Overview Key strengths Key risks A leader in the European residential security-monitoring market, with No. 1 positions in 10 European markets. Sustainable S&P Global Ratings-adjusted debt to EBITDA likely to remain at 7.0x-8.0x, despite the company's ability to deleverage, due to a track record of dividend recapitalization. Strong growth opportunities stemming primarily from largely unpenetrated European countries and (to some extent) enhanced product offerings. Negative free operating cash flow (FOCF) historically, and our expectation of negative FOCF at least until 2023, given the high investment to acquire new customers, except in 2020. Low customer attrition of about 6.5% (compared with 10%-15% for companies operating in the U.S.). Relatively modest scale, although it is increasing rapidly, with revenue of nearly €2.5
