Slide 1: FY 2020 Results Presentation
FY 2020 RESULTS PRESENTATION 29 April 2021
Slide 2: Disclaimer
DISCLAIMER This presentation, the presentation materials and discussion may contain certain forecasts, projections and forward-looking statements – that is statements related to future, not past, events – in relation to, or in respect of, the financial condition, operations or businesses of Solution
Slide 3: Speakers
Gianbeppi Fortis Chief Executive Officer Amaury Boilot Chief Financial Officer Robert Ziegler Chief Transformation Officer Solutions. Solutions for New Technologies
Slide 4: 2020 Highlights
2020 HIGHLIGHTS Gianbeppi Fortis, CEO
Slide 5: Key Facts
KEY FACTS Continued double-digit profitable growth in a highly challenging environment ▪ Telecoms drive growth in most regions ▪ Preparing to capture new growth opportunities in the mobile networks segment New geographies implementation ▪ Integration of the new activities in Poland ▪ Acquisition of
Slide 6: Key Figures
KEY FIGURES REVENUE +18% EBITDA +19% NET DEBT POSITION FREE CASH FLOW €819.3m €106.5m Net Bank Cash €59.2m €124.8m Of which 59% is recurring 13.0% of revenue Total Net Debt €28.9m 15.2% of revenue 10.1% before IFRS16 €101.8m before IFRS16 ▪ Very strong operational performance despite an unprecedente
Slide 7: Key Takeaways
KEY TAKEAWAYS INCREASED ▪ Proven resilience of business model FINANCIALS ▪ Confirmed agility of the organisation ▪ Demonstrated ability to capture growth BOOSTED ▪ Markets growth driven by digital transformation and energy transition OUTLOOK ▪ Stimulus plans boost market growth in every region ▪ Pos
Slide 8: Highly Resilient Financial Results
HIGHLY RESILIENT FINANCIAL RESULTS Amaury Boilot, CFO
Slide 9: FY 2020 Revenue: +18% (+13% organic)
FY 2020 REVENUE: +18% (+13% organic) + € 127.9m Total organic growth: €90m (+13%) of which: External Growth: €38.0m (+5%) • Purely organic growth: € 76,3m (+11%) • Organic growth from acquired companies: €13.8m (+2%) 26.3 819.3 8.7 781.4 2.9 85.5 1.7 2.8 59% of December 2019: Byon (51%) Aug. 2019: i
Slide 10: Adjusted EBITDA Margin of 13.0%
ADJUSTED EBITDA MARGIN OF 13.0% Restatement € millions FY 2020 FY 2019 Worldlink Change Vitgo 1.8 Revenue 819.3 691.4 7.4 18% 3.8 ▪ Overall improvement of EBITDA margins Operational costs 632.3 530.1 7.8 19% As % of turnover 77.2% 76.7% ▪ Continued cost control during H1 ▪ Favourable impact of tempo
Slide 11: Adjusted EBITDA per Geography
ADJUSTED EBITDA PER GEOGRAPHY FRANCE BENELUX OTHER COUNTRIES €522.7m €136.3m €160.2m €125.9m €434.4m €131.1m €69.7m €86.6m €19.7m €21.4m 16.6% 15.7% €5.9m €7.6m Adj. EBITDA 16.1% 15.7% 4.5% 4.8% Revenue ▪ Strong acceleration of volumes boosts profitability in France ▪ Good resistance thanks to Telec
Slide 12: Net Income (Group Share) of 4.5%
NET INCOME (GROUP SHARE) OF 4.5% Restatement € millions FY 2020 FY 2019 Worldlink Change Vitgo -1.9 Adjusted EBIT 60.9 52.9 -0,6 15% Amortisation of intangibles -13.0 -10.7 22% ▪ Increase in amortisation of intangibles -0.1 ▪ Increase in Client relationships reflecting the M&A Financial result -4.1
Slide 13: Workforce
WORKFORCE +981 (+15.5%) 5,923 6,838 6,330 7,311 407 473 Employees, Managers Total technicians, Employees, Managers Total supervisors technicians, supervisors +915 (+15.4%) +66 (+16.2%) 31.12.2019 31.12.2020 13
Slide 14: Financial Structure
FINANCIAL STRUCTURE Fixed assets Fixed assets 230.1 Equity 134.5 Equity 172.4 208.1 Provisions 48.7 Provisions 55.5 Rights of use Leasing Debt (IFRS16) 63.5 Leasing Debt (IFRS16) 61.9 (IFRS 16) 64.0 Rights of use Debt on future earn outs & (IFRS 16) 62.2 Gross Debt Debt on future earn outs & purchas
Slide 15: Net Debt
Net Debt Net bank debt/EBITDA 3.2% Net bank debt/EBITDA -56% Net debt/EBITDA 103% Net debt/EBITDA 27% Gearing 68% Gearing 17% 140 140 90 90 172.4 134.5 106.5 92.1 89.4 40 40 3.0 28.9 -10 -10 -59.2 -60 -60 Net Bank Debt Net Debt EBITDA Shareholders' Net Bank Debt Net Debt EBITDA Shareholders' equity
Slide 16: FY 2020: Cash Generation
FY 2020: CASH GENERATION Free cash-flow: €124.8m (1) (2) (1) Change in WC excludes non-cash items (2) M&A includes the acquisition of Elmo’s assets 16 These figures have been rounded to the nearest whole number or the nearest decimal. Therefore, the sum of the numbers may not conform exactly to the
Slide 17: A Solid Financial Structure in Line with the Double-Digit Growth Strategy
A SOLID FINANCIAL STRUCTURE IN LINE WITH THE DOUBLE-DIGIT GROWTH STRATEGY Strong financial performances ▪ Highly resilient profitability and strong cash generation despite the impact of the pandemic, mainly in H1 2020 ▪ Consolidation of financial resources to finance growth acceleration throughout E
Slide 18: Q1 2021
Q1 2021 Amaury Boilot, CFO Solutions Solutions for New Technologies
Slide 19: Q1 2021 Revenue: +19.0% (+15.4% organic)
Q1 2021 2020 REVENUE: +19.0% (+15.4% organic) + € 35.9m Purely organic growth: € 29.1m (+15.4%) External Growth: €6.8m (+3.6%) 5.2 225.2 25.7 0.6 2.8 218.4 0.0 1.6 58% of 189.3 Dec. 2020: Brabamij November 2020 : Algor recurring December 2020: revenue Comvergent * Including organic growth from acqui
Slide 20: Double-Digit Growth Driven by Strong Momentum in the Telecom Business
DOUBLE-DIGIT GROWTH DRIVEN BY STRONG MOMENTUM IN THE TELECOM BUSINESS Q1 2021 Revenue +19.0% (+15.4% organic) 225.2 189.3 46.1 Other countries +21.0% 38.1 (+7.4% organic) 37.0 34.8 Benelux +6.3% (+1.7% organic) 142.1 116.4 France +22.1% Q1 2020 Q1 2021 In millions of euros Scope of consolidation now
Slide 21: France
FRANCE Q1 2021 Revenue +22.1% TELECOM 73% of France revenue IT 8% of France revenue 103.2 +6% 11.0 +29% 10.4 80.0 2020 2021 2020 2021 ENERGY 16% of France revenue OTHERS 3% of France revenue 23.3 +16% -22% 20.1 5.9 3.9 4.6 In millions of euros 2020 2021 2020 2021 These figures have been rounded to t
Slide 22: Benelux
BENELUX Q1 2021 Revenue +6.3% (+1.7% organic) TELECOM 78% of Benelux revenue IT 7% of Benelux revenue +8% 28.9 2.4 26.7 2.4 +2% 2020 2021 2020 2021 ENERGY 10% of Benelux revenue OTHERS 5% of Benelux revenue 3.9 3.3 -48% +55% 2.5 -7% 1.7 organic In millions of euros 2020 2021 2020 2021 These figures
Slide 23: Other Countries
OTHER COUNTRIES Q1 2021 Revenue GERMANY ITALY 36% of OC revenue 19% of OC revenue +21.0% 16.3 16.1 8.7 (+7.4% organic) 1.3 60.0 6.5 -1% +33% +13% organic 7.4 2020 2021 2020 2021 IBERIA POLAND UK 25% of OC revenue 12% of OC revenue 8% of OC revenue 11.7 5,7 5.6 9,5 3.9 +23% In millions of euros -3% 2
Slide 24: Continued Double-Digit Profitable Growth
CONTINUED DOUBLE-DIGIT PROFITABLE GROWTH Robert Ziegler, CTO
Slide 25: Digital Transformation Will Continue Driving Growth
DIGITAL TRANSFORMATION WILL CONTINUE DRIVING GROWTH FIBER OPTICS ▪ Covid-19 has pushed up data traffic and highspeed demand ▪ Many players have announced migration towards full-fiber solutions Building the infrastructure that ▪ Key challenge is to build resources and capabilities to meet demand is k
Slide 26: Telecom Investments Accelerating All Across Europe
TELECOM INVESTMENTS ACCELERATING ALL ACROSS EUROPE ▪ Acquisition of Deutsche Glasfaser by EQT and OMERS. The combined group KEY SUCCESS FACTORS is committed to invest over €7 bn into the ▪ A key partner for major telco operators roll-out of fast-speed internet infrastructure in Germany ▪ Strong expe
Slide 27: Energy Transition Becomes Reality All Across Europe
ENERGY TRANSITION BECOMES REALITY ALL ACROSS EUROPE Major favorable impact on S30 key businesses ▪ Stimulus packages to support decarbonization of the vehicle fleet Pressure from public opinion and new constraints e-mobility & Collective Awareness Acceleration of energy ▪ Increased investment in ren
Slide 28: Pre-Covid Trends Emerge Stronger Boosting Opportunities for Growth
PRE-COVID TRENDS EMERGE STRONGER BOOSTING OPPORTUNITIES FOR GROWTH ENERGY TRANSITION BECOMES REALITY REQUIRING NEW EQUIPMENT AND GRIDS ADAPTATION THE ACCELERATION OF DIGITAL TRANSFORMATION TARGET OF REQUIRE STRONGER INFRASTRUCTURE €1BN TURNOVER SEARCH FOR PRODUCTIVITY GAINS IS MORE AND GETTING CLOSE
Slide 29: Powering Solutions 30
POWERING SOLUTIONS 30 Robert Ziegler, CTO
Slide 30: A New Chapter Ahead
A NEW CHAPTER AHEAD 3 DOUBLE-DIGIT CAGR ▪ A new growth phase is arising ▪ Duplication of the success experienced in France is underway ▪ Strengthening fundamentals 2 46% CAGR GOVERNANCE | RISK | COMPLIANCE ▪ Acceleration of growth ▪ Reaching critical size in France and Belgium enabling increased pro
Slide 31: Strengthening Internal Processes to Support Long Term Growth
SOLUTIONS 30 STRENGHTENING INTERNAL PROCESSES TO SUPPORT LONG TERM GROWTH 31
Slide 32: Capitalize on Key Assets
CAPITALIZE ON KEY TEAM CUSTOMER HEALTHY FINANCIAL AGILITY WITH ASSETS COMMITMENT LOYALTY BUSINESS MODEL SUPPORTED BY STRENGTH SHORT DECISION- MAKING CIRCUITS DIGITIZATION 32
Slide 33: Securing Long Term Growth
SECURING LONG TERM GROWTH Risk control and compliance Procedures for selecting partners and monitoring transactions GRC with related parties Quick Wins Governance and governing bodies by enhancing Legibility of the organization Corporate social responsibility commitments 33
Slide 34: Risk Management Target Framework & Methodology
RISK MANAGEMENT TARGET FRAMEWORK & METHODOLOGY ENHANCE PROCESS ENHANCE CONTROL EFFECTIVENESS & EFFICIENCY 3RD LINE OF DEFENSE Audit RISK Internal/External Audit GOVERNANCE ▪ Identification ▪ Strategy ▪ Goals ▪ Evaluation 2ND LINE OF DEFENSE ARE WE DOING THE ▪ Monitoring Internal controls ▪ Procedure
Slide 35: A Redesigned Organization Easy to Scale
A REDESIGNED ORGANIZATION EASY TO SCALE SUPERVISORY BOARD GROUP MANAGEMENT BOARD GROUP EXECUTIVE COUNTRY EXECUTIVE COMMITTEE COMMITTEE Finance Implement strategy Improve integration Apply best practices Country CEO Sales Operations Operations Sales & Marketing Backoffice Legal Telecoms North Finance
Slide 36: ESG Objectives Integrated into Managers' Individual Objectives 2021
ESG OBJECTIVES INTEGRATED INTO MANAGERS’ INDIVIDUAL OBJECTIVES 2021 Stable From 20/100 to 46/100 From B to BBB ONGOING IMPROVEMENT IN 2021 ▪ Increasing ESG awareness throughout the Group ▪ Green revenue to increase thanks to strategy into e-mobility infrastructures 2nd best rating improvement among
Slide 37: Implementation Timeframe
IMPLEMENTATION TIMEFRAME Q2 2021 Q3 2021 Q4 2021 Q1 2022 ▪ Risk control and compliance ▪ Procedures for selecting partners and monitoring transactions with QUICK related parties WINS ▪ Governance and governing bodies ▪ Legibility of the organization ▪ Corporate social responsibility commitments GROW
Slide 38: Powering Solutions 30
POWERING SOLUTIONS 30 STRONGER STRONGER STRONGER ORGANIZATION CONTROL OUTLOOK Customer centric On track to deliver organisation with Culture of risk sustained double- improved processes management digit profitable growth 38
Slide 39: Questions & Answers
QUESTIONS & ANSWERS BY PHONE PLEASE PRESS * 1 BY WEBCAST PLEASE TYPE IN YOUR QUESTION BY USING THE BUTTON ON THE READER 39
Slide 40: Agenda and Contact
AGENDA Q2 revenue, 2021 | 27 July 2021 Half-year results, 2021 | 29 September 2021 Q3 revenue, 2021 | 3 November 2021 FY revenue, 2021 | 26 January 2022 CONTACT Solutions 30 | 3 rue de la Reine | L-2418 Luxembourg investor.relations@solutions30.com | Tel.: +352 (2) 837 1389 www.solutions30.com Two d
Slide 41: 2020 Changes in Scope of Consolidation
2020 CHANGES IN SCOPE OF CONSOLIDATION COUNTRY COMPANY DATE OF FY REVENUE AT TIME COMMENT CONSOLIDATION OF ACQUISITION Worldlink(*) Germany 1 April 2019 €3.4m Market share gain Spain Provisiona 1 July 2019 €2m 5G market penetration Benelux i-Projects 1 July 2019 €13m Enter the energy market in the N