First-Half 2021 Results - 27 September 2021 - Quadient
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First-Half 2021 Results 27 September 2021
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
of listed companies (DOC-2016-05) of 2020 ), which, by their nature, involve a degree of risk and uncertainty. Forward-looking
statements represent the Company’s judgment regarding future events, and are based on currently available information.
Consequently the Company cannot guarantee their accuracy and their completeness. Actual results may differ materially from
those the Company anticipated due to a number of uncertainties, many of which the Company is not aware of.
For additional factors that may cause the Company’s actual results to differ materially from expectations and underlying
assumptions, please refer to the reports filed by the Company with the Autorité des Marchés Financiers (French Financial Markets
Authority – “AMF”).
2
© 2021 Quadient. All rights reserved.
Agenda
H1 2021 highlights 1 3 FY 2021 outlook
H1 2021 financial Appendices
2 4
review
3
© 2021 Quadient. All rights reserved.
Successfully simplified and refocused the company in the first 2 years,
we are executing phase II to drive sustainable value
Back to Growth
Phase I - 2019 - 2020 Phase II - 2021 - 2023
Transform Drive sustainable value
• New strategy • Focus on:
– Organic growth
• Management re-focus and simplification of the company
– Increased profitability
– Established country clusters to gain efficiency: leaner, customer
and language proximity – Deleverage the company
– Establishment of Centers of Excellence • Complete the integration of our acquisitions
• Refreshed ExCom & Senior leaders, with new talents hired to lead our • Acceleration of:
transformation – Growth and scale of each of 3 core solutions
• Reshaped solution portfolio – Simplification of the organization
– Maximizing synergies across solutions
• Unified and integrated company
c.€195-200m
BOLT-ON ICA Software: capability portfolio cash-out
ACQUISITIONS PLS: Parcel Pending to ICA Software: Account Receivable completion with Beanworks to date
scale US business (AR) acquisition with YayPay (Account Payable – AP)
2019 2020 2021
1. Data Quality 2. Shipping Software 3. Graphics business 4. Drachten Factory
DIVESTMENTS in Australia and packaging system c.€110-115m
cash-in to date
(Shut down) 4
© 2021 Quadient. All rights reserved.
Quadient focuses on customer needs in high-growth markets
Financial automation (AP/AR) & Transactional mail volumes growing by Continued eCommerce explosion
Cloud digital application growing by +1% in Q2 in NORAM & showing decline +35% in 2020
up to c.+15% in the future resilience after Covid in other geographies +14% in 2021 expected
+5-10% afterwards
Notable landscape evolution Notable landscape evolution Notable landscape evolution
IPO Planning for IPO Entering parcel lockers and AP
Sample of acquisitions Acquisition IPO
2 acquisitions +
Acquisition
AR Increased need Booming
Spend for digital experience, E-commerce
management communication & Growing parcel
and business volumes
AP
automation
Large, resilient
Entering EU market
eInvoicing mail volume
5
© 2021 Quadient. All rights reserved.
H1 2021 highlights Geoffrey GODET CEO
A snapshot of Quadient in H1 2021
+26.8% +40.7%
ORGANIC GROWTH (2)
ORGANIC GROWTH (2)
+11.1% (1)
MAIL-RELATED
SOLUTIONS PARCEL LOCKER
VS. H1 2020 SOLUTIONS
HARDWARE REVENUE
REVENUE
ORGANIC GROWTH
IN REVENUE
+19.9%
ORGANIC GROWTH (2)
ICA(3)
€45m (SOFTWARE)
SUBSCRIPTION-
€70m NET ATTRIBUTABLE
INCOME
RELATED REVENUE
€
CURRENT EBIT(4) +110% reported growth
+28.2% org. growth vs. H1 2020
vs. H1 2020
€54m
CASH FLOW AFTER
(1) Reported growth: +3.9% CAPEX
(2) Within Major Operations
(3) Intelligent Communication Automation
7
(4) Current EBIT before acquisition-related expenses © 2021 Quadient. All rights reserved.
H1 2021 – Business highlights
CONTINUOUS EXECUTION OF BACK TO GROWTH
─ Completing best-of-breed business communications
management suite with the acquisition of account payable
solution
─ A new milestone in the Company’s portfolio streamlining
and MRS industrial footprint optimization with the
Two-year anniversary of divestment of Drachten factory and Packing Solutions
Quadient brand
to reflect our transformation BENEFITTING FROM A STRONG COMMERCIAL
into an innovative and more MOMENTUM ACROSS ALL SOLUTIONS
synergistic organization
ACCELERATING OUR SUBSCRIPTION-RELATED MODEL
IN OUR GROWTH ENGINES
CONTINUING TO FOSTER OUR SYNERGIES
(customer, commercial, supply chain, back office)
© Quadient 8
Continued progress in H1 across the 5 pillars of our CSR program
PEOPLE ETHICS & COMPLIANCE ENVIRONMENT SOLUTIONS PHILANTHROPY
Focus on inclusion Focus on ethical behavior Expansion of our programs Launch of Quadient’s first
Focus on customers
related to reduction of waste Philanthropy Program
• Launch of first Inclusion • Signatory member of the
and carbon footprint
policy and training UN Global Compact • Launch of new
• Recognized as a Top 10
• Circular economy : MRS philanthropy program,
• Joined Valuable 500, bringing • Continued investment in leader for the 4th year in a
remanufacturing program Quadient Cares, focusing
greater support to our global compliance row by Truffle 100 annual
expanded to the US market on Education, Inclusion &
employees with disabilities program ranking
• ISO 14001 certification Diversity and Protecting the
• Signatory member of the • Updated Code of Conduct • Recognized as an overall Environment
renewal for all industrial
French Diversity Charter for Third Party Partners, leader in Aspire
sites • Community engagement
with access now to our Leaderboard for CCM
• Work from Anywhere Ethics 24x7 helpline platform launched
program continues to bring • Customer value and total Worldwide to promote
greater resources to • Initiatives related to Data experience of YayPay by volunteering, skill-based
flexibility, wellness and privacy and Information Quadient recognized by sponsorship and donations
Security Forrester Consulting
©hybrid work
Quadient 9
Software – Intelligent Communication Automation
H1 2021 highlights – crossing the 10k customers threshold for the first time
+1,200 INCREASED USE OF
OUR CLOUD PLATFORMS
CONTINUE BUILDING PARTNERSHIPS net new
AR/AP payments: > +250%
AND ACQUIRING NEW LOGOS customers in H1 2021 vs H1 2020
Largest provider of
in H1 2021 o/w
car insurance in c.+150 AP/AR Customer communication
the United States customers volume: > +35%
in Q2 2021 in H1 2021 vs H1 2020
STRONG GROWTH OF SOFTWARE REVENUE
THROUGH SYNERGISTIC MRS CHANNEL CROSS SELLING
Strong growth of mid-segment H1 21 key
CONTINUED INDUSTRY RECOGNITION revenue through Quadient MRS
figures
sales channel cross selling +33% +48%
Quadient MRS sales channel is a top partner for both ICA Enterprise
and mid-sized customers in pipeline creation and bookings
Already signed several accounts payable (Beanworks) contracts
thanks to Quadient MRS sales channel in NORAM in the first quarter
of the acquisition 10
© 2021 Quadient. All rights reserved.Software – Intelligent Communication Automation
H1 2021 solution KPIs
ANNUAL RECURRING REVENUE SHARE OF
SHARE OF SAAS/SUBS CUSTOMERS
(ARR) SUBSCRIPTION-RELATED REVENUE
Definition Number of SaaS/Subs customers Annualized revenue from subscription- Subscription-related revenue
over total number of customers related revenue streams over total revenue
Allows to assess the health of ICA and
compare it to peers as it takes recurring Subscription-related revenue ensures
Rationale Monitors transition to Subs/SaaS
software business specificities into revenue robustness and safety
account
Historical evolution
Share of SaaS/Subs customers1 ARR Share of subscription-related revenue
(2019-21, %) 70% (2019-21, in €m) (2019-21, in %)
133 66%
70% 140 133 70 66%
65%
65% 130 123 59%
60
60% 56% 120 50%
109 50
55% 110
0 100 40
2019 2020 H1 2019 2020 H1 2021 2019 2020 H1 2021
2021
11
© 2021 Quadient. All rights reserved.Smart Hardware – Mail-Related Solutions
H1 2021 highlights
Modernize the product line with product launch renewal and HIGH CUSTOMER SATISFACTION
S.M.A.R.T software launch
General availability in the U.S. of iX-9
Meeting the latest USPS Intelligent Mail Indicia and Dimensional Weighing
requirements
Expanding Quadient’s intelligent iX-Series mailing and shipping systems to Europe
iX Range iX Range S.M.A.R.T
iX-9
CONTINUED SYNERGIES
Supply chain industrial footprint optimization
Growth outpacing by almost 2x market rebound in H1
with the divestment of Drachten facility
2021 thanks in part to customer acquisition and retention
Synergies from shared supply chain &
customer service center of excellence, notably
with PLS with one mutualized warehouses in
the USA
Sales enablement to help customers
accelerate their journey to digital
12
© 2021 Quadient. All rights reserved.A new milestone for Quadient’s industrial footprint optimization and its portfolio reshaping
Divestment of Drachten factory and Packing Solutions
PRODUCT BACK TO GROWTH SHARE OF INDUSTRIAL VALUE CREATED IMPACTS
RANGE STRATEGY EST. 2021
Document systems In the short term
for Mail-Related > Immediately externalization of
Solutions Industrial footprint c.50% c.70%
production costs related to its
automatization Mail-Related Solutions business:
In Mail-Related
Solutions c. €14million p.a.
Before Drachten After Drachten > Production to be gradually
factory divestment factory divestment transferred to outsourced
Outsourcing Drachten Other Quadient factories suppliers and other sites
> No more exposure to loss
making Automatic Packing
Systems (CVP) business
In the long term
Automatic Packing
> Significant OPEX reductions
Systems > Total consideration from the sale:
(CVP) Reshaping > €20million > Reducing the risk related to the
the portfolio decline of production
In Additional > Scope exit from 1 August 2021
Operations
13
© 2021 Quadient. All rights reserved.Smart Hardware – Mail-Related Solutions
H1 2021 solution KPIs
SHARE OF SHARE OF
RESILIENCE INDEX(1)
UPGRADED INSTALLED BASE SUBSCRIPTION-RELATED REVENUE
Definition Share of new generation smart devices Spread between supplies revenue Subscription-related revenue
among total number of devices in the evolution and total revenue evolution(2) over total revenue
installed base
Confirm that MRS revenue decline is
Size the upside potential for upgrade to Subscription-related revenue ensures
Rationale slower than overall mail volume decline
the latest generation smart hardware revenue robustness and safety
(proxy: supplies)
Historical evolution
Supply sales strong decline, Supplies sales Impact of strong
total revenue declining less back to growth dynamic in
Share of upgraded Installed Base Resilience Index(3) thanks to other streams Share of subscription-related revenue hardware sales in
but total
(2019-21, %) (2019-21, %) resilience (2019-21, %) H1 21
revenue growing
even faster
10 6 75 74%
8.5% 5.2% thanks to strong
hardware 72% 72%
8 revenue growth
4 70
6 4.9%
2.4%
4
2 1.7% 65
2 1.1%
0 0 60
2019 2020 H1 2021 2019 2020 H1 2021 2019 2020 H1 2021
(1) Resilience Index = supplies revenue evolution vs. previous year (in %) - total revenue evolution vs. previous year (in %); 14
(2) Positive trend is a marker of total revenue overperformance vs. mail volume usage
(3) 2019 and 2020 Resilience Indexes do not take into account the ICA/MRS products reclassification © 2021 Quadient. All rights reserved.Smart Hardware – Parcel Locker Solutions
H1 2021 highlights – Strong momentum in our verticals
FAST SCALING OF OUR OPEN PROMISING ADOPTION IN NEW SYNERGIES FROM OUR MRS
NETWORKS GEOGRAPHIES CHANNEL
Education
Property
Carriers Retail
managers and
corporate offices
New milestone reached with Lowe’s US roll-out completed Still good traction in usage Continued traction in the US with
6,000 units installed in Japan in Q1, extension into Canada in the network in the 300 installations for corporate and
for another 179 stores United States with 18m universities
2,000 units with Relais Colis
completed in Q2 parcels in H1 2021
(500 units) and Pickup Pipeline increase in the UK for
(1,500 units) to be rolled out Prescription medicine (+24%)
universities due to COVID
within 3 years delivery started in Japan
MRS Synergies: Strong growth of
MRS Synergies: Carrier deal Promising start in the Higher Education/Corporate
in Canada for Q4 roll-out United Kingdom bookings through MRS USA sales
and France channel (index at 100 for 2019)
Drastic increase in market
demand
2019 2020 2021 15
© 2021 Quadient. All rights reserved.Smart Hardware – Parcel Locker Solutions
H1 2021 solution KPIs
GROWTH OF
INSTALLED BASE USAGE RATE
SUBSCRIPTION-RELATED REVENUE
Definition Number of lockers installed (Number of parcels in the locker at the Subscription-related revenue
beginning of the day + number of parcels
delivered during the day) / number of
Monitoring of numbers of lockers and subscribed boxes in the locker
market share
Rationale
Allows to monitor customer acquisition Shows the progress in the monetization Subscription-related revenue ensures
and churn of our installed base revenue robustness and safety
Historical evolution
Installed base 1,500+ Usage rate(1) Subscription-related revenue
(2018-21, in K) (2018-21, in %) 60% (2018-21, in €m)
units
60% 42 +20%
16 60 57%
14.5 in organic
14 13 33
50
12 40% 21 23
10 40 16
10
8 7 30 25%
6 20
2018 2019 2020 H1 2018 2019 2020 H1 2018 2019 2020 H1 2020 H1 2021
2021 2021 16
(1) Change in maximum rotation time assumption. Usage rate for 2020 and H1 2021 have been revised accordingly. © 2021 Quadient. All rights reserved.17
H1 2021 financial
review
Quadient
Customer
Journey
Explorer
Quadient
X-series
Laurent DU PASSAGE
CFOStrong recovery in organic growth confirmed in Q2 2021
ORGANIC CHANGE – GROUP ORGANIC CHANGE – RECURRING / NON-RECURRING (1)
+33.4%
+30.7%
+11.1%
+11.1%
+5.1% +3.4%
+0.7%
-2.1%
-1.0% -4.6%
-3.0% -7.7% -2.1%
-5.0%
-10.9%
-26.4%
-29.0%
-14.6%
Q1 ’20 Q2 ’20 Q3 ’20 Q4’ 20 Q1 ’21 Q2 ’21 Q1 ’20 Q2 ’20 Q3 ’20 Q4’ 20 Q1 ’21 Q2 ’21
Recurring revenue Non-recurring revenue
(1) Non-recurring revenue = license and hardware sales; Recurring revenue = subscription-related revenue and services 18
© 2021 Quadient. All rights reserved.Sustained performance across all solutions in Q2 2021
INTELLIGENT COMMUNICATION MAIL-RELATED PARCEL LOCKER
AUTOMATION (1) SOLUTIONS (1) SOLUTIONS (1)
+11.7% +5.1% +40.7%
+17.3% +4.0% +17.5%
97 318 320 41
87
32
52 161 161 17 19
44
Q2 ’20 Q2 ’21 H1 ’20 H1 ’21 Q2 ’20 Q2 ’21 H1 ’20 H1 ’21 Q2 ’20 Q2 ’21 H1 ’20 H1 ’21
(1) Within Major Operations 19
(2) % of organic change vs. the same period in 2020; 2020 data was restated to take into account the product reclassification from Intelligent Communication Automation to Mail-Related Solutions © 2021 Quadient. All rights reserved.H1 2021 revenue bridge
H1 2021 revenue bridge
(in €m, % of organic change vs. H1 2020)
Group
+11.1%
organic change
Major Operations +13
+9.0% +40.7% -20
organic change
+13
+39.1% 504
+5.1%
-4.2%
485 +11.7%
+16
-13 +10
-2.7%
H1 2020 Scope Intelligent Mail-Related Parcel Locker Additional Currency H1 2021
effect (1) Communication Solutions Solutions Operations effect (2)
Management
(1) Scope effects: divestments of ProShip and Graphics in Australia; acquisitions of YayPay and Beanworks 20
*(2)Scope effect:
Average -€3.3m
rates H1 2021: EUR/USD = 1.20 and EUR/GBP = 0.86 © 2021 Quadient. All rights reserved.Intelligent Communication Automation
Major Operations - H1 2021 revenue and solution profit margin
H1 2021 revenue by type Growing customer demand for AR and AP solutions
leading to c. +70% organic growth
Subscription-related H1 2021 revenue Strong double-digit growth in Subscription-Related
revenue
+19.9% (1) Organic growth Revenue for both SMBs (+31%) and large accounts (+13%),
Licenses and hardware vs. H1 2020 mainly driven by SaaS and volume-based solutions
sales
+11.7%
-13.8% (1) (1) Improving level of activity in Professional services,
particularly in France and the UK
14%
66% Shift to SaaS leading to lower license revenue, although
€97m one large deal in Q2 2020
20%
Investment level on target, including recent acquisitions of
Professional services H1 2021 Solution high growth YayPay & Beanworks:
+9.8 % (1)
Profit Margin ─ Increased R&D investments related to Cloud-platform
16.0% expansion
─ Additional go-to-market and marketing investment
(270) bps
organic change Continuing shift in customer base from license to SaaS
vs H1 2020
model impacting near term profit margin as planned
% of organic change vs. the same period in 2020; 2020 data was restated to take into account
(1) 21
the product reclassification from Intelligent Communication Automation to Mail-Related SolutionsMail-Related Solutions
Major Operations - H1 2021 revenue and solution profit margin
H1 2021 revenue by type Positive organic growth across all geographies, with a
sustained performance in North America and improved
Subscription-related H1 2021 revenue business trend in Europe
revenue
-1.5% (1) Organic growth Strong recovery in hardware sales, with organic growth
Licenses and hardware vs. H1 2020
sales
of c. 27%, thanks to good traction with new customer
acquisitions
+5.1%
+26.8% (1) (1)
28% Overall good resilience of the installed base and
subscription-related revenue despite lingering Covid
€320m impact on usage, in particular in Europe
72%
Revenue mix effect from:
H1 2021 Solution
─ Strong increase in hardware sales
Profit Margin
─ Lower level of placement in H1 2020 impacting subscription-
44.5% related revenue
(96) bps Impact from increase in freight cost
organic change
vs H1 2020
% of organic change vs. the same period in 2020; 2020 data was restated to take into account the
(1) 22
product reclassification from Intelligent Communication Automation to Mail-Related SolutionsParcel Locker Solutions
Major Operations - H1 2021 revenue and solution profit margin
H1 2021 revenue by type Double-digit growth in subscription-related revenue, due
to the expansion of the installed base in the US in 2020,
Subscription-related H1 2021 revenue with sustained increase in maintenance and volume-based
revenue
revenue
+20.1% (1) Organic growth
Licenses and hardware vs. H1 2020
sales
Sustained growth in hardware sales, reflecting strong
dynamics in US retail due to the rollout of the Lowe’s
+79.4% (1)
+40.7% (1)
contract (completed in Q1 2021) and good traction in the
universities in the US
39%
€41m 56% Promising start of UK market
5% High profitability of the installed base (profit margin
Professional services
+83.9% (1)
H1 2021 Solution between 25% and 30%)
Profit Margin
Planned increased investments in R&D and go-to-market
(1.4)% New installations:
+538 bps
organic change ─ Different revenue mix with higher rate of subscription vs H2 2020
vs H1 2020
─ Impact from increase in freight cost for new installations
(1) % of organic change vs. the same period in 2020 23Major Operations
H1 2021 revenue and current EBIT
H1 2021 revenue by type
Strong performance in North America, driven by the
Subscription-related
rebound in Mail-Related Solutions and double-digit organic
Licenses and hardware
sales
revenue
H1 2021 growth across Intelligent Communication Automation and
+25.3% (1) +3.6% (1) Parcel Locker Solutions businesses
revenue
26% Organic growth Improved level of activity in Europe, though still impacted
Professional vs. H1 2020
services €458m by Covid health measures
+14.3% (1) 5%
69% +9.0% (1)
Solid performance in International, mainly due to Parcel
Locker Solutions
H1 revenue by geography Strong acceleration of the level of activity
Main European Countries H1 2021
40% +5.4% (1) Improvement in the profitability of the installed base
Current EBIT
International Increased investments in go-to-market & marketing (launch of
+5.2% (1) 5% €71m new verticals and geographies for ICA and PLS) and in R&D
North America +19.6%
+12.0% (1) organic change Continuing shift in customer base from license to SaaS model
55% vs H1 2020 impacting ICA near term profit margin as planned
(1) % of organic change vs. the same period in 2020 Increased freight costs and longer delivery lead time 24H1 2021 results summary
SALES Major Additional Total Group
% of organic growth (1) Operations Operations
vs. H1 2020
Intelligent Mail Parcel €250m
North America Communication Related Locker +12.0%
Automation Solutions Solutions
Main European €183m
countries +5.4%
€25m
International
+5.2%
€97m €320m €41m €458m €46m €504m
+11.7% +5.1% +40.7% +9.0% +39.1% +11.1%
Solution Profit Margin 16.0% 44.5% (1.4)% 34.4% 17.6% 32.8%
Organic change in bp (270)bp (96)bp +538bp (192)bp +668bp (160)bp
Current EBIT
before acquisition-related €71m €(0)m €70m
expenses +19.6% vs. €(4)m +28.2%
% of organic growth
(1) % of organic change vs. the same period in 2020; 2020 data was restated to take into account the product reclassification from Intelligent Communication Automation to Mail-Related Solutions 25Improvement in activity lead to a €16m organic increase in current EBIT(1)
H1 2021 current EBIT before acquisition-related expenses bridge
(in €m, % of organic change vs H1 2020)
The increase in current EBIT is mainly due to:
+28.2%
The strong improvement in activity level
74
vs H1 2020
(4) 70
+7
Improvement in profitability:
+5 ─ thanks to the increase in installed base and its
61
profitability
(3) 58 +5
─ while investments were increased as planned
(R&D, go-to-market, acquisitions)
─ despite the impact of the on-going shift to
subscription model (lower level of license
upfront)
Improvement of G&A thanks to:
H1 2020 Scope H1 2020 Change In Change In Change in H1 2021 Currency H1 2021
effect(2) (scope Major Additional G&A @ LYR effect ─ further simplification of the organization
restated) Operations’ Operations’ and
Solutions Solutions Innovation
Profit Profit
─ reduction of real estate footprint
Current EBIT before acquisition-related expenses;
(1)
(2) Scope
effect taking into account the divestments of ProShip (end-Feb. 2020) and Graphics activities in Australia and New Zealand (21 Jan. 2021) as well as the acquisitions of YayPay (29 July 2020) and 26
Beanworks (23 March 2021)Net attributable income of €45 million, up from €21 million in H1 2020
H1 2020 H1 2021
In € million
Current operating income
61 70
(before acquisition-related expenses)
Acquisition-related expenses (11) (6) 2021: Strong decrease in fees
Current operating income 50 65
2021: Mainly linked to restructuration expenses and Drachten factory (APS)
Optimization expenses and other operating income & expenses (8) (12) divestment
Operating income 42 53
Cost of debt (16) (12) 2021: Reduced cost of debt thanks to 2020 refinancing operations
Currency gains & losses and other (1) 14 2021: Increased value of the funds investment (X’Ange and Partech)
Net financial income/(expense) (17) 3
Profit before tax 25 55
Taxes (3) (10)
2020: Benefits from tax loss carry-back measures in the US in COVID-19 context
Income from associated companies (0) 0
Net attributable income 21 45
Minority interest 1 1
Net margin as a % of sales 4.5% 8.9%
EPS (in €) 0.50 1.19
Fully diluted EPS (in €) 0.50 1.12
Note: Average rates EUR/USD H1 2021 = 1.20 and FY 2020 = 1.15; EUR/GBP H1 2021 = 0.86 and FY 2020 = 0.89 (2) The average compounded number of shares is 34,017,519. The fully diluted number of shares is 40,356,954. 27
(1) As per IFRS treatments, the calculation takes into account the dividends paid to ODIRNANE’s holders. © 2021 Quadient. All rights reserved.Robust cash flow generation and EBITDA margin at 23.5% in H1 2021
H1 2020 H1 2021
In € million
EBITDA 104 118
EBITDA margin (%) 21.5% 23.5% 2021: EBITDA margin improvement in spite of Beanworks and YayPay acquisitions
2021: Restructuring expenses and net impact of provisions release (inventory and
Other items (2) (11) bad debt)
Cash flow (1) 102 107
Change in working capital requirement (25) (6) Better receivables collection
Change in lease receivables 54 32 Slow down of leasing portfolio decrease in 2021 (-5% vs. -7% in H1 2020)
Normalization of tax paid compared to 2020 that benefitted from measures in
Interest and income tax paid (16) (41) COVID context
Cash flow from operations 115 92
Capital expenditure (39) (39)
Cash flow after capex 76 54
Acquisitions net of divestments (9) (72) Acquisition of Beanworks in Q1 2021
Cash flow after capex & acquisitions 65 (18)
Note: Average rates EUR/USD H1 2021 = 1.20 and FY 2020 = 1.15; EUR/GBP H1 2021 = 0.86 and FY 2020 = 0.89 28
(1) Before net cost of debt and tax © 2021 Quadient. All rights reserved.CAPEX level reflecting phasing in investments
CAPEX mix (€m)
39 39
15
Rented equipment
15
Steady level of rented mail equipment placement
16 reflecting the mix of hardware sales (leasing rather
16
than rental)
6 5
3 2 Acceleration in Parcel Lockers investment planned in
H1 2020 H1 2021 H2 with the roll-out of main contracts in the second
Rented equipment Development CAPEX Maintenance Asset right of use
CAPEX
(1)
(IFRS 16) half of the year
Development CAPEX maintained at €16m
15 15
3 4 Broadly stable maintenance CAPEX
12 11
H1 2020 H1 2021
Parcel Lockers Solutions Mail-Related Solutions
(1) Acquisition of software and IT implementation costs, acquisition of machinery and equipment and other investments 29
© 2021 Quadient. All rights reserved.Net debt and future cash flows as at 31 July 2021
Improving leverage in spite of Beanwork’s acquisition
Net financial debt Leasing portfolio and rental future cash flows
IFRS 16 debt 803 Rental future
759
526 cash flows
512 Net financial debt 205 183 Leasing portfolio
74 66 excluding IFRS 16(1)
439 459 598 575
End of FY 2020 End of H1 2021 End of FY 2020 End of H1 2021
2.1x 2.0x Net debt / EBITDA Strong liquidity position
0.4x 0.7x
Net debt excl. leasing / €722 million, of which:
EBITDA excl. leasing
€322m of cash
1.93x incl. 2.13x incl.
ODIRNANE ODIRNANE €400m of undrawn credit facility (maturing 2024)
Thanks to FCF generation and EBITDA recovery, Group leverage ratio evolution has been contained
between January and July 2021.
Closing rates: EUR/USD H1 2021 = 1.19 and FY 2020 = 1.21; EUR/GBP H1 2021 = 0.85 and FY 2020 = 0.88 30
(1) Excluding ODIRNANE of €265 million, maturing 2022 – classified in equity under IFRS
© 2021 Quadient. All rights reserved.FY 2021 outlook
Quadient
Customer
Journey
Explorer
Geoffrey GODET
CEO2021 outlook
Upgraded guidance on current EBIT for FY 2021
SCOPE: GROUP
1
ASSUMPTIONS
Revenue growth
SCOPE CHANGE: Negative impact of the divestment of the APS business on
expected organic revenue growth in 2021 versus initial full-year guidance
Maintained above 4% organic growth
SOLUTIONS TRENDS FOR H2 2021
in 2021
─ ICA: Continued strong growth momentum for subscription and
accelerated shift in model from license to SaaS in H2 2021 despite scope change…
─ MRS: Organic sales decline expected at be at low single digit level
in H2 2021
─ PLS: Due to the particularly high comparison basis set by the Lowe’s 2
contract in H2 2020 (PLS organic growth at c.+29% in Q3 2020 and c.
+88% in Q4 2020), expected c. 15% organic decline in H2 2021 in PLS UPGRADED
revenue despite of the dynamic rollout planned for H2 2021 and the
growing level of subscription-related revenue from the installed base
Current EBIT growth
OPERATING EFFICIENCIES impacting positively Group current EBIT (real Above 6% organic current EBIT growth in
estate footprint, simplification and further integration of the organization) 2021(1)
partially offset by now anticipated increase in freight costs in H2 2021 as
well as active hiring campaign and continued investment in talent to Vs. 5-6% organic current EBIT growth
support growth. in 2021(1) previously
(1)Current EBIT = current operating income before acquisition-related expenses;
Organic: excluding FX and scope effects, based on 2020 current EBIT excluding earn-out reversal (i.e. €145 million) with a scope effect resulting 32
in a €140 million proforma © 2021 Quadient. All rights reserved.Mid-term ambitions by solution
On track to achieve our mid-term ambitions by solution
SCOPE: MAJOR OPERATIONS
Intelligent Communication Automation Mail-Related Solutions Parcel Locker Solutions
Over 20-25% subscription- Better than -5% organic
CAGR revenue decline
More than 25k lockers
related revenue CAGR By the end of the 3-year plan
Over the 3-year plan Over the 3-year plan
+19.9% in H1 2021 +5.1% in H1 2021 1,500+ new installs in H1 2021
c.30% Solution Profit High Solution Profit Margin 35-40% Profit Margin of
Margin in the range of 43-45% the Installed Base
On a FY basis by the end of the 3-year On a FY basis by the end of the 3-year On a FY basis by the end of the 3-year
plan plan plan
16.0% in H1 2021 44.5% in H1 2021 25-30% in H1 2021
33
© 2021 Quadient. All rights reserved.2021-2023 outlook confirmed
SCOPE: GROUP
1
Topline growth Minimum 3% organic growth CAGR over 2021-23
2
Current EBIT Minimum mid-single digit organic current EBIT growth CAGR over 2021-23(1)
growth
(1) Current EBIT = current operating income before acquisition-related expenses; Organic: excluding FX and scope effects, based on 2020 current EBIT excl. earn-out reversal (i.e. €145 million)
34
© 2021 Quadient. All rights reserved.INVESTOR RELATIONS
financial-communication@quadient.com
https://invest.quadient.com/
NEXT EVENTS
• Q3 sales: 7 December 2021
35Appendices
Quadient
Customer
Journey
Explorer
Quadient
X-seriesQuadient helps 400k organizations connect with customers,
employees and stakeholders
RECEIVE Accounts
COLLECT
Contact Free
Receivable Parcel automation
Automation
Automate AR collections, predict payments and speed Smart and secure pick-up, drop-off solution that
up payments through better visibility and control offers convenience, security, and peace of mind.
Accounts Mail
PAY Payable Preparation & SEND
Automation Delivery
Your
Organization Quickly develop, test and deploy integrated
Automate AP processes including validation, approval
and payment to spend more time managing your cash online and mobile experiences aligned to the
consumers' channel of choice
Personalized Accounts
Journey
Omni-channel Receivables
Analytics &
Communications Automation
ENGAGE Orchestration OPTIMIZE
Map and orchestrate customer and
Generate compliant communications at scale including notifications,
correspondence, emails, statements and policies, governed by approval workflows
CONNECT communication journeys while measuring
business outcomes across different touchpoints
Parcel Locker Solutions
37
Intelligent Communication Automation Mail-Related Solutions
© 2021 Quadient. All rights reserved.Q2 2021 revenue bridge
Q2 2021 revenue bridge
(in €m, % of organic change vs. Q2 2020)
Group
+11.1%
organic change
Major Operations
9 -8
+7.7% 258
organic change +17.5%
+4.0% 3 +57.5% -3.4%
+17.3% 6
246
-6 8
-2.6%
Q2 2020 Scope Intelligent Mail-Related Parcel Locker Additional Currency Q2 2021
effect (1) Communication Solutions Solutions Operations effect (2)
Management
(1) Scope effects: divestments of ProShip and Graphics in Australia; acquisitions of YayPay and Beanworks.
38
(2) Average rates Q2 2021: EUR/USD = 1.20 and EUR/GBP = 0.86 © 2021 Quadient. All rights reserved.Q2 2021 revenue summary
SALES Major Additional Total Group
% of organic growth (1) Operations Operations
vs. Q2 2020
Intelligent Mail Parcel €127m
North America Communication Related Locker +10.3%
Automation Solutions Solutions
Main European €92m
countries +3.6%
€13m
International
+11.5%
€52m €161m €19m €232m €26m €258m
+17.3% +4.0% +17.5% +7.7% +57.5% +11.1%
% ofInternational
(1) The organic change vs. theincludes
segment same period in 2020; of
the activities 2020 dataLockers
Parcel was restated to take
Solutions into and
in Japan account the product
of Customer reclassification
Experience from Intelligent
Management Communication
(ICA) outside Automation
of North America and the to Mail-Related
Main European Solutions
countries.
39
(2) 2020 data was restated to take into account the product reclassification from Intelligent Communication Automation to Mail-Related Solutions © 2021 Quadient. All rights reserved.P&L
(in € millions) 31/07/2020 31/07/2021
Sales 485 504
Cost of sales (129) (137)
Gross margin 356 366
R&D expenses (25) (27)
Sales expenses (126) (128)
Administrative and general expenses (101) (91)
Maintenance and other expenses (45) (51)
Employee profit-sharing and share-based payments 2 0
Current operating income before acquisition-related expenses 61 70
Acquisition-related expenses (11) (6)
Current operating income 50 65
Optimization expenses and other operating income & expenses (0) (12)
Operating income 42 53
Financial income/(expense) (17) 3
Income before taxes 25 55
Income taxes (3) (10)
Share of results of associated companies 0 0
Net attributable income 21 45
Minority interests 1 1
Net income 22 46
40Consolidated balance sheet (1/2)
31/07/2020 31/01/2021 31/07/2021
Assets (in € millions)
Goodwill 1,040 1,026 1,106
Intangible fixed assets 128 128 120
Tangible fixed assets 213 207 188
Non-current financial assets 62 65 90
Other non-current receivables 3 3 4
Leasing & financing receivables 613 598 575
Deferred tax assets 18 17 20
Inventories 75 71 65
Trade receivables 187 231 182
Other current assets 104 100 108
Cash and cash equivalents 533 514 322
TOTAL 2,978 2,960 2,780
41
41Consolidated balance sheet (2/2)
31/07/2020 31/01/2021 31/07/2021
Liabilities (in € millions)
Shareholders’ equity 1,220 1,240 1,280
Non-current provisions 25 27 26
Non-current financial debt 822 821 734
Current financial debt 297 205 114
Other non-current debt 1 1 1
Deferred tax liabilities 144 148 146
Prepaid income 168 187 163
Other current liabilities 296 328 312
Financial instruments 4 3 4
TOTAL 2,978 2,960 2,780
42
42Financial debt structure and future cash flows as at 31 July 2021
Improving leverage in spite of Beanwork’s acquisition
Financial debt and maturities
IFRS 16 debt
848
Net financial debt 43
excluding IFRS 16(1) 66
Gross debt due to 322
financial institution
Other debts
526 372
346
66
738
265
265 187 325
163
459
75
81 23
47
End of H1 2021 Cash Total financial debt 2021 2022 2023 2024 2025 2026
at the end of H1
Bond 2.50% Bond 2.25% ODIRNANE Schuldschein (2017, 2019, 2020)
2021
Leasing portfolio and rental future cash flows
758 228
183 195
59
51 161
37
102
Rental future
cash flows 575 169 22 54
145 125 18
Leasing portfolio 80 10 5 18
43
13
End of H1 2021 2021 2022 2023 2024 2025 2026
Closing rates: EUR/USD H1 2021 = 1.19 and FY 2020 = 1.21; EUR/GBP H1 2021 = 0.85 and FY 2020 = 0.88 43
(1) Excluding ODIRNANE of €265 million, maturing 2022 – classified in equity under IFRS
© 2021 Quadient. All rights reserved.All financial covenants easily met
Schuldschein 2019, Schuldschein 2020 and Revolving Credit Facility Schuldschein 2017
(excluding IFRS 16) (including IFRS 16)
Quadient level as at Jan. 31, 2021 Quadient level as at July 31, 2021 Quadient level as at Jan. 31, 2021 Quadient level as at July 31, 2021
Covenants Intercompany net leasing debt Intercompany net leasing debt Intercompany net leasing debt Intercompany net leasing debt
Maximum drawing: 90% of
on leasing standing at 75% of outstanding standing at 72% of outstanding standing at 75% of outstanding standing at 72% of outstanding
outstanding leasing portfolio
operations leasing portfolio leasing portfolio leasing portfolio leasing portfolio
Maximum leverage of 3.0 (1)
0.0 0.4 0.4 0.7
excluding leasing entities
Covenants Minimum equity: €600m €1,240m €1,280m €1,233m €1,273m
on non
leasing
operations Default Rate < 5% ~1.7% ~1.8% ~1.7% ~1.8%
Minimum interest cover (2): 4.0 7.7 9.3 7.9 9.5
(1) Net debt excluding leasing/EBITDA excluding leasing; 44
(2) EBITDA/net cost of debtRestated 2020 figures by quarter
SALES
(in €m, unaudited figures) Q1 2020 Q2 2020 H1 2020 Q3 2020 Q4 2020 FY 2020
Major Operations 215 222 437 229 254 919
Intelligence Communication Automation 42 44 87 47 51 183
Mail Related Solutions 158 161 318 161 173 653
Parcel Locker Solutions 15 17 32 21 30 83
Additional Operations 24 24 48 29 33 110
TOTAL GROUP 239 246 485 258 287 1,029
Sales
(in €m, unaudited figures) Q1 2020 Q2 2020 H1 2020 Q3 2020 Q4 2020 FY 2020
Major Operations 215 222 437 229 254 919
North America 118 121 239 127 135 501
Main European Countries (1) 85 88 173 89 105 367
International (2) 12 12 25 12 14 51
Additional Operations 24 24 48 29 33 110
TOTAL GROUP 239 246 485 258 287 1,029
(1) Austria, Benelux, France, Germany, Ireland, Italy, Switzerland, United Kingdom. 45
(2) The International segment includes the activities of Parcel Lockers Solutions in Japan and of Customer Experience Management (ICA) outside of North America and the Main European countries. © 2021 Quadient. All rights reserved.You can also read
