Slide 1: Earnings Call Presentation – Q4 2019
Verisure Midholding AB (publ) Earnings Call Presentation – Q4 2019 October 1 – December 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 Q4 2019 – Austin Lally, CEO • Financial review of Q4 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: Q4 2019 Performance Highlights
Q4 2019 Performance Highlights Installations Portfolio Portfolio EBITDA Q4 2019 +161k 3.3m €282m +22%* constant FX * actual FX +21% Q4 2018 +135k 2.9m €232m €282m Summary • Continued strong development across the group €232m • Broad-based sales growth, revenues up +15% in the quarter (+16% in €196m
Slide 6: Robust growth in the customer portfolio – up 416k vs. PY to now over 3.3 million
Robust growth in the customer portfolio – up 416k vs. PY to now over 3.3 million Net Portfolio Growth (NPG) 3,347 vs Q4 2018 3,236 NPG (000s) +416 +14.2% 3,131 NPG (% of portfolio) +14.2% NPG Acceleration* +22.9% 3,028 2,931 (*) Q4 2019 NPG growth vs. Q4 2018. 2018 20189 2019 2019 2019 Q4 Q1 Q2 Q3 Q
Slide 7: Continued strong development in new customer intake, 161k added in the quarter
Continued strong development in new customer intake, 161k added in the quarter +19.6% 161.0 153.7 +19.6% 151.4 vs. PY 145.2 +19.7% +17.3% vs. PY vs. PY +17.5% 134.7 vs. PY 128.3 +16.2% +17.8% vs. PY vs. PY 2018 2018 2019 2019 2019 2019 Q3 Q4 Q1 Q2 Q3 Q4 New installations (000s) PY=Prior Year 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 Q2 Q3 Q4 LTM attrition rate (%) 8
Slide 9: Continued growth in customer profitability
Continued growth in customer profitability ARPU* €41.1 Constant currency Reported currency Cost to Serve €12.6 Q4 2019 €26.0 growth* growth* (31%) ARPU €41.1 +3.2% +2.3% EPC €28.5 +7.3% +6.4% EPC* €28.5 (69%) (*) Growth vs. Q4 2018 Q4 2019 (*) ARPU: Average Revenue Per User per month (*) EPC: Portfo
Slide 10: Key Financial Metrics – Q4 2019
Key Financial Metrics – Q4 2019 2018 2019 (€m) % vs. PY Q4 Q4 Revenue 432 498 +15% Portfolio Services, +270 bps 232 282 +21% Adjusted EBITDA* 69.4% Total Adjusted EBITDA* 164 191 +16% 66.7% Cash Flows from 157 169 +7% Operating Activities 2018 2019 CapEx, total 145 173 +19% Q4 Q4 Net debt 4,750 5,12
Slide 11: Income Statement – Q4 2019
Income Statement – Q4 2019 +16% constant FX +15% actual FX Reported (€m) SDI* Reported excl. SDI €498m Revenue 498 498 7 €432m 85 Net operating expenses (307) (30) (337) 3 81 Adjusted EBITDA 191 (30) 161 Depreciation and (66) (38) (105) amortisation 348 406 Retirement of assets (20) - (20) Operating
Slide 12: Strong operating cash flow for the year, € 701 million for FY 2019
Strong operating cash flow for the year, € 701 million for FY 2019 €m 1,100 1075 1,000 900 (316) 800 701 700 47 (49) (56) 600 500 400 300 200 100 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 – YTD December 2019
Net debt bridge – YTD December 2019 (134) (46) (5,126) (93) (209) (4,750) 701 (595) Dec CF Operating Investing Net Paid M&A Lease liability Other Dec 2018 Activities Activities Interest (IFRS 16) 2019 Net Debt (€m) Net debt: Q4-2019 includes impact of IFRS 16 (lease liability) of EUR 134 million. Ex
Slide 14: Leverage
Leverage 8.0x 7.3x 7.2x 7.2x 7.0x 7.0x 7.0x 7.0x 6.8x 6.9x 6.8x 2017 2018 2019 6.7x 6.7x 6.5x 6.2x 6.2x Q4 Q4 Q1 Q2 Q3 Q4 Total 6.0x 5.9x leverage 5.5x SFA Net debt 5.3x 4,200 4,750 4,807 4,858 4,850 4,992 (€m)* 5.0x SFA Adjusted EBITDA 575 662 682 707 720 734 annualized (€m)* 5.1x Senior secured 4.
Slide 15: Resilient Quality Growth
Resilient Quality Growth +18.6% +14.2% 611 3,347 +16.8% 516 +12.5% 2,931 440 2,586 359 2,294 +21.6% 308 2,017 265 1,626 1,788 €1,075m 237 +19.0% €891m €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 FY FY FY FY FY FY FY FY Strong
Slide 16: Q&A
Q&A . “) verisure
Slide 17: Thank you
Thank you