INVESTOR PRESENTATION including 2020 H1 Results September 2020
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 Solutions 30 SE. Any such statements involve risk and uncertainty because they relate to future events and circumstances. There are many factors that could cause actual results or developments to differ materially from those expressed or implied by any such forward looking statements, including, but not limited to, matters of a political, economic, business, competitive or reputational nature. Nothing in this presentation, the presentation materials and discussion should be construed as a profit estimate or profit forecast. Solutions 30 SE does not undertake any obligation to update or revise any forward-looking statement to reflect any change in circumstances or expectations. 2
A FAST GROWING EUROPEAN LEADER DELIVERING FIELD SERVICES BETTER - FASTER - SMARTER
A RECURRING REVENUE BASE TO SECURE OUR GROWTH STRATEGY 13.5% €1.2m +50% 2019 EBITDA margin raised at IPO CAGR since 2015 63% Recurring activities in 2019 €682.2m 2003 11,000 personnel 60,000 +30% Average annual growth since 2007 Creation Date 6,800 direct employees call-outs per day EUROPEAN FOOTPRINT 451.8 Germany 9% 274.5 Benelux Poland 18% 191.6 New France 111.5 125.1 64% 95.0 77.2 Italy 63.3 54.7 44.9 5% 36.2 30.1 In €m Iberia 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 4% 4
THREE LONG-TERM TRENDS FOR SUSTAINABLE GROWTH ENERGY TRANSITION DIGITAL ECONOMY SEARCH FOR PRODUCTIVITY GAINS ▪ Deployment of smart meters to better predict ▪ Increasing demand for high speed Internet ▪ Increased outsourcing of non-core activities and control energy consumption due to the digital transformation of our in order to lower cost base working and everyday lives ▪ Installation of EV charging stations to support ▪ Consolidation in a fragmented market due to the development of e-Mobility ▪ Multiplication of screens and simultaneous the rationalisation in the number of suppliers connections, enriched contents, multiplication of (economy of scale / easier to manage) and ▪ Adaptation of electrical grids to multiple data, social media, remote working… economic fragility of some players sources of energy, including renewable ▪ Smart city, Industry 4.0, Smart building, energy autonomous vehicles, IoT… INCREASING NEED FOR SERVICES 5
1 CORE BUSINESS, 6 GROWING VERTICALS 6 VERTICALS We provide one-stop-shop TELECOM ENERGIE IT solutions to end-clients , 68% of revenue 16% of revenue 11% of revenue both individuals and enterprises, on behalf of large technology companies. Installation and Installation and maintenance of smart Installation and maintenance of DSL, meters, EV chargers maintenance of IT COAX and FFTx and electrical grid hardware and connections connections infrasctructure RETAIL SECURITY IoT We accelerate the transition 2% of revenue 2% of revenue 1% of revenue to digital by delivering “last mile” solutions , including connected equipment Installation and deployment and assistance. Installation and Installation and maintenance of maintenance of point maintenance of connected devices of sales devices security systems “ideas incubator” % of 2019 revenue 6
SOLUTIONS 30 OFFERS EFFECTIVE FIELD SERVICES TO ACCELERATE THE TRANSITION TO DIGITAL TECHNOLOGIES OUR CLIENT NEEDS OUR PURPOSE OUR CHALLENGE Outsourcing of a critical Delivering field services Maintain a profitable, but non-core business better, faster and efficient and scalable to a trusted partner smarter in a fast- organisational structure changing world with a constant quality of service. 7
3 PILLARS FOR AN EFFICIENT AND SCALABLE BUSINESS MODEL VOLUME DENSITY AUTOMATISATION Maximising volumes and Maximising the density of the Maximising automation through ➔ Maximising technicians and recurrence technician network a powerful IT system business model efficiency ▪ Secure high-volume ▪ Reach the critical size as fast ▪ Automate workforce as possible – first mover businesses through long-term management and repetitive ➔ A robust development base contracts on diversified advantage tasks easy to duplicate markets ▪ Lead the market consolidation ▪ Accelerate integration process on new markets and ▪ Standardise interventions to of new employees and maximise economies of scale ▪ Hire multi-expertise technicians geographies acquisitions Our commitment BETTER | FASTER | SMARTER 8
A FULLY AUTOMATED IT PLATFORM Customer’s CRM End customers S30.net Ticket Feedback Physical intervention Individuals & Businesses ➔ Real time knowledge Planning/ Remote Logistics base to increase first time Dispatching support fix rate Tickets managed in the month ➔ Strong integration with OK to invoice customers’ ERP supports ERP S30.net clients’ loyalty Invoice Payment 60-90 days ➔ Strong barriers to entry 9
ESTABLISHED PORTFOLIO OF LOYAL CLIENTS Year of market entry 2009 2003 2003 2011 2011 2009 ENERGY IT RETAIL IoT SECURITY TELECOMS 10
HIGHLY RESILIENT FINANCIAL RESULTS STRENGTHENING OUR BUSINESS MODEL WHILE THE DIGITAL TRANSFORMATION IS ACCELERATING
STRONG RESILIENCE OF OUR BUSINESS MODEL AND MARKETS ▪ Continued implementation of the company’s improvement processes Reporting under IFRS and improved financial communication ▪ Transfer to Euronext Paris and integration of SBF120 ▪ Renewed ESG strategy under implementation ▪ ▪ Double-digit growth balanced between organic and external ▪ Recurring maintenance activities supported our resilience ▪ Volumes dropped by 35% in April but started to gradually go back to normal in May New customers won in all business segments and 5G Key ▪ successes ▪ Pre-covid trends emerge stronger ▪ June sets new highs and Q3 remains strong ▪ FTTH and smart-meters deployments should accelerate in most European countries EV sales are accelerating ▪ Strong sales and M&A pipe ▪ 12
CONFIRMATION OF OUR BUSINESS MODEL AGILITY REVENUE EBITDA NET DEBT POSITION FREE CASH FLOW €363.7m +14% €41.5m +2% Net Bank Cash €45.9m €78.4m Of which 64% is recurring 11.4% of revenue Total Net Debt €26.7m 21.6% of revenue 8.3% before IFRS16 ▪ Highly resilient operational performance despite an unprecedented crisis Service continuity in critical activities during the lockdown with fast recovery as early as mid-May, resulting in double-digit growth for H1 2020 ▪ Our flexible cost base enabled us to react quickly and to restart faster than competition ▪ ▪ Rigorous cash management, consolidation of our financial position ▪ Instructions given to protect our cash and stop all expenses implemented immediately throughout all countries Cost savings and temporary unemployment measures ▪ Support from our customers with accelerated payments ▪ ➔ Strengthening of our fundamentals and competitive position 13 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%.
THE RECURRING BASIS OF OUR REVENUE HAS BEEN A SHOCK ABSORBER DURING LOCK-DOWN 363.7 H1 2020 Q2 2020 318.8 Other countries +28.2% 73.1 (+3.9% organic) 57,0 +14.1% Benelux +13.2% +10.6% 66.2 over H1 2019 (+2.0% organic) over Q2 2019 58.5 (+6.9% organic) (+3.3% organic) 64% Q1 2020 France +10.3% (+9.2% organic) 224.3 Other countries 203.3 Recurring +17.5% Benelux activities over Q1 2019 France in H1 2020 (+10.5% organic) H1 2019 H1 2020 In millions of euros 14 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%.
ADJUSTED EBITDA MARGIN OF 11.4% € millions HY 2020 HY 2019 Change Revenue 363.7 318.8 +14% ▪ Continued cost control 284.2 249.3 +14% ▪ Favourable impact of temporary unemployment Operational costs measures 78.2% 78.2% As % of turnover ▪ Adjustment of outsourcing resources, with 37.9 28.9 +31% Central org. costs optimised balance between direct personnel and subcontractors 10.4% 9,1% As % of turnover ▪ Limited impact of the Covid situation on Adjusted EBITDA (1) 41.5 40.6 +2% profitability 11.4% 12.7% As % of revenue ▪ 1.3 pp vs. HY2019 Operational depreciation -19.7 -16.1 +23% -5.4% -5.0% As % of revenue Adjusted EBIT (1) 21.8 24.5 -11% 6.0% 7.7% As % of revenue Correction of elements considered by the company as being exceptional or non-recurring to provide a better reading of operational performance (1) Adjusted EBITDA: Earnings before interest, taxes, depreciation, and amortization, as well as non-recurring income and expenses Adjusted EBIT: Operating income before amortization of customer relationships, including customer relationships, and non-recurring income and expenses. In millions of euros 15 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%.
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