2019 ANNUAL RESULTS
1
SOGECLAIR creation to lead the companies development
created in 1962
Listed on theParis Stock Exchange
1998
1986
SOGECLAIR is a leading supplier of technological solutions and products with high added-value in the
transportation industry (air and ground)«
2001 – 2005Set up in Europe
2013-2015Set up in
North America
2018Set up in
Asia Pacific
SOGECLAIR is a family company listed on NYSE Euronext Paris
1990’sWork Packages
2000’sProducts
2010’sManufacturing
Engineering
2019Entry into the capital of
KEY’S(6,4% of the capital –
74 « Key people » of SOGELAIR)
Production Sites (5 with 3 in France)
Design Office
HeadquarterBlagnac - FRANCE
Our international development started in the 2000s and keeps growingThe Group has continued its industrial strengthening with today 5 factories in Toulouse (2), in Ile de France (1), in
Montreal (1) and in Savannah (1), focused on the critical phases of manufacturing of our products.
International turnover for 2019: 56.6% (€104.7M)
In 5 years: +67.7% so that’s +€42.3M
A UNIQUE OFFER
RESEARCH & DEVELOPMENT DESIGN & ENGINEERING PRODUCTS &
MANUFACTURING SUPPORT
MaterialsProcessSystemsSoftware
AerostructuresInteriors
Digital and virtual applications
Vehicles Platforms
Aerostructures and interiorsEquipment
Software & SimulatorsVehicles Platforms
Advanced testAdditive Manufacturing
RepairsLiaison engineering
MRO
OUR VISION
To be a reference player and a truly international long-termpartner for the mobility industry by providing advancedtechnological solutions.
OUR MISSION
To supply innovative technological products and services that increase theperformance of mobility resources (aeronautics, space, automotive, rail,etc.) to OEMs, equipment manufacturers and operators.
PRODUCTS
HUTP – fast attack vehicle
Vehicle simulator
Aircraft interior
Driving simulator - Roads
The product activity of SOGECLAIR Group exceeds €75M of turnover in 2019 of which almost 2/3 are delivered, installed and/or maintained internationally.
Baro Setting Control Box (cockpit equipment)
Full tank access cover (thermoplastic)
Subway simulator
AEROSPACEDIVISION
SIMULATION DIVISION
VEHICLEDIVISION
Engineering & Products Engineering & manufacturing of mission
vehicles
Simulators and simulation software
Virtual reality
Artificalintelligence and Deeplearning
Mechanical engineering
Systems integration
Cross-cutting R&D and know-how for mobility
AEROSPACE80% of turnover
Serie: 46%Products: 28%
Developpment: 26%
SIMULATION
19% of turnoverProducts: 100%
VEHICLE
1% of tunoverProducts: 100%
CanadaGermany
FranceSpain
TunisiaUnited-Kingdom
United-States
AustraliaFranceIndia
United-KingdomUnited-States
France
HIGHLIGHTS 2019
Creation of KEY'S, a company composed by Group’s key women and men,
accompanied by its President and CEO to support its long-term development.
Capital increase of €4.86 M.
Successful integration of the Australian subsidiary.
Acquisition of minority shares in the aeronautical activity in North America, as
well as those in the vehicle industry. SOGECLAIR now owns 100% of the vehicle
activity and the North American subsidiaries of the aerospace division.
Official creation of PrintSky, subsidiary dedicated to additive manufacturing
(Joint Venture with AddUp).
2019 RESULTS
www.sogeclair.com
In 2019, SOGECLAIR achieved
growth of +16%.
of which +11.9% at constant scope
and exchange rates
Reminder of the perspectives presented at
the 2018 results
In the future, external growth will
accelerate development.
In the short term, SOGECLAIR
anticipates another year of growth in
2019.
Achieved
www.sogeclair.com
Reminder of the outlook presented for H1 2019 results
Business in the second half of the year isexpected to grow despite a less favorable baseand scope of consolidation effect than in thefirst half.
H2 will be supported by higher margins than H1,which is structural for SOGECLAIR.
Improvements in the balance sheet will beachieved:
Under the effect of the capital increase of€4.8M reserved to key women and men(increase recorded on 12 July 2019),
Thanks to the repayment of tax receivablesamounting to €3M.
Achieved
H2 turnover : €10.5M, +12.53% vs H2 2018
EBITDA increase in H2: +€6.1M(2x H1 EBITDA)
Increase in Equity to €66M+ €12.1M vs H1
GEARING improvement: 36% vs. 57.8% inH1
2019: A CUSTOMER PORTFOLIO BALANCED
Airbus - Aircraft (FR, UK, SP, DE)
€59.1Mof wich 29% of
“products”
Bombardier – Aircraft€34.5M
of wich 41% of “products”
Dassault€18.7M
Top 4 to 10€30,5M
Top 11 to 20€12.1M
Others€30.1M
2018Turnover: €159.4 M
2019Turnover: €185.0 M
Airbus - Aircraft (FR, UK, SP, DE)
€54.6Mof wich 27% of
“products”
Bombardier –Aircraft€31.9M
of wich 33% of “products”
Dassault€17.0M
Top 4 to 10€19.5M
Top 11 to 20€10.5M
Others€25.9M
KEY FIGURES
www.sogeclair.com
TURNOVERACTIVITIES
€58.5M(37%)
€78.9M(43%)
€62.7M (39%)
€68.2M (37%)
€38.2M(24%)
€37.9M(20%)
2018 2019
Development(Service)
Support (Service)
Products
2018 2019
In €
M€
France Europe America Asia-Pacific Rest of the world
185.0
159.4 +16,0%8.0
71.4
43.4
0.8
0.5
80.3
54.0
41.9
37.8
6,3
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KEY FIGURES
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In €
M
15.6
16.9
2018 2019
EBITDA at 9.1% of TURNOVER
9.1
1
6
2018 2019
In €
M
SYDAC impact: (€2.6 M)
Impact of large simulators: (€2 M)
7.05.8
2018 2019
Increase in tax expense +€0.9M
NET RESULT at 3.2% of TURNOVER
OPERATING INCOME AT 4.8% of TURNOVER
8.8
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KEY FIGURES
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GEARING (including qualified pre-payment)
36.0%**
2018 2019
44.7%*
* of which 14.9% related to the application of IFRS 16
** of which 13.8% related to the application of IFRS 16
Equity increased by €9 million, thanks in particular to the €4.8 millioncapital increase carried out during the financial year.
DIVIDEND
0.67
0.90
2018 2019
In €
by sh
are
+34.3%
SOGECLAIR confidentiel
2018 2019
Turnover 159.4 185.0
EBITDA 15.6 16.9
Operational Result 9.1 8.8
Net Result 7.0 5.8
Net Debt (including qualified pre-payments)* 25.5 23.8
* Including IFRS 16 8.5 9.1
IN SYNTHESIS
2019 ACCOUNTS (€M)
AEROSPACE DIVISION
Engineering & Products
www.sogeclair.com
AEROSPACE
www.sogeclair.com
Our products are installed on more than 11 commercial and business aircraft programs for 4
manufacturers.
With our engineering specialities, we support 8 manufacturers on 3 continents to design,
improve, manufacture, support and service their aircraft.
We master innovative technologies and materials as well as our customers' processes, methods
and tools.
Our qualifications enable us to create certification files and we have our own manufacturing
certification.
www.sogeclair.com
AEROSPACE
Purchase of minority shares in North America: SOGECLAIR owns 100% Strong growth of thermoplastic composites (+ €5.7M) Start of service activity production in India
www.sogeclair.com
In €M 2018 2019Variation
2019-2018
Turnover 134.7* 147.8** +9.7%
EBITDA 7.9 10.4 +31.0%
As a % of turnover 5.9% 7.0%
**of which €41.7M for the products activity so that28%
*of which €33.8M for the products activity so that 25%
AEROSPACE• Engineers mobility and trainingtowards new technologies /processes
• Winning of new customers
• Strengthening the internationalpresence
• Digitalization
A350 Center Wing Box
KEY FACTORS OF SUCCESS
Business aircraft interiors
MARKET DRIVERS
Innovation Ecological performance of aircrafts
Value engineering Rate
Air traffic growth
Maintenance of fleets in service and of the second-
hand market
SIMULATION DIVISION
Simulators and simulation software
www.sogeclair.com
SIMULATION
www.sogeclair.com
Our more than 700 simulators, that have been installed in more than 20 countries and used
by more than 100 organizations and customers, comply with local regulatory requirements
and are guaranteed and maintained by our mobile intervention teams.
They are sold in public or private markets by our sales representatives, agents or
distributors.
Our software is implemented with more than 2,000 licenses at more than 150 customers,
manufacturers, equipment manufacturers, research centers or ministries in about 15
countries.
www.sogeclair.com
SIMULATION
SYDAC: <€0.3M> in EBTIDA + <€0.4M> in non-current operating result. The return to equilibrium is confirmed
for 2020
Businesses lag of large simulators (cost: €2M)
Distribution agreement with ANSYS (world leader in simulation software edition)
Creation of subsidiaries in the USA and commercial strengthening
www.sogeclair.com
In €M 2018 2019Variation
2019-2018
Turnover 21.7* 34.9* +60.7%
EBITDA 5.5 4.5 -18.3%
As a % of turnover 25.2% 12.8%
*100% products activity
SIMULATION
Railway Simulator in virtual reality DoF 6 Simulator and virtual reality headset
Needs for design and validation of complex systems incorporating
multiple technologies and environments (vehicles, systems,
…)
Training needs for operators & traceability
MARKET DRIVERS• Control of the complexity of
systems,
• Keep strengthening resources,
• Deployment of a direct and indirect commercial network on all continents.
KEY FACTORS OF SUCCESS
VEHICLE DIVISION
Engineering & manufacturing
of mission vehicles (military and industrial)
www.sogeclair.com
VEHICULIER
With our knowledge of operational requirements and our expertise in architecture and
dynamic behavior, we are designers and manufacturers of defense vehicles.
We are the privileged partner for the design and manufacture of sub-systems (domes,
gateways, etc.) intended for SOGECLAIR's large simulators.
www.sogeclair.com
VEHICLE
Cooperation for large simulators Open customer disagreement Settlement of the new management with General Luc Beaussant and preparation of theexport activity
www.sogeclair.com
In €M 2018 2019Variation
2019-2018
Turnover 3.0* 2.2* -25.4%
EBITDA 0.9 0.2 -80.0%
As a % of turnover 28.5% 7.6%
*100% products activity
2019 turnover excluding intragroup neutralization is growing by 3%
VEHICULIER
Increasing needs for protection and support
of the military in operation
Transformation and adaptation
needs for mission vehicles
MARKET DRIVERS
Mined route opening System (SOUVIM)
Multi-mission terrestrial drone
• Develop the international offer
• Adapt the organization to cope with significant size markets
to boost growth
KEY FACTORS OF SUCCESS
www.sogeclair.com
Perspectives 2020 Uncertainties relate mainly to :
In the short term, the consequences of the Coronavirus In the medium term the evolution of the exchange rate :
• € / USD• CAD / USD
In each country, SOGECLAIR takes measures to protect its employees by preserving the continuity of itsactivities as much as possible.
SOGECLAIR is positioned on markets that are driving sustainable growth.
2020 financial year will see increased investment as a result of : Supporting the strengthening of our industrial activities R&D to capitalize on our advances in :
• The autonomous vehicle• Digital technologies and virtual reality• Artificial intelligence• Thermoplastic materials• The new generation of railway simulation software,
SOGECLAIR is confident in its adaptability and its ability to make its model evolve.
2020FORECAST PRESS RELEASE DATES
Q1 2020 Turnover – 2020/05/06
Q2 2020 Turnover – 2020/07/22
2020 H1 Results – 2020/09/09Quiet period from 2020/08/26 to 2020/09/09
Q3 2020 Turnover – 2020/11/04
APPENDIXES
Appendixe 1: Consolidated income statement
INCOME STATEMENT(in €k) 2018 2019
Turnover 159,439 184,972Other operating income 6,006 6,206Cost of goods sold -61,833 -77,680Payroll expenses -85,709 -94,296Taxes and duties -1,258 -1,344Depreciation and amortisation -7,903 -7,768Other expenses -1,007 -952Current Operating Income 7,734 9 138Result on disposal of consolidated shareholdingsOther operating income and charges 1,385* -319**Operating income before income from equity method affiliates 9,119 8,819Share of income from equity method affiliates 5 -6Operating income 9,125 8,813Income from cash and cash equivalents -389 -331Gross finance costs -749 -745Net finance costs -1,138 -1,076
Other financial income and expenses 74 62
Income before taxes 8,061 7,799Income tax expense -1,104 -1,969Net profit 6,957 5,830Part of group 6,315 4,959Part of minority 642 870
**SYDAC impact in 2019 <429>
*SYDAC impact in 2018 + 1,736
Appendixe 2: Consolidated Balance Sheet - Assets
ASSETS(in €k) 2018 2019
Goodwill 14,589 15,154Intangible assets 8,431 7,411Tangible assets 15,214 15,638Equity method investments 83 230Financial fixed assets 3,001 3,578Non-current assets 41,318 42,012Inventory 12,129 12,565Trade notes, receivables and related accounts 60,334 69,967Other current debtors 20,410 16,440Deferred income tax 5,269 5,804Cash and cash equivalents 19,466 18,960
Current assets 117,608 123,735
TOTAL ASSETS158,926 165,747
Appendixe 3: Consolidated Balance Sheet - LiabilitiesPASSIF(en milliers d'euros) 2018 2019
LIABILITIES(in €k) 2,900 3,098Capital 2,630 7,269Share premium -712 -680Own shares 46,625 50,662Reserves and accrued profits 51,443 60,349Equity capital, group share 5,462 5,696Minority interests 56,904 66,044*Consolidated shareholders’ equity 5,710 5,453Non-current provisions 1,406 1,227Non-current qualified pre-payments 24,151 24,349Non-current financial liabilities 1 1Other non-current liabilities 31,269 31,030Non-current liabilities 1,130 614Current qualified pre-payments 7,904 9,739Current part of non-current financial liabilities 10,331 6,827Current financial liabilities 565 332Current provisions 18,696 21,177Trade creditors, instalments and related accounts 22,837 23,834Deferred income taxOther current liabilities 9,290 6,149Current liabilities 70,752 68,672
TOTAL PASSIF 158,926 165,747*of which €4.86 M of KEY’S capital increase (Key People of SOGECLAIR)
Appendixe 4: Consolidated sector-by-sector analysis
AEROSPACE VEHICULE SIMULATION HOLDING
INCOME STATEMENT(in €k) 2018 2019 2018 2019 2018 2019 2018 2019
Turnover 134,694 147,788 3,004 2,241 21,738 34,943 3Other operating income 3,157 2,402 125 324 2,722 3,450 3 30External expenses -50,605 -57,512 -1,219 -1,514 -8,961 -17,623 -1,048 -1,031Payroll expenses -73,499 -76,153 -1,065 -1,691 -8,892 -14,238 -2,253 -2,215Taxes and duties -795 -815 -64 -51 -171 -238 -228 -240Depreciation and amortisation -3,823 -4,539 -315 -337 -2,910 -1,868 -856 -1,024Other expenses -786 -760 -1 -22 -91 -64 -128 -106Intra-Group operations -4,255 -4,588 79 885 -870 -1,757 5,046 5,460Current operating result 4,087 5,825 543 -165 2,565 2,604 539 874Result on disposal of consolidated chareholdingsOther operating profits and expenses -23 364 1,727* -432** -319 -251
Operating result before earnings of equity method affiliates 4,064 6,190 543 -165 4,292 2,171 220 623
Share in earnings of equity method affiliates 5 -6
Operating income 4,070 6,184 543 -165 4,292 2,171 220 623
**SYDAC impact in 2019 <429>
*SYDAC impact in 2018 + 1,736
Appendixe 5 : Cashflow Statement
CONSOLIDATED CASHFLOW STATEMENT(in €k) 2018 2019
Consolidated net result (including minority interests) 6,957 5,830+/- Amortisation and provisions (excluding those linked to current assets) 3,861 7,673-/+ Latent gains and losses linked to fair value variations -25 -28-/+ Transfer capital gains and losses 37 -26-/+ Dilution profits and losses 27 458+/- Share in the result linked to equity method affiliates -5 6Self-financing capacity after net finance costs and tax 10,851 13,913+ Net finance costs 704 628+/- Tax charge (including deferred tax) 1,104 1,969Self-financing capacity before net finance costs and tax (A) 12,660 16,510- Tax paid (B) -5,666 2,276+/- Variation in working capital requirement linked to the activity (including debt related to personnel benefits) (C) -7,001 -10,145= CASHFLOWS FROM OPERATING ACTIVITIES (D) = (A + B + C) -7 8,641- Outflows linked to the acquisition of tangible and intangible assets -4,265 -3,642+ Inflows linked to the sale of tangible and intangible assets 72 142- Outflows linked to the acquisition of financial assets (non-consolidated securities) -33 -35+/- Impact of variations in scope 2,611
+ Dividends received (equity method affiliates, non-consolidated securities) * see alternative processing 7.2+/- Variation in loans and advances granted 164 -511
+ Investments grants received 95= CASHFLOWS FROM INVESTMENT ACTIVITIES (E) -1,357 -4,047
Acquisition of non-controlling interests -2,904 -1,272+ Sums received from shareholders at time of capital increases 44 4,868-/+ Buyback and sale of own shares 174- Dividends allocated for payment during the year
- Dividends paid to the parent company shareholders -1,707 -1,845- Dividends paid to the integrated company minority interests -275 -239
+ Revenue from loan issues 8,061 6,869- Loan reimbursements (including leasing contracts) -8,791 -9,251- Net finance costs (including leasing contracts) -770 -713= NET CASHFLOWS FROM FINANCING ACTIVITIES (F) -6,342 -1,410+/- Impact of changes in currency exchange rates (G) 86 -188= NET CASH VARIATION (D + E + F + G) -7,620 2,997
EMAIL ADDRESS
PHONE NUMBER+33 (0)5 61 71 70 33
SOGECLAIR 7 avenue Albert DurandCS 20069 – 31703 Blagnac Cedex France