2. 2
Disclaimer
■This presentation contains forward-looking statements (as defined in the United States
Private Securities Litigation Reform Act, as amended) based upon current management
expectations.
■Numerous risks, uncertainties and other factors (including, risks relating to : government
regulation affecting our businesses; competition; our ability to manage rapid change in
technology in the industries in which we compete; litigation risks, labor issues;
unanticipated costs from disposals or restructuring) may cause actual results to differ
materially from those anticipated, projected or implied in or by the forward looking
statements.
■Many of the factors that will determine our future results are beyond our ability to control
or predict. These forward-looking statements are subject to risks and uncertainties and,
therefore, actual results may differ materially from our forward-looking statements. You
should not place undue reliance on forward looking statements which reflect our views only
as of the date of this presentation. We undertake no obligation to revise or update any
forward-looking statements, or to make any other forward looking statements, whether as a
result of new information, future events or otherwise
3. Altran : an innovating company for
its clients
1. Group’s activities
4. 4
Altran the European leader in
Innovation consulting.
We accompany our clients in their new products
and services developments, as well as in the
implementation of complex information systems.
We offer our expertise through added value
consulting, from work packages projects to « end to
end » solutions.
Our added value is in our « savoir-faire » in
innovation, the qualification and experience
accumulated during the last 25 years on major
industrial projects and through the expertise of our
highly trained consultants, graduated from the
major universities of the world.
Group profile
Give life to our
clients projects
500 Large clients in more than 26countries
Inception : 1982
2009 Revenues:
1 403,7 M€
Total staff as of Decembre 2009 : 17 149
5. 5
Altran is the international player of its
industry with around 56% of its sales
outside France.
26 countries benefiting from our
expertise in technology consulting.
Altran
A strong international
footprint
Spain
USA &
Canada
Brazil
UK
France
Benelux
Sweden & Danemark
China
Switzerland
Germany
Austria
Italy
Portugal
India
6. 6
Altran & the innovation
Altran :
technological
partner of Renault
F1
Technological partner
of the Renault F1
team, Altran
consultants are
implicated in engine
and car frame
developments in Viry–
Châtillon (France) and
Enstone (UK).
Altran : the Solar
Impulse project:
Achieve a take off and
flying day and night of a
plane only propel by solar
energy in order to make a
world tour without energy
or pollution.
Altran is working on the
plane conception (energy,
cockpit systems), project
management and the
modeling program and
flight simulators.
Altran foundation for
Innovation
« Sustain and promote
technological innovation for
ones general interest »
“Increase our in-house R&D and
reinforce our understanding our
expertise in term of sustainable
innovation »
Altran Research:
a step beyond
7. 7
Conseil en organisation et systèmes d’information
Group profil
Top 50 clients
Others
53,4%53,4%
46,6%46,6%
84,5%84,5%
International sales
France Sales
55,2%55,2%
44,8%44,8%
Other : 6,4%6,4%
9,1%9,1%
8. Altran : an innovating company for
its clients
2. Key events 2009
9. 9
33
22 R&D and consulting market heavily impacted:
• International phenomenon
• 40% drop of automotive business
• Strategy & Management consulting impacted
violently during Q1 2009
11
44
A difficult and changing market environment
Increased pressure of Clients purchasing
departments
• More selective referencing program favoring large
players
• Change in the type of engagement (T&M vs projects)
• price pressure
A brutal drop of markets in Q1 2009 after a
dynamic 2008
• mainly on Automotive and telecom equipment
• Trough in April/May
A demand for more and more complexity that is
an opportunity for Altran
• « end to end » projects
• offshore
10. 10
33
22
North region :
• the area of the group the most impacted by the world crisis
South region :
• A good resilience in 2009 (Spain, Portugal, Italy)
Arthur D.Little :
• Strong slowdown of sales due to international turmoil
with sales down 33,5% YoY (-42% in H1 2009)
11
44
France :
• heavily impacted by the difficulties in automotive,
progressive turn around in H2
• slight growth of the Average Daily Rate
Altran : Contrasted results
11. 11
33
22
Key figures
Current operating income 2009 of €31m representing
2,2% of revenues (1,2% in H1 and 3,2% in H2 2009)
after €9,4m impact of losses in Brazil
2009 revenues : €1 403,7m down 11,3%
organically (14,9% gross)
Net loss of €74,7m impacted by :
• €64,4m restructuring costs
• €38,6m goodwill write-offs
11
44 Covenants are respected with a gearing of 0,38
financial leverage of 3,83
12. Operational overview
■ Some positive aspects
• Good resilience of the Top 50 clients
• Good performance of Southern Europe
countries in a difficult environment
• Growth of some sectors (Aerospace, Energy)
• Development of our complex projects delivery
capabilities
• Group maintain its attractiveness towards
engineers
• An strong and reactive crisis management
12
13. 13
33
22
Arthur D.Little restructuring
€10m of EBIT loss in H1 and break even in H2
11
Staff adaptation measures :
• Staff decrease of 1373 people in 1 year
• Closing of the voluntary departure plan that will lead to 450
additional redundancies in H1 2010 (550 in total over the plan)
• Consultants mobility, training and R&D
Balance sheet reinforcement
Strong improvement of DSO at 88,5 days at the end of 2009
Extension of group’s financing maturity with the launch of the
CB 2015 of €132 m in Q4 2009
Key events : a strong and reactive crisis management
44
Indirect costs resizing
indirect costs are down of €68,6m between 2008 and 2009
23,1% of 2009 revenues achieved with a constant decline
during the year
14. 14
33
22
Key event: 2009 a year to prepare the future
11
44
€150m of operational cost decrease of which €68,6m are
indirect costs and could be considered as structural
Staff reduction of 10% (with the integration of the Voluntary
Departure Plan). These elements translated into an increase
of invoicing rate since the end of September 2009.
Non strategic assets continued to be sold (Fagro
Consultancy BV, PECO activities..)
Group’s financial resources have been optimized with the
launch of a CB in November 2009, resulting in an increased
of group financing maturity and additional means dedicated
to organic / external growth
15. Key events: a turnaround that started in September 2009
Gradual improvement of current EBIT (H1/H2)
15
33
22
11
3,4% 4,0%
7,1%
-15,6%
-19,2%
6,0% 5,9%
-6,7%
0,0%-0,6%
France North South RoW Arthur D.Little
H1 2009 H2 2009
Constant growth of invoicing rate :
+ 3 pts in H2 2009 (77,6% in Q2 2009 and 80,8% in Q4
2009)
+ 260 bp + 190 bp
+ 840 bp +1920 bp
- 650 bp*
* Of which €9,4m loss in Brazil
January 2010 return of engineers lower than the one
of January 2009 and no new returns in February 2010
H2 EBIT of 6,2% excl.
impact of losses in
Brazil
16. Key events: Universum 2009 ranking
Altran and consulting companies
Engineers students Experimented engineers
Company 2009 rank Change
Capgemini 39 - 7
Accenture 43 - 4
Altran 48 + 1
Logica 65 - 5
Atos Origin 72 - 11
Alten 85 + 4
Company 2009 rank Change
Accenture 67 - 6
Altran 74 + 5
Capgemini 77 - 13
Atos Origin 77 + 5
Alten 98 -5
Logica 112 + 5
Altran is the preferred R&D consulting company for
• Engineers students
• Young experimented engineers
17. Altran : an innovating company for
its clients
3. Results
18. 1818
P&L
in €m 31.12.2008 S1 2009 S2 2009 31.12.2009
Revenues 1 650,1 721,1 682,6 1 403,7
Recurring Operating Income
As % of sales
127,0
7,7%
8,9
1,2%
22,1
3,2%
31,0
2,2%
Non recurring income / (losses) (22,1) (17,5) (46,9) (64,4)
Goodwill depreciation (26,5) (12,1) (26,5) (38,6)
Operating income
As % of sales
78,4
4,8%
(20,7)
(2,9%)
(51,4)
(7,5%)
(72,1)
(5,1%)
Net cost of debt (24,8) (5,5) (8,8) (14,3)
Other financial income / (losses) 5,0 (3,1) (2,1) (5,2)
Income taxes (45,8) (1,6) 17,9 16,3
Net result of integrated companies 12,7 (30,8) (44,5) (75,3)
Minority interests (1,3) 0,6 - 0,6
Group’s net result 11,4 (30,2) (44,5) (74,7)
19. 1919
Operating expenses down 9,8% in 2009
In €m 2008 S1 2009 S2 2009 2009
TOTAL OPERATING EXPENSES
as % of turnover
1 528,0
92,6%
713,6
98,9%
663,1
97,1%
1 377,4
98,1%
Other purchases and external charges * (371,7) (155,1) (163,8) (317,9)
Subcontracting (114,5) (50,1) (55,1) (105,2)
Outside services (43,3) (21,0) (18,6) (39,6)
Rents and leases (60,0) (30,1) (27,9) (58,0)
Travel (80,8) (31,5) (31,4) (62,9)
Fees and Advertising (43,7) (13,5) (11,3) (24,8)
Supplies (13,4) (2,9) (8,5) (11,4)
Training (9,5) (0,4) (2,3) (2,7)
Other (6,6) (5,5) (7,7) (13,2)
Labour cost (1 129,3) (550,0) (489,7) (1 039,7)
Employee profit sharing
Staff benefits
(including stock options)
(2,2)
(0,5)
(0,1)
(0,5)
(0,5)
(1,4)
(0,6)
(1,9)
Taxes (12,0) (5,8) (4,5) (10,3)
Depreciation & provisions (15,0) (3,7) (5,8) (9,5)
Recurring operating profit
As % of turnover
127,0
7,7%
8,9
1,2%
22,1
3,2%
31,0
2,2%
20. 20
Target
Bring our ‘indirect costs’ weight in line
with ‘best-in-class’ ratios
Achieve a 20% ratio once growth will be
back
Indirect costs : a rigorous management
2009 results
€68,7m of savings compared to 2008
Indirect costs decrease along the year
(23,3% of sales in H1 and 22,9% in H2
2009)
Decrease of indirect costs weight despite
the sharp drop of sales
20
418,0
68,6
392,3
324,3
2007 2008 Savings 2009
Indirect costs in €m
Indirect costs in % of revenues
26,3%
23,8%
23,1%
2007 2008 H1 2009 H2 2009 2009
Revenues 1591 1 650,1 721,1 682,6 1 403,7
Gross margin 32,5% 31,5% 24,6% 26,1% 25,3%
Indirect costs
In sales %
418
26,3%
392,9
23,8%
168,2
23,3%
156,1
22,9%
324,3
23,1%
EBIT margin (%) 6,2% 7,7% 1,2% 3,2% 2,2%
21. 212121
Non recurring operating result
■The non recurring operating profit amounted to €(64,4)m mainly impacted by
restructuring costs during 2009.
In €m 2008 S1 2009 S2 2009 2009
Capital gain / loss on subsidiaries sold (3,6) (0,2) 2,1 1,9
Net proceed of subsidiaries sold (3,6) (0,2) 2,1 1,9
Capital gains on asset sales (0,1) (0,1) (0,1) (0,2)
Net Restructuring cost
(18,9) (17,3) (49,3) (66,6)
Other 0,5 0,1 0,4 0,5
Non recurring operating income /
losses
(22,1) (17,5) (46,9) (64,4)
* The Voluntary Departure Plan provision represents €33 m (around 13 months of charged salaries) and
correspond to charges covering 500 redundancies included in 2009 accounts
22. 222222
Goodwill amortization
The result of the impairment tests leads to a goodwill amortization of €38,6m on 8 companies
representing €47,9m of goodwill
On 2 companies there was a complete goodwill write-off in H1 2009 and 3 companies in H2
2009
Goodwill on Brazilian subsidiaries have been fully written off in H2 2009 representing a €9,1m
write-off.
As of December 31st 2009, the net book value of goodwill is €395,8m
23. 232323
Net interest charge
In €m 2008 H1 2009 H2 2009 2009
Income from cash & cash equivalent 3,4 2,8 1,4 4,2
CB accrued interest
Of which IFRS split accounting impact
(16,2)
(8,1)
-
-
(1,7)
(0,6)
(1,7)
(0,6)
Accrued interests on other financing operations (12,0) (8,3) (8,5) (16,8)
Gross financial cost of debt (28,2) (8,3) (10,2) (18,5)
Net interest charge (24,8) (5,5) (8,8) (14,3)
24. 242424
Taxes
Tax integration is in place for most of the group’s major geographies
Fiscal deficit to be activated 370,7
Fiscal deficit activated 222,9
Fiscal deficit non activated 147,8
Potential tax saving 43,3
2008 H1 2009 H2 2009 2009
Result before taxes and goodwill
depreciation
85,1 (17,1) (35,8) (52,9)
Theoritical taxes income (33,75%) (28,4) 5,8 12,4 18,2
Secondary taxes (7,8) (2,5) (3,1) (5,6)
Differed taxes impact (3,0) (4,7) (4,8) (9,5)
Permanent differences (6,5) (0,3) 13,3 13,0
Miscellaneous (0,1) 0,1 0,1 0,2
Tax loss/ income (45,8) (1,6) 17,9 16,3
25. Altran : an innovating company for
its clients
4. Balance sheet & cash flow
26. 2626
2008 H1 2009 H2 2009 2009
Beginning Net financial debt (314,4) (164,9) (187,8) (164,9)
Current operating income 127,0 8,9 22,1 31,0
Restructuring costs (22,1) (17,5) (46,9) (64,4)
Depreciations & amortization 12,8 9,7 10,5 20,2
Others 11,6 (1,2) (1,5) (2,7)
Cash flow 129,3 (0,1) (15,8) (15,9)
Change in NWCR (28,0) 44,9 30,6 75,3
Tax paid (19,8) (17,2) (26,7) (43,9)
Interest Paid & other financial charges (19,3) (12,3) (5,8) (18,1)
Net cash flow generated by operations 62,2 15,2 (17,8) (2,6)
Earn-outs (2,3) (0,1) (2,3) (2,4)
Capex (20,1) (6,4) (5,9) (12,3)
Others (1,5) (0,6) 7,0 6,4
Net cash flow related to investments (23,9) (7,0) (1,2) (8,3)
Net cash flow before financing transactions 38,2 8,2 (19,1) (10,9)
Capital increase & others
Of which others
126,8
(17,3)
0,1
(31,2)
-
34,0
0,1
2,8
Closing Net financial debt (164,9) (187,8) (172,9) (172,9)
Simplified cash-flow statement (in €m)
* The opening net debt is computed before accrued interest and employee’s share of profit
27. 2727
Net debt as of December 31st 2009 (in €m)
31.12.2008 30.06.2009 31.12.2009
IFRS IFRS IFRS
Convertible bond 159,4 - 99,8
Mid-term bank loan 14,5 121,0 103,9
Short term bank loan
Of which factoring
220,5
204,5
173,7
116,8
211,7
159,7
Total financial debt 394,4 294,7 415,4
Cash 229,5 106,9 242,6
Net financial debt 164,9 187,8 172,9
Employee profit sharing 9,1 7,3 7,6
Accrued interest on CBs 34,2 2,5 4,8
Net debt 208,3 197,6 185,3
Financial ratios 31.12.2008 30.06.2009 31.12.2009
Net financial debt / EBITDA x 1,14 x 2,15 x 3,83
Gearing x 0,33 x 0,39 x 0,38
The group reimbursed on
January 2nd, 2009 all
remaining 2009 CBs
outstanding
Covenants are calculated
every June 30 and
December 31
Covenants are based on
IFRS standard
Under IFRS equity
amounts to €459,4m as of
June 30th 2009
Covenants to be
respected
31.12.09
Net financial debt /
EBITDA
< 4,5
Gearing < 1,0
* EBITDA used by the banks for the calculation of their covenants is a 12-month rolling Ebitda before the cost of
employee’ share of profit and stock options or free shares
28. 28
DSO change in 2009
510,6
418,1
(82,5)
(9,9)
Clients
receivables
31.12.2008
Sales growth
impact
DSO impact Clients
receivables
31.12.2009
28
DSO
H2 2009
target
Come back to 90 days at the end of
2009
H2 2009
achievement
Reduction of NWCR of €40m in H2
2009 and H2 2009 DSO below 90
days target
90,6 days
88,5 days
DSO change in H1 2009
510,6
450,0
(80,8)
21,2
Clients
receivables
31.12.2008
Sales growth
impact
DSO impact Clients
receivables
30.06.2009
90,6 days
96,8 days
DSO change in H2 2009
450,0
418,1
(7,5)
(39,4)
Clients
receivables
30.06.2009
Sales growth
impact
DSO impact Clients
receivables
31.12.2009
96,8 days
88,5 days
29. Altran : an innovating company for
its clients
5. Geographical data
30. 30
Current operating margin change in France
(excluding holding costs)
362,5
359,5
329,4
312,8
9,2%
11,3%
3,4%
6,1%
280
290
300
310
320
330
340
350
360
370
S1 2008 S2 2008 S1 2009 S2 2009
0,00%
2,00%
4,00%
6,00%
8,00%
10,00%
12,00%
Revenues Current operating result
Holding costs are estimated at around €12,4 m in 2009 and correspond to non allocated charges
taken by the group parent company included in France’s consolidation
2009 current operating margin would have been 4,7% excluding these corporate holding costs
(3,4% in H1 2009 and 6,1% in H2 2009)
31. 3131
Geographical data
Revenues
(in €m)
Current operating result
(in €m)
Current operating margin
(in %)
2008 S1 09 S2 09 2009 2008 S1 09 S2 09 2009 2008 S1 09 S2 09 2009
France 722,0 329,4 312,8 642,2 50,9 4,2 13,6 17,9 7,1% 1,3% 4,4% 2,8%
North 426,1 184,9 177,4 362,3 35,4 7,5 10,5 18,0 8,3% 4,0% 5,9% 5,0%
South 311,2 149,3 137,9 287,3 30,3 10,6 (0,8) 9,8 9,8% 7,1% na 3,4%
Rest of the
world
50,9 20,5 18,0 38,5 (2,8) (3,2) (1,2) (4,4) na na na na
Arthur D Little 171,3 53,1 53,5 106,6 13,2 (10,2) (0,0) (10,2) 7,6% na na na
Eliminations (31,4) (16,1) (17,1) (33,2) na na na na na na na na
Total 1650,1 721,1 682,6 1403,7 127,0 8,9 22,1 31,0 7,7% 1,2% 3,2% 2,2%
■NB : Following IFRS Altran has chosen as reporting segment the geographical reporting of its
activities. As a result Arthur D.Little (excluding CCL) is now solely disclosed
32. Altran : an innovating company for
its clients
6. Strategy & action plans
33. Altran in 2010
■ Major structural strengths
• International player
(55% of revenues outside France)
• Value chain positioning
(upstream positioning, 95% of engineers,
large spectrum of intervention )
• Unique clients portfolio
(strong footprint with top 500 European
corporate)
• A good image as an employer of
engineers
• 2010 action plans
• Re-start of a targeted acquisition
policy
• Organization change
• Development of synergies with
Arthur D.Little
• Creation of worldwide verticals
• Solutions deployment
• Creations worldwide practice
solutions
• Harmonization of our operations
• Intercontrats reduction
• tend to group’s best practices
33
34. 2009 : Group’s organization
Altran before 2006
• More than 150 operational
companies independent with
a strong in-house competition
• less than 15% of revenues
under Altran brand
Altran in 2009
• 54 operational companies
representing 99% of group’s
revenues
• Vertical organization is
working on a local basis
• More than 75% of revenues
under Altran brand
3434
Step 1 : 2006- 2008
Companies mergers
Commun process
implementation
Step 2 : 2008- 2009
A client oriented
organization
Creation of verticals
35. 2010 : a new organization dedicated to offers / clients
• Worlwide deployment of 5 verticals
• Appointment of a global head per
vertical
• Improved answers to the first global
needs expressed by clients
• Deployment Group transversal
practices
• A differentiating factors with competitors
• An answer to the growing complexity of
clients needs
• Leveraging group’s expertise
Appointment of vertical global heads and practice leaders
A global organization by verticals to respond to the growing complexity of
clients demands
Geographies
Group Practices
Local solutions
Innovation management
Mechanical engineering
Embedded systems
Information systems
Corporate performance
37. 37
Example of a Practice
« Critical and / or embedded systems»
Embedded systems
F-35 Ice management
A380 Engine monitoring
MBDA missile system
Oncology Scanner
Innovation
Connectivity
Telemetric
Mobility
HMI
Navigation
Security of critical
systems
Thales Watchkeeper UAV
Air traffic control system
Nuclear control
Bombardier ERTMS
Security of critical systems
Innovation laboratoryCritical systems engineering
Tools and technology provider
38. Altran : an innovating company for
its clients
8. Perspectives
39. Perspectives
22
11
A stabilized market
- Despite the traditional seasonality in January activity is now
stabilized
- Gradual improvement of the commercial dynamism
A contrasted price environment
- The group targets a price stability in France, despite real pressures from
the clients purchasing departments and competitors behavior
39
40. Perspectives
33
22
11
Indirect cost are under control
- Level achieved in 2009 (23,1% of revenues) should be improved even
in case of growth coming back
- despite some embedded inflation of some expenses the group will
pursue its efforts to lower in absolute term indirect cost as much as
possible
2009 staff reduction will have a positive impact on margin
In 2010 the redundancies of 550 people approximately will mechanically
translates into margin improvements
The group is targeting an increase of its current operating
margin in 2010 compared to 2009
H2 2010 current operating margin improvement should
accelerate
40
47. 47
Factoring & cash centralization
Factoring facilities available
260,0
306,4 290,0 293,9
180,4
204,5
116,8
159,8
30.06.08 31.12.2008 30.06.2009 31.12.2009
Factoring facilities signed Factoring facilities drawned
225,5
17,3
31st
December 2009
Centralized cash (in €m)
Cash in subsidiaries (in €m)
Factoring
Factoring will remain a flexible source of
financing for the group
International program covering Benelux,
Germany, Spain, Portugal and Italy
Cash centralization
Efforts maintained
52. 52
Quarterly Arthur D.Little revenues change (in €m)
Business trend is improving gradually. Arthur D.Little achieve to came
back to break even in H2 2009.
42,1
46,9
38,6
41,8
27,0
25,3 24,8
27,8
T1 2008 T2 2008 T3 2008 T4 2008 T1 2009 T2 2009 T3 2009 T4 2009
53. 53
Staff change
■Total staff is down by 78 since September 30th 2009 and down by 1 373 since January 1st
2009
■ These figures include a 92 staff reduction linked to the Voluntary Departure Plan.
Excluding these redundancies staff increased of 14 people in Q4 2010
■The bulk of redundancies link to the PPDV (more than 360 people) will leave the group
during H1 2010
17 650
17 997
18 405 18 522
17 149
17 227
18 030
17 548
17 234 17 502
1498715018
16022
15619
16146
15694
1526315289
15109
14780
Sept 07 Dec 07 March 08 June 08 Sept 08 Dec 08 March 09 June 09 Sept 09 Dec 09
Total staff of which consultants
- 78
- 31
