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First-Half 2021 Results27 September 2021
2© 2021 Quadient. All rights reserved.
Disclaimer
FORWARD-LOOKING STATEMENT
This presentation contains forward-looking statements (made pursuant to (i) the safe harbour provisions of the Private SecuritiesLitigation Reform Act of 1995 and (ii) the principles of the French Autorité des Marchés Financiers' guide to periodical disclosuresof listed companies (DOC-2016-05) of 2020 ), which, by their nature, involve a degree of risk and uncertainty. Forward-lookingstatements represent the Company’s judgment regarding future events, and are based on currently available information.Consequently the Company cannot guarantee their accuracy and their completeness. Actual results may differ materially fromthose the Company anticipated due to a number of uncertainties, many of which the Company is not aware of.
For additional factors that may cause the Company’s actual results to differ materially from expectations and underlyingassumptions, please refer to the reports filed by the Company with the Autorité des Marchés Financiers (French Financial MarketsAuthority – “AMF”).
3© 2021 Quadient. All rights reserved.
Agenda
H1 2021 highlights
4 Appendices
3 FY 2021 outlook
2H1 2021 financial review
1
4© 2021 Quadient. All rights reserved.
Successfully simplified and refocused the company in the first 2 years, we are executing phase II to drive sustainable value
Phase II - 2021 - 2023Drive sustainable value
Phase I - 2019 - 2020Transform
1. Data Quality 2. Shipping Software 3. Graphics business in Australia
BOLT-ON ACQUISITIONS
DIVESTMENTS
PLS: Parcel Pending to scale US business
ICA Software: Account Receivable (AR) acquisition with YayPay
c.€110-115m cash-in to date
c.€195-200m cash-out to date
2020 20212019
(Shut down)
ICA Software: capability portfolio completion with Beanworks(Account Payable – AP)
• Focus on:– Organic growth – Increased profitability– Deleverage the company
• Complete the integration of our acquisitions
• Acceleration of:– Growth and scale of each of 3 core solutions – Simplification of the organization – Maximizing synergies across solutions
• New strategy
• Management re-focus and simplification of the company– Established country clusters to gain efficiency: leaner, customer
and language proximity– Establishment of Centers of Excellence
• Refreshed ExCom & Senior leaders, with new talents hired to lead our transformation
• Reshaped solution portfolio
• Unified and integrated company
Back to Growth
4. Drachten Factory and packaging system
5© 2021 Quadient. All rights reserved.
Large, resilientmail volume
Quadient focuses on customer needs in high-growth markets
BoomingE-commerce
& Growing parcel volumes
Increased need for digital experience,
communication and business automation
Transactional mail volumes growing by +1% in Q2 in NORAM & showing decline
resilience after Covid in other geographies
Financial automation (AP/AR) & Cloud digital application growing by
up to c.+15% in the future
Continued eCommerce explosion+35% in 2020
+14% in 2021 expected+5-10% afterwards
Notable landscape evolution
2 acquisitions
Planning for IPOIPO
ARSpendmanagement
Notable landscape evolution
IPO+
Entering EU market
Acquisition
Sample of acquisitions Acquisition
Entering parcel lockers and AP
Notable landscape evolution
AP
eInvoicing
H1 2021 highlights
Geoffrey GODETCEO
7© 2021 Quadient. All rights reserved.
A snapshot of Quadient in H1 2021
+11.1% (1)
VS. H1 2020
ORGANIC GROWTHIN REVENUE
+26.8%ORGANIC GROWTH (2)
MAIL-RELATED SOLUTIONS
HARDWARE REVENUE
+40.7%ORGANIC GROWTH (2)
PARCEL LOCKER SOLUTIONS
REVENUE
+19.9%ORGANIC GROWTH (2)
ICA(3)
(SOFTWARE)SUBSCRIPTION-
RELATED REVENUE€70mCURRENT EBIT(4)
+28.2% org. growth vs. H1 2020
(1) Reported growth: +3.9%(2) Within Major Operations(3) Intelligent Communication Automation(4) Current EBIT before acquisition-related expenses
€54mCASH FLOW AFTER
CAPEX
€
€45mNET ATTRIBUTABLE
INCOME+110% reported growth
vs. H1 2020
© Quadient 8
H1 2021 – Business highlights
CONTINUOUS EXECUTION OF BACK TO GROWTH ─ Completing best-of-breed business communications
management suite with the acquisition of account payable solution
─ A new milestone in the Company’s portfolio streamlining and MRS industrial footprint optimization with the divestment of Drachten factory and Packing Solutions
BENEFITTING FROM A STRONG COMMERCIAL MOMENTUM ACROSS ALL SOLUTIONS
ACCELERATING OUR SUBSCRIPTION-RELATED MODELIN OUR GROWTH ENGINES
CONTINUING TO FOSTER OUR SYNERGIES(customer, commercial, supply chain, back office)
Two-year anniversary of Quadient brand
to reflect our transformation into an innovative and more
synergistic organization
© Quadient 9
Continued progress in H1 across the 5 pillars of our CSR program
PEOPLE
Focus on inclusion
• Launch of first Inclusionpolicy and training
• Joined Valuable 500, bringing greater support to employees with disabilities
• Signatory member of the French Diversity Charter
• Work from Anywhere program continues to bring greater resources to flexibility, wellness and hybrid work
ETHICS & COMPLIANCEFocus on ethical behavior
• Signatory member of the UN Global Compact
• Continued investment in our global compliance program
• Updated Code of Conduct for Third Party Partners, with access now to our Ethics 24x7 helpline
• Initiatives related to Data privacy and Information Security
ENVIRONMENTExpansion of our programs
related to reduction of waste and carbon footprint
• Circular economy : MRS remanufacturing program expanded to the US market
• ISO 14001 certification renewal for all industrial sites
SOLUTIONS
Focus on customers
• Recognized as a Top 10 leader for the 4th year in a row by Truffle 100 annual ranking
• Recognized as an overall leader in Aspire Leaderboard for CCM
• Customer value and total experience of YayPay by Quadient recognized by Forrester Consulting
PHILANTHROPY
Launch of Quadient’s first Philanthropy Program
• Launch of newphilanthropy program, Quadient Cares, focusing on Education, Inclusion & Diversity and Protecting the Environment
• Community engagement platform launched Worldwide to promote volunteering, skill-based sponsorship and donations
10© 2021 Quadient. All rights reserved.
AR/AP payments: > +250% in H1 2021 vs H1 2020
Customer communication volume: > +35%in H1 2021 vs H1 2020
Strong growth of mid-segment revenue through Quadient MRSsales channel cross selling
Quadient MRS sales channel is a top partner for both ICA Enterprise and mid-sized customers in pipeline creation and bookings
Already signed several accounts payable (Beanworks) contracts thanks to Quadient MRS sales channel in NORAM in the first quarter of the acquisition
Software – Intelligent Communication AutomationH1 2021 highlights – crossing the 10k customers threshold for the first time
+33% +48%
CONTINUED INDUSTRY RECOGNITION
Largest provider of car insurance in
the United States
CONTINUE BUILDING PARTNERSHIPS AND ACQUIRING NEW LOGOS
STRONG GROWTH OF SOFTWARE REVENUE THROUGH SYNERGISTIC MRS CHANNEL CROSS SELLING
H1 21 key figures
o/wc.+150 AP/AR
customers in Q2 2021
+1,200 net new
customers in H1 2021
INCREASED USE OF OUR CLOUD PLATFORMS
11© 2021 Quadient. All rights reserved.
Software – Intelligent Communication AutomationH1 2021 solution KPIs
SHARE OFSUBSCRIPTION-RELATED REVENUESHARE OF SAAS/SUBS CUSTOMERS ANNUAL RECURRING REVENUE
(ARR)
Subscription-related revenue ensures revenue robustness and safetyMonitors transition to Subs/SaaS
Allows to assess the health of ICA and compare it to peers as it takes recurring
software business specificities into account
Rationale
Definition
Historical evolution
Share of SaaS/Subs customers1
(2019-21, %)
60%
0
55%
65%
70%
2019
65%
56%
2020 H1 2021
109
123133
100
110
120
130
140
2019 2020 H1 202140
50
60
70
2019
50%
59%66%
2020 H1 2021
70%
Subscription-related revenue over total revenue
Number of SaaS/Subs customers over total number of customers
Annualized revenue from subscription-related revenue streams
Share of subscription-related revenue(2019-21, in %)
ARR (2019-21, in €m)
133 66%
12© 2021 Quadient. All rights reserved.
Smart Hardware – Mail-Related Solutions H1 2021 highlights
Modernize the product line with product launch renewal and S.M.A.R.T software launch General availability in the U.S. of iX-9 Meeting the latest USPS Intelligent Mail Indicia and Dimensional Weighing
requirements Expanding Quadient’s intelligent iX-Series mailing and shipping systems to Europe
S.M.A.R.TiX-9
iX RangeiX Range
Growth outpacing by almost 2x market rebound in H1 2021 thanks in part to customer acquisition and retention
Supply chain industrial footprint optimization with the divestment of Drachten facility
Synergies from shared supply chain & customer service center of excellence, notably with PLS with one mutualized warehouses in the USA
Sales enablement to help customers accelerate their journey to digital
CONTINUED SYNERGIES
HIGH CUSTOMER SATISFACTION
13© 2021 Quadient. All rights reserved.
A new milestone for Quadient’s industrial footprint optimization and its portfolio reshaping Divestment of Drachten factory and Packing Solutions
Automatic Packing Systems
(CVP)
In Additional Operations
PRODUCT RANGE
Reshapingthe portfolio
BACK TO GROWTH STRATEGY
> Total consideration from the sale: > €20million
> Scope exit from 1 August 2021
Outsourcing Other Quadient factoriesDrachten
Document systems for Mail-Related
Solutions
In Mail-Related Solutions
Industrial footprint automatization
After Drachtenfactory divestment
Before Drachtenfactory divestment
SHARE OF INDUSTRIAL VALUE CREATEDEST. 2021
In the short term
> Immediately externalization of production costs related to its Mail-Related Solutions business: c. €14million p.a.
> Production to be gradually transferred to outsourced suppliers and other sites
> No more exposure to loss making Automatic Packing Systems (CVP) business
In the long term
> Significant OPEX reductions
> Reducing the risk related to the decline of production
IMPACTS
c.50% c.70%
14© 2021 Quadient. All rights reserved.
Smart Hardware – Mail-Related Solutions H1 2021 solution KPIs
SHARE OFSUBSCRIPTION-RELATED REVENUE
SHARE OFUPGRADED INSTALLED BASE RESILIENCE INDEX(1)
Subscription-related revenue ensures revenue robustness and safety
Size the upside potential for upgrade to the latest generation smart hardware
Confirm that MRS revenue decline is slower than overall mail volume decline (proxy: supplies)
Rationale
Definition
Historical evolution
Subscription-related revenue over total revenue
Share of new generation smart devices among total number of devices in the
installed base
Spread between supplies revenue evolution and total revenue evolution(2)
0
2
4
6
8
10 8.5%
1.1%
2019 2020
4.9%
H1 20210
2
4
6
H1 2021
2.4%1.7%
2019
5.2%
202060
65
70
75 74%
H1 2021
72%
2019 2020
72%
(1) Resilience Index = supplies revenue evolution vs. previous year (in %) - total revenue evolution vs. previous year (in %); (2) Positive trend is a marker of total revenue overperformance vs. mail volume usage(3) 2019 and 2020 Resilience Indexes do not take into account the ICA/MRS products reclassification
Share of upgraded Installed Base(2019-21, %)
Share of subscription-related revenue(2019-21, %)
Resilience Index(3)
(2019-21, %)
Supplies sales back to growth
but total revenue growing
even faster thanks to strong
hardware revenue growth
Supply sales strong decline, total revenue declining less
thanks to other streams resilience
Impact of strong dynamic in
hardware sales in H1 21
15© 2021 Quadient. All rights reserved.
Smart Hardware – Parcel Locker Solutions H1 2021 highlights – Strong momentum in our verticals
FAST SCALING OF OUR OPEN NETWORKS
SYNERGIES FROM OUR MRS CHANNEL
PROMISING ADOPTION IN NEW GEOGRAPHIES
Continued traction in the US with 300 installations for corporate and universities
Pipeline increase in the UK for universities due to COVID
MRS Synergies: Strong growth of Higher Education/Corporate bookings through MRS USA sales channel (index at 100 for 2019)
Education
and corporate offices
Retail
Lowe’s US roll-out completed in Q1, extension into Canada for another 179 stores completed in Q2
Prescription medicine delivery started in Japan
Carriers
New milestone reached with 6,000 units installed in Japan
2,000 units with Relais Colis (500 units) and Pickup (1,500 units) to be rolled out within 3 years
MRS Synergies: Carrier deal in Canada for Q4 roll-out
Drastic increase in market demand
Property managers
Still good traction in usage in the network in the United States with 18m parcels in H1 2021 (+24%)
Promising start in the United Kingdom and France
2019 2020 2021
16© 2021 Quadient. All rights reserved.
Smart Hardware – Parcel Locker Solutions H1 2021 solution KPIs
GROWTH OF SUBSCRIPTION-RELATED REVENUEINSTALLED BASE USAGE RATE
Subscription-related revenue ensures revenue robustness and safety
Monitoring of numbers of lockers and market share
Allows to monitor customer acquisition and churn
Shows the progress in the monetization of our installed base
Rationale
Definition
Historical evolution
Subscription-related revenue Number of lockers installed (Number of parcels in the locker at the beginning of the day + number of parcels
delivered during the day) / number of subscribed boxes in the locker
7
10
13
6
8
10
12
14
16
2018 2019 2020
14.5
H1 2021
20
30
40
50
60
25%
2018 2019
40%
57%
H1 2021
2020
60%
16
33
42
21 23
H1 2021H1 20202018 2019 2020
+20% in organic
Installed base(2018-21, in K)
Usage rate(1)
(2018-21, in %)Subscription-related revenue (2018-21, in €m)60%
1,500+units
(1) Change in maximum rotation time assumption. Usage rate for 2020 and H1 2021 have been revised accordingly.
QuadientX-series
Quadient Customer Journey Explorer
H1 2021 financial review
Laurent DU PASSAGECFO
17
18© 2021 Quadient. All rights reserved.
Strong recovery in organic growth confirmed in Q2 2021
(1) Non-recurring revenue = license and hardware sales; Recurring revenue = subscription-related revenue and services
ORGANIC CHANGE – GROUP
-14.6%
Q1 ’20
-10.9%
Q2 ’20 Q3 ’20
-3.0%
Q4’ 20
-1.0%
+11.1%
Q1 ’21
+11.1%
Q2 ’21
ORGANIC CHANGE – RECURRING / NON-RECURRING (1)
-4.6%
-26.4%
+33.4%
Q2 ’20 Q2 ’21Q1 ’20
-5.0%
-2.1%
-7.7%
-29.0%
Q3 ’20
+0.7%
+30.7%
-2.1%
Q4’ 20
+5.1%
Q1 ’21
+3.4%
Non-recurring revenueRecurring revenue
19© 2021 Quadient. All rights reserved.
PARCEL LOCKER SOLUTIONS (1)
INTELLIGENT COMMUNICATION AUTOMATION (1)
Sustained performance across all solutions in Q2 2021
(1) Within Major Operations(2) % of organic change vs. the same period in 2020; 2020 data was restated to take into account the product reclassification from Intelligent Communication Automation to Mail-Related Solutions
4452
Q2 ’20 Q2 ’21
+17.3%
MAIL-RELATED SOLUTIONS (1)
87
H1 ’20 H1 ’21
97
+11.7%
161 161
Q2 ’20 Q2 ’21
+4.0%
320
H1 ’21H1 ’20
318
+5.1%
17 19
Q2 ’20 Q2 ’21
+17.5%
32
41
H1 ’20 H1 ’21
+40.7%
20© 2021 Quadient. All rights reserved.
Major Operations+9.0%organic change
Mail-RelatedSolutions
-13
H1 2020 Scope effect (1)
+10
Currency effect (2)
-20
IntelligentCommunication
Management
+16
+13
Parcel LockerSolutions
+13
AdditionalOperations
H1 2021
485
504
Group +11.1%
organic change
H1 2021 revenue bridge
* Scope effect: -€3.3m
H1 2021 revenue bridge (in €m, % of organic change vs. H1 2020)
+11.7%
+5.1%
+40.7%
+39.1%
-4.2%
-2.7%
(1) Scope effects: divestments of ProShip and Graphics in Australia; acquisitions of YayPay and Beanworks(2) Average rates H1 2021: EUR/USD = 1.20 and EUR/GBP = 0.86
21
Intelligent Communication AutomationMajor Operations - H1 2021 revenue and solution profit margin
(1) % of organic change vs. the same period in 2020; 2020 data was restated to take into account the product reclassification from Intelligent Communication Automation to Mail-Related Solutions
H1 2021 Solution Profit Margin
16.0%(270) bps
organic change vs H1 2020
Growing customer demand for AR and AP solutions leading to c. +70% organic growth
Strong double-digit growth in Subscription-Related Revenue for both SMBs (+31%) and large accounts (+13%), mainly driven by SaaS and volume-based solutions
Improving level of activity in Professional services, particularly in France and the UK
Shift to SaaS leading to lower license revenue, although one large deal in Q2 2020
66%
20%
14%
Professional services+9.8 % (1)
Licenses and hardware sales-13.8% (1)
Subscription-relatedrevenue
+19.9% (1)
H1 2021 revenue by type
€97m
H1 2021 revenue
Organic growth vs. H1 2020
+11.7% (1)
Investment level on target, including recent acquisitions of high growth YayPay & Beanworks: ─ Increased R&D investments related to Cloud-platform
expansion
─ Additional go-to-market and marketing investment
Continuing shift in customer base from license to SaaS model impacting near term profit margin as planned
22
Mail-Related SolutionsMajor Operations - H1 2021 revenue and solution profit margin
Positive organic growth across all geographies, with a sustained performance in North America and improved business trend in Europe
Strong recovery in hardware sales, with organic growth of c. 27%, thanks to good traction with new customer acquisitions
Overall good resilience of the installed base and subscription-related revenue despite lingering Covid impact on usage, in particular in Europe
72%
28%
Licenses and hardware sales+26.8% (1)
H1 2021 revenue by type
H1 2021 revenue
Organic growth vs. H1 2020
+5.1%(1)
Subscription-relatedrevenue
-1.5% (1)
€320m
(1) % of organic change vs. the same period in 2020; 2020 data was restated to take into account the product reclassification from Intelligent Communication Automation to Mail-Related Solutions
H1 2021 Solution Profit Margin
44.5%(96) bps
organic changevs H1 2020
Revenue mix effect from:
─ Strong increase in hardware sales
─ Lower level of placement in H1 2020 impacting subscription-related revenue
Impact from increase in freight cost
23
Parcel Locker SolutionsMajor Operations - H1 2021 revenue and solution profit margin
Double-digit growth in subscription-related revenue, due to the expansion of the installed base in the US in 2020, with sustained increase in maintenance and volume-based revenue
Sustained growth in hardware sales, reflecting strong dynamics in US retail due to the rollout of the Lowe’s contract (completed in Q1 2021) and good traction in the universities in the US
Promising start of UK market
H1 2021 revenue
Organic growth vs. H1 2020
+40.7% (1)
56%
39%
5%Professional services+83.9% (1)
Licenses and hardware sales+79.4% (1)
H1 2021 revenue by type
Subscription-relatedrevenue
+20.1% (1)
€41m
(1) % of organic change vs. the same period in 2020
H1 2021 Solution Profit Margin
(1.4)%+538 bps
organic changevs H1 2020
High profitability of the installed base (profit margin between 25% and 30%)
Planned increased investments in R&D and go-to-market
New installations:
─ Different revenue mix with higher rate of subscription vs H2 2020
─ Impact from increase in freight cost for new installations
24
Major OperationsH1 2021 revenue and current EBIT
Strong performance in North America, driven by the rebound in Mail-Related Solutions and double-digit organic growth across Intelligent Communication Automation and Parcel Locker Solutions businesses
Improved level of activity in Europe, though still impacted by Covid health measures
Solid performance in International, mainly due to Parcel Locker Solutions
5%
40%
55%
North America +12.0% (1)
International+5.2% (1)
Main European Countries+5.4% (1)
(1) % of organic change vs. the same period in 2020
H1 2021 revenue
Organic growth vs. H1 2020
+9.0% (1)5%
69%
26%
H1 revenue by geography
Professional services+14.3% (1)
Licenses and hardware sales+25.3% (1)
Subscription-relatedrevenue
+3.6% (1)
€458m
H1 2021 revenue by type
H1 2021 Current EBIT
€71m+19.6%
organic change vs H1 2020
Strong acceleration of the level of activity
Improvement in the profitability of the installed base
Increased investments in go-to-market & marketing (launch of new verticals and geographies for ICA and PLS) and in R&D
Continuing shift in customer base from license to SaaS model impacting ICA near term profit margin as planned
Increased freight costs and longer delivery lead time
25
H1 2021 results summary
Parcel Locker
Solutions
Mail Related
Solutions
€458m+9.0%
€320m+5.1%
€41m+40.7%
Major Operations
€46m+39.1%
€504m+11.1%
Additional Operations
Total Group
North America
Main European countries
International
€250m+12.0%
€183m+5.4%
€25m+5.2%
Intelligent Communication
Automation
€97m+11.7%
SALES% of organic growth (1)
vs. H1 2020
34.4%(192)bp
44.5%(96)bp
(1.4)%+538bp
17.6%+668bp
32.8%(160)bp
16.0%(270)bp
Solution Profit MarginOrganic change in bp
€71m+19.6%
€(0)mvs. €(4)m
€70m+28.2%
Current EBITbefore acquisition-related
expenses% of organic growth
(1) % of organic change vs. the same period in 2020; 2020 data was restated to take into account the product reclassification from Intelligent Communication Automation to Mail-Related Solutions
26(1) Current EBIT before acquisition-related expenses;(2) Scope effect taking into account the divestments of ProShip (end-Feb. 2020) and Graphics activities in Australia and New Zealand (21 Jan. 2021) as well as the acquisitions of YayPay (29 July 2020) and Beanworks (23 March 2021)
H1 2021 current EBIT before acquisition-related expenses bridge(in €m, % of organic change vs H1 2020)
Improvement in activity lead to a €16m organic increase in current EBIT(1)
Scope effect(2)
H1 2020 H1 2021 @ LYR
Change In Major
Operations’ Solutions
Profit
H1 2020 (scope
restated)
+561
(4)
+5
+770
(3)
Change in G&A and
Innovation
58
74
H1 2021Change In Additional
Operations’ Solutions
Profit
Currency effect
+28.2%The increase in current EBIT is mainly due to:
The strong improvement in activity level vs H1 2020
Improvement in profitability:─ thanks to the increase in installed base and its
profitability
─ while investments were increased as planned (R&D, go-to-market, acquisitions)
─ despite the impact of the on-going shift to subscription model (lower level of license upfront)
Improvement of G&A thanks to: ─ further simplification of the organization
─ reduction of real estate footprint
27© 2021 Quadient. All rights reserved.
Note: Average rates EUR/USD H1 2021 = 1.20 and FY 2020 = 1.15; EUR/GBP H1 2021 = 0.86 and FY 2020 = 0.89(1) As per IFRS treatments, the calculation takes into account the dividends paid to ODIRNANE’s holders.
2021: Mainly linked to restructuration expenses and Drachten factory (APS) divestment
2021: Strong decrease in fees
2021: Reduced cost of debt thanks to 2020 refinancing operations
In € million H1 2020 H1 2021
Current operating income (before acquisition-related expenses) 61 70
Acquisition-related expenses (11) (6)
Current operating income 50 65
Optimization expenses and other operating income & expenses (8) (12)
Operating income 42 53
Cost of debt (16) (12)
Currency gains & losses and other (1) 14
Net financial income/(expense) (17) 3
Profit before tax 25 55
Taxes (3) (10)
Income from associated companies (0) 0
Net attributable income 21 45
Minority interest 1 1
Net margin as a % of sales 4.5% 8.9%
EPS (in €) 0.50 1.19
Fully diluted EPS (in €) 0.50 1.12
Net attributable income of €45 million, up from €21 million in H1 2020
(2) The average compounded number of shares is 34,017,519. The fully diluted number of shares is 40,356,954.
2021: Increased value of the funds investment (X’Ange and Partech)
2020: Benefits from tax loss carry-back measures in the US in COVID-19 context
28© 2021 Quadient. All rights reserved.
Robust cash flow generation and EBITDA margin at 23.5% in H1 2021
In € million H1 2020 H1 2021
EBITDA 104 118
EBITDA margin (%) 21.5% 23.5%
Other items (2) (11)
Cash flow (1) 102 107
Change in working capital requirement (25) (6)
Change in lease receivables 54 32
Interest and income tax paid (16) (41)
Cash flow from operations 115 92
Capital expenditure (39) (39)
Cash flow after capex 76 54
Acquisitions net of divestments (9) (72)
Cash flow after capex & acquisitions 65 (18)
Note: Average rates EUR/USD H1 2021 = 1.20 and FY 2020 = 1.15; EUR/GBP H1 2021 = 0.86 and FY 2020 = 0.89(1) Before net cost of debt and tax
2021: Restructuring expenses and net impact of provisions release (inventory and bad debt)
Better receivables collection
Slow down of leasing portfolio decrease in 2021 (-5% vs. -7% in H1 2020)
Normalization of tax paid compared to 2020 that benefitted from measures in COVID context
Acquisition of Beanworks in Q1 2021
2021: EBITDA margin improvement in spite of Beanworks and YayPay acquisitions
29© 2021 Quadient. All rights reserved.
CAPEX level reflecting phasing in investments
Rented equipment
Steady level of rented mail equipment placement reflecting the mix of hardware sales (leasing rather than rental)
Acceleration in Parcel Lockers investment planned in H2 with the roll-out of main contracts in the second half of the year
Development CAPEX maintained at €16m
Broadly stable maintenance CAPEX
CAPEX mix (€m)
6 5
16 16
15 15
39
23H1 2020 H1 2021
39
Rented equipment Development CAPEX Maintenance CAPEX
Asset right of use (IFRS 16)
12 11
3 4
H1 2021H1 2020
15 15
Mail-Related SolutionsParcel Lockers Solutions
(1) Acquisition of software and IT implementation costs, acquisition of machinery and equipment and other investments
(1)
30© 2021 Quadient. All rights reserved.
Net debt and future cash flows as at 31 July 2021Improving leverage in spite of Beanwork’s acquisition
Closing rates: EUR/USD H1 2021 = 1.19 and FY 2020 = 1.21; EUR/GBP H1 2021 = 0.85 and FY 2020 = 0.88(1) Excluding ODIRNANE of €265 million, maturing 2022 – classified in equity under IFRS
598 575
205 183
End of FY 2020 End of H1 2021
759803
Leasing portfolio
Rental future cash flows
Net financial debt Leasing portfolio and rental future cash flows
€722 million, of which:
€322m of cash
€400m of undrawn credit facility (maturing 2024)
439 459
74 66526
End of FY 2020 End of H1 2021
512
0.4x Net debt excl. leasing /EBITDA excl. leasing
2.1x Net debt / EBITDA2.0x
0.7x
IFRS 16 debt
Net financial debt excluding IFRS 16(1)
1.93x incl. ODIRNANE
2.13x incl. ODIRNANE
Thanks to FCF generation and EBITDA recovery, Group leverage ratio evolution has been containedbetween January and July 2021.
Strong liquidity position
Quadient Customer Journey Explorer
FY 2021 outlook
Geoffrey GODETCEO
32© 2021 Quadient. All rights reserved.
2021 outlookUpgraded guidance on current EBIT for FY 2021
S C O P E : G R O U P
(1) Current EBIT = current operating income before acquisition-related expenses; Organic: excluding FX and scope effects, based on 2020 current EBIT excluding earn-out reversal (i.e. €145 million) with a scope effect resulting in a €140 million proforma
Maintained above 4% organic growth in 2021
despite scope change…
Revenue growth
1
Above 6% organic current EBIT growth in 2021(1)
Vs. 5-6% organic current EBIT growth in 2021(1) previously
UPGRADED Current EBIT growth
2
ASSUMPTIONS
SCOPE CHANGE: Negative impact of the divestment of the APS business on expected organic revenue growth in 2021 versus initial full-year guidance
SOLUTIONS TRENDS FOR H2 2021
─ ICA: Continued strong growth momentum for subscription and accelerated shift in model from license to SaaS in H2 2021
─ MRS: Organic sales decline expected at be at low single digit level in H2 2021
─ PLS: Due to the particularly high comparison basis set by the Lowe’s contract in H2 2020 (PLS organic growth at c.+29% in Q3 2020 and c. +88% in Q4 2020), expected c. 15% organic decline in H2 2021 in PLS revenue despite of the dynamic rollout planned for H2 2021 and the growing level of subscription-related revenue from the installed base
OPERATING EFFICIENCIES impacting positively Group current EBIT (real estate footprint, simplification and further integration of the organization) partially offset by now anticipated increase in freight costs in H2 2021 as well as active hiring campaign and continued investment in talent to support growth.
33© 2021 Quadient. All rights reserved.
Mid-term ambitions by solutionOn track to achieve our mid-term ambitions by solution
S C O P E : M A J O R O P E R A T I O N S
Mail-Related Solutions Parcel Locker SolutionsIntelligent Communication Automation
+19.9% in H1 2021 +5.1% in H1 2021 1,500+ new installs in H1 2021
Over 20-25% subscription-related revenue CAGROver the 3-year plan
Better than -5% organic CAGR revenue declineOver the 3-year plan
More than 25k lockersBy the end of the 3-year plan
c.30% Solution Profit MarginOn a FY basis by the end of the 3-year plan
High Solution Profit Margin in the range of 43-45%On a FY basis by the end of the 3-year plan
35-40% Profit Margin of the Installed BaseOn a FY basis by the end of the 3-year plan
16.0% in H1 2021 44.5% in H1 2021 25-30% in H1 2021
34© 2021 Quadient. All rights reserved.
Topline growth Minimum 3% organic growth CAGR over 2021-23
Current EBIT growth
Minimum mid-single digit organic current EBIT growth CAGR over 2021-23(1)
1
2
2021-2023 outlook confirmed
S C O P E : G R O U P
(1) Current EBIT = current operating income before acquisition-related expenses; Organic: excluding FX and scope effects, based on 2020 current EBIT excl. earn-out reversal (i.e. €145 million)
QuadientX-series
Quadient Customer Journey Explorer
Appendices
37© 2021 Quadient. All rights reserved.
Accounts Receivables Automation
Accounts Receivable
Automation
Contact Free Parcel automation
Journey Analytics &
Orchestration
Accounts Payable
Automation
Personalized Omni-channel
Communications
Mail Preparation &
DeliveryYour
Organization
Quadient helps 400k organizations connect with customers, employees and stakeholders
RECEIVE COLLECT
ENGAGE
PAY
OPTIMIZE
SEND
CONNECT
Automate AR collections, predict payments and speed up payments through better visibility and control
Automate AP processes including validation, approval and payment to spend more time managing your cash
Generate compliant communications at scale including notifications, correspondence, emails, statements and policies, governed by approval workflows
Map and orchestrate customer and communication journeys while measuring business outcomes across different touchpoints
Quickly develop, test and deploy integrated online and mobile experiences aligned to the consumers' channel of choice
Smart and secure pick-up, drop-off solution that offers convenience, security, and peace of mind.
Intelligent Communication Automation Mail-Related Solutions Parcel Locker Solutions
38© 2021 Quadient. All rights reserved.
8
6
3
9
-6
Parcel LockerSolutions
Q2 2020 Scope effect (1)
IntelligentCommunication
Management
Mail-RelatedSolutions
AdditionalOperations
-8
Currency effect (2)
Q2 2021
258
246
Major Operations+7.7%organic change
Group +11.1%
organic change
Q2 2021 revenue bridge
Q2 2021 revenue bridge (in €m, % of organic change vs. Q2 2020)
+17.3%
+4.0%+17.5%
+57.5%
-2.6%
-3.4%
(1) Scope effects: divestments of ProShip and Graphics in Australia; acquisitions of YayPay and Beanworks.(2) Average rates Q2 2021: EUR/USD = 1.20 and EUR/GBP = 0.86
39© 2021 Quadient. All rights reserved.
Q2 2021 revenue summary
(1) The International segment includes the activities of Parcel Lockers Solutions in Japan and of Customer Experience Management (ICA) outside of North America and the Main European countries.(2) 2020 data was restated to take into account the product reclassification from Intelligent Communication Automation to Mail-Related Solutions
Parcel Locker
Solutions
Mail Related
Solutions
€232m+7.7%
€161m+4.0%
€19m+17.5%
Major Operations
€26m+57.5%
€258m+11.1%
Additional Operations
Total Group
North America
Main European countries
International
€127m+10.3%
€92m+3.6%
€13m+11.5%
Intelligent Communication
Automation
€52m+17.3%
SALES% of organic growth (1)
vs. Q2 2020
(1) % of organic change vs. the same period in 2020; 2020 data was restated to take into account the product reclassification from Intelligent Communication Automation to Mail-Related Solutions
40
P&L
(in € millions) 31/07/2020 31/07/2021
Sales 485 504
Cost of sales (129) (137)
Gross margin 356 366
R&D expenses (25) (27)
Sales expenses (126) (128)
Administrative and general expenses (101) (91)
Maintenance and other expenses (45) (51)
Employee profit-sharing and share-based payments 2 0
Current operating income before acquisition-related expenses 61 70
Acquisition-related expenses (11) (6)
Current operating income 50 65
Optimization expenses and other operating income & expenses (0) (12)
Operating income 42 53
Financial income/(expense) (17) 3
Income before taxes 25 55
Income taxes (3) (10)
Share of results of associated companies 0 0
Net attributable income 21 45
Minority interests 1 1
Net income 22 46
41
Consolidated balance sheet (1/2)
41
Assets (in € millions)31/07/2020 31/01/2021 31/07/2021
Goodwill 1,040 1,026 1,106
Intangible fixed assets 128 128 120
Tangible fixed assets 213 207 188
Non-current financial assets 62 65 90
Other non-current receivables 3 3 4
Leasing & financing receivables 613 598 575
Deferred tax assets 18 17 20
Inventories 75 71 65
Trade receivables 187 231 182
Other current assets 104 100 108
Cash and cash equivalents 533 514 322
TOTAL 2,978 2,960 2,780
42
Consolidated balance sheet (2/2)
42
Liabilities (in € millions)31/07/2020 31/01/2021 31/07/2021
Shareholders’ equity 1,220 1,240 1,280
Non-current provisions 25 27 26
Non-current financial debt 822 821 734
Current financial debt 297 205 114
Other non-current debt 1 1 1
Deferred tax liabilities 144 148 146
Prepaid income 168 187 163
Other current liabilities 296 328 312
Financial instruments 4 3 4
TOTAL 2,978 2,960 2,780
43© 2021 Quadient. All rights reserved.
322
Cash
163
81
187
75
4723
265 325
2021
346
2022 2023 2026
372
2024 2025
Financial debt structure and future cash flows as at 31 July 2021Improving leverage in spite of Beanwork’s acquisition
Closing rates: EUR/USD H1 2021 = 1.19 and FY 2020 = 1.21; EUR/GBP H1 2021 = 0.85 and FY 2020 = 0.88(1) Excluding ODIRNANE of €265 million, maturing 2022 – classified in equity under IFRS
575
183
758
End of H1 2021
Rental future cash flows
Leasing portfolio
Financial debt and maturities
Leasing portfolio and rental future cash flows
145 169125
8043
5159
37
5
20242021 202520232022
22
10
132026
195228
161
102
54 18
ODIRNANEBond 2.50% Bond 2.25% Schuldschein (2017, 2019, 2020)
265
18
738
6643
848
Total financial debtat the end of H1
2021
459
66526
End of H1 2021
IFRS 16 debt
Net financial debt excluding IFRS 16(1)
Gross debt due to financial institution
Other debts
44
All financial covenants easily met
(1) Net debt excluding leasing/EBITDA excluding leasing;(2) EBITDA/net cost of debt
Schuldschein 2019, Schuldschein 2020 and Revolving Credit Facility(excluding IFRS 16)
Schuldschein 2017(including IFRS 16)
Quadient level as at Jan. 31, 2021 Quadient level as at July 31, 2021 Quadient level as at Jan. 31, 2021 Quadient level as at July 31, 2021
Covenants on leasing operations
Maximum drawing: 90% of outstanding leasing portfolio
Intercompany net leasing debt standing at 75% of outstanding
leasing portfolio
Intercompany net leasing debt standing at 72% of outstanding
leasing portfolio
Intercompany net leasing debt standing at 75% of outstanding
leasing portfolio
Intercompany net leasing debt standing at 72% of outstanding
leasing portfolio
Covenants on non leasing operations
Maximum leverage of 3.0 (1)
excluding leasing entities 0.0 0.4 0.4 0.7
Minimum equity: €600m €1,240m €1,280m €1,233m €1,273m
Default Rate < 5% ~1.7% ~1.8% ~1.7% ~1.8%
Minimum interest cover (2): 4.0 7.7 9.3 7.9 9.5
45© 2021 Quadient. All rights reserved.
Restated 2020 figures by quarter
SALES
(in €m, unaudited figures) Q1 2020 Q2 2020 H1 2020 Q3 2020 Q4 2020 FY 2020
Major Operations 215 222 437 229 254 919
Intelligence Communication Automation 42 44 87 47 51 183
Mail Related Solutions 158 161 318 161 173 653
Parcel Locker Solutions 15 17 32 21 30 83
Additional Operations 24 24 48 29 33 110
TOTAL GROUP 239 246 485 258 287 1,029
Sales
(in €m, unaudited figures) Q1 2020 Q2 2020 H1 2020 Q3 2020 Q4 2020 FY 2020
Major Operations 215 222 437 229 254 919
North America 118 121 239 127 135 501
Main European Countries (1) 85 88 173 89 105 367
International (2) 12 12 25 12 14 51
Additional Operations 24 24 48 29 33 110
TOTAL GROUP 239 246 485 258 287 1,029
(1) Austria, Benelux, France, Germany, Ireland, Italy, Switzerland, United Kingdom.(2) The International segment includes the activities of Parcel Lockers Solutions in Japan and of Customer Experience Management (ICA) outside of North America and the Main European countries.