Signify Nv · EURONEXT:LIGHT
Signify Nv — Signify Nv Ord — Q1 2024 Earnings Presentation
20 slides from Signify Nv's earnings presentation, Apr 26, 2024
Slide 1: Q1 2024 results
Q1 2024 results April 26, 2024
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 - Eric Rondolat Need to update photo Financial performance - Željko Kosanović Outlook and closing remarks - Eric Rondolat Q&A 3
Slide 4: Signify reported Q1 sales of EUR 1.5 billion, CSG of -10.1% and adj. EBITA margin of 8.3%
Signify reported Q1 24 sales of EUR 1.5 billion, CSG of -10.1% and an adj. EBITA margin of 8.3% Sales (in EURm) & comparable sales growth (in %) Key observations for Q1 24 CSG -9.1% -10.1% -8.6% -7.8% -7.7% • 126 million connected light points (Q4 23: 124 million) • LED-based sales were 87% of total
Slide 5: The Professional Business reported a CSG of -7.6%
The Professional Business reported a CSG of -7.6% Sales (in EURm) & comparable sales growth (in %) Key observations for Q1 24 CSG -6.3% -7.6% • Comparable sales decline of 7.6% • Weak professional sales in Europe • Good traction in the Americas • Moderate growth in India and emerging markets 1,046 9
Slide 6: The Consumer Business reported a CSG of -5.7%
The Consumer Business reported a CSG of -5.7% Sales (in EURm) & comparable sales growth (in %) Key observations for Q1 24 CSG -15.0% -5.7% • Comparable sales decline of 5.7% • Lower LED lamps and luminaires sales • Sales of Hue and Klite stabilized • Inventory levels of retailers have returned to no
Slide 7: The OEM Business reported a CSG of -7.4%
The OEM Business reported a CSG of -7.4% Sales (in EURm) & comparable sales growth (in %) Key observations for Q1 24 CSG -16.7% -7.4% • Comparable sales decline of 7.4% • Inventory levels of the OEM distributors have returned to normal levels in the majority of the business 114 103 Q1 23 Q1 24 7
Slide 8: The Conventional Business reported a CSG of -34.1%
The Conventional Business reported a CSG of -34.1% Sales (in EURm) & comparable sales growth (in %) Key observations for Q1 24 CSG -8.5% -34.1% • Comparable sales decline of 34.1% • Impact of the fluorescent bans in Europe • Q1 23 benefited from a pre-buying effect prior to the bans 186 119 Q1 23 Q1
Slide 9: Business highlights
Business highlights Professional Consumer Equipping Vienna City Hall Introducing LumXpert, an Expanding the Achieving two test victories in Austria with connected industry-first application collaboration between for Philips Hue and WiZ in Color Kinetics LED lighting for professional installers Phili
Slide 10: Brighter Lives, Better World 2025 – Q1 2024 results
Brighter Lives, Better World 2025 – Q1 2024 results Doubling our positive impact on the environment and society 2019 Q1 2024 2025 Baseline Result Target Carbon reduction over value chain Better World Climate action 0 On track 324 MT against Paris Agreement Circular economy Circular revenues 16% 34%
Slide 11: Content
Content Business and operational performance - Eric Rondolat Need to update photo Financial performance - Željko Kosanović Outlook and closing remarks - Eric Rondolat Q&A 11
Slide 12: Adjusted EBITA margin decreased to 8.3%, as gross margin expansion was offset by under-absorption of fixed costs
Adjusted EBITA margin decreased to 8.3%, as gross margin expansion was offset by under-absorption of fixed costs As % of sales 8.9% -60 bps 8.3% +80 bps -0.2% 0.7% -2.7% 0.8% 2.0% -1.2% Q1 23 Volume Price/Mix COGS Indirect Costs Currency Other Q1 24 12
Slide 13: Working capital decreased to 7.3%, driven by lower inventories and receivables
Working capital decreased to 7.3%, driven by lower inventories and receivables, partly offset by lower payables In EURm / as % of sales 8.3% -100 bps 7.3% 617 -273 0 473 224 -95 Q1 23 Inventories Trade & other receivables Trade & other payables Other working Q1 24 capital items 13
Slide 14: Content
Content Business and operational performance - Eric Rondolat Need to update photo Financial performance - Željko Kosanović Outlook and closing remarks - Eric Rondolat Q&A 14
Slide 15: Outlook
Outlook For 2024, Signify continues to expect: % • An Adjusted EBITA margin improvement of up to 50 bps, including first benefits from the announced restructuring program • Free cash flow generation of 6-7% of sales, including an incremental and non-recurring negative impact around EUR 150m related
Slide 16: Q&A
Q&A Need to update photo
Slide 17: Currency movements had a negative impact on sales and a positive impact on the Adjusted EBITA margin
Currency movements had a negative impact on sales and a positive impact on the Adjusted EBITA margin Q1 24 Sales FX Footprint (% of total) Key observations • Overall currency impact of -2.6% on sales, mainly from USD and CNY depreciation. • Impact of +0.7% on the Adjusted EBITA margin. 17
Slide 18: Net income increased to EUR 44m, mainly due to lower financial expenses and higher EBIT
Net income increased to EUR 44m, mainly due to lower financial expenses and higher EBIT From Adjusted EBITA to net income (in EURm) Key observations Q1 23 Q1 24 1 Non-recurring items by nature and relate to: Adjusted EBITA 149 122 • A one-day FX loss from the devaluation of the Egyptian - Restructur
Slide 19: Free cash flow increased to EUR 80m, mainly due to a stabilization of working capital
Free cash flow increased to EUR 80m, mainly due to a stabilization of working capital following last year’s improvements Free cash flow (in EURm) Key observations Q1 23 Q1 24 • Free cash flow of EUR 80m Income from operations 61 64 • Stabilization of working capital following last Depreciation and a
Slide 20: Signify
Sianty