Lectra SA · EURONEXT:LSS
Lectra SA — Q3 2015 Earnings Presentation
25 slides from Lectra SA's earnings presentation, Oct 30, 2015
Slide 1: Analyst Conference, Paris, October 30, 2015
ANALYST CONFERENCE Paris, October 30, 2015 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, October 30, 2015 Financial Results for Q3 2015 Financial Results for 9M 2015 2015 Outlook Unless stated otherwise, comparisons are at actual exchange rates. When mentioned, “like-for-like” comparisons between 2015 and 2014 correspond to 2015 figures restated at 2014 excha
Slide 3: Q3 2015: Orders Down 3% at Actual Exchange Rates and 9% Like-for-Like
Q3 2015: Orders Down 3% at Actual Exchange Rates and 9% Like-for-Like Orders for New Systems Orders for new systems only totaled €22.9 million (in millions of euros) A decrease of €0.8 million compared with Q3 2014 23.7 22.9 □ New software licenses: €5.4 million (-5%) □ CAD/CAM equipment: €13.5 mi
Slide 4: Q3 2015: A More Difficult than Expected Macroeconomic Context
Q3 2015: A More Difficult than Expected Macroeconomic Context The macroeconomic context has continued to deteriorate, mainly due to the Chinese economy’s confirmed slowdown The continued decline of euro against the yuan since the summer of 2014 significantly contributed to the Chinese economy’s sl
Slide 5: Q3 2015: Revenues and Income from Operations Up Sharply
Q3 2015: Revenues and Income from Operations Up Sharply Q3 2015 Q3 2015 Q3 2014 Change at actual Change like-for-like Actual At 2014 Actual exchange rates In millions of euros exchange rates €M % €M % Revenues 59.3 55.8 53.8 +5.5 +10% +2.1 +4% New systems 24.7 23.2 23.3 +1.4 +6% stable stable Recurr
Slide 6: Analyst Conference agenda
Analyst Conference – Paris, October 30, 2015 Financial Results for Q3 2015 Financial Results for 9M 2015 2015 Outlook Unless stated otherwise, comparisons are at actual exchange rates. When mentioned, “like-for-like” comparisons between 2015 and 2014 correspond to 2015 figures restated at 2014 excha
Slide 7: 9M 2015: Orders Increased by 4% at Actual Exchange Rates but Fell by 4% Like-for-Like
9M 2015: Orders Increased by 4% at Actual Exchange Rates but Fell by 4% Like-for-Like 9M 2015 9M 2014 9M 2013 Change Change Actual Actual Actual 9M 2015 / 9M 2015 / Orders (in millions of euros) 9M 2014 9M 2014 At actual Like-for-like exchange rates Total 70.3 67.5 63.4 +4% -4% Of which New software
Slide 8: Strong Rebound in North America, Drop in Asia-Pacific
Strong Rebound in North America, Drop in Asia-Pacific Change 9M 2015 vs. 9M 2014 at actual exchange rates. Highly contrasted situation1 Europe (38% of total orders): -3% Asia-Pacific (28%): -6% □ Of which China (13%): -8% 42% 49% 58% 51% Americas (27%): +33% □ North America (21%): + 44% □ Sout
Slide 9: 9M 2015: Very Strong Earnings Growth
9M 2015: Very Strong Earnings Growth 9M 2015 9M 2015 9M 2014 Change at actual Change like-for-like Actual At 2014 Actual exchange rates In millions of euros exchange rates €M % €M % Revenues 175.7 162.6 153.9 +21.8 +14% +8,6 +6% New systems 73.3 67.3 64.0 +9.3 +15% +3,2 +5% Recurring revenues 102.4
Slide 10: Growth in Revenues from New Systems Sales and in Recurring Revenues
Growth in Revenues from New Systems Sales and in Recurring Revenues Increase in total revenues +€21.8 million (+14%) Revenues from new systems sales: +15% New software licenses: €17.8 million (+12%) In millions of euros +15% CAD/CAM equipment: €44.9 million (+16%) Training and consulting: €9.1
Slide 11: Complex Effects Due to Strong Exchange Rate Fluctuations
Complex Effects Due to Strong Exchange Rate Fluctuations Lectra has significantly bolstered its competitive position worldwide Lectra has opted to maintain its R&D and manufacturing in France, while investing in innovation to enhance its competitiveness. Most of Lectra’s production costs are thus
Slide 12: China Remains One of Lectra's Growth Accelerators
China Remains One of Lectra’s Growth Accelerators Lectra’s business in China has been strongly impacted since the beginning of this year, following very strong growth that began in 2009 and which reached a historic peak in 2014 Orders for new systems have fallen, following increases of 45% and 39%
Slide 13: The "Made in China 2025" Plan Introduced by the Chinese Government
The "Made in China 2025" Plan Introduced by the Chinese Government Large Volume Manufacturing Innovation Manufacturer Power Leader Road-map 2015 2025 2045 Key Convergence of Computerization & Smart Manufacturing Highlights Industrialization Core Innovation-driven, Smart Digital, Inter-connected, Int
Slide 14: Acceleration in Marketing Investments
Acceleration in Marketing Investments Click to see online content Customer stories Brochures, White papers, Press releases Videos Analyst Conference – Paris, October 30, 2015 14
Slide 15: A Digital Strategy Tailored to China
A Digital Strategy Tailored to China Lectra.cn, a website that incorporates the best practices made for B2C Analyst Conference – Paris, October 30, 2015 15
Slide 16: The Increase in Recurring Revenues Finances the Increase in Costs Related to the Transformation Plan
The Increase in Recurring Revenues Finances the Increase in Costs Related to the Transformation Plan In millions of euros, at actual exchange rates +7.1 Positive impact of currency fluctuations +9.7 23.0 +4.1 Increase in recurring revenues 13.3 +3.0 Increase in revenues from new systems sales +1.2 I
Slide 17: Acceleration of R&D Investments
Acceleration of R&D Investments R&D investments 9M 2015 R&D costs increased by 5% to €16.5 million In millions of euros and represented 9.4% of revenues (€15.7 million and 22.7 10.2% in 9M 2014) 21.7 19.1 Net R&D costs1: €10.2 million (€9.4 million in 9M 2014) 18.2 17.4 260 engineers (18% of wor
Slide 18: Free Cash Flow Continues to Reflect the Pertinence of Lectra's Business Model
Free Cash Flow Continues to Reflect the Pertinence of Lectra’s 30,0 Business Model 30,0 In millions of euros 9M 2015 free cash flow: €14.8 million 20,7 Cash flow provided by operating activities: €19.6 million (including 16.020,7 16,0 16,0 16.0 16,0 16,0 16,016,0 €2.3 million increase in the worki
Slide 19: 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 September 30, 2015 In millions of euros, at December 31, except 2015 (at September 30) Shareholders’ equity: €105.3 million 100 €94.3 million at December 31, 2014 80 Net cash: €52.0 million €43.1 million at Dec
Slide 20: A Structurally Negative Working Capital Requirement, a Key Feature of Lectra's Business Model
A Structurally Negative Working Capital Requirement, a Key Feature of Lectra’s Business Model In millions of euros, at December 31, except 2015 (at September 30) Working capital requirement was negative at €0.5 million 20 This includes the receivable of €22.8 million on the 15 French tax administr
Slide 21: Lectra's Share Price Fell 26% since its Peak on July 30
Following an Increase of 81% Since October 1, 2014, Lectra’s Share Price Fell 26% since its Peak on July 30 Evolution from January 1, 2014 to October 28, 2015 Share price (in euros, daily closing price and index) October 28, 2015: €10.78 14.0 Lectra: +30% 9M 2015 14,0 □ High (July 30): €14.65 CA
Slide 22: Analyst Conference agenda
Analyst Conference – Paris, October 30, 2015 Financial Results for Q3 2015 Financial Results for 9M 2015 2015 Outlook Analyst Conference – Paris, October 30, 2015 22
Slide 23: 2015 Outlook
2015 Outlook The company indicated in its July 30, 2015 financial report That the shortfall in orders for new systems in the first half compared to expectations would not enable the company to meet the objectives it had set1 That it should however achieve the corresponding figures at actual exch
Slide 24: Confidence in Growth Prospects for the Medium Term
Confidence in Growth Prospects for the Medium Term Bolstered by the strength of its business model, even more robust operating fundamentals, a further reinforced balance sheet, and the relevance of its strategic roadmap, the company remains confident in its growth prospects for the medium term The t
Slide 25: Upcoming Financial Calendar
Upcoming Financial Calendar FY 2015 Financial Results February 11, 2016 Analyst Conference February 12, 2016 lectra.com Analyst Conference – Paris, October 30, 2015 25