Landis+gyr Group Ag · SIX:LAND
Landis+gyr — H1 2021 Earnings Presentation
28 slides from Landis+gyr's earnings presentation, Oct 28, 2021
Slide 1: Half Year FY 2021 Earnings Presentation
Half Year FY 2021 Earnings Presentation October 28th, 2021 1 | © Landis+Gyr 2021 | October 28 th, 2021 | H1 FY 2021
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 2021
Business Performance H1 FY 2021 ▪ Order intake USD 1,786.9 million; record book-to-bill ratio of 2.55 (H1 FY 2020: 0.73) primarily due to major contract wins in Americas ▪ Record committed backlog of USD 3,235.6 million (up 55.5% YoY) ▪ Net revenue increased 9.1% 1 to USD 700.9 million driven by EME
Slide 4: Landis+Gyr Carbon Neutral by 2030
Landis+Gyr Carbon Neutral by 2030 4 || © ©Landis+Gyr Landis+Gyr2021 2021|| October October28 28thth, ,2021 2021|| H1 FY 2021
Slide 5: H1 FY 2021 Review
H1 FY 2021 Review National Grid Contract (US) True Energy TEPCO Power Grid Telia Acquisition Acquisition Contract (JP) Public Service Electric Contract with a South East Water Etrel Acquisition Enedis and Gas Co. (PSE&G) Swiss DSO (CH) Contract (AU) Contract (FR) Contract (US) Puget Sound Contract (
Slide 6: Major Contract Wins
Major Contract Wins – H1 FY 2021 Landis+Gyr will continue to provide Command Center (head-end system) for replacement (2021- 2024) of the world’s largest AMI system with 28.4 million meters installed - meter replacement cycle expected to start in 2025 20-year contract for modernization of grid netwo
Slide 7: 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 7 | © Landis+Gyr 2021 | October 28 th, 2021 | H1 FY 2021 * Subject to closing
Slide 8: Acquisitions & Transactions in H1 FY 2021
Acquisitions & Transactions in H1 FY 2021 Cost-Competitive Metering Platform* Managed Services Business ▪ Binding agreement to acquire 100% of the shares ▪ Nordic countries are service of Luna Elektrik Elektronik Sanayi ve Ticaret A.Ş., oriented markets expected to close by the end of 2021 ▪ Adding
Slide 9: Strategic Initiatives – Status Update
Strategic Initiatives – Status Update ▪ Digital Transformation Partnership to develop future proof cloud ▪ USD 9 million of revenue expected by 2023 - solutions and expand software and services offering OT Cybersecurity specialist for ‘Energy & Utilities’ ▪ Unified cloud-enabled HES platform driving
Slide 10: Supply Chain Situation
Supply Chain Situation H1 FY 2021 Impact ▪ USD ~40 million topline deferred due to supply chain constraints ▪ EBITDA results include incremental USD ~10.5 million supply chain cost ▪ Expecting increasingly challenging situation in H2 ▪ Types of components impacted include − Integrated Circuits (IC)
Slide 11: Americas | Key Developments in H1 FY 2021
Americas | Key Developments in H1 FY 2021 New Orders Technology & Market Activity ▪ Booked record order intake for half year, ~USD 1.2 ▪ Innovation focus on market leading devices, grid billion resulting in a USD 2.3 billion backlog. Overall, edge platforms, smart infrastructure sensors and a recor
Slide 12: EMEA | Key Developments in H1 FY 2021
EMEA | Key Developments in H1 FY 2021 New Orders Technology, Acquisitions & Partnerships ▪ Won Fluvius (BE) contract to supply 2.5 million E360 ▪ Acquisition of Turkish smart meter provider Luna electricity meters, 1 million residential smart gas meters signed, opening access to new markets and expa
Slide 13: APAC | Key Developments in H1 FY 2021
APAC | Key Developments in H1 FY 2021 Australia & New Zealand China ▪ Smart electricity meter roll-outs continue with good ▪ H1 year on year Sales improved driven by growth momentum with key customers in Heat meter sales and resilient Grid meter sales ▪ Launched updated smart electricity meter portf
Slide 14: Consolidated Results
Consolidated Results – H1 FY 2021 ▪ Order intake supported by major wins in Americas and EMEA ▪ Revenue recovery driven by easing installation/roll-out restrictions in EMEA; supply chain constraints impacting revenue growth ▪ Strong Adjusted EBITDA margin expansion due to product mix and operating l
Slide 15: Backlog / Order Intake
Backlog / Order Intake USD in millions Backlog ▪ Order Intake USD 1.8 billion driven by 55.5% major wins in Americas (National Grid, PSE&G, LG&E, TEPCO) and EMEA (Fluvius) 49.4% ▪ Book-to-Bill ratio of 2.55x (3.7x Americas; 1.6x EMEA; 1.1x APAC) resulting in record Backlog at USD 3.2 billion ▪ Conve
Slide 16: Net Revenue YoY Bridge
Net Revenue YoY Bridge – H1 FY 2021 USD in millions Americas ▪ North America revenue declined due to supply chain constraints, partially mitigated by Brazil, Japan and higher software/services EMEA ▪ Growth YoY driven by UK recovery and roll-outs in Sweden and Austria APAC ▪ Lower SEA/India shipment
Slide 17: Adjusted EBITDA YoY Bridge
Adjusted EBITDA YoY Bridge – H1 FY 2021 USD in millions ▪ Adjusted Gross profit increased due to higher volume in EMEA ▪ Adjusted Gross Profit margin expanded due to favorable mix and restructuring benefits, partially offset by higher supply chain cost ▪ YoY Adjusted Operating Expenses increased due
Slide 18: Adjustments to EBITDA
Adjustments to EBITDA – H1 FY 2021 ▪ Limited Restructuring Charges; H1 FY 2020 impact related to project Hermes closed in FY 2021 USD in millions H1 2021 H1 2020 Change Reported EBITDA 86.2 31.8 171.1% ▪ Warranty normalization adjustments of Adjustments (15.5) 18.3 n/a USD (7.2) million represent th
Slide 19: Cash Flow
Cash Flow – H1 FY 2021 ▪ Continued strong Operating Working Capital management despite higher volumes ▪ Continued stable warranty and warranty settlement cash attributable to lower payments for legacy component issues ▪ Other Cash Flow impacted by YoY changes in FX derivative valuation and timing of
Slide 20: Net Debt
Net Debt – H1 FY 2021 USD in millions ▪ Solid Balance Sheet, net debt position of USD ~79.3 million; 0.5x leverage ratio 0.5x ▪ Cash at hand as of September 30th of USD ~85.6 million ▪ Significant investment capacity remaining with available undrawn facilities of USD 411 million 0.05x ▪ Share buybac
Slide 21: Americas Segment
Americas Segment – H1 FY 2021 ▪ USD 1.2 billion Order intake results in USD in millions H1 FY 2021 H1 FY 2020 Change Order intake 1'214.8 197.1 516.3% 3.7x book-to-bill Committed Backlog 2'320.8 1'333.1 74.1% ▪ Revenue challenged by component Cha nge i n cons tant currency 74.4% Net revenue to exter
Slide 22: EMEA Segment
EMEA Segment – H1 FY 2021 ▪ ~USD 0.5 billion Order intake, USD in millions H1 FY 2021 H1 FY 2020 Change Order intake 486.0 195.8 148.2% including major win with Fluvius in Committed Backlog 803.9 663.2 21.2% Belgium Cha nge i n cons tant currency 18.5% Net revenue to external customers 300.1 213.9 4
Slide 23: APAC Segment
APAC Segment – H1 FY 2021 ▪ Strong Order intake despite USD in millions H1 FY 2021 H1 FY 2020 Change challenges in India due to COVID-19 Order intake 86.1 64.0 34.5% Committed Backlog 110.8 84.3 31.4% restrictions Cha nge i n cons tant currency 31.5% Net revenue to external customers 75.4 77.0 (2.1)
Slide 24: Guidance FY 2021
Guidance FY 2021 Net Revenues Organic growth between 7% and 11%; (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 10.5
Slide 25: th , 2021 © Landis+Gyr Landis+Gyr 2021
25 ||© © Landis+Gyr Landis+Gyr2021 | October | October 28 th, 28 2021| th, 2021 H1 FY | H1 2021 FY 2021
Slide 26: Key Messages
Key Messages ▪ Strong COVID-19 recovery resulted in record Book-to-Bill of 2.55, leading to record backlog in excess of USD 3.2 billion ▪ US Energy Infrastructure Investments of USD 100 billion expected to provide strong tailwinds for continuous recovery ▪ Establishing a high-performance culture wit
Slide 27: Contacts & Dates
Contacts & Dates Important Dates Contacts Release of FY 2021 Results: Eva Borowski May 5th, 2022 SVP Investor Relations & Corporate Communications Publication of Annual Report 2021 and Invitation to AGM 2022: Phone +41 41 935 6396 May 30th, 2022 Eva.Borowski@landisgyr.com Annual General Meeting 2022
Slide 28: 28 | © Landis+Gyr 2021 | manage energy better together | January 27 th
28 | © Landis+Gyr 2021 | manage energy better together | January 27 th, 2021 | CONFIDENTIAL – DRAFT VERSION – ENTIRE DECK UNDER REVIEW AND FOR INTERNAL DISCUSSION