Full Year 2020 Sopra Steria Group SA Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Nicolas David - ODDO BHF Corporate & Markets, Research Division - Analyst : Congratulations for these good results in a tough environment, a complicated environment. I have 3 questions for. The first one on France. I'd like to understand the underlying dynamics in France. Can you tell us more about the Q4 growth that you would have expected? Setting aside the cyberattack, is there an improvement versus Q3? And also we had holidays -- number of days of holidays taken minus 10, I think -- minus 10 in Q3. Will you have an improvement in Q1 2021? And other solutions -- a question on other solutions. Can you tell us more about in Q4, a project that were postponed, is it one big project or several smaller projects? Can we expect some type of catch-up during Q1 of 2021? Or should we wait for the full 2021 year to be over? And finally, can you tell us more about your M&A strategy? Are you more offensive, which was the case before the crisis, looking for more important deals? Or are you targeting acquisitions in the way you have done more recently? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 26, 2021 / 8:00AM, SOPR.PA - Full Year 2020 Sopra Steria Group SA Earnings Call

Question: Gregory K. Ramirez - Bryan Garnier & Co Ltd, Research Division - Analyst : 2 questions, the first is linked to 2021. So with regards to revenues, so 3% to 4% growth. Can we have a little bit more information on what could grow in -- grow quickly? Are there any areas where there's negative growth? I'm thinking about France. Perhaps is there going to be a strong recovery here or in the U.K. with a lesser impact, with the power of NHS and SSCL? And then with regards to -- the second question is on profitability. Once again, I understand that we could have a strong recovery in margin in France. With Sopra Banking Software, it's not that obvious. I'm not sure about the margin rates here. And then obviously, a recovery in other solutions. What could mean -- how could we balance out, obviously, the savings, which are lasting savings within -- so 0.5% improvement in 2021 margin, so how can we balance out this with the savings that were made in 2020, which we won't have again? Obviously, there might be -- travel might restart? And then when I'm talking about lasting savings and Savings Limited linked to premises, offices or perhaps some of the ongoing remote working. Obviously, this is not exclusive. And then also travel which will be limited in the long term, given this new flexible organization.

Question: Gregory K. Ramirez - Bryan Garnier & Co Ltd, Research Division - Analyst : And in terms of the work and in terms of homeworking, where do you stand? What is your target for the year? And midterm, what is the percentage or the ratio of homeworking compared with those working in the offices in-person?

Question: Nicolas David - ODDO BHF Corporate & Markets, Research Division - Analyst : Yes, I have 2 questions. First, you've given us information for the beginning of 2021. Could we expect an improvement in your organic growth for Q1 2021 versus Q4 in the light of your cyber attack? Because it seems that the missing information -- given your annual guidance, Q1 is not going to be as bad as Q4, but then there's catch up on licenses a little from the [bad] sectors. So could you tell us more about [Q4]? And then what about your free cash flow guidance? And you've said EUR 50 million, these exceptional payments in 2020. But in your 2021, your free cash flow is EUR 200 million, that's your guidance. But what about the insurance payment? I don't know what you expect between EUR 20 million and EUR 30 million. So the guidance is not very offensive. Are there other items listing? Your tax level is going to go down drastically, I think. So your conversion rate with EBIT is going to improve? Are there other items in addition to these EUR 50 million?

Question: Nicolas David - ODDO BHF Corporate & Markets, Research Division - Analyst : And what about the CapEx increase? It's going to be exceptional, a one-off in 2021? Or do you have a plan that goes beyond 2021?