Sopra Steria: Capital Markets Day 2024 - A Glimpse into the Future

Sopra Steria, a leading European tech player, held its Capital Markets Day on December 12, 2024, outlining its strategic plan for the next four years. The Group aims to exceed €7 billion in revenue by 2028, driven by organic growth of 2% to 5% per year post-2025 and an external growth policy generating around €1 billion in acquired revenue between 2024 and 2028. The Group also targets an improved operating margin on business activity of between 10% and 11%, higher return on capital employed before tax of around 20%, and free cash flow of between 5% and 7% of revenue for the period.

Sopra Steria's focus on high-value-added offerings, such as consulting and digital services, has been a key driver of its growth in the four strategic markets: Public Sector, Financial Services, Defence & Security, and Aeronautics & Space. By providing end-to-end solutions that combine in-depth knowledge of various business sectors and innovative technologies, the company helps its clients drive their digital transformation and obtain tangible benefits. This approach has enabled Sopra Steria to maintain a competitive edge and generate sustainable growth in these markets.

The Group's operations in these sectors are influenced by regulatory and geopolitical factors. In the Public Sector, regulatory changes such as austerity measures and digital transformation initiatives impact the Group's activities. In Financial Services, regulations like Basel III and MiFID II affect the Group's offerings, while geopolitical factors such as Brexit and the global economic climate influence client demand. In Defence & Security, geopolitical tensions and government spending on defence and security projects drive the Group's business. In Aeronautics & Space, regulatory changes and geopolitical dynamics, such as international collaborations and space exploration initiatives, impact the Group's operations.

Sopra Steria's strategic plan for the next four years is ambitious and focused on driving growth and improving financial performance. The Group's focus on high-value-added offerings and its ability to adapt to regulatory and geopolitical changes position it well to achieve its targets and maintain its competitive edge in the tech industry.