Verisure Plc · OMXSTO:VSURE
Verisure — Verisure Midholding — Q1 2020 Earnings Presentation
17 slides from Verisure's earnings presentation, 2020
Slide 1: Earnings Call Presentation – Q1 2020
Verisure Midholding AB (publ) Earnings Call Presentation – Q1 2020 January 1 – March 31, 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 Q1 2020 – Austin Lally, CEO • Financial review of Q1 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: Q1 2020 Performance Highlights
Q1 2020 Performance Highlights Installations Portfolio Portfolio EBITDA Q1 2020 +142k 3.4m €295m +19% constant FX Q1 2019 +145k 3.0m €254m +16% actual FX Q1 2018 +124k 2.7m €213m €295m €254m Summary • Continued strong operational and financial performance in Q1 2020. €213m • Total revenues up +11% i
Slide 6: Robust growth in the customer portfolio, over 3.4 million
Robust growth in the customer portfolio, up +402k vs. PY to now over 3.4 million Net Portfolio Growth (NPG) 3,430 vs Q1 2019 3,347 NPG (000s) +402 +13.3% 3,236 NPG (% of portfolio) +13.3% 3,131 NPG Acceleration* -14.0% 3,028 (*) Q1 2020 NPG growth vs. Q1 2019. 2019 2019 2019 2019 2020 Q1 Q2 Q3 Q4 Q1
Slide 7: Added 142k new customers in the quarter
Added 142k new customers in the quarter. Impacted by COVID-19 in March -2.3% 161.0 151.4 153.7 145.2 +19.7% 141.9 +17.5% +17.3% vs. PY 134.7 +16.2% vs. PY vs. PY -2.3% +17.8% vs. PY vs. PY vs. PY 2018 2019 2019 2019 2019 2020 Q4 Q1 Q2 Q3 Q4 Q1 New installations (000s) PY=Prior Year 7
Slide 8: Maintaining strong customer retention
Maintaining strong customer retention % LTM 9.5 9.0 8.5 8.0 7.5 7.0 6.35 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 LTM attrition rate (%) 8
Slide 9: Continued growth in customer profitability
Continued growth in customer profitability ARPU* €41.4 Constant currency Reported currency €12.4 Q1 2020 Cost to Serve €26.0 growth* growth* (30%) ARPU €41.4 +1.9% -0.2% EPC €29.0 +4.2% +2.0% EPC* €29.0 (70%) (*) Growth vs. Q1 2019 Q1 2020 (*) ARPU: Average Revenue Per User per month (*) EPC: Portfo
Slide 10: Key Financial Metrics – Q1 2020
Key Financial Metrics – Q1 2020 2019 2020 (€m) % vs. PY Q1 Q1 Revenue 459 511 +11% Portfolio Services, +160 bps 254 295 +16% Adjusted EBITDA* 70.1% Total Adjusted EBITDA* 186 193 +4% 68.5% Cash Flows from 168 186 +11% Operating Activities 2019 2020 CapEx, total 136 144 +6% Q1 Q1 Net debt 4,935 5,110
Slide 11: Income Statement – Q1 2020
Income Statement – Q1 2020 +14% constant FX +11% actual FX Reported (€m) SDI* Reported excl. SDI €511m Revenue 511 511 11 €459m 5 79 Net operating expenses (318) (8) (326) 83 Adjusted EBITDA 193 (8) 185 Depreciation and (67) (40) (107) amortisation 370 421 Retirement of assets (20) - (20) Operating
Slide 12: Strong operating cash flow, €186 million for Q1 2020
Strong operating cash flow for the year, €186 million for Q1 2020 €m 300 295 (97) 200 186 5 (4) (13) 100 EBITDA EBITDA Change in Paid SDI & Other Cash Flow Portfolio Customer Working Capital Tax Operating Activities Acquisition Cash flow (€m) 12
Slide 13: Net debt bridge – Q1 2020
Net debt bridge – Q1 2020 (5,126) 186 (37) (2) (3) 17 (5,110) (145) Dec CF Operating Investing Net Paid M&A Lease liability Other March 2019 Activities Activities Interest (IFRS 16) 2020 Net Debt (€m) Net debt: Q1-2020 includes impact of IFRS 16 (lease liability) of EUR 137 million. Excluding impact
Slide 14: Leverage
Leverage 8.0x 7.3x 7.2x 7.2x 7.0x 7.0x 7.0x 7.0x 6.8x 6.9x 6.8x 6.7x 2017 2018 2019 2020 6.7x 6.7x 6.5x Q4 Q4 Q1 Q2 Q4 Q1 6.2x 6.2x Total 6.0x 5.9x leverage 5.5x SFA Net debt (€m)* 4,200 4,750 4,807 4,858 4,992 4,973 5.3x SFA Adjusted EBITDA 575 662 682 707 734 741 5.0x annualized (€m)* Leverage (To
Slide 15: Resilient Quality Growth
Resilient Quality Growth +13.3% (2.3%) 611 3,430 568 3,347 +17.1% 516 +12.8% 2,931 440 2,586 359 2,294 +18.7% 2,017 308 1,788 €1,180 265 1,626 237 €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 Q1 €390m €441
Slide 16: Q&A
Q&A . “) verisure
Slide 17: Thank you
Thank you