Signify Nv · EURONEXT:LIGHT
Signify Nv — Signify Nv Ord — Q3 2024 Earnings Presentation
20 slides from Signify Nv's earnings presentation, Oct 25, 2024
Slide 1: Q3 2024 results
Q3 2024 results October 25, 2024
Slide 2: Important information
Important information Forward-looking statements This release contains forward-looking statements that reflect the intentions, beliefs or current expectations and projections of Signify, including statements regarding strategy, estimates of sales growth and future operational results. By their natur
Slide 3: Content
Content Business and operational performance - Eric Rondolat Need to update photo Financial performance and highlights - Željko Kosanović Outlook and closing remarks - Eric Rondolat Q&A 3
Slide 4: Signify reported Q3 sales of EUR 1.5 billion, sequentially improving CSG, and bottom-line resilience
Signify reported Q3 24 sales of EUR 1.5 billion, sequentially improving CSG, and bottom-line resilience Sales (in EURm) & comparable sales growth (in %) Q3 key developments CSG • 139 million connected light points • LED-based sales were 90% of total sales • Comparable sales decline of 5.2% • Continu
Slide 5: The Professional Business reported a CSG of -4.1% and an adj. EBITA margin improvement to 10.8%
The Professional Business reported a CSG of -4.1% and an adj. EBITA margin improvement to 10.8% Sales (in EURm) & comparable sales growth (in %) Q3 key developments CSG • Comparable sales decline of 4.1% • Strong agriculture lighting and connected system sales • Continued weakness in China, Southern
Slide 6: The Consumer Business reported a CSG of -1.8%, while growing in all regions except China
The Consumer Business reported a CSG of -1.8%, while growing in all regions except China Sales (in EURm) & comparable sales growth (in %) Q3 key developments CSG • Comparable sales decline of 1.8% • Consumer business growing in all regions except China • Strong performance of Klite Adjusted EBITA (i
Slide 7: The OEM Business reported a second consecutive quarter of growth at a high profit level
The OEM Business reported a second consecutive quarter of growth at a high profit level Sales (in EURm) & comparable sales growth (in %) Q3 key developments CSG -22.8% 0.2% -23.7% -7.4% 0.1% • Comparable sales of 0.2% • Continued stabilization of distributor inventory levels; particularly strong per
Slide 8: The Conventional Business declined substantially while maintaining strong profitability
The Conventional Business declined substantially while maintaining strong profitability Sales (in EURm) & comparable sales growth (in %) Q3 key developments CSG -21.0% -29.4% -29.6% -34.1% -27.6% • Comparable sales decline of 29.4% • Continued impact from fluorescent bans in Europe • Fluorescent sal
Slide 9: Business highlights
Business highlights Professional Consumer OEM Illuminating the prestigious Enhancing cucumber Launching the improved Powering Secto’s design Atlantis Royal resort, production at Great Lakes second-generation Philips luminaires with Signify Dubai Greenhouses Hue Sync Box LEDs • Partnered with BCL • E
Slide 10: Signify's Brighter Lives, Better World 2025 performance remains on track
Signify’s Brighter Lives, Better World 2025 performance remains on track Doubling our positive impact on the environment and society 2019 Q3 2024 2025 Baseline Result Target Climate action Carbon reduction over value chain Better World 0 On track 324 MT against Paris Agreement Circular economy Circu
Slide 11: Content
Content Business and operational performance - Eric Rondolat Financial performance and highlights - Željko Kosanović Outlook and closing remarks - Eric Rondolat Q&A 11
Slide 12: Double digit profitability supported by gross margin management and acceleration of costs savings
Double digit profitability supported by gross margin management and acceleration of costs savings As % of sales 10.7% -20 bps 10.5% +30 bps 0.1% 0.1% -1.3% 0.5% -2.0% 2.3% Q3 23 Volume Price/Mix COGS Indirect Costs Currency Other Q3 24 12
Slide 13: Substantial working capital improvement driven by lower inventories
Substantial working capital improvement driven by lower inventories In EURm / as % of sales 9.1% -140 bps 7.7% 632 -158 480 -6 -114 124 Q3 23 Inventories Trade & other receivables Trade & other payables Other working Q3 24 capital items 13
Slide 14: Content
Content Business and operational performance - Eric Rondolat Financial performance and highlights - Željko Kosanović Outlook and closing remarks - Eric Rondolat Q&A 14
Slide 15: Outlook
Outlook % Signify continues to expect an Adjusted EBITA margin at the lower end of the 10.0-10.5% range and free cash flow generation of 6-7% of sales. 15
Slide 16: Q&A
Q&A Need to update photo
Slide 17: Currency movements had a negative impact on sales and a positive impact on the Adjusted EBITA margin
Currency movements had a negative impact on sales and a positive impact on the Adjusted EBITA margin Q3 24 Sales FX Footprint (% of total) Q3 key developments • Overall currency impact of -1.5% on sales, spread over a number of currencies. • Impact of +0.1% on the Adjusted EBITA margin. 17
Slide 18: Net income increased to EUR 108m, mainly driven by lower adjusted items, and lower income tax expense
Net income increased to EUR 108m, mainly driven by lower adjusted items, and lower income tax expense From Adjusted EBITA to net income (in EURm) Q3 key developments Q3 23 Q3 24 1 Restructuring charges decreased to EUR 13m Adjusted EBITA 177 161 1 - Restructuring -27 -13 - Acquisition-related charge
Slide 19: Free cash flow decreased to EUR 119m, mainly due to a higher restructuring payout
Free cash flow decreased to EUR 119m, mainly due to a higher restructuring payout and a higher cash outflow from working capital Free cash flow (in EURm) Q3 key developments Q3 23 Q3 24 • Free cash flow of EUR 119m Income from operations 131 137 Depreciation and amortization 66 60 • Higher restructu
Slide 20: Stony
Stony