Solutions 30 Se · EURONEXT:S30

Solutions 30 — FY2023 Earnings Presentation

29 slides from Solutions 30's earnings presentation, Apr 3, 2024

  1. Slide 1: FY Results 2023

    Solutions30 Solutions For New Technologies 3 APRIL 2024

  2. 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

  3. Slide 3: Speakers

    SPEAKERS Chief Executive Officer Group General Secretary Chief Financial Officer Gianbeppi Fortis Amaury Boilot Jonathan Crauwels 3

  4. Slide 4: 2023 Key Highlights

    2023 KEY HIGHLIGHTS Gianbeppi Fortis, CEO 4

  5. Slide 5: Providing our customers with solutions for new technologies

    PROVIDING OUR CUSTOMERS WITH SOLUTIONS FOR NEW TECHNOLOGIES France: Q Energy has partnered namely with S30 France: Acquisition of Elec ENR Belgium: >24000 households to launch the largest floating solar farm in Europe connected to Fiberklaar Germany: S30 and Glasfaserplus Group: launch of the ‘Femme

  6. Slide 6: Strong increase in adjusted EBITDA in 2023, all full-year targets achieved

    STRONG INCREASE IN ADJUSTED EBITDA IN 2023 ALL FULL-YEAR TARGETS ACHIEVED Strong revenue growth, surpassing the €1 billion mark +16.8% to € 1 057m, driven by outstanding growth in Benelux Confirmed rebound in operating margin, with significant improvement in H2, as announced Adjusted EBITDA up +59,6

  7. Slide 7: 2023 revenue: +16.8% (+16.5% organic), target of >€1 billion achieved

    2023 REVENUE: +16.8% (+16.5% ORGANIC) TARGET OF >€1 BILLION ACHIEVED Strong organic growth in 2023 driven by Benelux Uninterrupted growth for 20 years +€152.4 m (+16.8%) Organic change: +€149.5 m (+16.5%) CAGR: 25% 1 057 159.7 15.3 1 054.1 2.9 1 057.0 874 905 819 904,6 691 -25.5 458 2023 org. 2023 o

  8. Slide 8: Benelux driving the growth

    BENELUX DRIVING THE GROWTH +16.8% +16.8% Benelux: outstanding growth reinforcing 1 057.0 Solutions30’s leadership position in the 1 057.0 region Energy 904.6 904.6 119,6 ▪ Strong market momentum, especially in the +20.0% 381,6 104 Benelux telecommunication industry 99,7 Technology 221,9 +72.0% -3.0%

  9. Slide 9: Strong rebound in adjusted EBITDA

    STRONG REBOUND IN ADJUSTED EBITDA CONFIRMED IMPROVEMENT IN OPERATING MARGIN Strong sequential improvement in H2 2023 € 74.6m 2023 Adjusted EBITDA ▪ Benelux: double-digit 11,2% margin reached in H2 +59.6% 8,8% 2023 vs. 2022 7,6% 6,7% ▪ France: reorganization 5,3% and efficiency measures bearing fruit

  10. Slide 10: 2023 Financial Results

    2023 FINANCIAL RESULTS Jonathan Crauwels, CFO Amaury Boilot, Group General Secretary

  11. Slide 11: Income statement highlights

    INCOME STATEMENT HGHLIGHTS STRONG IMPROVEMENT IN PROFITABILITY INDICATORS IN H2 2023 Change € millions FY 2023 H2 2023 H1 2023 FY 2022 23/22 Revenue 1 057.0 537.9 519.1 904,6 16.8% Operational costs 887.9 443.5 444.4 774.3 14.7% As % of turnover 84.0% 82.5% 85.6% 85.6% Central org. costs 94.8 47.6 4

  12. Slide 12: Adjusted EBITDA – France

    ADJUSTED EBITDA – FRANCE ONGOING RECOVERY CONFIRMED Adjusted EBITDA Continued sequential margin improvement in H2 2023 +70.7% ▪ Reorganization and efficiency 9,6% measures bearing fruit: resources 40,0 35,5 8,5% 7,9% flexibility, process automation, 14,0% 35,0 optimization of central costs 30,0 12,0

  13. Slide 13: Adjusted EBITDA – Benelux

    ADJUSTED EBITDA – BENELUX MARGIN BACK TO DOUBLE DIGIT IN H2 2023 Adjusted EBITDA Rebound in margin in H2 2023 +53.5% 13,9% 50,0 30,0% 12,9% 43,6 12,0% 45,0 ▪ H1 affected by recruitment 25,0% 40,0 9,7% and start-up costs in a 35,0 28,4 20,0% context of hypergrowth 30,0 25,0 12,8% 15,0% 11,4% ▪ Normal

  14. Slide 14: Adjusted EBITDA – Other Countries

    ADJUSTED EBITDA – OTHER COUNTRIES H2 2023: HIGHEST MARGIN IN 3 YEARS Adjusted EBITDA Strong rebound in margin in H2 2023 -22,5% 18,0 14,0% 4,8% 16,0 14,0 12,0% ▪ Margin back into positive territories 3,6% 12,0 10,0% in H2 following negative H1 10,0 8,0% impacted by adverse business 8,0 7,1 2,0% cond

  15. Slide 15: Net income group share

    NET INCOME GROUP SHARE 2023: NET LOSS DIVIDED BY MORE THAN 2 COMPARED TO 2022 Financial result: € millions FY 2023 FY 2022 ▪ Interest expenses: €7.2m, up compared to €2.7m in 2022 due to higher rates and amount drawn Adjusted EBIT 22.6 -0.3 ▪ Adjustment of value of contingent considerations (earnout

  16. Slide 16: FY2023 cash generation

    FY2023 CASH GENERATION Free cash-flow: €13.4m -11 Underlying increase -14 Customer advances -2 Business mix • Underlying increase in WC CFFO strongly up due to revenue growth +94% vs. 2022 • Unfavorable timing of cash-in reflecting strong and consumption of advances growth and received One-time earn

  17. Slide 17: A solid financial structure to support growth

    A SOLID FINANCIAL STRUCTURE TO SUPPORT GROWTH Fixed assets Equity 145,3 Fixed assets Equity 124.6 €5.7m 221.4 220.9 Net cash at end 2023 (excluding IFRS 16 lease debt) vs. €54.0m at end 2022 Provisions 41.0 Provisions 47.3 IFRS 16 Lease Debt 67.4 IFRS 16 Lease Debt 76.4 Rights of use Rights of use 1

  18. Slide 18: Key financial highlights

    KEY FINANCIAL HIGHLIGHTS PROFITABILITY FINANCIAL STRUCTURE ▪ Strong uptick in Adjusted EBITDA margin in H2 ▪ 2023 cash generation affected by adverse WC in all 3 geographies variations and one-time earn-out payment ▪ Progress towards our mid-term objective of ▪ However strong growth in CFFO and cont

  19. Slide 19: Corporate Social Responsibility

    CORPORATE SOCIAL RESPONSIBILITY Amaury Boilot, Group General Secretary

  20. Slide 20: Key facts 2023

    KEY FACTS 2023 Review and Development of ESG enhancement of our ESG Training on our strategy E-Learning platform Measuring our Carbon Science Based Targets Footprint via Bilan initiative (SBTi) Carbone Project External assessment of Integration of ESG Risk our ESG data & KPI Management tool 20

  21. Slide 21: Solutions30 key focus in 2023

    SOLUTIONS30 KEY FOCUS IN 2023 21

  22. Slide 22: 2024 KPIs

    2024 KPIs ENVIRONNEMENTAL SOCIAL GOVERNANCE ▪ Reduce our Carbon Footprint ▪ Control the Injury Severity ▪ Manage at least 95% of Intensity* by 8% compared to Rate** (below 0.65 at group level) subcontractors on 2023 (Scope 1 & 2) mySupplace platform ▪ Increase the number of training ▪ At least 32% o

  23. Slide 23: Outlook

    OUTLOOK Gianbeppi Fortis, CEO 23

  24. Slide 24: Outlook

    OUTLOOK Priority to profitable growth and operational execution PROFITABILITY Financial policy based on auto- financing and non-dilutive 2024: further progress in EBITDA financing: margin ▪ Recurring working capital on historic contracts is financed by factoring REVENUE Mid-term: normative double-di

  25. Slide 25: Key businesses driving revenue growth

    KEY BUSINESSES DRIVING REVENUE GROWTH Connectivity Mid-term plan per geography FR BNL DE ESP IT PL UK Connectivity as main revenue growth driver Fiber ▪ Significant growth in Benelux, Germany, Legacy fixed Poland, and UK Copper Exit Mobile Energy Mid-term plan Significant growth potential in Energy

  26. Slide 26: Strong focus on margins, activating all improvement levers

    STRONG FOCUS ON MARGINS ACTIVATING ALL IMPROVEMENT LEVERS Effective recruitment of Projects selectivity – Market employees and Programs subcontractors Standard and cutting-edge Strict control and Competitive advantage IT tools training methodology monitoring at all steps Critical volume as a key to

  27. Slide 27: Wrap-up

    WRAP-UP Strong improvement in margins in H2 2023 Progressing towards target of double-digit Adjusted EBITDA margin Continued profitable growth expected in 2024 and beyond… Strong potential in Germany, vast opportunities in energy transition activities in France … supported by a solid balance sheet M

  28. Slide 28: Questions & Answers

    QUESTIONS & ANSWERS lutions30 a s for New Technologies jologies

  29. Slide 29: www.solutions30.com

    21 rue du Puits Romain L-8070 Bertrange, Grand Duchy of Luxembourg Investor.relations@solutions30.com Solutions 30 is listed on Euronext Paris Mnemo: S30 | Index: SBF120 www.solutions30.com

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