Signify Nv · EURONEXT:LIGHT
Signify Nv — Signify Nv Ord — Q2 2024 Earnings Presentation
21 slides from Signify Nv's earnings presentation, Jul 26, 2024
Slide 1: Q2 2024 results
Q2 2024 results July 26, 2024
Slide 2: Important information
Important information Forward-looking statements This release contains forward-looking statements that reflect the intentions, beliefs or current expectations and projections of Signify, including statements regarding strategy, estimates of sales growth and future operational results. By their natur
Slide 3: Content
Content Business and operational performance - Eric Rondolat Need to update photo Financial performance and highlights - Željko Kosanović Outlook and closing remarks - Eric Rondolat Q&A 3
Slide 4: Signify reported Q2 24 sales of EUR 1.5 billion, CSG of -8.4%
Signify reported Q2 24 sales of EUR 1.5 billion, CSG of -8.4% and an adj. EBITA margin of 7.9% Sales (in EURm) & comparable sales growth (in %) Key observations for Q2 24 CSG -8.6% -8.4% -7.8% -7.7% -10.1% • 136 million connected light points • LED-based sales were 86% of total sales • Nominal sales
Slide 5: The Professional Business reported a CSG of -8.3% and adj. EBITA margin of 8.1%
The Professional Business reported a CSG of -8.3% and an adj. EBITA margin of 8.1% Sales (in EURm) & comparable sales growth (in %) Key observations for Q2 24 CSG -4.2% -8.3% -4.2% -3.0% -7.6% • Comparable sales decline of 8.3% • Continued softness in Europe and China • Sequential improvements in Ag
Slide 6: The Consumer Business reported a CSG of -2.4% and adj. EBITA margin of 7.1%
The Consumer Business reported a CSG of -2.4% and an adj. EBITA margin of 7.1% Sales (in EURm) & comparable sales growth (in %) Key observations for Q2 24 CSG -11.1% -2.4% -6.0% -5.3% -5.7% • Comparable sales decline of 2.4% • Lower sales in China • Connected offers back to growth 312 297 316 387 29
Slide 7: The OEM Business reported a CSG of 0.1% and adj. EBITA margin of 10.9%
The OEM Business reported a CSG of 0.1% and an adj. EBITA margin of 10.9% Sales (in EURm) & comparable sales growth (in %) Key observations for Q2 24 CSG -28.2% 0.1% -22.8% -23.7% -7.4% • Comparable sales growth of 0.1% • Inventory levels of OEM distributors normalized 108 106 128 107 103 Q2 23 Q2 2
Slide 8: The Conventional Business reported a CSG of -27.6% and adj. EBITA margin of 15.7%
The Conventional Business reported a CSG of -27.6% and an adj. EBITA margin of 15.7% Sales (in EURm) & comparable sales growth (in %) Key observations for Q2 24 CSG -15.0% -27.6% -21.0% -29.6% -34.1% • Comparable sales decline of 27.6% • Impact of the fluorescent bans in Europe, which became effecti
Slide 9: Business highlights
Business highlights Signify Professional Consumer Announcing partnership Introducing new Launching new Philips Hue Launching Music Sync and with Mercedes-AMG UltraEfficient and 3D lights and app features expanding the WiZ LED PETRONAS Formula 1 Team printed innovations strip portfolio • Signify and
Slide 10: Brighter Lives, Better World 2025 – Q2 2024 results
Brighter Lives, Better World 2025 – Q2 2024 results Doubling our positive impact on the environment and society 2019 Q2 2024 2025 Baseline Result Target Carbon reduction over value chain Ahead of Better World Climate action 0 324 MT against Paris Agreement schedule Circular economy Circular revenues
Slide 11: Content
Content Business and operational performance - Eric Rondolat Financial performance and highlights - Željko Kosanović Outlook and closing remarks - Eric Rondolat Q&A 11
Slide 12: Adjusted EBITA margin decreased to 7.9%, as gross margin expansion was offset by under-absorption
Adjusted EBITA margin decreased to 7.9%, as gross margin expansion was offset by under-absorption of fixed costs As % of sales 8.3% -40 bps 7.9% +40 bps -0.1% 0.6% -2.2% 0.8% -1.5% 1.9% Q2 23 Volume Price/Mix COGS Indirect Costs Currency Other Q2 24 12
Slide 13: Working capital decreased to 7.9%, driven by lower inventories and receivables
Working capital decreased to 7.9%, driven by lower inventories and lower receivables, partly offset by lower payables and other working capital items In EURm / as % of sales 8.9% -100 bps 7.9% 640 -214 12 502 108 -43 Q2 23 Inventories Trade & other receivables Trade & other payables Other working Q2
Slide 14: Resilient H1 24 Adjusted EBITA margin and free cash flow despite topline decline
Resilient H1 24 Adjusted EBITA margin and free cash flow despite topline decline Sales & comparable sales Adjusted EBITA Free Cash Flow growth (in EURm and % of sales) (in EURm) (in EURm and %) 5.8% -8.9% -9.2% 10.0% 8.6% 8.1% 139 131 3,624 3,322 2,951 361 285 240 -54 H1 22 H1 23 H1 24 H1 22 H1 23 H
Slide 15: Content
Content Business and operational performance - Eric Rondolat Financial performance and highlights - Željko Kosanović Outlook and closing remarks - Eric Rondolat Q&A 15
Slide 16: Outlook
Outlook We remain cautious on Professional Europe and on China for the second semester, but % expect to see positive traction for Professional in the Americas, as well as the OEM and Consumer businesses. As a result, we maintain our guidance, with an Adjusted EBITA margin at the lower end of the 10.
Slide 17: Q&A
Q&A Need to update photo
Slide 18: Currency movements had a negative impact on sales and a positive impact on the Adjusted EBITA margin
Currency movements had a negative impact on sales and a positive impact on the Adjusted EBITA margin Q2 24 Sales FX Footprint (% of total) Key observations • Overall currency impact of -1.4% on sales, mainly from CNY depreciation. • Impact of +0.6% on the Adjusted EBITA margin. 18
Slide 19: Net income increased to EUR 63m
Net income increased to EUR 63m, mainly driven by lower adjusted items, lower non-cash losses on VPPAs and higher financial income From Adjusted EBITA to net income (in EURm) Key observations Q2 23 Q2 24 1 Non-recurring items by nature and are related to: Adjusted EBITA 136 118 • Gains from the move
Slide 20: Free cash flow decreased to EUR 51m
Free cash flow decreased to EUR 51m, mainly due to a higher restructuring payout and a higher cash outflow from working capital Free cash flow (in EURm) Key observations Q2 23 Q2 24 • Free cash flow of EUR 51m Income from operations 88 97 • Higher restructuring payout Depreciation and amortization 6
Slide 21: Signify
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