Lectra SA · EURONEXT:LSS
Lectra SA — FY2015 Earnings Presentation
34 slides from Lectra SA's earnings presentation, Feb 12, 2016
Slide 1: Analyst Conference, Paris, February 12, 2016
ANALYST CONFERENCE Paris, February 12, 2016 André Harari, Chairman of the Board of Directors Daniel Harari, Chief Executive Officer Jérôme Viala, Chief Financial Officer
Slide 2: Analyst Conference agenda
Analyst Conference – Paris, February 12, 2016 Financial Results for Q4 2015 Financial Results for FY 2015 Strategic Roadmap for 2013–2016: Third Progress Report 2016 Outlook Unless stated otherwise, comparisons are at actual exchange rates. When mentioned, “like-for-like” comparisons between 2015 an
Slide 3: Q4 2015: Steep Rise in Orders for New Systems
Q4 2015: Steep Rise in Orders for New Systems Orders for New Systems Orders for new systems totaled €32.1 million (in millions of euros) An increase of €5.3 million compared with Q4 2014 +20% 32.1 □ New software licenses: €6.6 million (+8%) □ CAD/CAM equipment: €21.7 million (+29%) 26.8 □ Training
Slide 4: Q4 2015: Income from Operations and Net Income Up Sharply
Q4 2015: Income from Operations and Net Income Up Sharply Q4 2015 Q4 2015 Q4 2014 Change at actual Change like-for-like Actual At 2014 Actual exchange rates In millions of euros exchange rates €M % €M % Revenues 62.2 59.0 57.4 +4.8 +8% +1.6 +3% New systems 26.0 24.3 24.6 +1.5 +6% -0.3 -1% Recurring
Slide 5: Analyst Conference agenda
Analyst Conference – Paris, February 12, 2016 Financial Results for Q4 2015 Financial Results for FY 2015 Strategic Roadmap for 2013–2016: Third Progress Report 2016 Outlook Unless stated otherwise, comparisons are at actual exchange rates. When mentioned, “like-for-like” comparisons between 2015 an
Slide 6: Tougher than Expected Macroeconomic Conditions
Tougher than Expected Macroeconomic Conditions Several unforeseen events have aggravated conditions Slowing growth of the global economy, particularly China’s, with consequences for all Asian countries, which are highly dependent on China, and raw material-exporting countries Major currency shif
Slide 7: Positive Impact from Weaker Euro
Positive Impact from Weaker Euro The sharp fall in the euro since summer 2014 has been a major event for the company Exchange rate variations have had a very favorable mechanical impact overall, boosting revenues and income from operations at actual exchange rates It has significantly bolstered
Slide 8: Orders for New Systems Up at Actual Exchange Rates and Stable Like-for-Like
Orders for New Systems Up at Actual Exchange Rates and Stable Like-for-Like 2015 2014 Change Change Orders Actual Actual 2015 / 2014 2015 /2014 (in millions of euros) At actual Like-for-like exchange rates Total 102.4 94.3 +9% stable Of which New software licenses 23.7 22.4 +6% -1% CAD/CAM equipment
Slide 9: Strong Rebound in North America and in Furniture
Strong Rebound in North America and in Furniture Change 2015 vs. 2014 at actual exchange rates Highly contrasted situation1 Europe (36% of total orders): -5% Asia-Pacific (29%): -1% □ Of which China (14%): -14% 46% 41% 54% 59% Americas (28%): +55% □ North America (22%): +64% □ South America (5
Slide 10: Growth in Revenues, Sharp Increase in Order Backlog
Growth in Revenues, Sharp Increase in Order Backlog Increase in total revenues +€26.5 million (+13%) Revenues from new systems sales (42% of total revenues): €99.4 million (+12%) In millions of euros +12% New software licenses: €23.7 million (+9%) CAD/CAM equipment: €61.3 million (+13%) 99.4 T
Slide 11: Very Strong Earnings Growth
Very Strong Earnings Growth 2015 2015 2014 Change at actual Change like-for-like Actual At 2014 Actual exchange rates In millions of euros exchange rates €M % €M % Revenues 237.9 221.5 211.3 +26.5 +13% +10.2 +5% New systems 99.4 91.6 88.6 +10.8 +12% +3.0 +3% Recurring 138.5 130.0 122.8 +15.8 +13% +7
Slide 12: Increase in Recurring Revenues Finances Transformation Plan Costs
The Increase in Recurring Revenues Finances the Increase in Costs Related to the Transformation Plan In millions of euros, at actual exchange rates +12.0 +8.9 Positive impact of currency fluctuations 31.8 19.8 +5.4 Increase in recurring revenues +2.5 Increase in revenues from new systems sales Incom
Slide 13: Acceleration of R&D Investments
Acceleration of R&D Investments R&D investments 2015 R&D costs increased by 3% to €22.4 million and In millions of euros represented 9.4% of revenues (10.2% in 2014) 21.7 22.4 Net R&D costs1: €14.3 million (€13.5 million in 2014) 19.1 265 engineers (18% of workforce) dedicated to R&D 18.2 17.4 €
Slide 14: FocusQuantum, the next generation of airbag cutting solutions
FocusQuantum, the next generation of airbag cutting solutions A major breakthrough in airbag manufacturing FocusQuantum is a comprehensive airbag solution range, combining high-performance laser cutters for both one- piece woven (OPW) and flat airbags, as well as a purpose-built software suite and
Slide 15: Free Cash Flow Continues to Reflect Pertinence of Business Model
Free Cash Flow Continues to Reflect the Pertinence of Lectra’s 30,0 Business Model 30,0 In millions of euros, before non-recurring items 2015 free cash flow: €21.5 million (+13%) 20,7 Cash flow provided by operating activities: €29.7 million (including 24,5 20,724,5 24.5 24,524,5 23.423,423,423,4
Slide 16: A Zero-Debt Company, Shareholders' Equity and Net Cash Position Further Reinforced
A Zero-Debt Company, Shareholders’ Equity and Net Cash Position Further Reinforced At December 31, 2015 In millions of euros, at December 31 Shareholders’ equity: €113 million 100 €94.3 million at December 31, 2014 80 Net cash: €59.3 million After payment of the dividend of €7.6 million 60 (€0.2
Slide 17: A Structurally Negative Working Capital Requirement
A Structurally Negative Working Capital Requirement, a Key Feature of Lectra’s Business Model In millions of euros, at December 31 Working capital requirement at December 31, 2015 was negative at €3.2 million 20 This includes the receivable of €23.7 million on the 15 French tax administration (Tré
Slide 18: Dividend Raised to €0.30 per Share (+20%)
Dividend Raised to €0.30 per Share (+20%) The Board of Directors will propose to the annual Ordinary Shareholders’ Meeting of April 29, 2016 to increase the dividend to €0.30 per share in respect of fiscal 2015 The company had declared a dividend of €0.25 per share in respect of fiscal 2014 and of
Slide 19: Further Increase in Share Price
Further Increase in Share Price, After an Increase of 75% in 2013 and 10% in 2014 Evolution from January 1, 2015 to February 10, 2016 Share price (in euros, daily closing price and index) February 10, 2016: €10.96 2015 14,0 14.0 □ High (July 30): €14.65 Lectra: +20% □ Low (January 6): €8.98 Vo
Slide 20: Analyst Conference agenda
Analyst Conference – Paris, February 12, 2016 Financial Results for Q4 2015 Financial Results for FY 2015 Strategic Roadmap for 2013–2016: Third Progress Report Each chapter is followed by a progress report, mentioned by 2016 Outlook Analyst Conference – Paris, February 12, 2016 20
Slide 21: Strategic Roadmap for 2013–2016
Strategic Roadmap for 2013–2016 Lectra’s first strategic roadmap, for 2010-2012, was intended to strengthen the company, prepare it for the post-crisis challenges and seize resulting opportunities It successfully demonstrated its effectiveness and the solidity of Lectra’s business model, as well a
Slide 22: Building for The Future in the New Post-Crisis Economic Order
Building for The Future in the New Post-Crisis Economic Order The roadmap was based on the following assumptions Eight economies (Brazil, Russia, India, China, South Korea, Indonesia, Mexico and Turkey) would generate half of global growth over the present decade □ Following China’s example, their
Slide 23: Contribution to Growth Is Very Different According to Each Country
Contribution to the Growth of the Group’s Activity is Very Different According to Each Country… The upheaval in foreign exchange parities, together with the slowdown in the Chinese economy and the impact of these two factors on many economies (Turkey, Brazil, South Korea and certain ASEAN countries)
Slide 24: ...and According to Each Market
…and According to Each Market Having further reinforced its premium positioning, continued to enrich its teams’ expertise, and bolstered its technological leadership in 2015, Lectra is poised to leverage to the maximum opportunities in its different markets Despite transient under-performance in t
Slide 25: Deliberately Cautious Macroeconomic Assumptions
Deliberately Cautious Macroeconomic Assumptions The roadmap was based on the weak macroeconomic conditions prevailing in 2012 and on global growth forecasts known at the time, while allowing for an upturn in business confidence Given the prevailing conditions, businesses would inevitably need to a
Slide 26: Clear and Ambitious Financial Goals
Clear and Ambitious Financial Goals The main goals contained in the 2013-2016 strategic roadmap were Revenue growth of 33% or greater over the period 2013-2016 A 15% operating margin before non-recurring items in 2016 More than doubling income from operations before non-recurring items and net
Slide 27: Far-Reaching Company Transformation Plan and Investments for the Future
Far-Reaching Company Transformation Plan and Investments for the Future This three-point plan, launched at the end of 2011, covered the four-year period from 2012 to 2015, and comprised A major recruitment plan to strengthening sales and marketing teams The addition of 40 software R&D engineers
Slide 28: The Plan Leads to an Extensive Renewal of Teams
The Plan Leads to an Extensive Renewal of Teams 2011–2015 Workforce by function 2011 2011 (%) 2015 2015 (%) Evolution Sales, marketing 214 16% 306 20% x1.4 Services 451 34% 467 31% R&D 218 16% 265 18% x1.2 Purchasing, production, logistics 154 12% 157 10% Administration 301 22% 322 21% Total 1,338 1
Slide 29: Acceleration in Marketing Investments is Strengthening Lectra's Image
Acceleration in Marketing Investments is Strengthening Lectra’s Image Click to see online content Worldwide Furniture campaign: Make it with Brochures, White papers, Lectra Press releases Litepapers, infographics, banners, ... Videos Analyst Conference – Paris, February 12, 2016 29
Slide 30: Large-Scale International Events
Large-Scale International Events Lectra regularly organizes seminars based on its technological and service offer relating to the theme of change and transformation on its Bordeaux-Cestas campus It also welcomes customers from around the world to become familiar with the various aspects of Lectra’
Slide 31: A Zero Debt Company, Sustainable Dividend-Payment Policy
A Zero Debt Company, Development Internally Funded in Full, Sustainable Dividend-Payment Policy The roadmap’s objective was for annual free cash flow to continue to exceed net income*, enabling the company to pursue its dividend-payment policy while financing its future development, free of all fina
Slide 32: Analyst Conference agenda
Analyst Conference – Paris, February 12, 2016 Financial Results for Q4 2015 Financial Results for FY 2015 Strategic Roadmap for 2013–2016: Third Progress Report 2016 Outlook Analyst Conference – Paris, February 12, 2016 32
Slide 33: 2016 Outlook
2016 Outlook The company entered 2016 with even more solid operating fundamentals than in 2015 and an even stronger balance sheet Lectra newly formed sales teams should progressively gain momentum However, 2016 looks unpredictable once again Persistent macroeconomic, geopolitical and monetary un
Slide 34: Upcoming Financial Calendar
Upcoming Financial Calendar Q1 2016 Financial Results April 28, 2016 Annual Shareholders’ Meeting April 29, 2016 Q2 2016 Financial Results July 28, 2016 Q3 2016 Financial Results October 27, 2016 Analyst Conference October 28, 2016 FY 2016 Financial Results February 9, 2017 Analyst Conference Februa