Slide 1: Annual General Meeting of Shareholders
Annual General Meeting of Shareholders
Slide 2: 1. Presentation by CEO Eric Rondolat
1. Presentation by CEO Eric Rondolat 2
Slide 3: 3
3
Slide 4: Full year 2018
Full year 2018 A year of key structural improvements • Grew our LED-based sales by 2.5%; total CSG -4.4% • Lowered indirect cost base by EUR 224 million • Operational profitability increased to 10.1% • Solid free cash flow of EUR 306 million • 2018 dividend of EUR 1.30 per share proposed • On track
Slide 5: Sound progress made on our strategic priorities in 2018
Sound progress made on our strategic priorities in 2018 Strategic priorities Proof points in 2018 Innovate in LED products commercially and • LED lighting share increased from 65% to 71% of total sales technologically to outgrow the market Lead the shift to Systems, building the largest • Released o
Slide 6: Signify is the world leader in lighting
Signify is the world leader in lighting We provide high-quality energy-efficient lighting products, systems and services Light sources Luminaires Systems and Services No. 1 € 6.4bn 4.5% No. 1 Connected , LED, sales in 2018, of sales reinvested Industry leader Conventional in R&D Dow Jones Sustainabi
Slide 7: We're successfully managing the transition from conventional to LED
We’re successfully managing the transition from conventional to LED Development of LED and conventional as % of sales Development of Adj. EBITA margin 11-13% 11-13% 35% 29% 45% 74% 66% 57% 8.9% 9.6% 10.1% 86% 6.8% 7.3% 6.4% 65% 71% 4.7% 43% 55% 26% 34% 14% 2012 2012 2013 2013 2014 2014 2015 2015 201
Slide 8: First quarter 2019
First quarter 2019 • Growing profit engines (LED, Professional and Home combined) achieved comparable sales growth of 1.1% • Improved Adjusted EBITA for growing profit engines by 210 basis points to 6.7% • Reduced adjusted indirect costs by EUR 34 million • Generated free cash flow of EUR 55 million
Slide 9: Outlook 2019
Outlook 2019 • Our growing profit engines expected to deliver a comparable sales growth in the range of 2 to 5% • Our cash engine, Lamps, expected to decline at a slower pace than the market, in the range of -21 to -24% on a comparable basis • Aim to improve our Adjusted EBITA margin within the rang
Slide 10: Growth platform: Horticulture
Growth platform: Horticulture Projected to grow by more than 20% a year over next five years
Slide 11: Growth platform: Solar
Growth platform: Solar Market expected to grow by more than 20% per year until 2024
Slide 12: Growth platform: LiFi
Growth platform: LiFi More than 30 pilots across the world
Slide 13: Passion for Sustainability
Passion for Sustainability Committed to be 100% carbon neutral in 2020 ` 79% sustainable 89% electricity from revenues renewables; carbon (2020 target 80%) neutral in 9 markets 2018 #1 Industry leader, ‘Electrical Components and Equipment’ category, Dow Jones Sustainability Index 82% of industrial 9
Slide 14: Thank you!
Thank you! ®ignify
Slide 15: 2. Implementation of the remuneration policy in 2018
2. Implementation of the remuneration policy in 2018 15
Slide 16: Remuneration 2018
Remuneration 2018 Base Salary Annual (Cash) Incentive Long Term Equity-based 2018 (1) (% of Base Salary) Incentive at target (% of Base Salary) (2) Min. Target Max. Rondolat € 850,000 0 80 160 100 Rougeot € 556,000 0 60 120 80 Van Schooten € 555,000 0 60 120 80 1) Base Salaries BoM members increased
Slide 17: Annual Incentive Plan 2018 Components
Annual Incentive Plan 2018 Components The Annual Incentive Plan 2018 consists of two major components: 1 CSG% - Comparable Sales Growth (ext. reported) Financial Component Three performance Adj. EBITA% - Adjusted Earnings Before Interest & Tax (ext. reported) measures (80%) FCF - Free Cash Flow (ext
Slide 18: Annual Incentive Realization 2018
Annual Incentive Realization 2018 Remuneration Policy Implementation of Policy % of Base Salary Pay-out Realization % of Base Salary % of Target Rondolat 0 – 80 – 160 48.32 60.4 Rougeot 0 – 60 – 120 36.24 60.4 Van Schooten 0 – 60 – 120 36.24 60.4 18
Slide 19: 3. Explanation of the policy on additions to reserves and dividends
3. Explanation of the policy on additions to reserves and dividends 19
Slide 20: Signify continues to exercise strict financial discipline in the generation and use of cash
Signify continues to exercise strict financial discipline in the generation and use of cash Cash available Cash usage • Free cash flow generation • Annual regular cash dividend pay-out ratio of 40- 50% of continuing net income* • Financial ratios to maintain a financing structure compatible with an
Slide 21: Signify's Net Debt increased as the shareholder return was above the solid Free Cash Flow generation
Signify’s Net Debt increased as the shareholder return was above the solid Free Cash Flow generation Characteristics at the end of 2018 Net debt development in 2018 (in EUR million) • Total cash of EUR 676 million 589 • Debt of EUR 740 million and USD 500 million as 33 per IPO financing with 5 year
Slide 22: Signify provides an attractive shareholder return
Signify provides an attractive shareholder return 2018 dividend EUR 1.30 to be paid in 2019 Dividend 2018 (in EUR million) Key observations FY 2018 • Proposed dividend increase of 4% at EUR 1.30 per Net income attributable to shareholders 263 share; pay-out ratio of 46% Restructuring costs 118 • Con
Slide 23: Signify has returned EUR 1.1bn to shareholders since IPO
Signify has returned EUR 1.1bn to shareholders since IPO, including proposed 2018 dividend Cash available Return to shareholders since IPO (in EUR million) • Continued free cash flow generation • Managing our financial ratios to maintain a 1,127 financing structure compatible with an 1,055 investmen
Slide 24: 4. Financial statements 2018
4. Financial statements 2018 24
Slide 25: Annual General Meeting of Shareholders
Annual General Meeting of Shareholders May 14, 2019
Slide 26: 5. Dividend
26 5. Dividend ®ignify
Slide 27: 6. Discharge members of the Board of Management and the Supervisory Board
6. Discharge members of the Board of Management and the Supervisory Board 27
Slide 28: 7. Authorization of the Board of Management to issue shares or grant rights
7. Authorization of the Board of Management to (a) issue shares or grant rights to acquire shares, and (b) restrict or exclude pre-emption rights 28
Slide 29: 8. Authorization of the Board of Management to acquire shares in the company
8. Authorization of the Board of Management to acquire shares in the company 29
Slide 30: 9. Cancellation of shares
30 9. Cancellation of shares ®ignify
Slide 31: 10. Any other business
31 10. Any other business ®ignify
Slide 32: Sianty
Sianty