Landis+gyr Group Ag · SIX:LAND
Landis+gyr — FY2020 Earnings Presentation
33 slides from Landis+gyr's earnings presentation, May 5, 2021
Slide 1: Full Year FY 2020 Earnings Presentation
Full Year FY 2020 Earnings Presentation May 5th, 2021 1 | © Landis+Gyr 2021 | May 5 th, 2021 | FY 2020
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 FY 2020
Business Performance FY 2020 ▪ Order Intake USD 1,298.7 million; book-to-bill ratio of 0.96 (FY 2019: 0.81) primarily due to regulatory project approval delays and COVID-19 ▪ Committed backlog of USD 2,165.9 million (down 2.6%) ▪ Net Revenue fell 20.8%* to USD 1,357.4 million impacted by COVID-19 ef
Slide 4: Sustainable Impact
Sustainable Impact Reporting according to Joined in In 2020, top 5% of GRI core since 2020 November 2019 Sustainable Companies Landis+Gyr Carbon Neutral by 2030 ESG corporate rating “C” AA-rated since 2018 Company grade of "B" (top 30%) since 2018 (top 11% in peer universe) since 2020 4 || © ©Landis
Slide 5: Sustainability Engagement for the Future
Sustainability Engagement for the Future Climate . . . . . . increase tons of CO2 saved by use of L+G products & services . . . raise L+G EcoPortfolio . . . increase energy from renewable sources Resources . . . . . . reduce total water consumption per employee . . . increase vendor monitoring on co
Slide 6: Recent Awards – FY 2020
Recent Awards – FY 2020 Washington, US – Puget Sound selects Landis+Gyr for smart street lighting controls, including the deployment of 25,000 streetlight controllers, connected to the Gridstream® network, over the next five years Wisconsin, US – Polk-Burnett Cooperative selects Landis+Gyr for AMI s
Slide 7: FY 2020+ Review
FY 2020+ Review Undisclosed Customer SmartSTEP Contract (US) EV Charging Contract (UK) Evergy Contract Extension (US) Regulatory Vodafone Approvals (US) Amazonas Energia Cellular IoT Contract (Brazil) Partnership Google Announcement Smart Metering Choice Partnership SMETS2 Contract (UK) Announcement
Slide 8: Americas – Key Developments in FY 2020
Americas – Key Developments in FY 2020 North America South America / LATAM ▪ Clean energy-focused administration and regulatory approval ▪ Multiple wins, expanding existing—and winning new — in New York and New Jersey signals strong momentum customers including Amazonas Energia, CEEE, EDP and Enel ▪
Slide 9: EMEA – Key Developments in FY 2020
EMEA – Key Developments in FY 2020 UK Nordics ▪ COVID-19 on UK market: lock-downs led to reduction in install ▪ >1 million meters contracted in Sweden and Denmark; rates of 35% in FY 2020 won N1 and Vores Elnet in Denmark and C4 in Sweden ▪ Landis+Gyr first to market – sales and installed base with
Slide 10: Asia Pacific – Key Developments in FY 2020
Asia Pacific – Key Developments in FY 2020 Australia | New Zealand (ANZ) Hong Kong | South East Asia ▪ Increasingly important role of smart meters for ▪ Hong Kong - Total Smart Meters deployed now exceed 1 million DER monitoring and management on the distribution on Landis+Gyr solutions network as r
Slide 11: Strategic Transformation
Strategic Transformation SMART GRID EDGE SMART METERING INTELLIGENCE INFRASTRUCTURE Smart Water Smart Gas * Heightened focus on Grid Edge Intelligence and Smart Infrastructure through targeted R&D and M&A 11 | © Landis+Gyr 2021 | May 5 th, 2021 | FY 2020 * Subject to closing
Slide 12: Strategic Initiatives – Smart Water & Gas
Strategic Initiatives – Smart Water & Gas Ultrasonic Global Smart Water Meter Ultrasonic Global Smart Gas Meter ▪ Interest continues to grow in Smart Water metering ▪ Positive customer feedback >20% of market sampled solutions with Australia, New Zealand, Singapore 2021 so far and Hong Kong leading
Slide 13: Strategic Initiatives - Google Partnership
Strategic Initiatives - Google Partnership Co-Innovation Head End System IT / OT GCP native Grid Efficiency application delivered Unified Head End System has been Migrate all business and customer systems to June 2021 transformed to the GCP environment for full Google Cloud Platform, subject to cont
Slide 14: Strategic Initiatives – Acquisition
Strategic Initiatives – Acquisition Rhebo’s cybersecurity monitoring technology is capable of detecting anomalies and threats down to critical endpoints at the grid edge and report those in real-time ▪ Closing completed on 26th February, 2021 ▪ Post merger integration well on track, offering well re
Slide 15: EV Charging – Smart Infrastructure Growth
EV Charging – Smart Infrastructure Growth Utility Opportunity ▪ EVs see tremendous growth globally and will play a significant role in a distributed energy system ▪ EV chargers in residential homes and public places will require management of additional large unplanned load on the grid, which is L+G
Slide 16: Two targeted acquisitions to enter EV charging market
* Two targeted acquisitions to enter EV charging market and create new business for L+G Residential Charging Hardware Software Solutions Demand Response + Flexibility Management Solutions ▪ Recognized player with profitable double-digit million dollar ▪ Smart phone app for smart charging sales expec
Slide 17: Consolidated Results – FY 2020
Consolidated Results – FY 2020 USD in millions (except per share amounts) FY 2020 FY 2019 Change ▪ Order intake and revenue conversion Order Intake 1’298.7 1'371.4 (5.3%) impacted by US regulatory project Change in constant currency (6.2%) approval delays and COVID-19 related Committed Backlog 2’165
Slide 18: Net Revenue Bridge – FY 2020
Net Revenue Bridge – FY 2020 USD in millions (20.8%) Americas 1’800 ▪ Slow down of various project 1’699.0 15.1 1’714.1 (196.4) installations due to COVID-19, recent 1’600 (161.0) project roll-offs not replaced by new 1’400 0.8 1’357.4 business and further delay of US regulatory project approvals 1’
Slide 19: Adjusted EBITDA Bridge – FY 2020
Adjusted EBITDA Bridge – FY 2020 USD in millions ▪ Adjusted Gross Profit declined 250 mainly due to lower volumes in 237.2 0.3 236.9 123.0 Americas & EMEA 200 ▪ Adjusted Gross Profit margins impacted by reduced operating 150 44.7 139.6 leverage partially offset by product 19.0 cost-out and mix 100 ▪
Slide 20: Adjustments to EBITDA – FY 2020
Adjustments to EBITDA – FY 2020 ▪ Restructuring Charges: USD 15.3m USD in millions FY 2020 FY 2019 Change primarily relate to Project Hermes, Reported EBITDA 113.7 225.3 (49.5%) announced in August 2020 Adjustments Restructuring Charges 15.3 6.7 n/a ▪ Warranty Normalization Adjustments Normalized Wa
Slide 21: H2 FY 2020 Dynamics
H2 FY 2020 Dynamics KPI (USD in millions) %PY H1 %PY H2 Comments ▪ Clawback $110m revenue H2 vs H1 in Revenue 734.0 (27.7)% (12.2%) Americas and EMEA 623.5 H1 FY 2020 H2 FY 2020 KPI (USD in millions) %Revenue H1 %Revenue H2 Comments ▪ Restructuring initiative completed and Adjusted realized savings
Slide 22: Net Income and FCF – FY 2020
Net Income and FCF – FY 2020 KPI (USD in millions) Comments ▪ Non-cash impairment of USD 396m for the FY 2020 3.6 Americas related to legacy Toshiba goodwill Net Income FY 2020 excl Goodwill recognized in H2 FY 2020 impairment -392.4 ▪ USD -13.61 EPS in FY 2020; USD 0.13 EPS excl. Goodwill impairmen
Slide 23: Cash Flow – FY 2020
Cash Flow – FY 2020 USD in millions FY 2020 FY 2019 Change ▪ Strong OWC focus on back of lower Net income (loss) (392.7) 113.2 n/a volumes Depreciation and amortization 82.9 86.4 (4.1%) ▪ Warranty and warranty settlement cash Impairment of intangible assets 396.0 - n/a outs decreased, attributable t
Slide 24: Net Debt – FY 2020
Net Debt – FY 2020 USD in millions ▪ Solid Balance Sheet with low net debt position of USD 6.9m… USD ~140m 120.00 0.1x 0.05x cash at hand as of 31st March 2021 11.7 97.6 100.00 63.3 ▪ Repaid >USD 200m debt... net debt/Adjusted EBITDA of 0.05x 80.00 ▪ Available undrawn facilities of of > USD 400m 60.
Slide 25: Americas Segment – FY 2020
Americas Segment – FY 2020 USD in millions FY 2020 FY 2019 Change ▪ Order intake and backlog remain flat due to US regulatory project approval Order intake 665.4 652.3 2.0% delays and COVD-19 impact Committed Backlog 1427.0 1480.3 (3.6%) Net revenue to external customers 700.0 906.3 (22.8%) ▪ Net re
Slide 26: EMEA Segment – FY 2020
EMEA Segment – FY 2020 ▪ New large bookings mainly in the UK, USD in millions FY 2020 FY 2019 Change The Netherlands and Nordics, Order intake 466.8 556.1 (16.1%) however several project awards Committed Backlog 636.7 649.4 (2.0%) delayed due to COVID-19 Net revenue to external customers 494.4 633.5
Slide 27: APAC Segment – FY 2020
APAC Segment – FY 2020 ▪ Order Intake and Backlog increased USD in millions FY 2020 FY 2019 Change from new AMI awards in India, strong Order intake 166.5 163.0 2.1% H2 recovery Committed Backlog 102.2 94.3 8.4% Net revenue to external customers 163.0 159.2 2.4% ▪ Revenue increased driven by Hong Ch
Slide 28: Guidance FY 2021
Guidance FY 2021 Net Revenues Organic growth between 7% and 11% CAGR; (Relative to FY 2020) inorganic revenues to come on top Additional expenses of ca. 2% of net revenues to Transformation support strategic initiatives & company transformation Adjusted EBITDA margin Adjusted EBITDA between 9.0% and
Slide 29: Landis+Gyr Landis+Gyr | May
2929| © |©Landis+Gyr Landis+Gyr 2021 | May | manage 5 th, 2021| energy FY 2020 better together | January 27 th, 2021 | CONFIDENTIAL – DRAFT VERSION – ENTIRE DECK UNDER REVIEW AND FOR INTERNAL DISCUSSION
Slide 30: Key Messages
Key Messages ▪ US Energy Infrastructure Investments of $100b provide strong tailwinds for continuous recovery ▪ Establishing a high-performance culture with strong focus on customer intimacy and operational excellence ▪ Resilient cash-generative business model as demonstrated in challenging COVID-19
Slide 31: Glossary
Glossary AMI Advanced metering infrastructure ISV Independent Software Vendor CO2 Carbon dioxide IT Information Technology DER Distributed energy resources LTE-M Long Term Evolution for Machines ESG Environmental, Social and Governance MSCI Morgan Stanley Capital International EV Electric vehicles M
Slide 32: Contacts & Dates
Contacts & Dates Important Dates Contacts Publication of Annual Report 2020 Eva Borowski and Invitation to AGM 2021: SVP Investor Relations & May 28th, 2021 Corporate Communications Annual General Meeting 2021: Phone +41 41 935 6396 June 24th, 2021 Eva.Borowski@landisgyr.com Ex-Dividend Date: June 2
Slide 33: 33 | © Landis+Gyr 2021 | manage energy better together | January 27 th
33 | © Landis+Gyr 2021 | manage energy better together | January 27 th, 2021 | CONFIDENTIAL – DRAFT VERSION – ENTIRE DECK UNDER REVIEW AND FOR INTERNAL DISCUSSION