Slide 1: Half-year 2023 results
Half-year 2023 results 20 September 2023
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENT This presentation contains forward-looking statements (made pursuant to (i) the safe harbour provisions of the Private Securities Litigation Reform Act of 1995 and (ii) the principles of the French Autorité des Marchés Financiers' guide to periodical disclosures
Slide 3: Agenda
Agenda 1 H1 2023 highlights 2 H1 2023 financial and business review 3 FY 2023 outlook 4 Appendix 3 © 2023 Quadient. All rights reserved.
Slide 4: H1 2023 Highlights
H1 2023 HIGHLIGHTS Geoffrey GODET CEO 4 © 2023 Quadient. All rights reserved.
Slide 5: H1 2023 Highlights | Delivering profitable growth
H1 2023 Highlights | Delivering profitable growth €522m outcomes CONSOLIDATED REVENUE +4.2% +8.0% SUBSCRIPTION- CURRENT EBIT(2) RELATED REVENUE ORGANIC(3) ORGANIC GROWTH GROWTH(1) 57% +2.0% REVENUE FROM ORGANIC NORTH REVENUE AMERICA GROWTH(2) 71% €68m SUBSCRIPTION- CURRENT EBIT(2) RELATED REVENUE FY
Slide 6: H1 2023 Highlights | Corporate key events
H1 2023 Highlights | Corporate key events First sustainability-linked loan Bpifrance enters Quadient’s share capital ▪ New €300 million revolving credit facility ▪ Currently holding c.6% with an aim to increase its ▪ ESG criteria based on Quadient CO2 reduction targets shareholding to at least 8% an
Slide 7: Successful development of Quadient's B to B subscription platform
H1 2023 Highlights | Successful development of Quadient’s B to B subscription platform ▪ Cross-sell : Leveraging the existing customer base to sell ▪ Subscription business model drives accelerated recurring services/products from other Solutions revenue organic growth − 2/3 of Software customers − +
Slide 8: H1 2023 Financial and Business Review
H1 2023 FINANCIAL AND BUSINESS REVIEW Geoffrey GODET CEO Laurent du PASSAGE CFO 8 © 2023 Quadient. All rights reserved.
Slide 9: 8.0% organic growth in Group current EBIT in H1 2023
Quadient | 8.0% organic growth in Group current EBIT(1) in H1 2023 +2.0% Revenue breakdown organic change Current EBIT(1) (in €m, % periodic organic change vs. previous year) (in €m) 524 522 524 522 (2) International +1.1% (14.3)% Professional +8.0% 58 49 services 137 132 Licenses & 68 70 (1.4)% 65
Slide 10: Double digit organic growth from the Software Solution
Quadient | Double digit organic growth from the Software Solution H1 2023 revenue bridge (in €m, % of organic change vs. H1 2022) Group reported change: (0.3)% Group organic change: +2.0% (5) +2 (7) 524 +13 (1.4)% +5.5% 522 (5) +11.8% H1 2022 Scope effect(1) Intelligent Mail-Related Parcel Locker Cu
Slide 11: Software & lockers improved profitability drives 8.0% organic growth in current EBIT
Quadient | Software & lockers improved profitability drives 8.0% organic growth in current EBIT(1) H1 2023 current EBIT(1) bridge (in €m, % of organic change vs. H1 2022) Group reported change: +4.3% Group organic(2) change: +8.0% 70 (0) (5) (2) +7 +3 68 65 +0 H1 2022 Scope effect(3) Intelligent Mai
Slide 12: Intelligent Communication Automation | Positive trends gathering momentum
Intelligent Communication Automation | Positive trends gathering momentum Seamless cloud platform user experience e-Invoicing regulation ▪ Rapid adoption of the Quadient Hub with c. 2,500 customers ▪ The law: Obligation for all VAT-registered companies to be already onboarded since launch in April 2
Slide 13: Quadient one of the only two leaders in both AP/AR matrices
Intelligent Communication Automation | Quadient one of the only two leaders in both AP/AR matrices SPARK MatrixTM: Accounts Payable (AP) Application Q2, 2023 SPARK MatrixTM: Accounts Receivable (AR) Application Q2, 2023 Customer Impact Technology Excellence See the 2023 SPARK MatrixTM for Customer C
Slide 14: Intelligent Communication Automation | +7.2pts improvement in current EBIT margin
Intelligent Communication Automation | +7.2pts improvement in current EBIT(1) margin Revenue breakdown +11.8% Current EBIT(1) margin (in €m, % periodic organic change vs. previous year) organic change 120 +7.2pts 108 8 (3.9)% License sales +13.1% organic change 8 16 Professional (17.3)% 20 services
Slide 15: Mail-Related Solutions | Solid penetration of newly launched products
Mail-Related Solutions | Solid penetration of newly launched products NBT Norway IGS Energy Cross-sell Quadient iX-1 ▪ Tailor-made mail production ▪ Combination of Quadient ▪ Postage Meter for small businesses and home offices line to manage rising parcel Impress and the high speed launched in the U
Slide 16: Mail-Related Solutions | Solid H1 outpacing market performance
Mail-Related Solutions | Solid H1 outpacing market performance Revenue breakdown (1.4)% (in €m, % periodic organic change vs. previous year) organic change Current EBIT(1) margin 367 358 -0.8 pt 24.2% 23.0% 23.4% (1.6)% 111 Hardware and organic change 109 (0.9)% license sales 190 181 61 56 (4.8)% Su
Slide 17: Parcel Locker Solutions | Rapid progress in securing future growth
Parcel Locker Solutions | Rapid progress in securing future growth Lockers’ deployment to accelerate in H2 2023 Renewal of joint-venture Packcity Japan ▪ Renewed under an unchanged ownership: 51% Quadient / ▪ Locker installation up +12% year-on-year at the end of H1 2023 49% Yamato Transport − >10,0
Slide 18: Parcel Locker Solutions | Q2 major wins to drive acceleration of open-network development
Parcel Locker Solutions | Q2 major wins to drive acceleration of open-network development A volume-based, user-agnostic subscription business model ▪ Fee per parcel ▪ Fee per parcel / option to rent a drop ▪ Fee per parcel / option to rent a drop ▪ Focus on driving usage in an already at box to mana
Slide 19: Parcel Locker Solutions | Focus on subscription growth and improving operating profitability
Parcel Locker Solutions | Focus on subscription growth and improving operating profitability Revenue breakdown +5.5% (in €m, % periodic organic change vs. previous year) organic change Current EBIT(1) margin 44 45 Professional +6.0pts +2.9% 2 2 +15.7% services organic change Hardware and 16 15 (3.2)
Slide 20: Group level | H1 2023 results summary
Group level | H1 2023 results summary H1 2023 SALES % of organic growth(1) Total Group Intelligent Mail-Related Parcel €295m North America Communication Solutions Locker +4.4% Automation Solutions Main European €178m countries (1.6)% €49m International +1.1% €120m €358m €45m €522m +11.8% (1.4)% +5.5
Slide 21: P&L | c.24% increase in Net Income
P&L | c.24% increase in Net Income In € million H1 2022 H1 2023 Current operating income 65 68 (before acquisition-related expenses) Current operating margin Includes a €2.3m IFRIC impact. Excluding IFRIC, margin increased to 13.5% (before acquisition-related expenses) 12.5% 13.0% Acquisition-relate
Slide 22: Cash flow | H1 2023 cash flow y-o-y comparison impacted by normalization of taxes paid
Cash flow | H1 2023 cash flow y-o-y comparison impacted by normalization of taxes paid In € million H1 2022 H1 2023 EBITDA 111 112 EBITDA margin (%) 21.3% 21.5% Slight increase in EBITDA margin Other items (5) (7) Mostly restructuring costs Cash flow (1) 107 105 Unfavorable seasonality of working ca
Slide 23: CAPEX | Rising rented equipment capex underlines strong business momentum
CAPEX | Rising rented equipment capex underlines strong business momentum CAPEX mix (€m) 46 44 13 17 €2 million increase in capex level vs H1 2022 19 ▪ Rising rented equipment capex driven by: 17 i. Higher activity level for parcel lockers from both ongoing 6 open-networks and contracts deployments
Slide 24: Financial structure | Leverage excl. leasing stable at 1.8x
Financial structure | Leverage excl. leasing stable at 1.8x thanks to strict financial discipline NET FINANCIAL DEBT AND LEVERAGE RATIOS EVOLUTION ▪ 2022 net debt increased by €14 million (2019-2023, in €m and ratio of Net Debt/ EBITDA) for accounting corrections related to the ongoing investigation
Slide 25: Financial structure | Solid financial structure with no major refinancing before 2025
Financial structure | Solid financial structure with no major refinancing before 2025 H1 2023 continued active debt management Financial debt maturities as at 31st of July 2023 ▪ February & May 2023: repayment at maturity of €58m of Schuldschein 300 ▪ June 2023: Stimulus Participating Loan of € 90m
Slide 26: Outlook
OUTLOOK © Quadient 26
Slide 27: Guidance | FY 2023 guidance and 2021-23 outlook confirmed
Guidance | FY 2023 guidance and 2021-23 outlook confirmed 2023 guidance c.3% organic sales growth in FY 2023 vs. FY 2022 Revenue growth 2021-2023 outlook Minimum 3% organic sales CAGR over 2021-23 2023 guidance c.10% organic current EBIT(1) growth in FY 2023 vs. FY 2022 Current EBIT(1) growth 2021-2
Slide 28: Appendix
APPENDIX © Quadient 28
Slide 29: Group level | Q2 2023 revenue summary
Group level | Q2 2023 revenue summary Q2 2023 SALES % of organic growth(1) Total Group Intelligent Mail-Related Parcel €150m North America Communication Solutions Locker +3.0% Automation Solutions Main European €92m countries +0.6% €25m International (0.5)% €61m €181m €24m €266m +13.1% (1.6)% +2.9%
Slide 30: Group level | Q2 2023 revenue bridge
Group level | Q2 2023 revenue bridge Q2 2023 revenue bridge (in €m, % of organic change vs. Q2 2022) Group reported change: (1.8)% Group organic change: +1.8% (3) +1 +7 271 (1.6)% +2.9% (2) (8) +13.1% 266 Q2 2022 Scope effect(1) Intelligent Mail-Related Parcel Locker Currency effect(2) Q2 2023 Commu
Slide 31: Accelerated organic growth in subscription-related revenue in Q2 2023
Group level | Accelerated organic growth in subscription-related revenue in Q2 2023 Quarterly revenue by type In million euros, % of subscription-related revenue +1.8%(1) 288 Organic change vs Q2 2022 273 271 270 266 257 253 256 246 248 (10.2)% Professional services 85 79 79 62 75 70 63 69 (4.7)% Li
Slide 32: Continued solid organic growth in North America in Q2 2023
Group level | Continued solid organic growth in North America in Q2 2023 Quarterly revenue by geography In million euros, % of revenue from North America +1.8%(1) 288 Organic change vs Q2 2022 273 271 270 266 257 253 256 246 248 (0.5)% International 90 101 99 90 86 92 +0.6% Main European Countries 9
Slide 33: H1 2023 Financial statements | P&L
H1 2023 Financial statements | P&L (in € millions) 31/07/2022 31/07/2023 Sales 524 522 Cost of sales (139) (133) Gross margin 385 389 R&D expenses (28) (31) Sales and marketing expenses (146) (140) Administrative and general expenses (92) (91) Service and support expenses (53) (56) Employee profit-s
Slide 34: H1 2023 Financial statements | Consolidated balance sheet (1/2)
H1 2023 Financial statements | Consolidated balance sheet (1/2) 31/01/2023 31/07/2023 Assets (in € millions) Restated Goodwill 1,080 1,073 Intangible fixed assets 125 124 Tangible fixed assets 151 149 Non-current financial assets 80 80 Other non-current receivables 5 5 Leasing & financing receivable
Slide 35: H1 2023 Financial statements | Consolidated balance sheet (2/2)
H1 2023 Financial statements | Consolidated balance sheet (2/2) 31/01/2023 31/07/2023 Liabilities (in € millions) Restated Shareholders’ equity 1,052 1,067 Non-current provisions 13 13 Non-current financial debt 730 776 Current financial debt 114 92 Lease Obligations 50 48 Other non-current debt 3 1
Slide 36: H1 2023 Financial structure | All financial covenants easily met
H1 2023 Financial structure | All financial covenants easily met Schuldschein 2019, 2020 & 2021 and Revolving Credit Facility (excluding IFRS 16) 31 January 2023 31 January 2023 31 July 2023 restated Intercompany net leasing Intercompany net leasing Intercompany net leasing Covenants on Maximum draw
Slide 37: Intelligent Communication Automation | H1 2023 Solution KPIs
Intelligent Communication Automation | H1 2023 Solution KPIs SHARE OF SAAS/SUBSCRIPTION ANNUAL RECURRING REVENUE SHARE OF CUSTOMERS (ARR) SUBSCRIPTION-RELATED REVENUE Definition Number of SaaS/Subs customers Annualized revenue from subscription- Subscription-related revenue over total number of cust
Slide 38: Mail-Related Solutions | H1 2023 Solution KPIs
Mail-Related Solutions | H1 2023 Solution KPIs SHARE OF SHARE OF RESILIENCE INDEX (1) UPGRADED INSTALLED BASE SUBSCRIPTION-RELATED REVENUE Definition Share of new generation smart devices Spread between supplies revenue evolution Subscription-related revenue among total number of devices in the and
Slide 39: Parcel Locker Solutions | H1 2023 Solution KPIs
Parcel Locker Solutions | H1 2023 Solution KPIs INSTALLED BASE USAGE RATE SUBSCRIPTION-RELATED REVENUE Definition Number of lockers installed (Number of parcels in the locker at the Subscription-related revenue beginning of the day + number of parcels delivered during the day) / number of Monitoring
Slide 40: CSR | Quadient recognized as an ESG leader, on track to achieve its 2023 goals
CSR | Quadient recognized as an ESG leader, on track to achieve its 2023 goals PILLARS PEOPLE ENVIRONMENT SOLUTIONS ETHICS AND COMPLIANCE PHILANTHROPY Focus on inclusion Focus on reduction of waste Focus on customers Focus on ethical Focus on the Quadient Care and carbon footprint behavior philanthr
Slide 41: Intelligent Communication Automation | A comprehensive and unified SaaS platform
Intelligent Communication Automation | A comprehensive and unified SaaS platform The Quadient Hub: Recent developments: • First version of new • New advanced AI-based cash integrated platform application for Accounts released in April 2023 Receivable customers • >2,500 cloud customers • iForms alrea
Slide 42: Intelligent Communication Automation | Continuous progress on external recognitions
Intelligent Communication Automation | Continuous progress on external recognitions Named as a leader in the 2023 SPARK MatrixTM for Customer Quadient enters the selective “Invoice to cash” Gartner® Magic Communication Management QuadrantTM in 2023 ▪ Only 9 firms ranked out of 20 surveyed within a m
Slide 43: Capital Allocation | Executing the 2021-23 capital allocation policy
Capital Allocation | Executing the 2021-23 capital allocation policy DELEVERAGE PORTFOLIO MANAGEMENT Maintain a healthy, yet efficient balance sheet by Regularly assess if we should divest (or spin-off) bringing down leverage excl. leasing(1) below 1.75x assets, no “sacred cows”, and redeploy the ca
Slide 44: Contact
Contact financial-communication@quadient.com Website https://invest.quadient.com/ Next events 29 November 2023: Q3 2023 Sales - 16 June 2023: Annual General Meeting - 20 September 2023: H1 2023 results Quadient is listed in compartment B of Euronext Paris (QDT) and is part of the CAC® Mid & Small an