Slide 1: Q2 2022 results
(S)ignify y i AN Q2 2022 results
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 - Javier van Engelen Outlook & closing remarks - Eric Rondolat Q&A 3
Slide 4: Second quarter 2022 highlights
Second quarter 2022 highlights • 5.1% CSG driven by strong traction in professional segment • Signify’s growth profile improves, fueled by continuing shift towards connected lighting • Nominal sales increase of 14.1% • Adjusted EBITA margin of 9.5% as lower gross margin was partly offset by price in
Slide 5: Signify reported Q2 sales of EUR 1.8 billion, CSG of 5.1% and adj. EBITA margin of 9.5%
Signify reported Q2 22 sales of EUR 1.8 billion, CSG of 5.1% and an adj. EBITA margin of 9.5% Sales (in EURm) & comparable sales growth (in %) Key observations for Q2 22 CSG 14.1% 5.1% -4.8% 4.5% 6.4% • 103 million connected light points (Q1 22: 100 million) • LED-based sales were 84% of total sales
Slide 6: Digital Solutions reported a CSG of 11.6% and an adj. EBITA margin of 9.5%
Digital Solutions reported a CSG of 11.6% and an adj. EBITA margin of 9.5% Sales (in EURm) & comparable sales growth (in %) Key observations for Q2 22 CSG 12.6% 11.6% -7.3% 11.2% 16.9% • Comparable sales growth of 11.6% • Continued strong professional demand across most markets • Nominal sales growt
Slide 7: Digital Solutions highlights
Digital Solutions highlights Installing BrightSites in the Lighting up the Stadio Equipping Bad Dürkheim’s Helping Kwekerij Loos City of Tampere Comunale Piero Torrini in public facilities with UV-C make the switch to full LED Sesto Fiorentino devices horticulture lighting • Together with Edzcom, •
Slide 8: Digital Products reported a CSG of 2.6% and an adj. EBITA margin of 10.6%
Digital Products reported a CSG of 2.6% and an adj. EBITA margin of 10.6% Sales (in EURm) & comparable sales growth (in %) Key observations for Q2 22 CSG 20.4% 2.6% 2.5% 1.6% 0.2% • Comparable sales growth of 2.6% • Solid professional demand in LED Electronics • Unfavorable sales mix 553 598 588 737
Slide 9: Digital Products highlights
Digital Products highlights Expanding the Philips Hue Launching the Ultra Introducing the Ozziet Integrating LED Lamps in portfolio with new Efficiency TLED Class A Ceiling family the MasterConnect system products and features • New products launched, • Extends the Ultra Efficiency • Layered light e
Slide 10: Conventional Products reported a CSG of -13.8% and an adj. EBITA of 15.5%
Conventional Products reported a CSG of -13.8% and an adj. EBITA of 15.5% Sales (in EURm) & comparable sales growth (in %) Key observations for Q2 22 CSG 4.7% -13.8% -13.2% -11.4% -15.1% • Comparable sales decline of 13.8% 213 193 202 219 201 Q2 21 Q2 22 Q3 21 Q4 21 Q1 22 Adjusted EBITA (in EURm & a
Slide 11: Brighter Lives, Better World 2025 - Q2 2022 results
Brighter Lives, Better World 2025 - Q2 2022 results Doubling our positive impact on the environment and society 2019 Q2 2022 2025 Baseline Result Target Carbon reduction over value chain Better World Climate action 0 On track 324 MT against Paris Agreement Circular economy Circular revenues 16% 31%
Slide 12: Successfully completed the acquisitions of Fluence and Pierlite
Successfully completed the acquisitions of Fluence and Pierlite Fluence • Strengthens global Agriculture lighting growth platform • Extends our position in the attractive North American horticulture lighting market • Generated sales of USD 141m from October 2020 to September 2021 • Fluence will oper
Slide 13: Content
Content Business and operational performance - Eric Rondolat Need to update photo Financial performance and highlights - Javier van Engelen Outlook & closing remarks - Eric Rondolat Q&A 13
Slide 14: Adjusted EBITA margin decreased to 9.5%, mostly due to negative currency effect and cost inflation
Adjusted EBITA margin decreased to 9.5%, mostly due to a negative currency effect and cost inflation, while price increases compensated higher input cost In EURm / as % of sales 10.9% -140 bps 9.5% 86 -83 175 174 -2 2 2 EUR +5m -9 2 Q2 21 Volume Mix Price COGS Indirect Costs Currency Other Q2 22 14
Slide 15: Working capital continues to be impacted by higher inventories and receivables
Working capital continues to be impacted by higher inventories due to longer supplier lead times, and higher receivables In EURm / as % of sales 4.0% +650 bps 10.5%1 135 -95 783 -42 515 269 Q2 21 Inventories Trade & other receivables Trade & other payables Other working Q2 22 capital items 15 1Inclu
Slide 16: Leverage ratio slightly increased to 1.7x due to acquisitions and dividend payment
Leverage ratio slightly increased to 1.7x due to acquisitions and the payment of dividend, partly offset by proceeds from the sale of real estate In EURm 1,749 26 183 1,375 1,378 31 297 28 -194 FCF: EUR 135m Net debt Net debt Cash from Gross capex Proceeds Purchase of Dividend Other 1 Net debt end o
Slide 17: Second year of solid growth and double-digit Adjusted EBITA margin in first half
Second year of solid growth and a double-digit Adjusted EBITA margin in the first half of the year, while free cash flow was impacted by longer lead times Sales & comparable sales Adjusted EBITA Free Cash Flow growth (in EURm and % of sales) (in EURm) (in EURm and %) 8.4% 5.8% 10.8% 10.0% 8.5% -19.1
Slide 18: Content
Content Business and operational performance - Eric Rondolat Need to update photo Financial performance and highlights - Javier van Engelen Outlook & closing remarks - Eric Rondolat Q&A 18
Slide 19: Outlook
Outlook • Signify maintains its CSG guidance of 3-6% for the year, driven by continued momentum in the professional segment and its solid order book. % • The company revises its Adjusted EBITA margin guidance for the full year to 11.0- 11.4%, reflecting the lower margin performance in Q2 2022. • Sig
Slide 20: Q&A
Q&A Need to update photo
Slide 21: Currency movements had a positive impact on sales and a negative impact on Adjusted EBITA
Currency movements had a positive impact on sales and a negative impact on Adjusted EBITA Q2 22 Sales FX Footprint (% of total) Key observations • Currency movements negatively impacted Adjusted EBITA and positively impacted Sales • Sales impact of +6.6%, mainly from US dollar appreciation. • Adjust
Slide 22: Net income increased to EUR 248m, mainly driven by sale of non-strategic real estate assets
Net income increased to EUR 248m, mainly driven by the sale of non- strategic real estate assets From Adjusted EBITA to net income (in EURm) Key observations Q2 21 Q2 22 1 Non-recurring by nature and relate to: Adjusted EBITA 175 174 • Net real estate gains - Restructuring -9 -7 • Impairment and oth
Slide 23: Free cash flow of EUR 135m benefited from the sale of real estate
Free cash flow of EUR 135m benefited from the sale of real estate, yet continued to be negatively impacted by working capital Free cash flow (in EURm) Key observations Q2 21 Q2 22 • Free cash flow of EUR 135m Income from operations 106 306 • Positive impact from the disposal of non-strategic Depreci
Slide 24: Sianty
Sianty