Verisure Plc · OMXSTO:VSURE
Verisure — Verisure Midholding — Q4 2022 Earnings Presentation
16 slides from Verisure's earnings presentation, Feb 22, 2023
Slide 1: Verisure Midholding AB (publ) Earnings Call Presentation Q4 2022
Verisure Midholding AB (publ) Earnings Call Presentation | Q4 2022 February 22nd, 2023
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 • Q&A 4
Slide 5: Performance Highlights
Performance Highlights Key Highlights Key Operating and Financial Metrics • Continued strong operational and financial performance in Q4 2022 2020 Q4 2021 Q4 2022 Q4 New • Customer Portfolio continued to grow strongly (+11.2% vs. Q4 2021), +199k +195k +196k Installations and is now over 4.7 million
Slide 6: Continuous Strong Customer Portfolio Growth
Continuous Strong Customer Portfolio Growth Customer Portfolio up +477k vs. Prior Year and Now Over 4.7 Million Customers Customer Portfolio (000) 4,752 +11.2% (+477k) 4,645 4,529 4,402 4,275 2021 2022 2022 2022 2022 Q4 Q1 Q2 Q3 Q4 QoQ Growth +129 +127 +127 +116 +107 (000) 6
Slide 7: Continuous Strong Customer Intake
Continuous Strong Customer Intake 196k New Installations in Q4 2022, in line with Prior Year New Installations (000) +0.2% 206 211 203 198 198 199 190 195 196 186 142 95 Q1 Q2 Q3 Q4 2020 2021 2022 7
Slide 8: Sustained Low Attrition
Sustained Low Attrition Attrition Rate (%) 9.5 9.0 8.5 8.0 7.5 7.2 7.0 6.5 6.0 5.5 5.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 LTM Attrition (%) Quarterly Attrition (%) 8
Slide 9: Strong Unit Economics
Strong Unit Economics €42.4 €43.3 ARPU(1) €41.5 €12.4 €12.5 Cost to Serve €11.4 €26.0 (29%) (28%) (29%) Q4 2022 Growth ARPU €43.3 +2.1% EPC(2) €30.1 €30.1 €30.8 (72%) (71%) (71%) EPC €30.8 +2.4% 2020 2021 2022 Q4 Q4 Q4 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. Q4 Q4 PY Total Revenue 653 725 +11% 72.5% 70.9% 71.1% Portfolio Services 380 435 +14% Adjusted EBITDA (1) Total Adjusted EBITDA (1) 251 297
Slide 11: Income Statement
Income Statement Income Statement - Q4 2022 Strong Revenue Growth €m Total Revenue (€m) Reported SDIs(1) Reported +11% excl. SDIs(1) Total Revenue 725 725 725 653 21 Net Operating Expenses (427) (19) (446) 93 582 24 Total Adjusted EBITDA 297 (19) 279 22 92 101 D&A (124) (16) (140) Retirement of Asse
Slide 12: Cash Flow Generation and Change in Net Debt
Cash Flow Generation and Change in Net Debt 2022 Cash Flow Generation and Change in Net Debt, €m 1,694 Attrition replacement (457) (= Cancellations x CPA) Net Portfolio Growth (672) (= (Installations - Cancellations) x CPA] (1,129) (94) (154) (39) (249) (77) (310) (91) (10) (200) (211) Portfolio Cus
Slide 13: Leverage Overview
Leverage Overview Evolution of L2QA Net Leverage 2022 L2QA Net Leverage Senior Secured Net Leverage Total Net Leverage Q1 Q2 Q3 Q4 COVID-19 Normalized Total Net Leverage(1) €0.1Bn €1.7Bn €0.1Bn Arlo dividend NCA Net Debt (€m) 7,216 7,287 7,345 7,383 M&A recap payment 7.5 7.2x 6.9x 6.9x 7.0 6.6x 6.6x
Slide 14: 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) +4.2% +11.2% +13.3% 4,752 +16.4% 802 4,275 770 3,764 611 647 3,347 516 2,931 2,586 +14.7% 440 2,294 359 1,694 1,477 +18.6% 1,256 20
Slide 15: Q&A
Q&A 15
Slide 16: Thank you
Thank you