Slide 1: Verisure Midholding AB (publ) Earnings Call Presentation Q2 2022
Verisure Midholding AB (publ) Earnings Call Presentation | Q2 2022 August 24th, 2022
Slide 2: Disclaimer
Disclaimer This presentation and the investor conference call in which this presentation is used might contain forward looking statements, which are based on our current expectations and projections about future events. All statements other than statements of historical facts in this presentation in
Slide 3: Today's Presenters
Today´s Presenters Austin Lally Vincent Litrico Chief Executive Officer Chief Financial Officer 3
Slide 4: Agenda
Agenda • Key Developments • Financial Review • Questions & Answers 4
Slide 5: Performance Highlights
Performance Highlights Key Highlights Key Operating and Financial Metrics 2020 Q2 2021 Q2 2022 Q2 • Continued strong operational and financial performance in Q2 2022 New +95k +198k +206k Installations • Customer Portfolio continued to grow strongly and is now over 4.5 million, which represents a gro
Slide 6: Continuous Strong Customer Portfolio Growth
Continuous Strong Customer Portfolio Growth Customer Portfolio up +509k vs. Prior Year and Now Over 4.5 Million Customers Customer Portfolio (000) 4,529 +12.7% (+509k) 4,402 4,275 4,146 4,020 2021 2021 2021 2022 2022 Q2 Q3 Q4 Q1 Q2 QoQ Growth +136 +126 +129 +127 +127 (000) 6
Slide 7: Continuous Strong Customer Intake
Continuous Strong Customer Intake 206k New Installations in Q2 2022, up +3.7% vs. Prior Year New Installations (000) +3.7% 206 211 203 198 199 190 195 186 142 95 Q1 Q2 Q3 Q4 2020 2021 2022 7
Slide 8: Sustained Low Attrition
Sustained Low Attrition Attrition Rate (%) 9.5 9.0 8.5 8.0 7.5 7.0 6.65% 6.5 6.0 5.5 5.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 LTM Attrition (%) Quarterly Attrition (%) 8
Slide 9: Strong Unit Economics
Strong Unit Economics €43.5 €42.5 ARPU(1) €40.9 €11.5 €12.1 Cost to Serve €10.9 €26.0 (28%) (27%) (27%) Q2 2022 Growth ARPU €43.5 +2.4% €30.0 €31.0 €31.4 EPC(2) (73%) (73%) (72%) EPC €31.4 +1.5% 2020 2021 2022 Q2 Q2 Q2 Note: (1) ARPU: Average Revenue Per User per month; (2) EPC: Portfolio EBITDA Per
Slide 10: Key Financial Metrics
Key Financial Metrics Strong Financial Metrics Sustained High Portfolio Services Profitability €m Portfolio Services Adjusted EBITDA Margin (%) 2021 2022 % vs. Q2 Q2 PY Total Revenue 626 698 +12% 73.4% 72.8% 72.2% Portfolio Services 367 420 +15% Adjusted EBITDA (1) Total Adjusted EBITDA (1) 263 276
Slide 11: Income Statement
Income Statement Income Statement - Q2 2022 Strong Revenue Growth €m Total Revenue (€m) Reported SDI(1) Reported +12% excl. SDI(1) Total Revenue 698 698 698 626 22 Net Operating Expenses (422) (9) (432) 94 24 Total Adjusted EBITDA 276 (9) 267 489 99 D&A (119) (18) (137) 10 59 Retirement of Assets (2
Slide 12: Strong Operating Cash Flow Generation of €216m in Q2 2022
Strong Operating Cash Flow Generation of €216m in Q2 2022 Cash Flow from Operating Activities, Q2 2022, €m 420 (144) (32) 216 (19) (8) Portfolio Customer Change in Tax SDIs & Cash Flow EBITDA Acquisition Working Capital Paid Other Operating EBITDA Activities 12
Slide 13: Net Debt Bridge
Net Debt Bridge Net Debt Bridge, H1 2022, €m (9) (9) (18) (7,287) (144) (7,172) (399) 465 6.6x 6.4x Total Net Leverage Net Debt CF Operating CF Investing Net Paid Bank, Advisory Lease Other Net Debt Q4 2021 Activities Activities Interest Fees and Other Liability Q2 2022 Financial Items 13
Slide 14: Leverage Overview
Leverage Overview Evolution of L2QA Net Leverage 2021 - Q2 2022 L2QA Net Leverage Senior Secured Net Leverage Total Net Leverage 2021 2022 COVID-19 Normalized Total Net Leverage(1) Q1 Q2 Q3 Q4 Q1 Q2 €0.4Bn €0.1Bn €1.7Bn €0.1Bn dividend Arlo dividend NCA Net Debt (€m) 6,929 7,029 7,070 7,172 7,216 7,
Slide 15: Resilient High-quality Growth
Resilient High-quality Growth Strong Customer Intake Strong Portfolio Growth Quality Portfolio EBITDA Growth New Installations (000) Total Customer Portfolio (000) (€m) +6.2% +12.7% +16.4% +13.3% 4,275 4,529 770 817 3,764 647 3,347 611 2,931 516 2,586 440 2,294 +15.1% 359 1,659 1,477 +18.6% 1,256 20
Slide 16: Q&A
Q&A 16
Slide 17: Thank you
Thank you