Slide 1: Full-year 2023 results
Full-year 2023 results 25 March 2024
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 FY 2023 highlights 2 FY 2023 financial and business review 3 2021-2023 strategic plan achievements 4 FY 2024 outlook 5 Appendix 3 © 2024 Quadient. All rights reserved.
Slide 4: FY 2023 Highlights
FY 2023 HIGHLIGHTS Geoffrey GODET CEO 4 © 2024 Quadient. All rights reserved.
Slide 5: FY 2023 Highlights | Accelerated current EBIT organic growth
FY 2023 Highlights | Accelerated current EBIT(1) organic growth Third year of consecutive dividend increase €1,062m outcomes CONSOLIDATED REVENUE 70% €157m SUBSCRIPTION- CURRENT RELATED EBIT(1) REVENUE 57% +1.9% REVENUE FROM ORGANIC NORTH REVENUE AMERICA GROWTH +3.4% +9.3% SUBSCRIPTION- CURRENT EBIT
Slide 6: FY 2023 Highlights | Solid delivery of 2021-23 strategic plan
FY 2023 Highlights | Solid delivery of 2021-23 strategic plan Revenue Current EBIT(1) Achieved: Achieved: ➢ +1.9% organic growth in FY 2023 vs. FY 2022 ➢ +9.3% organic growth in FY 2023 vs. FY 2022 2023 Guidance (revised in November 2023): Guidance (set in March 2023): ➢ c.2% organic growth ➢ c.10%
Slide 7: Governance | Board evolution in line with recent changes in capital structure
Governance | Board evolution in line with recent changes in Quadient capital structure As of 31 January 2024 Shareholders owning more than 3% of Quadient’s capital Bpifrance shareholding Management, directors and employees (0.94%) ▪ Co-option of Bpifrance Investissement as an Treasury shares (0.24%)
Slide 8: FY 2023 Financial and Business Review
FY 2023 FINANCIAL AND BUSINESS REVIEW Geoffrey GODET CEO Laurent du PASSAGE CFO 8 © 2024 Quadient. All rights reserved.
Slide 9: Quadient | 9.3% of organic increase in current EBIT
Quadient | 9.3% of organic increase in current EBIT(1) delivering on Quadient strategic choices Revenue breakdown Current EBIT(1) (in €m, % organic change) (in €m) +1.9% organic growth +9.3% organic growth in FY 2023 vs FY 2022 in FY 2023 vs FY 2022 1,071 1,062 1,071 1,062 (12.5)% Professional +1.9%
Slide 10: Quadient | Solid Software growth; another strong performance in Mail
Quadient | Solid Software growth; another strong performance in Mail FY 2023 revenue bridge (in €m, % of organic change) Reported change: (0.8)% Organic change: +1.9% (2) 1 (0.2)% +1.6% 20 (25) 1,071 (4) +9.0% 1,062 FY 2022 Scope Intelligent Mail-Related Parcel Locker Currency FY 2023 effect(1) Comm
Slide 11: Quadient | Solid organic growth in current EBIT driven by Software & Lockers
Quadient | Solid organic growth in current EBIT(1) driven by Software & Lockers improved performance FY 2023 Current EBIT(1) bridge (in €m, % of organic change) Reported change: +4.4% Organic change: +9.3% (6) +6 (5) 157 +14 151 (2) FY 2022 Scope Intelligent Mail-Related Parcel Locker Currency FY 20
Slide 12: Intelligent Communication Automation | Positive trends gathering momentum
Intelligent Communication Automation | Positive trends gathering momentum Successful onboarding onto the Quadient Hub New integrations & partnerships ▪ 4,000+ customers now fully ▪ Sage Tech Partner Plus status for Quadient onboarded onto the Quadient financial automation modules (early 2024) Hub si
Slide 13: Intelligent Communication Automation | Leader position confirmed in external rankings
Intelligent Communication Automation | Leader position confirmed in the latest external rankings Top ratings for Technology Excellence and Customer Impact Lead in overall strategic direction with leadership position on three key market grids “With a strong emphasis on AI-driven analytics and continu
Slide 14: Intelligent Communication Automation | Operating profitability milestone achieved
Intelligent Communication Automation | Operating profitability milestone achieved in FY 2023 Improvement in profitability expected to continue in FY 2024 Revenue breakdown +9.0% Current EBIT(1) margin (in €m, % periodic organic change) organic change 245 +4.8pts 227 7% (8.4)% License sales 8% Profes
Slide 15: Mail-Related Solutions | Another positive year for product placements
Mail-Related Solutions | Another positive year for product placements Maryland State Department Multiple customer wins Up-sell & Cross-sell of Education in the growing Healthcare industry in the USA ▪ Combining Quadient iX mail processing equipment with Impress document automation cloud platform ▪ A
Slide 16: Mail-Related Solutions | Another strong organic performance
Mail-Related Solutions | Another strong organic performance Revenue breakdown (0.2)% organic change Current EBIT(1) margin (in €m, % periodic organic change) 747 729 (0.7) pt 31% Hardware and +25.0% +24.3% 32% +2.1% license sales +0.3% organic change Subscription- 199 196 69% 68% (1.3)% related reve
Slide 17: Parcel Locker Solutions | FY 2023, a transition year for lockers' business model
Parcel Locker Solutions | FY 2023, a transition year for lockers’ business model Strong relationships with carriers Solid deployment rate: drive lockers expansion +16% CAGR over the 21-23 period 24 20.2 20.2 20 18.0 15.8 16 13.0 12 10.0 7.0 Installed base 95% 8 in ‘000 customer 4 ▪ Open network stra
Slide 18: Parcel Locker Solutions | Change in business model weighing on organic growth
Parcel Locker Solutions | Change in business model temporarily weighing on organic growth Revenue breakdown Current EBIT(1) margin (in €m, % periodic organic change) +1.6% organic change 91 88 Professional +25.8% +4.4pts services 36% 34% Hardware and (7.5)% (4.8)% license sales organic change 25 Sub
Slide 19: FY 2023 results summary | Strong improvement in current EBIT
FY 2023 results summary | Strong improvement in current EBIT(1) Intelligent Mail-Related Parcel Total Group Communication Solutions Locker Automation Solutions €607m North America +4.5% Main European €353m countries (2.4)% €101m International +1.9% Sales €1,062m €245m €729m €88m Organic change(2) +1
Slide 20: P&L | Solid net income level
P&L | Solid net income level In € million FY 2022 FY 2023 Current operating income 151 157 Solid performance, increasing for the third consecutive year (before acquisition-related expenses) Current operating margin 14.1% 14.8% (before acquisition-related expenses) Acquisition-related expenses (10) (
Slide 21: Cash flow | Solid free cash flow despite higher capex
Cash flow | Solid free cash flow despite higher capex and adverse variations in tax and lease receivables In € million FY 2022 FY 2023 EBITDA 240 244 EBITDA margin (%) 22.4% 23.0% Other items (17) (19) Mostly restructuring costs Cash flow (1) 223 225 FY2022 impacted by high lockers & mail inventorie
Slide 22: CAPEX | Higher capex to support open network expansion and mail placements
CAPEX | Higher capex to support open network expansion and solid mail placements CAPEX mix (€m) 101 87 30 44 ▪ Rising equipment capex reflects: i. Focus on lockers open-networks deployment 36 33 ii. Solid performance in Mail product placements 13 10 ▪ Normalization of development capex after higher
Slide 23: Financial structure | 1.75x leverage target exceeded, at 1.65x
Financial structure | 1.75x leverage target exceeded thanks to strict financial discipline, at 1.65x NET FINANCIAL DEBT AND LEVERAGE RATIOS EVOLUTION (2019-2023, in €m and ratio of Net Debt/ EBITDA) 1,750 3.3 3.5 3.2 3.1 3.0 Consolidated 2.9 3.0 ▪ Delivering a below target leverage 1,500 leverage ra
Slide 24: Financial structure | Strong liquidity position to face 2025 maturity
Financial structure | Solid financial structure with a strong liquidity position to face 2025 maturity FY 2023 continued active debt management Financial debt maturities as at 31st of January 2024 ▪ February & May 2023: repayment at maturity of €58m of Schuldschein 300 ▪ June 2023: Stimulus Particip
Slide 25: Capital Allocation | Proposed dividend of €0.65 per share
Capital Allocation | Proposed dividend of €0.65 per share, up 8% y-o-y (1) FY 2023 dividend proposal(1) is in line with Group’s policy to maintain a minimum 20% net income payout, with a €0.50 DPS floor Payment in cash, in one instalment on 7 August 2024 Dividend per share (FY18-23, in € per share)
Slide 26: 2021-2023 Strategic Plan Achievements
2021-2023 STRATEGIC PLAN ACHIEVEMENTS Geoffrey GODET CEO 26 © 2024 Quadient. All rights reserved.
Slide 27: Phase I & II | FY 2023 results close the Back to Growth strategy
Phase I & II| FY 2023 results close the Back to Growth strategy Phase I: “Transform” Phase II: “Drive Sustainable Value” 2019-2020 2021-2023 Set up a sustainable value creation Complete portfolio rotation 1 business model based on an 1 and build upon the established integrated strategy leadership po
Slide 28: Phase I & II | Portfolio rotation completed
Phase I & II | Portfolio rotation completed while consolidating leadership positions Bolt-on acquisitions Divestments Data Quality 2019 PLS: Parcel Pending to scale US business Shipping Software Phase I 2020 ICA Software: Accounts Receivable (AR) (Shut down) Graphics business in Australia 2021 Autom
Slide 29: Phase I & II | Innovative B to B subscription platform
Phase I & II | Innovative B to B subscription platform Powering billions of business transactions everyday Subscription based Leading Solutions business model in their markets 70% of total revenue in FY 2023 ICA: Recognized leader for digital solutions driving highly yoy recurring revenue MRS: #1 in
Slide 30: Phase I & II | Subscription-related revenue growth drives inflexion point in current EBIT
Phase I & II | Attractive subscription-related revenue growth drive inflexion point in current EBIT(1) Revenue organic growth (%) Current EBIT(1) (€m) Organic growth in FY 2023 at +9.3% vs. FY 2022 234 +4.3% 216 +3.1% +3.4% 202 199 185 +1.6% +0.2% +2.7% 152 147 151 157 +1.4% +1.9% (1.8)% (2.1)% (2.2
Slide 31: Phase II | Sound execution of the 2021-23 capital allocation policy
Phase II | Sound execution of the 2021-23 capital allocation policy DELEVERAGE(1,2) PORTFOLIO MANAGEMENT Leverage incl. 3.2 3.1 3.5 leasing 3.0 2.9 Bolt-on acquisitions to complement the 3.0 Software suite Leverage excl. 2.1 2.5 2.0 1.8 leasing 2.0 Reshaping of Additional Operations 1.75x target 1.6
Slide 32: Phase II | Intelligent Communication Automation | Transition to SaaS completed
Phase II | Intelligent Communication Automation | Transition to SaaS completed 17% recurring revenue organic Strong organic growth in ARR 2021-23 CAGR vs estimated Creation of a powerful cloud hub Break even in current EBIT(2) total market growth of 12%(1) Subscription-related revenue ▪ A complete a
Slide 33: Phase II | Intelligent Communication Automation | Market share gain
Phase II| Intelligent Communication Automation | Market share gain in all chosen segments IDC Customer Communication Management Financial Automation market share evolution reported revenue evolution (2020 - 2022, $M) (2019-2023, indexed on 2019 revenues) $1.2B 1.000 2020 22.2% 13.9% 7.9% 5.9% 5.4% 4
Slide 34: Phase II | Mail-Related Solutions | Outperforming expectations
Phase II | Mail-Related Solutions | Outperforming expectations Innovation as a driver of Solid organic performance Core to the integrated strategy product placement outpacing market growth(1) Share of upgraded Installed base ▪ Unique opportunity to leverage the large Delivering organic Mail customer
Slide 35: Phase II | Parcel Locker Solutions | Building the open-network leader
Phase II | Parcel Locker Solutions | Building the open-network leader(1) Rapid installed base deployment Building a highly recurring and Strategic focus directed towards open outpacing market growth(1) profitable installed base networks to drive higher return per locker Lockers deployment ▪ Undisput
Slide 36: ESG | Solid delivery against ambitious objectives
ESG | Solid delivery against ambitious objectives People Ethics & Compliance Environment Solutions Philanthropy Empower our people to achieve Enable a culture of Protect the planet by reducing Offer innovative, secure and Engage and support the our company strategy excellence & integrity our environ
Slide 37: ESG | Engagements highly recognized by ESG agency ratings
ESG | Quadient engagements continue to be highly recognized by ESG agency ratings Formerly Vigeo Eiris As a signatory member to the UN Global Compact, Quadient Rating 6.6 Platinum is committed to take actions to AA B- 52% B specifically support the following FY2023 (Negligible ESG risk) (79/100) Sus
Slide 38: Outlook
OUTLOOK © Quadient 38
Slide 39: Outlook | Positive start to 2024 with two significant deals announced
Outlook| Positive start to 2024 with two significant deals announced Acquisition of Frama Royal Mail joins Quadient’s UK open network ▪ Acquisition finalized on 1st February 2024 ▪ Royal Mail to start using Quadient UK open network as soon as May 2024 ▪ 30,000 additional customers, mostly positioned
Slide 40: Outlook | Solid commercial trends support positive outlook
Outlook | Solid commercial trends supports positive outlook FY 2024 Organic growth expected at both the Group revenue and current EBIT(1) level guidance 2024-2026 Quadient strategic update to be shared during a CMD on 19 June 2024 outlook 40 (1) Current operating income before acquisition-related ex
Slide 41: Appendix
APPENDIX © Quadient 41
Slide 42: Group level | Q4 2023 revenue bridge
Group level | Q4 2023 revenue bridge Q4 2023 revenue bridge (in €m, % of organic change) Reported change: (0.3)% Organic change: +1.4% +1 (1) +0.3% (4.8)% +4 (6) 285 +1 +7.2% 284 Q4 2022 Scope effect(1) Intelligent Mail-Related Parcel Locker Currency effect(2) Q4 2023 Communication Solutions Solutio
Slide 43: Group level | Q4 2023 revenue summary
Group level | Q4 2023 revenue summary Q4 2023 SALES % of organic growth Total Group Intelligent Mail-Related Parcel €160m North America Communication Solutions Locker +4.9% Automation Solutions Main European €97m countries (1.8)% €27m International (6.7)% €66m €196m €22m €284m +7.2% +0.3% (4.8)% +1.
Slide 44: FY 2023 Financial statements | P&L
FY 2023 Financial statements | P&L FY 2022 FY 2022 FY 2023 (in € millions) Restated Sales 1,081 1,071 1,062 Cost of sales (291) (286) (274) Gross margin 790 785 788 R&D expenses (57) (57) (63) Sales and marketing expenses (277) (274) (275) Administrative and general expenses (186) (185) (176) Servic
Slide 45: FY 2023 Financial statements | Consolidated balance sheet (1/2)
FY 2023 Financial statements | Consolidated balance sheet (1/2) FY 2022 FY 2023 31/01/2023 31/01/2024 Assets (in € millions) Restated Goodwill 1,080 1,082 Intangible fixed assets 125 121 Tangible fixed assets 150 156 Non-current financial assets 80 65 Other non-current receivables 5 2 Leasing & fina
Slide 46: FY 2023 Financial statements | Consolidated balance sheet (2/2)
FY 2023 Financial statements | Consolidated balance sheet (2/2) FY 2022 FY 2023 31/01/2023 31/01/2024 Liabilities (in € millions) Restated Shareholders’ equity 1,030 1,069 Non-current provisions 13 12 Non-current financial debt 730 715 Current financial debt 114 66 Lease Obligations 50 46 Other non-
Slide 47: FY 2023 Financial structure | All financial covenants easily met
FY 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 January 2024 restated Covenants on Intercompany net leasing Intercompany net leasing Intercompany net leasing Maximum d
Slide 48: Intelligent Communication Automation | FY 2023 Solution KPIs
Intelligent Communication Automation | FY 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 49: Mail-Related Solutions | FY 2023 Solution KPIs
Mail-Related Solutions | FY 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 50: Parcel Locker Solutions | FY 2023 Solution KPIs
Parcel Locker Solutions | FY 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 51: Contact
Contact financial-communication@quadient.com Website https://invest.quadient.com/ Next event 27 May 2024: Q1 2024 Sales Quadient is listed in compartment B of Euronext Paris (QDT) and is part of the CAC® Mid & Small and EnterNext® Tech 40 indices. Quadient shares are eligible for PEA-PME investing.