Slide 1: Half Year FY 2020 Earnings Presentation
Half Year FY 2020 Earnings Presentation October 12th, 2020 Werner Lieberherr | Chief Executive Officer Jonathan Elmer | Chief Financial Officer 1 | © Landis+Gyr | October 12 th, 2020 | H1 FY 2020
Slide 2: Disclaimer
Disclaimer Forward-Looking Information This presentation includes forward-looking information and statements, including statements concerning the outlook for Landis+Gyr Group AGʼs ∙ businesses. These statements are based on current expectations, estimates and projections about the factors that may a
Slide 3: Business Performance – H1 FY 2020
Business Performance – H1 FY 2020 Business Performance in H1 FY 2020 ▪ Order Intake USD 456.9 million decreased from USD 818.9 million Year-over-Year (YoY); book-to-bill ratio of 0.73 (H1 FY 2019: 0.95) primarily due to regulatory project approval delays and COVID-19 impact ▪ Committed Backlog of US
Slide 4: Delivering on Commitments
Delivering on Commitments 1. Prudently manage for cash during COVID-19 crisis; however R&D investments remain unchanged ▪ Delivered Free Cash Flow excluding M&A of USD 45.3 million, while maintaining sizeable R&D investments 2. Convert opportunities pipeline into topline growth ▪ Won customer projec
Slide 5: Global Leadership Team
Global Leadership Team Werner Lieberherr* Chief Executive Officer Transition Susanne Seitz* Jeff Seabloom Jonathan Elmer* Elodie Cingari EMEA Technology Chief Financial Incoming CFO Officer Prasanna Sean Cromie Howard Gibson Hans Sonder Venkatesan* SCM & HR Information Americas Operations ad interim
Slide 6: Global Restructuring & Streamlining Initiative
Global Restructuring & Streamlining Initiative ▪ Project Hermes - global initiative to rightsize the organization & streamline processes to be completed by end of FY 2020 ▪ Targeting a reduction of approximately 12% or ~700 employees across all levels of the organization, expected to result in annua
Slide 7: Americas – Key Developments in H1 FY 2020
Americas – Key Developments in H1 FY 2020 North America South America / LATAM ▪ Active sales pipeline with notable wins such as Indianapolis ▪ Continued leadership as top AMI multi-purpose platform Power & Light (an AES company), Sacramento Municipal and services provider Utility District (SMUD) and
Slide 8: EMEA – Key Developments in H1 FY 2020
EMEA – Key Developments in H1 FY 2020 UK France ▪ Largest market impacted by COVID-19 ▪ >27 million meters already installed, with L+G being one of three ▪ Roll-outs were temporarily suspended country wide remaining suppliers ▪ UK roll-out completion rate of 40% with ~30 million ▪ L+G awarded additi
Slide 9: Asia Pacific – Key Developments in H1 FY 2020
Asia Pacific – Key Developments in H1 FY 2020 Australia & New Zealand (ANZ) Hong Kong ▪ Regulatory environment continued to drive uptake of ▪ Continued to execute on smart metering projects with smart meters for new and replacement meters over 320k meters delivered in the first half ▪ Continued grow
Slide 10: Consolidated Results – H1 FY 2020
Consolidated Results – H1 FY 2020 USD in millions (except per share amounts) H1 FY 2020 H1 FY 2019 Change Order intake 456.9 818.9 (44.2%) Change in constant currency (43.7%) Committed backlog 2,080.7 2,514.1 (17.2%) Net revenue 623.5 862.8 (27.7%) Change in constant currency (27.1%) Reported EBITDA
Slide 11: Net Revenue YoY Bridge
Net Revenue YoY Bridge – H1 FY 2020 Net Revenue YoY Bridge Americas USD in millions ▪ COVID-19 effects and weak order 900 (27.1%) intake lead to revenue decline in 862.8 7.1 855.6 137.2 850 North America 800 750 93.2 EMEA 700 ▪ COVID-19 effects lead to lower 650 1.7 623.5 revenues, particularly in t
Slide 12: Adjusted EBITDA YoY Bridge
Adjusted EBITDA YoY Bridge – H1 FY 2020 Adjusted EBITDA YoY Bridge Comment USD in millions ▪ Adjusted Gross Profit declines mainly 140 due to lower volumes in Americas & 124.9 1.7 81.6 EMEA 120 ▪ Adjusted Gross Profit margins decline 100 on reduced operational leverage & 80 other effects 60 ▪ Adjust
Slide 13: Adjustments to EBITDA
Adjustments to EBITDA – H1 FY 2020 Adjustments H1 FY 2020 H1 FY 2020 H1 FY 2019 Change ▪ Restructuring Charges: of the total, USD Reported EBITDA 31.8 128.2 (75.2%) 14.0 million relate to Project Hermes, Adjustments announced in August 2020 Restructuring ▪ Warranty Normalization Adjustments of 15.4
Slide 14: Cash Flow
Cash Flow – H1 FY 2020 Comments USD in millions H1 FY 2020 H1 FY 2019 Change Net Income / (loss) (2.3) 71.8 n/a ▪ OWC decreases on lower volumes Depreciation and amortization 41.7 43.3 (3.7%) ▪ Warranty and warranty settlement Net loss from Equity Investments 3.3 3.1 6.5% cash outs of USD 7.2 millio
Slide 15: Net Cash / (Debt)
Net Cash / (Debt) – H1 FY 2020 Net Cash / (Debt) Bridge Comments USD in millions ▪ Cash on hand at September 30th, 2020 -140 was USD 369 million 0.5x 0.1x Net -120 cash ▪ Additional revolving credit facilities of (99.4) 66.8 -100 CHF 200 million established during H1 - 80 FY 2020; these facilities a
Slide 16: Americas Segment
Americas Segment – H1 FY 2020 USD in millions H1 FY 2020 H1 FY 2019 Change Comments Order intake 197.1 363.5 (45.8%) ▪ North America: order intake, backlog and Committed backlog 1,333.1 1,634.8 (18.5%) net revenue headwinds due to COVID-19 Net revenue to external customers 332.6 476.0 (30.1%) effect
Slide 17: EMEA Segment
EMEA Segment – H1 FY 2020 USD in millions H1 FY 2020 H1 FY 2019 Change Comments Order intake 195.8 378.2 (48.2%) ▪ Continued execution of backlog in the Committed backlog 663.2 790.2 (16.1%) UK, France and Netherlands. New Net revenue to external customers 213.9 306.3 (30.2%) bookings mainly in Nord
Slide 18: Asia Pacific Segment
Asia Pacific Segment – H1 FY 2020 USD in millions H1 FY 2020 H1 FY 2019 Change Comments Order intake 64.0 77.2 (17.1%) ▪ Revenue down 2.2% (in constant Committed backlog 84.3 89.0 (5.3%) currency) as growth in Hong Kong Net revenue to external customers 77.0 80.5 (4.3%) partially offsets COVID-19 re
Slide 19: Dividend FY 2019 / Update FY 2020
Dividend FY 2019 / Update FY 2020 Dividend for FY 2019 ▪ Board of Directors will propose a distribution from capital reserves of CHF 2.00 per share, exempt from Swiss withholding tax, for FY 2019 to be paid at the end of November 2020, subject to EGM approval on November 24th, 2020 ▪ Equivalent to ~
Slide 20: Q&A
Q&A 20 | © Landis+Gyr | October 12 th, 2020 | H1 FY 2020
Slide 21: Key Messages
Key Messages ▪ Positive cash generation in harsh COVID-19 environment ▪ Strong balance sheet with USD 369 million cash on hand and CHF 200 million in undrawn credit facilities ▪ Renewed global leadership team highly committed to deliver strategic & operational results ▪ Redesigned technology functio
Slide 22: Dates & Contacts
Dates & Contacts Important Dates Contacts Publication of Half Year Report 2020 Eva Borowski and Sustainability Report 2019/20: SVP Investor Relations and October 28th, 2020 Corporate Communications Extraordinary General Meeting: Phone +41 41 935 6396 November 24th, 2020 Eva.Borowski@landisgyr.com Ca