Solutions 30 Se · EURONEXT:S30
Solutions 30 — Investor Presentation (January 2020)
53 slides from Solutions 30's investor presentation, January 2020
Slide 1: Investor Presentation January 2020
INVESTOR PRESENTATION January 2020
Slide 2: Cautionary statement
Cautionary statement 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 o
Slide 3: Who We Are
WHO WE ARE Solutions30 Solutions for New Technologies
Slide 4: The European Leader in Last Digital Mile Services
THE EUROPEAN LEADER IN LAST DIGITAL MILE SERVICES +28% KEY FIGURES HISTORY OF GROWTH 485.6 In €m 441.8 €441.8m €485.6m 63% of recurring activities (maintenance) 2018 revenue 9M 2019 revenue 274.5 191.8 9,000 personnel 60,000 125.2 94.2 111.7 6,000 direct employees Call-outs per day 54.7 63.8 77.1 36
Slide 5: Solutions 30 is an integrated services company
Solutions 30 is an integrated services company which aims at making digital technologies easily accessible to everyone. We accelerate the transition to digital by delivering ‘last mile” solutions, including connected equipment deployment and assistance. We provide one-stop-shop solutions to end-clie
Slide 6: Our client needs, our purpose
OUR CLIENT NEEDS OUR PURPOSE Outsourcing of a critical but non-core Delivering field business to a trusted services faster, better partner and cheaper 6
Slide 7: An established portfolio of loyal clients
An established portfolio of loyal clients Year of market entry 2003 2011 2011 2009 2009 IT support and outsourcing Retail Security Energy IoT Telecoms: High Speed Internet We provide a mission-critical service as a trusted partner. Our contracts are typically multi-year with a very high renewal rate
Slide 8: Trusted partner of large technology companies
TRUSTED PARTNER OF LARGE TECHNOLOGY COMPANIES At the heart of our model, a powerful IT Better Cheaper Faster platform supports our business 15 years Pooling of Density in key of experience clients' needs: markets: lower strengthening throughout economies of travel time vs customer loyalty and Europe
Slide 9: A fully automated IT platform
A FULLY AUTOMATED IT PLATFORM Customer’s CRM End customers S30.net Ticket Feedback Physical intervention Individuals & Businesses Planning/ Remote Logistics Dispatching support Tickets managed in the month OK to invoice ERP S30.net Invoice Payment 60-90 days 9
Slide 10: Governance
GOVERNANCE Alexander Sator I Caroline Tissot I Francesco Sefarini I SUPERVISORY BOARD Chairman of the Supervisory Board Member of the Supervisory Member of the Supervisory since September 2018 Board since May 2017 Board since May 2017 Paul Raguin I Jean-Paul Cottet I Yves Kerveillant I Member of the
Slide 11: Executive Committee
EXECUTIVE COMMITTEE Group Tarik Azougaghi Caroline Petit Joao Martinho Franck D’Aloia Luc Brusselaers VP Accounting & Head of Legal COO Deputy, VP COO Deputy, VP Business Chief Control Energy Europe integrations Revenu Officer Benelux Germany Italy Koen Verbergt Christophe Marco Bielen Volker Meyer
Slide 12: Investment Thesis
INVESTMENT THESIS # 1 FIRST MOVER ADVANTAGE # 2 ▪LOW RISK SERVICE BUSINESS ▪ Solutions 30 was founded in 2003 ▪ Asset light business with high returns and is a pioneer in the European on capital market ▪ Large volumes of small individual ▪ Our ‘moat’: long-term client jobs – no project work relation
Slide 13: Growth Strategy
“Solutions for New Technologi
Slide 14: Robust Growth Momentum
ROBUST GROWTH MOMENTUM average annual growth +28% 2007 to 2018 Revenue x 2.3 441.8 raised at IPO in 2005 €1.2m Growth financed from cash flow since IPO Revenue x 2.2 In millions of euros 274.5 Revenue in France Revenue – other countries 191.8 EBITDA/revenues 125.2 111.7 94.2 9.0% 9.0%(*) 9.2%(*) 9,3
Slide 15: Capital allocation prioritises growth
CAPITAL ALLOCATION PRIORITISES GROWTH TO REACH DOMINATING POSITION IN ALL THE GEOGRAPHIES # 1 SECTOR DIVERSIFICATION # 2 ▪GEOGRAPHICAL DIVERSIFICATION From IT to energy: supporting the digitisation of A strategy of selective geographical expansion: the economy in all sectors accessibility, market st
Slide 16: Sector Diversification
#1 | Sector Diversification Solutions30 Solutions for New Technologies Sol
Slide 17: Key Trends
KEY TRENDS ▪ Solutions 30's clients need to deliver innovation to their customers ▪ Key innovation trends mean increasing requirement for field services Collaborative Innovation Helping clients to become more successful Cloud - Edge Social context computing Vendor aggregation Internet of Everything
Slide 18: Portfolio Development
PORTFOLIO DEVELOPMENT TELECOM ENERGY IT Group level SECTOR GEOGRAPHICAL opportunities DIVERSIFICATION IOT SECURITY RETAIL EXPANSION Portfolio Documentation of core Start-up style portfolio development Portfolio evolution programs and export expansion 18
Slide 19: Selected Current Growth Drivers
SELECTED CURRENT GROWTH DRIVERS Client base Diversified end-markets Macro trends Top 4 clients <50% of revenue. Telecom, IT, Energy, Retail, Digitalization, fast connections, Stable, utility-style client base Mobility, Security, Health, Home IoT, industry 4.0, Smart City etc. Telecoms: Focus on High
Slide 20: High Speed Internet (FTTH) – 5 Year View
SELECTED CURRENT GROWTH DRIVERS HIGH SPEED INTERNET (FTTH) – 5 YEAR VIEW FTTH/B subscriber forecast (m) Household penetration forecast 2020 2025 (subscriptions/households) 2020 2025 0 5 10 15 20 25 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% Spain Sweden France Portugal ▪ C 35m new subscribers Romania
Slide 21: FTTH in France
SELECTED CURRENT GROWTH DRIVERS FTTH IN FRANCE FTTH Subscribers 5,805 Homes passed As of 30 June 2019 15.6m homes passed 15,600 Connected Homes 5.8m FTTH Subscribers 29,355 FTTH CONNECTIONS (Cumul) FRENCH FTTH ACTIVITY FRENCH FTTH ACTIVITY 18 SEGMENTATION AS OF 2019 SEGMENTATION AS OF 2024 16 Instal
Slide 22: FTTH in Germany
SELECTED CURRENT GROWTH DRIVERS FTTH IN GERMANY As of 2018 7% coverage GERMANY IS AT A TURNING POINT WITH 31% take-up 2% homes connected SIGNIFICANT OPPORTUNITIES AHEAD FTTH CONNECTIONS (Cumul) 17.0 ▪ An under-served market ▪ Migration from copper-based and cable-based 14.0 architectures to full-fib
Slide 23: Smart Meters in Germany
SELECTED SHORT-TERM GROWTH DRIVERS SMART METERS IN GERMANY ▪ 2015 law for the 'digitisation of the Energy Transition' ▪ Implementation leaders are large distributors 2015 2017 2020 2032 Law for the Mandatory for Mandatory for consumers Mandatory for all 'digitisation of the consumers >10,000 >6,000
Slide 24: EV Charging
SELECTED FUTURE GROWTH DRIVERS EV CHARGING ▪ Majority of charging stations is non-public, e.g. at homes or workplaces. Ratio of EVs to charging stations is above 1x, e.g. more stations than vehicles. ▪ Multi-billion investments forecast over the next five years alone, with Europe being ahead of the
Slide 25: EV Charging market segments
SELECTED FUTURE GROWTH DRIVERS EV CHARGING ▪ 95% lease/purchase decision HARDWARE MANUFACTURERS @Home ▪ “Low cost” home installation 70%* ▪ ▪ Apartment & building society solutions Car brands, lessors, fleet owners CHARGE POINT OPERATORS ▪ Facility and fleet managers @Work ▪ Location owners ▪ High q
Slide 26: EV Charging - Commercial Platform
SELECTED FUTURE GROWTH DRIVERS EV CHARGING - COMMERCIAL PLATFORM Program presentation ▪ Customer presentation ▪ Customer proposal ▪ Standard statement of work Operations manual ▪ Solutions design ▪ Market segment specifics ▪ Operational workflows Pricing ▪ Standard Services Price Book ▪ Additional S
Slide 27: 5G
SELECTED FUTURE GROWTH DRIVERS 5G ▪ According to market research firm International Data Corporation (IDC), 5G global infrastructure spending is set to grow from $528 million in 2018 to $26 billion in 2022 – a CAGR of 118%. ▪ To improve transmission, mobile operators must undertake large-scale fiber
Slide 28: Geographical Diversification
#2 Geographical Diversification
Slide 29: Selected Growth Drivers: Poland
SELECTED GROWTH DRIVERS POLAND Solutions 30 entered the Polish market through a client-led approach. This proven strategy to establish a first presence de-risks the investment. The group’s experience allows for significant value- # 1 Telekom Usługi / Sprint 13.09.2019 / 31.10.2019 ca. 280 technician
Slide 30: A single organisation
#3 | Asingle organisation Solutions30 Solutions for New Technologies Sol
Slide 31: S30.net
IT Engineers Inshore locations + Philippines, Poland, Tunisia. S30.net Planning/ Remote Logistics Dispatching support 7 remote 8 logistics 8 centres Physical interventions support centres centres Offshore locations: Algeria, Tunisia, Morocco, Portugal, Poland, Ukraine, Moldavia France, Belgium, Neth
Slide 32: Market Consolidation
#4 | Market Consolidation Solutions30 Solutions for New Technologies Sol
Slide 33: Driving consolidation is our best use of capital
DRIVING CONSOLIDATION IS OUR BEST USE OF CAPITAL GROWTH PROFITABILITY DIVIDEND Organic growth >30 Cost discipline Not currently despite strong planned ▪ European market leader and Driven by ever growth Bolt-on natural consolidator growing utilization of acquisitions digital technology ▪ Balanced gro
Slide 34: Value creation through consolidation
VALUE CREATION THROUGH CONSOLIDATION Solutions 30 is a consolidator in a fragmented European market, with hundreds of small, independent companies. The group’s size allows for significant value-accretion through bolt-on-acquisitions. Acquisitions follow a strict set of criteria: NATIONAL REACH Targe
Slide 35: 2018-19 Acquisition Recap
2018-19 ACQUISITION RECAP SPAIN FRANCE BENELUX POLAND ITALY ▪ October 2018 ▪ August 2018 ▪ June 2018 ▪ November 2019 ▪ October 2019 Remaining stake Field Services Poland Increased stake to 76% ▪ December 2018 ▪ July 2019 ▪ January 2020 Minority stake 35
Slide 36: 9M 2019 Revenue
9M 2019 REVENUE Solutions 30 | Soluti echnolog
Slide 37: 2019 On Track
2019 ON TRACK 485.6 9M 2019 441.8 +66.8% 176.9 over 9M 2018 +68% 162.7 (+30.1% organic) Of which In millions of euros organic 274.5 +45% Revenue in France Revenue – other countries +65% 96.6 191.8 Of which +59% organic Of which +21% organic 58.2 +57% 125.2 308.7 +6% Of which 279.1 +33% organic 36.7
Slide 38: Continued strong growth in Q3 2019
CONTINUED STRONG GROWTH IN Q3 2019 167.9 61.9 114.4 In millions of euros +37.8% Q3 2019 Of which Revenue in France organic Revenue – other countries 44.9 +25.4% +46.8% over Q3 2018 (+22.2% organic) +52.6% 106.0 Of which 69.5 organic +20.1% Q3 2018 Q3 2019 38
Slide 39: 9M 2019 Revenue: +66.8% (+30.1% organic)
9M 2019 REVENUE: +66.8% (+30.1% organic) June 2018: JFS October 2018: Salto July 2019: i-Project July 2019: Provisiona In millions of euros August 2018: CPCP December 2018 : Sotranasa March 2018: DXC July 2018: Unit-T * Organic growth from acquired companies 39 39
Slide 40: France 9M 2019
FRANCE REVENUE BY ACTIVITY 0.8 -50% 13.2 1.7 9M 2019 +20% +7% 76.4 1.6 +70% 32.5 1.4 12.4 44.8 -1% 33.0 184.0 +99% 92.6 €308.7 9M 2018 9M 2019 million Telecom IT Energy Retail Security Internet of Things €185.8 million +66.2% TURNOVER BROKEN DOWN BY ACTIVITY 1% 1% 1% 0.3% Of which organic 6% 4% +18.
Slide 41: France 9M 2019
FRANCE 9M 2019 TELECOM : +99 % ▪ Ultra high-speed Fibre plan drives growth acceleration ▪ Keep strengthening positions with the 3 main operators ▪ Startup of new activities promoted by local municipalities (« RIP » / public Network) Growth keeps being driven by telecom & energy ENERGY : +70% ▪ Roll-
Slide 42: Other Countries 9M 2019
OTHER REVENUE BY COUNTRY 20.6 COUNTRIES +14% 23.1 9M 2019 20.2 +226% 90.6 6.3 +139% 38.0 40.8 +4% 42.6 €176.9 9M 2018 9M 2019 million Germany Benelux Spain Italy €105.3 million +67.9% REVENUE BROKEN DOWN BY COUNTRY Of which organic 49.7% 13% 19% 24% 9M 2018 9M 2019 12% 39% 6% 36% 51% 9M 2018 9M 2019
Slide 43: Other Countries 9M 2019
OTHER BENELUX: +139% ▪ Consolidation of dominant position in Belgium through the COUNTRIES outsourcing contract of Telenet 9M 2019 ▪ Increased investment expected in The Netherlands, acquired i- Projects ▪ New markets opening: smart meters & EV charging SPAIN: +226% ▪ Gained access to Masmovil and i
Slide 44: IFRS Reporting and Uplisting
IFRS REPORTING AND UPLISTING
Slide 45: Governance Initiatives
GOVERNANCE INITIATIVES GOVERNANCE ESG ORGANISATION ▪ Initiatives to increase ▪ Improved Ecovadis rating disclosure. Working to Silver and Gaia to towards AFEP-MEDEF 59/100 compliance for 2019 AR. ▪ Rejuvenation of Supervisory Board ▪ Continued effort to align governance with best ▪ Appointment of tw
Slide 46: IFRS Transition and Listing on Regulated Market
IFRS TRANSITION AND LISTING ON REGULATED MARKET ▪ Solutions 30 will report its full year 2019 results under IFRS ▪ Listing on the Regulated Market of Euronext expected for 2020 2018 2019 2020 INTRODUCTION OF NEW PRODUCTION OF HISTORICAL CLOSING IFRS CONSOLIDATION TOOLS & FINANCIAL STATEMENTS ▪ Closi
Slide 47: Preliminary View of IFRS Impact
PRELIMINARY VIEW OF IFRS IMPACT Solutions 30 will adopt IFRS accounting standards with its full year 2019 results. The below is a non-exhaustive, preliminary view on selected expected major changes to the group’s financial results (subject to change). ▪ No goodwill amortization under IFRS (EUR 3.3m
Slide 48: Appendix
=) G ¢ oO a) = a) rf ions For New Technologies
Slide 49: HY 2019: Solid Growth in Operating Results
HY 2019: SOLID GROWTH IN OPERATING RESULTS € millions HY 2019 HY 2018 Change Turnover 317.9 176.7 80% Operational costs 258.8 141.3 83% As % of turnover 81.4% 80% Central org. costs 29.9 19.1 57% As % of turnover 9.4% 10.8% Adjusted EBITDA(1) 29.1 16.3 79% As % of turnover 9.2% 9.2% Operational depr
Slide 50: HY 2019: Strong Improvement of Net Income
HY 2019: STRONG IMPROVEMENT OF NET INCOME € millions HY 2019 HY 2018 Change Adjusted EBIT 23.9 14.3 67% Amortisation of intangibles -3.1 -1.9 63% Financial result -0.5 -0.4 16% Non-recurring items(2) 0.0 -1.5 -100% Corporate taxes -3.0 -0.4 645% Net income of integrated companies 17.4 10.1 72% As %
Slide 51: HY 2019: Solid Financial Structure
HY 2019: SOLID FINANCIAL STRUCTURE AT 31 DECEMBER 2018 AT 30 JUNE 2019 TOTAL ASSETS: €224.3 MILLION TOTAL ASSETS: €247.4 MILLION Equity Equity 91.6 106.4 Fixed Assets Fixed Assets 150.9 154.6 Provisions Provisions 18.5 14.4 MLT MLT Financial Financial Debt Debt 60.5 65.5 ST Debt ST Debt Cash 18.1 Ca
Slide 52: HY 2019: Cash Generation
HY 2019: CASH GENERATION In millions of euros 52
Slide 53: Agenda and Contact
Full-year revenue, 2019 28 January 2020 at 6:00 pm (CET) Full-year results, 2019 & Q1 revenue, 2020 28 April 2020 at 6:00 pm (CET) Q2 revenue, 2020 28 July 2020 at 6:00 pm (CET) AGENDA Half-year results, 2020 23 September 2020 at 6:00 pm (CET) Q3 revenue, 2020 4 November 2020 at 6:00 pm (CET) Full-y