Resideo Technologies, Inc. · NYSE:REZI
Resideo Technologies — Q4 2021 Earnings Presentation
18 slides from Resideo Technologies's earnings presentation, Feb 15, 2022
Slide 1: Q4 2021 Results Presentation
Q4 2021 RESULTS PRESENTATION February 15, 2022
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains “forward-looking statements.” All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are f
Slide 3: Resideo 2021 Highlights
Resideo 2021 Highlights • Record revenue in 2021, up 15% y/y, with growth and margin expansion at Products & Solutions and ADI • Navigated significant supply chain, logistic and inflationary headwinds • Reduction in corporate costs, down 14% y/y to 4% of total revenue • Further solidified balance sh
Slide 4: Products & Solutions 2021 Highlights
Products & Solutions 2021 Highlights • Record revenue in 2021, up 16% y/y, with strong demand across products and channels • Significant material and freight cost headwinds limiting impact of transformation gains • Investment in foundational systems, process and innovation initiatives driving margin
Slide 5: ADI Global Distribution 2021 Highlights
ADI Global Distribution 2021 Highlights • Record revenue in 2021, up 15% y/y, with strength in commercial and residential categories • Significant expansion in digital transactions, refocusing resources on value-added selling • Gross margin and operating margin expansion while investing in systems a
Slide 6: First Alert – A Leader in Home Safety Products
First Alert – A Leader in Home Safety Products First Alert Overview Key Brands ▪ Announced agreement to acquire First Alert on Feb. 7, 2022 Umbrella brand that provides fire safety products including smoke alarms, CO ▪ A leader in home safety market detectors, and suppression devices ▪ Offers compre
Slide 7: First Alert Transaction Highlights
First Alert Transaction Highlights Strategic Rationale Overview Brand and Category Leadership ▪ $593M or approximately $547M net of Purchase expected future tax benefits Price ▪ Represents ~6.4x 2021 adjusted EBITDA multiple (including synergies and tax More Real Estate to Own Inside the Home benefi
Slide 8: Q4 2021 and Full Year 2021 Financial Performance Summary
Q4 2021 and Full Year 2021 Financial Performance Summary ($ in millions, except Q4 2021 Q4 2020 % change Y/Y FY 2021 FY 2020 % change Y/Y per share) Net Revenue 1,454 1,501 -3% 5,846 5,071 +15% P&S Revenue (1) 633 676 -6% 2,468 2,121 +16% ADI Revenue 821 825 -0% 3,378 2,950 +15% Gross Margin 27.2% 2
Slide 9: Resideo Key Financial Trends
Resideo Key Financial Trends $M Revenue -3% Gross Margin -100 Q4 2021 HIGHLIGHTS Y/Y bps $2,000 • Volumes impacted by supply 30% $1,500 constraints as end demand $1,000 20% remains healthy $500 10% • Gross margin expansion at ADI $0 0% offset by lower P&S volumes and Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2
Slide 10: Products & Solutions Financial Trends
Products & Solutions Financial Trends P&S Revenue (1) -6% P&S Gross Margin -390 Q4 2021 HIGHLIGHTS Y/Y bps $M $750 50% • Revenue decline compared with $600 40% strong Q4 20 driven by ongoing $450 30% supply chain challenges $300 20% $150 10% • Strong price increase realization, $0 0% added ~$40M to
Slide 11: ADI Global Distribution Financial Trends
ADI Global Distribution Financial Trends ADI Revenue Flat ADI Gross Margin +160 bps Q4 2021 HIGHLIGHTS $M Y/Y $1,000 20% • Daily Sales Average up 8% y/y, 19% $800 reported sales flat on five fewer 18% $600 17% selling days $400 16% $200 15% • Fire, Access Control and Wire $0 14% remained strong; sup
Slide 12: Balance Sheet and Cash Flow Summary
Balance Sheet and Cash Flow Summary ($ in millions) Q4 2021 Q3 2021 Q4 2020 Cash and cash equivalents 779 686 517 Total debt 1,230 1,232 1,162 Accounts receivable, net 876 932 863 Inventories 740 710 672 Accounts payable 883 905 936 Cash provided by operating activities 112 104 152 Cash capital expe
Slide 13: 2022 Outlook
2022 Outlook ($ in millions) Revenue $1,425 to $1,475 $5,950 to $6,200 Gross margin 27.5% to 28.5% 27.0% to 28.0% GAAP Operating profit $140 to $150 $610 to $650 Corporate costs ~$240 Avg. diluted shares ~149M Stock-based comp ~$50 One-time First Alert transaction D&A ~$95 costs ~$10M Additional ite
Slide 14: Appendix
resideo APPENDIX
Slide 15: Summary Financial Results (Unaudited)
Summary Financial Results (Unaudited) (In millions) (1) Represents Product & Solutions revenue, excluding intersegment revenue of $87 million and $373 million for the three and twelve months ended December 31, 2021 and $97 million and $367 million for the three and twelve months ended December 31, 2
Slide 16: Consolidated Interim Statements of Operations (Unaudited)
Consolidated Interim Statements of Operations (Unaudited) (1) The prior year unaudited Consolidated Interim Statements of Operations were reclassified to present Research and development expenses as a separate line item within the statements. Research and development expenses were formerly included
Slide 17: Consolidated Interim Balance Sheets (Unaudited)
Consolidated Interim Balance Sheets (Unaudited) 16 © 2022 Resideo Technologies, Inc. All Rights Reserved.
Slide 18: Consolidated Interim Statements of Cash Flows (Unaudited)
Consolidated Interim Statements of Cash Flows (Unaudited) 17 © 2022 Resideo Technologies, Inc. All Rights Reserved.