Slide 1: FY23 results
FY23 results March, 2024
Slide 2: Forward looking statements
Forward looking statements Such forward-looking statements are based on management's current expectations and beliefs and are subject to a number of risks and This presentation uncertainties that could cause actual results to differ materially from the future results expressed, forecasted or implied
Slide 3: Highlights
Highlights
Slide 4: FY 2023 highlights
FY 2023 highlights → Acquisition of → Significant slow CommScope’s Home down in the CH and 2024 Networks completed SCS businesses in an in Jan 2024 inflationary context → Success of our → Good resilience of reserved capital the EBITDA margin increase to acquire thanks to quick and THE START Home Net
Slide 5: Good EBITDA margin resilience despite significant revenue decrease
FY 2023 highlights REVENUES (in € million) Adjusted EBITDA (in € million) FCF (before financial and tax, in € million) 2,776 1 -25.3% @ current rate 2,075 -23.3% @ constant rate margin 1 6.8% margin 5.8% -11.7% @ current rate Good EBITDA margin resilience 2120 161 142 -9.2% @ constant rate 1563 desp
Slide 6: 2023 guidance exceeded
2023 guidance exceeded Guidance In € million Q3 2023 2023e 2023a 2023 @ constant rate Adj. Continuing EBITDA >140m 142 146 Guidance Adj. Continuing EBITA >45m 57 58 achieved for Continuing FCF(1) >0m 14 the second 13 year in a row (1) Before financial results and tax. Free cash flow defined as: Adj.
Slide 7: CommScope Home Networks acquisition: integration in line with forecasts
CommScope Home Networks acquisition B/W than Status planned Closing Done In line To date, the Teams’ integration In progress Better integration has Restructuring execution In progress Better been in line with Synergies’ extraction In progress Better initial forecasts, or even better An update will b
Slide 8: 2024: Home Networks integration
2024: Home Networks integration Areas of Strength ➔ CommScope acquisition brings ➔ Weak start of the year due scale and opens huge synergy to weak demand from ➔ opportunities Larger presence in Tier 1 and Operators in a context of high inventories 2024 Tier 2 customers ➔ Main customers are under com
Slide 9: 2024 guidance
2024 guidance Despite uncertainty in demand due to macro-economic conditions, and their impact on revenues, the group targets: BY 2026 Adjusted Free Cash Management is EBITDA Flow* confident about a >€140m >€0m sustainable & healthy FCF after * After financial and tax and before restructuring for HN
Slide 10: Update
Update
Slide 11: Connected Home in 2023: Demand slowed in line with broader segment
Connected Home in 2023: Demand slowed in line with broader segment CONTINUED INNOVATION All markets affected by lower demand from operators, Fiber and FWA 5G remained the ➔ Wi-Fi 6/6E: Multiple GWs projects growing segments launched in North America and Europe ➔ Launch of new innovative set-top boxe
Slide 12: Connected Home: Financial Performance
Connected Home: Financial Performance 2023: STRONG HEADWINDS BUT MARGIN RESILIENCE 2024 OUTLOOK REVENUES (in € million) ADJUSTED EBITDA (in € million) EBITDA MARGIN (in %) Broadband Video -10.4% ➔ Competitive consumer -26.3% @ current rate 2 120 @ current rate broadband market creating 7.7% 160 oppo
Slide 13: Supply Chain Solutions: Continuing to accelerate diversification
Supply Chain Solutions: Good margin resilience 495 DISC BUSINESS: LEADER IN A MATURING MARKET 37 325 136 24 DISC VOLUMES BREAKDOWN (in million units) 110 322 SD-DVD → Manufacturing volumes decrease explained by the maturity of the market 191 Blu-rayTM and an inflationary environment hitting the disc
Slide 14: Supply Chain Solutions: 2024 Outlook
Supply Chain Solutions: 2023: MARGIN IMPROVEMENT IN A MATURE OPTICAL MARKET ADJUSTED EBITDA (in € million) REVENUES (in € million) EBITDA MARGIN (in %) -20.4% @ current rate 8.6% +17bps 8.8% -18.4% -21.9% @ constant rate @ current 655 rate 512 56 45 -20.3% 2024 Outlook @ constant rate 2022 2023 2022
Slide 15: Key financial figures
Slide 16: Key figures full year
Key figures full year GROUP 2023 2022 Variation in € million Revenues 2,075 2,776 (701) Adjusted EBITDA 142 161 (19) in % of Revenues 6.8% 5.8% 105 pbs D&A & Reserves (1) w/o PPA amortization (86) (106) 20 Adjusted EBITA 57 55 2 PPA amortization (26) (31) 5 Non-recurring items (167) (35) (132) EBIT
Slide 17: From Adjusted EBITDA to EBIT
From Adjusted Ebitda TO EBIT IN SUMMARY 2023 2022 variation in € million Adjusted EBITDA 142 161 (19) D&A & Reserves(1) w/o PPA amortization (86) (106) 20 Adjusted EBITA 57 55 2 PPA amortization (26) (31) 5 Impairments & write-off (139) (5) (134) Restructuring (14) (17) 3 Other Non-Current (14) (13)
Slide 18: From EBIT to Net Result Group
From EBIT to Net Result Group 2023 2022 Variation in € million EBIT Continuing (136) (11) (125) Net Interest Expense (70) (167) 97 Other Financial (37) (10) (28) Net financial result (107) (177) 70 Profit before Tax (243) (188) (55) Tax (15) (30) 15 Share of gain (profit) from associates (25) (311)
Slide 19: Free Cash Flow from continuing operations
Free Cash Flow (1) from continuing operations FREE CASH FLOW FROM CONTINUING OPERATIONS: YTD 2023 VS. YTD 2022 In € million 13 (19) 39 20 FCF YTD 22 FCF YTD 23 EBITDA Net Capex Restructuring Var WCR Pensions & Others as published as published (1) Before interest and tax 19
Slide 20: Liquidity and Debt
Liquidity and DEBT Amount of Available credit Drawn Available Liquidity at December 31, 2023 (€m) credit line line (1) amount amount Cash on hand 133 Committed credit facilities: Wells Fargo credit line ($125m) 113 76 0 76 Liquidity Liquidity 209 amounted to €209m €m Nominal Amount at December Total
Slide 21: Thank you
* tm WE vanliva >, Thank you VANTIVA.COM
Slide 22: Glossary of Terms
Glossary of Terms Abbreviation Definition Abbreviation Definition $ American Dollar Earnings before Interest, Tax, Depreciation and EBITDA Amortization € Euro EU European Union B2B Business-to-Business FCF Free-Cash-Flow BB Broadband GPON Gigabit Ethernet Passive Optical Network BD Blu-ray Disc IoT
Slide 23: Glossary of Terms (Cont'd)
Glossary of Terms (Cont’d) ● Adjusted EBITDA: profit (loss) from continuing operations before tax and net financial income (expense), net of other income (expense), depreciation and amortization (including impact of provision for risks, litigation and warranties) ● Adjusted EBITA: profit (loss) from