Quadient Sa · EURONEXT:QDT
Quadient Sa — Investor Day (June 2024)
114 slides from Quadient Sa's investor day presentation, Jun 19, 2024
Slide 1: Quadient Capital Markets Day
Quadient Capital Markets Day 19 June 2024 1 © 2024 Quadient. All rights reserved.
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENT This presentation contains forward-looking statements (made pursuant to (i) the safe harbour provisions of the Private Securities Litigation Reform Act of 1995 and (ii) the principles of the French Autorité des Marchés Financiers' guide to periodical disclosures
Slide 3: Agenda
Agenda Elevate to 2030 04 Lockers automation platform Introduction Density and innovation as key drivers of usage 01 Customer value Unique automation platform powering 05 Global capabilities An innovative, efficient and integrated trusted customer connections support and R&D organization 02 Digital
Slide 4: Today's speakers
Today’s speakers Geoffrey Godet Laurent du Passage Petra Wolf Brandon Batt CEO CFO CMO CPTO Chris Hartigan Alain Fairise Benoit Berson Digital Mail Lockers 4 © 2024 Quadient. All rights reserved.
Slide 5: Geoffrey Godet, Chief Executive Officer
Geoffrey GODET Chief Executive Officer 5 © 2024 Quadient. All rights reserved.
Slide 6: Quadient: Elevate to 2030
Elevate to 2030 Raising the standards for intelligent automation Quadient: Elevate to 2030 Customer Recurring Growing Strong investment centric platform business model sustainably proposition Greater customer value Stronger subscription- Higher environmental and Faster long-term growth, proposition
Slide 7: Four major market drivers shaping tomorrow's business world
Elevate to 2030 Four major market drivers shaping tomorrow’s business world 1 2 Digitalization AI & Automation Quadient vision Our vision is to power the world's most trusted connections between businesses, their data and their customers. 4 3 Environmental, Social & Governance E-commerce 7 © 2024 Qu
Slide 8: A partner of choice for intelligent, sustainable & compliant digital transformation
Elevate to 2030 A partner of choice for intelligent, sustainable & compliant digital transformation 1 2 Digitalization AI & Automation Quadient mission We support businesses in their digital transformation and growth journey, unlocking operational efficiency with reliable, secure, and sustainable au
Slide 9: A superior value proposition based on a scalable, flexible and reliable platform
Elevate to 2030 A superior value proposition based on a scalable, flexible and reliable platform Digitalization AI & Automation 1 2 Platform accelerating AI-powered automation digital transformation & platform processing growth for businesses large volumes of all sizes of complex data Quadient Intel
Slide 10: An expertise built on innovation, sustainability and lasting customer satisfaction
Elevate to 2030 An expertise built on innovation, sustainability and lasting customer satisfaction Serving c.350,000 High customer customers and satisfaction scores powering billions consistently above of daily business 95% connections 100 years of Certified Committed to investing in applications to
Slide 11: Strategically positioned to deliver strong and attractive 2030 ambitions
Elevate to 2030 Strategically positioned to deliver strong and attractive 2030 ambitions Subscription-related Current EBIT ESG ambitions revenue >€1bn c.€250m -35% >€250 million additional +€100 million additional CO2 reduction for subscription-related revenue current EBIT scope 1, 2 & 3 vs 2018 bas
Slide 12: Unique automation platform powering trusted customer connections
Petra WOLF Chief Marketing Officer Unique automation platform powering trusted customer 01 connections CUSTOMER 12 © 2024 Quadient. All rights reserved.
Slide 13: An intelligent automation platform addressing key market drivers
Customer value An intelligent automation platform addressing key market drivers Key market drivers Quadient Digitalization AI & Automation Intelligent E-commerce Automation Environmental, Platform Social & Governance 13 © 2024 Quadient. All rights reserved.
Slide 14: A comprehensive platform enriched by a large ecosystem of partners
Customer value A comprehensive platform enriched by a large ecosystem of partners Quadient Intelligent Automation Platform Key market drivers Digital Mail Lockers Digitalization AI & Automation E-commerce Connectors and APIs Environmental, Social & Payment Postal Integration Integration Governance E
Slide 15: An intelligent platform delivering essential customer benefits
Customer value An intelligent platform delivering essential customer benefits Customer benefits Accelerate payments & Key market cash flows drivers Cost savings Reduce delivery & Digitalization Quadient collection costs Intelligent AI & Automation Eliminate manual Automation processes and E-commerce
Slide 16: A large base of 350,000 customers with a stronghold in regulated industries
Customer value A large base of 350,000 customers(1) with a stronghold in regulated industries Split by number of customers Global Regulated Industries Corporations 16% c.1% Finance & Healthcare customers insurance services Midmarket (<1,000 FTEs) Public Sector c.4% customers 18% Midmarket Legal Gove
Slide 17: Two levers, customer acquisition & customer expansion, to optimize growth
Customer value Two levers, customer acquisition & customer expansion, to optimize growth Acquisition Expansion Unlocking Quadient Proven success in customer acquisition Intelligent building customer trust potential in a growing Automation and penetrating the market Platform base 17 © 2024 Quadient.
Slide 18: Quadient is operating in attractive market segments
Customer value Quadient is operating in attractive market segments Key underlying market drivers c.€11bn Digital transformation 2027 continues to be a priority for businesses of all sizes 35% of total digital transformation spend in the coming 3 years are expected to come from the USA 2023-2027 c.€9
Slide 19: Customer acquisition key success factors
Customer value Customer acquisition key success factors Direct Agile squads Acquisition sales force Adapting a >1,000 sales force solution to a new organized by country or industry customer size Quadient Intelligent Automation >16,000 new logos / locker Customer Platform Partners installations on av
Slide 20: Quadient Intelligent Automation Platform recognized as leader in its field
Customer value Quadient Intelligent Automation Platform recognized as leader in its field Parcel and Postal Technology Award 2023 Award-winning drop box innovation for parcel lockers Quadient Intelligent 2023 EcoVadis Platinum rating Automation in the top 1% of our industry Platform More than 30% of
Slide 21: Inspiring leaderboard for Quadient Digital Automation Platform
Customer value Inspiring leaderboard for Quadient Digital Automation Platform IDC Marketscape Aspire CCM 2024 Gartner Invoice-to- Quadrant Knowledge Forrester Wave Worldwide Leaderboard Cash Magic Quadrant, Solutions 2024 Journey Mapping cloud CCM applications, LEADER in: Niche 2024 SPARK Matrix Pla
Slide 22: Customer expansion as a second lever of growth
Customer value Customer expansion as a second lever of growth Cross-sell Up-sell Expansion Leading with digital Platform business transformation model allowing for value proposition sale of additional while incentivizing applications Quadient the salesforce to Intelligent c.70% of 2030 growth cross-
Slide 23: 50% of our Mail customers are in scope for potential cross-sell
Customer value 50% of our Mail customers are in scope for potential cross-sell Proven success of cross-selling A sales team organized for cross-sell over the past 3 years ▪ c.€300m of cumulated revenue generated ▪ Cross-functional leadership team in place to ▪ Cross-sell go-to-market is 50% more eff
Slide 24: Quadient Intelligent Automation Platform praised by customers
Customer value Quadient Intelligent Automation Platform praised by customers Digital Mail Lockers 97% 97% 4.8/5 Post-call Customer satisfaction Service mobile app customer satisfaction score rating 98% “Quadient postage meters – Best for Customer Support.” 4.5 4.8 24 © 2024 Quadient. All rights rese
Slide 25: Leveraging a 1,000+ sales force to capture acquisition & expansion opportunities
Customer value Leveraging a 1,000+ sales force to capture acquisition & expansion opportunities Annual average deal size Global Specialized ASP & >€100K Corporations sales force cost to sell 35 key account managers Midmarket €100K-10K (<1,000 empl.) 465 200 dealers account and partner managers manag
Slide 26: Digital comprehensive platform driving revenue and profitability expansion
Chris HARTIGAN Chief Solution Officer Digital comprehensive platform driving revenue and profitability expansion 02 AUTOMATION PLATFORM 26 © 2024 Quadient. All rights reserved.
Slide 27: Quadient Intelligent Automation Platform: Digital
Digital Quadient Intelligent Automation Platform: Digital Quadient Intelligent Automation Platform Key market drivers Digital Mail Lockers Digitalization AI & Automation E-commerce Connectors and APIs Environmental, Social & Payment Postal Integration Integration Governance ERP Carrier Integration I
Slide 28: Quadient Digital solving critical pain points
Digital Quadient Digital solving critical pain points Business pain points Business pain points Increased organizational complexity from managing multiple systems Key market drivers Pressure to digitalize and automate processes Digitalization High cost and damaged reputation from Quadient regulatory
Slide 29: High value software applications delivered with common technology services
Digital High value software applications delivered with common technology services Applications Integrated Services Communication management Authentication and permissions Document automation AI and analytics Quadient Intelligent forms e-invoicing Digital Automation Customer journey mapping Messagin
Slide 30: Seamless integrations provide platform extension to large customer ecosystem
Digital Seamless integrations provide platform extension to large customer ecosystem Connectors & APIs PAYMENT PROVIDERS ERPs Quadient Digital Automation Platform CORE SYSTEMS OTHER STRATEGIC PARTNERS 30 © 2024 Quadient. All rights reserved.
Slide 31: Addressing pain points to deliver unquestionable customer benefits
Digital Addressing pain points to deliver unquestionable customer benefits Customer benefits Key market Reduce DSO* Get paid Cost benefits and accelerate faster drivers cash flow Digitalization Quadient Mitigate non- Boost customer Digital satisfaction payment risk via AI & Automation credit assessm
Slide 32: AI case study: enhancing data extraction and payment allocation through AI
Digital AI case study: enhancing data extraction and payment allocation through AI Use Case ▪ AI automatically categorizes all inbound accounts 5.0m receivable emails based on subject matter ▪ All emails containing remittance data auto-allocated to payments ▪ Eliminates all manual review & managemen
Slide 33: AI case study: using GenAI to reduce communication authoring time by 60%
Digital AI case study: using GenAI to reduce communication authoring time by 60% Use case 100m+ ▪ All interactive communication authoring, personalization and management facilitated with embedded GenAI capability ▪ Ability for end users to utilize AI to "co-author" Interactive communications per int
Slide 34: Case studies: customer benefits bringing tangible value
Digital Case studies: customer benefits bringing tangible value Automate manual processes to Digitize and integrate to improve Maintain regulatory compliance increase efficiency & lower cost customer experience to lower risk $45 million cost savings p.a. >$3 billion annual invoice Compliant with e-i
Slide 35: Digital automation market segments growing at c.10% p.a.
Digital Digital automation market segments growing at c.10% p.a. Strong underlying trends c.€9bn >2m businesses 2027 potentially addressable across Quadient 4 main geographies Underpenetrated Digital market Cloud application services spendings expected to grow at a c.20% CAGR 2023-2027 between 2023
Slide 36: Competition landscape includes niche vs platform players
Digital Competition landscape includes niche vs platform players Communication management Document Procure-to-pay automation Invoice-to-cash E-invoicing 36 © 2024 Quadient. All rights reserved.
Slide 37: Growth levers supported by dynamic market conditions & comprehensive platform
Digital Growth levers supported by dynamic market conditions & comprehensive platform Acquisition Expansion Expansion c.60% Quadient c.40% of growth to come Digital from expansion from new logos Automation Platform Direct sales Digital-to-Digital upsell Partners Increased number of users Mail cross-
Slide 38: Activating all channels to increase Digital customer base in an optimized way
Digital Activating all channels to increase Digital customer base in an optimized way c.50% from existing Quadient Mail customers Acquisition ▪ Mostly through cross-selling of document automation and communication management applications to mid-sized companies with efficient cost of acquisition Quad
Slide 39: Several customer journeys maximizing accounts penetration
Digital Several customer journeys maximizing accounts penetration Upsell ▪ Purchase of additional Expansion applications within the Digital platform ▪ Increased number of seats and committed volumes Quadient By 2030, Usage Digital Automation 50% of customers ▪ Print, hybrid mail and digital output w
Slide 40: Case studies: integrated business model drives increased account penetration
Digital Case studies: integrated business model drives increased account penetration Acquisition Expansion Acquisition & expansion Mail-to-Digital Digital-to-Digital … Context: Canadian Mail healthcare Context: Enterprise customer in Italy Context: Long-time Mail customer customer using hardware loo
Slide 41: €1.5bn estimated e-invoicing market representing a significant opportunity
Digital €1.5bn estimated e-invoicing market representing a significant opportunity 1 Invoicing is evolving towards electronic invoicing or e-invoicing … INVOICE DELIVERY INVOICE E-INVOICING PRESENTMENT Sending a structured invoice Sending an invoice Sending or presenting an data, in UBL, CII or Fact
Slide 42: Uniquely positioned to drive compelling value from e-invoicing initiatives
Digital Uniquely positioned to drive compelling value from e-invoicing initiatives Comprehensive offer Seamless integration ▪ PDP(1) applicant in France ▪ Large portfolio of ERPs connectors ▪ PEPPOL Access Point in Germany, expanding to cover Europe with ▪ API-first strategy to integrate large inter
Slide 43: Quadient Digital to lead the market by 2030
Digital Quadient Digital to lead the market by 2030 >€500m >90% c.30% Subscription EBITDA Revenue related revenue margin 43 © 2024 Quadient. All rights reserved.
Slide 44: Maximize Mail performance whilst developing our assets for the future
Alain FAIRISE Chief Solution Officer Maximize Mail performance whilst developing our assets for the future 03 AUTOMATION PLATFORM 44 © 2024 Quadient. All rights reserved.
Slide 45: Quadient Intelligent Automation Platform: Mail
Mail Quadient Intelligent Automation Platform: Mail Quadient Intelligent Automation Platform Key market drivers Digital Mail Lockers Digitalization AI & Automation E-commerce Connectors and APIs Environmental, Social & Payment Postal Integration Integration Governance ERP Carrier Integration Integra
Slide 46: Quadient Mail solves multiple pain points throughout the mailing process
Mail Quadient Mail solves multiple pain points throughout the mailing process Business pain points Inaccurately rated and paid postage Key market drivers Long time and manual labor to assemble large batches of mail Digitalization Inconvenient to pay for postal mailing & Quadient shipping Mail AI & A
Slide 47: Applications for mailers of all sizes
Mail Applications for mailers of all sizes Applications Integrated Services Franking machines Postage funds management and financing Quadient Folder inserters Online postage, certified and tracked mail Mail Automation Letter openers Parcel shipping applications Platform Digital printing Intelligent
Slide 48: Seamless integration with multiple postal and carrier organizations
Mail Seamless integration with multiple postal and carrier organizations Integration with postal and carrier platforms Quadient Mail Automation Platform 48 © 2024 Quadient. All rights reserved.
Slide 49: Mail automation delivers cost savings, convenience & compliance
Mail Mail automation delivers cost savings, convenience & compliance Customer benefits Key market Cost benefits Get the best postage Reduce costs for customer rates drivers communication Digitalization Quadient Mail AI & Automation Automation Enable in-house Professional image E-commerce Convenience
Slide 50: Case studies: Mail Automation Platform delivers tangible customer benefits
Mail Case studies: Mail Automation Platform delivers tangible customer benefits Drive compliance, efficiency and savings through Adapt and transform Simplify mail automation 80% reduction of labor costs +40% in mail communications Convenience with mail creation automation capacity to meet the demand
Slide 51: Predictable Mail core segments worth €2.4bn globally
Mail Predictable Mail core segments worth €2.4bn globally Global Transactional Mail Volume forecast c.€2.4bn (mail volume in bn pieces) 2023 CAGR 90 -4.8% 83.7 78.8 76.5 80 73.4 68.8 70 65.4 68.8 62.2 59.2 56.4 60 50 64.4 60.1 55.6 51.1 c.€2.0bn CAGR 2027 40 -7.2% 30 20 10 Mail core segments 0 2019
Slide 52: Several historical players with a global presence
Mail Several historical players with a global presence • #1 in Europe • #2 global player • Full range • World leader in Inserting Solutions • #4 player • Present in Europe only Quadient acquired Frama • Focused on low-end in February 2024 • No Folder Inserter manufacturing • #1 global player • Prese
Slide 53: Maximizing Mail performance whilst enabling Quadient assets for the future
Mail Maximizing Mail performance whilst enabling Quadient assets for the future What we believe Choices made Resilient Digital Upgraded Go beyond Mail transformation Mail applications Mail ▪ Decline in Mail is gradual ▪ Best positioned to ▪ Investing in innovation ▪ Grow the customer ▪ Opportunities
Slide 54: Case study: innovation is a key lever of Quadient Mail resilience
Mail Case study: innovation is a key lever of Quadient Mail resilience Steady pace of new product 95% introductions +14% Tokyo Residents live within a 5-minute ▪ From low-cost hardware facelifts to value-add software enhancing intelligent device benefits Mailcenter management walk of a Quadient lock
Slide 55: A balance of acquisition and expansion keeps our customer base healthy
Mail A balance of acquisition and expansion keeps our customer base healthy Acquisition Expansion c.20% Quadient c.80% of growth to come Mail from expansion from new logos Automation Platform Direct sales Technology upgrades Partners and OEMs Cross sell Digital and Lockers Lead generation engine Add
Slide 56: New logo acquisition fuels outperformance in a declining market
Mail New logo acquisition fuels outperformance in a declining market 60% of acquisitions are new to Quadient or new to Mail Acquisition ▪ All market segments, cost of acquisition matched to revenue potential Partners ▪ 300+ dedicated partners allowing for optimized geography coverage and Quadient c.
Slide 57: As a trusted advisor, we leverage our multi-year customer relationships
Mail As a trusted advisor, we leverage our multi-year customer relationships Upsell ▪ Automate printed communications creation: Expansion from data to envelope ▪ Compliance upgrades ▪ Mailing and shipping application Usage Quadient 21% increase in revenue ▪ All interactions are monetized Mail per cu
Slide 58: Case studies: from Mail relationships to success with the full Quadient portfolio
Mail Case studies: from Mail relationships to success with the full Quadient portfolio Mail and Lockers Mail growth Mail and Digital Context: Existing Mail customer with Context: Mail Service Provider Context: Triumph Motorcycles over 47,000 students, the task of growing into diverse mail applicatio
Slide 59: Resilient financial trends out to 2030
Mail Resilient financial trends out to 2030 c.€600m >65% 20-25% Subscription EBITDA Revenue related revenue margin 59 © 2024 Quadient. All rights reserved.
Slide 60: Density and innovation as key drivers of usage
Benoit BERSON Chief Solution Officer Density and innovation as key drivers of usage 04 AUTOMATION PLATFORM 60 © 2024 Quadient. All rights reserved.
Slide 61: Quadient Intelligent Automation Platform: Lockers
Lockers Quadient Intelligent Automation Platform: Lockers Quadient Intelligent Automation Platform Key market drivers Digital Mail Lockers Digitalization AI & Automation E-commerce Connectors and APIs Environmental, Social & Payment Postal Integration Integration Governance ERP Carrier Integration I
Slide 62: Quadient Lockers solves multiple pain points sustainably
Lockers Quadient Lockers solves multiple pain points sustainably Business pain points High cost of last & first mile delivery & collection Key market drivers Dealing with parcel burden Digitalization Quadient Avoid “buy online, pick up in store” lanes Lockers AI & Automation High CO2 impact of deliv
Slide 63: Providing innovative, durable and robust applications
Lockers Providing innovative, durable and robust applications Applications Integrated Services Parcel pick up Secured & scalable platform Returns Superior integration capability Drop box Quadient Label printing Monitoring with Lockers proactive alerts Indoor/outdoor Automation Business intelligence
Slide 64: Offering unique & structural integration
Lockers Offering unique & structural integration Connectors and APIs providing integration with: CARRIERS RETAILERS/E-RETAILERS Quadient Lockers Automation Platform TECHNOLOGICAL PROVIDERS (SOFTWARE & HARDWARE) 64 © 2024 Quadient. All rights reserved.
Slide 65: Providing seamless parcel and beyond experience, cost & operational efficiencies
Lockers Providing seamless parcel and beyond experience, cost & operational efficiencies Customer benefits Simplify the handling Key market Cost benefits Reduce delivery & of any item collection costs (parcels and beyond) drivers Digitalization Quadient 24/7 convenient Enhance “buy online, Lockers p
Slide 66: Case studies: delivering substantial benefits for customers
Lockers Case studies: delivering substantial benefits for customers Drive efficiency and savings Build exceptional experiences Deliver securely across physical through automation one connection at a time and digital channels >6m second home delivery >30K transactions picked up 6,000+ parcels & attem
Slide 67: E-commerce supporting demand growth in Quadient selected geographies
Lockers E-commerce supporting demand growth in Quadient selected geographies Online retail to grow 9% p.a. over 2023-27 c.€600m Retail e-commerce market; $bn; Core geographies (1) 2027 Other volume drivers +9% p.a. 2.1 Significant levels of return 18% US returns in value in 2023 1.5 1.3 1.4 20% 2023
Slide 68: Quadient is scaled to compete with a unique open, global & multi-vertical positioning
Lockers Quadient is scaled to compete with a unique open, global & multi-vertical positioning OPERATORS CLOSED NETWORKS For out of home OPEN NETWORKS For other verticals parcel infrastructure Residential, universities, retailers, corporate… SUPPLIERS OF LOCKERS 68 Restricted to the US, Europe, Japan
Slide 69: Growing through acquisition and expansion
Lockers Growing through acquisition and expansion Acquisition Expansion c.40% Quadient c.60% of growth to come Lockers from expansion from new logos/new sites Automation Platform Data In selected geographies Usage & satisfaction Key partners Upsell Differentiate Cross-sell Direct & indirect sales Op
Slide 70: Acquiring new sites
Lockers Acquiring new sites Selected e-commerce countries and sites Acquisition ▪ Meeting the right criteria Key partners ▪ Carriers ▪ Solution providers Quadient c.3,000 ▪ Large host networks Lockers new sites/installations Differentiate Automation on average p.a. Platform ▪ Differentiated position
Slide 71: Selecting the right e-commerce countries
Lockers Selecting the right e-commerce countries Quadient is present in 4 of the top e-commerce countries … … with the highest potential for network development Top retail e-commerce countries 2023 market size ($bn) Lockers network density (# of lockers per 10k inhabitants, 2023) China 2,200 China1
Slide 72: Increasing the profitability of the installed base
Lockers Increasing the profitability of the installed base Gather & leverage data ▪ Systematic gathering, monitoring Expansion and actioning of data Optimize locations ▪ Optimize to best locations with AI Quadient Lockers 15% average Cross-sell ▪ Optimize other platforms’ customer Automation growth
Slide 73: AI case study: enhanced delivery model & installed based profitability through AI
Lockers AI case study: enhanced delivery model & installed based profitability through AI Main use cases ▪ Machine at capacity 150 Data characteristics ▪ Low usage machines ▪ Identification of new locations Data & predictive model ▪ Usage ▪ Satisfaction ▪ Socio demographics 1,160,000 Increased profi
Slide 74: Density and innovation as key drivers of usage
Lockers Deploy, monetize, expand usage Density and innovation as key drivers of usage In selected key Open Innovation to Focus on countries infrastructure boost usage density ▪ High e-commerce share ▪ Agnostic approach ▪ Consolidation of returns ▪ Roll out of lockers to reach critical proximity ▪ Ex
Slide 75: Open network model: Japan experience
Lockers Open network model: Japan experience PHASE 1: FAST BASE ROLL-OUT PHASE 2: DENSIFICATION & FLOWS PHASE 3: MATURITY & OPTIMIZATION (2016-2019) Priorities (2020-2023) Priorities (2024-…) Priorities ▪ Fast recruit of hosts ▪ Densify network ▪ Optimize location ▪ Onboard carriers ▪ Onboard carrie
Slide 76: Case study: replicating the Japanese model in the UK
Lockers Case study: replicating the Japanese model in the UK PHASE 1: FAST BASE ROLL-OUT PHASE 2: DENSIFICATION & FLOWS PHASE 3: MATURITY & OPTIMIZATION (2016-2019) (2020-2023) (2024-…) IB > 7,000 devices ~ 1,330 ~ 400 ~ 100 1 4 4 2016 2020 2024 (2023-2026) (2027-2030) (2031-…) TARGET IB > 5,000 dev
Slide 77: Ambitions by 2030
Lockers Ambitions by 2030 >40,000 >€200m c.20% Lockers installed EBITDA Revenue base margin 77 © 2024 Quadient. All rights reserved.
Slide 78: An innovative, efficient and integrated support and R&D organization
Brandon BATT Chief People and Transformation Officer An innovative, efficient and integrated support and R&D 05 organization GLOBAL 78 © 2024 Quadient. All rights reserved.
Slide 79: Unique tech expertise spanning from hardware to software
Global capabilities Unique tech expertise spanning from hardware to software c.€280m c.€65m/year c.300 cumulated R&D spending R&D spending family patents since 2019 2024-2026e 550+ AI innovation & 6 engineers deployment R&D hubs across North America and Europe & developers ▪ Combined Hardware and So
Slide 80: A global & integrated supply chain generating c.€20m of cost savings p.a.
Global capabilities A global & integrated supply chain generating c.€20m of cost savings p.a. Generic high range, equipment manufactured Generic MS & DS in Europe (Low/Mid range) Low/mid range equipment to be Generic low and mid remanufactured range equipment in Asia manufactured from Asia Generic l
Slide 81: Circular economy in Quadient platforms benefits customers and own operations
Global capabilities Circular economy in Quadient platforms benefits customers and own operations Quadient has been engaged in circular economy and remanufacturing for nearly 20 years 63% Raw materials Energy of Mail products placed in Waste Re-used parts & 2023 issued from components remanufacturing
Slide 82: Integrated customer support resulting into cost synergies & savings of c.€15m in 2023
Global capabilities Integrated customer support resulting into cost synergies & savings of c.€15m in 2023 >3m inbound requests in 2023 Digital channels / self-service ▪ Tools standardization ▪ Upgraded self-service user experience c.65% self-service +25% vs 2022 ▪ Increased use of bots, machine lear
Slide 83: ESG commitments benefiting our stakeholders and the environment
Brandon BATT Chief People and Transformation Officer ESG commitments benefiting our stakeholders 06 and the environment GROWING 83 © 2024 Quadient. All rights reserved.
Slide 84: Our 2030 vision to guide Quadient's long-term sustainable growth
Growing sustainably Our 2030 vision to guide Quadient’s long-term sustainable growth People & Customers Environment Communities Building trust with Elevate our people Grow sustainably, reducing market leading to drive our success our impact on the planet applications Reliable, secure and Elevate to
Slide 85: Elevate our customers | Ambitions and goals for 2024-2026
Growing sustainably Elevate our customers | Ambitions and goals for 2024-2026 Customers ▪ 95% overall customer satisfaction maintained ▪ 80% of our applications’ portfolio covered by life-cycle assessments by 2026, Building trust with supporting product teams to continuously improve our environmenta
Slide 86: Elevate our people | Ambitions and goals for 2024-2026
Growing sustainably Elevate our people | Ambitions and goals for 2024-2026 ▪ Continue our commitment to diversity and extend fully to career People & development, progression and compensation: Communities ‐ Reach 35% of women within management, and 27% in the Company’s Elevate our people Extended Le
Slide 87: Elevate our impact | Goals for 2024-2026 and ambitions for 2030
Growing sustainably Elevate our impact | Goals for 2024-2026 and ambitions for 2030 Environment ▪ Reduce GHG emissions by 2026 vs. base year on: Scope 1 & 2 (vs. 2018) Scope 3 (vs. 2018) Grow sustainably, reducing our impact on the planet - 55% - 9% 2023 - 59% 2023 - 20% What does it mean? • Near-te
Slide 88: Attractive combination of growth and profitability
Laurent du PASSAGE Chief Financial Officer Attractive combination of growth and profitability 07 IN NUMBERS 88 © 2024 Quadient. All rights reserved.
Slide 89: Quadient: a global presence
Elevate in numbers Quadient: a global presence 2023 revenue(1) breakdown by geography North Main America European 57% of countries revenue 33% of revenue International 10% of revenue Active in c.4,700 27 countries employees (1) €1,062m Quadient consolidated revenue in 2023 89 © 2024 Quadient. All ri
Slide 90: Steady organic growth led by a high share of subscription-related revenue
Elevate in numbers Steady organic growth led by a high share of subscription-related revenue Revenue organic growth Share of subscription-related revenue (%) (%) 1,071 1,062 1,029 1,024 31% 30% 4.3% 37% 34% c.€740m 3.4% 3.1% of subscription 2.7% related revenue in 2023 1.9% 1.4% 69% 70% i.e. c.€90m
Slide 91: A proven recurring business model
Elevate in numbers A proven recurring business model Digital Mail Lockers ▪ Residential, universities & ▪ Large accounts (c.€100k p.a., ▪ Small and medium-sized Customers / corporate (€20k - €100k 1-3 years commitment) enterprises (<€1k p.a.) Average Selling Price / hardware), annual renewal ▪ Mid-s
Slide 92: Positive operating trajectory, moving to current EBIT for guidance
Elevate in numbers Positive operating trajectory, moving to current EBIT for guidance Current EBIT Current EBIT before acquisition-related expenses (€m) (€m) +3.3% +6.1% organic organic CAGR CAGR 152 151 157 140 147 147 132 135 2020 2021 2022 2023 2020 2021 2022 2023 2024 guidance confirmed: organic
Slide 93: Transition to SaaS completed
Elevate in numbers | Digital Transition to SaaS completed +€83m in Annual Recurring Revenue Share of SaaS customers (2020-23) As a % of total customers €m 220 206 187 82% 180 FY 2023 147 65% 140 +19% FY 2020 123 2020-23 CAGR 100 2020 2021 2022 2023 c.€90m of yearly subscription Double digit Digital
Slide 94: 2026 & 2030 ambitions: strong profitability improvement
Elevate in numbers | Digital 2026 & 2030 ambitions: strong profitability improvement Digital revenue (2020-2030e) Digital EBITDA margin (2020-2030e) €m % 600 40 500 c.10% 30 400 CAGR c.7% >9pts 300 CAGR 20 +2pts 200 245 10 11.8% 100 0 0 20 21 23 26 30 20 21 23 26 30 Digital 2023-2026 indicative traj
Slide 95: Outperforming expectations with 0.6% 2020-2023 organic revenue CAGR
Elevate in numbers | Mail Outperforming expectations with 0.6% 2020-2023 organic revenue CAGR Share of upgraded installed base Ambitious remanufacturing strategy aligning financial profitability with ESG targets 32% FY 2023 Share of 63% remanufactured 5% FY 2023 products placed FY 2020 Mail 2020 202
Slide 96: 2026 & 2030 ambitions: continuous significant outperformance vs the market
Elevate in numbers | Mail 2026 & 2030 ambitions: continuous significant outperformance vs the market Mail revenue (2020-2030e) Mail EBITDA margin (2020-2030e) €m +0.6% % c.-3% CAGR CAGR 800 40 -2pts -3 to 729 -5pts 600 30 30% 400 20 200 10 0 0 20 21 22 23 26 30 20 21 22 23 26 30 Mail 2023-2026 indic
Slide 97: Building the open-network leader
Elevate in numbers | Lockers Building the open-network leader Deployment of lockers Installed base current EBIT(1) margin Installed Base deployment (2020-23) 20.2k 13.6% FY 2023 FY 2023 13.0k +55% 11.3% FY 2020 FY 2021 €9m of yearly subscription EBITDA margin Lockers 2020 2021 2022 2023 related reve
Slide 98: 2026 & 2030 ambitions: EBITDA breakeven in 2024
Elevate in numbers | Lockers 2026 & 2030 ambitions: EBITDA breakeven in 2024 Lockers revenue (2020-2030e) Lockers EBITDA margin (2020-2030e) €m % 250 20 200 >13pts 10 -9pts >10% 150 +3% CAGR CAGR 0 100 88 -3.0% -10 50 0 -20 20 21 22 23 26 30 20 21 22 23 26 30 Lockers 2023-2026 indicative trajectory
Slide 99: Disciplined capital allocation policy
Elevate in numbers Capital allocation policy fostering profitable growth Disciplined capital allocation policy Capex M&A Leverage Return to c.€300m over 2024-2026 Opportunistic portfolio Efficient Balance Sheet shareholders management ▪ Lockers open network ▪ Bolt-on acquisitions to ▪ Target leverag
Slide 100: Increased investments to secure future recurring revenue
Elevate in numbers Increased investments to secure future recurring revenue Average annual capex by Solution (2021-2026e) €93m +€7m c.€100m Capex level based on the nature and maturity of 1% the platforms: 22% 25% • Mail capex mostly linked to maintenance and new rented equipment 30% • Digital inves
Slide 101: Opportunistic portfolio management
Elevate in numbers Opportunistic portfolio management Strengthening the Focus on leading platforms through positions and bolt-on acquisitions value creation Flexible approach to the Quadient portfolio 101 © 2024 Quadient. All rights reserved.
Slide 102: Solid financial structure
Elevate in numbers Solid financial structure Net debt reduction…. … translating into a lower leverage 777 769 3.2 736 3.1 74 65 709 3.0 50 2.9 46 Leverage ratio Efficient balance 266 270 242 226 sheet 2.1 2.0 1.8 2026 target of leverage 1.65 Leverage ratio ratio excluding leasing 438 434 443 437 exc
Slide 103: When customer leasing portfolio declines, it generates cash
Elevate in numbers When customer leasing portfolio declines, it generates cash Quadient customer leasing portfolio evolution (in €m) 698 Excess of cash, in €m, reflected into Free Cash Flow statement 62 under change in lease receivables 38 598 595 595 598 8 8 0 3 39 36 31 Jan Change FX impact 31 Jan
Slide 104: Dividend policy aligned with the next phase of Quadient's development
Elevate in numbers Dividend policy aligned with the next phase of Quadient’s development 20% minimum pay-out ratio(1) Consider returning excess cash in the form of share buybacks (1) pay-out ratio on net income Group share 104 © 2024 Quadient. All rights reserved.
Slide 105: Future revenue growth driven by subscription; current EBIT growing twice as fast
Elevate in numbers Future revenue growth driven by subscription; current EBIT growing twice as fast Quadient revenue (2020-2030e) Quadient current EBIT (2020-2030e) €m €m 1,400 >1.5% >€1.3bn 300 +2.5% CAGR 1,200 CAGR Licenses & hardware >€250m 1,000 Lockers subscription >3% c.+€90m related revenue 2
Slide 106: Quadient strategy: lead in Mail, win in Digital and Lockers
Elevate to 2030 Quadient strategy: lead in Mail, win in Digital and Lockers Elevate to 2030 Customer Recurring Growing Strong investment centric platform business model sustainably proposition 106 © 2024 Quadient. All rights reserved.
Slide 107: Appendix
Appendix 107 © 2024 Quadient. All rights reserved.
Slide 108: Mail leasing and rental flows business models and treatments
Mail leasing and rental flows business models and treatments Day of placement Over contract term (5 years) • Revenue: interests on lease receivable Income • Revenue: price of equipment • Costs: leasing administrative costs statement • Costs: costs of good sold, selling expenses • Financial results:
Slide 109: Well-spread maturity of leasing portfolio – as of 31 January 2024
Well-spread maturity of leasing portfolio – as of 31 January 2024 Future cash flows from leasing portfolio (in €m) 234 149 107 68 34 5 2024 2025 2026 2027 2028 2029 109 Closing rates as of 31 January 2024: EUR/USD = 1.08; EUR/GBP = 0.85 © 2024 Quadient. All rights reserved.
Slide 110: Solutions revenue, EBITDA and current EBIT over FY 2020-2023
Solutions revenue, EBITDA and current EBIT over FY 2020-2023 Digital 2020 2021 2022 2023 Mail 2020 2021 2022 2023 Revenue (€m) 183 201 227 245 Revenue (€m) 706 710 747 729 of which subscription of which subscription 59% 67% 75% 80% 72% 69% 69% 68% related revenue related revenue EBITDA 20 22 17 29 E
Slide 111: Climate strategy to allow Quadient to achieve 2050 Net zero
Climate strategy to allow Quadient to achieve 2050 Net zero Direct & indirect Other indirect emissions (scope 1 & 2) emissions (scope 3) Current target 50% reduction by 2030 vs 2018 30% reduction by 2030 vs 2018 2023 achievement 55% reduction achieved in 2023 9% reduction achieved in 2023 New target
Slide 112: Glossary – Key acronyms
Glossary – Key acronyms AI Artificial Intelligence ERP Enterprise Resource Planning AP Accounts Payable ESG Environment, Social and Government API Application programming interface FTE Full-time equivalent AR Accounts Receivable GenAi Generative Artificial Intelligence ARR Annual Recurring Revenue G
Slide 113: Glossary – Key definitions
Glossary – Key definitions Name Scope Definition Organic variation All Variation excluding forex impact and scope effect Leverage Ratio Group Net Debt / EBITDA Leverage Ratio excl. Leasing Group Net Debt excl. Leasing / EBITDA excl. Leasing Digital Digital New name of Intelligent Communication Autom
Slide 114: Thank you
Thank you 114 © 2024 Quadient. All rights reserved.