Deep dive into Solutions30 business model
December 13 2023 - 12:30AM
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
1 Key Performance Indicators
- S30_2023-12-13_PR Webinar
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