Verisure Plc · OMXSTO:VSURE
Verisure — Verisure Midholding — Q3 2021 Earnings Presentation
17 slides from Verisure's earnings presentation, Dec 2, 2021
Slide 1: Verisure Midholding AB (publ) Earnings Call Presentation Q3 2021
Verisure Midholding AB (publ) Earnings Call Presentation | Q3 2021 December 2nd, 2021
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: Q3 2021 Performance Highlights
Q3 2021 Performance Highlights Key Highlights Key Operating and Financial Metrics • Continued strong operational and financial performance in Q3 2021 2019 Q3 2020 Q3 2021 Q3 New +154k +211k +190k Installations • Our Customer Portfolio continued to grow strongly and passed 4.1 million, which represen
Slide 6: Portfolio up +523k vs. PY and Now Over 4.1 Million Customers
Portfolio up +523k vs. PY and Now Over 4.1 Million Customers Continued Strong Customer Portfolio Growth Total Customer Portfolio (000) 4,146 +14.4% 4,020 (+523k) 3,884 3,764 3,623 2020 2020 2021 2021 2021 Q3 Q4 Q1 Q2 Q3 PY = Prior Year (2020) 6
Slide 7: Continuous Strong Customer Intake
Continuous Strong Customer Intake 190k New Customers Added in Q3 2021 574k New Customers Added in 2021 September YTD New Installations (000) New Installations (000) +28% -10% 574 211 190 448 2020 2021 2020 2021 Q3 Q3 Q3 YTD Q3 YTD 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 8
Slide 9: Strong Unit Economics
Strong Unit Economics ARPU(1) €42.2 +€77m incremental revenue during the quarter vs. PY Cost to Serve €11.5 (27%) €26.0 Reported Currency Constant Currency Q3 2021 Growth(3) Growth(3) ARPU €42.2 +2.5% +1.7% EPC(2) €30.7 (73%) EPC €30.7 +1.8% +2.6% Q3 2021 Note: (1) ARPU: Average Revenue Per User per
Slide 10: Key Financial Metrics - Q3 2021
Key Financial Metrics - Q3 2021 Strong Financial Metrics Sustained High Portfolio Services Profitability €m Portfolio Services Adj. EBITDA Margin (%) 2020 2021 % vs. Q3 Q3 PY Total Revenues 557 634 +14% +7 bps Portfolio Services 72.6% 72.7% 319 377 +18% Adjusted EBITDA(1) Total Adjusted EBITDA(1) 22
Slide 11: Income Statement - Q3 2021
Income Statement - Q3 2021 Income Statement Summary - Q3 2021 Strong Revenue Growth €m Revenue (€m) +13% Constant FX Reported +14% Actual FX SDI(1) Reported excl. SDI(1) 634 25 Total Revenues 634 634 557 18 91 Net Operating Expenses (363) (45) (409) 100 Total Adjusted EBITDA 271 (45) 226 D&A (87) (3
Slide 12: Strong Operating Cash Flow Generation of €642m Sept 2021 YTD
Strong Operating Cash Flow Generation of €642m Sept 2021 YTD Cash Flow from Operating Activities, Sept 2021 YTD, €m 1,097 (295) (111) 642 (26) (22) 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, Sept 2021 YTD, €m (1,704) (105) (38) (7,070) (5,108) (544) (213) 642 Total Net 5.1x 6.4x Leverage Net Debt CF Operating CF Investing Net Paid Paid Bank, Advisory Other Net Debt Dec 2020 Activities Activities Interest Distribution Fee
Slide 14: Leverage Overview
Leverage Overview Evolution of L2QA Net Leverage 2020 - Q3 2021 L2QA Net Leverage Senior Secured Net Leverage (Post IFRS) Total Net Leverage (Post IFRS) 2020 2021 COVID-19 Normalized Leverage(1) Post IFRS Q1 Q2 Q3 Q4 Q1 Q2 Q3 €0.4Bn €0.1Bn €1.7Bn dividend Arlo dividend recap M&A recap Net Debt (€m)
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) +26.8% +14.4% 773 +13.3% 4,146 +16.0% 3,764 611 647 3,347 516 2,931 440 2,586 2,294 +17.4% 359 2,017 308 1,507 1,256 +20.2% 1,075 2
Slide 16: Q&A
Q&A 16
Slide 17: Thank you
Thank you