Lectra SA · EURONEXT:LSS
Lectra SA — 9M 2023 Earnings Presentation
28 slides from Lectra SA's earnings presentation, October 2023
Slide 1: Financial results Q3 and 9M 2023
Financial results Q3 and 9M 2023 Daniel Harari, Chairman & CEO Olivier du Chesnay, Chief Financial Officer
Slide 2: Financial results Q3 and 9M 2023 agenda
FINANCIAL RESULTS Q3 AND 9M 2023 ▪ 9M 2023 main highlights ▪ Evolution of Lectra’s markets ▪ Q3 2023 results ▪ 9M 2023 results ▪ 2023 outlook 2 Lectra - Financial results Q3 and 9M 2023
Slide 3: 9M 2023 main highlights
9M 2023 MAIN HIGHLIGHTS Decline in new Strong improvement Confirmation of the systems orders in a of the fundamentals growing adoption of degraded environment of the Group’s software in SaaS business model mode 3 Lectra - Financial results Q3 and 9M 2023
Slide 4: Persistent challenges in a continuing highly degraded environment
9M 2023 MAIN HIGHLIGHTS Persistent challenges in a continuing highly degraded environment Geopolitical tensions Uncertainty regarding Strong increase in that are global threats the growth of the interest rates / heavily world’s main economies reduced access to loans for companies Persistent high Dec
Slide 5: Strong impact of exchange rate variations
9M 2023 MAIN HIGHLIGHTS Strong impact of exchange rate variations 1.12 With an average exchange rate of $1.09/€1 in Q3, the dollar was 1.09 down 7% compared to Q3 2022 ($1.01/€1) and the yuan declined by 12% against the euro. 1.06 Average $ / 1 € exchange rate With an average exchange rate of $1.08/
Slide 6: Evolution of Lectra's markets
FINANCIAL RESULTS Q3 AND 9M 2023 ▪ 9M 2023 main highlights ▪ Evolution of Lectra’s markets ▪ Q3 2023 results ▪ 9M 2023 results ▪ 2023 outlook 6 Lectra - Financial results Q3 and 9M 2023
Slide 7: Fashion: uneven performances across all market segments
EVOLUTION OF LECTRA’S MARKETS Fashion: uneven performances across all market segments Worldwide Fashion sales CHALLENGES In billions of dollars +7% +8% ▪ Sustainability becoming compulsory 1 766 1 730 1 811 1 497 ▪ Consumers' wait-and-see attitude ▪ Cost-push inflation, especially due to the price i
Slide 8: Fashion: uneven performances across all market segments
EVOLUTION OF LECTRA’S MARKETS Fashion: uneven performances across all market segments Luxury stock prices have fallen, CHALLENGES but growth is still in sight Revenues growth (index 100 at 01/01/23) ▪ Sustainability becoming compulsory ▪ Consumers' wait-and-see attitude ▪ Cost-push inflation, especi
Slide 9: Automotive: recovery remains on track, but uncertainty persists
EVOLUTION OF LECTRA’S MARKETS Automotive: recovery remains on track, but uncertainty persists Worldwide production of light vehicles CHALLENGES In millions +6% +1% ▪ Increased need to create a resilient, circular and 89.0 sustainable supply chain 82.3 77.2 ▪ Pressure on margins 74.6 ▪ Fierce competi
Slide 10: Furniture: a sign of uncertainty after two exceptional years
EVOLUTION OF LECTRA’S MARKETS Furniture : a sign of uncertainty arising after two exceptionnal years Upholstered furniture sales CHALLENGES In billions of dollars +1.7% +21.1% -5.1% -0.2% -1.1% ▪ Need for rationalizing the supply chain ▪ Consumers’ decreased appetite for furniture ▪ Financial diffic
Slide 11: Q3 2023 results
FINANCIAL RESULTS Q3 AND 9M 2023 ▪ 9M 2023 main highlights ▪ Evolution of Lectra’s markets ▪ Q3 2023 results ▪ 9M 2023 results ▪ 2023 outlook Comparisons between 2023 and 2022 are based on 2022 exchange rates unless otherwise stated (“like-for-like”). As the impact of the acquisition of TextileGenes
Slide 12: Q3 2023 orders: decrease in perpetual and equipment, growth in subscriptions
Q3 2023 RESULTS Decrease in orders for perpetual software licenses, equipment and accompanying software, and non-recurring services Growth in orders for new software subscriptions Orders for perpetual software licenses, equipment New software subscription orders and accompanying software, and non-re
Slide 13: Decline in revenues and EBITDA; sharp improvement in gross margin
Q3 2023 RESULTS Decline in revenues and EBITDA before non-recurring items Sharp improvement in gross profit margin In millions of euros Revenues Gross profit EBITDA before non-recurring items -11% -4% -10% 141.2 92.8 29.7 118.7 84.0 23.9 +5.7 pts 65.7% 70.8% 21.0% 20.1% Q3 2022 Q3 2023 Q3 2022 Q3 20
Slide 14: 9M 2023 results
FINANCIAL RESULTS Q3 AND 9M 2023 ▪ 9M 2023 main highlights ▪ Evolution of Lectra’s markets ▪ Q3 2023 results ▪ 9M 2023 results ▪ 2023 outlook Comparisons between 2023 and 2022 are based on 2022 exchange rates unless otherwise stated (“like-for-like”). As the impact of the acquisition of TextileGenes
Slide 15: 9M 2023 orders: decrease in perpetual and equipment, growth in subscriptions
9M 2023 RESULTS Decrease in orders for perpetual software licenses, equipment and accompanying software, and non-recurring services Strong growth in orders for new software subscriptions Orders for perpetual software licenses, equipment and accompanying software, and New software subscription orders
Slide 16: Decline in orders in all regions
9M 2023 RESULTS Decline in orders for perpetual software licenses, equipment and accompanying software, and non-recurring services in all regions AMERICAS EUROPE ASIA-PACIFIC -37% -28% -25% 51.3 46.1 41.4 36.7 28.5 29.7 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 REST OF THE WORLD -16% 10% 11% 2
Slide 17: Decrease in non-recurring revenues, growth in recurring revenues
9M 2023 RESULTS Decrease in non-recurring revenues Growth in recurring revenues Revenues from perpetual software licenses, equipment and Recurring revenues accompanying software, and non-recurring services In millions of euros In millions of euros Recurring contracts Consumables and parts -25% +11%
Slide 18: Confirmation of the growing adoption of software in SaaS mode
9M 2023 RESULTS Confirmation of the growing adoption of software in SaaS mode +1200 customers having subscribed to one or several offers in SaaS mode* These results prove customers’ acceptance of the SaaS model Revenues from software subscriptions In millions of euros ns 0.2% 0.6% 1.6% 2.8% 4.0% 6.1
Slide 19: Decline in revenues and EBITDA before non-recurring items
9M 2023 RESULTS Decline in revenues and EBITDA before non-recurring items In millions of euros Revenues Gross profit Overhead costs -7% -2% +4% 392.1 358.3 259.9 249.6 207.1 212.9 66.3% 69.7% 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 EBITDA Income from operations Net income before non-recurrin
Slide 20: Improvement of the fundamentals of the Group's business model
9M 2023 RESULTS Improvement of the fundamentals of the Group’s business model Evolution of the recurring contracts Evolution of the gross profit margin Evolution of the overhead costs revenues In % of revenues, like-for-like ($1.07/€1) Like-for-like In millions of euros, like-for-like ($1.07/€1) 46.
Slide 21: Evolution of EBITDA before non-recurring items
9M 2023 RESULTS The growth in recurring contracts and the increase in gross profit margins partially compensate the impact of the decrease in new systems revenues and the increase in fixed overhead costs Evolution of EBITDA before non-recurring items In millions of euros Volume effect of recurring r
Slide 22: Strong generation of free cash flow, negative working capital requirement
9M 2023 RESULTS Strong generation of free cash flow, negative working capital requirement In millions of euros 31.6 32.1 Free cash flow before non-recurring items totaled €32.1m (€31.6m in the first nine months of 2022). It is higher than net income (€24.9m). After disbursement of €0.5m in respect o
Slide 23: A particularly robust balance sheet with a positive net cash position
9M 2023 RESULTS A particularly robust balance sheet with a positive net cash position two years after the acquisition of Gerber Balance sheet In millions of euros 452.2 426.2 In the first nine months of the year, the Company paid out: 11.4 130.6 119.3 ▪ 15.2 million euros in respect of the acquisiti
Slide 24: Evolution of the share price
9M 2023 RESULTS Evolution of the share price Evolution from January 1, 2022 to October 24, 2023 AT OCTOBER 24, 2023 In euros, closing price Lectra (closing price) Tech Leaders Index CAC 40 Index MID 60 Index SBF 120 Index ◼ Share price: €22.00 45 ◼ Market cap.: €832m 28th of april 2022 : €40,10 ◼ En
Slide 25: 2023 outlook
FINANCIAL RESULTS Q3 AND 9M 2023 ▪ 9M 2023 main highlights ▪ Evolution of Lectra’s markets ▪ Q3 2023 results ▪ 9M 2023 results ▪ 2023 outlook 25 Lectra - Financial results Q3 and 9M 2023
Slide 26: 2023 financial objectives: revised revenues, confirmed EBITDA
2023 OUTLOOK 2023 financial objectives: revised revenues – confirmation of the EBITDA before non-recurring items In what continues to be a highly degraded environment in macroeconomic and geopolitical terms, where uncertainties are weighing on business investment decisions, orders and revenues from
Slide 27: Upcoming financial calendar
UPCOMING FINANCIAL CALENDAR Quarterly results Analyst conference Annual Shareholders’ Meeting Q4 February 14, 2024 February 15, 2024 April 26, 2024 27 Lectra - Financial results Q3 and 9M 2023
Slide 28: LeCiRaA
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