Slide 1: H1 2016 results and outlook
SOLUTIONS 30 H1 2016 results and outlook Gianbeppi Fortis, Chief Executive Officer 29 September 2016 1
Slide 2: Contents
Contents 1. The SOLUTIONS 30 business model 2. What's new at the mid point of 2016? 3. H1 2016 results 4. Outlook 5. Appendices 2
Slide 3: In 12 years, SOLUTIONS 30 has positioned itself as European leader
In 12 years, SOLUTIONS 30 has positioned itself as European leader Milestones H1 Market capitalisation: €240 million 2016 Ramp up of fibre optic and Linky Strengthened presence in Benelux and Spain 2015 Market capitalisation: €200 million Awarded record Linky contract Awarded record fibre optic cont
Slide 4: Sustained profitable growth
Sustained profitable growth Turnover growth (millions of €) 2016e outlook: continued double-digit International profitable growth for full-year 2016 France +43.1% 28% 125.2 86.5 2007 to 2015: ≈ +20% 28% (+12%) average annual growth 111.7 60.3 (+19%) 30% 94.2 29% 28% (+22%) 77.1 28% (+21%) 23% 63.8 5
Slide 5: SOLUTIONS 30 today
SOLUTIONS 30 today 20% 30% average annual of our business is outside France growth rate in in four regional markets: Italy, turnover since 2007 Germany, Benelux and Spain 5 90% of turnover via our business segments in rapidly partners, in the BtoBtoB or expanding markets: BtoBtoC markets • IT & Tele
Slide 6: Our many markets are flourishing
Our many markets are flourishing Diversification and growth drivers Future Historical markets Recent developments developments Home Facilities POS Terminals Energy Digital support Security automation/Connected E-health management objects Service calls on Installation and Installation and Products an
Slide 7: Our business meets a clear and growing need
Our business meets a clear and growing need 50-80(e) Number of connected objects in the world 15 (in billions) 4 Source: Gartner, Idate 2010 2014 2020(e) 7
Slide 8: What makes us unique?
What makes us unique? We benefit from Our business model We aim to be two forces: works equally well in the backbone for a the renewal of legacy potential market of 500 the domestic and markets and the growth million people from our European market to of new markets large domestic base in deliver pr
Slide 9: Contents
Contents 1. The SOLUTIONS 30 business model 2. What's new at the mid point of 2016? 3. H1 2016 results 4. Outlook 5. Appendices 9
Slide 10: France Telecom business: ramp up of broadband
France Telecom business: ramp up of broadband Note: • 2 connected objects per person on average in 2013, 7 in 2015, and 80-100 in 2020 (GFK) • Ultra-high speed broadband plan for France: • Nationwide coverage by 2022 (with half covered by 2017) • €20 billion investment in 10 years SOLUTIONS 30: • Ea
Slide 11: Linky smart meters: ramp up continues
Linky smart meters: ramp up continues • ERDF Linky meters: • €1.2 billion for the roll-out of 35 million Linky meters • Phase 1: 10 million Linky meters, start-up on 1 December 2015 • The contracts for 20 million Linky meters already awarded (20% = S30's share) SOLUTIONS 30: • SOLUTIONS 30: x6 from
Slide 12: Gazpar meters: tender award announcement imminent
Gazpar meters: tender award announcement imminent GRDF Gazpar meters: • €300 million for the roll-out of 11 million Gazpar meters Outlook: • Tender for 5.5 million Gazpar meters is currently in progress • Result in Q4 2016 • Start-up in mid-2017 12
Slide 13: Electricity and gas meters in Italy: tender award announcement imminent
Electricity and gas meters in Italy: tender award announcement imminent • Electricity meters • 32 million electricity meters need to be replaced, including 13 million with fibre optic connection • 10% deployed by ENEL, remainder to be awarded • ENEL certification obtained • Gas meters • 18 million g
Slide 14: Approaching critical mass in the international market
Approaching critical mass in the international market… Four growth drivers 1. Cross-border • HP (France/Italy/Benelux/Spain) • …then expand Den Bosch Cologne contract around the Brussels country and develop Luxembourg Paris Stuttgart • Identification other businesses • Location and of target, Milan
Slide 15: Stronger managerial team
Stronger managerial team… Amaury Boilot Olivier Raguin Head of Executive VP and POS Terminals Board Member and Banking BU Mehdi Abdelmouttalib Jerome Boillot Innovation Manager Group CFO Ferruccio Borsani Koen Verbergt Executive Chairman CEO Benelux of S30 Italy 15
Slide 16: Careful attention to stock liquidity
… and careful attention to stock liquidity • June 2016: • Fourth stock split in six years • 20.4 million shares 2016 AVERAGE DAILY TRADING VOLUME: • April 2016: €194 K • Liquidity contract agreed with LCM • December 2015: • About 10% of shareholders are non-residents • September 2015: • 59% free flo
Slide 17: Contents
Contents 1. The SOLUTIONS 30 business model 2. What's new at the mid point of 2016? 3. H1 2016 results 4. Outlook 5. Appendices 17
Slide 18: Breakdown of first-half 2016 turnover by business
Breakdown of first-half 2016 turnover by business IT and digital support for Payment systems support individuals and SOHOs 9% Installation 15% 29% 30% and maintenance of smart meters Service calls on safety (electricity, water, gas) International and security 1% installations, systems and equipment
Slide 19: Sustained robust profitability in our operations
Sustained robust profitability in our operations Revenues Production costs % of revenues SG&A % of revenues % of revenues Amortisation (operational) 1 Before amortisation of intangible assets 19
Slide 20: Marked increase in net income Group share
Marked increase in net income Group share Amortisation intangible assets Financial income Non recurring items Taxes on profits Net profits of consolidated companies Depreciation of Goodwill Consolidated net income Net income (group share) 1 Before amortisation of intangible assets 20
Slide 21: Sound financial structure and additional leverage
Sound financial structure and additional leverage In millions of euro At 31 December 2015 At 30 June 2016 Equity Capital Equity Capital 26.7 23.7 capital assets 23.7 26.7 capital assets Prepaid expenses Provisions 2.9 3.0 Provisions 17.2 WCR 17.1 WCR 27.3 Medium-/long- term liabilities 15.7 Medium-/
Slide 22: Cash generation
Cash generation (10.2) +6.1 11.3 +12.5 +11.4 +2.0 +14.7 OCF Chg WCR Cash of consolidated companies Cash Cash 31 Dec. 2015 30 June 2016 Invest. Net incr. of borrowings In millions of euro 22
Slide 23: Contents
Contents 1. The SOLUTIONS 30 business model 2. What's new at the mid point of 2016? 3. H1 2016 results 4. Outlook 5. Appendices 23
Slide 24: Outlook in the short and mid term
Outlook in the short and mid term Outlook for 2016 Accelerated growth in the second half, with continued double-digit profitable growth Continued growth in the international market (priorities: Germany and Italy) In the medium term €400 million in turnover in five large markets of comparable size (F
Slide 25: Our equity story
Our equity story 1 • European leader with a powerful domestic base making it efficient to duplicate the business model in other countries 2 • Buoyant markets for connected objects (energy, home automation, security, e- health) and renewals (IT and telecoms) 3 • Unique business model based on scaling
Slide 26: H1 2016 results and outlook
SOLUTIONS 30 H1 2016 results and outlook Gianbeppi Fortis, Chairman of the Executive Board 28 April 2016 26
Slide 27: Contents
Contents 1. The SOLUTIONS 30 business model 2. What's new at the mid point of 2016? 3. H1 2016 results 4. Outlook 5. Appendices 27
Slide 28: Share information
Share information ► Listing sponsor: Genesta Finance ► Liquidity contract with Louis Capital Market Price Alternext (Paris): ALS30 ► at September 26, 2016 €11.90 Listed on: Deutsche Börse (Frankfurt): XETRA, EO2 Total no. of shares* 20,440,000 ISIN Code FR00110263335 Capitalisation €242 million 59%
Slide 29: Calendar & Contact
Calendar & Contact DATES EVENTS 03 November 2016 Publication of Q3 2016 turnover 23 January 2017 Publication of 2016 turnover Contact for financial information: nezha.calligaro@solutions30.com / Tel.: +352 26 48 19 17/ Tel.: +33 (6) 88 39 90 95 Communications/Press contact: samuelbeaupain@reseau-edi