Landis+gyr Group Ag · SIX:LAND
Landis+gyr — H1 2019 Earnings Presentation
22 slides from Landis+gyr's earnings presentation, Oct 29, 2019
Slide 1: Half-Year FY 2019 Earnings Presentation
Half-Year FY 2019 Earnings Presentation Richard Mora, CEO | Jonathan Elmer, CFO © Landis+Gyr | October 29, 2019 | H1 FY 2019
Slide 2: Disclaimer
Disclaimer Forward-looking information This presentation includes forward-looking information and statements, including statements concerning the outlook for our businesses. These statements are based on current expectations, estimates and projections about the factors that may affect our future per
Slide 3: Business performance – H1 FY 2019
Business performance – H1 FY 2019 Group performance in H1 FY 2019 ▪ Order intake reached USD 819 million – book-to-bill ratio 0.95x ▪ Committed backlog up 7.1% to USD 2,514 million with all regions contributing to the growth ▪ Net Revenue reached USD 863 million up 3.4% in const. currency ▪ Adjusted
Slide 4: Recent corporate developments
Recent corporate developments Colorado Springs Utilities will deploy the Gridstream Connect platform connecting more than 590,000 electric, natural gas and water meters to an integrated network management and data acquisition system. The new contract provides for managed services by Landis+Gyr for a
Slide 5: Americas segment – Key developments in H1 FY 2019
Americas segment – Key developments in H1 FY 2019 North America South America / LATAM ▪ Continuing the momentum from the end FY 2018, signed ▪ AMI pilots in Brazil continue at moderate cadence 20-year managed service extension and technology ▪ Continued impact on market demand and order flow upgrade
Slide 6: EMEA segment – Key developments in H1 FY 2019
EMEA segment – Key developments in H1 FY 2019 Key markets Key operational achievements ▪ UK: Improvement in profitability driven by: • Approx. 21 million smart meters under contract with ▪ Full effect from completed introduction of product cost a number of retailers, of which approx. 9 million have
Slide 7: Asia Pacific segment – Key developments in H1 FY 2019
Asia Pacific segment – Key developments in H1 FY 2019 Key markets Operational achievements ▪ Australia ▪ H1 FY 2019 net revenue up 32.0% in constant • Higher market certainty after implementation of currency with Australia, Hong Kong and India as regulatory framework (Power of Choice) driving demand
Slide 8: Consolidated results – H1 FY 2019
Consolidated results – H1 FY 2019 USD in millions (except per share amounts) H1 FY 2019 H1 FY 2018 Change Order Intake 818.9 910.0 (10.0%) Change in constant currency (7.1%) Committed Backlog 2,514.1 2,347.9 7.1% Net Revenue 862.8 852.9 1.2% Change in constant currency 3.4% Reported EBITDA 128.2 114
Slide 9: Net Revenue year-over-year bridge
Net Revenue year-over-year bridge – H1 FY 2019 Net Revenue year-over-year bridge Americas USD in millions ▪ Impact of roll off of two major projects 900 3.4% partially offset by higher sales to other 880 19.5 862.8 North American customers 860 852.9 (18.6) 29.2 840 834.3 (20.3) 820 EMEA 800 780 ▪ UK
Slide 10: Adjusted EBITDA year-over-year bridge
Adjusted EBITDA year-over-year bridge – H1 FY 2019 Adjusted EBITDA year-over-year bridge Comment USD in millions 140 ▪ Significantly lower incremental costs 5.6 (1.8) 124.9 associated with eased supply chain 8.8 120 5.5 constraints: 106.8 0.1 USD in millions H1 FY 2018 H1 FY 2019 Δ 100 Group 12.1 3.
Slide 11: Adjustments to EBITDA
Adjustments to EBITDA – H1 FY 2019 USD in millions H1 FY 2019 H1 FY 2018 Change Adjustments H1 FY 2019 Reported EBITDA 128.2 114.9 11.6% Adjustments ▪ Adjustments in H1 FY 2019 were again negative Restructuring at USD 3.3 million driven by Timing Differences 0.6 2.6 (75.1%) on FX Derivatives partly
Slide 12: Cash Flow
Cash Flow – H1 FY 2019 USD in millions H1 FY 2019 H1 FY 2018 Change Comments Net income 71.8 59.2 21.3% Depreciation and amortization 43.3 47.3 (8.3%) ▪ OWC increased due to higher inventory Net loss (income) from Equity Investments 3.1 1.7 79.4% in Americas and EMEA Non-cash gain on disposal of int
Slide 13: Cash Flow Seasonality
Cash Flow Seasonality Historical Free Cash Flow (excl. M&A) Comments USD in millions ▪ H2 has historically been much stronger in FY 2019 terms of Free Cash Flow (excl. M&A) FY 2017: FY 2018: guidance: 87.5 123.5 generation 120 – 135 100 ▪ Warranty settlement cash outs in FY 2017 and FY 2018 skewed t
Slide 14: Net debt
Net debt Net debt bridge Comments USD in millions ▪ Net debt down 10.0% to USD 99.4 million 160 ▪ Slightly lower net debt / trailing twelve 0.5x 0.4x 140 20.5 33.1 month Adjusted EBITDA ratio of 0.4x 120 110.4 93.2 94.0 ▪ Dividend payment of USD 94.0 million 100 0.9 99.4 made in July 2019 80 ▪ Repur
Slide 15: Americas segment – H1 FY 2019
Americas segment – H1 FY 2019 USD in millions H1 FY 2019 H1 FY 2018 Change Comments Order intake 363.5 365.0 (0.4%) ▪ Committed backlog increase driven by major Committed backlog 1,634.8 1,522.5 7.4% contract wins in the US (primarily booked in Net revenue to external customers 476.0 497.5 (4.3%) H2
Slide 16: EMEA segment – H1 FY 2019
EMEA segment – H1 FY 2019 USD in millions H1 FY 2019 H1 FY 2018 Change Comments Order intake 378.2 467.2 (19.0%) ▪ Committed backlog up on the back of Committed backlog 790.2 760.2 3.9% contract wins in the Nordics and the UK Net revenue to external customers 306.3 291.6 5.0% ▪ Revenue growth driven
Slide 17: Asia Pacific segment – H1 FY 2019
Asia Pacific segment – H1 FY 2019 USD in millions H1 FY 2019 H1 FY 2018 Change Comments Order intake 77.2 77.9 (0.9%) ▪ Revenue growth driven by higher revenue in Committed backlog 89.0 65.1 36.7% Australia, in SEA (CLP Power contract) and Net revenue to external customers 80.5 63.8 26.2% India (Tat
Slide 18: New 2018/19 Sustainability Report
New 2018/19 Sustainability Report Sustainability at Landis+Gyr Latest Achievements ◼ Landis+Gyr focus on helping energy Corporate Social Responsibility: utilities and consumers manage ◼ Aligning CSR activities with UN Global energy better Compact and Global Reporting ◼ The company reports its carbon
Slide 19: Guidance FY 2019
Guidance FY 2019 ▪ Net revenue growth of approximately 1 - 4% in constant currency versus earlier range of 2 - 5% due to risk of project delays caused by the pace of regulatory approvals in the United States ▪ Group Adjusted EBITDA to be between USD 240 million and USD 255 million - unchanged ▪ Free
Slide 20: Q&A
Q&A © Landis+Gyr | October 29, 2019 | H1 FY 2019
Slide 21: Key take-aways
Key take-aways ▪ Significant progress made toward mid-term targets in EMEA and Asia Pacific – Americas resilient despite expected net revenue decline ▪ All key performance metrics (Net Revenues, Adjusted EBITDA and Free Cash Flow excluding M&A) grew year on year ▪ Supply chain constraints eased duri
Slide 22: Dates and contacts
Dates and contacts Important Dates Contact Investor Relations Capital Markets Day: Stan March – New York January 27, 2020 – Zurich SVP Group Communications & Investor Relations Release of FY 2019 Results: Phone +1 678 258 1321 May 28, 2020 Stan.March@landisgyr.com Annual General Meeting: June 30, 20