INVESTOR PRESENTATION - including 2020 Q3 Revenue January 2021 - Solutions30
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
INVESTOR PRESENTATION including 2020 Q3 Revenue January 2021
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
Recurring activities in 2019 63% €682.2m
Average annual growth since 2007 +30% 2003 11,000 personnel 60,000
Creation Date 6,800 direct employees call-outs per day
EUROPEAN FOOTPRINT
451.8 Germany
9%
UK
New
274.5 Poland
Benelux New
18%
191.6
France
125.1 64%
111.5 Italy
95.0
77.2 5%
63.3
44.9 54.7 Iberia
30.1 36.2
In €m 4%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
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
▪ Installation of EV charging stations to support working and everyday lives ▪ 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…
sources of energy, including renewable economic fragility of some players
▪ 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
solutions to end-clients, TELECOM ENERGIE IT
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
We accelerate the transition RETAIL SECURITY IoT
2% of revenue 2% of revenue 1% of revenue
to digital by delivering “last
mile” solutions, including
connected equipment Installation and
Installation and Installation and
deployment and assistance. maintenance of point maintenance of
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
businesses through long-term as possible – first mover management and repetitive ➔ A robust development base
contracts on diversified advantage tasks
markets easy to duplicate
▪ Lead the market consolidation ▪ Accelerate integration process
▪ Standardise interventions to on new markets and
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
Dispatching support base to increase first time
fix rate
Tickets managed in the month
OK to invoice
➔ Strong integration with
ERP S30.net customers’ ERP supports
Invoice clients’ loyalty
Payment 60-90 days
➔ Strong barriers to entry
9
ESTABLISHED PORTFOLIO OF LOYAL CLIENTS
Year of market entry 2003 2003 2011 2011 2009 2009
TELECOMS ENERGY IT RETAIL SECURITY IoT
10DECEMBER ATTACK SOLUTIONS 30 REACTION
2019-01-02
2019-02-02
2019-03-02
Volume
2019-04-02
May 19 - Muddy Waters
2019-05-02
2019-06-02
Price
2019-07-02
2019-08-02
2019-09-02
2019-10-02
2019-11-02
2019-12-02
2020-01-02
2020-02-02
2020-03-02
2020-04-02
Covid
FY Results
2020-05-02
2020-06-02
2020-07-02
2020-08-02
2020-09-02
HY Results & SBF120
2020-10-02
2020-11-02
Shortsellers activity
2020-12-02
2021-01-02
SOLUTIONS 30 – SHARE PRICE HISTORY SINCE 1/1/2019
December 20 – « Report »
12DECEMBER 2020 - ATTACK
Mid-november 2-level answer Long-term confidence
Report circulated 1. Short-term: immediate denegation of 1. Focus on clients satisfaction
among sell-side accusations, transparency & dialogue and business : no impact of
analysts through fireside chats, 1-to-1 meetings the attack on customers
and website confidence or operations.
2. Long-term: criminal complaint and 2. Launch of an independent
complaint to regulators (AMF + CSSF) audit
SHORT-SELLER ENTRY REPORT CIRCULATION PUBLIC ATTACK
Oct. - Nov. Dec. 8th 2020
Report supposedly Reception of anonymous report
circulated among by S30.
hedge-fund
The anonymous report contains serious accusations based on gross errors, shortcuts and misleading constructions
13INDEPENDENT AUDIT
Overall Management of audit mission by a « Big Four » firm
SUPERVISORY ACCOUNTING AUDIT REPUTATIONAL AUDIT
MANAGEMENT
BOARD Didier Kling Expertise & Conseils Big Four firm
BOARD
Review of Scope ▪ A team of well-respected and ▪ Forensic department with extensive
experienced experts in forensic cases resources Proposal of Scope
Supervision of
Daily interaction
independency
▪ Mission to address all allegations and to carry out any additional investigations
▪ Full independence of investigations, including full access to documents and people
143 KEY TAKE-AWAYS ON SOLUTIONS 30 BUSINESS MODEL
As of 30 June 2020,
OUR REVENUE OUR CASH OUR PRODUCTIVITY
95.6% comes from major Our productivity is due to IT
99.99% of our cash position
international companies, automation and our ability to
of €151.8m is in our
including the main European optimize the workload
European entities.
telco operators, utilities and allocation on our resources
85.1% in France and Benelux.
electronics manufacturers by increasing density.
15INCREASING VOLUMES – 2 EXAMPLES
% of inactivity prior and after acquisition by Solutions 30 Average number of smart meters installed per day and per technician
One client to serve Pooling of S30’s clients needs After joining Solutions 30
8% 13
7%
12
6%
5% 11
4%
10
3%
2% 9
1%
8
0%
169-MONTHS 2020 REVENUE OVERVIEW
HIGHLIGHTS OF Q3 2020
▪ Solid increase in revenue due to strong resilience in
the telecom business : +28.6% (+24.0% organic)
▪ Key sales successes in France, Belgium, Spain and
Poland which support Solutions 30 perspectives
▪ A strong M&A pipe which could lead to strategic
acquisitions for the end of the year
▪ The performance of the 3rd quarter enables to confirm
double-digit growth for FY2020
189M 2020 REVENUE: +19.1% (+12.7% organic)
59% of recurring revenue
Aug. 2019: i-Projects
December 2019: Byon July 2019: Provisiona
(51%) October 2019: CFC (70%)
November 2019:
Telekom Uslugi
January 2020: Elmo
* Including organic growth from acquired companies In millions of euros
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%. 19STRONG RECOVERY IN Q3 2020
+28.6% YoY
(+24% organic)
+17.5% YoY +10.6% YoY
(+10.5% organic) (+3.3% organic)
212.6
200.3
188.5
175.2
167.9
160.4 158
150.7
114.4
91.5
85.2
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020
In millions of euros
20SOLID GROWTH IN ALL GEOGRAPHIES
9M 2020 Revenue +19.1% Q3 2020 Revenue +28.6%
(+12.7% organic) (+24.0% organic)
576.3 212.6
39.4
484.1 112.5
Other countries +30.4% 165.3 Other countries +34.0%
(+7.6% organic) (+14.8% organic)
86.3 33.9
100.1 29.4
Benelux +12.4% Benelux +10.8%
89.1 (+3.3% organic) (+6.3% organic)
30.6
139.3
Other countries 363.7
308.7 France +17.8% 105.3
France +32.3%
(16.9% organic) (+31.6% organic)
Benelux
France
9M 2019 9M 2020 Q3 2019 Q3 2020
In millions of euros
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%. 21OUTLOOK DOUBLE-DIGIT AND PROFITABLE GROWTH CONFIRMED
GROWTH DRIVERS PER GEOGRAPHIES
FTTH 5G SMART METERS EV CHARGING STATIONS INCREASE DENSITY
FRANCE
BELGIUM
NETHERLANDS
GERMANY
SPAIN
ITALY
POLAND
Future Growth Driver Current Growth Driver Mature
23FTTH FIELD SERVICES
FTTH ACTIVITY SEGMENTATION IN FRANCE
158 155
38%
Rebased to 100
as of 2019 x.97
59%
x1.6
Installation 36%
63% x2.6
x1.6 41%
Churn 22% x2.6 25%
Maintenance 15%
2019 2025 2030
Recurring revenue
37% 62% 100%
(Churn + Maintenance)
Maintenance Price: 100
10% of installed base
Churn Price: 70
15% of installed base, of which 5% of new houses and relocations
Installation Price: 150
24ESTIMATED FTTH INSTALLATIONS ADRESSABLE MARKET
145.8m HOMES
FRANCE SPAIN
Market: 23.9m of homes Market: 8.5m of homes
Homes connected 8.3 Homes connected 10.1 A €2.3bn plan to
cover 100% of the
Homes passed 20.8 Homes passed 15.9 country before 2025.
32.2
Homes 40.2 Homes 18.6
NETHERLANDS BELGIUM
Market: 6.2m of homes Market: 5.0m of homes
Homes connected 1.7 Homes connected 0.0
Homes passed 3.3 Homes passed 0.1
Homes 7.9 Homes 5.0
Source: FTTH Council Europe, 2019, except for France: ARCEP, 2020 25ESTIMATED FTTH INSTALLATIONS ADRESSABLE MARKET
145.8m HOMES
GERMANY ITALY Creation of a single
Market: 40.1m of homes Market: 24.9m of homes FTTH network
Homes connected 1.4 Homes connected 1.1 combining TIM and
OpenFiber networks
was approved on
Homes passed 4.1 Homes passed 7.9 Sept.1, 2020.
EU Next generation
Homes 41.5 Homes 26.0 Fund to Italian digital
projects: €42 bn.
UK POLAND
Market: 27.0m of homes Market: 12.7m of homes
Homes connected 0.8 Homes connected 0.9
Homes passed 4.2 Homes passed 4.6
Homes 27.8 Homes 13.6
Source: FTTH Council Europe, 2019 26MOBILE NETWORK - 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 and latency
requirements for 5G, fibre connections are essential to support small-cell deployment in urban areas.
Investment need across network domains Existing tower and rooftop sites in Europe 2018
1 2 3
New spectrum Macro Network Fibre
Legacy 4G network backhaul
Enabling coverage evolution (towers France, 47347 Italy, 47218
More than
bands for IoT, and rooftops)
80-100% fibre 260,000
small cell New sites
backhaul required. sites in S30
networks, Particularly Germany, 70136 geographies
Small cells Netherla
secondary licenses important for urban nds,
Hyper dense cell UK, 38500
small cell networks Poland, 22000 15204
networks.
Up to several
hundred per Czech
square km. Portug Repub
Greece, al, lic,
Spain, 49000 Other countries, 35441 12000 11500 10200
Source: Tower Xchange Europe 2018.
(1)According to market research firm International Data Corporation (IDC), 27STATUS OF THE EUROPEAN 5G MARKET
20.7% 5G spectrum assigned throughout the EU-27 (+UK)
700 MHz 16.8% 6.5% 76.8%
5G Spectrum auctions
3.4-3.8 GHz 38.4% 61.6% France 700MHz assigned in 2015, 3.4-3.8 GHz, postponed to
September 2020 / 26 GHz, 2020
26 GHz 7.1% 3.6% 89.3% Belgium 700 MHz/3.6-3.8 GHz/1.5 GHz in 2020 / 26 GHz: no award
planned / Temporary 5G licences granted to Proximus,
Assigned and usable in 2020 Assigned but non-usable in 2020 Not assigned Cegeka, Entropia, Telenet and Orange Belgium.
Netherlands 700/1500/2100 MHz, auction currently ongoing / 26 GHz in
2021, 3.5 GHz, expected end of 2021/beginning of 2022
Member states who have published national 5G roadmaps Luxembourg award for 700 MHz, 3.4-3.8 GHz to be completed in 2020 / 26
GHz award expected by year-end 2020
Poland 3.6-3.8 GHz, before year-end 2020, 26 GHz in 2022
Germany 700MHz assigned in 2015, 3.4-3.7 GHz assigned in June
2019, assignment of 3.7-3.8 GHz for verticals started in
December 2019
NL
DE Italy All spectrum assigned
LU Spain 3.4-3.6 GHz (160 MHz), 2016 & 3.6-3.8 GHz (200 MHz), July
FR 2018, 700Mhz expected by Q1 2021
A €2bn plan announced by the Government to cover 75% of
the Spanish population by 2025.
ES
UK 700 MHz, 3.4-3.6 GHz to be completed by year end 2020 / 26
GHz: local licences available on demand subject to
coordination.
Source : European 5G observatory – June 2020 28SMART 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
Belgium
Roll-out of 4.3m meters starting in March 2021
for Fluvius
Unit-T selected as N°1 partner with 40% Poland
15% through pilots
market share
France
75% deployed as at August 2020
Italy
Portugal 100%
0% 2 generation of smart meters
nd
is slowly being deployed
Spain
80%(e) by 2020
29EV CHARGERS
PLACE OF INSTALLATION CLIENTS
▪ New market driven by the increase in sales of @Home HARDWARE MANUFACTURERS
electrical vehicle and stimulus plans
encouraging conversion to EV 70%*
FIELD
CHARGE POINT OPERATORS
▪ In H1 2020, EV sales grew by 57 % growth in a SERVICES
vehicle market which declined by 37 %.
@Work
▪ EV market share is 6.7%, compared to 2.9% in INSTALLATION AND MAINTENANCE
2019(3) 20%*
▪ Up to 6,000 € subsidy for EV in Germany and up
ENERGY PROVIDERS
to 5,000 € in France
@Gas Station
▪ 6+ million charging stations installed by 2025 1%*
and 15 million by 2030(1) CAR BRANDS AND LESSORS
▪ US$15 billion of investment will be required in
Europe for the period 2020-2030(2)
@Public
CIVIL ENGINEERING
Solutions 30 has signed a number of 9%*
contracts and is actively bidding for further
contracts in multiple countries
(1) Various sources
(2) McKinsey 30
(3) EV-Volumes / FTACCELERATING GROWTH AND 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: ACCESS TO NEW COUNTRIES OR REGIONS
HIGH-POTENTIAL MARKETS
MARKET SHARE AND ACCESS TO NEW CLIENTS
ABILITY TO REACH GROUP LEVEL PROFITABILITY
31COVID HAS PROVEN THE ROBUSTNESS OF OUR MODEL
AND INCREASED THE POTENTIAL OF OUR MAIN MARKETS
FLEXIBILITY RESILIENCE STRONG OUTLOOK
▪ Ability to scale up had been proven over the ▪ Our activities were considered essential for Our major growth drivers are reinforced and should
past ten years countries’ economy benefit from upcoming stimulus plans:
▪ Ability to scale down has been proven over the ▪ Our markets picked up very fast after ▪ Digitization of the economy and faster Internet
past two months lockdown ▪ Transition to green energy, smart meters and
▪ Variable cost structure was key to preserve a ▪ Even under such exceptional circumstances, electric vehicles
strong cash position we have remained profitable ▪ Search for productivity gains : increased
outsourcing of non-core activities in order to
lower cost base and rationalisation in the
number of suppliers
▪ New M&A opportunities have appeared
STRUCTURAL TRENDS FOR SUSTAINABLE GROWTH
CONTINUED BALANCE BETWEEN EXTERNAL AND ORGANIC GROWTH
MID-TERM TARGET: €1BN TURNOVER
32ESG COMMITMENT
PRELIMINARY S30 MATERIALITY MATRIX
high
Influence on stakeholders’ assessment and
decision making
We are consolidating
Solution 30’s materiality
analysis to prioritize the
issues that have the most
impact on the economy,
society and the environment
and that most influence the
decision making of our
Stakeholders.
Significance of Solutions 30’s economic, environmental or social impact
low
low high
34OUR COMMITMENT TO ESG ALIGNED TO 4 OF THE SUSTAINABLE
DEVELOPMENT GOALS
35ACTION PLAN AND ROADMAP
2018 2019 2020 2021
ISO CERTIFICATIONS: GLOBAL REPORTING INITIATIVE FORMAL LAUNCH OF A DEDICATED ESG RELEASE OF THE FIRST EXTRA-
▪ 9001 GLOBAL TEAM FINANCIAL REPORT AT GROUP
▪ 45001 ▪ ESG new targets and plan definition LEVEL
▪ 14001 ▪ Work on “E” and “S” as we did on “G” in
▪ 27001 2019
RENEWAL OF ALL CERTIFICATIONS ▪ Engaging with our shareholders ESG
RATINGS: AND RATINGS teams
▪ ECOVADIS DISCLOSURE OF NON-FINANCIAL
POLICIES UPDATE / IMPLEMENTATION
▪ Code of Conduct INFORMATION IN THE 2019 ANNUAL
▪ Supplier Code of Conduct REPORT
▪ GAIA
▪ Human Rights
POLICIES UPDATE AND DISCLOSURES:
GOVERNANCE, IDENTIFIED AS A ▪ Environmental
PRIORITY ▪ Data Security
▪ Strengthening of the governance ▪ Human Resources
structures: adoption of new charters ▪ Health and Safety
& creation of 3 committees attached https://www.solutions30.com/corporate-
to the Supervisory Board. social-responsibility/our-policies/
▪ Full governance report now
available IMPROVEMENTS IN RATINGS
▪ ISS, MSCI, ECOVADIS,
SUSTAINALYTICS, GAIA, VIGEO
36GOVERNANCE STRUCTURE
Alexander Sator I Caroline Tissot I Francesco Serafini 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
100% independent members Paul Raguin I Jean-Paul Cottet I Yves Kerveillant I
Member of the Supervisory Board Member of the Supervisory Member of the Supervisory
since April 2018 Board since April 2018 Board since April 2019
Strategy Committee Remuneration & Nomination Audit Committee
President: J. P. Cottet Committee President: Y. Kerveillant
President: A. Sator
GROUP MANAGEMENT BOARD
Gianbeppi Fortis, Amaury Boilot Luc Brusselaers Franck D’Aloia João Martinho
Chief Executive Officer Chief Financial Officer Chief Revenue Officer Chief Operations Officer Chief Operations Officer
in charge of transformation in charge of performance
I Independent Member | All charters are available on the web site : www.solutions30.com / Corporate Governance 37SHAREHOLDING STRUCTURE
UK & Ireland Rest of
North 1.8% World
America 0.4%
11.5%
Management
16.2% Institutions
69.7%
France
Continental 54.5%
Europe
31.8%
Retail
14.1%
Listed on Euronext Paris - Compartment A
Free float >76%
Total number of shares & voting rights: 107,127,984
38INVESTMENT THESIS
THE EUROPEAN LEADER IN LAST DIGITAL MILE & RAPID-RESPONSE FIELD SERVICES
▪ First mover advantage with strong barriers to entry and long-term client relationships with
major telecommunications and utility companies in Europe
▪ A recurring revenue base as maintenance activities historically account for 60 to 80% of the
group’s revenue
A FAST-GROWING COMPANY ACTIVE IN 6 EUROPEAN REGIONS
▪ Markets driven by favourable structural trends, including digital transformation and
decarbonization of the economy
▪ Highly fragmented market of which Solutions 30 is the major consolidation driver, with significant
value creation
A PROFITABLE AND SCALABLE BUSINESS MODEL
▪ Asset light business with high returns on capital
▪ Flexible cost base: a decentralised structure supported by an efficient central organization and a
powerful IT platform
39AGENDA
Full-year revenue, 2020 | 26 January 2021 at 6:00 pm (CET)
CONTACT
Solutions 30 | 3 rue de la Reine | L-2418 Luxembourg
investor.relations@solutions30.com | Tel.: +352 (2) 837 1389
www.solutions30.com
40APPENDIX
41Q3 & 9M 2020 DETAILS PER BUSINESS AND GEOGRAPHIES
FRANCE
9M 2020 Revenue +17.8% Q3 2020 Revenue +32.3%
(+16.9% organic) (+31.6% organic)
TELECOM 71% of France revenue IT 8% of France revenue TELECOM 71% of France revenue IT 7% of France revenue
258.0 98.8
+40% 2.9 32.5 10.3 - 10.3
-14% +46% 0.7
184.1 +39% 28.0 67.5
organic +45%
organic
255.1 98.1
2019 2020 2019 2020 2019 2020 2019 2020
ENERGY 17% of France revenue OTHERS 4% of France revenue ENERGY 18% of France revenue OTHERS 4% of France revenue
+11.9% 25.1 5.1 -
15.7 -4% 15.0 22.4
5.1
76.4 -18%
62.7 3.9
In millions of euros
2019 2020 2019 2020 2019 2020 2019 2020
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%. 43FRANCE
TELECOM IT
▪ FTTH deployment have accelerated sharply, reaching new highs in Q3:
▪ 50% of European FTTH deployment are done in France ▪ Progressive recovery over Q3 with new contracts starting
▪ Both numbers of homes passed and homes connected are increasing ▪ Reorganisation of our service offer and structures to adapt to new market
▪ Keep strengthening market shares: environment and to be able to capture new opportunities from increase in remote
▪ With the 3 main operators working
▪ With operators of public networks promoted by local municipalities ▪ Begun relationship of NextiraOne for IT deployments
▪ Activity expected to remain strong despite new lockdown
ENERGY OTHERS
▪ Smart meters
▪ Recovery after hard stop of rollouts during first lockdown ▪ Stabilisation of revenue over Q3 2020
▪ Deployment of smart meters will continue during Q4 ▪ Negative impact of new lockdown anticipated
▪ Growth expected on EV charging stations thanks to: ▪ Won deployment of POS terminals for Ingenico in the Auchan supermarkets
▪ Record sales of EV during 1H2020
▪ Stimulus plan from French government
44BENELUX
9M 2020 Revenue +12.4% Q3 2020 Revenue +10.8%
(+3.3% organic) (+6.3% organic)
TELECOM 80% of Benelux revenue IT 7% of Benelux revenue TELECOM 82% of Benelux revenue IT 8% of Benelux revenue
+9% 80.2 7.3 27.8
-7% 24.7 +12% 2.6
6.8 +59%
73.3 +9% 0.3
organic 1.6
79.9
2019 2020 2019 2020 2019 2020 2019 2020
ENERGY 6% of Benelux revenue OTHERS 7% of Benelux revenue ENERGY 4% of Benelux revenue OTHERS 7% of Benelux revenue
5.9 7.2 3.0
+28% 1.2 - 1.2 -23%
+107% 2.3
5.7
3.5 -30% 0.2
-43% 4.2 -34% organic
2.8 organic organic 2.1
In millions of euros
3.7
1.7
2019 2020 2019 2020 2019 2020
0 2019 2020
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%. 45BENELUX
TELECOM IT
▪ Proximus is accelerating FTTH deployment ▪ Won Managed Deployments contract for Dell
▪ Telenet is in talks with Fluvius for FTTH deployment ▪ Won new support contracts for in-warranty products of Dell
▪ Tender offers for 5G activities on going ▪ Drop of volumes during COVID because of shutdown of office space
▪ Began working with Ericsson on mobile networks maintenance ▪ New services for remote workers do not compensate drop of @office assistance.
ENERGY OTHERS
▪ In Q3 2019 special deployment provides unfavourable comparison basis
▪ Limited impact of Covid on the recurring revenues
▪ Slow down in smart meters and EVC deployment in the Netherlands
▪ Deployment projects postponed to H2
▪ Unit-T pre-selected as primary partner of Fluvius for the deployment of smart
meters in Flanders. Details of contract under discussion.
46OTHER COUNTRIES
9M 2020 Revenue +30.4% Q3 2020 Revenue +34.0%
(+7.6% organic) (+14.8% organic)
GERMANY 42% of OC revenue ITALY 17% of OC revenue GERMANY 42% of OC revenue ITALY 16% of OC revenue
16.4
+11% 47.1 -16% 15.1
23.1 +9% 7.0 6.3
42.6 19.5 -11%
-9%
organic
-5%
organic 6.7
21
-0.4
-1.5
2019 2020 2019 2020 2019 2020 2019 2020
IBERIA 25% of OC revenue POLAND 16% of OC revenue IBERIA 26% of OC revenue POLAND 16% of OC revenue
27.8
10.3 6.4
+35% +42%
20.6 7.9 18.1 2.3
-3% 7.3
+10% 3.8
organic organic
13.3
In millions of euros
19.9 8
2.6
4.8
0
2019 2020 2019 2020 2019 2020 2019 2020
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%. 47OTHER COUNTRIES STRONG SALES PIPE IN TELECOM AND ENERGY
GERMANY ITALY
▪ Continued double-digit growth with limited impact of Covid-19
▪ Good performance of CFC
▪ Telecom:
▪ Organic growth burdened by the sale of DXC activity
▪ Increase of volumes with Vodafone/Unitymedia
▪ Stimulus plans expected with significant investments in Telecom and Energy in
▪ Startup of some fiber related activities
2021
▪ JV announced between Allianz and Telefonica for FTTH roll-out in rural and
▪ The principle of the creation of a single FTTH network combining TIM and
semi-rural areas
OpenFiber networks was approved on Sept.1, 2020 and Fiber deployment should
▪ Deutsche Glassfaser is planning FTTH deployment
start in Italy in 2021.
▪ Energy:
▪ With new financing from KKR, TIM plans aggressive investments on fiber in 2021
▪ Smartmeters rollout on-going, but no new tender offers at the moment
▪ Beginning of EV chargers activities in June
SPAIN POLAND
▪ Fiber activities keep being dynamic (Masmovil)
▪ Good startup of Poland with successful Integration of Telekom Uslugi and ELMO
▪ Won new activities for Euskaltel/Virgin
▪ Revenue base of €24m
▪ Increased 5G related activities, won new activities for Cellnex
▪ Won new contract with Orange Poland for 5G deployment
▪ Drop of IT activities because of shutdown of office space
48HIGHLY RESILIENT FINANCIAL RESULTS STRENGTHENING OUR BUSINESS MODEL WHILE THE DIGITAL TRANSFORMATION IS ACCELERATING
ADJUSTED EBITDA MARGIN OF 11.4%
€ millions HY 2020 HY 2019 Change
Revenue 363.7 318.8 +14% ▪ Continued cost control
Operational costs 284.2 249.3 +14% ▪ Favourable impact of temporary unemployment
measures
As % of turnover 78.2% 78.2%
▪ Adjustment of outsourcing resources, with
Central org. costs 37.9 28.9 +31% optimised balance between direct personnel and
As % of turnover 10.4% 9,1% subcontractors
Adjusted EBITDA(1) 41.5 40.6 +2% ▪ Limited impact of the Covid situation on
profitability
As % of revenue 11.4% 12.7%
▪ 1.3 pp vs. HY2019
Operational depreciation -19.7 -16.1 +23%
As % of revenue -5.4% -5.0%
Adjusted EBIT(1) 21.8 24.5 -11%
As % of revenue 6.0% 7.7%
(1) Correction of elements considered by the company as being exceptional or non-recurring to provide a better reading of operational performance
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
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%. 50ADJUSTED EBITDA PER GEOGRAPHY
FRANCE BENELUX OTHER COUNTRIES
€224.3m €66.2m €73.1m
€203.3m €58.5m
€57.0m
€32.3m €32.4m €9.3m
€6.0m 14.1% €4.9m €2.7m Adj. EBITDA
15.9% 14.4%
10.2% 8.6% 3.7% Revenue
▪ Overall impact of lockdowns limited to 1.3 pp on EBITDA margins but margins below normative levels in all countries
▪ Impact in France limited to 1.5 pp despite sudden drop in activity during the 2-month lockdown
▪ Favourable base effect in Benelux due to the learning curve of Unit-T (major contract won in July 2018)
▪ Conjunction of negative effects in other countries
▪ Italy and Spain severely hit by the lockdown
▪ Germany margins sub optimal because critical size is not reached yet
▪ Start-up effect in Poland
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%. 51NET INCOME (GROUP SHARE) OF 2.9%
€ millions HY 2020 HY 2019 Change
Adjusted EBIT 21.8 24.5 -11%
Amortisation of intangibles -5.7 -4.7 +21%
Financial result -2.0 -1.0 +100% ▪ Increase in amortisation of intangibles
Non-recurring items 0.3 0.0 ▪ Increase in Client relationships reflecting the M&A
-3.8 -3.5 +11% activity performed during H2 2019
Corporate taxes
Consolidated net income 10.5 15.3 -31% ▪ Increase in financial expenses
▪ Unfavourable currency effect in Poland and in Tunisia
As % of revenue 2.9% 4.8%
Net income (group share) 10.5 15.5 -32%
As % of revenue 2.9% 4.9%
In millions of euros
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%. 52STRONG DECREASE IN WORKING CAPITAL
REFLECTING ATTENTION PAID TO CASH
Net bank debt €3.0m Net bank cash €45.9m
Net gross debt €91.8m Net gross debt €26.7m
Fixed assets Equity 148.8
Fixed assets 207.2
Equity 138.3
208.8
Provisions 49.3
Provisions 49.2
Rights of use
(IFRS 16) 57.9
Leasing Debt (IFRS16) 57.8
Leasing Debt (IFRS16) 61.6 Debt on future earn outs &
Rights of use purchase options 14.8
(IFRS 16) 61.9
Gross Debt
Debt on future earn outs &
Bank Debt
purchase options 27.2 MLT Financial Debt 77.1
Working capital 8.7 Cash 151.8
MLT Financial Debt 65.8 ST Debt 28.8
Cash 84.2
ST Debt 21.3 Working Capital -40.4
31/12/2019 30/06/2020
Outstanding position of receivables sold to the factor: €54m Outstanding position of receivables sold to the factor: €43m
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%. 53HY2020: 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%. 542020 CHANGES IN SCOPE OF CONSOLIDATION
COUNTRY COMPANY DATE OF REVENUE AT TIME OF COMMENT
CONSOLIDATION ACQUISITION
France Byon (51%) 1 Dec 2019 €2m A portfolio of contracts of €40m (3
years)
Spain Provisiona 1 July 2019 €2m 5G market penetration
Benelux i-Projects 1 July 2019 €13m Enter the energy market in the
Netherlands
Italy CFC 1 Oct 2019 €5m Broadening of IT offer in Italy
Poland Sprint (Telekom Uslugi) 31 Oct 2019 €6m New geography
Poland Elmo 1 Jan 2020 €15m New geography
(acquisition of assets)
55You can also read
