NSE GROUPE: First-half 2022 revenue: EUR 31.7 million – 07/29/2022 at 5:45 pm

First-half 2022 revenue: €31.7 million

Nizerolles, July 29, 2022, 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 Railways, publishes its consolidated turnover for the first half of fiscal year 2022 (ended June 30, 2022). NSE is listed on Euronext Growth

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in Paris.

During this first half of the 2022 financial year, NSE maintained solid activity, stable compared to that of the second half of 2021 (€32 million) and down compared to the first half of 2021 which had benefited from strong activity from the BUS. NSE continues to benefit from continued strong demand for its high value-added services for complex electronic systems. The activity could even have been better without the shortage of components and the extension of delivery times from suppliers. In addition, the BUC was also impacted by the postponement of two significant orders in the Aero-defense sector, at the end of 2022 / beginning of 2023. At the same time, the economic context in France and Europe remains unstable, particularly in the defense sector. World Civil Aeronautics. The defense activity, meanwhile, increases significantly.

However, the Group was able to rely throughout the half-year on the diversification of the activities and sectors addressed as well as on the good performance of the international subsidiaries.

NSE is still well positioned today, with a solid customer base, order books and calls for tenders which continue to be issued in these 3 markets. Thus, through a more favorable dynamic at the end of the half-year, NSE aims to return to the growth of its turnover in the second half of 2022, without however making up for the delay taken at the start of the financial year.

Consolidated 2022 half-year revenue (IFRS standards – unaudited):

*Including Export €9.8m

Maintenance of an almost identical level of activity compared to the second half of 2021

1/ Solid performance of the Design BU despite postponements of orders

Design activity was virtually stable at €2.6 million at June 30 compared to the last two semesters. The BUC notably benefited from its strategic positioning on the development and production of high-performance electronic equipment with resilient state contracts.

Delays in orders to the next half-years, due to a staggered schedule for 2 major Aero-defense projects, will fuel the future growth of this Business Unit.

2/ Maintenance of the activity of the Integration BU supported by the continuous development of Medical and its subsidiaries, despite the still difficult situation in Civil Aeronautics

In the first half of 2022, the revenue of the Integration BU recorded a slight growth of +1.5% compared to H2 2021, to stand at €12.5 million. The crisis affecting the Aeronautics sector has slowed the Group’s commercial development in this highly contributory activity (20% of sales in 2019). However, the deployment of a reinforced strategic offer and the diversification actions undertaken in previous years have made it possible to maintain strong activity from one semester to the next.

In Canada, the NSE Automatech subsidiary recorded revenue of €5.1 million, a sharp rebound compared to the previous half-year (€4.5 million). Its positioning remains buoyant in the Medical sectors, mainly for the North American market and in the Defense market, pending the recovery of the Civil Aeronautics sector.

As previously announced, the activities of the other international subsidiaries in Brazil, Morocco and HICAL-NSE in India, which still represent a small part of the BU’s turnover, will have to wait for normalization of the local health context before resume the deployment of their activities.

3/ Slight contraction of the Services BU compared to H2 2021 and maintenance of the customer portfolio

After a clear growth in its activity over the last three semesters, the Services BU experienced a slight contraction in its activity over the first 6 months of 2022, to reach €16.6 million, in particular due to a demanding comparison. Indeed, in the second half of 2021, the Group had recorded exceptional orders for the repair of electronic products. NSE has, however, deployed its know-how in this sector, in particular for the deployment of new contracts won in 2021 for the repair of electronic equipment and the ramp-up of Aircraft MRO activities (Maintenance, Repair and Overhaul).

The activity of the subsidiary NSE TLS in Canada (50% owned and equity method in the consolidation), dedicated to the optimization of execution times in logistics in the Transport sector, recorded strong growth of +185% over this semester compared to H2 2021. Indeed, NSE TLS recorded at the end of 2021, the gain of structuring contracts on this activity set to grow in the coming years.

Outlook

In the second half, the Group aims to return to growth thanks in particular to its solid customer base, the associated multi-year contracts, the shifting of orders to the second half of the year, and the revival of the Defense sector.

In this context, the Services BU should continue to drive the Group’s performance, with the support of the Integration BU. The Design BU should, for its part, experience a rebound in its activity thanks to the postponement of orders. At the same time, the signals sent by the Group’s markets remain dynamic with ongoing calls for tenders across all of its perimeters.

In order to support the growth of its activities, the Group will continue to focus its strategic actions on the development of new markets, the improvement of competitiveness, and the deployment of its offers through its international subsidiaries.

Thus, NSE will continue over the coming semesters the implementation of its ambitious industrial investment plan (€3.5 million, including €1.5 million for its ERP) to support its diversification and development, with, among others, a new version of its ERP on the Services BU, as well as the digitization and automation of processes on the Integration BU.

NSE also committed in early 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 plan. and Governance (ESG). NSE published its first Extra Financial Report on July 22, 2022, which you can find on the NSE website: https://www.nse-groupe.com/finance/

Next press release:

2022 half-year results, 10/28/2022 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 (India, Canada, Morocco, Brasil). NSE employs more than 700 people, 450 in France, 250 internationally. As of December 31, 2021, the Group generated consolidated revenue of €66.7 million, of which 31% 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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