Solutions 30 : 2021 Interim financial report

Contents

1. HALF-YEARLY ACTIVITY REPORT AND SIGNIFICANT EVENTS DURING THE PERIOD	4
2. CERTIFICATION OF THE HALF-YEARLY FINANCIAL REPORT	8
3. CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS	10
3.1 INTERIM CONSOLIDATED FINANCIAL STATEMENTS	11
3.1.1. Interim consolidated statement of financial position	11
3.1.2. Interim consolidated statement of comprehensive income	12
3.1.3. Interim changes in consolidated equity	13
3.1.4. Interim consolidated statement of cash flows	14
3.2 NOTES	15
Note 1: Information on the company and group	15
Note 2: Basis of preparation	15
Note 3: Scope of consolidation	17
Note 4: Revenue and customers	18
Note 5: Operating income	18
Note 6: Income tax	21
Note 7: Intangible assets and property, plant and equipment	21
Note 8: Financial instruments	22
Note 9: Cash	23
Note 10: Related party disclosures	23
Note 11: Important events after the end of the reporting period	24
4. AUDITOR'S REPORT ON THE CONDENSED INTERIM CONSOLIDATED FINANCIAL	25
STATEMENTS

Solutions 30 | Financial Report for the Half-Year ended June 30, 2021

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1. HALF-YEARLY ACTIVITY REPORT AND SIGNIFICANT EVENTS DURING THE PERIOD

Solutions 30 | Financial Report for the Half-Year ended June 30, 2021

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1. Half-yearly activity report and significant events during the period

Key figures

In millions of euros	06.30.2021	06.30.2020	Variation
Revenue	441.3	365.1	+20.9%
Adjusted EBITDA	49.5	41.3	+19.8%
As a % of revenue	11.2%	11.3%
Adjusted EBIT	29.6	21.5	+37.5%
En As a % of revenue	6.7%	5.9%
Consolidated net income	14.6	10.5	+39.5%
As a % of revenue	3.3%	2.9%
Net income, group share	14.1	10.4	+35.3%
As a % of revenue	3.2%	2.9%
Financial structure figures	06.30.2021	12.31.2020	Variation
In millions of euros
Equity	184.7	170.0	+14.7
Net debt	42.9	28.9	+14.0
Net bank debt	(44.0)	(59.2)	+15.3

+20.9% growth in revenue in the first half of 2021

Solutions 30's consolidated revenue for the first six months of 2021 amounted to €441.3 million, up +20.9% (+17.5% organic growth) compared to the same period in 2020. Maintenance activities, which are recurrent, represent 58% of revenue. The group is accelerating its expansion outside of France, illustrating the relevance of its strategy to duplicate its success in France.

In France, over the first six months of the year, revenue reached €270.3 million, a purely organic increase of +20.5%. This growth has been bolstered by:

• A +22.3% increase in revenue from the telecom business, which remains very dynamic. Momentum for the fiber business remains strong with roll-outs in lower-density areas, increasing subscriber connections, and maintenance Solutions 30's core business which accounts for 75% of its fiber business.
• An +18.1% increase in the energy business due to a favorable base effect since smart meter installations were interrupted during the first lockdown from March 17 to May 11, 2020. This activity generates half of the revenue for the energy business, i.e. 10% of revenue in France.
• The performance of the IT business, which is back on track for growth over the six-month period, posting a +24.1% increase in revenue.

In the Benelux, over the first half of 2021, revenue was up +13.1% (+9.8% organic growth) to €74.9 million. The roll- out of ultra high-speed networks is beginning to take shape and is driving the group's sales momentum, while the start of the smart meter roll-out program in Flanders, which has been contributing to the top line since March, has been driving growth for the first six months of the year.

In other countries, the group posted revenue of €96.1 million for the first half of 2021, up +28.8% (+15.5% organic growth) compared to the first half of 2020. In Italy, revenue was up +54% thanks to the rapid ramp-up of the contract signed at the beginning of the year with TIM. In Spain, revenue was up +44%, thanks to the telecoms portfolio. Half-yearly revenue was stable for Germany and Poland. In the United Kingdom, where the group has been operating since the end of 2020, revenue reached €7.4 million.

Solutions 30 | Financial Report for the Half-Year ended June 30, 2021

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Stability of the EBITDA margin, considering the rapid ramp-up of new contracts

Reconciliation between operating income and adjusted EBITDA

In thousands of euros		06.30.2021		06.30.2020
Operating income		17,532		16,193
Depreciation of IFRS 16 rights of use		12,268		11,195
Increases in operational provisions		7,658		8,628
Customer relationship amortization		7,276		5,602
Other non-current operating income		-		(270)
Other non-current operating expenses		4,789		-
Adjusted EBITDA		49,525		41,348
As a % of revenue		11.2 %		11.3 %
Reconciliation between operating income and adjusted EBIT
In thousands of euros		06.30.2021		06.30.2020
Operating income		17,532		16,193
Customer relationship amortization		7,276		5,602
Other non-current operating income		-		(270)
Other non-current operating expenses		4,789		-
Adjusted EBIT		29,598		21,525
As a % of revenue		6.8 %		6.0 %
	earlier due to ramp-ups in the energy and telecom
During the first half of 2021, the priority was to invest in	businesses.
recruiting and training teams to take on the significant
increase in workload from contracts the group signed and	In other countries, EBITDA was €1.7 million, representing
to support the roll-out of new technologies in several	1.8% of revenue, compared with 3.4% a year earlier. In
European countries. The group is preparing to accelerate	Italy and Spain, the ramp-up of major contracts signed in
its growth in several countries, given the sales momentum	the telecoms sector has had a temporary impact on
and new contracts signed since the end of 2020.	profitability. In Germany, restructuring the organization to
Adjusted EBITDA was €49.5 million at the end of June	prepare for future growth is weighing on profitability.
2021, up +19.8% compared to the first half of 2020. The	After accounting for €7.7 million in impairments and
operating margin was 11.2%, virtually unchanged	operational provisions, and after amortizing the usage
compared to the first half of 2020 (11.3%). Because of the	rights for leased assets (IFRS 16), worth €12.3 million,
workload ramp-up, operating costs increased by + 1.7	adjusted EBIT stood at €29.6 million, i.e. 6.7% of revenue
points compared with the first half of 2020 and	compared with 5.9% for the first half of 2020.
represented 79.9% of revenue, while the burden of
structural costs fell to 8.8% of revenue compared with	The first half of the year includes €4.8 million of other
10.4% in the first half of 2020.	current operating expenses, which mainly consist of
	exceptional expenses incurred by the group to put an end
In France, adjusted EBITDA amounted to €41.9 million,	to the violent smear campaign against it.
representing a margin of 15.5%, up +1.1 points compared
to the first half of 2020. The sheer volume of the fiber	Customer relationship amortization amounted to €7.3
business is driving margins, while the energy business is	million in 2021, compared to €5.6 million a year earlier.
preparing to wind down smart electricity meter roll-outs,	After taking into account a tax expense of €3.6 million
which will be offset by the need to install charging stations	compared to €3.7 million a year earlier, and financial
and activities related to the energy transition and	income of €0.7 million compared to (€2.0) million a year
renewable energies.	earlier, the group's share of net income reached €14.1
In the Benelux, adjusted EBITDA was €10.4 million,	million, compared to €10.4 million in the first half of 2020.
resulting in a margin of 13.8% compared to 14.1% a year

Solutions 30 | Financial Report for the Half-Year ended June 30, 2021

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