Altran Capital

Markets Day
The High Road, Altran 2022
June 2018

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 THE HIGH ROAD, ALTRAN 2022 – AGENDA

Our Industry Our Ambition

1. Shift happened 2. A new league player

Our Focus Our Commitment

3. Disciplined & phased execution 4. Superior & sustainable value creation

2
1.
Our Industry
Shift happened

COMPELLING MARKET OPPORTUNITY

FAST EVOLVING COMPETITIVE LANDSCAPE

NEW TRENDS IN CLIENT BEHAVIOR

 1. OUR INDUSTRY Compelling market opportunity Fast evolving competitive landscape New trends in client behavior 2. OUR AMBITION 3. OUR FOCUS 4. OUR COMMITMENT

ER&D SERVICES MARKET TO GROW C. +9% P.A. OVER 2017-22

ENGINEERING AND R&D (ER&D) SERVICES MARKET WILL GROW BY €85B BY 2022 4 KEY TRENDS FUELING MARKET GROWTH

GROWTH P.A.
Avalanche of technology
OVER 2017-22 1 disruptions
Of which:
c.+9% •
•
Europe +4-6% p.a.
Americas +8-10% p.a.
• Asia/RoW +9-11% p.a.
€240bn Growth in Hi-tech industries,
2 US and Asia
Externalization rate /
+40-45 Outsourcing acceleration

Talents scarcity and supply/

Underlying growth
3 demand geographic mismatch
+40-45
€155bn (global R&D spend)

Clients’ deliberate and contrasted

4 approach to ER&D sourcing
2017 2022

Sources: OECD, IRI, IMF, International Management Consultants, Altran

4
1.
Our Industry
Shift happened

COMPELLING MARKET OPPORTUNITY

FAST EVOLVING COMPETITIVE LANDSCAPE

NEW TRENDS IN CLIENT BEHAVIOR

 1. OUR INDUSTRY Compelling market opportunity Fast evolving competitive landscape New trends in client behavior 2. OUR AMBITION 3. OUR FOCUS 4. OUR COMMITMENT

TWO DISTINCT GROUPS OF PLAYERS, MASSIVELY

CALENDAR YEAR

2012 DOMINATED BY EUROPEANS

EBIT (%)
Players in the engineering field
28%
(HfS Research, Zinnov)
TCS

23%
Aricent
Wipro

18%
HCL

EPAM
GlobalLogic
13%

Bertrandt Alten
EDAG Altran IAV
8%
AKKA
Assystem
3%
35 45 55 65 75 85 95 105 140
115

Revenue/FTE (USD k – reflecting percentage of offshore)

Sources: financial reports, estimates for GlobalLogic and IAV European multi-industry European mono-industry / mono-country

6 US hybrid India pure play

 1. OUR INDUSTRY Compelling market opportunity Fast evolving competitive landscape New trends in client behavior 2. OUR AMBITION 3. OUR FOCUS 4. OUR COMMITMENT

OVER 5 YEARS, VERY CONTRASTED DYNAMICS HAVE

CALENDAR YEAR

2017 REBALANCED THE COMPETITIVE LANDSCAPE

EBIT (%)

28%

TCS
23%

GlobalLogic HCL Aricent

18%
Wipro
EPAM Luxoft

13%

Altran
Alten
8%
Assystem AKKA
Bertrandt
EDAG IAV
3%
35 45 55 65 75 85 95 105 140
115

Revenue/FTE (USD k – reflecting percentage of offshore)

Source: financial reports, estimates for GlobalLogic and IAV European multi-industry European mono-industry / mono-country

7 US hybrid India pure play

 1. OUR INDUSTRY Compelling market opportunity Fast evolving competitive landscape New trends in client behavior 2. OUR AMBITION 3. OUR FOCUS 4. OUR COMMITMENT

OVER 5 YEARS, VERY CONTRASTED DYNAMICS HAVE

CALENDAR YEAR

2017 REBALANCED THE COMPETITIVE LANDSCAPE

EBIT (%)

28%

23% Offshore players average

+16% Rev. CAGR 2012-17
19%
Altran
18%
+ Aricent

13%
European players average
+6% Rev. CAGR 2012-17
8% 7%

USD 57K USD 90K

3%
35 45 55 65 75 85 95 105 140
115

Revenue/FTE (USD k – reflecting percentage of offshore)

Sources: financial reports, estimates for GlobalLogic and IAV
Note: average bubble for European players includes: Alten, AKKA, Assystem, Bertrandt, EDAG, IAV, and for Offshore players: HCL, Wipro, TCS, EPAM, Luxoft, GlobalLogic

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 1. OUR INDUSTRY Compelling market opportunity Fast evolving competitive landscape New trends in client behavior 2. OUR AMBITION 3. OUR FOCUS 4. OUR COMMITMENT

ARICENT ACQUISITION: THE PERFECT FIT

Pivotal
Pivotal
US
USleader
leader
industries
industries

Unique
Uniqueglobal
global Successful
Successful
delivery
deliverymodel
model IPIPmodel
model

Iconic
Iconicdesign
design Seasoned
Seasonedsenior
senior
brand
brand leadership
leadership team
team

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1.
Our Industry
Shift happened

COMPELLING MARKET OPPORTUNITY

FAST EVOLVING COMPETITIVE LANDSCAPE

NEW TRENDS IN CLIENT BEHAVIOR

 1. OUR INDUSTRY Compelling market opportunity Fast evolving competitive landscape New trends in client behavior 2. OUR AMBITION 3. OUR FOCUS 4. OUR COMMITMENT

CLIENTS ARE INCREASINGLY APPLYING A DELIBERATE AND

RATIONAL APPROACH TO THEIR R&D

CORE CONTEXT
Success increases competitive differentiation All other activities

MISSION
CRITICAL

Failure is
Deploy Manage & optimize
material at scale key processes
to current
performance

Flow of
innovation
SUPPORTING

All other Innovate Extract, outsource

activities
fast & redeploy

Sources: Geoffrey Moore, Altran

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 1. OUR INDUSTRY Compelling market opportunity Fast evolving competitive landscape New trends in client behavior 2. OUR AMBITION 3. OUR FOCUS 4. OUR COMMITMENT

CLIENTS ARE FORCING A SHIFT IN THE COMPETITIVE

LANDSCAPE

CORE CONTEXT
Success increases competitive differentiation All other activities

MISSION
CRITICAL

Failure is Mainstream
Mainstream ER&D
ER&D services
services
material
to current
performance

High-value services Industrialized services

SUPPORTING
Early-stage innovation Transformation & outsourcing
All other Disruptive technologies Factories & automation
activities Digital & human-centered design Global pool of talents

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 1. OUR INDUSTRY Compelling market opportunity Fast evolving competitive landscape New trends in client behavior 2. OUR AMBITION 3. OUR FOCUS 4. OUR COMMITMENT

MULTIPLE
OVER
THE ACQUISITION
THE CLIENT
LAST 3 YEARS,
SUCCESSES
OF ARICENT
ALTRAN
VALIDATE
HASHAS
GIVEN
SHARPENED
OUR
SCALE
APPROACH
TOITS
OUR
MODELS TO GAIN A FIRST MOVER ADVANTAGE

CORE CONTEXT
Success increases competitive differentiation All other activities

MISSION  Altran Service Lines

CRITICAL

Failure is
material
to current
performance
North Am.
 Altran World-Class Centers Semicon.  Altran Industrialized
Leader
GlobalShore®
SUPPORTING

All other
activities Design venture

 Altran + Aricent World-Class  Altran + Aricent

Centers Industrialized GlobalShore®

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2.
Our Ambition
A new league player
 1. OUR INDUSTRY 2. OUR AMBITION Best-of-breed synergetic service models High-growth industries Geographic leadership 3. OUR FOCUS 4. OUR COMMITMENT

THE HIGH ROAD, ALTRAN 2022

BEST-OF-BREED SYNERGETIC SERVICE MODELS

Elevate our service models to best match client demand & capture value

HIGH-GROWTH INDUSTRIES
Expand our footprint in fast growing and pivotal industries

GEOGRAPHIC LEADERSHIP
Demonstrate our leadership position in North America

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 1. OUR INDUSTRY 2. OUR AMBITION Best-of-breed synergetic service models High-growth industries Geographic leadership 3. OUR FOCUS 4. OUR COMMITMENT

THE HIGH ROAD, ALTRAN 2022

BEST-OF-BREED SYNERGETIC SERVICE MODELS

Elevate our service models to best match client demand & capture value

HIGH-GROWTH INDUSTRIES
Expand our footprint in fast growing and pivotal industries

GEOGRAPHIC LEADERSHIP
Demonstrate our leadership position in North America

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 1. OUR INDUSTRY 2. OUR AMBITION Best-of-breed synergetic service models High-growth industries Geographic leadership 3. OUR FOCUS 4. OUR COMMITMENT

ELEVATE OUR SERVICE MODELS TO BEST MATCH CLIENT

DEMAND & REALIZE VALUE
02 Excel in Mainstream ER&D services

€1.9bn
in 2017*

Mainstream ER&D services

Mainstream ER&D services

High-value services Industrialized services

01
High-value services Industrialized services 03

Deploy global High-value portfolio Leverage Industrialized GlobalShore®

€0.4bn €0.6bn
in 2017* in 2017*

Note: (*) Pro-forma of Aricent acquisition

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 1. OUR INDUSTRY 2. OUR AMBITION Best-of-breed synergetic service models High-growth industries Geographic leadership 3. OUR FOCUS 4. OUR COMMITMENT

1. DEPLOY GLOBAL HIGH-VALUE PORTFOLIO

UNMATCHED PORTFOLIO OF HIGH-VALUE BRANDS & EXPERTISE

WE WILL…

 Develop synergies across these proven-

WORLD CLASS CENTERS track record entities
 Focus our senior global sales team (c. 100
FTE) to High-value portfolio sales
 Drive accountability through a specific
P&L
 Continuously enrich the portfolio with new
INNOVATION PRACTICES
& SOFTWARE FRAMEWORKS
disruptive technologies

Ambition: €0.4bn c. €0.6bn

in 2017* in 2022
+9-10%
(*) Pro-forma of Aricent acquisition
CAGR
18 organic
 1. OUR INDUSTRY 2. OUR AMBITION Best-of-breed synergetic service models High-growth industries Geographic leadership 3. OUR FOCUS 4. OUR COMMITMENT

02 1. OUR HIGH-VALUE PORTFOLIO ADDRESSES ATTRACTIVE

MARKET SEGMENTS

ALTRAN PORTFOLIO MAPPING FAST-GROWING HIGH-VALUE DOMAINS

Software Analytics & AI

Frameworks Integrated design
Advanced SW
development
>40%

Industrial IoT Advanced software development

Altran direct margin

Integrated design

Next gen Connectivity

Software frameworks

Analytics & AI
<40%

Industrial Internet of Things

Next Gen Connectivity

<10% p.a. >= 10% p.a.

Market growth

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 1. OUR INDUSTRY 2. OUR AMBITION Best-of-breed synergetic service models High-growth industries Geographic leadership 3. OUR FOCUS 4. OUR COMMITMENT

2. EXCEL IN MAINSTREAM ER&D SERVICES

b WE WILL…

Mainstream ER&D services a Capture & scale profitable opportunities

deriving from High-value services
a c b Maintain focus & business discipline through
High-value Industrialized strengthened governance
services services
c Leverage the model as a platform to transform
clients’ R&D through Industrialized services

Ambition: €1.9bn c. €2.5bn

in 2017* in 2022
+5-6%
CAGR
organic
(*) Pro-forma of Aricent acquisition
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 1. OUR INDUSTRY 2. OUR AMBITION Best-of-breed synergetic service models High-growth industries Geographic leadership 3. OUR FOCUS 4. OUR COMMITMENT

2. EXCEL IN MAINSTREAM ER&D SERVICES

ADM EVOLUTION IN FRANCE

Value
for customer
Mainstream ER&D services
Industrialized Efficiency

+15%
p.a.

-1%
p.a.

Altran Delivery Models

Altran as an ADM1 ADM2/3/4
Altran as a Altran as a Altran as a Project/
Industrialized
time & material Work package Managed services
Globalshore®
provider (ADM1) provider (ADM2) provider (ADM3/4) 2013 2017
provider

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 1. OUR INDUSTRY 2. OUR AMBITION Best-of-breed synergetic service models High-growth industries Geographic leadership 3. OUR FOCUS 4. OUR COMMITMENT

3. LEVERAGE INDUSTRIALIZED GLOBALSHORE®

SCALING TO C. 25,000 ENGINEERS BY 2022

WE WILL…

 Seize global opportunities linked to clients’

transformation

 Co-develop tailored delivery centers with

strategic clients

 Position as the preferred ER&D services

partner to bridge talent geographic mismatch

c. 25,000  Drive standardization & software automation

Near/offshore towards next level of industrialization
c. 16,000 engineers

~500

2015 2018 2022

Ambition: €0.6bn c. €0.9bn
3 Global Delivery centers 5 Global Delivery centers 6 Global Delivery centers
in 2017* in 2022
3% of total workforce 36% of total workforce +8-10%
CAGR
(*) Pro-forma of Aricent acquisition
organic
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 1. OUR INDUSTRY 2. OUR AMBITION Best-of-breed synergetic service models High-growth industries Geographic leadership 3. OUR FOCUS 4. OUR COMMITMENT

3. BRIDGING THE GEO MISMATCH IN TALENT SUPPLY/DEMAND

Russia
Germany
454K
China 1.3M
France €30B €65B
130K
168K
€175bn
€320B 238K Ukraine Japan
€105bn
€45B

United States Korea

1.5M

Key India
Business expenditures on
€xbn
R&D (2017, top 6 countries)
# of engineering graduates per
xM
year (2015, top 6 countries)

of the R&D budget

of engineers
are spent in the US,
~60% Western Europe
But only ~20% are graduated
Sources: World Economic Forum, OECD, IRI, IMF, International Management Consultants, Altran in these geographies
and Japan

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 1. OUR INDUSTRY 2. OUR AMBITION Best-of-breed synergetic service models High-growth industries Geographic leadership 3. OUR FOCUS 4. OUR COMMITMENT

FROM €2.9B PRO-FORMA IN 2017… TO €4.0B IN 2022 (ORGANIC)

02 Excel in Mainstream ER&D services

€1.9bn c. €2.5bn
in 2017* in 2022
+5-6%
CAGR
organic

Mainstream ER&D services

High-value Industrialized
services services
01 03

Deploy global High-value portfolio Leverage Industrialized GlobalShore®

€0.4bn c. €0.6bn €0.6bn c. €0.9bn

in 2017* in 2022 in 2017* in 2022
+9-10% +8-10%
CAGR CAGR
organic organic
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(*) Pro-forma of Aricent acquisition
 1. OUR INDUSTRY 2. OUR AMBITION Best-of-breed synergetic service models High-growth industries Geographic leadership 3. OUR FOCUS 4. OUR COMMITMENT

THE HIGH ROAD, ALTRAN 2022

BEST-OF-BREED SYNERGETIC SERVICE MODELS

Elevate our service models to best match client demand & capture value

HIGH-GROWTH INDUSTRIES
Expand our footprint in fast growing and pivotal industries

GEOGRAPHIC LEADERSHIP
Demonstrate our leadership position in North America

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 1. OUR INDUSTRY 2. OUR AMBITION Best-of-breed synergetic service models High-growth industries Geographic leadership 3. OUR FOCUS 4. OUR COMMITMENT

EXPAND FOOTPRINT IN HIGH GROWTH INDUSTRIES

MARKET: STRONG GROWTH IN HI-TECH INDUSTRIES EXPAND IN FAST GROWING INDUSTRIES LEVERAGING SYNERGIES WITH ARICENT
ER&D services market growth (2017-22, annual growth)

Software & Internet vertical

 Become a leading edge Software Product Engineering
c. €4.0bn
company

>12% • Software & Internet Semiconductor & Electronics

Other
 Position as the preferred transformation partner for
• Semiconductor & Electronics €2.9bn industries
chipmakers and leverage capabilities across other industries
8-12% •
•
Automotive
Life Sciences
Automotive
• Next gen communications Other
industries  Accelerate on next gen car (UX, ADAS and Connectivity)
• Railway  Win large deals on complete vehicle development
5-8% • Industries
• Aerospace & Defense c. 52% Next gen communications
of rev.  Lead in next gen technologies (5G, SDN/NFV, IoT, edge
<5%
• Legacy communications +c. €750m
• Energy c. 44% organic computing…)
of rev.
Life Sciences
 Accelerate development and leverage High-value brands
Altran 2017 PF Altran 2022

Sources: OECD, IRI, IMF, International Management Consultants, Altran

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 1. OUR INDUSTRY 2. OUR AMBITION Best-of-breed synergetic service models High-growth industries Geographic leadership 3. OUR FOCUS 4. OUR COMMITMENT

SEMICONDUCTOR, SOFTWARE & COMMUNICATIONS CAPABILITIES

BECOME PIVOTAL ACROSS INDUSTRIES

SEMICONDUCTOR SOFTWARE & COMMUNICATIONS AUTOMOTIVE ENERGY AEROSPACE & LIFE SCIENCES …
& ELECTRONICS INTERNET DEFENSE

Proliferation Software eating Massive NEW USES CASES:

of electronics the world connectivity
devices  Autonomous cars  Real time remote  In-flight  Remote
GPU control connectivity diagnosis
 V2X / Car  Asset tracking  Advanced  Smart health
Connectivity infotainment applications
 Predictive
 Mobility maintenance  Satellite
Platforms constellation

Digital transformation & Industry 4.0

IoT – Connectivity – 5G

Software products, applications & platforms – Cloud, data & AI

Platforms & sensors – New computing architectures

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 1. OUR INDUSTRY 2. OUR AMBITION Best-of-breed synergetic service models High-growth industries Geographic leadership 3. OUR FOCUS 4. OUR COMMITMENT

UNMATCHED COMBINED OFFERING TO ADDRESS NEXT GEN

CAR CHALLENGES

HMI Connectivity Telematics ADAS

Software Frameworks

Mobile Apps

In-Vehicle Infotainment

Silicon Design H/W Design Platform S/W Cloud & Analytics

System Integration & End-to-end Validation

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 1. OUR INDUSTRY 2. OUR AMBITION Best-of-breed synergetic service models High-growth industries Geographic leadership 3. OUR FOCUS 4. OUR COMMITMENT

SEMICONDUCTOR BECOMING PERVASIVE

EVOLUTION OF SEMICONDUCTOR R&D SPEND ACROSS INDUSTRY VERTICALS (USD BN)

2017-23
CAGR: ~18% ~25% ~22% ~31% ~67% ~17% ~21%

7.2
Rise of connected
devices across
industries is pushing
4.6 companies to design
custom chipsets

2.7
2.4 2.2

1.2 1.0
0.7 0.8
0.5 0.3
0.2 0.1 0.2

Consumer Automotive Telecom & Medical Device Software & Industrial Aerospace and
Electronics Networking Internet Defense
(Data Center)

Sources: Zinnov
2017 2023
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 1. OUR INDUSTRY 2. OUR AMBITION Best-of-breed synergetic service models High-growth industries Geographic leadership 3. OUR FOCUS 4. OUR COMMITMENT

THE HIGH ROAD, ALTRAN 2022

BEST-OF-BREED SYNERGETIC SERVICE MODELS

Elevate our service models to best match client demand & capture value

HIGH-GROWTH INDUSTRIES
Expand our footprint in fast growing and pivotal industries

GEOGRAPHIC LEADERSHIP
Demonstrate our leadership position in North America

30
 1. OUR INDUSTRY 2. OUR AMBITION Best-of-breed synergetic service models High-growth industries Geographic leadership 3. OUR FOCUS 4. OUR COMMITMENT

GEOGRAPHIC LEADERSHIP

2017 MARKET: 2017 MARKET: 2017 MARKET:

€65bn €40bn €50bn
+8-10% CAGR +4-6% CAGR +9-11% CAGR

Demonstrate our leadership Strengthen #1 position Selective expansion

position in North America in Europe in Asia
Deploy a multi-industry ER&D services leader Deploy the Altran service models at scale Establish platform for growth in China on
leveraging a premier global delivery in all geographic clusters selected domains
Leverage our leading position in Achieve profit turnaround in Germany Initiate development in adjacent Asian
Communications and Semiconductor
markets
Reach next level of operational
Accelerate development in Automotive,
excellence
Software / Internet and Life Sciences

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 1. OUR INDUSTRY 2. OUR AMBITION Best-of-breed synergetic service models High-growth industries Geographic leadership 3. OUR FOCUS 4. OUR COMMITMENT

2015-2018: WE HAVE EXECUTED A DISCIPLINED USA BUILD-UP…

2014 2015 2016 2017 2018

Divestment of non-
tech core utilities +
business
(US subsidiary)

BUILDING A FOOTPRINT ACROSS THE USA… …CONNECTED TO GLOBAL TALENT POOLS

West Coast Central East Coast c. USD 800m India Ukraine Mexico
Revenues
in 2017 PF*

Automotice
Aerospace

(*) Including revenues generated by Cambridge Consultants and Tessella in the US

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 1. OUR INDUSTRY 2. OUR AMBITION Best-of-breed synergetic service models High-growth industries Geographic leadership 3. OUR FOCUS 4. OUR COMMITMENT

…TO BE INTEGRATED IN A MULTI-INDUSTRY LEADER WITH A

PREMIER GLOBAL DELIVERY

Altran North America /

Communications Semiconductor Software & Automotive Life Sciences

…
& Electronics Internet

tech
Cross-industry
footprint

Industrialized
services
India Ukraine Mexico US

Synergetic collaboration with

High-value entities:

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 1. OUR INDUSTRY 2. OUR AMBITION Best-of-breed synergetic service models High-growth industries Geographic leadership 3. OUR FOCUS 4. OUR COMMITMENT

ALTRAN NORTH AMERICA UNIQUELY POSITIONED TO

CAPTURE PROFITABLE GROWTH

REVENUES GENERATED IN NORTH AMERICA*

WE WILL…
c. USD 1.2bn
+8-9% CAGR  Aggressively pivot investments to digital and
organic next gen capabilities
 Drive client centricity and growth
c. USD 800m
culture
 Win & develop the best design and
engineering talent
 Relentlessly drive cost and revenue
synergies through integration
c. USD 90m

2014 2017 2022

(*) Continued operations only; including revenues generated by Cambridge Consultants and Tessella in the US

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 1. OUR INDUSTRY 2. OUR AMBITION Best-of-breed synergetic service models High-growth industries Geographic leadership 3. OUR FOCUS 4. OUR COMMITMENT

THE HIGH ROAD, ALTRAN 2022: TOPLINE EXPANSION

BEST-OF-BREED
HIGH-GROWTH INDUSTRIES SYNERGETIC SERVICE MODELS
c. +10% CAGR organic +€0.3bn
c. +€750m in high-growth industries by 2022 +€0.2bn
+€0.6bn

€4.0bn
€2.9bn
GEOGRAPHIC LEADERSHIP IN NA
+8-9% CAGR organic
Altran Mainstream High-value Industrialized 2022
c. +USD 400m by 2022 ER&D services services
2017* services ambition

(*) Pro-forma of Aricent acquisition

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3.
Our Focus
Disciplined & phased execution
 1. OUR INDUSTRY 2. OUR AMBITION 3. OUR FOCUS Phased Convergence Organization Leadership bench Operational Excellence 4. OUR COMMITMENT

1. PHASED CONVERGENCE 2. ORGANIZATION

Phased, focused & de-risked execution of the Sharpened organization
Convergence program with Aricent focusing on execution

EXECUTION &
IMPLEMENTATION

3. LEADERSHIP BENCH 4. OPERATIONAL EXCELLENCE

Diverse and seasoned leadership bench Disciplined approach and
to support the implementation operational focus

37
 1. OUR INDUSTRY 2. OUR AMBITION 3. OUR FOCUS Phased Convergence Organization Leadership bench Operational Excellence 4. OUR COMMITMENT

01 CONVERGENCE PROGRAM

PRINCIPLES EXECUTION BLOCKS

Phased Clients & Go-to-Market

Focused High Value Mainstream Industrialized

Services ER&D Services GlobalShore®

De-risked Target Talent US build-up

Synergies
Operating Model management integration

…Enabling plan execution, synergies capture Cash Legal & Tax Group ERP Shared
and convergence towards target operating model Generation Structure & Systems Services

Sequence
H2 2018 2019 2020
highlights
Clients & Go-to-market unified  Service models aligned  Target operating model rolled-out 
US build-up integrated  Synergies totally delivered 
Talent management unified  Group ERP running 
Legal & Tax Structure simplified 

38
 1. OUR INDUSTRY 2. OUR AMBITION 3. OUR FOCUS Phased Convergence Organization Leadership bench Operational Excellence 4. OUR COMMITMENT

01 100-DAY CEO REPORT: ASSUMPTIONS CONFIRMED

 Deep-seated shared vision

Leadership  All senior leaders in position & accountable – zero departure
 Confirmation of the strength of Aricent management team

 Powerful complementarity on technology, innovation and IP

Offerings &
 Straight convergence of our global delivery models
Operations
 Promising client feedback & pipeline building

 Synergies outlook confirmed by management

Synergies &
 Potential for further SG&A optimization
de-risking
 Very minimal overlap de-risking Convergence

39
 1. OUR INDUSTRY 2. OUR AMBITION 3. OUR FOCUS Phased Convergence Organization Leadership bench Operational Excellence 4. OUR COMMITMENT

01 STRONG COMMERCIAL MOMENTUM IS MATERIALIZING

EARLY SUCCESSES RECORDED SOLID PIPE DEVELOPMENT

6 common engagements signed: 40+ opportunities jointly addressed:

 5 amounting to c. €10m  Over €100m total contract value

 1 landmark project in excess of €100m  Several tangible deals

total contract value over 3 years on transformation services

 VALIDATES OUR TOPLINE SYNERGIES ASSUMPTIONS (€150M)

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 1. OUR INDUSTRY 2. OUR AMBITION 3. OUR FOCUS Phased Convergence Organization Leadership bench Operational Excellence 4. OUR COMMITMENT

02 OPERATIONS: SHARPENED ORGANIZATION FOCUSING ON EXECUTION

Daniel CHAFFRAIX Pascal BRIER

Dominique CERUTTI Frank KERN

DELIVERY & TECHNOLOGY &

TRANSFORMATION INNOVATION

Europe COO SVP Industry global

William ROZÉ
leaders • Global delivery • Technology &
EUROPE

• Performance & business discipline innovation

Cyril ROGER • Excel in mainstream ER&D services • Group “Convergence”

• Enable High-value/industrialized • Grow High-value program • High-value business
services and industrialized development
services
• Delivery synergies
NA COO
Rick PADINHA • Topline synergies • Altran / Aricent docking
AMERICA
NORTH

• Performance & business discipline

Laila WORRELL • US build-up integration
• Cost synergies SVP Industry global
leaders

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 1. OUR INDUSTRY 2. OUR AMBITION 3. OUR FOCUS Phased Convergence Organization Leadership bench Operational Excellence 4. OUR COMMITMENT

03 DIVERSE AND SEASONED LEADERSHIP BENCH (EXTRACT)

Pascal BRIER Cyril ROGER Laila WORRELL Daniel CHAFFRAIX Albin JACQUEMONT
Microsoft, AT&T Segula Accenture, BCG IBM, Capgemini Carrefour, Suez

Technology & Innovation Industries & Operations Transformation & Delivery Finance

Keith WILLIAMS Walid NEGM William ROZÉ J.R. MAGARZO Rick PADINHA Helen CHERRÉ Sanjeev VARMA Olivier SERGENT
Praxis HIS Accenture Altran EY, Capgemini IBM Airbus Sopra Steria Technip, Nokia

Corinne JOUANNY Harry WEST Thierry VOISIN Dan DARGHAM Harmeet CHAUHAN Eric JOHNSON
Mark PHILLIPS Meryem CHAMI
2014 Engineering Continuum Capgemini IBM HCL, Microsoft IBM
IBM OCP
woman of the year

Glenn HOOGERWERF Eric WILKINSON Dietmar WENDT M. PATRIGNANI Scott HOUGHTON Mohan RANGAN Chandra REDDY
…
HCL BP IBM, T-Systems Altran AMD, Hughes Software Wipro
Open-Silicon

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 1. OUR INDUSTRY 2. OUR AMBITION 3. OUR FOCUS Phased Convergence Organization Leadership bench Operational Excellence 4. OUR COMMITMENT

04 OPERATIONAL EXCELLENCE
STILL A LEVER FOR MATERIAL MARGIN IMPROVEMENT

ASSESSMENT TO DATE NEW EXECUTION GOVERNANCE: JULY 2018

 Business discipline delegated to 20+ countries,  Group COO, North America

driving to contrasted business performance  Group COO, Europe
 Group Program Office, Global

3 TOP PRIORITIES

Mainstream business
Complex Program Germany turnaround
excellence &
performance Task force
Talent acquisition

43
 1. OUR INDUSTRY 2. OUR AMBITION 3. OUR FOCUS Phased Convergence Organization Leadership bench Operational Excellence 4. OUR COMMITMENT

04 REINFORCED GERMANY MANAGEMENT (2018)

Cyril Roger William Rozé

Europe Europe operations

Werner Ferreira Oliver Wyman

Germany CEO Dr. Lutz Jaede = Newly appointed
= Group support

Turnaround and change management Go to market and operations Operational excellence

Auto Aero

Alexander Jean-Philippe Dr. Alexander Helen Cherré

Gentemann Schmitt Bödcher Program
Organization & Automotive Aeronautics Group expert
Transformation Operations Operations support

Dominique Giles Guidicelli Marcus Brink Michael

Vaubel Automotive Airbus Hoffmann
HR & Social Sales Operations ANÜ transformation

Clemens von
Ulrich Schmitt
Braunmühl
Finance &
German Automotive
Administration
Global Accounts

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 1. OUR INDUSTRY 2. OUR AMBITION 3. OUR FOCUS Phased Convergence Organization Leadership bench Operational Excellence 4. OUR COMMITMENT

04 2018-20 GERMANY TURNAROUND EXECUTION PATH

German cluster German cluster Group

KPIs YE 2017 min. target 2020 YE 2017 Improvement levers

• Utilization task force to restore invoicing rate from

81% to c. 85% (group benchmark at 88%)

Gross
• Reinforced program management to optimize
margin (%) c. 21% c. 25% c. 29% delivery

• Increase share of Industrialized GlobalShore®

• Prioritize profitable projects and increase DSR

SG&A • G&A transformation to converge towards Group

(%) c. 22% c. 19% c. 18% benchmark

EBIT
(%) c. -1% c. 6%

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From
Ignition…

…To
The High Road
 STATUS OF ALTRAN 2020. IGNITION PRIOR TO ARICENT
ACQUISITION

ON TRACK TO €3B REVENUES IN 2020  ON TRACK TO 13% EBIT IN 2020 

Achieved 13%
Ignition 2020 target Drivers:
2015-2017
• 7,000 HC offshore +70bps
• 7 WCCs (= Germany at
• SG&A improvement 12.6% > 6% EBIT)
Economic
4.5% p.a. 5.7% p.a. by model
Growth 12.3%
10.8%
c. 50% after 2 +50bps p.a.
Acquisitions €500m (– 10bps buffer p.a.)
years 9.6%

Drivers:
• 12,000 HC offshore
+60bps p.a. • 10-12 WCCs
• SG&A improvement by model

2015 2016 2017 2020

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4.
Our Commitment
Superior & sustainable value creation
 1. OUR INDUSTRY 2. OUR AMBITION 3. OUR FOCUS 4. OUR COMMITMENT

2022 FINANCIAL OBJECTIVES:

FOCUS ON PROFITABLE GROWTH AND DELEVERAGING

Revenues c. €4.0bn
At constant perimeter

Leverage <1.5x
Operating Margin* c. 14.5%
Earnings per
share
x2
vs. 2017
Free Cash Flow**
(incl. financing costs)
c. 9%
of Revenues

*Operating Margin is defined as Operating Income plus Amortization of intangibles assets arising from business combinations plus Non-recurring items plus Share-based compensation.
** Free Cash Flow (incl. financing costs) defined as Operating Margin plus Depreciation & Amortization (D&A), plus or minus the impact of Non-cash P&L, plus or minus the Cash impact on
non-recurring, plus or minus the Decrease/increase of working capital, minus Tax paid, minus Capital expenditures net of fixed assets sale proceeds, minus Cash financing costs, minus
impact of cash commitments from large software outsourcing deals.

49
 1. OUR INDUSTRY 2. OUR AMBITION 3. OUR FOCUS 4. OUR COMMITMENT

2017-2022 OPERATING MARGIN BRIDGE

+200 bps -100 bps

+70 bps -150 bps

+100 bps -30 bps
~14.5%

+100 bps

12.6%

Units
2017 PF Remix
Performance Reduction of Mainstream SG&A & 2022
High-Value & Fix
Operating Industrialized Mainstream Software deals
Germany
Business cost Contingency Operating
High-Value weight pressure synergies
Margin GlobalShore® IGS Margin

50
 1. OUR INDUSTRY 2. OUR AMBITION 3. OUR FOCUS 4. OUR COMMITMENT

BALANCED CAPITAL DEPLOYMENT ENABLING DELEVERAGING

 Enable the integration, capture synergies and cost savings  Pay financial costs (decreasing with deleveraging)
 Support business expansion with working capital  Extinguish Aricent cash commitments (decreasing each
 Invest with discipline in the business (capital intensity year and ending in 2021)
c.2% of revenues over the plan / D&A c. 2% of revenues)  Revamp tax structure and benefit from improving tax
environment
Taxes and
financial
Reinvestment
commitments

Shareholder
Value Creation

 Prioritize deleveraging: below 2.5x in 2020 and below 1.5x in 2022

 Maintain cash above EUR 250m and gradually repay debt
 Return value to shareholders in line with past practice

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 CLOSING REMARKS

THE HIGH ROAD, ALTRAN 2022

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