Verisure Plc · OMXSTO:VSURE
Verisure — Verisure Midholding — Q2 2020 Earnings Presentation
17 slides from Verisure's earnings presentation, Jun 30, 2020
Slide 1: Verisure Midholding AB (publ) Earnings Call Presentation – Q2 2020
Verisure Midholding AB (publ) Earnings Call Presentation – Q2 2020 April 1 – June 30, 2020
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: Agenda
Agenda • Development in KPIs during Q2 2020 – Austin Lally, CEO • Financial review of Q2 2020 – Vincent Litrico, CFO • Questions & answers 3
Slide 4: Austin Lally, CEO and Vincent Litrico, CFO
Austin Lally Vincent Litrico Chief Executive Officer Chief Financial Officer 4
Slide 5: Q2 2020 Performance Highlights
Q2 2020 Performance Highlights Installations Portfolio Portfolio EBITDA Q2 2020 +95k 3.5m €309m +19% constant FX +17% actual FX Q2 2019 +151k 3.1m €265m +129k 2.8m €219m €309m Q2 2018 €265m Summary • Continued strong operational and financial performance in Q2 2020. €219m • Customer portfolio grew t
Slide 6: Portfolio up +337k vs. PY and close to 3.5 million customers
Portfolio up +337k vs. PY and close to 3.5 million customers Net Portfolio Growth (NPG) 3,468 3,430 +10.8% 3,347 vs Q2 2019 NPG (000s) +337 3,236 NPG (% of portfolio) +10.8% 3,131 2019 2019 2019 2020 2020 Q2 Q3 Q4 Q1 Q2 Number of Customers in portfolio (000s) PY=Prior Year 6
Slide 7: Added 95k new customers in Q2 2020. June new sales back to 2019 level
Added 95k new customers in the Q2 2020. June new sales back to 2019 level. Quarterly – New installations (000s) Monthly – New installations (000s) 161 151 154 145 +19.7% vs. PY 142 +17.3% +17.5% vs. PY +16.2% vs. PY -2.3% vs. PY vs. PY 95 -37.0% vs. PY 2019 2020 2019 2020 2019 2020 2019 2020 2019 20
Slide 8: Maintaining low attrition
Maintaining low attrition % LTM 9.5 9.0 8.5 8.0 7.5 7.0 6.46 6.5 6.0 5.5 5.0 2014 2015 2016 2017 2018 2019 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 LTM attrition rate (%) 8
Slide 9: Continued strong growth in customer profitability
Continued strong growth in customer profitability ARPU* €40.9 €10.9 Constant currency Reported currency Cost to Serve Q2 2020 growth* growth* (27%) €26.0 ARPU €40.9 +1.0% -1.0% EPC €30.0 +6.5% +4.5% EPC* €30.0 (73%) (*) Growth vs. Q2 2019 Q2 2020 (*) ARPU: Average Revenue Per User per month (*) EPC:
Slide 10: Key Financial Metrics – Q2 2020
Key Financial Metrics – Q2 2020 2019 2020 (€m) % vs. PY Q2 Q2 Revenue 467 489 +5% Portfolio Services, +390 bps 265 309 +17% Adjusted EBITDA* 73.4% Total Adjusted EBITDA* 188 244 +30% 69.5% Cash Flows from 160 188 +17% Operating Activities 2019 2020 CapEx, total 142 105 -26% Q2 Q2 Net debt 4,988 5,13
Slide 11: Income Statement – Q2 2020
Income Statement – Q2 2020 +7% constant FX +5% actual FX Reported (€m) SDI* Reported excl. SDI €489m €467m 10 Revenue 489 489 5 59 Net operating expenses (245) (13) (257) 81 Adjusted EBITDA 244 (13) 232 Depreciation and (68) (40) (107) amortisation 381 421 Retirement of assets (24) - (24) Operating
Slide 12: Strong operating cash flow, €374 million YTD June 2020, up +13% vs. PY
Strong operating cash flow, €374 million YTD June 2020, up + 13% vs. PY €m 700 604 600 (159) 500 400 374 (33) (10) (28) 300 200 100 EBITDA EBITDA Change in Paid SDI & Other Cash Flow Portfolio Customer Working Capital Tax Operating Activities Acquisition Cash flow (€m) PY=Prior Year 12
Slide 13: Net debt bridge – YTD June 2020
Net debt bridge – YTD June 2020 (5,126) 374 (2) (3) (19) (5,137) (111) (250) Dec CF Operating Investing Net Paid M&A Lease liability Other June 2019 Activities Activities Interest (IFRS 16) 2020 Net Debt (€m) Net debt: Q2-2020 includes impact of IFRS 16 (lease liability) of EUR 137 million. Excludin
Slide 14: Leverage
Leverage 8.0x 7.3x 7.2x 7.2x 7.0x 7.0x 7.0x 7.0x 6.8x 6.9x 6.8x 6.7x 2017 2018 2019 2020 6.7x 6.7x 6.5x Q4 Q4 Q2 Q4 Q1 Q2 6.2x 6.2x 6.1x Total 6.0x 5.9x leverage 5.5x SFA Net debt (€m)* 4,200 4,750 4,858 4,992 4,973 5,002 5.3x SFA Adjusted EBITDA annualized 575 662 707 734 741 824 5.0x (€m)* Leverag
Slide 15: Resilient high quality growth
Resilient high quality growth +10.8% 611 3,468 552 3,347 +17.1% 516 +12.8% 2,931 440 2,586 2,294 +18.9% 359 2,017 308 1,788 €1,235m 265 1,626 237 €1,075m +19.6% €891m €760m €630m 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020 €522m FY FY FY FY FY FY FY LTM FY FY FY F
Slide 16: Q&A
Q&A . “ verisure
Slide 17: Thank you
Thank you