Verisure Plc · OMXSTO:VSURE
Verisure — Verisure Midholding — Q3 2020 Earnings Presentation
17 slides from Verisure's earnings presentation, Sep 30, 2020
Slide 1: Verisure Midholding AB (publ) Earnings Call Presentation Q3 2020
Verisure Midholding AB (publ) Earnings Call Presentation – Q3 2020 July 1 – September 30, 2020
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: Agenda
Agenda • Development in KPIs during Q3 2020 – Austin Lally, CEO • Financial review of Q3 2020 – Vincent Litrico, CFO • Questions & answers 3
Slide 4: Austin Lally, CEO and Vincent Litrico, CFO
Austin Lally Vincent Litrico Chief Executive Officer Chief Financial Officer 4
Slide 5: Q3 2020 Performance Highlights
Q3 2020 Performance Highlights Installations Portfolio Portfolio EBITDA +18% constant FX Q3 2020 +211k 3.6m €319m +16% actual FX Q3 2019 +154k 3.2m €275m €319m Q3 2018 +128k 2.8m €227m €275m Summary €227m • Continued strong operational and financial performance in Q3 2020. €195m • Total revenues up
Slide 6: Portfolio up +387k vs. PY and now over 3.6 million customers
Portfolio up +387k vs. PY and now over 3.6 million customers Net Portfolio Growth (NPG) 3,623 vs Q3 2019 +12.0% 3,468 NPG (000s) +387 3,430 NPG (% of portfolio) +12.0% 3,347 NPG Acceleration* +47.3% 3,236 (*) Q3 2020 NPG growth vs. Q3 2019. 2019 2019 2020 2020 2020 Q3 Q4 Q1 Q2 Q3 Number of Customers
Slide 7: Added 211k new customers in Q3 2020, up +37% vs. 2019
Added 211k new customers in Q3 2020, up +37% vs. 2019 +37.3% 211 +37.3% vs. PY 161 151 154 +19.7% 142 +17.5% +17.3% vs. PY vs. PY vs. PY -2.3% vs. PY 95 -37.0% vs. PY 2019 2019 2019 2020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 New installations (000s) PY=Prior Year (2019) k=thousands 7
Slide 8: Maintaining low attrition
Maintaining low attrition % LTM 9.5 9.0 8.5 8.0 7.5 7.0 6.51 6.5 6.0 5.5 5.0 2014 2015 2016 2017 2018 2019 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 LTM attrition rate (%) 8
Slide 9: Continued strong growth in customer profitability
Continued strong growth in customer profitability ARPU* €41.2 €11.3 Constant currency Reported currency Cost to Serve Q3 2020 growth* growth* (27%) €26.0 ARPU €41.2 +2.1% +0.6% EPC €29.9 +5.7% +4.1% EPC* €29.9 (73%) (*) Growth vs. Q3 2020 Q3 2020 (*) ARPU: Average Revenue Per User per month (*) EPC:
Slide 10: Key Financial Metrics – Q3 2020
Key Financial Metrics – Q3 2020 2019 2020 (€m) % vs. PY Q3 Q3 Revenue 477 557 +17% Portfolio Services, +240 bps 275 319 +16% Adjusted EBITDA* 72.6% Total Adjusted EBITDA* 197 225 +15% 70.2% Cash Flows from 200 311 +55% Operating Activities 2019 2020 CapEx, total 142 178 +25% Q3 Q3 Net Debt 4,977 5,0
Slide 11: Income Statement – Q3 2020
Income Statement – Q3 2020 +18% constant FX +17% actual FX Reported (€m) SDI* Reported excl. SDI €557m Revenue 557 557 18 €477m Net operating expenses (332) (16) (348) 5 100 Adjusted EBITDA 225 (16) 209 80 Depreciation and (70) (40) (110) amortisation 392 439 Retirement of assets (23) - (23) Operati
Slide 12: Strong operating cash flow of €685m YTD September, up +29% vs. PY
Strong operating cash flow of €685m YTD September, up +29% vs. PY 923 (250) 80 685 (21) (46) Portfolio Customer Change in Tax SDI & Cash Flow EBITDA Acquisition Working Capital Paid Other Operating EBITDA Activities Cash Flow from Operating Activities (€m) PY=Prior Year (2019) YTD=Year To Date 12
Slide 13: Net debt bridge – Net debt YTD September 2020 down vs. Dec 2019
Net debt bridge – Net debt YTD September 2020 down vs. Dec 2019 (5,126) (2) (40) (5,046) (134) (430) 685 Net Debt CF Operating Investing Net Paid M&A Other Net Debt Dec 2019 Activities Activities Interest Sep 2020 Net Debt (€m) Note: Net Debt including IFRS 16 (€139m and €134m as of September 2020 a
Slide 14: Leverage Overview
Leverage Overview €1.0Bn €0.4Bn €0.1Bn 8.0x dividend dividend Arlo recap recap M&A 7.3x 7.2x 7.2x 7.0x 7.0x 7.0x 7.0x 6.8x 6.9x 2019 2020 6.8x 6.7x 6.7x 6.7x 6.5x Q1 Q2 Q3 Q4 Q1 Q2 Q3 6.2x 6.2x 6.1x 6.0x 5.9x SFA Net Debt 5.5x 5.5x 4,808 4,859 4,851 4,994 4,974 5,002 4,909 (€m)* 5.3x SFA Adjusted 5.
Slide 15: Resilient high quality growth
Resilient high quality growth +12.0% 611 609 3,623 +17.1% +12.8% 3,347 516 2,931 440 2,586 359 2,294 +17.6% 308 2,017 265 1,626 1,788 €1,275m 237 €1,075m +19.6% €891m €760m €630m 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020 €522m FY FY FY FY FY FY FY LTM FY FY FY F
Slide 16: Q&A
Q&A . verisure
Slide 17: Thank you
Thank you