Lectra SA · EURONEXT:LSS
Lectra SA — FY2022 Earnings Presentation
45 slides from Lectra SA's earnings presentation, Feb 9, 2023
Slide 1: Financial results Q4 & FY 2022
Financial results Q4 & FY 2022 Daniel Harari, Chairman & CEO Jérôme Viala, Executive Vice President Olivier du Chesnay, Chief Financial Officer Maximilien Abadie, Chief Strategy Officer, Chief Product Officer
Slide 2: Agenda
AGENDA ▪ 2022 main highlights ▪ Q4 2022 results ▪ 2022 results ▪ Reminder of the Lectra 4.0 strategy ▪ 2023-2025 strategic roadmap ▪ 2023 outlook 2 Lectra - Financial results Q4 & FY 2022
Slide 3: 2022 Main Highlights
2022 MAIN HIGHLIGHTS Positive net cash Accelerating adoption Strong growth in position, less than two of Lectra’s offers for revenues and earnings years after the acquisition Industry 4.0 of Gerber 3 Lectra - Financial results Q4 & FY 2022
Slide 4: Great resiliency in a degraded environment
2022 MAIN HIGHLIGHTS Great resiliency in a degraded environment Price increases and shortages Growing fears of recession in Lockdowns in China of energy and raw materials many countries Strong fluctuation of the Ukraine war exchange rates and increase in interest rates In this environment, the Group
Slide 5: Extension of Lectra's software offer to material traceability
2022 MAIN HIGHLIGHTS Extension of Lectra’s software offer to material traceability L’acquisition du capital et des droits de vote restants est prévue en deux temps, en 2026 et en 2028 TextileGenesis provides a SaaS platform that enables fashion brands and sustainable textile manufacturers to ensure
Slide 6: Agenda
AGENDA ▪ 2022 main highlights ▪ Q4 2022 results ▪ 2022 results ▪ Reminder of the Lectra 4.0 strategy ▪ 2023-2025 strategic roadmap ▪ 2023 outlook The Gerber Technology (“Gerber”), Neteven, and Gemini CAD Systems (“Gemini”) accounts have been consolidated since June 1, July 28 and September 27, 2021,
Slide 7: Q4 2022 Results: Orders decline, strong growth in software subscriptions
Q4 2022 RESULTS Decline in orders for perpetual software licenses, equipment and accompanying software, and non-recurring services Very strong growth in new software subscription orders Orders for perpetual software licenses, equipment New software subscription orders and accompanying software, and
Slide 8: Q4 2022 Results: Growth in revenues and EBITDA
Q4 2022 RESULTS Growth in revenues, EBITDA before non-recurring items, and EBITDA margin In millions of euros Revenues EBITDA before non-recurring items +3% +8% 129.9 In a particularly difficult macroeconomic 125.6 environment in Q4 2022, Lectra reported 23.5 growth in revenues and EBITDA before 21.
Slide 9: Agenda
AGENDA ▪ 2022 main highlights ▪ Q4 2022 results ▪ 2022 results ▪ Reminder of the Lectra 4.0 strategy ▪ 2023-2025 strategic roadmap ▪ 2023 outlook To facilitate the analysis of the Group’s results, the 2022 results are compared to the 2021 pro forma financial statement ("2021 Pro forma"), prepared by
Slide 10: 2022 results within range of financial objectives
2022 RESULTS 2022 results within the range of the financial objectives published in February 2022 and revised on July 28 Scenarios of Scenarios of 2022 actual February 9, 2022 July 28, 2022, confirmed on October 25 Revenues €508m to €556m €514m to €534m €522m +31% to +43% +33% to +38% +35% EBITDA €9
Slide 11: Strong increase in revenues and earnings
2022 RESULTS Strong increase in revenues and earnings In millions of euros Revenues EBITDA before non-recurring items At actual exchange rates At actual exchange rates +87% +91% +12% +35% 18.5% 15.6% 18.8% 2021 2021 2021 2022 2022 2021 2021 2021 2022 2022 Lectra scope impact of Pro forma organic act
Slide 12: Steady new systems orders, increase in subscription orders
2022 RESULTS – COMPARED TO 2021 PRO FORMA Steady level of new systems orders Increase of new software subscription orders Orders for perpetual software licenses, equipment and accompanying software, and New software subscription orders non-recurring services In millions of euros, annual value In mil
Slide 13: Geographically contrasted activity
2022 RESULTS – COMPARED TO 2021 PRO FORMA Geographically contrasted activity AMERICAS EUROPE ASIA-PACIFIC +16% -4% -15% 61.5 59.3 75.2 57.2 of which China 52.9 64.2 -23% 30.7 23.8 2021 2022 2021 2022 2021 2022 2021 2022 REST OF THE WORLD +31% Orders for perpetual software 7% 10% licenses, equipment
Slide 14: Strong growth in automotive orders, decline in furniture
2022 RESULTS – COMPARED TO 2021 PRO FORMA Strong growth in automotive orders, significant decline in furniture orders Orders for perpetual software licenses, equipment and accompanying software, and non-recurring services In millions of euros Fashion Automotive Furniture Other industries -2% +36% -3
Slide 15: Strong growth in revenues
2022 RESULTS – COMPARED TO 2021 PRO FORMA Strong growth in revenues Revenues from perpetual software licenses, equipment and Recurring revenues accompanying software, and non-recurring services In millions of euros In millions of euros Recurring contracts Consumables and parts +10% +13% +12% 168.4 1
Slide 16: Very strong increase in results
2022 RESULTS – COMPARED TO 2021 PRO FORMA Very strong increase in results In millions of euros Revenues Gross profit Overhead costs excluding depreciation and amortization +12% +14% +7% 521.9 468.0 347.7 305.9 249.3 232.8 65.4% 66.6% 2021 2022 2021 2022 2021 2022 EBITDA Income from operations Net in
Slide 17: Evolution of EBITDA before non-recurring items
2022 RESULTS – COMPARED TO 2021 PRO FORMA Gross margin, generated by recurring revenue growth, offset by increase in fixed costs Evolution of EBITDA before non-recurring items In millions of euros Volume effect of recurring revenues Overhead costs increase €26.6m -€16.5m 2021 EBITDA Volume effect of
Slide 18: Slight decrease in free cash flow
2022 RESULTS Slight decrease in free cash flow before non-recurring items Free cash flow before non-recurring items Free cash flow before non-recurring items was down slightly compared In millions of euros to 2021 due to a temporary increase in working capital requirement. 47.5 43.7 CIR 33,6 4.5 Thi
Slide 19: Robust balance sheet and positive net cash position
2022 RESULTS Particularly robust balance sheet and positive net cash position Balance sheet In millions of euros ▪ The Group took out a €140m loan in 2021 to finance the cash portion of the acquisition price of Gerber in the amount of €175m. 130.6 130.6 ▪ A first installment of €21.0m was paid back
Slide 20: Evolution of the share price
2022 RESULTS Evolution of the share price Evolution from January 1, 2022 to February 7, 2023 AT FEBRUARY 7, 2023 In euros, closing price ◼ Share price: €38.90 45 Highest ◼ Market cap.: €1,470m March 30, CAC 40 2022 € 44.20 -1% ◼ Enterprise Value: €1,459m 40 ◼ EV/2022 Revenues: 2.8x CAC MID & SMALL -
Slide 21: Agenda
AGENDA ▪ 2022 main highlights ▪ Q4 2022 results ▪ 2022 results ▪ Reminder of the Lectra 4.0 strategy ▪ 2023-2025 strategic roadmap ▪ 2023 outlook 21 Lectra - Financial results Q4 & FY 2022
Slide 22: A long term vision
REMINDER OF THE LECTRA 4.0 STRATEGY A long term vision Supported by a long-term vision, launched in 2017, the Lectra 4.0 strategy aims to position Lectra as a key Industry 4.0 player in its three strategic market sectors before 2030. 22 Lectra - Financial results Q4 & FY 2022
Slide 23: Markets undergoing profound changes
REMINDER OF THE LECTRA 4.0 STRATEGY Markets undergoing profound changes Fashion Automotive Furniture Fashion industry players must undertake Automotive suppliers face major Furniture industry players are continuing far-reaching transformations in their challenges induced by macroeconomic to moderniz
Slide 24: Industry 4.0 transforming industrial processes
REMINDER OF THE LECTRA 4.0 STRATEGY Industry 4.0 transforming industrial processes The fourth industrial revolution will be a major step forward in interconnecting all participants in the value chain, with smarter and more agile Mechanization, steam, Mass production, Electronic, IT systems, companie
Slide 25: Lectra has all the assets to become a key Industry 4.0 player
REMINDER OF THE LECTRA 4.0 STRATEGY Lectra has all the necessary assets to become a key Industry 4.0 player INDUSTRY 4.0 16 years of experience in IoT Combination of equipment, Strong business-line expertise software, data and services More than 7,700 cutting machines, The sole player in its industr
Slide 26: Corporate Social Responsibility: an increasingly central role
REMINDER OF THE LECTRA 4.0 STRATEGY Corporate Social Responsibility: an increasingly central role for all activities Ethical, environmental, social and societal issues are becoming essential to companies in conducting their business: ▪ Increased expectations from consumers in terms of product tracea
Slide 27: Fundamentals of the Lectra 4.0 strategy enriched with CSR pillar
REMINDER OF THE LECTRA 4.0 STRATEGY Fundamentals of the Lectra 4.0 strategy enriched with a pillar dedicated to CSR New Premium positioning Focus on three Customers at the New 4.0 services A committed CSR strategic market heart of the activities policy sectors High value-added solutions and Fashion,
Slide 28: 3-years strategic roadmaps to implement a long-term strategy
REMINDER OF THE LECTRA 4.0 STRATEGY 3-years strategic roadmaps to implement a long-term strategy Establish the key fundamentals Capture the full potential of its new Position Lectra as a key LAUNCH OF for the future of the Group, offers for Industry 4.0, while Industry 4.0 player in its THE LECTRA 4
Slide 29: Agenda
AGENDA ▪ 2022 main highlights ▪ Q4 2022 results ▪ 2022 results ▪ Reminder of the Lectra 4.0 strategy ▪ 2023-2025 strategic roadmap ▪ 2023 outlook 29 Lectra - Financial results Q4 & FY 2022
Slide 30: Further position Lectra as an Industry 4.0 leader
2023-2025 STRATEGIC ROADMAP Further position Lectra as an Industry 4.0 leader Take full advantage of Significantly increase Seize acquisition the Group’s change in the volume of SaaS in opportunities dimension to the Group's total accelerate growth revenues With the commitment and engagement of empl
Slide 31: Six strategic priorities for the next three years
2023-2025 STRATEGIC ROADMAP Six strategic priorities to guide Lectra for the next three years Prepare Lectra for the Reinforce implementation of ethical, 2026-2030 period social, societal, and environmental best practices both internally and for customers Continue to pursue Leverage all synergies ar
Slide 32: Reinforce ethical, social, societal and environmental best practices
2023-2025 STRATEGIC ROADMAP 1 Reinforce implementation of ethical, social, societal, and environmental best practices both internally and for customers Formalized in 2021, Lectra’s structured CSR policy will enable it to sustain growth while fully integrating the expectations of all stakeholders. Me
Slide 33: Leverage all synergies arising from the Gerber acquisition
2023-2025 STRATEGIC ROADMAP 2 Leverage all synergies arising from the Gerber acquisition With this acquisition, Lectra’s fundamentals such as its rich, robust, advanced experience in the key technologies of Industry 4.0, its worldwide presence, its leadership and business model have all been strengt
Slide 34: Accelerate the transition of software sales to the SaaS model
2023-2025 STRATEGIC ROADMAP 3 Accelerate the transition of software sales to the SaaS model New software offers launched after 2018 and those from the acquisitions of Kubix Link, Retviews, Neteven, and TextileGenesis are only sold in SaaS mode. Strengthen market penetration of software offers sold i
Slide 35: Accelerate transformation of customer relationship and engagement model
2023-2025 STRATEGIC ROADMAP 4 Accelerate the transformation of the Group's customer relationship and customer engagement model With the change in the Group's dimension and the enrichment of its product portfolio, the customer engagement and customer relationship model will continue to evolve. Increa
Slide 36: Continue to pursue external growth
2023-2025 STRATEGIC ROADMAP 5 Continue to pursue external growth Since 2018, Lectra made 7 acquisitions: Kubix Lab, Retviews, Gerber, Neteven, Gemini, Glengo Teknoloji’s business assets, and TextileGenesis. Access additional growth drivers in the long-term Privileges companies (mainly Build new expe
Slide 37: Prepare Lectra for the 2026-2030 period
2023-2025 STRATEGIC ROADMAP 6 Prepare Lectra for the 2026-2030 period Enable the Group to achieve more rapidly and more efficiently its position as an indispensable player in Industry 4.0 in all three strategic market sectors. Concentrate efforts on the most promising activities going forward ▪ Deve
Slide 38: 3-years strategic roadmaps to implement a long-term strategy
2023-2025 STRATEGIC ROADMAP 3-years strategic roadmaps to implement a long-term strategy Establish the key fundamentals Capture the full potential of its new Take full advantage of its change in Position Lectra as a key LAUNCH OF for the future of the Group, offers for Industry 4.0, while dimension
Slide 39: 2025 financial objectives
2023-2025 STRATEGIC ROADMAP 2025 financial objectives €700+m* 10% 20<+% of revenues of revenues < Revenues SaaS revenues EBITDA margin before non-recurring items < The Company intends to keep its attractive shareholder payment policy with dividends that over the roadmap period should represent a pay
Slide 40: Agenda
AGENDA ▪ 2022 main highlights ▪ Q4 2022 results ▪ 2022 results ▪ Reminder of the Lectra 4.0 strategy ▪ 2023-2025 strategic roadmap ▪ 2023 outlook 40 Lectra - Financial results Q4 & FY 2022
Slide 41: A new dimension for Lectra with increased opportunities
2023 OUTLOOK A new dimension for Lectra with increased opportunities for continued growth In millions of euros, changes at actual exchange rates Extended global reach and enlarged customer base Revenues Shareholders’ equity R&D investments Unmatched capacity for 521.9 452.2 innovation 52.9 208.8 280
Slide 42: A still degraded environment with signs of improvement
2023 OUTLOOK Degradation Stability Slight Strong improvement improvement A still degraded environment with signs of improvement Price increases and shortages Growing fears of recession in Lockdowns in China of energy and raw materials many countries Despite the persistent lack of visibility for 2023
Slide 43: 2023 financial objectives
2023 OUTLOOK 2023 financial objectives In millions of euros Revenues EBITDA before non-recurring items +2% +12% +20% -5% -€8.3m 576 -€3.8m 113 522 90 2022 actual 2022 converted 2023 objectives* 2022 actual 2022 converted 2023 objectives* applying the applying the exchange rates exchange rates used f
Slide 44: Upcoming financial calendar
UPCOMING FINANCIAL CALENDAR Annual Shareholders’ Quarterly results Analyst conference Meeting April 28, 2023 Q1 April 27, 2023 October 26, 2023 Q2 July 27, 2023 Q3 October 25, 2023 Q4 February 14, 2024 44 Lectra - Financial results Q4 & FY 2022
Slide 45: LeCiRaA
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