Landis+gyr Group Ag · SIX:LAND
Landis+gyr — H1 2017 Earnings Presentation
18 slides from Landis+gyr's earnings presentation, Oct 26, 2017
Slide 1: Half-year H1 2017 Earnings presentation
Half-year H1 2017 Earnings presentation Richard Mora Jonathan Elmer Chief Executive Officer Chief Financial Officer © Landis+Gyr | October 26, 2017
Slide 2: Important notices
Important notices This presentation includes forward-looking information and statements including statements concerning the outlook for our businesses. These statements are based on current expectations, estimates and projections about the factors that may affect our future performance, including gl
Slide 3: Landis+Gyr – a global leader…
Landis+Gyr – a global leader… Global leader in Smart Metering and Smart Grid solutions 120 Years Over 60 million of service to A management team with c.USD 880 million Headquartered in smart grid connected customers over 15 years median of self-funded Switzerland intelligent devices as a trusted ten
Slide 4: …in a growing market
…in a growing market Forecasted growth rates Americas1 EMEA1 Asia Pacific2 Electricity comm. Meters (USD bn) Electricity & gas comm. Meters (USD bn) Electricity & gas comm. Meters (USD bn) 2.7 1.7 1.7 1.2 0.9 0.3 Dec-17 Dec-21 Dec-17 Dec-21 Dec-17 Dec-21 Sources: 1. IHS Markit 2017 2. Frost & Sulliv
Slide 5: Recent corporate developments
Recent corporate developments TATA POWER TEPCO BRITISH GAS On September 4, Landis+Gyr On September 7, Landis+Gyr On October 20, Landis+Gyr announced that Tata Power announced the signing of an announced the deployment of Delhi Distribution Ltd selected agreement with TEPCO to the U.K.’s first SMETS2
Slide 6: Business highlights
Business highlights – H1 September 2017 Group: ▪ Solid sales growth of 9.6% and order intake growth of 27.6% year over year in constant currency. ▪ Adjusted EBITDA increased USD 12.5 million, or 13.0% to USD 108.8 million. ▪ Reported net income improved from a loss of USD 13.0 million to a profit of
Slide 7: Business highlights
Business highlights – H1 September 2017 Americas EMEA Asia Pacific ▪ Good order intake and overall ▪ Good order intake and solid ▪ An important win in Tata Power, excellent financial performance backlog leads to strong revenue India. driven by US AMI business. growth in core AMI markets. ▪ Some reco
Slide 8: Consolidated results
Consolidated results – H1 September 2017 in USD millions (except per share amounts) H1-Sep 17 H1-Sep 16 Change Order Intake 821.4 637.1 28.9% Change in constant currency 27.6% Committed backlog 2'478.8 2'699.0 (8.2%) Net revenue 865.6 787.5 9.9% Change in constant currency 9.6% Gross profit (before
Slide 9: Adjustments to EBITDA
Adjustments to EBITDA – H1 September 2017 Adjustments H1-Sept 2017 ▪ Restructuring – Costs associated with the implementation of Project Phoenix & Project Lightfoot restructuring programs in in USD millions H1-Sep 17 H1-Sep 16 Change EMEA. ▪ Exceptional Warranty Expenses – All attributed to FX impac
Slide 10: Net revenue year-over-year bridge
Net revenue year-over-year bridge – H1 September 2017 Net revenue year-over-year bridge: in USD millions Americas EMEA +USD 24.2M driven +USD 46.3M as 1000.0 by strong US AMI major AMI projects 46.3 2.1 865.6 24.2 5.6 sales offsetting an in key European 787.5 800.0 expected decline markets gather in
Slide 11: Adjusted EBITDA year-over-year bridge
Adjusted EBITDA year-over-year bridge – H1 September 2017 Adjusted EBITDA y-o-y bridge: Adjusted in USD millions Gross Profit increase driven by a 120.0 strong performance 5.9 108.8 6.7 in the Americas 100.0 96.3 -0.1 segment. 80.0 60.0 Improvement to EBITDA Adjusted Deterioration to EBITDA Operatin
Slide 12: Cash flow
Cash flow – H1 September 2017 Operating Working Capital in USD millions H1-Sep 17 H1-Sep 16 Change generation Net income (loss) 5.3 (13.0) 18.3 improves by USD 27 million despite Depreciation and amortization 48.6 47.8 0.8 higher sales. Change in OWC, net 9.6 (17.7) 27.3 Other (24.4) (19.5) (4.9) Ca
Slide 13: Net debt & refinancing
Net debt & refinancing in USD millions ratio ▪ Solid cash generation leads in 12 months to USD 250 229 1.20 122 million reduction in net debt to USD 107 million, 0.5x annualized adjusted EBITDA. 200 1.1 1.00 ▪ Bridge loan taken out during the IPO remains at 0.80 USD 215 million. 150 107 0.60 ▪ Refin
Slide 14: Americas segment
Americas segment – H1 September 2017 in USD millions H1-Sep 17 H1-Sep 16 Change ▪ Continued strong revenue in core US AMI market offsets some expected declines Net revenue to external customers 475.2 449.5 5.7% in Japan. Change in constant currency 5.4% ▪ Adjusted GP increases as a result of higher
Slide 15: EMEA segment
EMEA segment – H1 September 2017 in USD millions H1-Sep 17 H1-Sep 16 Change ▪ Strong revenue growth coming from AMI projects in UK, France and Spain. Net revenue to external customers 320.7 274.8 16.7% Change in constant currency 16.9% ▪ Challenges on gross profit line as full GBP FX Brexit impact h
Slide 16: Asia Pacific segment
Asia Pacific segment – H1 September 2017 in USD millions H1-Sep 17 H1-Sep 16 Change ▪ Net revenue increases by 8.6% in constant currency as revenue grows in India and SE Asia. Net revenue to external customers 69.7 63.1 10.5% ▪ Gross margins and operating expenses remain Change in constant currency
Slide 17: H1 September 2017 – outlook
H1 September 2017–outlook FY 2017 Full FY 2017 IPO Guidance Through FY 2020 Year Outlook: Included: (Compared to FY 2016): ▪ FY 2017 Adjusted EBITDA ▪ Net Revenues to grow 3% ▪ Net Revenue expected to grow guidance confirmed, whereas compared to FY 2016. by high single digit percentage. net revenue
Slide 18: Dates and contacts
Dates and contacts Contact Address Contact Investor Relations Important Dates Investor Relations Stan March Landis+Gyr Group AG SVP Group Communications & Announcement of Year End Results: Theilerstrasse 1 Investor Relations June 5, 2018 CH-6301 Zug Stan.March@landisgyr.com +41 41 935 6000 Annual Ge