Landis+gyr Group Ag · SIX:LAND
Landis+gyr — FY2021 Earnings Presentation
29 slides from Landis+gyr's earnings presentation, May 5, 2022
Slide 1: Full Year FY 2021 Earnings Presentation
Full Year FY 2021 Earnings Presentation Werner Lieberherr | CEO Elodie Cingari | CFO May 5th, 2022 1 | © Landis+Gyr 2022 | May 5th, 2022 | FY 2021
Slide 2: Disclaimer
Disclaimer Forward-looking Information This presentation includes forward-looking information and statements, including statements concerning the outlook for Landis+Gyr Group AG and Landis+Gyr group (“Landis+Gyr”). These statements are based on current expectations, estimates and projections about t
Slide 3: Business Performance FY 2021
Business Performance FY 2021 ▪ Order intake of USD 2’665.5 million more than doubled versus previous year with a book-to-bill ratio of 1.82x driven by all regions resulting in a record committed backlog of USD 3’388.6 million (up 56.5%) ▪ Net revenue increased 6.9% 1 to USD 1’464.0 million (5.1% 1 o
Slide 4: FY 2021+ Review
FY 2021+ Review National Grid Contract (US) TEPCO Power Grid Contract (JP) Telia Acquisition True Energy Acquisition Alt HAN Co Otter Tail Power Enedis Contract Agreement to Company Contract acquire Luna Contract Closing (FR) Public Service Electric (US) (UK) Luna and Gas Co. (PSE&G) Puget Sound Con
Slide 5: Acquisitions & Transactions in FY 2021+
Acquisitions & Transactions in FY 2021+ EV charging & software and DER flexibility management with 175+ employees and active in 40+ markets – Acquisition (75%) closed in July 2021 Strengthens software capabilities in smart EV infrastructure market through smart charging flexibility management app –
Slide 6: Strategic Transformation
Strategic Transformation Transforming the business for profitable growth while providing attractive returns to shareholders 6 | © Landis+Gyr 2022 | May 5th, 2022 | FY 2021
Slide 7: Google Cloud Partnership
Google Cloud Partnership Utility IoT Platforms Innovation @ Scale Digital Operations in the Cloud ▪ Release of utility IoT cloud-based ▪ Utility Advanced Analytics release on ▪ Defined products lifecycle into digital Head End System (HES): Emerge track for the platform and use cases portfolio for sc
Slide 8: EV Charging & DER Flexibility Management
EV Charging & DER Flexibility Management ▪ Integrated solution intelligently manages charging infrastructure lifecycle, preventing grid overload, while balancing electricity supply and demand in real-time for automated load flexibility ▪ Holistic platform for utilities to seamlessly manage DER flexi
Slide 9: Science Based Target Initiative Carbon neutral
Committed to the Science Based Target Initiative Ambition to new carbon emission reduction targets in line with the Paris Agreements 1.5°C trajectory Carbon neutral by 2030 Decarbonizing the Grid 9 million tons CO2 Direct CO2 emissions avoided through installed Smart Metering base in FY 2021 9 | © L
Slide 10: Supply Chain Impact FY 2021
Supply Chain Impact FY 2021 ▪ USD ~100 million topline deferred due to supply chain constraints with no order cancellations ▪ EBITDA results include USD ~30 million supply chain cost ▪ Expecting increasingly challenging situation in FY 2022 ▪ Types of components impacted include − Integrated Circuit
Slide 11: Americas | Key Developments in FY 2021
Americas | Key Developments in FY 2021 ▪ In the Americas, major wins with National Grid, PSEG and LG&E & KU resulted in record backlog in excess of USD ~2.4 billion ▪ Infrastructure Investment & Jobs Act signing in Nov 2021 provides more than USD 1.2 Trillion in infrastructure spending, with focus o
Slide 12: EMEA | Key Developments in FY 2021
EMEA | Key Developments in FY 2021 ▪ UK meter installs returning to pre-COVID levels after weak Q1 FY21, despite market disruption to energy suppliers and notwithstanding the global component crisis L+G delivered 2.8m meters into the UK Smart Metering Implementation Programme; with approximately 23m
Slide 13: APAC | Key Developments in FY 2021
APAC | Key Developments in FY 2021 ▪ In Australia and New Zealand, slight YoY sales growth despite supply chain constraints; good growth in orders at 1.24 Book-to-Bill with good start to new smart water meter business, orders for ~70K meters and first sales and strong demand from services JV Intelli
Slide 14: Consolidated Results – FY 2021
Consolidated Results – FY 2021 USD in millions (except per share amounts) FY 2021 FY 2020 Change Order intake 2’665.5 1’298.7 105.2% ▪ Order Intake supported by major contract Change in constant currency 103.9% wins in Americas and EMEA Committed backlog 3’388.6 2’165.9 56.5% Net revenue to external
Slide 15: Order Intake / Backlog – FY 2021
Order Intake / Backlog – FY 2021 USD in millions Order Intake Backlog 0.96x 1.82x 56.5% ▪ Order Intake USD 2.7 billion driven by major wins in Americas (National Grid, PSE&G, LG&E, TEPCO) and EMEA (Fluvius, Enedis) ▪ Book-to- Bill ratio of 1.82x (2.4x Americas; 1.23x EMEA; 1.43x APAC) resulting in r
Slide 16: Net Revenue Bridge – FY 2021
Net Revenue Bridge – FY 2021 USD in millions 6.9%* Americas ▪ Higher volume in Brazil and Japan, offset by supply chain constraints in North- America EMEA ▪ Revenue growth driven by UK recovery, Nordics and acquisitions ($24.8m) APAC ▪ Revenue growth in ANZ and China partially offset by Hong-Kong 6.
Slide 17: Adjusted EBITDA Bridge – FY 2021
Adjusted EBITDA Bridge – FY 2021 USD in millions ▪ Adjusted Gross profit volume increase driven by EMEA growth ▪ Adjusted Gross profit Margin expansion due to favorable product mix in Americas and EMEA partially offset by increased supply chain cost ▪ Adjusted Operating Expenses driven by investment
Slide 18: Adjustments to EBITDA – FY 2021
Adjustments to EBITDA – FY 2021 ▪ No major restructuring in FY2021 USD in millions FY 2021 FY 2020 Change ▪ Warranty normalization adjustments of Reported EBITDA 170.3 113.7 49.8% USD (13.8) million represent the amount Adjustments (23.3) 25.9 n/a of provisions made relative to the Restructuring Cha
Slide 19: Cash Flow – FY 2021
Cash Flow – FY 2021 USD in millions FY 2021 FY 2020 Change ▪ Operating Working Capital development in line Net Income (Loss) 79.5 (392.7) n/a with volume Depreciation and Amortization 81.5 82.9 (1.7)% Impairment of intangible assets - 396.0 n/a Net loss from Equity Investments 19.6 4.6 326.1% ▪ Lowe
Slide 20: Net Debt – FY 2021
Net Debt – FY 2021 USD in millions ▪ Net debt position of USD 143.6 million; 0.98x leverage ratio 0.98x ▪ Cash at hand as of March 31st of USD ~85 million ▪ Remaining credit facilities with available undrawn facilities of USD ~345 million 0.05x ▪ Cash for Intellihub share disposition received in Q1
Slide 21: Americas Segment – FY 2021
Americas Segment – FY 2021 ▪ Order growth driven by major wins in North America USD in millions FY 2021 FY 2020 Change Order intake 1'701.9 665.4 155.8% Committed Backlog 2'435.0 1'427.0 70.6% ▪ Revenue growth driven South America Cha nge i n cons ta nt currency 68.9% and Japan; supply chain constra
Slide 22: EMEA Segment – FY 2021
EMEA Segment – FY 2021 ▪ Order growth driven by Belgium, France and UK USD in millions FY 2021 FY 2020 Change Order intake 724.6 466.8 55.2% Committed Backlog 781.1 636.7 22.7% ▪ Revenue driven by UK recovery, Nordics Cha nge i n cons tant currency 28.8% and acquisitions Net revenue to external cust
Slide 23: APAC Segment – FY 2021
APAC Segment – FY 2021 ▪ Order growth driven by new Hong- Kong long-term contract and ANZ offset by lower order intake in India USD in millions FY 2021 FY 2020 Change Order intake 239.0 166.5 43.5% Committed Backlog 172.5 102.2 68.8% ▪ Revenue driven by ANZ, China and Cha nge i n cons tant currency
Slide 24: Guidance FY 2022
Guidance FY 2022 Net Revenues ~6% to 10% net revenue growth, (Relative to FY 2021) including FY 2021 acquisitions Additional expenses of ca. 2% of net revenues as in Transformation FY 2021 supporting strategic transformation Adjusted EBITDA margin Adjusted EBITDA between 5% and 8% of net revenues Fr
Slide 25: Mid-Term Guidance (FY 2023) reconfirmed
Mid-Term Guidance (FY 2023) reconfirmed* Net Revenues Organic growth of low single digit CAGR in line with core (Relative to FY 2019) market growth; inorganic revenues to come on top Adjusted EBITDA margin Adjusted EBITDA between 12.0% and 13.0% of net revenues Free Cash Flow Around USD 120 million
Slide 26: th , 2021 © Landis+Gyr Landis+Gyr 2021
26 | |© ©Landis+Gyr Landis+Gyr2021 | October 28th, 28 | October 2021| H1 FY th, 2021 2021 | H1 FY 2021
Slide 27: Key Messages
Key Messages ▪ Delivered strong FY 2021, in line with guidance, despite supply chain situation and topline deferrals ▪ Secured record order intake of almost USD 2.7 billion, resulting in record backlog of nearly USD 3.4 billion, ensuring future growth ▪ Supply chain challenges expected to increase i
Slide 28: Contacts & Dates
Contacts & Dates Important Dates Contacts Publication of Annual Report 2021 Eva Borowski and Invitation to AGM 2022: SVP Investor Relations & May 30th, 2022 Corporate Communications Annual General Meeting 2022: Phone +41 41 935 6396 June 24th, 2022 Eva.Borowski@landisgyr.com Ex-Dividend Date: June 2
Slide 29: 29 | © Landis+Gyr 2021 | manage energy better together | January 27 th
29 | © Landis+Gyr 2021 | manage energy better together | January 27 th, 2021 | CONFIDENTIAL – DRAFT VERSION – ENTIRE DECK UNDER REVIEW AND FOR INTERNAL DISCUSSION