Slide 1: Verisure Midholding AB (publ) Earnings Call Presentation – Q3 2019
Verisure Midholding AB (publ) Earnings Call Presentation – Q3 2019 July 1 - September 30, 2019
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 Q3 2019 – Austin Lally, CEO • Financial review of Q3 2019 – 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: Q3 2019 Performance Highlights
Q3 2019 Performance Highlights Installations Portfolio Portfolio EBITDA +22%* constant FX 21%*actual FX Q3 2019 +154k 3.2m €275m €275m Q3 2018 +128k 2.8m €227m €227m Summary €195m • Continued strong development across the group €162m • Broad-based sales growth, revenues increasing 18% YoY (19% in co
Slide 6: Portfolio up +395k customers YoY to 3.2 million
Portfolio up +395k customers YoY to 3.2 million Net Portfolio Growth (NPG) 3,236 vs Q3 2018 3,131 NPG (000s) +395 +13.9% NPG (% of portfolio) +13.9% 3,028 NPG Acceleration* 21.5% 2,931 2,841 (*) Q3 2019 NPG growth vs. Q3 2018. 2018 2018 2019 2019 2019 Q3 Q4 Q1 Q2 Q3 Number of Customers in portfolio
Slide 7: 154k new customers added in Q3 2019
154k new customers added in Q3 2019 +19.7% 153.7 151.4 19.7% 145.2 17.3% YoY YoY 17.5% YoY 134.7 129.1 128.3 16.2% YoY 15.3% 17.8% YoY YoY 2018 2018 2018 2019 2019 2019 Q2 Q3 Q4 Q1 Q2 Q3 New installations (000s) YoY=Year-over-year growth (growth comparing one period to the same period previous year,
Slide 8: Maintaining excellent customer retention
Maintaining excellent customer retention % LTM 9.5 9.0 8.5 8.0 7.5 7.0 6.5 6.3 6.0 5.5 5.0 2014 2015 2016 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 LTM attrition rate (%) 8
Slide 9: Continued growth in customer profitability
Continued growth in customer profitability ARPU* €41.0 Constant currency Reported currency €12.2 Cost to Serve Q3 2019 growth* growth* (30%) €26.0 ARPU €41.0 +3.1% +2.3% EPC €28.7 +7.2% +6.5% EPC* €28.7 (70%) (*) Growth vs. Q3 2018 Q3 2019 (*) ARPU: Average Revenue Per User per month (*) EPC: Portfo
Slide 10: Key Financial Metrics – Q3 2019
Key Financial Metrics – Q3 2019 2018 2019 (€m) % YoY Q3 Q3 Revenue 404 477 +18% Portfolio Services, +280 bps 227 275 +21% Adjusted EBITDA* 70.2% Total Adjusted EBITDA* 158 197 +25% 67.4% Cash Flows from 138 200 +45% Operating Activities 2018 2019 CapEx, total 123 142 +16% Q3 Q3 Net debt 4,293 4,977
Slide 11: Income Statement – Q3 2019
Income Statement – Q3 2019 +19% constant FX 18% actual FX Reported (€m) SDI* Reported excl. SDI €477m Revenue 477 477 5 €404m 80 Net operating expenses (280) (13) (293) 5 Adjusted EBITDA 197 (13) 184 63 Depreciation and (60) (38) (98) amortisation 337 392 Retirement of assets (19) - (19) Operating p
Slide 12: Cash flow from operating activities – YTD September 2019
Cash flow from operating activities – YTD September 2019 €m 793 800 700 (224) 600 533 28 (37) 500 (27) 400 300 200 100 EBITDA EBITDA Change in Paid SDI & Other Cash Flow Portfolio Customer Working Capital Tax Operating Activities Acquisition Cash flow (€m) 12
Slide 13: Net debt bridge – YTD September 2019
Net debt bridge – YTD September 2019 (127) (30) (4,977) (139) (45) (4,750) 533 (419) Dec CF Operating Investing Net Paid M&A Lease liability Other Sep 2018 Activities Activities Interest (IFRS 16) 2019 Net Debt (€m) Net debt: Q3-2019 includes impact of IFRS 16 (lease liability) of EUR 127 million. E
Slide 14: Leverage
Leverage 8.0x 7.3x 7.2x 7.2x 7.0x 7.0x 7.0x 7.0x 6.8x 6.9x 2018 2019 6.7x 6.7x 6.5x 6.2x 6.2x Q3 Q4 Q1 Q2 Q3 Total 6.0x 5.9x leverage 5.5x SFA Net debt 5.3x 4,293 4,750 4,807 4,858 4,850 (€m)* 5.0x SFA Adjusted EBITDA 645 662 682 707 720 Senior annualized (€m)* 5.0x secured 4.0x leverage Leverage (T
Slide 15: Resilient Quality Growth
Resilient Quality Growth +19.7% +13.9% 615 3,236 516 +12.5% 2,931 +16.8% 440 2,586 2,294 +22.1% 359 2,017 308 1,788 €1,100m 237 265 1,626 +19.0% €891m €760m €630m €522m 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 €441m FY FY FY FY FY FY Q3*4 FY FY FY FY FY FY Q3 €390m Stron
Slide 16: Q&A
Q&A “pp verisure 6 RG Sa Rs
Slide 17: Thank you
Thank you