Sopra Steria fights against climate change and global warming – 04/07/2022 at 08:45

(AOF) – Sopra Steria strengthens its commitment to the fight against climate change by announcing the inclusion of an extra-financial indicator structured by Crédit Agricole CIB and LCL in the refinancing terms of its 1.1 billion euros syndicated credit line.

Oversubscribed and supported by all of Sopra Steria’s major banking partners, this operation provides for an annual indexation of borrowing costs on an extra-financial performance indicator (KPI) that is at the heart of its Corporate Responsibility strategy: reducing the emissions.

AOF – MORE INFORMATION

Most important points:

– One of the 5 European leaders in digital transformation born from the 2014 merger of Sopra and Steria;

– Company organized into 4 companies generating €4.3 billion in revenue: systems consulting and integration (60%), solutions publishing (15%), business process services (15%) and infrastructure and cloud (10%).

– European presence, in France (48% of sales), in the United Kingdom (18%), the other Europe division with strong positions in Germany (32%) and the rest of the world (2%);

– Business model: in Europe to be the strategic partner of major governments, financial and industrial operators and strategic companies by supporting them in their digital transformation and preserving their digital independence;

– Shareholders’ agreement between the founding families Odin and Pasquier and the managers, ie 22.3% of the capital and 33.6% of the voting rights, before the employees (6.3% and 8.5%); Pierre Pasquier is chairman of the 14-member board of directors and Vincent Paris managing director;

– Healthy balance sheet with debt reduced to €423 million, compared to €1.6 billion in capital at the end of June 2021.

Challenges

– Strategy based on a strong positioning in Europe, on solutions development (target of 20% of turnover in publishing and integration of solutions), on consulting (target of 15% of turnover), integration of medium term and pursuing medium-term annual sales growth of between 4% and 6%, an operating margin of 10% and free cash flow between 5% and 7% of sales;

– Innovation strategy: monitoring of technologies and their use ensured by the Digital Champions, innovation missions given to project teams, hackathons open to customers and partners, spaces for demonstration, ideation, co-design / targeted partnerships (startups, universities, research labs, major publishers such as Axway and GAFAM / joining the capital of young shoots / establishing 2 development platforms, one for the cloud, the other for the blockchain, artificial intelligence and machine learning;

– Environmental strategy, validated by Science Based Targets and rated with A: target of zero net GHG emissions by 2028 / 5 major projects: strengthening the environmental management system (EMS), optimization of resource consumption, increase of renewable energy in electricity consumption and waste management / supply of digital systems for achieving sustainable goals;

– One of the best positioned players in the promising segments of “cloud computing” (cloud computing) and big data (management of data volumes), as well as in co-transformation projects such as Ecomouv or Transactif and in cybersecurity;

– Integration of acquisitions: EEGS Design and EVA Group after Sodifrance (making the group the French leader in digital services for insurance and social protection), Cxpartners, SAB and Fidor.

Challenges

– Increase recurring revenue share through partnerships and close relationships with strategic customers such as utilities;

– 2021 targets, increased, of a minimum turnover increase of 6% and an operating margin between 7.7 and 8% and free self-financing of €150 to €200 million.

Software publishers: multiple takeovers in healthcare

According to market research firm IDC, the healthcare industry is expected to spend more than $15 billion on software and cloud servers by 2023. After Microsoft acquires Nuance, which combines speech recognition and telemedicine, for $16 billion, it is Oracle’s turn to make the largest acquisition in its history by Cerner, the number two in the distribution of medical software in the United States. , to take over. The amount of this operation, carried out in cash, is 28.3 billion dollars. Cerner, which posted revenues of $5.5 billion in 2021, could allow Oracle to strengthen its positions in the cloud as the US group struggles to grow as its main rivals such as Google, Microsoft or Amazon Web services.

The talent war has been exacerbated by Facebook’s announcement, which plans to recruit 10,000 hires in Europe within five years. The lack of human resources is not limited to France or Europe: it is global. For example, by 2026, 1.2 million computer engineers are expected to be missing in the United States. According to Numeum, the federation of the digital sector, France has a shortage of about 10,000 computer engineers out of a total of 600,000 people employed by software publishers and digital service companies (SSII). If the phenomenon is not new, it intensifies. It is enhanced both by the hiring of certain companies looking for developers to internalize their essential digital projects, and by the strong ambitions of certain start-ups.

Leave a Comment