Signify Nv · EURONEXT:LIGHT
Signify Nv — Shareholder Meeting (May 2021)
38 slides from Signify Nv's shareholder meeting presentation, May 2021
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: Full year 2020
Full year 2020 Improving and building a sustainable future in a year of unprecedented challenges • LED-based sales increased to 80% (FY 19: 79%) • Connected light points rose to 77m (FY 19: 56m) • Comparable sales declined by 12.7% • Adjusted indirect cost base decreased by EUR 166m • Operational pr
Slide 4: Sustainable operations: Brighter Lives, Better World 2020 results
Successfully completed our Brighter Lives, Better World 2020 program Overachieving on our 2020 Sustainability targets 2020 achievements 2020 objectives Sustainable 84.1% sustainable revenues 80% revenues 2.9 billion LED lamps & luminaires delivered > 2 billion Carbon neutrality for all operations Su
Slide 5: Signify's 5 Frontiers strategy
Signify’s 5 Frontiers strategy
Slide 6: Build a customer-centric organization
Signify’s 5 Frontiers strategy Build a customer-centric organization • Customer NPS improved by 9 points to 41 • Implemented a new operating model that is enhancing customer-centricity
Slide 7: Deliver differentiated lighting offers
Signify’s 5 Frontiers strategy Deliver differentiated lighting offers • B-brand and Private Labels sales increased by over 20% • 4.4% of sales invested in R&D
Slide 8: Drive growth for sustainability
Signify’s 5 Frontiers strategy Drive growth for sustainability • Our installed connected light points increased by 38% to 77 million • Growth platforms (Agriculture, Solar, UV-C, 3D Printing) revenue increased to ~EUR 250m
Slide 9: Digitalize and transform for the future
Signify’s 5 Frontiers strategy Digitalize and transform for the future • Direct online sales of consumer products doubled
Slide 10: Be a great place to work
Signify’s 5 Frontiers strategy Be a great place to work • Employee NPS improved to 29 points • Participation rate stood above 80%
Slide 11: 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 €6.5bn 37,000 100% Conventional, LED sales in 2020, people in 74 countries Carbon neutral operations and Connected ~ 75% profes
Slide 12: Our new Brighter Lives, Better World 2025 program
Our new Brighter Lives, Better World 2025 program Doubling our positive impact on the environment and society Doubling objectives Double the pace we achieve the 1.5°C Climate action scenario of the Paris Agreement Better World Circular economy Double our Circular revenues to 32% Food availability Do
Slide 13: Transitioned to an LED-based company with eight years of margin improvement
Transitioned successfully to an LED-based company with eight years of consecutive operating margin improvement Transition from conventional to Development of Adj. EBITA margin LED-based sales (in % of total sales) 20% 10.4% 10.7% Conventional 9.6% 10.1% 8.9% 7.3% 78% 6.4% 6.8% 4.7% 80% 78% LED 22% 2
Slide 14: First quarter 2021
First quarter 2021 Demonstrating execution of our strategy with growth driven by connected businesses and growth platforms • Installed base of connected light points increased to 83m in Q1 2021 (at the end of 2020: 77m) • Sales of EUR 1,599 million; 12.0% nominal sales growth and CSG of 3.2% • Adj.
Slide 15: Outlook 2021
Outlook 2021 Following the operational performance in the first quarter and based on current visibility, Signify now anticipates: • CSG of 3% to 6% for FY 2021 • Adjusted EBITA margin of 11.5% to 12.5% • A free cash flow to exceed 8% of sales for the full year 2021 • To reduce its debt by the commit
Slide 16: Connected Lighting Systems & Growth platforms
Connected Lighting Systems & Growth platforms Growth for Sustainability Climate action Health & wellbeing Food availability Safety & security Safety & security Professional systems Consumer systems Agriculture Climate action Circular economy Health & wellbeing Solar 3D printing UV-C
Slide 17: Corporate Social Responsibility
Corporate Social Responsibility Enabling access to the benefits of sustainable lighting solutions for underserved communities Lighting lives by enabling access to sustainable lighting technology • 6 million lives lit Building local capacity and enabling community development by supporting lighting e
Slide 18: Thank you
Thank you @®ignify
Slide 19: 2. Remuneration report
19 2. Remuneration report @®ignify
Slide 20: Remuneration Board of Management 2020
Remuneration Board of Management 2020 Board of Base Salary Base Salary Annual (Cash) Incentive Long-term Equity-based Management Jan 1, 2020 Oct 1, 2020 (% of Base Salary) Incentive at target (+2.5%) (+1%) (% of Base Salary) Min. Target Max. E.H.E. Rondolat € 892,775 € 901,703 1 0 80 160 100 C.L. va
Slide 21: Annual Incentive 2020 Long-term Incentive 2020
Annual Incentive 2020 Long-term Incentive 2020 The Annual Incentive 2020 consists of two major Long-term Incentive 2020 performance measures: components: 1 Financial • CSG - Comparable Sales Growth Component (ext. reported) 25% 25% Performance measures • Adj. EBITA - Adjusted Earnings Three Relative
Slide 22: Annual Incentive Realization 2020
Annual Incentive Realization 2020 Performance measures Weighting Realized Realized % Multiple achieved Comparable sales growth 30% (12.7)% 0% 0% Adjusted EBITA 30% 10.5% 57.1% 17.1% Free Cash Flow 20% 12.1% 200% 40% 1 Team and individual performance measures 20% 150% 150% 30% Multiple achieved 87.1%
Slide 23: 2018 Long-Term Incentive grant performance achievement and vesting levels
2018 Long-Term Incentive grant performance achievement and vesting levels Achievement Weighting Vesting level TSR 120% 40% 48% Free Cash Flow 200% 40% 80% Sustainability 200% 20% 40% Total 168% 23
Slide 24: Remuneration Supervisory Board 2020
Remuneration Supervisory Board 2020 Supervisory Board Membership Committees Other compensation 1 Total A.P.M. van der Poel € 104,500 € 23,750 € - € 128,250 G. van der Aast € 80,750 € 26,600 € - € 107,350 E. Blok € 71,250 € 19,475 € - € 90,725 R.S. Lane € 71,250 € 16,625 € - € 87,875 J. Lee 2 € 40,00
Slide 25: Remuneration Board of Management Outlook 2021
Remuneration Board of Management Outlook 2021 25
Slide 26: Overview of Total Direct Compensation for the Board of Management
Overview of Total Direct Compensation for the Board of Management Outlook 2021 total direct compensation for members of the Board of Management In EUR Base Salary Short-Term Long-term Total Direct Jan 1, 2021 Incentive 1 Incentive 1 Compensation 1 (+2%) E.H.E. Rondolat € 919,737 80% 100% € 2,575,264
Slide 27: 3. Explanation of the policy on additions to reserves and dividends
3. Explanation of the policy on additions to reserves and dividends 27
Slide 28: 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 Capital allocation policy • Free cash flow generation • Pay an increasing annual dividend per share in cash year-on-year ¹ • Signify’s focus remains on maintaining a robust • Deleveraging and a
Slide 29: 2020 dividend of EUR 1.40 plus extraordinary dividend of EUR 1.35
Signify proposes 2020 dividend of EUR 1.40 plus an extraordinary dividend of EUR 1.35, both to be paid in cash in 2021 Key observations Dividend per share since IPO (in EUR) • The proposed extraordinary dividend of EUR 1.35 per share (EUR 170m), announced on January 13, 1.40 2021, is in line with th
Slide 30: Net debt increased due to the Cooper acquisition
Signify’s net debt increased due to the Cooper acquisition Characteristics at the end of 2020 Net debt development in 2020 (in EUR million) • Total cash of EUR 1,033 million with Free Cash 1,275 Flow of EUR 817 million 118 50 • Debt consisting of EUR 1,250 million Eurobond, Term Loans of EUR 390 mil
Slide 31: 4. Financial statements 2020; 5. Dividends; 6. Discharge
4. Financial statements 2020 5. Dividends: (a) extraordinary dividend, and (b) 2020 dividend 6. Discharge members of the Board of Management and Supervisory Board 31
Slide 32: Q&A
Q&A 32
Slide 33: 7. Composition of the Supervisory Board
7. Composition of the Supervisory Board 33
Slide 34: 8. Authorizations of the Board of Management to issue shares
8. Authorizations of the Board of Management to (a) issue shares or grant rights to acquire shares, and (b) restrict or exclude pre-emptive rights 34
Slide 35: 9. Authorization to acquire shares in the company
9. Authorization of the Board of Management to acquire shares in the company 35
Slide 36: 10. Cancellation of shares
10. Cancellation of shares 36
Slide 37: 11. Any other business
37 11. Any other business @®ignify
Slide 38: Siontty
Siontty