Slide 1: Verisure Midholding AB (publ) Earnings Call Presentation Q4 2021
Verisure Midholding AB (publ) Earnings Call Presentation | Q4 2021 February 23rd, 2022
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: Today's Presenters
Today´s Presenters Austin Lally Vincent Litrico Chief Executive Officer Chief Financial Officer 3
Slide 4: Agenda
Agenda • Key Developments • Financial Review • Questions & Answers 4
Slide 5: Performance Highlights
Performance Highlights Key Highlights Key Operating and Financial Metrics • Continued strong operational and financial performance in Q4 2021 2019 Q4 2020 Q4 2021 Q4 New +161k +199k +195k Installations • Customer Portfolio continued to grow strongly and is now over 4.2 million, which represents a gr
Slide 6: Customer Portfolio up +511k in 2021 and Now Over 4.2 Million Customers
Customer Portfolio up +511k in 2021 and Now Over 4.2 Million Customers Continuous Strong Customer Portfolio Growth Customer Portfolio (000) 4,275 +13.6% (+511k) 4,146 4,020 3,884 3,764 2020 2021 2021 2021 2021 Q4 Q1 Q2 Q3 Q4 QoQ Growth +141 +120 +136 +126 +129 (000) 6
Slide 7: Continuous Strong Customer Intake
Continuous Strong Customer Intake 195k New Customers Added in Q4 2021 770k New Customers Added in 2021 New Installations (000) New Installations (000) 2020 2021 +19% 770 211 647 198 199 195 186 190 142 95 Q1 Q2 Q3 Q4 2020 2021 7
Slide 8: Maintaining Low Attrition
Maintaining Low Attrition LTM Attrition Rate (%) 9.5 9.0 8.5 8.0 7.5 7.0 6.4% 6.5 6.0 5.5 5.0 2014 2015 2016 2017 2018 2019 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 8
Slide 9: Strong Unit Economics
Strong Unit Economics ARPU(1) €42.4 €42.4 Cost to Serve €12.4 €11.7 €26.0 (28%) (29%) Q4 2021 Growth(3) FY 2021 Growth(3) ARPU €42.4 +2.3% €42.4 +2.8% EPC(2) €30.1 €30.6 (71%) (72%) EPC €30.1 +0.1% €30.6 +3.0% Q4 FY 2021 2021 Note: (1) ARPU: Average Revenue Per User per month; (2) EPC: Portfolio EBI
Slide 10: Key Financial Metrics
Key Financial Metrics Strong Financial Metrics Sustained High Portfolio Services Profitability €m Portfolio Services Adj. EBITDA Margin (%) 2020 2021 % vs. Q4 Q4 PY Total Revenues 582 653 +12% Portfolio Services 72.5% 70.9% 333 380 +14% Adjusted EBITDA (1) Total Adjusted EBITDA (1) 257 251 (2%) CF f
Slide 11: Income Statement
Income Statement Income Statement Summary - Q4 2021 Strong Revenue Growth €m Total Revenues (€m) Reported SDI(1) Reported +12% excl. SDI(1) Total Revenues 653 653 653 582 24 Net Operating Expenses (401) (7) (409) 92 22 Total Adjusted EBITDA 251 (7) 244 101 D&A (103) (18) (121) Retirement of Assets (
Slide 12: Strong Operating Cash Flow Generation of €817m in 2021
Strong Operating Cash Flow Generation of €817m in 2021 Cash Flow from Operating Activities, Dec 2021 YTD, €m 1,477 (421) (106) 817 (62) (72) Portfolio Customer Change in Tax SDI & Cash Flow EBITDA Acquisition Working Capital Paid Other Operating EBITDA Activities 12
Slide 13: Increase in Net Debt Following Jan-21 Refinancing
Increase in Net Debt Following Jan-21 Refinancing Net Debt Bridge, Dec 2021, €m (1,704) (99) (51) (7,172) (5,108) (263) (764) 817 Total Net 5.1x 6.6x Leverage Net Debt CF Operating CF Investing Net Paid Paid Bank, Advisory Other Net Debt Dec 2020 Activities Activities Interest Distribution Fees and
Slide 14: Leverage Overview
Leverage Overview Evolution of L2QA Net Leverage 2020 - 2021 L2QA Net Leverage Senior Secured Net Leverage Total Net Leverage 2020 2021 COVID-19 Normalized Total Net Leverage(1) Post IFRS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 €0.4Bn €0.1Bn €1.7Bn €0.1Bn dividend Arlo dividend NCA Net Debt (€m) 5,110 5,137 5,046 5
Slide 15: Resilient High-quality Growth
Resilient High-quality Growth Strong Customer Intake Strong Portfolio Growth Quality Portfolio EBITDA Growth New Installations (000) Total Customer Portfolio (000) (€m) +19.0% +13.6% 770 4,275 +16.0% +13.3% 647 3,764 611 3,347 516 2,931 440 2,586 2,294 +16.8% 359 2,017 308 1,477 1,256 +20.2% 1,075 2
Slide 16: Q&A
Q&A 16
Slide 17: Thank you
Thank you