Lectra SA · EURONEXT:LSS
Lectra SA — 9M 2022 Earnings Presentation
37 slides from Lectra SA's earnings presentation, October 2022
Slide 1: Financial results Q3 and 9M 2022
Financial results Q3 and 9M 2022 Daniel Harari, Chairman & CEO Jérôme Viala, Executive Vice President Olivier du Chesnay, Chief Financial Officer Maximilien Abadie, Chief Strategy Officer
Slide 2: Financial results Q3 and 9M 2022 agenda
FINANCIAL RESULTS Q3 AND 9M 2022 § 9M 2022 main highlights § Q3 2022 results § 9M 2022 results § Lectra 4.0 strategy § Assessment of the 2020-2022 strategic roadmap § 2022 outlook 2 Lectra - Financial results Q3 and 9M 2022
Slide 3: 9M 2022 main highlights
9M 2022 MAIN HIGHLIGHTS Particularly robust Strong growth in revenues Great resiliency in a balance sheet and degraded environment and earnings positive net cash position 3 Lectra - Financial results Q3 and 9M 2022
Slide 4: A great resiliency in a degraded environment
9M 2022 MAIN HIGHLIGHTS A great resiliency in a degraded environment Augmentation des taux d’intérêt Price increases and shortages Lockdowns in China Increase in interest rates of energy and raw materials Strong fluctuation of the Growing fears of recession in Ukraine war exchange rates many countri
Slide 5: Q3 2022 results agenda
FINANCIAL RESULTS Q3 AND 9M 2022 § 9M 2022 main highlights § Q3 2022 results § 9M 2022 results § Lectra 4.0 strategy § Assessment of the 2020-2022 strategic roadmap § 2022 outlook To facilitate the analysis of the Group’s results, the Q3 2022 results are compared to the Q3 2021 pro forma financial s
Slide 6: Steady level of orders
Q3 2022 RESULTS Steady level of orders Orders for perpetual software licenses, equipment New software subscription orders and accompanying software, and non-recurring In millions of euros, annual value services In millions of euros -2% +1% 47.4 46.6 1.9 2.0 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Pro forma
Slide 7: Strong growth in revenues and earnings
Q3 2022 RESULTS Strong growth in revenues and earnings In millions of euros Revenues EBITDA Net income Free cash flow before non-recurring items before non-recurring items -12% +22% +49% x2.0 Q3 2021 net income 19.3 Free cash flow before non-recurring included a non-recurring items in Q3 2021 includ
Slide 8: 9M 2022 results agenda
FINANCIAL RESULTS Q3 AND 9M 2022 § 9M 2022 main highlights § Q3 2022 results § 9M 2022 results § Lectra 4.0 strategy § Assessment of the 2020-2022 strategic roadmap § 2022 outlook To facilitate the analysis of the Group’s results, the 9M 2022 results are compared to the 9M 2021 pro forma financial s
Slide 9: Very strong increase in revenues and earnings
9M 2022 RESULTS Very strong increase in revenues and earnings In millions of euros Revenues EBITDA before non-recurring items At actual exchange rates At actual exchange rates +93% x2.0 +14% +46% 23.6 74.9 49.6 392.1 139.5 342.4 14.6 51.3 202.9 36.8 18.1% 15.0% 19.1% 9M 2021 9M 2021 9M 2021 9M 2022
Slide 10: Slight decrease in free cash flow before non-recurring items
9M 2022 RESULTS Slight decrease in free cash flow before non-recurring items Free cash flow before non-recurring items In millions of euros 33.6 9M 2022 free cash flow before non-recurring items was down CIR 4.5 31.6 slightly compared to 9M 2021 due to a temporary increase in working capital require
Slide 11: Increase in orders of new systems
9M 2022 RESULTS – COMPARED TO 2021 PRO FORMA Increase in orders of new systems Orders for perpetual software licenses, equipment and accompanying software, and New software subscription orders non-recurring services In millions of euros, annual value In millions of euros +5% +21% 153.7 146.3 6.2 9M
Slide 12: A geographically contrasted activity
9M 2022 RESULTS – COMPARED TO 2021 PRO FORMA A geographically contrasted activity AMERICAS EUROPE ASIA-PACIFIC +22% +1% -11% 57.7 of which China 51.3 46.1 41.1 41.4 -24% 37.7 24.6 18.6 9M 2021 9M 2022 9M 2021 9M 2022 9M 2021 9M 2022 9M 2021 9M 2022 REST OF THE WORLD +53% Orders for perpetual softwar
Slide 13: Strong growth in automotive orders, significant decline in furniture orders
9M 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 153.7 146.3 -9% 9% 11% Change -38% 9% 15% § Europe +13
Slide 14: Very strong increase in results
9M 2022 RESULTS – COMPARED TO 2021 PRO FORMA Very strong increase in results In millions of euros Revenues Gross profit Overhead costs +14% +17% 392.1 +8% 342.4 259.9 222.8 192.0 207.1 65.1% 66.3% 9M 2021 9M 2022 9M 2021 9M 2022 9M 2021 9M 2022 EBITDA Income from operations Net income before non-rec
Slide 15: Strong growth in revenues
9M 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 +16% +13% +14% 123.
Slide 16: Margin from recurring revenue growth offsets increase in fixed costs
9M 2022 RESULTS – COMPARED TO 2021 PRO FORMA The margin generated by recurring revenue growth offsets the increase in fixed costs Evolution of EBIDTA before non-recurring items In millions of euros Volume effect of recurring revenues €20.3m +5.4 -18.9 +7.1 +7.5 +9.2 74.9 +13.2 51.3 9M 2021 EBITDA Vo
Slide 17: A particularly robust balance sheet and a positive net cash position
9M 2022 RESULTS A particularly robust balance sheet and a positive net cash position Balance sheet In millions of euros The Group took out a €140m loan to finance the cash portion of the acquisition price of Gerber in the amount of €175m. 130.6 122.4 475.2 A first installment of €21.0m was paid back
Slide 18: Evolution of the share price
9M 2022 RESULTS Evolution of the share price Evolution from January 1, 2021 to October 24, 2022 AT OCTOBER 24, 2022 In euros, closing price n Share price: €30.10 45 Highest March 30, n Market cap.: €1,137m 2022 €44.20 40 n Enterprise Value: €1,134m n EV/LTM Revenues: 2.2x 35 n EV/LTM EBITDA: 11.7x L
Slide 19: Lectra 4.0 strategy agenda
FINANCIAL RESULTS Q3 AND 9M 2022 § 9M 2022 main highlights § Q3 2022 results § 9M 2022 results § Lectra 4.0 strategy § Assessment of the 2020-2022 strategic roadmap § 2022 outlook 19 Lectra - Financial results Q3 and 9M 2022
Slide 20: The Lectra 4.0 strategy is proving its relevance
LECTRA 4.0 STRATEGY The Lectra 4.0 strategy is proving its relevance Continuing its focus on the long-term, the Lectra 4.0 strategy, launched in 2017, aims to position Lectra as a key Industry 4.0 player in its market sectors between now and 2030. In the difficult international context of the last t
Slide 21: A new dimension with increased opportunities for continued growth
LECTRA 4.0 STRATEGY A new dimension with increased opportunities for continued growth 2022 revenues at €514-534m1 (€260m in 2016), with recurring revenues higher than 2016 total revenues. Around €20m of SaaS revenues estimated for 2022 (€0 in 2016). 2,500 employees (1,550 at the end of 2016). New of
Slide 22: We are sustainability enablers
LECTRA 4.0 STRATEGY Strong dedication to Corporate Social Responsibility We carry out our business and operating practices with an objective in mind, which is to make a positive impact on the society. Through our technology and partnerships, we empower customers to become more socially responsible a
Slide 23: A revamped brand image: We pioneer. You lead.
LECTRA 4.0 STRATEGY A revamped brand image WE PIONEER. YOU LEAD. Tagline As a major player in the fashion, automotive and furniture markets, Lectra contributes to the Industry 4.0 revolution with boldness and passion by providing best-in-class technologies. Purpose Open-minded thinkers Trusted partn
Slide 24: Assessment of the 2020-2022 strategic roadmap agenda
FINANCIAL RESULTS Q3 AND 9M 2022 § 9M 2022 main highlights § Q3 2022 results § 9M 2022 results § Lectra 4.0 strategy § Assessment of the 2020-2022 strategic roadmap § 2022 outlook 24 Lectra - Financial results Q3 and 9M 2022
Slide 25: The five strategic priorities of the 2020-2022 roadmap
ASSESSMENT OF THE 2020-2022 STRATEGIC ROADMAP The five strategic priorities of the 2020-2022 strategic roadmap have guided the Group’s actions over the three years 1 2 3 Accelerate Strengthen Extend the offers organic growth customer relations for Industry 4.0 Develop new areas Capture all synergies
Slide 26: Growing adoption of Lectra's offers for Industry 4.0
ASSESSMENT OF THE 2020-2022 STRATEGIC ROADMAP Growing adoption of Lectra’s offers for Industry 4.0 Number of customers using one or several offers for the Industry 4.0 +130 in 9M 28 31/12/18 124 31/12/19 270 31/12/20 620 30/12/21 750 30/09/22 All the new software offers launched after 2018 Of which
Slide 27: Reinforced customer satisfaction
ASSESSMENT OF THE 2020-2022 STRATEGIC ROADMAP Reinforced customer satisfaction 86 2019 % 92% 71 83% 9M 2022 2019 % 9M 2022 57 2019 83 9M 2022 Customer satisfaction Super customer satisfaction score Net Promoter Score (NPS) score (CSAT) (Super CSAT) Based on more than 2,000 customer surveys done in 2
Slide 28: No competitor has such a capacity for innovation
ASSESSMENT OF THE 2020-2022 STRATEGIC ROADMAP No competitor has such a capacity for innovation R&D teams At 30/09/2022 47 510 1 74 13 €52m 376 2022 estimated R&D investment, fully expensed 10% of 2022 estimated revenues 1To which is added 50 R&D subcontractors of Gerber since a part of Gerber's annu
Slide 29: Major technological advances to meet companies' long-term needs
ASSESSMENT OF THE 2020-2022 STRATEGIC ROADMAP Major technological advances to meet companies’ long-term needs New offers for Industry 4.0 New versions or product line extensions of flagship offers Greater integration between Lectra and Gerber brand solutions 29 Lectra - Financial results Q3 and 9M 2
Slide 30: Strategic acquisitions opening new horizons for Lectra
ASSESSMENT OF THE 2020-2022 STRATEGIC ROADMAP Strategic acquisitions opening new horizons for Lectra To reinforce the offer around e-commerce To create a world-class, leading Industry 4.0 player and strong value from synergies To enhance the depth of Lectra’s fashion software portfolio To expand Lec
Slide 31: Strong recognition by Lectra's eco-system
ASSESSMENT OF THE 2020-2022 STRATEGIC ROADMAP Strong recognition by Lectra's eco-system throughout the period Lectra wins the 2020 BFM Business Grand Microsoft rewards Lectra's commitment to Prize for digital acceleration Industry 4.0 Lectra joins Euronext Tech Leaders, the Deloitte recognizes Lectr
Slide 32: Very solid financial structure
ASSESSMENT OF THE 2020-2022 STRATEGIC ROADMAP Very solid financial structure Although the business activity was severely impacted during the period by a difficult macroeconomic and geopolitical environment, Lectra’s business model has demonstrated its strength and virtue. In millions of euros Recurr
Slide 33: Second stage in implementing Lectra's 4.0 strategy successfully completed
ASSESSMENT OF THE 2020-2022 STRATEGIC ROADMAP Second stage in implementing Lectra’s 4.0 strategy successfully completed Despite the deterioration of the macro-economic and geopolitical environment, Lectra's results since 2020 and the success of its offers for Industry 4.0 demonstrate the relevance o
Slide 34: 2022 outlook agenda
FINANCIAL RESULTS Q3 AND 9M 2022 § 9M 2022 main highlights § Q3 2022 results § 9M 2022 results § Lectra 4.0 strategy § Assessment of the 2020-2022 strategic roadmap § 2022 outlook 34 Lectra - Financial results Q3 and 9M 2022
Slide 35: Confirmation of the revised financial objectives
2022 OUTLOOK Confirmation of the revised financial objectives, published on July 28, 2022 Scenarios of Scenarios of February 9, 2022 July 28, 2022 €508m to €556m €514m to €534m Revenues +31% to +43% +33% to +38% EBITDA €92m to €104m €95m to €102m before non-recurring items +41% to +60% +46% to +57%
Slide 36: Upcoming financial calendar
UPCOMING FINANCIAL CALENDAR Annual Shareholders’ Quarterly results Analyst conference Meeting April 28, 2023 Q4 February 8, 2023 February 9, 2023 36 Lectra - Financial results Q3 and 9M 2022
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