Slide 1: HY Results 2023
HY RESULTS 2023 21 SEPTEMBER 2023
Slide 2: Disclaimer
DISCLAIMER This presentation, the presentation materials and discussion may contain certain forecasts, projections and forward-looking statements – that is statements related to future, not past, events – in relation to, or in respect of, the financial condition, operations or businesses of Solution
Slide 3: Speakers
SPEAKERS Gianbeppi Fortis Amaury Boilot Chief Executive Officer Group Secretary General 3
Slide 4: HY 2023 Key Highlights & Revenue
HY 2023 KEY HIGHLIGHTS & REVENUE Gianbeppi Fortis, CEO 4
Slide 5: Key Highlights
KEY HIGHLIGHTS Dynamic growth and improved ▪ Revenue up 16.8% in the first half of 2023, to €519.1m operating margin compared with the ▪ EBITDA margin 1.6 points higher than in the 2nd half of 2022 2nd half of 2022 ▪ Maintaining a low-debt financial structure despite strong growth ▪ Gradual recovery
Slide 6: H1 2023 Revenue: +16.84% (+16.80% organic)
H1 2023 REVENUE: +16.84% (+16.80% organic) +€ 74.8m (+16.84%) Purely organic change: € +74.7 (+16.80%) January 2022: Sirtel (Poland) Q1 Revenue: Q1 Revenue: Q1 Revenue: €101.6m (-13%) €82.8m (+77%) €70.8m (+19%) Q2 Revenue: Q2 Revenue: Q2 Revenue: €97.8m (-7%) €97.2m (+88%) €68.9m (+7%) In millions
Slide 7: Benelux and Other Countries Keep Driving the Growth
BENELUX AND OTHER COUNTRIES KEEP DRIVING THE GROWTH H1 2022 H1 2023 €222.7m €444.3m €255.3m €519.1m Other France -10% Other Countries Benelux +83% Countries €124m €139.7m Benelux and Other Countries keep driving growth Other Countries +13% 27.9% 26.9% France ▪ Strong market momentum, especially in t
Slide 8: HY 2023 Financial Results
HY 2023 FINANCIAL RESULTS Amaury Boilot, Group Secretary General
Slide 9: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS € millions H1 2023 H1 2022 H2 2022 FY 2022 Revenue 519.1 444.3 460.3 904.6 Operational costs 444.4 373.6 400.6 774.3 As % of turnover 85.6% 84.1% 87.0% 85.6% Central org. costs 47.2 40.9 42.7 83.6 As % of turnover 9.1% 9.2% 9.3% 9.2% Adjusted EBITDA(1) 27.5 29.6 17.1 46.7
Slide 10: Adjusted EBITDA – France Recovery Underway
ADJUSTED EBITDA – France RECOVERY UNDERWAY €221.9m €204.0m €199.4m Connectivity ▪ Stabilisation of the volumes ▪ Normalisation of the competitive environment and integration of Scopelec business in the Southeast of France ▪ Transformation of the model, improving process and organisation ▪ Working cl
Slide 11: Adjusted EBITDA – Benelux Hypergrowth & Ramp-ups Faster Than Expected
ADJUSTED EBITDA – BENELUX HYPERGROWTH & RAMP-UPS FASTER THAN EXPECTED €180.0m Connectivity €123.5m ▪ Growth superior to expectations, with revenue growing by +83% ▪ Acceleration of ramp-ups temporarily weighting on EBITDA margin: recruitment €98.4m and start-up costs incurred in H1 ▪ EBITDA margin e
Slide 12: Adjusted EBITDA – Other Countries
ADJUSTED EBITDA – OTHER COUNTRIES TEMPORARY IMPACT OF FTTH DEPLOYMENT IN ITALY, PREPARATION FOR GROWTH €139.7m €132.8m Italy €124.0m ▪ Deterioration in the conditions under which ultra-fast broadband infrastructure deployments are being executed ▪ Scale down of the business while negotiating contrac
Slide 13: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS € millions H1 2023 H1 2022 H2 2022 FY 2022 Adjusted EBIT 5.0 6.7 -7.0 -0.3 Amortisation of intangibles -7.1 -7.1 -7.3 -14.4 Financial result -2.9 -5.3 -11.7 -17.1 Non-recurring items -4.3 -8.4 -3.3 -11.8 Corporate taxes -1.3 3.0 -8.6 -5.6 Consolidated net income -10.6 -11
Slide 14: Financial Structure
FINANCIAL STRUCTURE Net cash position €54.0m Net bank debt €10.3m Net gross debt €38.9m Net financial debt €95.3m Fixed assets Fixed assets 221.4 217.8 Equity 131.8 Equity 145,3 Provisions 41.0 Provisions 39.2 Leasing Debt (IFRS16) 67.4 Leasing Debt (IFRS16) 72.8 Rights of use (IFRS 16) 67.9 Debt on
Slide 15: HY2023 Cash Generation
HY2023 CASH GENERATION Free cash-flow: -€32.4m ➔ Strong growth in H1 2023 with ramp-ups faster than anticipated in the Benelux ➔ Preparation of a new growth phase in Other Countries ➔ Measures implemented to optimise WCR in this context (1) (1) Change in WC excludes non-cash items 15 These figures h
Slide 16: Financial Key Facts
FINANCIAL KEY FACTS PROFITABILITY FINANCIAL STRUCTURE ▪ Progressive return to better margins in France underway ▪ A sound financial structure ▪ Ramp-ups in Benelux in a context of hyper-growth, ▪ Conservative management of which affects temporary the spending and cash in a buoyant margins growth env
Slide 17: Outlook
OUTLOOK Gianbeppi Fortis, CEO 17
Slide 18: Market Key Drivers - FTTH
MARKET KEY DRIVERS - FTTH Belgium 5,0 m households Italy 26,0 m households Germany 41,5 m households UK 27,8 m households 25.8 26.9 30.1 3.9 +31.3% +46.1% 16 +10.0% +26.6% +21.2% +26.7% +21.9% +26.0% 2 11.4 12.4 10.3 11.2 11.1 1 Average 3.5 3.8 0.3 3.5 Annual Growth Homes Passed Homes Connected Home
Slide 19: Market Key Drivers – Energy Transition
MARKET KEY DRIVERS – ENERGY TRANSITION Investment in grids: €584bn EU announced €300bn Smart meters: €45bn FUNDAMENTAL TRENDS of which €170bn in their investment in solar panel EVC: €17bn DRIVING THE NEEDS FOR digitalisation NEW ENERGIES SMALL-SCALE MULTIPLICATION OF TRANSMISSION & CONSUMERS & PRODU
Slide 20: Fast-Growth of the PV Business Segment
FAST-GROWTH OF THE PV BUSINESS SEGMENT, ACCELERATING TRANSITION TO NEW ACTIVITIES IN THE ENERGY SEGMENT New projects win since the beginning of 2023: ▪ € 30+ million, more than doubled compared to 2022 Latest win: ▪ Floating solar power plant Les Îlots Blandin, currently under development in Haute-M
Slide 21: Outlook
OUTLOOK Priority to organic growth and PROFITABILITY operational execution Improvement of EBITDA margin Negotiate price increases with customers REVENUE throughout the year Strict control of operating costs Above €1 bn in 2023 Confirmed normative EBITDA margin at 15% when growth and market Preservat
Slide 22: Questions & Answers
QUESTIONS & ANSWERS BY PHONE PLEASE PRESS * 1 BY WEBCAST PLEASE TYPE IN YOUR QUESTION BY USING THE BUTTON ON THE READER 22
Slide 23: www.solutions30.com
19-21 rue du Puits Romain L-8070 Bertrange Grand Duchy of Luxembourg investor.relations@solutions30.com Solutions 30 is listed on Euronext Paris Mnemo: S30 | Index: SBF120 www.solutions30.com