Vusion · EURONEXT:VU
Vusion — VusionGroup — H1 2024 Earnings Presentation
29 slides from Vusion's earnings presentation, Sep 12, 2024
Slide 1: H1 2024 Results Conference Call Presentation
H1 2024 Results Conference Call Presentation September 12, 2024
Slide 2: Agenda
Agenda Introduction Olivier Gernandt – Investor Relations Officer H1 Business & ESG Highlights Thierry Gadou – Chairman & CEO H1 Financial Highlights Thierry Lemaitre – CFO Outlook Thierry Gadou – Chairman & CEO Q&A Thierry Gadou & Thierry Lemaitre Proprietary and confidential. Do not distribute. 2
Slide 3: Disclaimer
Disclaimer This presentation contains unaudited financial data. The aggregates presented are those normally used and communicated on markets by VusionGroup. These statements include financial projections, synergies, estimates and their underlying assumptions, statements regarding plans, expectations
Slide 4: H1 2024 Results Conference Call
Technologies for Positive Commerce Strong sales & new orders • H1 revenue of €431m on an adjusted basis1 (+13%) Improvement of profitability and cash flow • VCM of €121m on an adjusted basis1 (+31%) ; VCM margin of 28.0% (up +3.8pts) H1 2024 Results • Adjusted EBITDA of €59m (+36% YoY); Conference C
Slide 5: H1 Business & ESG Highlights
\lusionGroup H1 Business \ & ESG Highlights
Slide 6: Order entries
Order entries €m Semester Rolling 12m 1146 • In Q1 VusionGroup reached for 1088 the first time €1Bn order entries 700 714 1000 over 12 months 600 • In Q2 Vusion signed its first €1B 818 800 PO with Walmart 500 677 685 518 • OE growth in H1 driven by 400 432 600 America but also positive in 385 300 E
Slide 7: Walmart Rollout Now in a Very Intensive Phase
Walmart Rollout Now in a Very Intensive Phase • 500 stores by year-end and 2,300 stores by 2026 • Roll-out acceleration will continue in 2025 • Software revenues growing rapidly as well • Foxconn appointed as new EMS to support the acceleration Program is on track, new solutions and use cases alread
Slide 8: Growth Acceleration in North America
Growth Acceleration in North America 12,500 # of stores in the US Signed Installed 8,500 4,000 2022 2023 H1 2024 Proprietary and confidential. Do not distribute. 8
Slide 9: Many EMEA wins in existing and new verticals in H1 '24
Many EMEA wins in existing and new verticals in H1 ’24 Home Pharmacy Gas stations Sport improvement Travel Retail Cosmetics / H&B Consumer Electronics Food Proprietary and confidential. Do not distribute. 9
Slide 10: Technologies for Positive Commerce
\Jusion G fou p Technologies for Positive Commerce
Slide 11: Reinventing the Shelf Edge with EdgeSense
Reinventing the Shelf Edge with EdgeSense™ Proprietary and confidential. Do not distribute. 11
Slide 12: EdgeSense connects customers, associates and products
EdgeSense connects customers, associates and products Intelligent Rail providing Battery-less / Radio-less Pick-to-Light / Stock-to-Light Connectivity (BLE) and Power (replaceable Displays Guiding associates in stores to improve long-lasting battery) their efficiency Powered and connected through th
Slide 13: Carbon Emissions SBTI
2030 Scope 3 carbon intensity -50% Scope 1&2 emissions -40% Carbon Emissions SBTI Targets Proprietary and confidential. Do not distribute. 13
Slide 14: ESG Plan: Creating shared value
ESG Plan Creating shared value 01 02 03 Roadmap for Positive Retail Great Place to Work Long-term Stakeholder Value Contribute to retail’s Net-Zero target Long-term motivation World class governance standards Develop ultra-low carbon IoT devices Well-being at work Climate change risks mitigation Pro
Slide 15: H1 Financial Highlights
H1 Financial Highlights H1 2024 Results September 12, 2024
Slide 16: Strong Profitability Improvement and Free Cash-Flow Generation
VusionGroup – H1 2024 Results Strong Profitability Improvement and Free Cash-Flow Generation Raising FY EBITDA Margin Guidance KEY FINANCIAL HIGHLIGHTS > H1 revenue of €431m on an adjusted basis1 (+13%). Rest. H1 2024 H1 2024 H1 H1 2024 / > VCM of €121m on an In €m* H1 2024 Walmart Adj / H1 Adjusted
Slide 17: Strong Profitability Improvement
VusionGroup – H1 2024 Results Strong Profitability Improvement Rest. Walmart H1 2024 H1 2024 Adj / H1 2024 / In €m* H1 2024 Contract adjusted1 H1 2023 H1 2023 H1 2023 Revenues 408.9 (22.2) 431.1 380.7 13% 7% • +13% revenue growth Variable Costs Margin 98.3 (22.2) 120.5 92.2 31% 7% % of revenues 24.0
Slide 18: VCM improvement drives the EBITDA margin up
VCM improvement drives the EBITDA margin up In % of sales Strong improvement in the VCM margin driven by innovation and 0 -1.5 3.8 scale economies 13.7 EUR/USD exch. rate flat in H1 2024 11.4 vs. H1 2023 Opex ratio increase due to recruitments in Support functions and in the US with higher cost / FT
Slide 19: Capex within target range (5% to 7% of sales)
Capex within target range (5% to 7% of sales) In €m * H1 2024 H1 2023 - R&D & IT 15.6 44.9 o/w EdgeSense Project (HW) 30.8 - Industrial 59.4 1.6 o/w customer-financed manufacturing lines 54.5 - Others 2.9 1.6 TOTAL CAPEX 77.9 48.0 o/w customer-financed CAPEX 54.5 Self-financed CAPEX 23.4 48.0 % adj.
Slide 20: Strong cash-flow generation in H1
Before IFRS 16 Strong cash-flow generation in H1 In €m * H1 2024 H1 2023 EBITDA 59.1 43.5 IFRS16 (1.8) (1.5) 3rd semester in a row showing a Capex (77.9) (48.0) positive Free Cash-Flow with Change in Working Capital 225.9 128.8 €203m Free Cash-Flow generated Corporate Tax (2.3) (0.9) in H1 2024. Fre
Slide 21: Strong Free Cash-Flow even without down payments and customer-financed Capex
Strong Free Cash-Flow even without down payments and customer-financed Capex H1 2024 Excluding down payments and customer-financed Capex Adjusted EBITDA 59.1 59.1 IFRS 16 (1.8) (1.8) Capex (77.9) excl. €54.5m manufacturing lines in H1'24 (23.4) Change in Working Capital 225.9 Sales H1'23 x 13% (Rev.
Slide 22: FY 2024 Outlook
\lusionGroup FY 2024 Outlook
Slide 23: €1bn adjusted revenue target; Growth in recurring VAS activity
€1bn adjusted revenue target Growth in recurring VAS activity Adj. Revenue Recurring Non-Recurring (€m) 1,000+ ~120 109 800 50-60% ~60 67 EMEA ~80% 40-50% +40% ~60 42 AMERICAS & APAC ~20% FY 2023 FY 2024e 2023 2024 Adjusted sales incorporates IFRS standards before adjusting for certain non-cash IFRS
Slide 24: 2024 Outlook (continued)
2024 Outlook (continued) • Continued robust new orders growth throughout 2024 • Profitability improvement with adjusted EBITDA margin1 growing by +100 to +200 bps • Continued positive cash flow generation Proprietary and confidential. Do not distribute. 24
Slide 25: H1 2024 Results Conference Call
Technologies for Positive Commerce Strong sales & new orders • H1 revenue of €431m on an adjusted basis1 (+13%) Improvement of profitability and cash flow • VCM of €121m on an adjusted basis1 (+31%) ; VCM margin of 28.0% (up +3.8pts) H1 2024 Results • Adjusted EBITDA of €59m (+36% YoY); Conference C
Slide 26: Appendix
\lusionGroup Appendix
Slide 27: Main business flows within the Group
Main business flows within the Group • In order to optimize inventories and the relationship with our EMS, VusionGroup SA, the parent company, purchases centrally all ESLs from the EMS • VusionGroup SA then resells these ESLs to the affiliates which invoice external customers à VusionGroup SA has an
Slide 28: Focus on the Austrian entity
• The Austrian entity gained a very large German head- Focus on the Austrian entity quartered customer in 2020. This customer has been invoiced in USD to mitigate the EUR/USD fx effect at the Group level since the beginning of its roll-out several years Austrian entity P&L 2020/ 2021 / 2022 / 2023 /
Slide 29: Note on the IFRS Adjustments related to the new Walmart contract
Note on the IFRS Adjustments related to the new Walmart contract: • Two IFRS adjustments related to the Walmart contract impact 2023 financial disclosures: — 1. On June 2, 2023, at their Annual General Meeting, the Group’s shareholders approved a grant to Walmart of 1,761,200 for stock warrants on t