Solutions 30 Se

one Q3 revenue call. My name is Priya, and I will be your coordinator for today's event. Please note, this conference is being recorded, and for the duration of the call, your lines will be on listen only. However, there will be an opportunity for live questions. This will be done by pressing star 1 on your telephone keypad. You may register at any time. If you require assistance, please press star 0, and you will be Our two speakers today are Gian Beppi, Chief Executive Officer, and Amaury Ballot, Chief Financial Officer. Gian Beppi, please begin.

Thank you, Lydia. Good afternoon, everybody, and thank you for being with us today for this conference call. I'm here with Amaury Ballot, our CFO, to present our third quarter webinar. As usual, it's going to be through the presentation. It's going to be pages, and then we will be available to answer your questions. slide number four. At the end of September 2021, our revenues were up 12.9% to 650 million, and this overall growth is driven by excellent space momentum. Compared to the first nine months of this 2019, the 2021 revenues were up by nearly 35%, which confirms our, you know, the strong strengths that are driving our markets. In the third quarter of 2021, revenues amounted to $215 million, flat compared to the same period of 2020. This comparison is particularly high in the second half of 2020, The ongoing military shortages caused some interventions and projects to be postponed in the second half of 2021. And then when we look at our markets, we see that they are in different stages of maturity. Finance is the most mature market and growth is naturally slowing down. are slowing, and also the linkage parameters installations are slowing, as was expected. At the same time, maintenance activities keep growing, and the number of new subscriptions, APK subscriptions, has had a peak in second half 2020, in particular in the last quarter of 2020, with more than 1 million new connections. And then, shortages in equipment and materials slowed down the ramp up of new activities in the second half of 2021 in France. As a result, the French revenues are down by about 13%. Next year in Europe, the duplication of the French model is proven successful and is beginning to materialize in all of the other geographies. Growth is linked to the ramp up of the new complex. is very strong, it covers enormous off-markets to the extent of the shortages of inventory. So basically, we have these problems of supply chain all across Europe, but in countries such as France, the ramp-up of the connectivity is so strong that it doesn't succeed. The supply chain issues have a central impact on revenues. It's important to note that the difference is not lost, it's not delayed. Our activities are activities that are needed by people, so if you get them this year, they will come sometime next year, not last. The other big news is that we are resuming our M&A activities. The first acquisition realized just a few days ago, and we will continue with our usual M&A trend in the coming weeks and months. Mori, please continue with the rest of the presentation.

Good afternoon, everyone. As you can see on slide number six, revenue reached 653.5 million euros for the first nine months of 2021, at 29%. On a life-to-life basis, revenue is up by 9.3%. I remind you that mainly due to the COVID situation, we had to put our NMA activities on hold in 2020. which is a recurrent in nature, represents 61% of the group's revenue, an increase compared to 58% in H1 2021. Compared to the first nine months of 2019, revenue is up by nearly 63%. On the next slide, in the first quarter of 2021, Solution 30 costed a revenue of 212 million euros. which is a 0.7% decline or minus 0.2% rise in life. This, as the MDP says, is due to a particularly high basis of comparison and ongoing difficulties in the supply of material, which caused some fallouts and projects to be formed. Compared to QCCS 2019 pre-COVID Act 2011, QCCS 2021 is set annually 2016. The group's recurrent maintenance business represents 68% of the group's quarterly revenue. Next slide. On the next slide, you will note the quarterly trend, and several things should be pointed out. One, the current level of activity is actually high compared to historically among years, with quarterly revenue above 200 million euros. The impact of COVID was limited on our top line, and the extremely strong performance of Q3 2020 underlined this high deficit of popularity. And three, essentially, the Q3 is stronger than Q2, so it's hard to feel awkward with the telecom activity. However, in 2021, that was not the case due to shortage in components. Growth is therefore taking a breath. but the output remains extremely positive with exponential ramp-ups in new geographies and businesses. Next slide, please. On a year-to-date basis, the growth remains strong at 12.9%. On a quarterly basis, the graph of life stresses the disparity in the quarterly performance, with trends turning by nearly 13% while other regions are 13% decline. The rebalancing of our revenues between the different countries has actually begun. France will clearly remain an important region for the group, and the potential for growth is still there, but you can see that the other geographies are growing faster and faster, especially Belgium, which confirms the strategies we have implemented there. Let's now go to slide 11, please. For the first nine months of 2021, revenue in France reached 391.8 million euros, up 8%. Revenue for the third quarter amounted to 121.5 million euros, down 12.7% compared to the period of 2020. Compared to pre-COVID revenue in Q3 2019, it is up by 16.4%. We will now take a closer look at gasoline evolution in the next slide with Giambetti.

Thank you, Amaury. So, here is the slide that presents the, basically, what happened in the third quarter in France. Let me start with energy first. As you can see, the revenues from the energy business amounted to about 20 million in the third quarter of 2021. So, EMUs went down by 5 million. That is a 30% decrease, but the EMU from the smart meters dropped by 40%, because the deployment of the Linky smart meters increased very significantly in the second part of 2021. As you see there, it was up to only 20%, because new activities, in particular charging stations for electrical vehicles and solar panels, were offset at least partially, the decrease of BNP. And if we didn't have the problems of supply chain, the new activities would have, you know, overcome the drop of BNP and would have been going. The IT business is back to growth, and rendering new activities is a very small problem to solve. Now, let's go to the most important driver, which is Amazon. that was down by almost 15 millions in this quarter. Let's go to the next slide. In this slide, you see on the left side the graph, and the top line, the light gray line, is the deployment of fiber in France. Deployment meaning bringing the fiber in front of the houses. As you can see, there has been a spike in deployment. in the fourth quarter of 2020, with almost 2 million new houses where the fiber passed in front of the door. That is particularly high, and also, overall, the penetration rate of fiber in front of the door of the houses is now that high in France, with about two-thirds of the households being passed by France. So in France, we are expecting a slowdown of the deployment of a peak region at the end of 2020. Now, if you go below, you see a dark black line, which represents the installation of new files. Again, you see the bump in Q3 and Q4 2020, and that is because just after the lockdowns, people began buying fiber connections very strongly, with lots of them working from the north. The orange line is our revenues, and as you can see, there is a strong correlation between new connections and our revenues, because, you know, it's an activity that is, you know, pushing our overall telecom revenues. At the moment, the last number available is June 2021. There is 12 million houses that are connected in China, and in France, there is a total of 14 million houses. And remember, 27 million houses already have the fiber in front of them. So what we are expecting, in terms of new factors of installation, is that the trend will continue to be growing, and so we expect it to grow in the next time, and go for many years. And of course, the activity will stabilize, but there is work for many, many years to come. And the most interesting part is the second line, which is the maintenance activities. these maintenance activities are still not above the line of the new customer connections, but the line is growing. The line is growing because the maintenance activities are simply correlated to the size of the customer base of the telephone operators. And that keeps growing year after year. So at a certain point in time, I believe very soon, the maintenance activities will be bigger than the installation price, And that will remain, you know, forever. For us, like for other similar activities that are more mature, like the GSL activities. Amore, if you want to continue with the next slide, please.

Yes. I will now comment on the development of the revenue in Benelux. For the first nine months of 2021, revenue in Benelux reached 114 million euros by 50 cents. and growth is actually accelerating in this region, as its proper revenue amounted to 3.3 million euros, up by 16% in this region. The telecom business grew slowly organically by 3.5%. The rollout of E5's Netflix just began, and the contracts of the group in September may be contributing to the revenue from the first quarter. Revenue from the energy business amounted to 6.6 million euros, compared with 1.2 million the year before, and this growth is driven by the installation of smart metals in Flanders on the Alphaflujus, and also by groups of other business elements, notably carbon stations for electric vehicles and renewable energy activities. Energy business parted the value of 2.1 million euros compared to 2.6 last year. And the security and retail business generated a revenue of 1.8 million euros compared to 2.3 million in September 2020. Next slide, please. In all the other countries, the GDP revenue at the end of September 2021 grew by 28% compared to the first nine months of 2020. And the gross profit revenue was up by 27%. In Germany, Revenue amounted to 15 million euros in the short quarter of 2021 compared to 17 million euros in 2020. In Germany, we were actually organized to structure the last digital mile market, but like we did in Italy, we had to position ourselves on the deployment side when the deployments began to truly ramp up. but that's more of an addition so that we find the right partners and contractors to serve this market. In Italy, revenue doubled in the first quarter of 2021, up to 2.5 million euros, driven by the one-part FTPH infrastructure deployment to the north of the country. In Italy, we are still doing much service and benefiting from the contracts assigned earlier this year. the business actually grew urgently by almost 30% to 13.4 million euros. In Poland, the issues with the supply chain had a strong impact on the activity, and a good part of the revenue was spent on 3,000 euros compared with 6.4 last year. However, the underlying trends remain very positive in this country. Finally, in the UK, We are still in the implementation phase, we only started our operations in this country with the acquisition of Convergence last December. On top of that, we have just announced the acquisition of Normal Consequences Limited. This acquisition is actually a considerable asset for the Group. especially in the UK market, as it allows us to improve our territorial coverage, our client portfolio, and our skills. We are clearly building a stronger frame in the UK, and especially in the 5G communities. I now turn it over to Jambeti for the next slide.

more relevant to slide 17. What you see here is the different building blocks which are underlying our growth. The first one is the fiber related activities where you see in the column for the different countries two numbers, two percentages. The first one is the number of homes of the country that are passed by fiber and the higher the more the deployment is already done. As you can see, in France, 64% penetration in South-Eye, extremely high in Spain, and then lower in the other countries. The second number is the more important, the most important for us, which is the number of homes actually connected. As you can see, with the exception of Spain, there is a huge potential for us on customer-facing activities related to Fiverr. So clearly, Fiverr is going to be a very significant driver for us in all of the geographies, especially in Spain. The second important building block is 5G. Providing networks are a segment where there is going to be a lot of investment in the coming years. Everybody is expecting many different things from 5G networks. And I must remember that we were not a mobile network up until a couple of years ago, and this year we are going to have about 13 million euro revenues in mobile networks. So it's clearly becoming a segment important for us, and it's growing, growing this year and growing for the years to come. So it's an important source of income. The third block, which is extremely important, is always related to the energy transition. For us, that is in particular a charging station for electric cars and also solar panels. This is particularly true now with the cost of energy that is going through the roof. And I've actually seen a couple of articles, one this morning, concerning the sales of electric cars in Western Europe. We are in the first nine months of 2021 with more than 1.5 million vehicles sold, electrical vehicles sold, compared to 1.3 million sold for the full year 2020. A very strong growth of electrical vehicles, and in parallel, the infrastructure that is needed to start them is not there. I remember as a very bold stance towards this infrastructure, saying we want to have 100,000 charging stations in public places at the end of 2021. We are at 40,000, 4-0. So we are really behind, and there is a very strong push towards electrical vehicles and the related infrastructure. So very important drive for us. Same is with renewable energy, in particular solar panels. An article there in France appeared several days ago. The French government pushing solar panels. It can be a very good alternative for people, in particular in relation with electrical vehicles. If you have an individual house and you have solar panels on the roof, maybe you are capable to load your car and install it for free. So we expect very good things in this sector from, you know, this year. We have already, I would say, you know, maybe 25, 30 millions of revenues related to these activities. And these activities will grow strongly all across this year, next year, and for many years to come. And then on the right side of the slide, there is another column where we remember the amounts that are provided by the European community to foster the economy after COVID. The central bill is 700 billion, which is the largest one after World War II, after the Marshall Plan, and this money is arriving now in the countries, in the countries in which we operate. Those beneficiaries are Italy and Spain, who are seeing about 70 dinos coming, 70 now, and then for the other countries, it's a bit less, but still a huge amount of money. And a very significant part of it is going into the sectors that are important for us, in particular telecommunications and energy positions. And this money must be spent in the coming five years. So there is a huge political tension, a huge political divide, to make this infrastructural project happen. So we are very confident with the growth potential that we are going to have in the coming years, because the money is there, and the political drive to make it happen is extremely strong. Now that we have seen that the potential is there, it seems that we as a company have a place to capture those opportunities. First of all, we have an extensive experience to support very fast ramp-ups in new markets. It's something that we have already done, that we are doing, and we are capable of doing. We have a European footprint. It's not the case of major tech companies. So we are capable to propose to our clients services with the same level of quality all across Europe. It's something that not many companies are capable of doing. We have very strong and long-standing relationships with major telecommunication operators, utilities, and technology groups. We are securing strategic partnerships with new players, especially in the energy sector. We are packaging new 3K solutions to be able to serve our clients with new service offers. And we have expertise that is required to deploy these new offers all across Europe. using the tools that we have available. Next slide, please. Next slide, you see all of this in one slide with the colors to give you the possibility to see, you know, a summary of all of this at a glance. Basically, what you see is countries and then different activities. Cyber, IGs, smart meters, And then there is other two things that are important for us. The opportunity to increase our density in a certain geography, and the opportunity for us to concentrate the mind in those geographies. Red means that the market is mature, so less opportunity for growth. And green means important opportunity for growth. So a different shade of green means opportunities there now, opportunities coming soon, and opportunities for a little bit later. As you can see at the glance, for cyber, with the exception of France and in particular Spain, which are more mature, there is opportunities all across Europe. 5G is definitely a great opportunity in all of the geographies. Smart meters are already done in several geographies, but this is still a new potential for us, particularly in Benelux, in Poland and in Germany. Charging stations and energy transition are definitely a great opportunity in all the geographies. Then, we still need to focus on increasing our density in all of the geographies, with the exception of France and Benelux. The last point is that we still have huge opportunities in terms of being capable to concentrate the markets in each of the geographies in which we are. Remember that most of our competitors are small companies, and the tendency from the client side is to reduce the number of players. Of course, we don't want to keep all the guys in the same market, but we do not want to deal with tens of different small companies which are too difficult to handle. In particular, when they have too many to spend, then it's just much easier to, you know, to deal with the companies that financial strength follow in these investments that these clients are asking for. So, in a nutshell, what I'm trying to say here is that we are extremely confident in the opportunities that we have all across Europe to keep growing as we have seen in the past. We are done with the presentation. We are now available for questions in the air.

If you would like to ask a question at this time, please press star 1 on your telephone keypad and you will be prompted for your turn. Again, please press star 1 now. The last question is on today's call. Our first question comes from the line of David Cezanne of Kepler. When you're ready, please go ahead.

Good afternoon, gentlemen. I have a few questions for you, please. My first question is regarding the shortage of equipment. Can you explain which kind of equipment you are seeing a shortage? Secondly, do you expect the situation to improve in the next quarter? And the third question, are you confident in the catch-up effect of this lack of activity for the next quarter? And I have a last question regarding your quest of a large shareholder. Can you add to that? Thank you.

Okay. Let's leave the question one after the other. What kind of equipment is missing in this quarter and then what do you expect for the quarter to come? The problems are active equipment, so it's 5G equipment, it sees charging stations, it sees smart meters, we have problems with smart meters provisioning for fuses and cables, for example, and it's also passive components, so we have problems with fiber cables, boxes that are related to the fiber, and also some accessories, some connectors. The problem with it is, in general life, it's all across Europe. It's basically related to semiconductors and what is made in China, basically. So it's really a supply chain problem. You don't see it in countries other than France, because the drivers that are there, in terms of growth, are so strong that, you know, they are going 15% in Benelux and they are going 30% in the other countries, no matter what. That will continue. So, even if there is a shortage there, the drive is so strong, we continue to grow. France is a different story, because we have these requirements that are now mature, and we have the new activities that should retain them, but they are not growing as fast as we would like them, because of this lack of material and components. Now, what's going to happen in the coming future? The honest answer is that we do not know. It's a complex problem. Of course, we are stressing it a lot of times, but we do not have clear answers. Our feeling is that the less mature the value chain is, so for new activities, the more difficult the problem is to solve. We, as I said before, we are sure that this business is not lost because our clients need this kind of activity, they must have it. If you have a car, you need to loan it, no matter what. If you work from home, you need to have a good internet connection, no matter what. So, if it's not done this year, it's going to be done sometime in the future. But again, I cannot tell you if this, it was missed in the third quarter, it's going to be recorded in the fourth quarter, or the first quarter of 2022, we do not know. If we are sure of that, we are seeing the slowdown now, well, we are going to see how it goes sometime in the future.

Now, the last step... Sorry, go ahead. A clarification, to respond on what you said. Regarding the product, do you have an inventory? Is it the inventory of your client? And which kind of GEDT do you have on this website?

It's an inventory of a lot of time. The largest part is equipment which is provided by our client and they provide us So, we do not have, you know, a very long term view on the equipment they have. We have some forecasts, and there is adjustments to come, and, you know, basically we have to adapt ourselves to provide, you know, equipment that can work. The good thing is that we have quite a lot of flexibility on our side, so we are catering to these populations. What we are not capable of is to anticipate exactly the impact that the supply chain will have in the equipment that is supposed to come in three months or four months or five months. Now, I go to the last question, which is the one related to the anchor investor. As you know, we have a work that was filed before this summer. It's a mandate to help us find an anchor investor. We have spent this summer. preparation work, so we have quite a lot of information, quite a lot of data, and now we are entering the active phase. So, within this month, there is going to be contracts, you know, in exchanges with the third practice, and then the process will continue. It will continue, certainly, into next year.

And have you already met some commercial key shareholders?

We have some marks of interest because, as you have seen, there is a lot of money that is going into our sector. So, we have a lot of money available across Europe. We have a lot of money available. And our sector is a sector that is interesting for many investors. So, yeah, we have some marks of interest. And we believe we will have more in the following weeks and months.

Thank you, Jean-Denis.

We'll move on to our next caller on the line. We have Julien. Julien, when you're ready, please go ahead.

Yes, thank you. Good afternoon, John Bessie and Anne-Marie. Just a few questions for me, please. Maybe first a follow-up on the supply chain issues. So the growth was strong in Benelux and in other regions. I understand that these regions were also impacted by the shortage. Maybe could you quantify that and should we expect any changes there? And secondly, regarding your Silicon business in France, the start of 2020 was also strong. So do you expect the activity to be done year on year in the fourth quarter? and also how should the equity is going into 2022. And maybe lastly, just a follow-up on the process to find an investor. You mentioned private equity. So maybe, have you defined any strategic priorities in terms of type of investors? Thank you.

Okay, let me, maybe I take aside the first question that is related to the time chain when you asked for the quantification. I leave it then later to Amaury, if he's capable. It's not easy to ask, he may be able to give you some hints. I take the one related to the French telephone market. As you see, in this market there is three parts. One is deployment, so putting the cider in front of houses. This is an activity that is slowing down, before there is already 27 million houses in front of the door, such as a couple of 40. So, two-thirds of the work is done. Of course, we are on a descending phase, but it's not an activity that is our core business. So, we are marginally impacted in this activity, because what we care is the customer-facing activities. On the customer-facing activities, there is two parts. One is new client installation, and then maintenance. New client installation, as you have seen in the last quarter of 2020, there was, for the first time in the history of France, 1 million new homes connected, 1,100,000 houses connected in only the first quarter of 2020. But overall, at the end of June 2021, there is only 12 million houses connected, out of a total of 40, and when 27 millions already are deciding to come for the door. Of course, you know, the evidence is for the operators to take the house inside of the door. Once the fiber is there, they push, they push quite hard to get to the home, because that is what generates revenue for them. So, we have 12, 27 passed, we believe if we come back to us, there is going to be a deep push, a strong push for, you know, for many years. Time could be really something exceptional, because You can see it in our slide. There was the COVID lockdown phase where everybody was scared. Several shops and telecom operators closed down. And as a result, the sales in the first part of 2020 of internet connection was quite low. Then lots of people were working from home and everybody rushed to buy good internet connections in the second part of the So we have this big bump in the second half of the 20th century, which is something exceptional. If you take the average of the growth in that segment between 19 and 21, probably you have something realistic that is representative of the future of France, for a certain number of years. The last part, which is also the most interesting, is the maintenance part. That is something that is growing steadily, because it's just a percentage of the customer base And at a certain point in time, the volumes of that activity will be higher in the run of the new installation and maintenance will replace the new installation. I'll continue with the question on the actual investor. I mentioned three weeks just because it's mind-blowing the kind of money we are talking about. So there is really a lot of money in the system. And of course, we believe the same. We can benefit from that. But of course there is also industrial investors, industrial partners that are interested in what we are doing. To the question, what are the specific priorities? is a priority for us with all of this money that is available in our structure is to have an anchor investor that is in full agreement with our strategy that is proven to be right you know in 20 years of work because you know we have strong growth for so many many years and we believe we can have still very strong growth for many years we just want to have an anchor that allows us to and just working without being bothered with all sorts of noise, and continue to work with the environment. That's the main objective, so we have to be very careful, having a partner that is absolutely aligned with the strategy of the company, that allows us to work without having any use of stressors. Amory, you want to take the question on the supply chain?

Yes, I'll say a little bit. Your question, Julien, was about the quantification of the impact of the difficult systems by chain.

So, first of all, maybe just more specifically in Benelux and in other regions.

Yeah. I would say that I think that the impact was around 15 to 20 million euros on this quarter. Obviously, the impact is more visible in countries where we have major activities. In Benelux, currently, we are just in a rampant phase, so volumes are going up month after month, but not as fast as expected because of the shortage of equipment. how to quantify only in this region, we are talking about several millions. Your second part of the question was, can we expect a cash-out effect related to this shortage? But actually, if you delay the shift in order to provide the smartness to your positions, then you will not have an acceleration of the supply chain in the coming months. It will not just be delayed a little bit, once you receive the equipment, it's just delayed. But, you know, you can take a rule of thumb and assume that, you know, benefits, which accounts, which is our second largest policy, and accounts for 15% to 20% of our revenue, is actually representing, you know, three years. you know, has been impacted by so many of the new work applications.

Okay, thank you. And at this time, we have no questions on the phone, and we will move on to questions from the webcast.

We have a question about the certification of the accounts. Well, I remind you that, you know, our financial assistance has been audited, that our auditors spent several thousands of hours on our account, and they did not identify any anonymity on our accounts. Our financial assistance in 2020 were approved through the shareholders meeting, and they have been filled, so they cannot change anymore. I would take the opportunity to speak virtually once again and without any ambiguity, but our financial statements 2020 were prepared with integrity by our financial statements, because we do reflect and do give a true and fair view of our financial performance in 2020. On top of that, you know, as EY took the decision not to give an opinion on our 2020 financial statements, our new editor, TKS, had to perform their own diligence on our opening balance sheet 2020, and they confirmed that there was absolutely no anomaly in this balance sheet. We have another question, which is, are you seeing any labor cost inflation?

Do you expect this to impact 2021 or 2022? No, at the moment, We do not have issues on the people's side. The issue is more on the material, as we said before. So we do have the people. No major problems in terms of salaries. The problem is more the material. We have lots of companies, especially in tourism and other sectors that are more affected by COVID that are having problems. So we may have problems in 2022. At the moment, we do not see it. Another question is, for this €100 million new quarter value, if you are born, what should we expect for the revenue contribution from these new contracts in fiscal year 2022? So, the €100 million if you are born in the last two quarters, we begin to produce some revenues around the end of this year. And then in the next year, of course, what we are expecting next year, I put on the slide problems on a supply chain that we are not able to assess, but next year we are going to be back to double digit growth as we have seen in the past. So no exception from what we have already seen in previous years. the basis of 1,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000 how much value should we expect from France starting to roll out next year? I think that's for you, Amor, if you can answer to this.

Yes, sure, thank you. Actually, the integration of community and guest customers in France accounted for 9.5 million euros, out of the 19.7 million euros of revenue in Q3. And for next year, you can expect approximately 20 to 25 million euros of revenue related to this activity in France.

Thank you, Amaury. And then we have another question for you. How is your relationship in France?

Oh, good question. Well, our bank has always been very supportive with us and trusting. As a mark of evidence of trust, I would say I would use the side that the group resumed the M&A recently, with the acquisition of M&A. This acquisition has been possible with the support of all our banks, which unanimously supported this transaction, and I'll take the opportunity to thank them for their support. So, my state of the relationship is good and we are now in the good state of the configuration with them.

Fred, we have another question. Can an effigy sign an agreement to create a new forecast above the Mets and Thunders? What will be the impact of solution 30? Yeah, that's something important for us. The impact is going to be positive. This is going to be a new activity related to heat networks that is going to become important for us in that region. So very good news for us from this one venture. Another question, you have resumed your M&A strategy, the distribution of mono. Is there any planned solution in the energy segment? Have you identified targets? When can we expect new acquisitions? So, yeah, we are back to normal, I would say, on the M&A side. So, we have a pipe that is quite full with opportunities in all of the geographies. So, yes, we should expect, you know, new acquisitions certainly in 2022. I would say, you know, for now, almost, we will be back to our normal M&A strategy. in the energy sector but also in the other sectors. We still want to concentrate the market in which we operate and the development there. That's going to be done by organic growth but also by external growth. Could you please clarify what does 10% maintenance, 10% churn, and 5% reconstruction mean on slide 13? Yes. Okay. 10% maintenance means that when you have a small base of clients on a telecommunication network, you have about 10% of them who have one problem per year. It's a quite conservative figure because in reality, especially at the beginning, when an entity is new and it's not stable, it's actually more stable. But we have taken a substantial 10% maintenance rate And you think about it, that means you have one problem every 10 years. And I'm sure at your pace, that you know where, well, at your pace, you know, me personally have more than one problem every 10 years. So I think it's quite common to have more than one problem every 10 years. So that's one thing. The second feature is Clients that change operator or trying to move, you know, there is moving from one apartment to the other. On average, that is about 10% of the customer base. And then there is new construction. That is a little bit rough, but if you take account like France, We have about 400,000 new flats that are built per year, and of course, each of them needs a new connection to the telecommunication network. So that explains the high percent of install base that is related to the construction. So these are the three components. Can you please give more information on the complaints that you have filed? Well, as you know, we have filed complaints with the French regulator and also with the French administration. And Japan had, with their procedure, but of course, we, you know, it's independent from from us, so that goes on, and at the moment we do not have any particular news to give on that side. Do you plan to expand your activities in new geographies? No, now the geographies, the traffic we cover is good, so we are covering the countries we want to cover, and our focus now is to increase the size we have in these geographies and duplicate the French model all across Europe. Can you please comment on the new organization in Germany? Okay, I'll try to do that. In Germany, the potential of the new activities is very significant, but at the same time, Germany is, and as always been traditionally in our steps, is quite slow. So what we have seen in the other side, Benelux of the UK, are not picking up on the same pace in Germany. The organization we have in place is an organization that has been built around the coax technology and maintenance activities. So, finally, something that we need. Now, we have to implement in Germany a new organization that is able to capture the potential of the application market. It's not exactly the same organization. It's not exactly the same skill, the same technology. So we are doing now a transfer of knowledge from the countries that master already this technology to Germany. And we are beginning in Germany to have some pilot projects related to fiber. Basically, we are preparing ourselves to capture the growth that is going to come in fiber in Germany. Given this publication, what are the forecasts for 2021 and 2022? So, for 2021, we brought it in the press release and we said it before, we expect growth, you know, around 10% in the year 2021. And in 2022, as I said before, we expect to be back at, you know, normal, probably six possible goals, as it was in the past.

I do not see any questions.

If there is no other questions, I think we are done. So thank you, everybody, for your participation, and look forward to hearing from you soon.