Landis+gyr Group Ag · SIX:LAND

Landis+gyr — FY2017 Earnings Presentation

33 slides from Landis+gyr's earnings presentation, Jun 5, 2018

  1. Slide 1: FY2017 Earnings presentation

    FY2017 Earnings presentation © Landis+Gyr | June 5, 2018

  2. Slide 2: Important notices

    Important notices This presentation includes forward-looking information and statements including statements concerning the outlook for our businesses. These statements are based on current expectations, estimates and projections about the factors that may affect our future performance, including gl

  3. Slide 3: Leadership in a growing market

    Leadership in a growing market Forecasted growth rates Americas1 EMEA1 Asia Pacific2 Electricity comm. Meters (USD bn) Electricity & gas comm. Meters (USD bn) Electricity & gas comm. Meters (USD bn) 2.7 1.7 1.7 1.2 0.9 0.3 Dec-17 Dec-21 Dec-17 Dec-21 Dec-17 Dec-21 Sources: 1 IHS Markit 2017 2 Frost

  4. Slide 4: Recent corporate developments

    Recent corporate developments Wisconsin Public Service Company selected Landis+Gyr to provide a multi-purpose Advanced Metering Infrastructure network platform for advanced metering and grid modernization. The project includes deployment of Landis+Gyr’s RF mesh network technology, 450,000 smart elec

  5. Slide 5: Business highlights – Fiscal Year 2017

    Business highlights – Fiscal Year 2017 Group: Overall Group performance for FY2017:  Sales growth year over year of 4.7% (2.6% in constant currency)  Adjusted EBITDA stable at USD 212.0 million  Free cash flow reached USD 87.5 million, up USD 34.4 million compared to FY2016  Key Group guidance p

  6. Slide 6: Key regional developments – Fiscal Year 2017

    Key regional developments – Fiscal Year 2017 Americas EMEA Asia Pacific  Good order intake and overall  Major AMI deployments in the UK,  Major AMI deployments with CLP, financial performance driven by US the Netherlands and France continue Hong Kong on track AMI business with strong momentum  D

  7. Slide 7: Consolidated results – Full-Year to March 2018 (FY2017)

    Consolidated results – Full-Year to March 2018 (FY2017) USD in millions (except per share amounts) FY2017 FY2016 Change  At constant currencies, order Order Intake 1'574.4 1'325.5 18.8% intake grew by 16.0% and Change in constant currency 16.0% revenue by 2.6% Committed Backlog 2'389.0 2'491.4 (4.1

  8. Slide 8: Net revenue year-over-year bridge – FY2017

    Net revenue year-over-year bridge – FY2017 Net revenue year-over-year bridge: Americas EMEA USD in millions Driven by Industry wide strong US AMI supply chain 2000 sales offsetting an shortages limited 1800 34.5 1,737.8 expected decline growth in AMI 38.5 10.5 (4.9) 1,659.2 in Japan revenues deploym

  9. Slide 9: Adjusted EBITDA year-over-year bridge – FY2017

    Adjusted EBITDA year-over-year bridge – FY2017 Adjusted EBITDA y-o-y bridge: Adjusted USD in millions Gross Profit decline resulted from 212.0 30.4 1.2 212.0 mix changes in 200 Americas & delays in cost optimized product (31.6) launches in EMEA. 150 Improvement to EBITDA Adjusted 100 Operating Expen

  10. Slide 10: Adjustments to EBITDA – FY2017

    Adjustments to EBITDA – FY2017 USD in millions H1 FY2017 H2 FY2017 FY2017 FY2016 Change Adjustments FY2017 EBITDA 43.1 102.0 145.1 150.8 (3.8%)  Adjustments in H2 FY2017 reduced to USD 1.3 Adjustments million, net  Restructuring – Costs mainly associated with the Restructuring Charges 8.1 6.5 14.7

  11. Slide 11: Cash flow – FY2017

    Cash flow – FY2017 USD in millions FY2017 FY2016 Change Net income (loss) 46.8 (62.1) n/a Operating Working Capital management improved by USD Depreciation, amortization and FY2016 14.1 million despite higher 97.3 156.2 (37.7%) goodwill impairment sales Change in OWC, net 14.1 (10.0) n/a Other (33.6

  12. Slide 12: Net debt & refinancing

    Net debt & refinancing USD in millions ratio  Cash generation of USD 87 million reduced net debt to USD 140 127 0.7 40 million, 0.2 times Adjusted 120 0.6 EBITDA 0.6  Bridge loan repaid as new USD 100 0.5 240 million multi-currency line 80 0.4 of credit facility put in place 60 0.3 40  Dividend p

  13. Slide 13: Americas segment – FY2017

    Americas segment – FY2017 USD in millions FY2017 FY2016 Change  Continued strong revenue in core US AMI market offset some expected declines Net revenue to external customers 972.2 931.2 4.4% in Japan Change in constant currency 4.1%  Important agreement signed to help TEPCO Adjusted Gross Profit

  14. Slide 14: EMEA segment – FY2017

    EMEA segment – FY2017 USD in millions FY2017 FY2016 Change  Revenue growth impacted by supply chain shortages in Q4 Net revenue to external customers 627.2 587.8 6.7%  Adjusted Gross Profit impacted by delay to Change in constant currency 1.7% product cost reductions Adjusted Gross Profit 155.9 17

  15. Slide 15: EMEA segment – Comments on FY2017 results

    EMEA segment – Comments on FY2017 results Key market developments EMEA results  UK: In total over 18 million smart meters under contract, of which  EMEAs revenue impacted by industry wide supply approximately 5 million have been deployed chain constraints which reduced H2 sales by about  Smart me

  16. Slide 16: EMEA segment restructuring – update on Project Phoenix

    EMEA segment restructuring – update on Project Phoenix Adjusted operating expense year-over-year bridge: USD in millions 175 173.1 15.8 170 10.1 164.7 165 160 2.7 155 150 145 140 Adj. Operating Expense 2016 Phoenix savings Other impacts / higher FX effects Adj. Operating Expense 2017 Group re-charge

  17. Slide 17: EMEA segment restructuring – update on Project Lightfoot

    EMEA segment restructuring – update on Project Lightfoot Manufacturing restructuring activities EMEA restructuring program  UK: Successfully initiated restructuring of UK  Annual savings of USD 25 million across EMEA (previous manufacturing sites. target USD 20 million) expected from restructuring

  18. Slide 18: Asia Pacific segment – FY2017

    Asia Pacific segment – FY2017 USD in millions FY2017 FY2016 Change  Revenue declined as expected market growth did not materialize with slow take-up of “Power Net revenue to external customers 138.4 140.2 (1.3%) of Choice” regulatory change in Australia Change in constant currency (3.4%)  Adjusted

  19. Slide 19: Asia Pacific – Joint venture to acquire Acumen from Origin

    Asia Pacific – Joint venture to acquire Acumen from Origin Transaction Impact / Outlook  Joint Venture (PEP: 80% / Landis+Gyr: 20%) buys Origin’s  Important milestone in turnaround of Asia Pacific business Acumen business for AUD 267 million  Expected Landis+Gyr meter sales to the JV of over USD

  20. Slide 20: Outlook

    Outlook FY2018 Outlook:  Landis+Gyr expects FY2018 sales growth of approximately 3 - 6%.  Group Adjusted EBITDA expected to be in the range of USD 222 million and USD 232 million.  Free cash flow1 between USD 95 million and USD 105 million.  Given some of the supply chain challenges currently be

  21. Slide 21: Dates and contacts

    Dates and contacts Important Dates Contact Address Contact Investor Relations Annual General Assembly: Investor Relations Stan March June 28, 2018, Landis+Gyr Group AG SVP Group Communications & Lorzensaal, Cham, Switzerland Theilerstrasse 1 Investor Relations CH-6301 Zug Phone +1 678 258 1321 Ex-Di

  22. Slide 22: Appendix

    Appendix © Landis+Gyr | June 5, 2018

  23. Slide 23: Landis+Gyr – a global leader

    Landis+Gyr – a global leader Global leader in Smart Metering and Smart Grid solutions 120 Years Over 80 million of service to Serving Nearly USD 1 billion Headquartered in smart grid connected customers 3,500+ of self-funded Switzerland intelligent devices as a trusted utilities R&D investment with

  24. Slide 24: Best-in-class portfolio of end-to-end solutions

    Best-in-class portfolio of end-to-end solutions Broad solutions offering… 11% 71% 18% Standalone devices Connected intelligent devices Software & services Non-AMI Industrial, Advanced load Distributed Heat/cold Portfolio electricity Standalone gas Residential AMI commercial & Smart gas mgmt Energy O

  25. Slide 25: Consolidated results – H2 FY2017 vs. H2 FY2016

    Consolidated results – H2 FY2017 vs. H2 FY2016 USD in millions (except per share amounts) H2 FY2017 H2 FY2016 Change  Improvement in order intake of Order Intake 753.0 688.4 9.4% 5.4% year over year (at Change in constant currency 5.4% constant currency) Committed Backlog 2'389.0 2'491.4 (4.1%) Net

  26. Slide 26: Net revenue year-over-year bridge: H2 FY2017 vs. H2 FY2016

    Net revenue year-over-year bridge: H2 FY2017 vs. H2 FY2016 Net revenue year-over-year bridge: in USD millions Americas EMEA Stronger US Weak top line in H2 1000 revenue offset FY2017 mainly due expected declines to industry wide 900 871.8 14.3 (35.8) 872.2 in Japan supply chain issues (10.5) 32.4 80

  27. Slide 27: Adjusted EBITDA bridge: H2 FY2017 vs. H2 FY2016

    Adjusted EBITDA year-over-year bridge: H2 FY2017 vs. H2 FY2016 Adjusted EBITDA y-o-y bridge: Adjusted Gross Profit in USD millions decline resulted from mix changes in 140 Americas & delays 115.7 (37.9) in cost optimized 120 24.6 0.9 103.3 product launches in 100 EMEA 80 Improvement to EBITDA Adjust

  28. Slide 28: Cash flow – H2 FY2017 vs. H2 FY2016

    Cash flow – H2 FY2017 vs. H2 FY2016 in USD millions H2 FY2017 H2 FY2016 Change Change in Net income (loss) 41.5 (49.0) n/a Operating Depreciation, amortization and FY2016 48.7 108.3 (55.0%) Working Capital goodwill impairment declined by USD Change in OWC, net 4.5 7.7 (41.3%) 3.2 million Other (9.2)

  29. Slide 29: Americas segment – H2 FY2017 vs. H2 FY2016

    Americas segment – H2 FY2017 vs. H2 FY2016 USD in millions H2 FY2017 H2 FY2016 Change  Continued strong revenue in core US AMI Net revenue to external customers 497.0 481.7 3.2% market offset some expected declines in Japan Change in constant currency 3.0%  Adjusted Gross Profit was lower than H2

  30. Slide 30: EMEA segment – H2 FY2017 vs. H2 FY2016

    EMEA segment – H2 FY2017 vs. H2 FY2016 USD in millions H2 FY2017 H2 FY2016 Change  Top line in H2 FY2017 impacted mainly due to Net revenue to external customers 306.5 313.0 (2.1%) supply chain constraints Change in constant currency (10.5%)  Adjusted Gross Profit impacted by delay to product cost

  31. Slide 31: Asia Pacific segment – H2 FY2017 vs. H2 FY2016

    Asia Pacific segment – H2 FY2017 vs. H2 FY2016 USD in millions H2 FY2017 H2 FY2016 Change  Market delays in Australia as Power of Choice Net revenue to external customers 68.7 77.1 (10.9%) regulatory change comes into effect lead to lower revenue Change in constant currency (13.3%)  Adjusted Gross

  32. Slide 32: Adjustments to EBITDA – H2 FY2017 vs. H2 FY2016

    Adjustments to EBITDA – H2 FY2017 vs. H2 FY2016 Adjustments H2 FY2017 USD in millions H2 FY2017 H2 FY2016 Change Adjustments in H2 FY2017 reduced to USD 1.3 million, EBITDA 102.0 83.7 21.9% net: Adjustments  Restructuring – Costs associated with the Restructuring Charges 6.5 2.6 150.0% implementati

  33. Slide 33: Impact of US tax reform - update

    Impact of US tax reform - update US tax reform impacts  H2 FY2017 Statements of Operations release was USD 17 million The enactment of U.S. tax reform resulted in a benefit of USD 22 million from the re-measurement of deferred tax balances as of March 31, 2017 to the new U.S. Federal tax rate, as p

Landis+Gyr Group — FY2017 Earnings Presentation on 6ix