Lacroix Group Sa · EURONEXT:LACR
Lacroix Group Sa — FY2023 Earnings Presentation
35 slides from Lacroix Group Sa's earnings presentation, Apr 3, 2024
Slide 1: Investors Presentation Results 2023
APRIL 3RD, 2024 INVESTORS PRESENTATION Results 2023
Slide 2: Agenda
01 PRESENTATION AGENDA 02 RESULTS 2023 LEADERSHIP 2025 03 & GUIDANCE 2024 04 UPCOMING EVENTS Vincent BEDOUIN Nicolas BEDOUIN Chief Executive Officer Chief Operating Officer & Executive Vice-President Finance 05 QUESTIONS & ANSWERS This document is proprietary and confidential to LACROIX and may not
Slide 3: Presentation: At the Heart of LACROIX
01 PRESENTATION AT THE HEART OF LACROIX This document is proprietary and confidential to LACROIX and may not be reproduced without prior authorization.
Slide 4: Key Figures
KEY FIGURES An international, tech & industrial midcap €761M Revenue in 2023 EMEA ~ 75% REVENUE NORTH AMERICA ~ 25% REVENUE APAC ~5 100 TEAMS LOCATIONS Collaborators in 2023 FRANCE POLAND USA SINGAPORE GERMANY TUNISIA MEXICO CHINA SPAIN BELGIUM Located in 13 countries ITALY SAUDI ARABIA MOROCCO 1/3
Slide 5: Our Vision
OUR VISION AT LACROIX, WE BELIEVE TECHNOLOGY SHOULD CONTRIBUTE TO SIMPLE, SUSTAINABLE AND SAFER ENVIRONMENTS.
Slide 6: Our Mission
OUR MISSION Contribute to the development of more sustainable living ecosystems through useful, robust & secure connected technologies WE DESIGN & MANUFACTURE WE PROVIDE Electronic equipment Industrial IoT solutions to contribute to the to serve environmental & automotive, avionics, societal challen
Slide 7: Our Ambition
OUR AMBITION CUSTOMERS Become a Electronics activity global leader For technology & industry leaders in industrial IoT solutions Deliver end-to-end services from design to manufacturing Scale-up, midcap & listed companies & electronic of electronic equipment €562M equipment for critical applications
Slide 8: Electronics Activity
ELECTRONICS ACTIVITY Our customized IIoT & electronic equipment services from design to manufacturing Automotive Industrial HBAS Avionics & Healthcare (Home & building automation) defense Powertrain & e-mobility Machine/robot controls Automation & Connectivity Cabin & passenger comfort Medical imag
Slide 9: City Activity
CITY ACTIVITY Our turnkey offer of equipment & solutions to optimize & secure smart road infrastructures Street lighting Traffic management & C-ITS Passenger information (cooperative intelligent system transport systems) This document is proprietary and confidential to LACROIX and may not be reprodu
Slide 10: Environment Activity
ENVIRONMENT ACTIVITY Our turnkey offer of equipment & solutions to optimize & secure water & energy infrastructures Water & wastewater Smart Grids HVAC (Heating, Ventilation, & Air Conditioning) This document is proprietary and confidential to LACROIX and may not be reproduced without prior authoriz
Slide 11: Our Commitments to Useful & Sustainable Electronics
OUR 4 COMMITMENTS TO USEFUL & SUSTAINABLE ELECTRONICS Grow positive Design eco-efficient Run sustainable Commit to our impact business solutions operations people & act locally Certifications Focus on positive Eco-design Reduce our Care & share 63/100 impact solutions our products greenhouse gas emi
Slide 12: Results 2023
02 RESULTS 2023 GROWTH TARGET EXCEEDED - RESILIENT RESULTS This document is proprietary and confidential to LACROIX and may not be reproduced without prior authorization.
Slide 13: A challenging exercise in a contrasted environment
A challenging exercise in a contrasted environment _ GROUP ELEC : ▪ Good control of FCF and gearing reduction at 59% ▪ Difficult year for ELEC North America ending ▪ Communication and deployment acceleration of our with an inventory impact of -3.1€M on Group CSR strategy recurring EBITDA ▪ Demonstra
Slide 14: Solid growth, resilient results, strong financial structure
An additional year of continuous growth and resiliency in our results SOLID RESILIENT A STRONG GROWTH RESULTS FINANCIAL STRUCTURE ▪ Recurring EBITDA : 41,6M€ ▪ Shareholder’s equity of 190 ▪ 7,5% revenue growth vs ▪ 5,5% of revenue M€ 2022 6,5% excl. ELEC NA ▪ Gearing improvement of ▪ Performance dri
Slide 15: Revenue over €760M
REVENUE OVER €760M +7,5% vs Y-1 Revenue by quarter, €M 2021 2022 2023 761 708 Revenue (€M) 165 163 (FST) +17,9% +11,4% +0,9% +1,3% (FST) 501 194.8 193.0 191.3 193.8 173.2 178.1 179.7 165.1 127.6 127.2 136.3 110.4 545 596 FY2021 FY2022 FY2023 Q1 Q2 Q3 Q4 Excl. NA -2,7 €M vs Y-1 Inventory • 7,5% growt
Slide 16: Electronics Activity: A contrasted year between EMEA and NA
ELECTRONICS ACTIVITY A CONTRASTED YEAR BETWEEN EMEA AND NA +7,6% vs Y-1 Revenue by quarter, €M 2021 2022 2023 562 522 +24,9% +13,0% -3,2% -1,9% 165 163 Revenue (€M) (FST) (FST) 152.5 142.4 135.4 131.1 138.7 136.1 322 122.1 126.0 86.6 81.1 83.2 70.5 359 397 FY2021 FY2022 FY2023 Q1 Q2 Q3 Q4 -7,3 €M vs
Slide 17: City Activity
CITY ACTIVITY HIGH MOMENTUM IN STREET LIGHTING AND ROAD SIGNS BUS +6,7% vs Y-1 Revenue by quarter, €M 2021 2022 2023 116 110 109 +3,5% -0,5% +8,2% +16,4% Revenue (€M) 33.3 33.3 34.4 28.9 28.0 30.3 28.4 23.8 23.4 23.3 23.9 24.4 FY2021 FY2022 FY2023 Q1 Q2 Q3 Q4 +3,5 €M vs Y-1 • 6,7% organic growth vs
Slide 18: Environment Activity
ENVIRONMENT ACTIVITY EXCELLENT RESULTS DRIVEN BY SMART GRIDS AND INTERNATIONAL PROJECTS +8,1% vs Y-1 Revenue by quarter, €M 2021 2022 2023 83 76 +5,9% +10,2% +19,9% 70 -3,4% Revenue (€M) 23.2 19.6 19.2 20.3 20.1 19.7 19.4 18.9 18.3 17.2 17.2 16.0 FY2021 FY2022 FY2023 Q1 Q2 Q3 Q4 +1,4 €M vs Y-1 • 8,1
Slide 19: Simplified Income Statement
SIMPLIFIED INCOME STATEMENT December 31 December 31 In €M 2023 2022 Variation 12 months 12 months • Recurring EBITDA decrease of 6,1% Revenue 761,2 707,8 +7,5% • Operating income of €3.8 million impacted by significant non-recurring items • Exceptional amortization of the Customer List of Recurring
Slide 20: Adjusted Income Statement
ADJUSTED INCOME STATEMENT 31st Adjusted elements for a more 31st december 31st 31st In €M december 2022 december december standardized performance reading 2023 Non GAAP 2023 2022 Non GAAP Revenue 761,2 707,8 761,2 707,8 Recurring EBITDA 41,6 44,3 41,6 44,3 Current operating profit : Adjustment of In
Slide 21: Simplified Balance Sheet
SIMPLIFIED BALANCE SHEET December 31 December 31 In €M 2023 2022 • Total non-current assets decreasing Non-current assets 232,3 252,1 due to decrease of intangible assets (customer List) and accounting Current assets (excluding cash) 332,3 316,7 treatment of the sell of the BU Signaling Cash and cas
Slide 22: Cash Flow Statement
CASH FLOW STATEMENT December 31 December 31 In €M 2022 2021 12 months 12 months Consolidated net income (2,8) 11,7 • Large Free Cash Flow improvement at Cash flows from operations 27,4 36,8 €23,2M, benefiting from the beginning of an improvement in NWC Changes in working capital relating to 8,9 (35,
Slide 23: A Strong Financial Structure
A STRONG FINANCIAL STRUCTURE Shareholders’ equity, €M Gearing ratio 200 194 190 1.4 180 • Stable shareholders' equity 1.2 150 • Decrease in net debt vs 1.0 2022 108 0.8 • Gearing ratio (net debt / 103 0.72 99 100 shareholder’s equity) of 100 94 86 59% maintained largely 0.54 0.6 below the 80% ceilin
Slide 24: Leadership 2025 & Guidance 2024
03 LEADERSHIP 2025 & GUIDANCE 2024 PROGRESS & FUTURE CHALLENGES This document is proprietary and confidential to LACROIX and may not be reproduced without prior authorization.
Slide 25: We keep progressing on our strategic pillars
WE KEEP PROGRESSING ON OUR 5 STRATEGIC PILLARS Strategic Technological geographical M&A Industry 4.0 Transition to leadership positions end-to-end solutions Strenghtening our innovation Develop our 3 activities in Strengthen the Improve digitalization, Start a transition to higher and R&D capabiliti
Slide 26: LACROIX 2030 Impact Targets
LACROIX 2030 IMPACT TARGETS Impact indicators Today 2030 TARGETS GROW POSITIVE Share of impact business 1 IMPACT BUSINESS in revenue 61% 80% DESIGN 2 ECO-EFFICIENT Share of new LACROIX products eco-designed 25% 100% SOLUTIONS in 2025 GHG emissions scopes 1&2 (vs 2021) 11.7 KtCO2e -42% Ongoing defini
Slide 27: Significative gaps with initial hypothesis
SIGNIFICATIVE GAPS WITH INITIAL HYPOTHESIS launched in 2023 for Gaps with initial hypothesis Mitigation Plan impact in 2024 Extraordinary difficult year for our North American Business explained by the concomitance of several 1. Change of local leadership / Turnaround plan factors: 2. Price Increase
Slide 28: We expect 2024 revenue >710M€ at constant perimeter
WE EXPECT 2024 REVENUE >710M€ AT CONSTANT PERIMETER AND RECURRING EBITDA MARGIN BETWEEN 5,5%-6,5% ✓ Flat revenue at consolidated level: 761 >710 708 702 • 2-digits growth for our high profitability businesses 59 ENVIRONMENT (Water, HVAC, Smart Grids) and CITY (Street Lighting) offset by: • ELEC : Co
Slide 29: LACROIX in 2025 – Revenue & Recurring EBITDA
LACROIX IN 2025 – REVENUE & RECURRING EBITDA Key figures INITIAL PLAN CAGR 2019-25 TARGET As reported Organic ~ €800m MAINTAINED LACROIX GROUP +11% +6% Revenue MODULO: 1 ADDITIONAL M&A EVOLUTION OF AUTO/HBAS DEMAND 9% EBITDA margin remains our ultimate target however realistically it seems hardly ac
Slide 30: LACROIX in 2025 – All other objectives confirmed
LACROIX IN 2025 – ALL OTHER OBJECTIVES CONFIRMED Key figures <0.8 >5% Share of revenue Gearing ratio invested in R&D >75% >70% Internal satisfaction Revenue out of France ~ 30% Profits distributed This document is proprietary and confidential to LACROIX and may not be reproduced without prior author
Slide 31: Dividends
DIVIDENDS This document is proprietary and confidential to LACROIX and may not be reproduced without prior authorization.
Slide 32: Dividends: €0,70 per share
DIVIDENDS: €0,70 PER SHARE Proposal to the Shareholders' Meeting of May 17, 2024 of a dividend of 0.70 euros per share, i.e. a distribution rate of 32%**. 1 50% 0.9 0.9 45% 0.8 0.8 0.85 0.7 40% 0.72 0.7 35% 0.6 0.68 0.6 33% 32% 33% 30% 32%* 32%** 0.5 28% 25% 0.4 23% 0.4 20% 0.3 17% 15% 0.2 10% 0.1 5
Slide 33: Upcoming Events
04 UPCOMING EVENTS This document is proprietary and confidential to LACROIX and may not be reproduced without prior authorization.
Slide 34: Next Appointments
NEXT APPOINTMENTS • May 13, 2024: Revenue Q1 2024 • July 23, 2024: Revenue Q2 and H1 2024 • September 30, 2024: Half-year results 2024 • November 7, 2024 : Revenue Q3 2024 Ce document est confidentiel, et est la propriété de LACROIX, il ne peut être reproduit sans autorisation préalable. 34
Slide 35: Questions / Answers
05 QUESTIONS / ANSWERS This document is proprietary and confidential to LACROIX, it may not be reproduced without prior authorization. 35