Slide 1: Verisure Midholding AB (publ) Earnings Call Presentation – Q2 2019
Verisure Midholding AB (publ) Earnings Call Presentation – Q2 2019 April 1 - June 30, 2019
Slide 2: Disclaimer
Disclaimer This presentation and the investor conference call in which this presentation is used might contain forward looking statements, which are based on our current expectations and projections about future events. All statements other than statements of historical facts in this presentation in
Slide 3: Agenda
Agenda • Development in KPIs during Q2 2019 – Austin Lally, CEO • Financial review of Q2 2019 – Vincent Litrico, CFO • Questions & answers 3
Slide 4: Austin Lally, CEO and Vincent Litrico, CFO
Austin Lally Vincent Litrico Chief Executive Officer Chief Financial Officer 4
Slide 5: Q2 2019 Performance Highlights
Q2 2019 Performance Highlights Installations Portfolio Portfolio EBITDA +22%* constant FX 21%*actual FX Q2 2019 +151k 3.1m €265m €265m Q2 2018 +129k 2.8m €219m €219m Summary €187m • Continued strong development across the group €154m • Broad-based sales growth, revenues increasing 19% YoY (20% in co
Slide 6: Portfolio up +377k customers YoY to 3.1 million
Portfolio up +377k customers YoY to 3.1 million Net Portfolio Growth (NPG) 3,131 vs Q2 2018 3,028 NPG (000s) +377 +13.7% NPG (% of portfolio) +13.7% 2,931 NPG Acceleration* 17.0% 2,841 2,754 (*) Q2 2019 NPG growth vs. Q2 2018. 2018 2018 2018 2019 2019 Q2 Q3 Q4 Q1 Q2 Number of Customers in portfolio
Slide 7: 151k new customers added in Q2 2019
151k new customers added in Q2 2019 17.3% 151.4 145.2 134.7 129.1 128.3 123.5 2018 2018 2018 2018 2019 2019 Q1 Q2 Q3 Q4 Q1 Q2 New installations (000s) 7
Slide 8: Maintaining excellent customer retention
Maintaining excellent customer retention % LTM 9.5 9.0 8.5 8.0 7.5 7.0 6.5 6.2 6.0 5.5 5.0 2014 2015 2016 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 LTM attrition rate (%) 8
Slide 9: Continued growth in customer profitability
Continued growth in customer profitability ARPU* €41.3 Constant currency Reported currency €12.6 Q2 2019 Cost to Serve €26.0 growth* growth* (30%) ARPU €41.3 +3.2% +2.6% EPC €28.7 +7.1% +6.5% EPC* €28.7 (70%) (*) Growth vs. Q2 2018 Q2 2019 (*) ARPU: Average Revenue Per User per month (*) EPC: Portfo
Slide 10: Key Financial Metrics – Q2 2019
Key Financial Metrics – Q2 2019 2019 2018 (€m) % YoY Q2 Q2 Revenue 467 392 +19% Portfolio Services, +260 bps 265 219 +21% Adjusted EBITDA* 69.5% Total Adjusted EBITDA* 188 146 +29% 66.9% Cash Flows from 160 125 +29% Operating Activities 2018 2019 CapEx, total 142 118 +21% Q2 Q2 Net debt 4,988 4,275
Slide 11: Income Statement – Q2 2019
Income Statement – Q2 2019 +20% constant FX 19% actual FX Reported (€m) SDI* Reported excl. SDI €467m Revenue 467 467 5 €392m 81 Net operating expenses (279) (9) (288) 4 Adjusted EBITDA 188 (9) 179 62 Depreciation and (57) (38) (95) amortisation 327 381 Retirement of assets (20) - (20) Operating pro
Slide 12: Cash flow from operating activities – YTD June 2019
Cash flow from operating activities – YTD June 2019 €m 600 518 500 (146) 400 332 (10) (17) (13) 300 200 100 EBITDA EBITDA Change in Paid SDI & Other Cash Flow Portfolio Customer Working Capital Tax Operating Activities Acquisition Cash flow (€m) 12
Slide 13: Net debt bridge – Q2 2019
Net debt bridge – Q2 2019 (131) (11) (4,988) (45) (105) (4,750) 332 (278) Dec CF Operating Investing Net Paid M&A Lease liability Other June 2018 Activities Activities Interest (IFRS 16) 2019 Net Debt (€m) Net debt: Q2-2019 includes impact of IFRS 16 (lease liability) of EUR 131 million. Excluding i
Slide 14: Leverage
Leverage 8.0x 7.3x 7.2x 7.2x 7.0x 7.0x 7.0x 6.9x 7.0x 6.8x 6.7x 2017 2018 2019 6.5x 6.2x 6.2x Total Q1 Q4 Q1 Q4 Q1 Q2 6.0x 5.9x leverage 5.5x 5.3x Net debt (€m)* 3,019 4,200 4,195 4,750 4,807 4,858 5.0x Adjusted EBITDA 515 575 586 662 682 707 annualized 5.1x Senior (€m)* secured 4.0x leverage Levera
Slide 15: Resilient Quality Growth
Resilient Quality Growth +17.3% +13.7% 606 3,131 516 +12.5% 2,931 +16.8% 440 2,586 2,294 +21.7% 359 2,017 308 1,788 €1,059m 237 265 1,626 +19.0% €891m €760m €630m €522m 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 €441m €390m FY FY FY FY FY FY Q2*4 FY FY FY FY FY FY Q2 Stron
Slide 16: Q&A
Q&A “pp verisure 6 RG Sa Rs
Slide 17: Thank you
Thank you