Verisure Plc · OMXSTO:VSURE
Verisure — Verisure Midholding — Q1 2022 Earnings Presentation
18 slides from Verisure's earnings presentation, May 25, 2022
Slide 1: Verisure Midholding AB (publ) Earnings Call Presentation Q1 2022
Verisure Midholding AB (publ) Earnings Call Presentation | Q1 2022 May 25th, 2022
Slide 2: Disclaimer
Disclaimer This presentation and the investor conference call in which this presentation is used might contain forward looking statements, which are based on our current expectations and projections about future events. All statements other than statements of historical facts in this presentation in
Slide 3: Today's Presenters
Today´s Presenters Austin Lally Vincent Litrico Chief Executive Officer Chief Financial Officer 3
Slide 4: Agenda
Agenda • Key Developments • Financial Review • Questions & Answers 4
Slide 5: Performance Highlights
Performance Highlights Key Highlights Key Operating and Financial Metrics 2020 Q1 2021 Q1 2022 Q1 • Continued strong operational and financial performance in Q1 2022 New +142k +186k +203k Installations • Customer Portfolio continued to grow strongly and is now over 4.4 Customer million, which repres
Slide 6: Continuous Strong Customer Portfolio Growth
Continuous Strong Customer Portfolio Growth Customer Portfolio up +518k vs. Prior Year and Now Over 4.4 Million Customers Customer Portfolio (000) 4,402 +13.3% (+518k) 4,275 4,146 4,020 3,884 2021 2021 2021 2021 2022 Q1 Q2 Q3 Q4 Q1 QoQ Growth +120 +136 +126 +129 +127 (000) 6
Slide 7: Continuous Strong Customer Intake
Continuous Strong Customer Intake 203k New Installations in Q1 2022, up +9% vs. Prior Year New Installations (000) +9% 211 203 198 199 190 195 186 142 95 Q1 Q2 Q3 Q4 2020 2021 2022 7
Slide 8: Sustained Low Attrition
Sustained Low Attrition LTM Attrition Rate (%) 9.5 9.0 8.5 8.0 7.5 7.0 6.5% 6.5 6.0 5.5 5.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 8
Slide 9: Strong Unit Economics
Strong Unit Economics €43.6 €42.4 ARPU(1) €41.4 €12.1 €11.5 €26.0 Cost to Serve €12.4 (27%) (28%) (30%) Q1 2022 Growth ARPU €43.6 +2.9% €30.9 €31.5 EPC(2) €29.0 (73%) (72%) (70%) EPC €31.5 +1.9% 2020 2021 2022 Q1 Q1 Q1 Note: (1) ARPU: Average Revenue Per User per month; (2) EPC: Portfolio EBITDA Per
Slide 10: Key Financial Metrics
Key Financial Metrics Strong Financial Metrics Sustained High Portfolio Services Profitability €m Portfolio Services Adjusted EBITDA Margin (%) 2021 2022 % vs. Q1 Q1 PY Total Revenue 596 682 +14% 72.8% 72.2% 70.1% Portfolio Services 354 409 +16% Adjusted EBITDA (1) Total Adjusted EBITDA (1) 263 276
Slide 11: Income Statement
Income Statement Income Statement - Q1 2022 Strong Revenue Growth €m Total Revenue (€m) Reported SDI(1) Reported +14% excl. SDI(1) Total Revenue 682 682 682 20 Net Operating Expenses (406) (3) (410) 596 95 19 Total Adjusted EBITDA 276 (3) 273 511 91 11 D&A (124) (18) (142) 79 Retirement of Assets (1
Slide 12: Strong Operating Cash Flow Generation of €249m in Q1 2022
Strong Operating Cash Flow Generation of €249m in Q1 2022 Cash Flow from Operating Activities, Q1 2022, €m 409 (133) (20) 249 (4) (3) Portfolio Customer Change in Tax SDIs & Cash Flow EBITDA Acquisition Working Capital Paid Other Operating EBITDA Activities 12
Slide 13: Net Debt Bridge
Net Debt Bridge Net Debt Bridge, Q1 2022, €m (86) (4) (5) (11) (7,216) (7,172) (186) 249 6.6x 6.6x Total Net Leverage Net Debt CF Operating CF Investing Net Paid Bank, Advisory Lease Other Net Debt Q4 2021 Activities Activities Interest Fees and Other Liability Q1 2022 Financial Items 13
Slide 14: Leverage Overview
Leverage Overview Evolution of L2QA Net Leverage 2021 - Q1 2022 L2QA Net Leverage Senior Secured Net Leverage Total Net Leverage 2021 2022 COVID-19 Normalized Total Net Leverage(1) Q1 Q2 Q3 Q4 Q1 €0.4Bn €0.1Bn €1.7Bn €0.1Bn dividend Arlo dividend NCA Net Debt (€m) 6,929 7,029 7,070 7,172 7,216 recap
Slide 15: Resilient High-quality Growth
Resilient High-quality Growth Strong Customer Intake Strong Portfolio Growth Quality Portfolio EBITDA Growth New Installations (000) Total Customer Portfolio (000) (€m) +9.0% +13.3% +13.3% 4,275 4,402 +16.4% 812 770 3,764 3,347 611 647 2,931 516 2,586 440 2,294 +15.6% 359 1,636 1,477 +18.6% 1,256 20
Slide 16: Solid Track Record of Pricing Ahead of Inflation
Solid Track Record of Pricing Ahead of Inflation Ongoing Investments in Innovation Delivering Solid Track Record of Pricing Ahead of Inflation Award-winning, World Class Innovations YoY Growth, Indexed to 100 165 160 2x 155 3x 150 ARPU (Constant Ccy) 145 Inflation (Weighted by Portfolio Size) Innova
Slide 17: Q&A
Q&A 17
Slide 18: Thank you
Thank you