Slide 1: Financial Year 2018 Earnings Presentation
Financial Year 2018 Earnings Presentation Richard Mora, CEO | Jonathan Elmer, CFO © Landis+Gyr | May 6, 2019 | FY 2018
Slide 2: Disclaimer
Disclaimer Unaudited Financial Results Landis+Gyr has not finalized its FY 2018 Annual Report (planned for release on May 29, 2019) and Landis+Gyr’s statutory auditor has not completed its audit of the consolidated financial statements (unaudited) for the period. Accordingly, the financial informati
Slide 3: Business performance – FY 2018
Business performance – FY 2018 Group performance in FY 2018 ▪ Order intake reached USD 2,079 million – book-to-bill ratio 1.18 ▪ Committed backlog up 9.0% to USD 2,603 million with all regions contributing to the growth ▪ Net Revenue reached USD 1,765 million (up 3.1% in constant currency) ▪ Adjuste
Slide 4: Recent corporate developments
Recent corporate developments We Energies signed a contract with Landis+Gyr to extend its advanced metering deployment to approximately 508,000 electricity customers, while adding Gridstream® Connect network components to support the expansion. Managed Service contract extended beyond 2030. Ameren M
Slide 5: Americas segment – Key developments in FY 2018
Americas segment – Key developments in FY 2018 North America South America / LATAM ▪ Robust market activity for AMI solutions continuing in the ▪ Continued impact on currencies and order flow from local Investor Owned Utility (IOU) and Public Power markets. economic situation Continued strong order
Slide 6: EMEA segment – Key developments in FY 2018
EMEA segment – Key developments in FY 2018 Key markets Key operational achievements ▪ UK: • Over 20 million smart meters now under contract with Return to profitability driven by: a number of retailers, of which approximately 8 million ▪ Completed introduction of product cost downs (family of have b
Slide 7: Asia Pacific segment – Key developments in FY 2018
Asia Pacific segment – Key developments in FY 2018 Key markets Operational achievements ▪ Australia: “Power of Choice” requires not only a data and ▪ FY 2018 net revenue up 11.2% in constant currency. field service capability but also asset financing: Strong H2 net revenue growth more than offset th
Slide 8: Consolidated results – FY 2018
Consolidated results – FY 2018 USD in millions (except per share amounts) FY 2018 FY 2017 Change Order Intake 2,079.0 1,574.4 32.0% Change in constant currency 34.0% Committed Backlog 2,603.1 2,389.0 9.0% Net Revenue 1,765.2 1,737.8 1.6% Change in constant currency 3.1% Reported EBITDA 251.1 141.3*
Slide 9: Net Revenue year-over-year bridge – FY 2018
Net Revenue year-over-year bridge – FY 2018 Net Revenue year-over-year bridge Americas USD in millions ▪ Two projects reached peak deployment 1800 speed in the US 14.8 1,765.2 1,737.8 25.7 23.6 14.7 ▪ Solid public power and IOU sales offset 1750 1,712.1 Japan declines 1700 EMEA 1650 ▪ SMETS2 transit
Slide 10: Adjusted EBITDA year-over-year bridge – FY 2018
Adjusted EBITDA year-over-year bridge – FY 2018 Adjusted EBITDA year-over-year bridge Adjusted Gross Profit USD in millions ▪ Adj. Gross Profit grew on higher net 18.3 17.6 11.3 237.9 revenues and margin expansion 240 18.0 ▪ Incremental costs associated with 220 212.0 0.3 3.8* supply chain constrain
Slide 11: Impact of supply chain constraints
Impact of supply chain constraints Impact on Adj. USD in millions H1 FY 2018 H2 FY 2018 FY 2018 Comments EBITDA margin Americas 8.0 2.2 10.2 103bps ▪ Supply chain situation improved during EMEA 3.7 2.4 6.1 96bps H2 FY 2018 but expected to remain a challenge in FY 2019 APAC 0.4 0.9 1.3 89bps ▪ Reduce
Slide 12: Adjustments to EBITDA – FY 2018
Adjustments to EBITDA – FY 2018 USD in millions FY 2018 H2 FY 2018 H1 FY 2018 FY 2017* Change Adjustments FY 2018 Reported EBITDA 251.1 136.2 114.9 141.3 77.7% Adjustments ▪ Adjustments in FY 2018 were negative at Restructuring USD 13.2 million driven by Normalized 4.8 2.2 2.6 14.7 (67.5%) Warranty
Slide 13: Cash Flow – FY 2018
Cash Flow – FY 2018 USD in millions FY 2018 FY 2017 Change Comments Net income 122.6 46.8 162.1% Depreciation and amortization 92.8 97.3 (4.7%) ▪ Improved OWC due to strong Net loss (income) from Equity Investments 4.3 - n/a receivable collections just before year- Non-cash gain on disposal of intel
Slide 14: Net debt
Net debt Net debt bridge Comments USD in millions ▪ Net debt decreased to USD 17.2 million 160 ▪ Net debt / Adjusted EBITDA of 0.1x 12.7 123.5 140 0.2x 21.1 0.1x ▪ Dividend payment of USD 68.4 million 120 68.4 made in July 2018 100 ▪ Cash contribution of USD 19.1 million 80 for equity in the intelli
Slide 15: Americas segment – FY 2018
Americas segment – FY 2018 USD in millions FY 2018 FY 2017 Change Comments Committed backlog 1,754.9 1,679.0 4.5% ▪ Committed backlog increase driven by major Net revenue to external customers 986.0 972.2 1.4% contract wins in the US Change in constant currency 2.5% ▪ Excluding Japan, net revenue gr
Slide 16: EMEA segment – FY 2018
EMEA segment – FY 2018 USD in millions FY 2018 FY 2017 Change Comments Committed backlog 754.6 654.1 15.4% ▪ Committed backlog up on the back of further Net revenue to external customers 632.5 627.2 0.8% contract wins in the UK Change in constant currency 2.4% ▪ Strong H2 net revenue performance dri
Slide 17: Adjusted EBITDA margin progress in EMEA
Adjusted EBITDA margin progress in EMEA Adjusted EBITDA as a % of Net Revenues Measures 3. 4. 3.1% 1. Improved Margin Quality Product cost downs on high volume AMI products. 2. 2. Phoenix Savings 1. Project Phoenix was finalised in FY 2018 and generated total annualized savings of USD 21.7 million.
Slide 18: Asia Pacific segment – FY 2018
Asia Pacific segment – FY 2018 USD in millions FY 2018 FY 2017 Change Comments Committed backlog 93.6 55.9 67.4% ▪ Revenue growth driven by higher revenue in Net revenue to external customers 146.7 138.4 6.0% Australia as Power of Choice regulation takes Change in constant currency 11.2% effect Adju
Slide 19: Asia Pacific segment – intelliHUB Joint Venture
Asia Pacific segment – intelliHUB Joint Venture Contributed equity of Comments Contributed equity of AUD 25 million cash and intelliHUB business AUD 226 million cash ▪ intelliHUB acquired Acumen Metering business from Australian retailer Origin Energy for AUD 267 million 20% (USD 205 million) 80% ▪
Slide 20: Guidance FY 2019
Guidance FY 2019 ▪ Revenue growth of approximately 2 - 5% in constant currency ▪ Group Adjusted EBITDA to be between USD 240 million and USD 255 million ▪ Free Cash Flow (excl. M&A) to be between USD 120 million and USD 135 million ▪ Dividend of at least 75% of Free Cash Flow (excl. M&A) ▪ Due to pr
Slide 21: Q&A
Q&A © Landis+Gyr | May 6, 2019 | FY 2018
Slide 22: Key take-aways
Key take-aways ▪ Progress made toward mid-term targets in EMEA and Asia Pacific – Resilient Americas ▪ Strong book-to-bill ratio and committed backlog growth point to strong market position ▪ All key performance metrics (Net Revenues, Adjusted EBITDA and Free Cash Flow excluding M&A) grew year on ye
Slide 23: Dates and contacts
Dates and contacts Important Dates Contact Investor Relations Contact Address Release of Annual Report 2018 Stan March Investor Relations May 29, 2019 SVP Group Communications & Landis+Gyr Group AG Investor Relations Theilerstrasse 1 Annual General Meeting: Phone +1 678 258 1321 CH-6301 Zug June 25,
Slide 24: Consolidated results – H2 FY 2018 vs H2 FY 2017
Consolidated results – H2 FY 2018 vs H2 FY 2017 USD in millions (except per share amounts) H1 FY 2018 H2 FY 2018 H2 FY 2017 Change Comments Order Intake 910.0 1,169.0 753.0 55.2% Committed Backlog 2,347.9 2,603.1 2,389.0 9.0% ▪ All regions contributed to the year-over-year increase in H2 Net revenue
Slide 25: Americas segment – H2 2018 vs. H2 2017
Americas segment – H2 2018 vs. H2 2017 USD in millions H1 FY 2018 H2 FY 2018 H2 FY 2017 Change Comments Committed Backlog 1,522.5 1,754.9 1,679.0 4.5% ▪ Committed backlog increased 4.5% year over Net revenue to external customers 497.5 488.5 497.0 (1.7%) year, as recent customer wins drove growth Ad
Slide 26: EMEA segment – H2 2018 vs. H2 2017
EMEA segment – H2 2018 vs. H2 2017 USD in millions H1 FY 2018 H2 FY 2018 H2 FY 2017 Change Comments Committed Backlog 760.2 754.6 654.1 15.4% ▪ Backlog up 15.4% year-over-year based on Net revenue to external customers 291.6 340.9 306.5 11.2% new UK contract wins Adjusted Gross Profit 81.0 105.9 76.
Slide 27: Asia Pacific segment – H2 2018 vs. H2 2017
Asia Pacific segment – H2 2018 vs. H2 2017 USD in millions H1 FY 2018 H2 FY 2018 H2 FY 2017 Change Comments Committed Backlog 65.1 93.6 55.9 67.3% ▪ Committed backlog up on CLP contract award Net revenue to external customers 63.8 82.9 68.7 20.7% ▪ Net revenue increase of 20.7% (c. 30% in Adjusted G