Lectra SA · EURONEXT:LSS
Lectra SA — 9M 2018 Earnings Presentation
26 slides from Lectra SA's earnings presentation, Oct 31, 2018
Slide 1: Financial Results Q3 & 9M 2018
FINANCIAL RESULTS Q3 & 9M 2018 Daniel Harari, Chairman & CEO Jérôme Viala, Executive Vice President Paris – October 31, 2018
Slide 2: Financial Results Q3 & 9M 2018
Financial Results Q3 & 9M 2018 9M Main Highlights Q3 2018 Results 9M 2018 Results First Industry 4.0 Offers 2018 Outlook 2 Lectra - Financial Results Q3 & 9M 2018
Slide 3: 9M Main Highlights
9M Main Highlights A "wait-and- Negative First launch see" attitude impact of of the new by companies euro Industry 4.0 across all appreciation offers markets 3 Lectra - Financial Results Q3 & 9M 2018
Slide 4: Financial Results Q3 & 9M 2018
Financial Results Q3 & 9M 2018 9M Main Highlights Q3 2018 Results 9M 2018 Results First Industry 4.0 Offers 2018 Outlook Unless stated otherwise, comparisons are ‘like-for-like’ (2018 figures restated at 2017 exchange rates) 4 Lectra - Financial Results Q3 & 9M 2018
Slide 5: Slight Growth in Orders for New Systems
Q3 2018 Results Slight Growth in Orders for New Systems ORDERS FOR NEW SYSTEMS, in millions of euros ORDERS BY PRODUCT LINE, Q3 18 vs. Q3 17 +4% -16% 27.6 11% 26.6 -21% New CAD/CAM and PLM software licenses CAD/CAM equipment and accompanying software Training and consulting Q3 17 Q3 18 Q3 18 conti
Slide 6: Growth in Income and Operating Margin
Q3 2018 Results Growth in Income and Operating Margin In millions of euros REVENUES INCOME FROM OPERATIONS $/€ EXCHANGE RATE At actual exchange rates Like-for-like At actual exchange rates Like-for-like 0% +1% +6% +7% 67.2 67.4 67.2 67.7 11.3 11.3 10.6 10.6 1.17 1.16 15.8% 16.7% 15.8% 16.7% Q3 17 Q3
Slide 7: Financial Results Q3 & 9M 2018
Financial Results Q3 & 9M 2018 9M Main Highlights Q3 2018 Results 9M 2018 Results First Industry 4.0 Offers 2018 Outlook Unless stated otherwise, comparisons are ‘like-for-like’ (2018 figures restated at 2017 exchange rates) 7 Lectra - Financial Results Q3 & 9M 2018
Slide 8: Negative Impact of Euro Appreciation
9M 2018 Results Negative Impact of Euro Appreciation With an average exchange rate of $1.19/€1 over 9M 18, the CONVERSION OF 9M 2018 RESULTS USING 2017 EXCHANGE RATES euro strengthened by 7% against the US dollar and by 3% against the yuan compared to the same period in 2017. In millions of euros
Slide 9: Stability in Orders for New Systems
9M 2018 Results Stability in Orders for New Systems The geopolitical context and the sharp decline in currencies of emerging countries has created a wait-and-see attitude by some customers or a freeze in their investments ORDERS FOR NEW SYSTEMS, in millions of euros 9M 17 9M 18 Change Change At actu
Slide 10: Contrasted Geographical Activity
9M 2018 Results Contrasted Geographical Activity AMERICAS EUROPE ASIA-PACIFIC -12% -8% 35.8 +42% 31.5 30.0 26.4 23.1 17.4 9M 17 9M 18 9M 17 9M 18 9M 17 9M 18 REST OF THE WORLD 7% 7% +7% 19% 9.2 40% 36% 27% 6.2 6.5 9M 17 9M 18 9M 17 9M 18 Figures in millions of euros 34% 30% Orders for new CAD/CAM an
Slide 11: Growth in Orders Mainly in Fashion and Apparel
9M 2018 Results Growth in Orders Mainly in Fashion and Apparel ORDERS FOR NEW SYSTEMS, in millions of euros 91.0 89.2 -18% The very sharp decline in Automotive orders in Q1 (-54%) 6% 4% was mostly caught up with in Q2 and Q3 10% -3% 10% Change Fashion and Apparel, as well as Furniture, were mark
Slide 12: Growth in Revenues and Income from Operations
9M 2018 Results Growth in Revenues and Income from Operations In millions of euros REVENUES INCOME FROM OPERATIONS At actual exchange rates Like-for-like At actual exchange rates Like-for-like +1% +4% 2018 OBJECTIVE -3% +11% 2018 OBJECTIVE 11.5 Growth in revenues Growth in income from 32.2 operation
Slide 13: Strong Increase in Recurring Revenues
9M 2018 Results Strong Increase in Recurring Revenues In millions of euros REVENUES FROM NEW SYSTEMS SALES RECURRING REVENUES At actual exchange rates Like-for-like At actual exchange rates Like-for-like -1% +2% +3% +6% 122.2 114.9 117.9 114.9 90.8 89.7 90.8 92.7 9M 17 9M 18 9M 17 9M 18 9M 17 9M 18
Slide 14: Strong Impact of Currency Fluctuations on Income from Operations
9M 2018 Results Strong Impact of Currency Fluctuations on Income from Operations EVOLUTION OF INCOME FROM OPERATIONS In millions of euros 5.5 0.5 0.1 (2.6) -2.9 +6.2 -3.9 (7.1) 29.1 28.3 +7.2 39.3 37.3 9M 17 Growth in Growth in Increase in gross Increase in fixed Impact of 9M 18 Income from recurrin
Slide 15: A Zero-Debt Company, a Particularly Robust Balance Sheet
9M 2018 Results A Zero-Debt Company, a Particularly Robust Balance Sheet In millions of euros FREE CASH FLOW AND BALANCE SHEET -54% Decrease in free cash flow is primarily due to the change in working capital 161.4 requirement (+€11.8 million in 9M 18 vs. +€3.1 million in 9M 2017). The situation 1
Slide 16: Stock Price Falls by 32%
9M 2018 Results Stock Price Falls by 32% EVOLUTION FROM JANUARY 1, 2018 TO OCTOBER 30, 2018, in euros, closing price 28 High January 8, 2018 €26.00 AT OCTOBER 30, 2018 26 Share : €17.00 Market cap. : €541 million 24 CAC 40 -6% Enterprise Value : €452 million EV/LTM Revenues : 1.6x 22 CAD Mid
Slide 17: Slight Decrease in Trading Volume
9M 2018 Results Slight Decrease in Trading Volume VOLUME TRADED CAPITAL OWNERSHIP2 9M 2017 9M 2018 83% 17% Shares traded on Euronext and other trading platforms1 Shares: 15.4 million 13.8 million Euronext accounted for 29% of the shares traded in the first nine months of 2018 (48% in 9M 2017) Dani
Slide 18: Financial Results Q3 & 9M 2018
Financial Results Q3 & 9M 2018 9M Main Highlights Q3 2018 Results 9M 2018 Results First Industry 4.0 Offers 2018 Outlook 18 Lectra - Financial Results Q3 & 9M 2018
Slide 19: Reinforced R&D Investments
9M 2018 Results Reinforced R&D Investments EVOLUTION OF R&D INVESTMENTS In millions of euros 9M 18 net R&D costs1: €17.2 million (€14.7 million in 9M 2017) +15% 365 people (21% of workforce) involved in the design and development of the offer at September 30, 2018 23.8 R&D is not reported on t
Slide 20: Launch of Quick Estimate, the Cloud Application
9M 2018 Results Launch of Quick Estimate, the Cloud Application which Revs Up Product Development Efficiency to Manage Costs Fabric often accounts for as much as 60% to 70% of the cost of a garment. Quick Estimate allows product development teams to calculate fabric requirements instantly from the
Slide 21: Launch of Quick Nest, the Cloud Application
9M 2018 Results Launch of Quick Nest, the Cloud Application which Provides Easy Access to Automatic Marker Making Quick Nest can be accessed through Diamino, Lectra’s marker- making solution. During the production development stages, Quick Nest users will be able to process more detailed markers f
Slide 22: Lectra Launches its First Cutting Room 4.0 for Furniture
9M 2018 Results Lectra Launches its First Cutting Room 4.0 Dedicated to Made-to-Order Production of Upholstered Furniture The embodiment of Lectra’s new strategy, this avant-garde offer leverages Industry 4.0 principles to provide greater agility, throughput, cost efficiency and, in particular, sc
Slide 23: Innovations Endorsed by Lectra's Customers
9M 2018 Results Innovations Endorsed by Lectra’s Customers Judger KUKA Home China China Modaris, Vector DesignConcept, Versalis Gruppo Mastrotto Moroso Italy Italy Versalis DesignConcept, Versalis, Vector Find out more testimonials on lectra.com 23 Lectra - Financial Results Q3 & 9M 2018
Slide 24: Financial Results Q3 & 9M 2018
Financial Results Q3 & 9M 2018 9M Main Highlights Q3 2018 Results 9M 2018 Results First Industry 4.0 Offers 2018 Outlook 24 Lectra - Financial Results Q3 & 9M 2018
Slide 25: Confirmation of Growth Objective for Income from Operations
2018 Outlook Confirmation of Growth Objective for Income from Operations Growth in revenues Growth in income from operations before non-recurring items At the beginning of the year, the Company set, for 2018 1 6% 10% 2 7% 15% Change like-for-like The company indicated on July 25 that while revenue g
Slide 26: Upcoming Financial Calendar
Upcoming Financial Calendar YEARLY FINANCIAL RESULTS ANALYST CONFERENCE February 13, 2019 2018 February 12, 2019 26 Lectra - Financial Results Q3 & 9M 2018