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PARIS, December 12, 2024--(BUSINESS WIRE)--Regulatory News:

Sopra Steria (Paris:SOP), a major tech player in Europe, is holding its Capital Markets Day this morning.

The Capital Markets Day will begin at 9:30 a.m. CET. The live webcast will be available in the ‘Investors’ section of Sopra Steria’s website (https://www.soprasteria.com/investors) and via the links below. A recording of the meeting will be available today from 12:30 p.m. CET in the same section of Sopra Steria’s website.
- Access the French-language webcast here
- Access the English-language webcast here

Our plan

• Affirm the Group’s position as a European leader in digital services

• Position the Group as a trusted, credible European alternative to global operators

• Develop a firm foothold in the Group’s four strategic markets (Public Sector, Financial Services, Defence & Security, Aeronautics & Space), where issues relating to sovereignty and responsible digital technology are becoming increasingly critical in Europe

• Focus on high value-added offerings

• Reinforce our industrial and sustainable approach to implementing technology

• Influence how digital technology is used

Goals for 2028

• Exceed €7 billion in revenue, driven by organic growth of between 2% and 5% per year post-2025 and an external growth policy generating around €1 billion in acquired revenue between 2024 and 2028, with targeted total average growth of around 6% per year

• Expand and rebalance the Group’s European presence, building on five major geographic areas with around or above €1 billion in revenue (France, United Kingdom, Benelux, Scandinavia and Germany)

• Develop the consulting business to reach at least a 12% share of Group revenue

• Ramp up in new next-generation technologies to reach at least a 60% share of Group revenue

Financial targets for 2028

• Improved operating margin on business activity of between 10% and 11%

• Higher return on capital employed¹ before tax, at around 20%

• Free cash flow of between 5% and 7% of revenue for the period

• Leverage ratio² not to exceed 1.5x over the period

Upcoming financial releases

Thursday, 27 February 2025 (8:30 a.m.): Meeting to report 2024 annual results
Wednesday, 30 April 2025 (8:30 a.m.): Meeting to report Q1 2025 revenue
Wednesday, 21 May 2025 (2:30 p.m.): General Meeting of Shareholders
Friday, 25 July 2025 (8:30 a.m.): Meeting to report 2025 half-year results
Wednesday, 29 October 2025 (8:30 a.m.): Meeting to report Q3 2025 revenue

Glossary

- Restated revenue: Revenue for the prior year, expressed on the basis of the scope and exchange rates for the current year.
- Organic revenue growth: Increase in revenue between the period under review and restated revenue for the same period in the prior financial year.
- EBITDA: This measure, as defined in the Universal Registration Document, is equal to consolidated operating profit on business activity after adding back depreciation, amortisation and provisions included in operating profit on business activity.
- Operating profit on business activity: This measure, as defined in the Universal Registration Document, is equal to profit from recurring operations adjusted to exclude the share-based payment expense for stock options and free shares and charges to amortisation of allocated intangible assets.
- Profit from recurring operations: This measure is equal to operating profit before other operating income and expenses, which includes any particularly significant items of operating income and expense that are unusual, abnormal, infrequent or not foreseeable, presented separately in order to give a clearer picture of performance based on ordinary activities.
- Basic recurring earnings per share: This measure is equal to basic earnings per share before other operating income and expenses net of tax.
- Free cash flow: Free cash flow is defined as net cash from operations; less investments (net of disposals) in property, plant and equipment, and intangible assets; less lease payments; less net interest paid; and less additional contributions to address any deficits in defined-benefit pension plans.
- Downtime: Number of days between two contracts (excluding training, sick leave, other leave and pre-sales) divided by the total number of business days.