Sopra Steria - 2018 Registration document
INTEGRATED PRESENTATION: SOPRA STERIA Message from the Chairman
MESSAGE FROM THE CHAIRMAN
“The world we live in is changing in so many different ways, and our clients are embarking on far-reaching transformations. Our business is also experiencing sweeping changes. Sopra Steria Group is adapting and adjusting to its environment to maintain and strengthen its enduring partnerships with its major clients, just as it has always done over the past 50 years. At Sopra Steria – which recorded revenue of over €4 billion and now has close to 45,000 employees – strategic decisions always put our long-term vision and respect for the commitments made to our clients first. We constantly ensure that we are making the right level of investments to secure our Group’s long-term future and growth. In the same vein, we made a decision many years ago to play an active role in the major workforce-related, environmental and social changes taking place, and to make a positive contribution to the challenges they represent. And Sopra Steria’s policy of sustainable growth has gained recognition precisely because of this approach. In January 2019, for the second year in a row, CDP ranked the Group’s environmental performance in the A List – the highest level – and the Group’s overall corporate responsibility performance was again awarded EcoVadis’ Gold medal with a score at the Advanced level.
“Sopra Steria’s policy of sustainable growth has gained recognition precisely because of this approach. In January 2019, for the second year in a row, CDP ranked the Group’s environmental performance in the A List – the highest level.”
Our strategy as an independent group rests on two key pillars: adding more value for our major clients in their own specific areas of business, and harnessing the strengths of our software business to set ourselves apart from our competitors, especially in the financial services sector, where we can leverage synergies with our services businesses. 2018 was a year of major progress, with enhancements to Sopra Steria’s business model, investments in innovation and several key acquisitions. Our performance was held back by delivery issues. They indicate that the transformation initiatives launched within the Group need to accelerate and require a more robust internal governance framework. The necessary decisions have been taken and are being implemented. This will help the Group pursue its medium- term strategy.
The most significant progress achieved in 2018 includes the expansion in the Consulting business to 10% of the Group’s revenue from 7.5% in the previous year. Promising first results were also recorded as a result of the far-reaching transformation programme launched in the United Kingdom. Adjustments were made to human resources, and trends in revenue and operating profitability picked up in the second half. Lastly, a number of Sopra Banking Software’s major transformation projects were successfully completed, with the Platform product going live for European clients, Amplitude Up for clients in English-speaking Africa, and Cassiopae in North America. The acquisition of Apak also established an unrivalled global position in the asset finance software market. Going forward in 2019, we are optimistic and determined, mindful of what we need to do to reach our objectives. In a market driven by digital transformation, we are confident in our ability to steadily and continually raise our performance. Over the medium term, we are targeting annual organic revenue growth of between 4% and 6%, an operating margin on business activity of around 10%, and free cash flow of between 5% and 7% of revenue.”
”Going forward in 2019, we are optimistic and determined, mindful of what we need to do to reach our objectives.”
PIERRE PASQUIER Chairman of Sopra Steria Group
SOPRA STERIA REGISTRATION DOCUMENT 2018
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