Slide 1: H1 2023 Results
H1 2023 RESULTS September 11, 2023
Slide 2: Global leader in IoT & digital solutions for physical retail
Global leader in IoT & digital solutions for physical retail 50% of Global Top 250 retailers €621m sales (2022) “SES-imagotag announces latest- generation VUSION platform roll-out contract in Walmart Stores in U.S.” 750 employees 62 countries 350+ retailers 400+ CPG €800m 10y-Cagr ~30% p.a. 35,000 s
Slide 3: H1 key achievements
H1 key achievements H1 key figures (€m) Revenue grew by +33% at €380m Order Entries grew by +35% at €518m H1 H1 % 2023 2022 New blue-chip customers signed Finalised the development of our next generation Revenue 380.7 285.9 +33% shelf digitization system (DSS) EBITDA 43.5 25.3 +72% Largest ever cont
Slide 4: H1 record semester in both sales and order entries
H1 record semester in both sales and order entries €m Order entries Revenues Semester 12m rolling Semester 12m rolling 818 717 677 685 602 621 599 518 505 455 423 378 385 375 381 336 336 309 300 290 290 292 285 247 244 213 220 203 165 172 126 118 H2 '19 H1 '20 H2 '20 H1 '21 H2 '21 H1 '22 H2 '22 H1 '
Slide 5: H1 new deals announcements
H1 new deals announcements TECHNOLOGY Walmart deploying Vusion for digital shelf strategy HOME — TRADING PLATFORMS swe inane neue vomne = WUSIOA ~seUrOnics HN Forex Indie Ccoptocuirencies Commer Reuters Ses-Imagotag Further Expansion In The U.S. Euronics extends its digitalization across the UK with
Slide 6: VAS sales in H1 2023 of €53m (+18%)
VAS sales in H1 2023 of €53m (+18%) H1 Revenue breakdown ESL vs VAS representing 14% of total revenue €m 380 YoY › Challenging macro-economic environment leading to slower VAS growth 285 › Some innovation projects postponed or slowed down 327 +37% › Mix improved (recurring vs. one-off 240 ESL servic
Slide 7: H1 strategic investments significantly advanced our solutions portfolio
H1 strategic investments significantly advanced our solutions portfolio IoT In-store Data ESL CV/AI Cloud Digital Analytics Cost Reduction ✓ ✓ ✓ ✓ RETAILERS CHALLENGES Price/Promo ✓ ✓ & Inventory & Availability ✓ ✓ ✓ PRIORITIES E-Commerce ✓ ✓ ✓ Customer Experience ✓ ✓ ✓ ✓ Retail Media & Data ✓ ✓ ✓ ✓
Slide 8: Next Gen Digital Shelf System
NEXT GEN DIGITAL SHELF SYSTEM Power & Data via the smart rail Sustainable battery less ESL Interoperability ultra-low power Bluetooth Convergence WiFi + IoT infrastructure
Slide 9: Walmart first confirmed phase and warrants
First confirmed phase: 500 stores (USA) Potential 5-7 years revenue: €3bn 1,761,200 warrants issued to be vested (€112) subject to Walmart spend: › Minimum threshold $700m › >$700m: prorata vesting up to 10% of total share capital for $3B cumulative spend
Slide 10: Acquisition 67% in April 2023 by Captana
Acquisition 67% in April 2023 by Captana 10
Slide 11: CV/AI technology for real-time shelf monitoring
CV/AI technology now available allowing real-time shelf monitoring, OOS detection and shelf compliance management
Slide 12: ESL or paper label agnosticity
Belive AI complementarity ESL or paper label agnosticity 12
Slide 13: Fresh counters monitoring
Belive AI complementarity Fresh counters monitoring 13
Slide 14: Fresh counters monitoring
Belive AI complementarity Fresh counters monitoring 14
Slide 15: Planogramme / realogramme compliance management
Belive AI complementarity Planogramme / realogramme compliance management 15
Slide 16: E-commerce instore fulfillment enabler
Belive AI complementarity E-commerce instore fulfillment enabler Picking app Visual guidance 16
Slide 17: Autonomous store
Belive AI complementarity Autonomous store 17
Slide 18: Traffic & queue monitoring
Belive AI complementarity Traffic & queue monitroing 18
Slide 19: Memory: augmented intelligence serving retail decision-making
M=MORY AUGMENTED INTELLIGENCE SERVING RETAIL DECISION-MAKING
Slide 20: Leading French data platform for retailers and CPGs
13 partnering retailers > Leading French Data platform for retailers and CPGs 30+ modules in the platform > End-to-end software platform for category management: 6000+ users of the solution Assortment, Promotions, Merchandising, Purchasing Retail media 80+ professionals > Enhancing data sharing and
Slide 21: Memory analyses all existing sources of retail data
Memory analyses all existing sources of data commonly available in retail 21
Slide 22: SES+Memory: IoT provides new data to augment retail intelligence
SES+Memory: IoT provides new data to augment retail intelligence In-store Real-time Instore Data >> shelf data campaign & shopper insights 22
Slide 23: Objective to apply analytics to the broadest set of data ever
Objective to apply Analytics to the broadest set of data ever ESL CV / AI Retail media IoT Cloud Analytics Exact price Exact availability Campaign traffic Data from all IoT Ticket data Exact product Exact position and Shopper interaction in store Client data presence of facings Flows Product attribu
Slide 24: Maximize on-shelf availability
Maximize on-shelf availability Monitor stores & products Value the cost of product missing per store Suggest action plans (short / long term) Evaluate the over / under performance per store 24
Slide 25: Optimize in-store merchandising
Optimize in-store merchandising Ensure merchandising compliance in stores Customize assortment & merchandising by store Real-time aisle view (# of facings, shelf share, position on shelf…) Live shelf analytics augmented with sales & shopper data 25
Slide 26: Sales uplift & shopper impact
Sales uplift & Shopper Impact Speed + programmatic + Better conversion execution + shopper Incremental volumes and interaction sales Customer profiling analysis +65% +30% uplift in sales uplift in sales 26
Slide 27: Driving new CPG revenues by enhancing collaboration
Driving new CPG revenues by enhancing collaboration Store Operations Category Management CRM & Retail Media Out Of Stock detection & action plan Performance analysis Improved targeting Merchandising compliance & Promotions Shopper insights Deep & accurate campaign execution Predictive modeling on as
Slide 28: H1 key achievements
H1 key achievements H1 key figures (€m) Revenue grew by +33% at €380m Order Entries grew by +35% at €518m H1 H1 % 2023 2022 New blue-chip customers signed Finalised the development of our next generation Revenue 380.7 285.9 +33% shelf digitization system (DSS) EBITDA 43.5 25.3 +72% Largest ever cont
Slide 29: H1 2023 Financial Results
vusion ses imagotag H1 2023 FINANCIAL RESULTS
Slide 30: SES-imagotag – H1 2023 Results
SES-imagotag – H1 2023 Results H1 2023 / (€m) H1 2023 H1 2022 Strong EBITDA increase Revenues 380.7 285.9 H1 2022 33% fueled by higher VCM rate Variable Costs Margin 92.2 61.1 51% % of revenues 24.2% 21.4% +2.8 pts Opex (48.7) (35.7) 36% > VCM ratio up by 2.8pts % of revenues -12.8% -12.5% +0.3 pt E
Slide 31: SES-imagotag – H1 2023 Sales
SES-imagotag – H1 2023 Sales Rest of the Sales in € m* Europe Total world H1 2023 317.7 63.0 380.7 > Q2 2023 sales at €221m, up +34% vs Q2 ‘22 H1 2022 221.3 64.6 285.9 > H1 2023 sales at €380m, up +33% vs H1 ‘22 > 12-m rolling sales growth of +41% to €715m Change (in %) +43.6% -2.6% +33.2% > VAS sal
Slide 32: Opex under control
Opex under control €m and % of sales €35.7m €48.7m (12.5%) (12.8%) 1.1% Acquisitions of sales > Opex to sales ratio down 0.8 pt on a like-for-like basis > Impact of the Belive and Memory - 0.8 pt acquisitions: +1.1 pt Opex to sales ratio 12.5% of sales 11.7% of sales > Belive and Memory are Ebitda ≥
Slide 33: Strong EBITDA improvement from operations
Strong EBIDTA improvement from operations EBITDA / Sales % 8.9% +2.8 pts - 0.3 pt 11.4% Driven by improving margins on ESL and VAS > EBITDA increase from €25.3m to €43.5m at 11.4% of 0.2 sales (+2.5pts vs. H1 2022) -7.2 10.8 -5.8 > EBITDA margin improves thanks to VCM rate increase mainly driven by
Slide 34: CAPEX
CAPEX > H1 Focus: completion of the development, industrialization and large-scale testing of the next gen Digital Shelf System* €m H1 2023 H1 2022 > IT main focus in H1 ’23: R&D 39.6 9.0 > Extend the SAP scope to R&D (mainly VAS related) 7.7 5.7 additional entities Digital Shelf System 31.9 3.3 IT
Slide 35: Working Capital continuous improvement
Working Capital continuous improvement June 30 Dec. 31 in million € 2023 2022 D Accounts Receivables 127 111 17 Days of Sales (DSO) 47 60 -13 Inventories 168 173 -5 Days of Sales (DIO) 68 100 -32 Accounts Payables 177 156 21 Days of Purchase (DPO) 75 82 -7 Operating Working Capital 118 128 -9 Days o
Slide 36: +€35m Positive Free Cash-Flow in H1
+€35m Positive Free Cash-Flow in H1 Before IFRS 16 H1 2023 H1 2022 > Positive Free Cash-Flow in H1 impacted EBITDA 42.0 24.2 by: Capex (48.0) (15.8) > Improving profitability and operating WC Change in Working Capital 128.8 (21.6) > Large down-payments from significant OE Operational Cash-Flow 122.7
Slide 37: EBIT to EBITDA Reconciliation
EBIT to EBITDA Reconciliation (€m) As of, in M€ June 30, 2023 Operating Income (EBIT) 22.7 - Equity / debt / M&A related fees (0.9) - Performance Shares Plan (IFRS2) (4.4) = Current EBIT 28.0 - Fixed & Intangible Asset Depreciation Expense (15.5) = EBITDA 43.5 37
Slide 38: Walmart warrants IFRS accounting treatment
Walmart warrants IFRS accounting treatment (€m) H1’23 impact Future impact > On June 2, 2023, Walmart US was granted 1,761,200 warrants. These warrants will vest prorata the payments collected from Walmart US up to $3bn (if they exceed $700m) Such a right to buy SES-imagotag shares at a pre-determin
Slide 39: Outlook in line with guidance
Outlook in line with guidance › For the second half of 2023, SES-imagotag anticipates revenue in line with the annual target of €800m - with a strong Q4 both in sales and order entries - and continued profitability growth. › For 2024, the company anticipates ongoing strong growth, driven in particul
Slide 40: H1 key achievements
H1 key achievements H1 key figures (€m) Revenue grew by +33% at €380m Order Entries grew by +35% at €518m H1 H1 % 2023 2022 New blue-chip customers signed Finalised the development of our next generation Revenue 380.7 285.9 +33% shelf digitization system (DSS) EBITDA 43.5 25.3 +72% Largest ever cont
Slide 41: H1 2023 Results
H1 2023 RESULTS September 11, 2023