NSE GROUPE: Acceleration of growth in the first half of 2023: Consolidated turnover of EUR 35.3 million (+11%) – 07/21/2023 at 6:00 p.m.

Acceleration of growth in the first half of 2023:

Consolidated turnover of €35.3 million (+11%)

Nizerolles, July 21, 2023 after listing session.

The NSE group, specialist in the design, manufacture and maintenance of high-tech electronic equipment more particularly intended for Defence, Civil Aeronautics, IT, Medical and Rail, publishes its consolidated turnover for the first half of the 2023 financial year (ended June 30, 2023). NSE is listed on Euronext Growth

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in Paris.

NSE recorded a sharp increase in its consolidated turnover during the first half of 2023, to reach €35.3 million, thanks to the continuation of the growth dynamic initiated by its recovery plan in the second half of 2022. The first part of the financial year was thus marked by a solid increase in the activity of the Services BU, which is benefiting from the current dynamism of the Defense sector, and of the Integration BU, which is returning to growth. Overall, the Group continues to take advantage of the diversity of the regions and sectors addressed to increase its presence in its target markets with new customer wins.

In the second half, NSE intends to continue its growth momentum thanks to the ramping up of its existing multi-year contracts and the contribution of deferred orders on the BUIs and BUCs observed in this first half.

This increase in activity, combined with the continuation of actions aimed at improving the Group’s competitiveness and strict control of operating expenses, will make it possible to increase EBITDA and net income in the half-year and over the year.

Consolidated 2023 half-year revenue (IFRS standards – unaudited):

* Not including the turnover of the JVs accounted for using the equity method: NSE TLS and HICAL NSE

Solid revenue growth in H1 2023 driven by the Services BU

1/ Strong growth in activity in the Services BU, well oriented by the dynamism of the Defense markets

The Services BU significantly increased its level of activity over this half-year. Revenue thus reached €20.9 million, up 26%, thanks to strong demand from the Defense sector on existing contracts for the Army. NSE also took advantage of its know-how in this sector to continue the ramp-up of Aeronautical MCO (Maintenance in Operational Condition) activities. In addition, the company has won new contracts that will fuel business growth over the coming semesters.

NSE TLS in Canada, an international subsidiary 50% owned and accounted for using the equity method in the consolidation, has further accelerated its development, with an increase of more than 50% in turnover, which reached €8.0m against €5.2m in H1 2022. This subsidiary, dedicated to optimizing execution times in logistics in the Transport sector, is gaining momentum after winning structuring contracts in recent semesters.

2/ Return to growth in the integration BU (36% of half-year turnover)

Revenue for the Integration BU grew by +2.4% in H1 2023, thanks to a significant improvement in trends in its main markets. The deployment of reinforced strategic offers for the Defense sector and the diversification actions undertaken in previous years, particularly in Medical, fueled the rebound in activity which could have been even greater without order shifts to H2 2023. Note the continued momentum in order intake in this first half.

In Canada, the NSE Automatech subsidiary recorded revenue of €5.1 million, up +1% (+5.6% excluding the impact of exchange rates), still oriented towards the Medical sector, mainly for the US market and through a recovery in the Aeronautics sector in Canada.

For its international subsidiaries, NSE recorded a clear growth in activity for HICAL NSE in India (49% owned).

3/ Design BU (5% of half-year turnover): delay of orders towards the end of 2023

The Design activity was down sharply by -38%, with revenue of €1.6 million at June 30, 2023, compared to €2.6 million a year earlier, due to delays in orders to the second half. The BUC still enjoys an attractive position in the development and production of high-performance electronic equipment, allowing it to capitalize on its resilient state contracts.

Prospects for strong growth over the full year 2023 thanks to the ramp-up of major contracts and postponements of orders

This good half-year performance of NSE, coupled with the continuation of actions aimed at improving the Group’s competitiveness and strict control of operating expenses, will enable an improvement in half-year results.

In line with the business momentum recorded in the first half of the fiscal year, the Group expects to achieve significant revenue growth in 2023, thanks in particular to its solid base of recurring customers, the revival of the Defense sector and orders partly postponed to the second half of the fiscal year.

In addition, NSE will benefit from winning new contracts during this first half of 2023, demonstrating the continued appeal of its know-how and solutions in high value-added electronic and IT products.

NSE France won many orders during this semester:

• The Services BU recorded €16.9 million in new orders.

• The Integration BU recorded €9.2 million in new orders.

• The Design BU recorded €1.6 million in new orders.

NSE also committed at the beginning of 2021 to the implementation of a Corporate Social Responsibility (CSR) approach, which involves all teams and a rating system with concrete actions on the progress of a Social Environment and Governance (ESG) plan.

In this context, NSE has finalized its carbon footprint (Scope 1,2 and 3) over this semester. This will be included in the update of the NSE Extra Financial Report published today. This new version is available on the NSE website:

https://www.nse-groupe.com/wp-content/uploads/2023/07/Rapport-RSE-2022.pdf

Next press release:

2023 half-year results, October 27, 2023 after market close.

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The NSE Group specializes in the design, manufacture and maintenance of high-tech electronic equipment.

With an international vocation, the NSE Group operates mainly in the Defense, Civil Aeronautics, IT, Medical and Railway sectors.

The company, founded in 1983 and whose head office is located in Nizerolles (03) in the Auvergne Rhône Alpes Region, has structured its organization around three Business Units:

– The “Design” of innovative technical products;

– “Integration” for the manufacture of integrated equipment on behalf of major operators;

– “Services”, through a global offer of Value-Added Services internationally.

NSE has 8 industrial sites in France and 6 international subsidiaries. NSE employs more than 700 people, 450 in France, 250 internationally. As of December 31, 2022, the Group generated consolidated sales of €65.5 million, of which 32% internationally.

More information on www.nse-groupe.com

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For all information: Philippe Brel – [email protected]

NSE is listed on Euronext Growth

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in Paris – Mnemonic: ALNSE – ISIN code: FR0004065639

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