Solutions 30 Se · EURONEXT:S30

Solutions 30 — FY2021 Earnings Presentation

45 slides from Solutions 30's earnings presentation, May 2022

  1. Slide 1: Investors Presentation

    INVESTORS PRESENTATION Including 2021 FY results and 2022 Q1 revenue

  2. 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

  3. Slide 3: Introduction to Solutions 30

    INTRODUCTION TO SOLUTIONS 30

  4. Slide 4: Outsourcing Multitechnical Field Services

    OUTSOURCING MULTITECHNICAL FIELD SERVICES Solutions 30 is an integrated We accelerate the transition services company which to digital by delivering “last aims at making digital mile” solutions, including technologies easily connected equipment accessible to everyone. deployment and assistance. We p

  5. Slide 5: A History of High Growth

    A HISTORY OF HIGH GROWTH 75,000 15,000 personnel call-outs per day Recurring activities in 2021 57% €874.0m Average annual growth since 2007 +27% 819.3 691.4 +40% CAGR since 2015 451.8 274.5 9.4% 2003 191.6 In €m 2021 EBITDA Creation Date 77.2 95.0 111.5 125.1 margin 54.7 63.3 30.1 36.2 44.9 2007 20

  6. Slide 6: The European Leader in Last Digital Mile Services

    THE EUROPEAN LEADER IN LAST DIGITAL MILE SERVICES A EUROPEAN FOOTPRINT 6 VERTICALS Germany 7% TELECOM ENERGY IT UK 75% of revenue 13% of revenue 8% of revenue 3% Poland Installation and Installation and maintenance ofsmart Installation and 3% maintenance of DSL, meters, EV chargers maintenance of IT

  7. Slide 7: Our Client Needs, Our Purpose, Our Challenge

    OUR CLIENT NEEDS OUR PURPOSE OUR CHALLENGE Outsourcing of a critical Delivering field services Maintain a profitable, but non-core business better, faster and efficient and scalable to a trusted partner smarter in a fast-changing organisational structure world with a constant and sustainable quality

  8. Slide 8: Efficient Business Model

    SOLUTIONS 30 RELIES ON 3 PILLARS FOR A SCALABLE AND EFFICIENT BUSINESS MODEL VOLUME AUTOMATION DENSITY PROFITABILITY  Securing high-volume  Automating repetitive and  Sharing skills and technical  Planning optimization contracts through multi-year time-consuming tasks to resources partnerships w

  9. Slide 9: A Fully Automated IT Platform

    A FULLY AUTOMATED IT PLATFORM Customer’s CRM End customers S30.net Ticket Feedback Physical intervention Individuals & Businesses Planning/ Remote Logistics Dispatching support Tickets managed in the month OK to invoice ERP S30.net Invoice Payment 60-90 days 9

  10. Slide 10: An Established Portfolio of Loyal Clients

    AN ESTABLISHED PORTFOLIO OF LOYAL CLIENTS TELECOMS ENERGIE IT RETAIL SECURITE IoT CONFIDENTIEL 10

  11. Slide 11: Strategy Prioritises Growth

    STRATEGY PRIORITISES GROWTH TO REACH DOMINATING POSITION IN ALL THE GEOGRAPHIES # 1 SECTOR DIVERSIFICATION # 2 GEOGRAPHICAL DIVERSIFICATION From IT to energy: supporting the digitisation of the A strategy of selective geographical expansion: economy in all sectors accessibility, market structure, g

  12. Slide 12: 2021 Key Facts

    2021 KEY FACTS Solutions30 Solutions for New Technologies

  13. Slide 13: Key Highlights

    KEY HIGHLIGHTS FRANCE BENELUX OTHER COUNTRIES  France has driven growth since the creation  Booming markets compensating  Booming markets. Focus on telecom of the Group and enabled it to build strong consequences of the pandemic businesses and EVC financial and business positions  Ramp-up of new

  14. Slide 14: 2021 Key Facts

    2021 KEY FACTS Italy Benelux Spain Benelux France €210m Launch of €80m FTTH €50m contract smart meters contract contracts wins signed deployments signed signed overseas Q1 Q2 Q3 Q4 Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. UK Acquisition of assets of Mono Unfounded and Disclaimer

  15. Slide 15: 2021 Financial Results

    2021 FINANCIAL RESULTS

  16. Slide 16: 2021 Accounts Present Fairly the Group's Financial Performance

    2021 ACCOUNTS PRESENT FAIRLY, IN ALL MATERIAL ASPECTS, THE GROUP’S FINANCIAL PERFORMANCE In-depth due diligence on the opening balance sheet  Review and analysis of the results of the independent investigations carried out by Deloitte and Didier Kling Expertises & Conseil in the first half of 2021.

  17. Slide 17: FY2021 Revenue: +6.7% (+3.6% organic)

    FY2021 REVENUE: +6.7% (+3.6% organic) + € 182.6m | +26.4% vs 2019 + € 54.7m | +6.7% vs 2020 Organic growth*: € 29.1m (+3.6%) External Growth: €25.6m (+3.1%) Dec. 2020: Brabamij 691.4 November 2020 : Algor December 2020: Comvergent November 2021: Mono Consultants FY 2019 * Including organic growth fr

  18. Slide 18: Ramp-ups of New Contracts

    RAMP-UPS OF NEW CONTRACTS Phase 01 Phase 02 Phase 03 Phase 04 Phase 05 Preparation of organisation Sourcing of technicians, Ramp-up and learning curve Industrialisation of process and Operational transition from recruitment and training reach of optimum profitability deployment to maintenance Creati

  19. Slide 19: Adjusted EBITDA Margin of 9.4%

    ADJUSTED EBITDA MARGIN OF 9.4% € millions FY 2021 FY 2020 Change Pressure on margins and decline in EBITDA due to: Revenue 874.0 819.3 +6.7%  Lower absorption of fixed costs by lower revenue in France Operational costs 710.3 632.3 +12.3%  Change in the geographical mix As % of turnover 81.3% 77.2%

  20. Slide 20: Adjusted EBITDA per Geography

    ADJUSTED EBITDA PER GEOGRAPHY FRANCE BENELUX OTHER COUNTRIES €522.7m €507.3m €160.4m €206.3m €136.3m €160.2m €86.6m €66.4m €21.4m €22.9m 16.6% 13.1% 15.7% 14.3% €7.6m €2.2m Adj. EBITDA 4.8% 1.1% Revenue 2020 2021 2020 2021 2020 2021 Combined adverse effects of (i) Fast ramp-up of smart-meters Ramp-u

  21. Slide 21: Net Income (Group Share) of 2.5%

    NET INCOME (GROUP SHARE) OF 2.5% € millions FY 2021 FY 2020 Change Adjusted EBIT 40.8 60.9 -32.9% Amortisation of intangibles -14.7 -13.0 Increase in non-recurring items Financial result 4.2 -4.1  €7.1m of exceptional expenses linked to the Non-recurring items -13.2 0.4 defamation campaign against

  22. Slide 22: Solid Financial Structure

    SOLID FINANCIAL STRUCTURE Net bank cash €59.2m Net bank cash €52.3m Net gross debt €28.9m Net gross debt €33.1m Fixed assets Fixed assets 229.4 Equity 170.0 Equity 191.6 230.1 Provisions 55.5 Provisions 46.8 Leasing Debt (IFRS16) 63.5 Rights of use (IFRS 16) 67.0 Debt on future earn outs & Leasing D

  23. Slide 23: FY2021 Cash Generation

    FY2021 CASH GENERATION Free cash-flow: €32.4m (1) (1) Change in WC excludes non-cash items 23 These figures have been rounded to the nearest whole number or the nearest decimal. Therefore, the sum of the numbers may not conform exactly to the total figure or to 100%.

  24. Slide 24: 2021 Key Achievements

    2021 KEY ACHIEVEMENTS Financial flexibility confirmed A solid financial structure Normalisation allowing operational transition where in adequation with the start of the new of the situation with auditors needed and absorption of ramp-ups in growth phase expected in H2 2022 all countries

  25. Slide 25: Q1 2022 Revenue

    Q1 2022 REVENUE

  26. Slide 26: Q1 2022 Revenue: -1.1% (-3% organic)

    Q1 2022 REVENUE: -1.1% (-3% organic) - € 2.5m Purely organic change: € -6.7 (-3%) External Growth: €4.3m (+1.9%) 189.3 November 2021: Mono Consultants January 2022: Sirtel In millions of euros These figures have been rounded to the nearest whole number or the nearest decimal. Therefore, the sum of t

  27. Slide 27: Sequential Growth in Q1 2022

    SEQUENTIAL GROWTH IN Q1 2022 Market adjustments consecutive to Covid 2020 2021 €819.3m (+18%) 874.0 (+6.7%) 2019 240.7 €691.4m (+51%) 225.2 220.6 222.7 213.6 216 2018 212.1 201.2 €458.5m (+51%) 189.3 175.7 168.8 161.5 159.9 150.7 118.6 93.7 95.5 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 201

  28. Slide 28: Double Digit Growth Outside France Does Not Compensate Drop in France

    DOUBLE DIGIT GROWTH OUTSIDE FRANCE DOES NOT COMPENSATE THE ONE-OFF DROP IN FRANCE LINKED TO MARKET MATURITY AND DIFFICULTIES IN SUPPLY CHAIN 225.2 222.7 Other countries +28.4% 46.1 (+19.1% organic) 59.3 37% 48% 37.0 Benelux +26.3% 46.7 142.1 France -17.8% 116.7 Q1 2021 Q1 2022 In millions of euros T

  29. Slide 29: France

    FRANCE Q1 2022 Revenue €116.7m (-17.8%) TELECOM 72% of France revenue IT 10% of France revenue 103.2 11.9 11.0 +9% -18% 84.5 2021 2022 2021 2022 ENERGY 14% of France revenue OTHERS 4% of France revenue 23.3 -32% 4.6 -5% 4.4 15.9 3.9 In millions of euros 2021 2022 2021 2022 These figures have been ro

  30. Slide 30: Benelux

    BENELUX Q1 2022 Revenue €46.7m (+26.3%) TELECOM 71% of Benelux revenue IT 5% of Benelux revenue +14% 33.0 28.9 2.4 -6% 2.3 2021 2022 2021 2022 ENERGY 20% of Benelux revenue OTHERS 4% of Benelux revenue 9.6 1.8 1.9 +7% +143% 3.9 In millions of euros 2021 2022 2021 2022 These figures have been rounded

  31. Slide 31: Other Countries

    OTHER COUNTRIES Q1 2022 Revenue GERMANY ITALY 24% of OC revenue 25% of OC revenue €59.3m 16.3 14.5 +29.0% (+19.1% organic) 14.4 +67% -11% 8.7 2021 2022 2021 2022 IBERIA POLAND UK 25% of OC revenue 11% of OC revenue 15% of OC revenue 9.0 6.6 14.5 5.6 11.7 +24% +129% +19% 3.9 In millions of euros +23%

  32. Slide 32: Empowering S30 as a New Growth Phase Is Arising

    EMPOWERING S30 AS A NEW GROWTH PHASE IS ARISING

  33. Slide 33: Strengthening Governance, Risk & Compliance (GRC)

    STRENGTHENING GOVERNANCE, RISK & COMPLIANCE (GRC) Partners selection Project kick-out Analysis of exsting Gap analysis compared to the AML processes regulations & identification of areas of improvement 2021 AVR MAI JUIN JUIL AOÛT SEPT OCT NOV DÉC 2022 JANV FÉVR MARS AVR MAI JUIN JUIL AOÛT SEP OCT NO

  34. Slide 34: Harmonised GRC System

    HARMONISED GRC SYSTEM • Preparation of an Internal Audit Manual • Updated Code of Conduct and Business Partner CoC • Preparation of Anti-Co Policy • Communication and Training Concept • Implementation of a Whistleblower System • Definition of a Sanctioning Process • Updated Whistleblower Policy • Dr

  35. Slide 35: Corporate Social Responsibility

    CORPORATE SOCIAL RESPONSIBILITY OUR MISSION OUR COMMITTMENT TO OUR COMMITMENT TO OUR COMMITTMENT TO YOUTH EMPLOYMENT TRAINING GOOD HEALTH AND WELLBEING By making the technological The strong growth dynamic To support its growth and Solutions 30 always strives for innovations that are changing our en

  36. Slide 36: A New Chapter of Growth

    A NEW CHAPTER OF GROWTH

  37. Slide 37: Reaching the Critical Size in All Countries

    2022-26 KEY CHALLENGE REACHING THE CRITICAL SIZE IN ALL COUNTRIES STEP 1 STEP 2 STEP 3 Revenue < €100m € 100m < Revenue < €200m Revenue > €200m Low to mid High single digit Double single digit to double digit digit margin margin margin FRANCE BENELUX ITALY SPAIN GERMANY POLAND UK 37

  38. Slide 38: Market Key Drivers - FTTH

    MARKET KEY DRIVERS - FTTH  44% of all European households can connect to KEY SELLING POINTS fibre but the state of FTTH rollout differs widely from country to country.  Experience in France  Germany, Belgium, the Netherlands, the UK lag  Proven ability to achieve in rolling out FTTH fast ramp-up

  39. Slide 39: Market Key Drivers – EV Charging Stations

    MARKET KEY DRIVERS – EV CHARGING STATIONS KEY SELLING POINTS  Public chargers represent 8% of the total number of chargers, while work and home chargers represent 90% of the network.  Availability of a fully trained workforce  By 2035, 110+ millions of chargers are expected to be installed  High

  40. Slide 40: Market Key Drivers – Solar Panels

    MARKET KEY DRIVERS – SOLAR PANELS CAGR  Currently 90% of European rooftops are +16% +20% +23% +21% +24% +7% +44% +12% 2020-25 unused. KEY SELLING POINTS 107.6  Fitting this space with solar offers the potential to save up to 7 million tons of CO2 each year, producing at least 680  Proven ability

  41. Slide 41: 2022 Outlook

    2022 OUTLOOK EBITDA margin stabilisation in France and priority to growth Return to double digit and ramp-ups growth in H2 2022 defending margins as Negociate price after H1 2022 in line best as possible increases with with H2 2021 elsewhere customers Continue bolt-on M&A 41

  42. Slide 42: Key Takeaways

    KEY TAKEAWAYS  A strengthened organisation with harmonised processes for sustained growth  Markets growth driven by digital transformation and energy transition  Stimulus plans boost market growth in every region  Positioned to capture new market share and replicate growth observed in France in

  43. Slide 43: Questions & Answers

    QUESTIONS & ANSWERS BY PHONE PLEASE PRESS * 1 BY WEBCAST PLEASE TYPE IN YOUR QUESTION BY USING THE BUTTON ON THE READER 43

  44. Slide 44: Agenda and Contact

    AGENDA Q2 revenue, 2022 | 27 July 2022 Half-year results, 2022 | 28 September 2022 Q3 revenue, 2022 | 27 October 2022 CONTACT Solutions 30 | 3 rue de la Reine | L-2418 Luxembourg investor.relations@solutions30.com | Tel.: +352 (2) 837 1389 www.solutions30.com Two decades serving digital deployment i

  45. Slide 45: 2021-2022 Changes in Scope of Consolidation

    2021-2022 CHANGES IN SCOPE OF CONSOLIDATION COMPANY COUNTRY DATE OF FY REVENUE AT TIME COMMENT CONSOLIDATION OF ACQUISITION Algor Italy (60%) 1 Nov 2020 €4m 5G market penetration Comvergent UK 1 Dec 2020 €17.5m New geography and 5G expertise Brabamij Belgium 1 Dec 2020 €6m Complementary expertise in

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