Slide 1: Verisure Midholding AB (publ) Earnings Call Presentation – Q1 2019
Verisure Midholding AB (publ) Earnings Call Presentation – Q1 2019 January 1 - March 31, 2019
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: Agenda
Agenda • Development in KPIs during Q1 2019 – Austin Lally, CEO • Financial review of Q1 2019 – Vincent Litrico, CFO • Questions & answers 3
Slide 4: Austin Lally, CEO and Vincent Litrico, CFO
Austin Lally Vincent Litrico Chief Executive Officer Chief Financial Officer 4
Slide 5: Q1 2019 Performance Highlights
Q1 2019 Performance Highlights Installations Portfolio Portfolio EBITDA +20%* constant FX 19%* actual FX Q1 2019 +145k 3.0m €254m €254m Q1 2018 +124k 2.7m €213m €213m Summary €183m • Continued strong development across the group €147m • Broad-based sales growth, revenues increasing 19% YoY (20% in c
Slide 6: Portfolio up +362k customers YoY to 3.0 million
Portfolio up +362k customers YoY to 3.0 million Net Portfolio Growth (NPG) 3,028 vs Q1 2018 2,931 NPG (000s) +362 +13.6% 2,841 NPG (% of portfolio) +13.6% NPG Acceleration* +21.4% 2,754 2,666 (*) Q1 2019 NPG growth vs. Q1 2018. 2018 2018 2018 2018 2019 Q1 Q2 Q3 Q4 Q1 Number of Customers in portfolio
Slide 7: 145k new customers added in Q1 2019
145k new customers added in Q1 2019 17.5% 145.2 134.7 129.1 128.3 123.5 115.9 2017 2018 2018 2018 2018 2019 Q4 Q1 Q2 Q3 Q4 Q1 New installations (000s) 7
Slide 8: Maintaining excellent customer retention
Maintaining excellent customer retention % LTM 9.5 9.0 8.5 8.0 7.5 7.0 6.5 6.2 6.0 5.5 5.0 2014 2015 2016 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 LTM attrition rate (%) 8
Slide 9: Continued growth in customer profitability
Continued growth in customer profitability ARPU* €41.5 Constant currency Reported currency Cost to Serve €13.0 Q1 2019 growth* €26.0 growth* (31%) ARPU €41.5 +3.4% +2.6% EPC €28.4 +5.9% +5.1% EPC* €28.4 (69%) (*) Growth vs. Q1 2018 Q1 2019 (*) ARPU: Average Revenue Per User per month (*) EPC: Portfo
Slide 10: Key Financial Metrics - Q1 2019
Key Financial Metrics - Q1 2019 2019 2018 (€m) % YoY Q1 Q1 Revenue 459 384 +19% Portfolio Services, +160 bps 254 213 +19% Adjusted EBITDA* 68.5% Total Adjusted EBITDA* 186 142 +30% 66.9% Cash Flows from 168 138 +21% Operating Activities 2018 2019 CapEx, total 136 114 +19% Q1 Q1 Net debt 4,935 4,195
Slide 11: Income Statement - Q1 2019
Income Statement - Q1 2019 +20% constant FX 19% actual FX Reported (€m) SDI* Reported excl. SDI €459m Revenue 459 459 5 €384m 83 Net operating expenses (273) (6) (279) 5 Adjusted EBITDA 186 (6) 180 61 Depreciation and (53) (38) (91) amortisation 318 370 Retirement of assets (18) - (18) Operating pro
Slide 12: Cash flow from operating activities - Q1 2019
Cash flow from operating activities - Q1 2019 €m 300 254 (69) 200 168 (8) (5) (4) 100 EBITDA EBITDA Change in Paid SDI & Other Cash Flow Portfolio Customer Working Capital Tax Operating Activities Acquisition Cash flow (€m) 12
Slide 13: Net debt bridge - Q1 2019
Net debt bridge - Q1 2019 (129) (10) (4,935) (45) (4,750) 168 (33) (136) Dec CF Operating Investing Net Paid M&A Lease liability Other March 2018 Activities Activities Interest (IFRS 16) 2019 Net Debt (€m) Net debt: Q1-2019 includes impact of IFRS 16 (leases) of EUR 129 million. Excluding impact of
Slide 14: Leverage
Leverage 8.0x 7.3x 7.2x 7.2x 7.0x 7.0x 7.0x 7.0x 6.8x 6.7x 6.5x 2017 2018 2019 6.2x 6.2x Total Q1 Q4 Q1 Q4 Q1 6.0x 5.9x leverage 5.5x 5.3x Net debt (€m)* 3,019 4,200 4,195 4,750 4,807 5.0x Adjusted EBITDA 515 575 586 662 682 annualized (€m)* Senior 5.2x Leverage (Total)* 5.9x 7.3x 7.2x 7.2x 7.0x sec
Slide 15: Resilient Quality Growth
Resilient Quality Growth +17.5% +13.6% 580 3,028 516 +12.5% 2,931 +16.8% 440 2,586 2,294 +20.1% 359 2,017 308 1,788 265 1,626 €1,016m 237 €891m +19.0% €760m €630m €522m 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 €441m €390m FY FY FY FY FY FY Q1*4 FY FY FY FY FY FY Q1 Stron
Slide 16: Q&A
Q&A “ verisure . 2 verisur
Slide 17: Thank you
Thank you