Solutions 30 Se · EURONEXT:S30
Solutions 30 — FY2022 Earnings Presentation
30 slides from Solutions 30's earnings presentation, Apr 20, 2023
Slide 1: FY Results 2022
Solutions30 Solutions For New Technologies FY RESULTS 2022 20 APRIL 2023
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 2 Amaury Boilot Chief Executive Officer —! Chief Financial Officer Solutions. Solutions for New Technologies
Slide 4: Business Model Enabling Fast Growth
BUSINESS MODEL ENABLING FAST GROWTH Connectivity Solutions CAGR 25% Energy Solutions 874.0904.6 Technology Solutions 819.3 691.4 800 customers 457.9 28 training centers 274.5 14 back-offices 191.8 63.8 77.1 94.2 111.7125.2 30.1 36.2 44.9 54.7 Maintenance & Support 2007 2008 2009 2010 2011 2012 2013
Slide 5: 2022 Key Highlights & Revenue
2022 KEY HIGHLIGHTS & REVENUE Gianbeppi Fortis, CEO 5
Slide 6: FY 2022 Revenue: +3.5% (+1.4% organic)
FY 2022 REVENUE: +3.5% (+1.4% organic) +€ 30.6m Purely organic change: € +12.2 (+1.4%) (+3.5%) 189.3 November 2021: Mono (UK) January 2022: Sirtel (Poland) Byon (Portugal) In millions of euros These figures have been rounded to the nearest whole number or the nearest decimal. Therefore, the sum of t
Slide 7: Benelux and Other Countries Compensate France's Temporary Slow-Down
BENELUX AND OTHER COUNTRIES COMPENSATE FRANCE’S TEMPORARY SLOW-DOWN 2021 2022 €874,0m €904.6m Benelux and Other Countries are driving Other France -16% Other growth Countries Benelux +38% Countries €206.3m Other Countries +24% €256.8m ▪ Strong market momentum, especially in the 23.6% 28.4% telecommu
Slide 8: Q4 2022 Sets New High
Q42022 SETS NEW HIGH 2019 2020 2021 2022 €691.4m (+51%) €819.3m (+18%) 874.0 (+6.7%) 904.6 (+3.5%) 247.8 240.7 225.2 220.6 222.7 221.7 213.6 216 212.1 212.4 201.2 189.3 175.7 168.8 161.5 159.9 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q12022 Q220
Slide 9: 2022 Financial Results
2022 FINANCIAL RESULTS Amaury Boilot, CFO
Slide 10: Income Statement Highlights
INCOME STATEMENT HGHLIGHTS Impacts of Linky decrease €10.1m € millions FY 2022 FY 2021 Change Impacts of the transformation in telecom operations in France €20.9m Revenue 904,6 874,0 3,5% Restated EBITDA €77.7m (8.6%) Operational costs 774,3 710,3 9,0% ▪ Temporary additional costs for the implementa
Slide 11: Adjusted EBITDA per Geography
ADJUSTED EBITDA PER GEOGRAPHY FRANCE BENELUX OTHER COUNTRIES €221.9m €256.8m €507.3m €425.9m €206.3m €160.4m -16% +38% +24% €66.4m €20.8m €22.9m €28.4m 13.1% 4.9% 14.3% 12.8% €2,2m €7,1m Adj. EBITDA 1,1% 2,8% Revenue 2021 2022 2021 2022 2021 2022 Combined adverse effects of (i) the Fast ramp-up of b
Slide 12: France
FRANCE Accelerated transition in a disrupted macroeconomic environment CONNECTIVITY ENERGY Geographical redistribution of major contract Termination of smart-meters deployment Return to normal market conditions after peak during Covid-19 Delay in new activities ramp-up due to supply-chain issues ▪ T
Slide 13: Benelux & Other Countries
BENELUX & OTHER COUNTRIES Fast ramp-ups BENELUX OTHER COUNTRIES Fast ramp-ups and gain in market shares Fast ramp-ups and upcoming acceleration of growth ▪ Top-Line ▪ Gain in market shares confirming ability to duplicate the ▪ Top-Line model and to export know-how and expertise ▪ Strong organic grow
Slide 14: Income Statement Highlights
INCOME STATEMENT HGHLIGHTS € millions FY 2022 FY 2021 ▪ €11.0 million of non-cash items relating to the Adjusted EBIT -0,3 40,8 adjustment of the value of contingent considerations (earnouts) linked to the Amortisation of intangibles -14,4 -14,7 purchase of minority interests in the group’s Financia
Slide 15: Financial Structure
FINANCIAL STRUCTURE Net cash position €52.3m Net cash position €54.0m Net gross debt €33.1m Net gross debt €38.9m Fixed assets Fixed assets 229.4 221.4 Equity 145,3 Equity 191.6 Provisions 41.0 Provisions 46.8 Leasing Debt (IFRS16) 67.4 Rights of use (IFRS 16) 67.0 Debt on future earn outs & Leasing
Slide 16: FY2022 Cash Generation
FY2022 CASH GENERATION Free cash-flow: €37.2m (1) (1) Change in WC excludes non-cash items 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 total figure or to 100%.
Slide 17: Key Highlights
KEY HIGHLIGHTS PROFITABILITY FINANCIAL STRUCTURE ▪ Progressive return to better ▪ A sound financial structure margins in France in 2023 ▪ Secured financing of ▪ Ramp-ups in Benelux but upcoming growth: €100- optimised organisation million syndicated loan with ▪ Priority given to growth in seven bank
Slide 18: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY Gianbeppi Fortis, CEO
Slide 19: Key Facts 2022
KEY FACTS 2022 Inclusion of ESG matters into Strengthening of the ESG the Strategy Committee team with a CSR Manager attached to the Supervisory and an analyst Board Improvement of the Revision of the strategy to measurement of C02 make it more legible by 2023 Emission to set new targets aligned wit
Slide 20: Solutions30 Key Focus in 2022
SOLUTIONS30 KEY FOCUS IN 2022 SUPPORTING TALENTS IN TOMORROW’S JOBS 924 young people under the More than 180,000 hours of age of 30 were hired, training, i.e. 25 hours per representing 38.6% of the employee, were provided in total hirings. 2022 GOVERNANCE 100% of independent Strengthened competences
Slide 21: 2023 KPIs
2023 KPIs ENVIRONNEMENTAL SOCIAL GOVERNANCE ▪ Control our energy intensity (2% ▪ Recruit young employees (≥35% ▪ Manage 100% of the group’s difference between revenue of all hires) subcontractors via the growth and CO2 emissions) ▪ Control the severity rate (< 0.35 or mySupplace platform ▪ Reduce bu
Slide 22: Outlook
OUTLOOK Gianbeppi Fortis, CEO 22
Slide 23: Market Key Drivers - FTTH
MARKET KEY DRIVERS - FTTH Belgium 5,0 m households Italy 26,0 m households Germany 41,5 m households UK 27,8 m households 25.8 26.9 30.1 3.9 +31.3% +46.1% 16 +10.0% +26.6% +21.2% +26.7% +21.9% +26.0% 2 11.4 12.4 10.3 11.2 11.1 1 Average 3.5 3.8 0.3 3.5 Annual Growth Homes Passed Homes Connected Home
Slide 24: Market Key Drivers – Energy Transition
MARKET KEY DRIVERS – ENERGY TRANSITION Investment in grids: €584bn EU announced €300bn Smart meters: €45bn FUNDAMENTAL TRENDS of which €170bn in their investment in solar panel EVC: €17bn DRIVING THE NEEDS FOR digitalisation NEW ENERGIES SMALL-SCALE MULTIPLICATION OF TRANSMISSION & CONSUMERS & PRODU
Slide 25: Continued Key Action Plan
CONTINUED KEY ACTION PLAN ▪ Integration of new business in the South-East of France after the bankruptcy of a competitor. Visible effect from Q2 2023. FRANCE ▪ Development of new, fast-growing activities, in the fragmented energy sector. ▪ Strengthening of synergies between various activities, accom
Slide 26: Supporting Ramp-Ups
SUPPORTING RAMP-UPS A NEW PLATFORM TO ONBOARD SUBCONTRACTORS Scarcity of human resources & Launching a new specialised end of the traditional salaried jobs platform to source technicians JOB NEEDS APPLICATION Search for external resources for External & Independent punctual and/or recurrent services
Slide 27: Supporting Ramp-Ups: Key Features
SUPPORTING RAMP-UPS KEY RESULTS AFTER 18 MONTHS More than 1,000 technicians staffed in 18 months in France ▪ Nearly 3,000 partner companies embedded in SOURCING REGISTRATION the database All business, all Existing & news ➔ A potential of nearly 40,000 technicians. countries subcos ▪ More than 5,000
Slide 28: Outlook
OUTLOOK Priority to organic growth and PROFITABILITY operational execution Improvement of EBITDA margin Negotiate price increases with customers REVENUE throughout the year Strict control of operating costs Above €1 bn in 2023 Confirmed normative EBITDA margin at 15% when growth and market Preservat
Slide 29: Questions & Answers
QUESTIONS & ANSWERS BY PHONE PLEASE PRESS * 1 BY WEBCAST PLEASE TYPE IN YOUR QUESTION BY USING THE BUTTON ON THE READER 29
Slide 30: www.solutions30.com
3 rue de la Reine L-2418 Luxembourg @solutions30.com Solutions 30 is listed on Euronext Paris Mnemo: S30 | Index: SBF120 www.solutions30.com