Lectra SA · EURONEXT:LSS
Lectra SA — Q3 and 9M 2020 Earnings Presentation
32 slides from Lectra SA's earnings presentation, Oct 29, 2020
Slide 1: Financial results Q3 and 9M 2020
Financial results Q3 and 9M 2020 Daniel Harari, Chairman & CEO Jérôme Viala, Executive Vice President October 29, 2020
Slide 2: Financial results Q3 and 9M 2020
Financial results Q3 and 9M 2020 § Impacts of the COVID-19 crisis § Q3 2020 results § 9M 2020 results § Outlook Detailed comparisons between 2020 and 2019 are based on 2019 exchange rates unless otherwise stated. 2 Lectra - Financial results Q3 and 9M 2020
Slide 3: Impacts of the COVID-19 crisis
Impacts of the COVID-19 crisis Main measures taken by Lectra to face the crisis Safeguard the health of Guarantee the continuity Pursue the execution of employees, customers of service to customers the Lectra 4.0 strategy and suppliers Strengthen customer In light of its sound financial position, re
Slide 4: Mobilization of Lectra's teams to produce protective equipment
Impacts of the COVID-19 crisis Mobilization of Lectra’s teams to produce protective equipment voluntarily 15,000 GOWNS cut for hospitals and teaching hospitals 390,000 MASKS cut for the general public, 190,000 of which for the French initiative “United masks” 4 Lectra - Financial results Q3 and 9M 2
Slide 5: Revenues and earnings strongly impacted in the first semester
Impacts of the COVID-19 crisis Revenues and earnings strongly impacted in the first semester Revenues Income from operations -6% -28% -39% -79% H1 20 results were strongly impacted due to the COVID-19 epidemic and its 70.2 9.5 consequences, particularly the expansion of 67.0 63.5 lockdown measures i
Slide 6: Different impact depending on the market sector
Impacts of the COVID-19 crisis Different impact depending on the market sector Fashion Automotive Furniture All businesses (brands, subcontractors, A severe shock to a market having already The home has become a central part of retailers) face profound changes and an faced difficulties over the last
Slide 7: Fashion: decline in sales due to shop closures
Impacts of the COVID-19 crisis Decline in sales due to the closure of shops, consumer fears and changes in personal behavior Fashion 2020 sales vs. 2019 Sales by distribution channels (in billions of dollars) -15% 1,672 1,634 APPAREL AND -21% 1,511 1,421 LUXURY FOOTWEAR The fall in tourism, poor dig
Slide 8: Digitalization is more than ever at the heart of concerns
Impacts of the COVID-19 crisis Digitalization is more than ever at the heart of concerns Fashion Company priorites before COVID-19 Company priorites after COVID-19 § Understand consumer evolution (towards a more digital and § Respond to new consumer behavior conscious consumer) § Substantially accel
Slide 9: Automotive: a brutal shock and gradual recovery
Impacts of the COVID-19 crisis A brutal shock and a recovery that could be gradual Automotive Worldwide light vehicle sales Worldwide light vehicle sales (in millions) (in thousands) 94.3 93.7 89.7 87.8 84.4 8,913 79.4 7,632 71.9 7,233 7,773 7,168 7,141 6,335 7,193 6,406 5,539 6,364 6,484 6,680 5,08
Slide 10: The crisis will encourage companies to accelerate towards Industry 4.0
Impacts of the COVID-19 crisis The crisis will encourage companies to accelerate towards Industry 4.0 Automotive Seat production Airbag production (in millions) (in millions) 440 454 286 414 407 427 270 270 278 379 259 242 327 210 19 20e 21e 22e 23e 24e 25e 19 20e 21e 22e 23e 24e 25e In a difficult
Slide 11: Furniture: a market that shows great resilience
Impacts of the COVID-19 crisis A market that shows great resilience With lockdown and the development of working from home, consumers are more inclined than in previous crises to devote a larger part of their spending to buying furniture. Production has improved compared to the lull at the beginning
Slide 12: Several signs of improvement in Q3
Impacts of the COVID-19 crisis Several signs of improvement in Q3 In millions of euros Orders for perpetual software licenses, New software subscription orders Revenues from consumables and parts equipment and accompanying software, and non-recurring services Annual value -28% -42% -21% +52% +30% +7
Slide 13: Financial results Q3 and 9M 2020
Financial results Q3 and 9M 2020 § Impacts of the COVID-19 crisis § Q3 2020 results § 9M 2020 results § Outlook Detailed comparisons between 2020 and 2019 are based on 2019 exchange rates unless otherwise stated. 13 Lectra - Financial results Q3 and 9M 2020
Slide 14: Q3 2020 results: Decline in orders
Q3 2020 results Decline in orders Orders for perpetual software licenses, equipment New software subscription and accompanying software, and non-recurring orders services In millions of euros Q3 20 vs. Q3 19 In millions of euros, annual value -21% +75% -17% 0.8 26.9 -31% 20.7 0.5 -28% Equipment and
Slide 15: Revenues and earnings still impacted by the COVID-19 crisis
Q3 2020 results Revenues and earnings still impacted by the COVID-19 crisis In millions of euros Revenues Income from operations $/€1 exchange rate At actual exchange rates Like-for-like At actual exchange rates Like-for-like -18% -15% -31% -24% 1.17 68.6 68.6 12.3 12.3 56.5 58.3 9.4 8.5 1.11 17.9%
Slide 16: Financial results Q3 and 9M 2020
Financial results Q3 and 9M 2020 § Impacts of the COVID-19 crisis § Q3 2020 results § 9M 2020 results § Outlook Detailed comparisons between 2020 and 2019 are based on 2019 exchange rates unless otherwise stated. 16 Lectra - Financial results Q3 and 9M 2020
Slide 17: Decrease in orders for new systems
9M 2020 results Decrease in orders for new systems Orders for perpetual software licenses, equipment and accompanying New software subscription software, and non-recurring services orders In millions of euros In millions of euros, annual value -30% +56% 9M 19 9M 20 Change Change 79.4 At actual Like-
Slide 18: Contrasted geographical activity
9M 2020 results Contrasted geographical activity New software subscription orders increased in all AMERICAS EUROPE ASIA-PACIFIC geographical regions -24% -44% 30.3 +2% 29.9 22.6 16.9 11.7 11.6 9M 19 9M 20 9M 19 9M 20 9M 19 9M 20 REST OF THE WORLD Orders for perpetual software 9% 7% licenses, equipme
Slide 19: Strong decline in orders in Fashion and Automotive
9M 2020 results Strong decline in orders in Fashion and Automotive Orders for perpetual software licenses, equipment and accompanying software, and non-recurring services In millions of euros 79.4 4% 14% -12% 54.9 Change -14% 5% 33% § Europe -31% 17% -41% § Americas +6% 28% -58% § Asia-Pacific 49% §
Slide 20: Strong decline in revenues and income from operations
9M 2020 results Strong decline in revenues and income from operations In millions of euros Revenues Overhead costs $/€1 exchange rate At actual exchange rates Like-for-like At actual exchange rates Like-for-like -17% -16% -7% -6% 205.8 205.8 121.2 121.2 112.9 113.8 170.6 172.2 1.12 1.12 9M 19 9M 20
Slide 21: Revenues: growth in recurring contracts
9M 2020 results Revenues: growth in recurring contracts Revenues from 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 +4% -21% Recurring revenues are a -31% key p
Slide 22: Resilient income from operations
9M 2020 results Resilient income from operations Evolution of income from operations In millions of euros Lectra has implemented measures to reduce its 29.7 overhead costs, which were initially budgeted to increase by 8% in 2020 (-6% in 9M 2020 vs. 9M 2019), by cancelling or postponing all non-essen
Slide 23: Positive free cash flow despite a difficult environment
9M 2020 results Positive free cash flow despite a difficult environment In millions of euros 21.3 The decline in free cash flow 9M 2020 vs. 9M 2019 is 18.1 attributable mainly to the lower income, the working capital requirement having decreased 11.0 10.0 by €1.6m in 9M 2020. 9M 19 9M 20 Net income
Slide 24: Particularly robust balance sheet
9M 2020 results Particularly robust balance sheet Balance sheet In millions of euros 183.0 183.5 The group has no financial debt. 120.6 117.9 Net cash is close to €120m, after the dividend payment on May 8, 2020 of €12.8m declared in respect of fiscal year 2019. 31/12/19 30/09/20 31/12/19 30/09/20 N
Slide 25: Evolution of the share price
9M 2020 results Evolution of the share price Evolution from January 1, 2020 to October 27, 2020 In euros, closing price Highest 24 January 15, 2020 €24.30 AT OCTOBER 27, 2020 22 Lectra 20 -16% n Share price: €19.42 CAC Mid & Small n Market cap.: €628m 18 -18% n Enterprise Value: €510m CAC 40 16 -22%
Slide 26: Financial results Q3 and 9M 2020
Financial results Q3 and 9M 2020 § Impacts of the COVID-19 crisis § Q3 2020 results § 9M 2020 results § Medium-term outlook 26 Lectra - Financial results Q3 and 9M 2020
Slide 27: 2020 outlook
Medium-term outlook 2020 outlook A significant improvement in the volume of orders, revenues, income from operations and free cash flow was recorded in Q3 and this trend could potentially be confirmed in Q4. Lectra’s three strategic market sectors, fashion, automotive and furniture, will probably un
Slide 28: A proven business model
Medium-term outlook A proven business model In millions of euros Revenues Security ratio1 Net cash Free cash flow Working capital requirement 280 229 90% 36 25 217 121 39% 63% 53% 70% 6 45% 61% 47% 10 30% 23 -2 2000 2007 2019 2000 2007 2019 -21 2000 2007 2019 Recurring Non recurring -51 31/12/00 31/
Slide 29: A recognized leadership
Medium-term outlook A recognized leadership Lectra – Winner of the 2020 BFM Business Grand Prize for digital acceleration This prestigious competition run by BFM Business rewards the best digital transformation projects. It aims to highlight best practices in digital acceleration by recognizing the
Slide 30: Assets to be among the winners of the post-COVID-19 era
Medium-term outlook Lectra has all the necessary assets to be among the winners of the post-COVID-19 era A strategy in line with New 4.0 offers that meet Sustained investments Supporting customers the demands of companies’ long-term in R&D during their Industry 4.0 needs transformation 27.7 + 30.8 +
Slide 31: Upcoming financial calendar
Upcoming financial calendar Q4 & FY financial results Analyst conference February 10, 2021 February 11, 2021 31 Lectra - Financial results Q3 and 9M 2020
Slide 32: Lectra
LeCrRaA. Empowering customers through industrial intelligence