Slide 1: Q1 2021 results
Q1 2021 results April 30, 2021
Slide 2: Important information
Important information Forward-looking statements This release contains forward-looking statements that reflect the intentions, beliefs or current expectations and projections of Signify, including statements regarding strategy, estimates of sales growth and future operational results. By their natur
Slide 3: Content
Content Business and operational performance by Eric Rondolat Financial performance by Javier van Engelen Outlook & conclusion by Eric Rondolat Q&A 3
Slide 4: Signify achieved Q1 21 comparable sales growth of 3.2%, Adj. EBITA margin of 10.8%
Signify achieved Q1 21 comparable sales growth of 3.2%, an Adj. EBITA margin of 10.8% and a free cash flow of EUR 168m Sales (in EURm) & comparable sales growth (in %) Key observations for Q1 21 • Installed base of connected light points increased from 77m in Q4 20 to 83m in Q1 21 -5.9% 3.2% -8.3% -
Slide 5: Digital Solutions Adj. EBITA margin improved by 230 bps
Digital Solutions Adj. EBITA margin improved by 230 bps, mainly driven by gross margin and cost management Sales (in EURm) & comparable sales growth (in %) Key observations for Q1 21 • LED-based sales accounted for 92% of total sales • Nominal sales increase of 24.1% as a result of the -1.8% -22.4%
Slide 6: Digital Solutions highlights
Digital Solutions highlights Validating effectiveness of Helping North American ice Expanding eco-friendly Providing safe & secure UV-C lighting on rinks switch to sustainable fish growth to Yellowtail connectivity to guests of disinfecting the air lighting with NHL fish with aquaculture LED World F
Slide 7: Digital Products delivered a CSG of 15.7% and Adj. EBITA margin of 14.2%
Digital Products delivered a CSG of 15.7% and an Adj. EBITA margin of 14.2%, driven by the consumer segment Sales (in EURm) & comparable sales growth (in %) Key observations for Q1 21 • CSG increased by 15.7% 2.5% 15.7% -2.0% • Continued strong growth in the consumer segment -14.8% -21.1% for both c
Slide 8: Digital Products highlights
Digital Products highlights Offering additional layer Providing consumers with Addressing new interior Expanding Constant of protection to more broader range of Philips trend with deep recessed Voltage Driver range with consumers around globe Hue products & accessories downlight range in China Digit
Slide 9: Conventional Products delivered an Adj. EBITA margin of 20.6%
Conventional Products delivered an Adj. EBITA margin of 20.6%, helped by lower CSG decline Sales (in EURm) & comparable sales growth (in %) Key observations for Q1 21 • CSG decreased by 6.1% • Continued strong traction in consumer and horticulture segments -17.8% -6.1% -11.0% -11.6% -25.2% 257 227 2
Slide 10: Brighter Lives, Better World 2025
Brighter Lives, Better World 2025 Q1 2021 results Doubling our positive impact on the environment and society 2019 Q1 2021 2025 Baseline Result Target Carbon reduction over value chain Better World Climate action 0 18 MT 340 MT against Paris Agreement Circular economy Circular revenues 16% 19% 32% F
Slide 11: Content
Content Business and operational performance by Eric Rondolat Financial performance by Javier van Engelen Outlook & conclusion by Eric Rondolat Q&A 11
Slide 12: Adj. EBITA growth and margin improvement driven by higher volume and COGS improvements
Adj. EBITA growth and margin improvement driven by higher volume and COGS improvements In EURm / as % of sales 7.9% +290 bps 10.8% 172 17 21 -4 -3 -8 36 112 Q1 20 Volume / Mix Price CoGS Indirect Costs Currency Scope / Other Q1 21 12
Slide 13: Continued structural improvements across all working capital levers
Continued structural improvements across all working capital levers In EURm / as % of sales 6.1%1 470 -73 -99 3.5% -111 236 48 Q1 20 Inventories Trade & other Trade & other payables Other working Q1 21 receivables capital items 13 1Includes sales of both Cooper Lighting and Klite on a 12-month pro-f
Slide 14: Reduction of leverage ratio from 1.7x in Q4 to 1.4x in Q1
Reduction of leverage ratio from 1.7x in Q4 to 1.4x in Q1, driven by solid free cash flow generation of EUR 168m In EURm 1,810 1,275 -162 1,141 -30 16 -10 22 -3 33 FCF: EUR +168m Net debt Net debt EBITDA Change in Net capex Change in Interest & Tax Other Other1 Net debt end of Q1 20 end of Q4 20 wor
Slide 15: Content
Content Business and operational performance by Eric Rondolat Financial performance by Javier van Engelen Outlook & conclusion by Eric Rondolat Q&A 15
Slide 16: Economic recovery plans around the globe
Economic recovery plans around the globe Green and digital initiatives EU Green Deal American Jobs Plan • European Green Deal agreed with EUR 1.8 • American Jobs Plan announced with USD 2.3 trillion for green growth and economic trillion infrastructure spending 2022-2031 recovery 2021-2027 • Congres
Slide 17: Outlook 2021
Outlook 2021 • Economic recovery, easing of lockdowns and stimulus packages to drive an upswing in demand for our professional portfolio in H2 2021 • Component shortages to impact supply chain in H1 2021 and to a lesser extent in H2 2021 % • Signify expects comparable sales growth between 3% and 6%
Slide 18: Q&A
Q&A 18
Slide 19: Currency movements had a negative impact on sales and Adjusted EBITA
Currency movements had a negative impact on sales and Adjusted EBITA Q1 21 Sales FX Footprint (% of total) Key observations • Currency movements negatively impacted sales and Adjusted EBITA Other Currencies, EUR, 28% • Sales impact of -6.4%, mainly from US dollar 30% depreciation. • Adjusted EBITA i
Slide 20: Net income increased by EUR 33m to EUR 60m
Net income increased by EUR 33m to EUR 60m, mainly driven by higher operating profitability From Adjusted EBITA to net income (in EURm) Key observations Q1 20 Q1 21 Adjusted EBITA 112 172 - Restructuring -13 -47 1 - Acquisition related charges -18 -14 1 Related to Cooper Lighting and Klite 2 - Other
Slide 21: Free Cash Flow of EUR 168m
Free Cash Flow of EUR 168m Free cash flow (in EURm) Key observations Q1 20 Q1 21 • Free cash flow of EUR 168m versus EUR 112m last year Income from operations 43 85 • Reflects higher income from operations and a lower Depreciation and amortization 78 77 albeit continued inflow from working capital A
Slide 22: Sianty
Sianty