r&d outsourcing conference kepler cm - … conferenc… · organisation and scheduling of human...

R&D OUTSOURCING CONFERENCE KEPLER CM

Dominique Louis

CEO and Founder

Paris — 6 February 2012

DISCLAIMER

Some of the statements contained in this presentation constitute forward-looking statements. Thesestatements relate to future events or our future financial performance and involve known andunknown risks, uncertainties and other factors that may cause our or our industry's actual results,levels of activity, performance or achievements to be materially different from any future results,levels of activities, performance, or achievements expressed or implied by such forward-lookingstatements.

Actual events or results may differ materially. Although we believe that the expectations reflected inthe forward-looking statements are reasonable, we cannot guarantee future results, levels ofactivity, performance or achievements.

Factors that could cause actual results to differ materially from those estimated by the forward-looking statements contained in this presentation include, but are not limited to: trends in Assystemmarkets; increased competition in our markets; profitability of our expansion strategy; challenges toor loss of our intellectual property rights; our ability to establish and maintain strategic relationshipsin our major businesses; our ability to develop and take advantage of new software and services;and the effect of future acquisitions and investments on the Assystem share price.

Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of such forward-looking statements. The forward-looking statements contained in this presentation apply only to this presentation.

This document is a free translation into English of the original slideshow written in French version. It is not a binding document. In the event of a conflict in interpretation, reference should be made to the French version, which is the authentic text.

2 R&D Outsourcing Conference - Kepler CM – Paris — 6 February 20122

BRISK ACTIVITY IN 2011 CONFIRMS SOUND CHOICESBY ASSYSTEM

2011 consolidated revenue: €760.6m

� Robust reported growth of 19.5%, for organic growth of 13.2% thatexceeded guidance

− All business units reported growth

− Operations outside France enjoyed vigorous growth of 30.7%, accounting for 34% of consolidated revenue

� Successful integration of Berner & Mattner and MPH’s French operations

− MPH Dubai acquisition finalized on 1 February 2012

� Operating margin target confirmed at between 7.5 and 8.0% for 2011

� Continued improvement in cash flow generation

R&D Outsourcing Conference - Kepler CM – Paris — 6 February 2012

ASSYSTEM IN 2011

33

R&D Outsourcing Conference - Kepler CM - Paris — 6 February 2012

ASSYSTEM TODAY:A NEW DEAL

ASSYSTEM BEGINS 2012 ON A NEW FOOTING

5

ASSYSTEM TODAY: A NEW DEAL


2011 pro forma revenue: €850m

40% of revenue generated outside France

More than 10,000 employees

More than €300m of available financing

5

WELL-BALANCED PRESENCE IN GROWTH SECTORSDIVERSIFICATION INTO ENERGY


2011 pro forma revenue by business unit

enters the Top 10in 2012

Aerospace32%

Automotive & Transport

19%

Energy36%

Defence3%

Others10%


KL1

GROWTH OUTSIDE FRANCE BREAKTHROUGH IN THE MIDDLE EAST


2011 pro forma revenue by region

7

France

62%

Others

6%

UK

11%

Germany

13%

Middle-East

Africa

8%


A STRATEGY FOR GROWTH

The 2011 pro forma figures include the full-year impact of the B&M and MPH acquisitions.

ASSYSTEM STRENGTHENS ITS DUAL ENGINEERING FOCUS

9

AEROSPACE ENGINEERINGPLANT ENGINEERING & OPERATIONS

TECHNOLOGY & PRODUCT

ENGINEERING

DESIGN BUREAU,AEROSTRUCTURE,

ENGINES

ELECTRONIC & SOFTWARE

DEVELOPMENT

EPCMASSISTANCE TO THE OWNER

PROJECT MANAGEMENTFACILITIES MANAGEMENT &

MAINTENANCE

Outsourced IndustrialR&D

55% of revenue

Complex Infrastructure Engineering

45% of revenue

MODELLING,TESTIING & VALIDATION


GROWTH STRATEGY

10

AEROSPACE ENGINEERINGPLANT ENGINEERING & OPERATIONS


ENGINEERING


ENGINES


DEVELOPMENT

EPCMASSISTANCE TO THE OWNER

PROJECT MANAGEMENTFACILITIES MANAGEMENT &

MAINTENANCE

Outsourced R&D

60% of revenue

Complex engineering infrastructure

45% of revenue

MODELLING,TESTING & VALIDATION


GROWTH STRATEGY

COMPLEX INFRASTRUCTURE ENGINEERINGIN STRINGENT ENVIRONMENTS

An Anglo-American engineering business model� 80% of investments worldwide concern energy and infrastructure

� Engineering is about project designing, sizing, managing and commissioning

� Assystem is a niche player in these markets, specialized in prototypes and safety

� A market where expertise, not geographic proximity, counts

� Assystem aspires to growth in these high-potential markets and has the requisite resources


Site Visit on 31 January 2012Site Visit on 31 January 2012

GROWTH STRATEGY

ASSYSTEM, THE ONLY INDEPENDENT ENGINEER ON THE FRENCH NUCLEAR POWER INDUSTRY’S STRATEGY COMMITTEE


Role of the French Nuclear Industry Strategy Committee• Help the French nuclear industry improve plant operating efficiency in France

• Meet demand from countries that want to build new nuclear power plants

• Chaired by the French Energy Minister, with EDF’s Chairman and CEO asthe Deputy Chair

• Members: nuclear industry companies (EDF, AREVA, etc.), engineeringcompanies, service providers, equipment manufacturers, fuel companies,nuclear power principals/operators, employee unions, etc.

• 5 working groups: industry performance, competencies and training, export,R&D, communications

12

Assystem, co-chairman with EDF of the export working group

GROWTH STRATEGY

NEW WIN IN THE UNITED KINGDOM

Conférence R&D Outsourcing - Kepler CM - Paris, 6 février 2012

A15-year contract with the UK’s largest nuclear facility

• Measuring 6 sq kilometres, the Sellafield site is home to over one thousand nuclear facilities including the Magnox and Thorp reprocessing plants, the Sellafield MOX plant and a range of nuclear waste treatment facilities

• Providing nuclear engineering and management services to the production operations & infrastructure areas as part of the Sellafield Design Services Alliance (DSA)

• With our AXIOM partners: Assystem, AMEC, Jacobs et Mott MacDonald

plant and a range of nuclear waste treatment facilities.

13

GROWTH STRATEGY

FAST TAKE-OFF AND FURTHER SUCCESSIN THE NUCLEAR SECTOR WITH N.TRIPLE.A

• Abu Dhabi: lender technical advisor for the UAE’s civil nuclear power programme

• Saudi Arabia: selected in KACARE’s call for tenders as advisor on organisation and scheduling of human resources needed to support nuclear and renewable energy programmes

• South Africa: selected in the call for tenders to provide ESKOM with licensing support; supplier’s qualification in progress for ESKOM (all areas)

• Brazil: bidding for lender technical advisor’s role in the ANGRA 3 plant completion


GROWTH STRATEGY


“The spirit of collaboration is important across the whole project.

So I am also proud that EDF Energy has been the linchpinthat has brought together so many successful companies in the spirit of collaboration.

This is further illustrated by the many French and British companies that are forming alliances as part of the revival of nuclear, embodied by our project. (…)

Atkins and Assystem have come together to provide consultancy and engineering services for the development of nuclear power capability.”

Vincent de Rivaz — 13 December 2011

CEO, EDF Energy

: A RECOGNIZED ALLIANCE

15

2 EPRs plannedfor the UK:

design underway, construction to begin

in summer 2012

GROWTH STRATEGY

Expansion in Oil & Gas:• Entered the segment with the acquisition of MPH

Sources of growth in alternative energy:

- Offshore wind power, with Atkins

- Acquisitions in other areas

OIL & GAS: POTENTIAL FOR FAST GROWTH


UPSTREAM

DOWNSTREAM

Total$1 billion of R&D

outsourced per year

$600 billion in E&PInvestments planned in 2012,

o/w $20 billion by Total

16

GROWTH STRATEGY

2012 : €600 billion in E&P investments planned in 2012

o/w €20 billion by TOTAL

TOTAL per year€ 1 billion of R&D

outsourced

17

PLANT ENGINEERING & OPERATIONS

EPCMASSISTANCE TO OWNERSPROJECT MANAGEMENT

FACILITIES MANAGEMENT & MAINTENANCE

Complex infrastructure engineering

40% of revenue


AEROSPACE ENGINEERING


ENGINEERING


ENGINES


DEVELOPMENT

Outsourced IndustrialR&D

55% of revenue

MODELLING,TESTIING & VALIDATION

GROWTH STRATEGY

Conférence R&D Outsourcing - Kepler CM - Paris, 6 février 201218

OUTSOURCED INDUSTRIAL R&D

A business model under pressure

• Visibility varies widely by sector and country

• The main general engineering companies are French

• Supply still strongly based on geographic proximity

• Pressure to offshore R&D based on the hourly rate for engineers

• Smaller panels

• Trend toward flat-rate service contracts

GROWTH STRATEGY

SPECIALIZATION IS THE KEY TO SUCCESSIN OUTSOURCED INDUSTRIAL R&D


Strong sector-specific expertise needed to stand out

• High value-added solutions• Combat the inevitable erosion of margins for the general engineering

business model

Our target sectors

− Aerospace− Defence (high potential)− Transport (automotive for certain countries and rail worldwide)

Our target countries

• France, UK, Germany

Consolidation strategy in Europe• In Product Life Management• In our target countries• In our target sectors

19

GROWTH STRATEGY

A STRATEGY DRIVING LONG-TERM GROWTH

20

Outsourced industrial

R&D

Complex infrastructure engineering


�� Respond to the challenges of ecomobility, energy efficiency and operating safety

�� Offer solutions that leverage the strategic fit between infrastructure engineering and embedded product and system engineering

GROWTH STRATEGY

APPENDIXES

R&D Outsourcing Conference - Kepler CM - Paris, — 6 February 2012

SHAREHOLDING STRUCTUREat 31 December 2011

23

CDC Group**

16.5% 15.00%

Free float

44.4%

42.0%

D. Louis/HDL Group/

H2DA*/CEFID/EEC

27.1%

35.1%

Treasury stock

7.1% 0%

Members of the

Supervisory and

Management

Boards

3.7%

5.8%

Employee savings

sheme

1.2% 2.1%

% shares% actual voting rights***

* H2DA owned by HDL (60.5%) and certain Management Board members; CEFID owned by HDL, Dominique Louis and Michel Combes** Of which 14.1% owned by the FSI and 2.6% by CDC EVM

*** These voting rights differ from the potential voting rights used to calculate whether thresholds have been exceeded


APPENDIXES

NYSE Euronext Paris Compartment BFR0000074148

Eligible for themid-cap deferred

settlement system

Indexes:

CAC All Tradable (ex

SBF250)– CACT

CAC SMALL/CACS

CAC Mid & Small/CACMS

CAC All-Share/PAX

23

Capitalisation :270 M€ on 31st Jan 12

Number of shares:20 157 082

Capitalisation :270 M€ on 31st Jan 12

Number of shares:20 157 082

BERNER & MATTNER ACQUISITION AND INTEGRATION

Stronger presence in embedded systems• 2010 revenue of €30 million – Consolidated since 1 January 2011

• Growth sector, especially in the automotive, transport, aerospace and defence industries

Consolidated Assystem presence in Germany• Customer portfolio synergies in Europe

• Revenue of €100 million, 1,100 employees in Germany in total

Successful integration• 9-month revenue up sharply, exceeding guidance

• Promising trends in transport

24

Impressive capacity and track record in

developing and testing software

for embedded systems

APPENDIXES


MPH ACQUISITION AND INTEGRATION

Growth in Oil and Gas• Expanded positions in energy, a fast-growing sector

• Revenue of €90 million in 2010, of which ¾ outside France

• Acquisition of a portfolio of large international accounts in emerging economies

Strengthened capacity outside France• An organization based in Dubai that focuses mainly on Africa and the

Middle East

Seamless integration• French operations consolidated since 1 August 2011

• Initial operational and marketing synergies

• Integration of the Africa/Middle East organization on 1 February 2012

25

Complex infrastructure ownership and management

APPENDIXES


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