Landis+gyr Group Ag · SIX:LAND
Landis+gyr — H1 2023 Earnings Presentation
26 slides from Landis+gyr's earnings presentation, Oct 25, 2023
Slide 1: Half Year 2023 Earnings Presentation
Half Year 2023 Earnings Presentation Werner Lieberherr | Chief Executive Officer Elodie Carr-Cingari | Chief Financial Officer October 25, 2023 1 | © Landis+Gyr 2023 | H1 FY 2023
Slide 2: Disclaimer
Disclaimer Forward-looking Information This presentation includes forward-looking information and statements, including statements concerning the outlook for Landis+Gyr Group AG and Landis+Gyr group (“Landis+Gyr”). These statements are based on current expectations, estimates and projections about t
Slide 3: Business Performance H1 FY 2023
Business Performance H1 FY 2023 Order intake ▪ Sustained solid order intake / book-to-bill in Americas and EMEA Order backlog USD 958.1m resulting in USD 3.7b backlog while maintaining strong revenue growth USD 3’730.5m +22.5% YoY in cc Book-to-bill 1.0 +5.4% YoY in cc ▪ Strong net revenue growth dr
Slide 4: Science Based Target Initiative
9.5 Committed to the Science Based Target Initiative Targets approved in 2023 Joined in November 2019 2030 Carbon Neutral Reporting according to GRI since 2020 ESG corporate rating Prime status (top decile) million tons CO2 Direct CO2 emissions avoided through installed Smart Metering base in FY 202
Slide 5: Americas – Key Developments in H1 FY 2023
Americas – Key Developments in H1 FY 2023 Smart Metering ▪ Achieved significant deployment milestones, hitting 1.3m metering endpoints with PSE&G NJ and over 1m with Ameren ▪ G480 ultrasonic gas meter certification paving way to serve WEC Energy Group's expansive network of over 200k endpoints Grid
Slide 6: EMEA – Key Developments in H1 FY 2023
EMEA – Key Developments in H1 FY 2023 Smart Metering ▪ In Germany, revenues increased with robust market share growth in a dynamic environment ▪ Solid project wins by Luna and in South Africa Grid Edge Intelligence ▪ In the UK, SMETS2 program expected to continue past ’25, and successful market shar
Slide 7: APAC – Key Developments in H1 FY 2023
APAC – Key Developments in H1 FY 2023 Smart Metering ▪ CLP Hong Kong, deployed 2m+ AMI meters milestone ▪ In Australia and New Zealand, leading smart water sustainable water management in residential metering Grid Edge Intelligence ▪ In Australia, delivered 500k+ next generation Grid Edge meters sin
Slide 8: Comprehensive EV Solutions Portfolio
Comprehensive EV Solutions Portfolio Hardware Software Smart Charging EV Load Management AC L2 CHARGERS EV CHARGE POINT & SMART EV LOAD MANAGEMENT 7,4KW AND 22KW ENERGY MANAGEMENT SYSTEM CHARGING APP PLATFORM To support home, semi-public, Scalable charger-agnostic software For consumers to prioritiz
Slide 9: Key Contract Wins
Key Contract Wins Smart Metering Landis+Gyr will provide advanced metering technology for EPCOR water meters in city of Edmonton Neenah Water Utility deploys Landis+Gyrs Gridstream AMI Solution under a shared network agreement with WE Energies Grid Edge Intelligence Israel Electric Corporation (IEC)
Slide 10: Consolidated Results – H1 FY 2023
Consolidated Results – H1 FY 2023 USD in millions (except per share amounts) H1 2023 H1 2022 Change Order intake 958.1 773.2 23.9% Change in constant currency 22.5% ▪ Sustained solid backlog supported by order Committed backlog 3’730.5 3’479.7 7.2% intake in Americas and EMEA Net revenue to external
Slide 11: Order Intake / Backlog
Order Intake / Backlog USD in millions Order Intake Backlog 1.1x Book-to-Bill 1.0x +7.2% 3'731 958 3'480 89 773 173 727 60 702 99 290 264 2’604 2’915 608 409 H1 FY 2022 H1 FY 2023 September 30, 2022 September 30, 2023 Americas EMEA APAC Americas EMEA APAC ▪ Order Intake of USD 958 million driven by
Slide 12: Net Revenue Bridge
Net Revenue Bridge USD in millions Americas ▪ Very strong performance particularly in North America EMEA ▪ Growth driven by Switzerland, Luna business (FY 2021 acquisition) and France, partially offset by the UK Asia Pacific ▪ Decline YoY driven by India partially offset by strong performance in Hon
Slide 13: Adjusted EBITDA Bridge
Adjusted EBITDA Bridge USD in millions ▪ Adjusted Gross profit volume increase driven by growth in Americas and EMEA ▪ Adjusted Gross Profit margin increase primarily due to operational efficiencies and some supply chain cost recovery of approximately USD 9 million ▪ Adjusted Operating Expenses incr
Slide 14: Adjustments to EBITDA
Adjustments to EBITDA USD in millions H1 2023 H1 2022 Change ▪ Restructuring Charges of USD 15.1 million are primarily related to a global Reported EBITDA 99.8 51.0 95.7% restructuring initiative launched in Adjustments 8.3 (2.3) n/a August 2023 (Project Horizon) Restructuring Charges 15.1 6.5 132.3
Slide 15: Free Cash Flow
Free Cash Flow USD in millions H1 2023 H1 2022 Change ▪ Cash Flow impacted by inventory build Reported EBITDA 99.8 51.0 95.7% up to support our growth trajectory Change in Operating Working Capital (32.1) (44.5) (27.9)% ▪ Capex focus on new product Capital expenditures (PP&E) (18.7) (8.9) 110.1% int
Slide 16: Net Debt
Net Debt USD in millions 0.67x ▪ Continued Balance Sheet strength ▪ ~0.67x leverage ratio with net debt 0.47x position of USD ~134.2 million ▪ Remaining investment capacity with available undrawn facilities of USD ~233 million Net debt / trailing twelve months Adjusted EBITDA Strong balance sheet fo
Slide 17: Americas Segment
Americas Segment USD in millions H1 2023 H1 2022 Change ▪ Strong order intake resulting in 1.1x Order intake USD in millions 608.1 FY 2022 409.3 FY 2021 48.6% Change book-to-bill; driven by wins in North Committed Backlog 2’914.8 2’604.2 11.9% America Order intake 1'163.1 1'701.9 (31.7)% Change in c
Slide 18: EMEA Segment
EMEA Segment USD in millions USD in millions H1 2023 FY 2022 H1 2022 FY 2021 Change Change ▪ 0.9x book-to-bill, supported by wins in Order intake 290.3 264.4 9.8% Switzerland, Israel and the Nordics Order intakeBacklog Committed 623.3 727.1 724.6 702.1 (14.0)% 3.6% Committed Backlog Change in consta
Slide 19: APAC Segment
APAC Segment USD in millions H1 2023 H1 2022 Change USD in millions Order intake FY 2022 59.6 FY 2021 99.5 Change (40.1)% ▪ 0.7x book-to-bill, YoY decline driven by Order intake 139.4 239.0 (41.7)% discontinuation of India manufacturing Committed Backlog 88.6 173.3 (48.9)% Committed Backlog 113.8 17
Slide 20: Guidance FY 2023 – reconfirmed
Guidance FY 2023 – reconfirmed Net Revenues Low double-digit organic net revenue growth (compared to FY 2022) Adjusted EBITDA Adjusted EBITDA margin between 9.0% and 11.0% of net revenues Free Cash Flow (excl. M&A) Around USD 60 million to USD 90 million Dividend Progressive dividend 20 | © Landis+G
Slide 21: Mid-Term Guidance FY 2025 – reconfirmed
Mid-Term Guidance FY 2025 – reconfirmed Net Revenues (Relative to FY 2021) Organic growth of mid to high single digit CAGR Adjusted EBITDA Adjusted EBITDA margin between 12.0% and 14.0% of net revenues Dividend Progressive dividend Strong focus on cash conversion 21 | © Landis+Gyr 2023 | H1 FY 2023
Slide 22: Q&A
Q&A 22 | © Landis+Gyr 2023 | H1 FY 2023
Slide 23: Key Messages
Key Messages ▪ Increased need for more intelligent power grids to drive energy efficiency and ensure critical infrastructure stability, further amplified by energy crisis, which positions L+G in the sweet spot of the energy transition ▪ Data driven solutions to expand recurring revenue streams and d
Slide 24: In a Nutshell
In a Nutshell Landis+Gyr, as a recession-resilient energy efficiency Company, is positioned right in the sweet spot of the energy transition, further amplified by the current energy crisis, while playing an active role in decarbonizing the grid. manage energy better #investinginthefuture 24 | © Land
Slide 25: Dates & Contacts
Dates & Contacts Important Dates Contacts Release of FY 2023 Results: Eva Borowski May 8, 2024 SVP Investor Relations & Corporate Communications Publication of Annual Report 2023 and Invitation to AGM 2024: Phone +41 41 935 6396 May 30, 2024 Eva.Borowski@landisgyr.com Annual General Meeting 2024: Ju
Slide 26: Investing in the Future
Investing in the Future #decarbonizethegrid 26 | © Landis+Gyr 2023 | H1 FY 2023