Lectra SA · EURONEXT:LSS
Lectra SA — Q3 2016 Earnings Presentation
20 slides from Lectra SA's earnings presentation, Oct 28, 2016
Slide 1: Analyst Conference – Paris, October 28, 2016
ANALYST CONFERENCE Paris, October 28, 2016 André Harari, Chairman of the Board of Directors Daniel Harari, Chief Executive Officer Jérôme Viala, Chief Financial Officer
Slide 2: Financial Results for Q3 2016, 9M 2016, 2016 Outlook
Analyst Conference – Paris, October 28, 2016 Financial Results for Q3 2016 Financial Results for 9M 2016 2016 Outlook Unless stated otherwise, comparisons are ‘like-for-like’ (2016 figures restated at 2015 exchange rates). Analyst Conference – Paris, October 28, 2016 2
Slide 3: Slight Increase in Orders for New Systems
Slight Increase in Orders for New Systems Orders for new systems Orders for new systems totaled €23.7 million (in millions of euros) New software licenses: €5.8 million (+6%) 23.7 22.9 CAD/CAM equipment: €14.6 million (+8%) +3% Training and consulting: €2.7 million (-23%) Strong performance in
Slide 4: Continuing Growth in Revenues and Earnings
Continuing Growth in Revenues and Earnings Q3 2016 Q3 2016 Q3 2015 Change at actual Change like-for-like Actual At 2015 Actual exchange rates In millions of euros exchange rates €M % €M % Revenues 64.4 64.3 59.3 +5.1 +9% +5.0 +9% New systems 28.0 27.7 24.7 +3.3 +13% +3.0 +12% Recurring 36.4 36.6 34.
Slide 5: Financial Results for Q3 2016, 9M 2016, 2016 Outlook
Analyst Conference – Paris, October 28, 2016 Financial Results for Q3 2016 Financial Results for 9M 2016 2016 Outlook Unless stated otherwise, comparisons are “like-for-like” (2016 figures restated at 2015 exchange rates). Analyst Conference – Paris, October 28, 2016 5
Slide 6: Strong Increase in Orders
Strong Increase in Orders 9M 2016 9M 2015 9M 2014 Change Change Actual Actual Actual 9M 2016 / 9M 2016 / Orders (in millions of euros) 9M 2015 9M 2015 At actual Like-for-like exchange rates Total 80.4 70.3 67.5 +14% +15% Of which New software licenses 18.3 17.1 16.3 +7% +8% CAD/CAM equipment 51.5 42
Slide 7: Strong Rebound in Asia-Pacific and in Automotive
Strong Rebound in Asia-Pacific and in Automotive Highly contrasted situation Asia-Pacific (38% of total orders): +55% □ Of which China (16%): +42%; Asean (10%): +70% 39% 42% Europe (36%): +10% 61% 58% Americas (20%): -17% □ North America (17%): -10% □ South America (3%): -41% Other countries
Slide 8: Revenues and Income from Operations in Line with the Company Roadmap
Revenues and Income from Operations in Line with the Company Roadmap 9M 2016 9M 2016 9M 2015 Change at actual Change like-for-like Actual At 2015 Actual exchange rates In millions of euros exchange rates €M % €M % Revenues 190.7 192.5 175.7 +15.0 +9% +16.8 +10% New systems 82.6 82.9 73.3 +9.2 +13% +
Slide 9: Growth in Revenues from New Systems Sales and in Recurring Revenues
Growth in Revenues from New Systems Sales and in Recurring Revenues Increase in total revenues +€16.8 million (+10%) Revenues from new systems sales: +13% New software licenses: €18.1 million (+3%) +13% CAD/CAM equipment: €54.4 million (+22%) Training & consulting: €8.4 million (-8%) 82.6 73.3
Slide 10: The Increase in Recurring Revenues Finances the Increase in Fixed Costs
The Increase in Recurring Revenues Finances the Increase in Fixed Costs and the Decrease in Gross Profit Margins In millions of euros, at actual exchange rates Contribution to the growth in income from operations +3.6 +5.2 Increase in recurring revenues 26.6 23.0 +3.9 Increase in revenues from new s
Slide 11: Lectra Continued to Invest in R&D
Lectra Continued to Invest in R&D R&D investments 9M 2016 R&D costs (€16.7 million) represented 8.7% of In millions of euros revenues (€16.5 million and 9.4% for 9M 2015) 23.1 21.7 22.4 Net R&D costs1: €11.5 million (€10.2 million for 9M 2015) 19.1 265 engineers (17% of workforce) dedicated to R
Slide 12: Subsidiary Opened in Vietnam
Subsidiary Opened in Vietnam In July 2016 Lectra opened a new subsidiary in Vietnam with a view to accelerate its development in Asia Vietnam is one of Southeast Asia’s most dynamic economies. It is a top choice for manufacturers who focus on production costs and brands seeking to diversify suppli
Slide 13: Acceleration in Marketing Investments is Strengthening Lectra's Image
Acceleration in Marketing Investments is Strengthening Lectra’s Image Click to see online content Automotive global campaign: Those who demand more, demand Lectra Customer stories, White papers, Press releases Videos Analyst Conference – Paris, October 28, 2016 13
Slide 14: Free Cash Flow Continues to Reflect the Pertinence of Lectra's Business Model
Free Cash Flow Continues to Reflect the Pertinence of Lectra’s 30,0 Business Model 30,0 In millions of euros 9M 2016 free cash flow: €16.2 million (+10%) 18.7 18.7 18.7 18.7 20,7 Cash flow provided by operating activities: €20.6 million (including 16.0 16.0 16.0 16.0 16.0 16.0 20,7 16.0 16.7 16.0
Slide 15: A Zero-Debt Company, Shareholders' Equity and Net Cash Position Further Reinforced
A Zero-Debt Company, Shareholders’ Equity and Net Cash Position Further Reinforced At September 30, 2016 In millions of euros, at December 31, except 2016 (at September 30) Shareholders’ equity: €123 million 120 €113 million at December 31, 2015 100 Net cash: €67.3 million 80 €59.3 million at De
Slide 16: A Structurally Negative Working Capital Requirement
A Structurally Negative Working Capital Requirement, a Key Feature of Lectra’s Business Model In millions of euros, at December 31, except 2016 (at September 30) Working capital requirement was negative at €0.4 million 10 This includes the receivable of €20.9 million on the French tax administrati
Slide 17: Strong Increase in the Share Price
Strong Increase in the Share Price Share price Evolution from January 1, 2015 to October 26, 2016 (in euros, daily closing price and index) October 26, 2016: €16.55 18.0 18,0 9M 2016 Lectra: +80% □ High (September 5): €16.40 16.0 16,0 □ Low (February 11): €10.76 □ Volume traded on Euronext 14,0
Slide 18: Financial Results for Q3 2016, 9M 2016, 2016 Outlook
Analyst Conference – Paris, October 28, 2016 Financial Results for Q3 2016 Financial Results for 9M 2016 2016 Outlook Analyst Conference – Paris, October 28, 2016 18
Slide 19: 2016 Outlook
2016 Outlook On February 11, 2016, the company stated that its objectives were to achieve, like-for-like1, a growth in revenues of 6% to 12% and a growth in income from operations of 8% to 25% With June 30 results in line with its roadmap, the company decided to step up its R&D plan with effect from
Slide 20: Upcoming Financial Calendar
Upcoming Financial Calendar FY 2016 Financial Results February 9, 2017 Analyst Conference February 10, 2017 lectra.com Crédit photos : FabVietnam Photography, Guggady Analyst Conference – Paris, October 28, 2016 20