Landis+gyr Group Ag · SIX:LAND
Landis+gyr — H1 FY2022 Earnings Presentation
24 slides from Landis+gyr's earnings presentation, Oct 27, 2022
Slide 1: Half Year FY 2022 Earnings Presentation
Half Year FY 2022 Earnings Presentation October 27th, 2022 1 | © Landis+Gyr 2022 | October 27 th, 2022 | H1 FY 2022
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 2022
Business Performance – H1 FY 2022 Order intake Order backlog ▪ Sustained solid order intake in all three regions leading to record high order backlog USD 773.2m USD 3’480m Book-to-bill 1.06 +7.5% YoY ▪ Net revenue growth despite supply chain constraints and FX headwinds Net revenue Adjusted EBITDA ▪
Slide 4: Science Based Target Initiative Carbon neutral
Committed to the Science Based Signed up to SBTi Target Initiative in 2022 Ambition to new carbon emission reduction targets in line with the Paris Agreements 1.5°C trajectory Since 2020, top 5% of Carbon neutral Sustainable Companies by 2030* 9 Company grade of“B+ Decarbonizing “B+” since 2022 ” mi
Slide 5: Strategic Transformation
Strategic Transformation SMART GRID EDGE SMART METERING INTELLIGENCE INFRASTRUCTURE Smart Water Smart Gas Transforming the business for longer-term growth while providing attractive returns to shareholders 5 | © Landis+Gyr 2022 | October 27 th, 2022 | H1 FY 2022
Slide 6: Supply Chain Impact H1 FY 2022
Supply Chain Impact H1 FY 2022 ▪ USD ~80 million topline deferred due to supply chain constraints with no order cancellations ▪ EBITDA results include USD ~29 million additional supply chain cost ▪ Expect easing of situation H2 FY22 onwards ▪ Types of components impacted include − MCUs and PICs − Re
Slide 7: Americas | Key Developments in H1 FY 2022
Americas | Key Developments in H1 FY 2022 ▪ Backlog of ~USD 2.6 billion remains strong by securing purchase orders and contracts including APS (500K meter extension), United Illuminating, Peoples Gas, and Public Power opportunities like Tri-County, Meriwether Lewis Electric Co-op during H1 FY22 ▪ Su
Slide 8: EMEA | Key Developments in H1 FY 2022
EMEA | Key Developments in H1 FY 2022 ▪ In the UK, 4m+ per annum deployments forecasted for ‘23 to ’25 due to SMETS2 program delay and program expected to continue past ‘25 with replacement of the original SMETS1 units ▪ Swiss metering rollout in full swing with 80% to be deployed by ’27, driving hi
Slide 9: APAC | Key Developments in H1 FY 2022
APAC | Key Developments in H1 FY 2022 ▪ Our backlog of USD 173 million continues to grow due to strong order intake in Hong Kong, Australia, New Zealand and Southeast Asia ▪ In Australia, we have commenced the initial deployment of our next generation of smart meters, E360 with LTE communications an
Slide 10: Consolidated Results – H1 FY 2022
Consolidated Results – H1 FY 2022 USD in millions (except per share amounts) H1 2022 H1 2021 Change Order intake 773.2 1’786.9 (56.7)% Change in constant currency (55.1)% ▪ Record backlog supported by all regions Committed backlog 3’479.7 3’235.6 7.5% ▪ Strong revenue growth led by Americas and Net
Slide 11: Backlog Evolution – H1 FY 2022
Backlog Evolution – H1 FY 2022 USD in millions Backlog 7.5% 2.7% ▪ New record backlog of USD 3.5 billion achieved with growth in all regions in constant currency ▪ Book-to-Bill ratio of 1.06 with contributions from all regions ▪ Backlog conversion supporting continued growth in H2 2022 and 2023+ Sec
Slide 12: Net Revenue YoY Bridge – H1 FY 2022
Net Revenue YoY Bridge – H1 FY 2022 USD in millions Americas ▪ Strong performance across all 3 clusters: North America, Japan and Brazil EMEA ▪ Decline YoY driven by UK and France due to component availability; acquisitions contributed USD 23m incrementally APAC ▪ Growth driven by Australia and New
Slide 13: Adjusted EBITDA YoY Bridge – H1 FY 2022
Adjusted EBITDA YoY Bridge – H1 FY 2022 USD in millions ▪ Adjusted Gross Profit Volume increase due to operating leverage driven by growth in Americas and APAC ▪ Adjusted Gross Profit Margin decrease primarily due to adverse supply chain cost ▪ Adjusted Operating Expenses increase due to ramp-up cos
Slide 14: Adjustments to EBITDA – H1 FY 2022
Adjustments to EBITDA – H1 FY 2022 ▪ Restructuring Charges: USD 6.5m primarily related to the discontinuation USD in millions H1 2022 H1 2021 Change of manufacturing activities in India Reported EBITDA 51.0 86.2 (40.8)% ▪ Warranty normalization adjustments of Adjustments (2.3) (15.5) (85.2)% USD (2.
Slide 15: Cash Flow – H1 FY 2022
Cash Flow – H1 FY 2022 USD in millions H1 2022 H1 2021 Change ▪ Cash Flow generation adversely Reported EBITDA 51.0 86.2 (40.8)% impacted by Change in Operating Working Capital (44.5) 8.7 n/a − lower EBITDA generation Capital expenditures (8.9) (8.9) - Restructuring charges add back 6.5 0.2 n/a − US
Slide 16: Net Debt – H1 FY 2022
Net Debt – H1 FY 2022 USD in millions ▪ Continued Balance Sheet strength ▪ ~0.63x leverage ratio with net debt 0.98x position of USD ~79.3 million and USD ~82.3 million Cash at hand 0.63x ▪ Significant investment capacity remaining with available undrawn facilities of USD ~395 million Net debt / tra
Slide 17: Americas Segment – H1 FY 2022
Americas Segment – H1 FY 2022 USD in millions H1 2022 H1 2021 Change ▪ 1.04x book-to-bill; prior year order Order intake 409.3 1'214.8 (66.3)% intake was driven by major wins in Committed Backlog 2'604.2 2'320.8 12.2% North America Cha nge i n cons tant currency 11.6% Net revenue to external custome
Slide 18: EMEA Segment – H1 FY 2022
EMEA Segment – H1 FY 2022 USD in millions H1 2022 H1 2021 Change ▪ 1.07x book-to-bill; major wins in the UK Order intake 264.4 486.0 (45.6)% Committed Backlog 702.1 803.9 (12.7)% Cha nge i n cons tant currency 3.5% ▪ Volume declines due to component Net revenue to external customers 248.0 300.1 (17.
Slide 19: APAC Segment – H1 FY 2022
APAC Segment – H1 FY 2022 ▪ Strong order intake resulting in 1.12x USD in millions H1 2022 H1 2021 Change Order intake 99.5 86.1 15.6% book-to-bill and significant backlog Committed Backlog 173.3 110.8 56.4% growth Cha nge i n cons tant currency 68.1% Net revenue to external customers 89.0 75.4 18.0
Slide 20: Guidance FY 2022 confirmed
Guidance FY 2022 confirmed Net Revenues ~6% to 10% net revenue growth, (Relative to FY 2021) including FY 2021 acquisitions Additional expenses of ca. 2% of net revenues Transformation as in FY 2021 supporting strategic transformation Adjusted EBITDA margin Adjusted EBITDA between 5% and 8% of net r
Slide 21: 21 | © Landis+Gyr 2022 | October 27 th , 2022 | H1 FY
21 | © Landis+Gyr 2022 | October 27 th, 2022 | H1 FY 2022
Slide 22: Key Messages
Key Messages ▪ Recession-resilient, due to continuation of rollouts and expected cost relaxation during economic downturn ▪ Increased need for more intelligent power grids to drive energy efficiency and ensure critical infrastructure stability, further amplified by energy crisis, which positions Lan
Slide 23: Contacts & Dates
Contacts & Dates Important Contacts Dates Capital Markets Day 2023: Eva Borowski January 31st, 2023 SVP Investor Relations & Corporate Communications Release of FY 2022 Results: May 2nd, 2023 Phone +41 41 935 6396 Eva.Borowski@landisgyr.com Publication of Annual Report 2022 and Invitation to AGM 202
Slide 24: 24 | © Landis+Gyr 2022 | October 27 th , 2022 | H1 FY
24 | © Landis+Gyr 2022 | October 27 th, 2022 | H1 FY 2022