Slide 1: Q2 2021 results
Q2 2021 results July 23, 2021
Slide 2: Important information
Important information Forward-looking statements This release contains forward-looking statements that reflect the intentions, beliefs or current expectations and projections of Signify, including statements regarding strategy, estimates of sales growth and future operational results. By their natur
Slide 3: Content
Content Business and operational performance by Eric Rondolat Financial performance and highlights by Javier van Engelen 2021 outlook by Eric Rondolat Q&A 3
Slide 4: Signify achieved Q2 comparable sales growth of 14.1%, an Adj. EBITA margin improvement of 190 bps
Signify achieved Q2 21 comparable sales growth of 14.1%, an Adj. EBITA margin improvement of 190 bps to 10.9% and a free cash flow of EUR 104m Sales (in EURm) & comparable sales growth (in %) Key observations for Q2 21 CSG -22.5% 14.1% -8.3% -5.9% 3.2% • Installed base of connected light points incr
Slide 5: Digital Solutions delivered a CSG of 12.6% and an Adj. EBITA margin improvement of 110 bps
Digital Solutions delivered a CSG of 12.6% and an Adj. EBITA margin improvement of 110 bps to 10.7% Sales (in EURm) & comparable sales growth (in %) Key observations for Q2 21 CSG -22.4% 12.6% -11.2% -10.2% -1.8% • Nominal sales growth 7.2% • Comparable sales growth of 12.6% • Sequential improvement
Slide 6: Digital Solutions highlights
Digital Solutions highlights Helping companies in the Boosting fan experience Providing our customers Beautifying the Grand Nordics to boost crop at four of Europe’s major with additional layer of Mosque of Istiqlal in yields with horti LEDs soccer stadiums protection through UV-C Jakarta, Indonesia
Slide 7: Digital Products delivered a CSG of 20.4% and an Adj. EBITA margin improvement of 270 bps
Digital Products delivered a CSG of 20.4% and an Adj. EBITA margin improvement of 270 bps to 12.0%, driven by the consumer segment Sales (in EURm) & comparable sales growth (in %) Key observations for Q2 21 CSG -21.1% 20.4% -2.0% 2.5% 15.7% • Comparable sales growth of 20.4% • Strong consumer demand
Slide 8: Digital Products highlights
Digital Products highlights Adopting new standard Expanding UV-C product Introducing a premium Offering a quick and easy ‘Matter’ for seamless range with Philips UV-C tunable white wireless HID replacement with smart home interaction mini disinfection box system for high-end retail Trueforce LED hig
Slide 9: Conventional Products delivered a CSG of 4.7% and an Adj. EBITA improvement of 110 bps
Conventional Products delivered a CSG of 4.7% and an Adj. EBITA improvement of 110 bps to 18.6% Sales (in EURm) & comparable sales growth (in %) Key observations for Q2 21 CSG -25.2% 4.7% -11.0% -11.6% -6.1% • Comparable sales growth 4.7% • Broad-based growth driven by market recovery and traction a
Slide 10: Overview of UV-C applications
Overview of UV-C applications Target segments Air disinfection Upper air HVAC cooling coil Air disinfection Solutions Office, Healthcare, Food Service, Solutions Closed air Retail, Sports Battens Control Industry, units Healthcare, (with sensors) Surface Dormitories Surface disinfection disinfection
Slide 11: Brighter Lives, Better World 2025
Brighter Lives, Better World 2025 Q2 2021 results Doubling our positive impact on the environment and society 2019 Q2 2021 2025 Baseline Result Target Carbon reduction over value chain Better World Climate action 0 33 MT 340 MT against Paris Agreement Circular economy Circular revenues 16% 24% 32% F
Slide 12: Content
Content Business and operational performance by Eric Rondolat Financial performance and highlights by Javier van Engelen 2021 outlook by Eric Rondolat Q&A 12
Slide 13: Adj. EBITA growth and margin improvement driven by volume, mix and carefully balancing pricing vs. cost
Adj. EBITA growth and margin improvement driven by volume, mix and carefully balancing pricing vs. cost In EURm / as % of sales 9.0% +190 bps 10.9% -17 18 -42 92 175 -8 -2 133 Q2 20 Volume / Mix Price CoGS Indirect Costs Currency Scope / Other Q2 21 13
Slide 14: Lower year-on-year working capital with improved payables and receivables
Lower year-on-year working capital with improved payables and receivables more than offsetting inventory for growth In EURm / as % of sales 6.3%1 -40 88 452 4.0% -276 269 46 Q2 20 Inventories Trade & other Trade & other payables Other working Q2 21 receivables capital items 14 1Includes sales of bot
Slide 15: Decrease of leverage ratio from 2.4x in Q2 2020 to 1.7x in Q2 2021
Decrease of leverage ratio from 2.4x in Q2 2020 to 1.7x in Q2 2021, but increase from Q1 2021 due to dividend payment and treasury share purchase In EURm 1,706 1,375 46 1,141 292 -187 38 -7 3 30 19 FCF: EUR +104m Net debt Net debt EBITDA Change in Net capex Change in Interest & Tax Other Dividend Ot
Slide 16: Strong H1 2021 with comparable sales growth of 8.4% and adj. EBITA margin expansion
Strong H1 2021 with comparable sales growth of 8.4% and adj. EBITA margin expansion of 230 bps to 10.8% Sales & comparable sales Adjusted EBITA Free Cash Flow growth (in EURm and % of sales) (in EURm) (in EURm and %) 8.4% 10.8% 270 272 -4.7% 8.4% 8.5% -19.1% 175 2,955 2,896 3,209 247 245 347 H1 19 H
Slide 17: Content
Content Business and operational performance by Eric Rondolat Financial performance and highlights by Javier van Engelen 2021 outlook by Eric Rondolat Q&A 17
Slide 18: Outlook 2021
Outlook 2021 • Continued COVID-19 uncertainty with increasing cases and new variants potentially leading to continued lockdowns and measures being reinstated • Supply constraints likely to persist in the second half of 2021 % • Signify continues to expect comparable sales growth between 3% and 6% fo
Slide 19: Q&A
Q&A 19
Slide 20: Currency movements had a negative impact on sales and Adjusted EBITA
Currency movements had a negative impact on sales and Adjusted EBITA Q2 21 Sales FX Footprint (% of total) Key observations • Currency movements negatively impacted sales and Adjusted EBITA Other Currencies, EUR, 26% • Sales impact of -4.5%, mainly from US dollar 28% depreciation. • Adjusted EBITA i
Slide 21: Net income increased to EUR 82m
Net income increased to EUR 82m, as higher profitability was offset by the impact of a significant one-time tax benefit in the previous year From Adjusted EBITA to net income (in EURm) Key observations Q2 20 Q2 21 1 Mainly related to Cooper Lighting Adjusted EBITA 133 175 - Restructuring -2 -9 Non-r
Slide 22: Free Cash Flow of EUR 104m
Free Cash Flow of EUR 104m Free cash flow (in EURm) Key observations Q2 20 Q2 21 • Free cash flow of EUR 104m Income from operations 87 106 • Reflecting an increased investment in growth Depreciation and amortization 86 81 Additions to (releases of) provisions 24 29 • Higher income from operations,
Slide 23: Sianty
Sianty