCE 1999

GEOGRAPHIES CLIENTS FINANCE SEGMENTS

2019 RESULTS

18TH March 2020

57 60

DIGITAL FINANCE STRATEGY

STRONG CLIENT BASE

2019 RESULTS

18TH March 2020

58 60

DIGITAL FINANCE STRATEGY

ENERGY & MARITIME 11% TELECOM & MEDIA 17% MOBILITY 37% INDUSTRY & AUTOMATION 13% SPACE, DEFENCE & SECURITY 10% MEDTECH 6% FINANCE & PUBLIC 4% OTHER 1%

REVENUE BY INDUSTRY

across several industries

STRONG COMMERCIAL SYNERGIES WITH AKKA

2019 RESULTS

17 MARCH 2020

59 60

APPENDICES

CLEAR

2019 RESULTS

18TH March 2020

60 60

DIGITAL FINANCE STRATEGY

CLEAR

CUSTOMER- ORIENTED

C

Top 20 clients above €50M revenue*

LEADERSHIP IN INNOVATION

L

75% of our activities in the digital field

EXCELLENCE IN DELIVERY

E

Increase projects gross margin by 2%

ATTRACTIVE FOR TALENTS

A

Hire 10,000 talented digital natives

RESULTS- ORIENTED

R

Committed to best-in-class performance

*On average

2019 RESULTS

18TH March 2020

61 60

DIGITAL FINANCE STRATEGY

THE AKKADEMY DIGITAL TALENT ACQUISITION FOR OUR CLIENT

• A unique tool to hire digital talents
• Learning Program strengthened
• University Partnerships Program
• Strengthened end-customer focus
• Re-definition of recruitment allocations

ACCELERATING DIGITAL TALENT

• Creation of a Thales AKKAdemy (digital recruitment

platform)

• Advanced discussions ongoing for similar projects

with AKKA top 20 customers

• Strategic alignment with the Strategic Customers

Department

PART OF OUR SOLUTIONS PORTFOLIO

• Franchising concept in European countries:
• Launch of an AKKAdemy in Leipzig to fuel the

centre of digital expertise in Magdeburg

MORE EUROPEAN CAMPUSES

• Total digital talent
• Number of countries / locations
• Client accounts served (per industry?

SUCCESSFUL DEPLOYMENT

2019 RESULTS

18TH March 2020

62 60

DIGITAL FINANCE STRATEGY

GLOSSARY

Economic Growth: Growth at constant scope, exchange rate and number of working days. Free cash flow: Net cash flow from operating activities decreased by acquisitions of fixed assets, increased by disposal of fixed assets and reduced by rent expense within the scope of IFRS 16. Gearing: Net debt divided by Shareholders’ equity. Net Debt: Financial liabilities (without IFRS 16 lease liabilities) reduced by Cash and cash equivalents Non recurring costs: Expenses and income related to significant acquisitions, reorganizations, litigations, transformation and other cost of similar nature. EBITDA: Operating profit form ordinary operations, including IFRS 16. Operating profit from

• rdinary
• perations:

Operating profit calculated before expenses relating to stock options and free shares and non recurring costs. Operating margin from ordinary operations: Rate

• f operating profit from ordinary operations in

proportion of Revenue. Organic growth: Growth at constant scope and exchange rate. Pro forma growth: Growth based on proforma figures.