The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: George Webb - Morgan Stanley - Analyst
: Hi, good morning and thank you for the presentations. George Webb from Morgan Stanley, I've got three or four to kick off with, please. Firstly,
maybe one to you Michel, Octave, on the, I guess on the big picture on Sovereignty, and we saw the EU and US come to a new data privacy framework
last year. To what extent in your eyes does that impact the ability of private companies to now a buys by GDPR, whilst using the US hyperscalers.
Secondly, I guess shifting over more to the CapEx side of things we discussed on the slides and growth CapEx declining from FY26. The time lag
from cost to revenue on some of that CapEx being anywhere from one month to 36 months, maybe more skewed to 6 to 12. To what extent does
that decline in growth CapEx in FY26 impact how you think about growth from FY27 onwards.
And a little bit tied to that. You've talked about that shift to higher-end servers being one of the reasons why you can drive down that intensity. I
guess why was that not so much a focus previously? Or what's the trade-off you're making as a business when you decide to focus more CapEx
onto those higher-end servers?
And then just lastly on brand awareness, can you put any numbers around what that campaign will cost and maybe some of the countries that we
focused on, Thank you.
Question: Gary Balter - Societe Generale SA - Analyst
: Thank you. Good morning, everyone, and I hope you can hear me well.
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JANUARY 17, 2024 / 10:00AM, OVH.PA - Ovh Groupe SA Investor Day
Question: Gary Balter - Societe Generale SA - Analyst
: I've got the only three questions if I may. The first one is on your EBITDA margin. What makes your previous target, so 42% that where -- that was
displayed at the 2021 IPO, no longer achievable. That's my first question and to follow up on that, I was just surprised to see that the energy cost
in percentage of sales by 2026 should be similar to today. So let's say high single digit. Does it mean that the price strategy that was designed last
year was not enough to offset the actual energy cost increase? That's my first question.
My second question is related to CapEx and this especially your particularly the administration and production system CapEx close to EUR50 million
per year. And I was wondering if this number would reduce in the coming year? Is it taken in your assumption of growth CapEx and for 2026?
And my last question, it's about the utilization rate of your data center. So you said 64% today, a decrease compared to previous year. And I was
just wondering what is the target for 2026 and how these targets compare to historical level, i.e., when you had 42% EBITDA margin in fiscal year
2020 was it is generate rates of data center much higher than, I don't know, 60% or 70%. Thank you very much.
Question: Gary Balter - Societe Generale SA - Analyst
: Yeah, in the (technical difficulty) we just the breakdown of CapEx -- type of CapEx and with that you got line dedicated to administration and
production system like the SAP deployment or HR systems, which seems to be a little bit costly, EUR50 million per year. And I was wondering if you
assume in your 2026 target an increase of this number, and it this EUR50 million per year content in the gross CapEx line?
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Question: Gary Balter - Societe Generale SA - Analyst
: And the last one was on the Utilization rate.
Question: Gary Balter - Societe Generale SA - Analyst
: Okay. As brokerages, the (technical difficulty) you did not talk a lot about your strategy around data from the study, as you used to do in the past.
Does it mean that this strategy did not bring the expected success?
Question: Gary Balter - Societe Generale SA - Analyst
: Very clear. Thank you.
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