Slide 1: Investor Presentation April 2020
INVESTOR PRESENTATION April 2020
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: The European Leader in Last Digital Mile Services
THE EUROPEAN LEADER IN LAST DIGITAL MILE SERVICES KEY FIGURES HISTORY OF GROWTH 13.4% €1.2m +50% €682.2m 2019 EBITDA margin raised at IPO CAGR since 2015 Average annual growth since 2007 +30% Recurring activities in 2019 63% 2003 10,000 personnel 60,000 452.5 Creation Date 6,300 direct employees cal
Slide 4: Outsourcing Multitechnical Field Services
OUTSOURCING MULTITECHNIVAL FIELD SERVICES 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 p
Slide 5: Fundamentals
FUNDAMENTALS BUSINESS MODEL
Slide 6: Our Client Needs / Our Purpose
OUR CLIENT NEEDS OUR PURPOSE Outsourcing of a critical but Delivering field services non-core business to a better, faster and cheaper trusted partner in a fast-changing world 6
Slide 7: 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 8: 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 8
Slide 9: An Established Portfolio of Loyal Clients
AN ESTABLISHED PORTFOLIO OF LOYAL CLIENTS Year of market entry 2003 2003 2011 2011 2009 2009 TELECOMS IT ENERGY RETAIL SECURITY IoT Installation and maintenance Installation and maintenance Installation and maintenance Installation and maintenance Installation and maintenance Installation and mainte
Slide 10: 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 the A strategy of selective geographical expansion: economy in all sectors accessibility, market st
Slide 11: 2019 Financial Results
2019 FINANCIAL RESULTS A SOLID OPERATIONAL PERFORMANCE
Slide 12: 2019 Revenue
2019 REVENUE Revenue – Other Countries Revenue - France 682.2 FY 2019 247.8 +51.0% +59% over FY 2018 451.8 of which (+28.9% organic) organic +38% +68% of which 155.4 +65% organic +47% 274.5 +45% of which +59% of which organic organic of which +24% organic +6% 191.8 +21% 96.6 +57% 434.4 of which 125.
Slide 13: FY 2019: Solid Growth in Operating Results
FY 2019: SOLID GROWTH IN OPERATING RESULTS IFRS IFRS FY 2018 € millions FY 2019 IFRS16 FY 2018 IFRS16 Change (Lux Gaap) +€10m Turnover 682.2 451.8 (consolidation method) +51% 441.8 Operational costs 520.9 347.3 +50% 350.3 As % of turnover 76.4% 76.9% 79.3% Central org. costs 70.2 48.8 +44% 50.4 As %
Slide 14: FY 2019: Solid Growth in Operating Results
FY 2019: SOLID GROWTH IN OPERATING RESULTS IFRS IFRS FY 2018 € millions FY 2019 IFRS16 FY 2018 IFRS16 Change (Lux Gaap) Adjusted EBIT 53.6 32.3 +66% 33.2 Amortisation of intangibles(1) -10.8 -6.0 +78% -4.8 Financial result -2.9 -€0.6m -1.9 -€0.3m +53% -1.7 Janssens Group Non-recurring items(2) 5.6 B
Slide 15: Workforce
WORKFORCE +1,223 (+24.2%) +1,188 (+24.7%) 5,991 6,284 4,803 5,061 258 293 Operational staff Management & Total Operational staff Management & Total Admin. Admin. +35 (+13.5%) 31/12/2018 31/12/2019 15
Slide 16: FY 2019: Solid Financial Structure
FY 2019: SOLID FINANCIAL STRUCTURE TOTAL ASSETS: €302.4m TOTAL ASSETS: €361.8m Equity 99.3 Equity 139.8 Fixed assets Fixed assets 187.4 208.0 Provisions 37.4 Provisions 46.0 Leasing Debt (IFRS16) 55.9 Leasing Debt (IFRS16) 61.6 Debt on future earn outs & Rights of use Rights of use (IFRS 16) 61.9 (I
Slide 17: Net Debt
NET DEBT Net bank debt/EBITDA 22% Net bank debt/EBITDA 3.2% Net debt/EBITDA 172% Net debt/EBITDA 101% Gearing 96% Gearing 66% 95.8 99.3 139.8 91.8 91.1 55.7 12.4 3.0 Net Bank Debt Net Debt EBITDA Shareholders' Net Bank Debt Net Debt EBITDA Shareholders' equity equity 31/12/2018 31/12/2019 These figu
Slide 18: FY 2019: Cash Generation
FY 2019: CASH GENERATION 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%. 18
Slide 19: Driving Consolidation Is Our Best Use of Capital
DRIVING CONSOLIDATION IS OUR BEST USE OF CAPITAL GROWTH PROFITABILITY DIVIDEND Organic growth ~ 30 Cost discipline despite Not currently planned Driven by ever growing strong growth Bolt-on ▪ European market leader and utilization of digital natural consolidator acquisitions technology DELEVERAGING
Slide 20: Q1 2020
Q1 2020 DOUBLE-DIGIT GROWTH IN Q1 AND A CONTRASTED IMPACT OF THE COVID-19 SITUATION SINCE MID-MARCH
Slide 21: Q1 2020 Revenue: +17.5% (+10.5% organic)
Q1 2020 REVENUE: +17.5% (+10.5% organic) July 2019: i-Projects July 2019: Provisiona December 2019: Byon (51%) October 2019: CFC (70%) November 2019: Sprint/Telekom Uslugi January 2020: Elmo * Organic growth from acquired companies In millions of euros These figures have been rounded to the nearest
Slide 22: Q1 2020: First Impacts of Covid-19
Q1 2020: first impacts of Covid-19 200.3 Q1 2020 188.5 167.9 160.4 157.4 +17.5% 150.7 over Q1 2019 (+10.5% organic) 114.4 91.5 85.2 Covid-19 global impact -7% on Q1 revenue Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 In millions of euros 22
Slide 23: Double Digit Growth in All Geographies
DOUBLE DIGIT GROWTH IN ALL GEOGRAPHIES 188.5 160.4 Other countries +32% 37.2 (+9% organic) 28.2 34.8 ▪ Growth driven by acquisitions outside Benelux +13% 30.9 (+2% organic) France ▪ Pertinence of the diversification strategy ▪ Impact of COVID varies depending on France +15% geographies and markets (
Slide 24: Covid-19 Crisis - Measures
COVID-19 CRISIS - MEASURES PROTECT EMPLOYEES ENSURE SERVICE CONTINUITY ▪ Call-out processes adapted to follow ▪ Most sectors identified as essential to the economy. recommendations from health authorities. ▪ IT and Telecom maintenance activities remained ▪ Remote work wherever possible. dynamic. ▪ I
Slide 25: Covid-19 Global Impact
COVID-19 GLOBAL IMPACT 1. No COVID related deaths, 8 people infected, 48 quarantined. 2. S30’s activities considered « essential » in all of the geographies and field technicians were able to work even in areas completely locked down. 3. Developed new services of technical couriers (replace services
Slide 26: Outlook
OUTLOOK STRCTURAL TRENDS FOR SUSTAINABLE GROWTH
Slide 27: Unchanged Long-Term Growth Drivers
UNCHANGED LONG-TERM GROWTH DRIVERS SEARCH FOR ENERGY TRANSITION DIGITAL ECONOMY PRODUCTIVITY GAINS ▪ Deployment of smart meters to better predict ▪ The demand for high speed Internet is driven ▪ Increased outsourcing of non-core activities and control energy consumption by the digital transformation
Slide 28: Digital Economy and High-Speed Internet: FTTH Field Services
DIGITAL ECONOMY AND HIGH-SPEED INTERNET FTTH FIELD SERVICES Churn: 10% of installed base Maintenance: 8-15% of installed base FTTH ACTIVITY SEGMENTATION IN FRANCE Maintenance x2.1 26-39% Recurring 50-60% Churn* Churn x3.2 26-32% Recurring 20-23% 40-50% Maintenance 19-30% Installation 35-42% Installa
Slide 29: Estimated Installations Addressable Market
ESTIMATED INSTALLATIONS ADRESSABLE MARKET 145.8m HOMES FRANCE SPAIN Market: 21.4m of homes Market: 8.5m of homes Homes connected 7.3 Homes connected 10.1 Homes passed 16.4 Homes passed 15.9 Homes 28.7 Homes 18.6 NETHERLANDS + BELGIUM POLAND Market: 11.2m of homes Market: 12.7m of homes Homes connect
Slide 30: Digital Economy and Mobile Internet
DIGITAL ECONOMY AND MOBILE INTERNET 5G ▪ 5G global infrastructure spending is set to grow from $528 million in 2018 to $26 billion in 2022 – a CAGR of 118%(1). ▪ To improve transmission, mobile operators must undertake large-scale fiberization efforts. In addition to helping networks meet capacity a
Slide 31: Energy Transition: Smart Meters in Europe
ENERGY TRANSITION SMART METERS IN EUROPE ▪ 3rd “Energy Package” introduced in 2009: 80% of consumers equipped by 2020 ▪ In 2020: results are contrasted with major countries far behind objectives Netherlands Germany 80-95% Just starting Poland 15% through pilots Belgium 0% France 70% deployed as at M
Slide 32: Energy Transition: EV Chargers
ENERGY TRANSITION EV CHARGERS HARDWARE MANUFACTURERS @Home ▪ New market driven by the increase 70%* in sales of electrical vehicle ▪ 6+ million charging stations installed CHARGE POINT OPERATORS by 2025 and 15 million by 2030(1) @Work 20%* ▪ $ 15 billion of investment will be INSTALLATION AND requir
Slide 33: Search for Productivity Gains: Value Creation Through Consolidation
SEARCH FOR PRODUCTIVITY GAINS 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
Slide 34: Investment Thesis
INVESTMENT THESIS FIRST MOVER ADVANTAGE ▪ Solutions 30 was founded in 2003 and is a pioneer in the European market ▪ Our ‘moat’: long-term client relationships LOW RISK SERVICE BUSINESS ▪ Asset light business with high returns on capital ▪ Large volumes of small individual jobs – no project work ▪ F
Slide 35: Appendix
( APPENDIX Solutions For
Slide 36: Fundamentals
FUNDAMENTALS xs ‘alutions30 SojuubitGims For New Technologies
Slide 37: 3 Pillars for a Profitable and Scalable Business Model
3 PILLARS FOR A PROFITABLE AND SCALABLE BUSINESS MODEL VOLUME DENSITY AUTOMATISATION Maximising volumes and Maximising the density of the Maximising automation through recurrence technician network a powerful IT system ▪ Secure high-volume ▪ Reach the critical size as fast ▪ Automate workforce busin
Slide 38: Governance Structure
GOVERNANCE STRUCTURE Alexander Sator I Caroline Tissot I Francesco Sefarini I SUPERVISORY BOARD Chairman of the Supervisory Board Member of the Supervisory Member of the Supervisory 100% independent members since September 2018 Board since May 2017 Board since May 2017 Paul Raguin I Jean-Paul Cottet
Slide 39: Shareholding
SHAREHOLDING Retail 0.4% Management 22.8% Dorval 5.1% Swedbank 4.8% Institutions 66.9% Total number of shares & voting rights 107,127,984 39
Slide 40: Details per Business and Geographies FY2019
FY2019 DETAILS PER BUSINESS AND GEOGRAPHIES
Slide 41: 2019 Revenue: +51.0% (+28.9% organic)
2019 REVENUE: +51.0% (+28.9% organic) June 2018: JFS July 2019: i-Projects December 2018 : Sotranasa December 2019: Byon (51%) October 2018: Salto July 2019: Provisiona October 2019: CFC (70%) March 2018: DXC November 2019: Sprint/TeleKom Uslugi July 2018: Unit-T * Organic growth from acquired compa
Slide 42: Revenue Breakdown
REVENUE BREAKDOWN PER GEOGRAPHY PER INDUSTRY(1) TELECOMS IT ENERGY Germany Installation and maintenance Installation and maintenance Installation and maintenance 9% of DSL, COAX and FFTx of IT hardware and of smart meters, EV chargers connections infrastructure and electrical grid connections Poland
Slide 43: France: +47% (of which +24% organic)
FRANCE: +47% (of which +24% organic) TELECOM 62% of France revenue IT 10% of France revenue ▪ Accelerating growth in Q4, with continued 267.9 strong FTTH deployment activity ▪ Unfavourable base effect caused by 50.3 -12% 36.6 44.2 significant deployments in Q42018. +72% ▪ Keep strengthening position
Slide 44: Benelux: +111% (of which +77% organic)
BENELUX: +111% (of which +77% organic) TELECOM 80% of Benelux revenue IT 8% of Benelux revenue ▪ Surpassed the €100m revenue mark 100.6 ▪ Strong growth driven by: 9.8 ▪ The outsourcing contract signed with ▪ Warranty support contract for Dell Telenet ▪ Managed print services with various ▪ The conso
Slide 45: Other Countries: +27% (of which +13% organic)
OTHER COUNTRIES: +27% (of which +13% organic) GERMANY ITALY ▪ Start of a significant contract for smart meter deployment 31.2 ▪ Won first contract with ENEL for the +9% 60.0 +11% 55.2 28.3 1.4 maintenance of EV charging stations ▪ Increasing volumes with Telecom operators, leveraging regional densit
Slide 46: Q1 Revenue
Q1 REVENUE DETAILS PER BUSINESS AND GEOGRAPHIES
Slide 47: France: +15% (of which +13% organic)
FRANCE: +15% (of which +13% organic) TELECOM 68.6% of France revenue IT 8.9% of France revenue 12.4 ▪ Sales remained active in all verticals with new 79.9 -16% 10.4 contracts won during Q1. +35% 1.5 59.2 ▪ Linky deployment reached a plateau but new growth +32% organic drivers are arising. 78.3 ▪ Sev
Slide 48: Benelux: +13% (of which +2% organic)
BENELUX : +13% (of which +2% organic) TELECOM 76.7% of Benelux revenue IT 6.9% of Benelux revenue 26.7 2.6 25.0 +7% -10% 2.4 Severe Covid-19 impact (40-50%) ▪ Lockdown started mid-March and release is expected mid-May in most countries ▪ Sales remained active in all verticals with new contracts won
Slide 49: Other Countries: +32% (of which +9% organic)
OTHER COUNTRIES: +32% (of which +9% organic) GERMANY 37.1% of OC revenue ▪ Limited Covid-19 impact ITALY 17.5% of OC revenue ▪ Severe Covid-19 impact (-55%) ▪ Continued growth in business with ▪ New business won in Q1 (smart meters 7.8 15.5 Unitymedia/Vodafone -16% installations) 13.8 +12% - 1.4 ▪ D
Slide 50: 2020 Ongoing Action Plan on ESG
2020 ONGOING ACTION PLAN ON ESG GOVERNANCE SOCIAL ENVIRONMENT ▪ Continued effort to align governance towards AFEP- ▪ Improved reporting on social MEDEF (Committees, codes of ▪ Identify relevant metrics and matters. conduct & charters available on enhance reporting at Group web site) level. ▪ Improve
Slide 51: 2020 Changes in Scope of Consolidation
2020 CHANGES IN SCOPE OF CONSOLIDATION COUNTRY COMPANY DATE OF REVENUE AT TIME OF COMMENT CONSOLIDATION ACQUISITION France Byon (51%) 1 Dec 2019 n/a A portfolio of contracts of €40m (3 years) Spain Provisiona 1 July 2019 €3m 5G market penetration Benelux i-Projects 1 July 2019 €11m Enter the energy
Slide 52: Agenda and Contact
Q2 revenue, 2020 | 28 July 2020 at 6:00 pm (CET) Half-year results, 2020 | 23 September 2020 at 6:00 pm (CET) AGENDA Q3 revenue, 2020 | 4 November 2020 at 6:00 pm (CET) Full-year revenue, 2020 | 26 January 2021 at 6:00 pm (CET) Financial information: investor.relations@solutions30.com | Tel.: +352 (