Solutions 30 (S30) CMD 2024 summary

Strategic direction and operational focus

• Margin improvement and cash generation prioritized over revenue growth, with a focus on operational excellence and profitability in France, Benelux, and Germany by 2026.

• Selective contract and market approach, with potential exits from non-profitable geographies and disciplined portfolio management.

• Energy and technology sectors prioritized for accelerated growth, with energy revenue in France expected to triple to around €150m by 2026 and significant expansion in Germany.

• Continued bolt-on M&A strategy to consolidate fragmented markets, especially in energy and connectivity, while maintaining a low leverage ratio and non-dilutive financing.

• ESG and compliance integrated into strategy, with KPIs tied to management incentives, group-wide training, and 2030 carbon reduction targets to be validated by SBTi.

Financial guidance and performance

• Targeting double-digit (above 10%) adjusted EBITDA margins in France, Benelux, and Germany by 2026, with the rest of Europe managed for profitability or exit.

• No group-wide revenue guidance for 2026, but long-term ambition is to double group revenue compared to 2023 while maintaining double-digit EBITDA margin.

• Working capital and cash flow improvements achieved through contract renegotiations, process automation, and advance payments, especially in Germany.

• M&A deals executed at favorable multiples (3–6x EBITDA), supporting growth without shareholder dilution and maintaining leverage below 2x net debt/EBITDA.

• Incentive policies now prioritize margin and cash generation over revenue growth.

Regional strategies and 2026 objectives

• France: Energy segment to triple revenue to around €150m by 2026, focus on solar, grid upgrades, and decommissioning of copper networks; connectivity revenue to stabilize.

• Benelux: Short-term slowdown due to regulatory negotiations, but strong mid-term outlook with growth in fiber, energy, and rail; margins expected above 10% by 2026.

• Germany: Aggressive expansion in fiber and energy, targeting €150–200m revenue and well above 10% EBITDA margin by 2026, leveraging M&A and local partnerships.

• Rest of Europe: Poland remains strong; UK, Spain, and Italy undergoing restructuring with a focus on energy and IT, and potential divestment if profitability is not achieved.

• Portfolio management approach in non-core markets, aiming for profitable growth or strategic review by 2026.