Deep dive into Solutions30 business model

• A proven customer-centric business model, solid execution, standardized operations, and rigorous monitoring of KPIs¹, now rolled out across Europe
• Ability to attract talent, train technicians, and expand subcontracting
• Clear operating strategy to improve EBITDA margins towards double-digit
  • France and Benelux: cost optimization and business diversification
  • Germany, Poland, United Kingdom: Scaling up the business, along with strict cost control
  • Italy and Spain: focus on most profitable contracts while ensuring cost structure flexibility
• Utting-edge IT and operational tools dedicated to process, services, and business innovation
• Solid financial structure and limited cash requirement to finance growth

Solutions30 is organizing a webinar today at 10:00 am CET to provide a better understanding of its business model.

This webinar will be in English and is hosted by CEO Gianbeppi Fortis, with the participation of:

• Wojciech Pomykala, Chief Operating Officer (COO)
• Amaury Boilot, Group Secretary General
• Luc Brusselaers, Chief Revenue Officer (CRO)
• Jonathan Crauwels, Chief Financial Officer (CFO)

To follow the webinar, click here.

Key Factors Driving Profitability

Solutions30 has a tried and tested business model that has proven itself in France and is now being rolled out across Europe. This model relies on several factors to effectively manage profit margins:

• Rigorously selecting contracts combined with a streamlined, standardized approach for managing launch phases
• Hiring and training technicians and selecting subcontractors in Europe, to facilitate the ramp-up of contracts
• Developing IT tools and platforms to standardize operations and enhance business management
• Leveraging offshore resources to effectively manage back-office tasks
• Close monitoring of operational profitability, with extensive KPIs for each technician and business unit
• Standardizing project organization to manage internal and external resources

Key Actions to Improve Margins in Each Country

Solutions30 is present in 8 major geographical areas with 3 main businesses:

• Connectivity (fiber, mobile, and dismantling of copper networks)
• Energy (smart meters, charging stations for electric vehicles, renewable energy, especially solar power, and electrical grids)
• Technology (IT, networks, security, and connected objects)

The group has proven its ability to incorporate new regions and is committed to increasing each country’s EBITDA margin to reach its double-digit target. To reach this goal, the group is focused on optimizing efficiency in terms of its variable and fixed costs. This involves implementing strategies tailored to the unique challenges and characteristics of each country it operates in:

• Tier 1 zones (France, Benelux): improving process industrialization, optimizing costs, diversifying activities
• Tier 2 zones (Germany, Poland, United Kingdom): reaching critical size, training technicians, automating processes, controlling central costs
• Tier 3 zones (Italy, Spain): refocusing on the most profitable contracts and maintaining a flexible cost structure.

Tools and Solutions to Improve Efficiency and Customer Satisfaction

Solutions30 has developed numerous tools and innovative technologies to improve its efficiency in three main areas:

• Process: visual AI and augmented reality tools to automate the verification of call-out compliance
• Services: real-time call-out monitoring tools to improve quality and customer satisfaction
• Business: expanded range of services, from installation to maintenance, customer support, consulting, and project management

Financing Plan for Growth

Solutions30 has a solid financial position, with a net debt/EBITDA ratio of 1.7x at June 30, 2023, well below the 2.5x threshold of its banking covenants. The group has sufficient capital to support its organic growth, which demands minimal cash due to:

• An estimated additional WCR of 1.5% to 5% of revenue, financed by customer advances and the deconsolidating factoring program
• A limited level of investment, between 1% and 2% of revenue

Solutions30 estimates that only around €35 million of cash would be needed to finance €500 million in additional revenue.

The net debt/EBITDA ratio should peak at the end of 2023, while remaining well below the 2.5x ceiling, before beginning a steady decline from 2024 onwards.

For the year 2023, Solutions30 reaffirms its goal of surpassing €1 billion in revenue, coupled with a sustained improvement in profit margins. This positive trajectory is expected to extend into 2024.

Communication timetable for 2024

2023 Revenue Report: January 24, 2024

2023 Earnings Report: April 3, 2024

2023 Annual Report: April 19, 2024

Capital Markets Day: May 2024

2024 Q1 Revenue Report: May 13, 2024

Annual Shareholders Meeting: June 2024

2024 Q2 Revenue Report: July 24, 2024

2024 HY Earnings Report: September 18, 2024

2024 Q3 Revenue Report: November 6, 2024

About Solutions30 SE

The Solutions30 group is the European leader in solutions for new technologies. Its mission is to make the technological developments that are transforming our daily lives accessible to everyone, individuals and businesses alike. Yesterday, it was computers and the Internet. Today, it’s digital technology. Tomorrow, it will be technologies that make the world even more interconnected in real time. With more than 65 million call-outs carried out since it was founded and a network of more than 15,000 local technicians, Solutions30 currently covers all of France, Italy, Germany, the Netherlands, Belgium, Luxembourg, the Iberian Peninsula, the United Kingdom, and Poland. The capital of Solutions30 SE consists of 107,127,984 shares, equal to the number of theoretical votes that can be exercised.
Solutions30 SE is listed on the Euronext Paris exchange (ISIN FR0013379484- code S30). Indexes: MSCI Europe ex-UK Small Cap | SBF 120 | CAC Mid 60 | NEXT 150 | CAC Technology | CAC PME.
Visit our website for more information: www.solutions30.com

Contact

Shareholders:
Investor Relations - Tel: +33 1 86 86 00 63 - shareholders@solutions30.com

Analysts/Investors:
Nathalie Boumendil - Tel: +33 6 85 82 41 95 - nathalie.boumendil@solutions30.com

Press - Image 7:
Charlotte Le Barbier - Tel: +33 6 78 37 27 60 - clebarbier@image7.fr

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¹ Key Performance Indicators

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• S30_2023-12-13_PR Webinar