Vusion · EURONEXT:VU
Vusion — VusionGroup — FY2023 Earnings Presentation
18 slides from Vusion's earnings presentation, Mar 27, 2024
Slide 1: FY 2023 Results
FY 2023 Results FY 2023 Results March 27, 2024
Slide 2: Strong profitable growth and cash-flow generation in 2023
Strong profitable growth and cash-flow generation in 2023 IFRS 15 2023 IFRS Adjusted In € millions 2023 2022 Adjustment1 Adjusted Change Change FY23 revenue of €802m, +29% yoy Revenue 802.0 (3.7) 805.6 620.9 +29% +30% EBITDA of €102m +75% yoy EBITDA 102.3 (3.7) 106.0 58.6 +75% +81% EBITDA margin of
Slide 3: Revenue by region
Revenue by region (€m) 802 160 Americas & Asia 620 +22% VusionGroup is the global leader in its sector. 134 Growth by region: • +32% growth in EMEA to €642m (80% of total sales). • +22% growth in Americas & Asia-Pacific to €160m (20% of total sales) ------------------------- 642 EMEA +32% This growt
Slide 4: Order entries growth
Order entries growth 950 € Million +39% Major contracts signed 685 with leading global retailers: 7 in Top 50 11 in Top 100 15 in Top 250 2022 2023 Proprietary and confidential. Do not distribute. 4
Slide 5: Strong expansion in the US
Strong expansion in the US # of stores in the US 10,000 • Installed base more than doubled in 2023 • Thanks to a strong momentum in new orders, US will become as soon as 2024 the N°1 country by revenue and installed base 6,000 • 100% Cloud model. Cloud revenues expected to ramp-up fast in the region
Slide 6: Strong cloud growth
Cloud Overview 2023 Strong cloud growth As of 31/12/2023 +64% +65% vs. 2022 vs. 2022 Labels Stores 82m 17,100+ 50m 13,000+ Q4 2022 Q4 2023 Q4 2022 Q4 2023 Proprietary and confidential. Do not distribute. 6
Slide 7: VAS development
VAS development Total VAS revenue reached €109m in 2023, +17% yoy Software, services, and non-ESL solutions Recurring VAS grow fast and represent 39% of VAS sales or €42m in €m 120-140 Non-recurring VAS decreased slightly to €67m due to a challenging macroeconomic environment in which 109 retailers
Slide 8: EdgeSense The Shelf-Edge Revolution
Reinventing the shelf-edge EdgeSense™ The Shelf-Edge Revolution • Embedded Bluetooth-LE connectivity • Precise in-store geolocation of people & products • Proximity sensing • Battery-less displays • Sustainable by design Proprietary and confidential. Do not distribute. 8
Slide 9: Financials
Financials FY 2023 Results March 27, 2024
Slide 10: Significant increase of the profitability
Significant increase of the profitability 2023 IFRS 15 2023 IFRS Adjusted • €800m+ revenues (+29%) In € millions * Adjustment1 Adjusted1 2022 Change Change Revenue 802.0 (3.7) 805.6 620.9 +29% +30% • Adjusted VCM margin up Variable cost margin 201.9 (3.7) 205.5 131.4 +54% +56% 4.3pts vs. 2022 % of r
Slide 11: Ebitda margin strong improvement
Ebitda margin strong improvement In % of sales 13.2 12.8 Strong improvement in both ESL 9.4 and VAS gross margins Positive impact of acquisitions and divestitures Positive Forex impact Further improving COGS expected in 2024 Profitability improvement expected in 2024 (+50 to 100 Bps vs 2023) Ebitda
Slide 12: From Ebitda to Ebit
From Ebitda to Ebit in M€ 2023 2022 EBITDA 102.2 58.6 - Equity / debt / M&A related fees (1.9) - Fire in our German warehouse 1.2 - Performance Shares Plan (IFRS2) (12.4) (7.6) - Impact of China JV de-consolidation 6.7 - Fixed & Intangible Asset Depreciation Expense (36.5) (27.2) = Operating Income
Slide 13: Positive cash-flow generation in H1 and H2!
Before IFRS 16 Positive cash-flow generation in H1 and H2! FY 2023 FY 2022 Restated EBITDA 106.0 58.6 Positive Free Cash-Flow in H1 and IFRS16 (3.8) (2.3) H2 (122 M€ in H1 and 35.4 M€ in Capex (87.5) (51.3) H2) despite Working Cap. negative Change in Working Capital 155.9 (27.7) impact in H2. Corpor
Slide 14: H2 Cash Capex back in line with 5-7% Capex to Sales ratio
H2 Cash Capex back in line with 5-7% Capex to Sales ratio H1 2023 H2 2023 FY 2023 FY 2022 R&D & IT 44.9 19.3 64.2 44.2 o/w EdgeSense Project (HW) 30.8 6.3 37.2 22.4 Industrial 1.6 17.6 19.1 4.4 o/w EdgeSense Customer-funded Manuf. Lines 16.5 16.5 0.0 Others 1.6 2.5 4.1 2.5 TOTAL CAPEX 48.0 39.5 87.5
Slide 15: Operating working capital
Operating working capital 2023 2022 The Group has continued to improve all operating working capital accounts through Inventories 136.4 172.2 Days 51 100 rigorous management and effective information systems, with an optimization in Receivables 132.9 110.5 inventory levels from 100 to 51 days, DSO 4
Slide 16: No short term maturities and positive net cash position
No short term maturities and positive net cash position The Net Cash / (Debt) position has evolved as follows over 2023: Net Debt as of Net Debt as of increase decrease Maturity Dec. 31, 2022 Dec. 31, 2023 Cash 33.9 166.0 199.9 EuroPP 40M€ (40.0) 40.0 0 Repaid in Dec-2023 EuroPP 10M€ (10.0) (10,0) J
Slide 17: VusionGroup confident on its €1B target
VusionGroup confident on its €1B target 1,000+ Revenue by region Revenue by semester (€m) (€m) Due to the end of a large 800 roll-out in Europe, sales in EMEA will decrease temporarily compared to the record levels 50-60% reported in 2023 and are 580-600 expected to grow again in 2025 (+30-40%) as a
Slide 18: Outlook (continued)
Outlook (continued) Total VAS revenue anticipated to reach €120–140m • Ongoing difficult macroeconomic environment affecting capex on new innovative projects, • Non-recurring VAS expected to decrease in H1 • Recurring VAS to continue to grow strongly to a target of €60m+, ie ~50% growth VusionGroup