Landis+gyr Group Ag · SIX:LAND
Landis+gyr — Investor Day (January 2020)
17 slides from Landis+gyr's investor day presentation, Jan 27, 2020
Slide 1: Capital Markets Day
Capital Markets Day Zurich, January 27, 2020 1 | © Landis+Gyr | January 27, 2020 | Capital Markets Day
Slide 2: Disclaimer
Disclaimer Forward-looking information Presentations given during the Landis+Gyr 2020 Capital Markets Day include forward-looking information and statements including statements concerning the outlook for our businesses. These statements are based on current expectations, estimates and projections a
Slide 3: Finance
Finance Name, Title Jonathan Elmer, CFO 3 | © Landis+Gyr | January 27, 2020 | Capital Markets Day
Slide 4: Group Performance: Revenue Growth and Operational Improvements Drive Margins Higher
Group Performance: Revenue Growth and Operational Improvements Drive Margins Higher USD in millions ∙ FY 2019 H1: Net Revenues Development 1'659 1'738 1'765 • Group: +3.4% growth y-o-y in constant currency • Americas: Impacted by roll-off of two major 14.5% 13.5% projects 12.7% 12.0% • EMEA: UK cont
Slide 5: Americas Performance: Resilient EBITDA Margins Despite Some Top-line Headwinds
Americas Performance: Resilient EBITDA Margins Despite Some Top-line Headwinds USD in millions ∙ FY 2019 H1: Net Revenues Development 972 986 • H1 sales are lower by -4.1% in constant currency 931 compared to previous year primarily due to the roll-off of two major contracts in North America 21.0% 2
Slide 6: EMEA Performance: Turnaround Under Way as Revenues and Margins Grow
EMEA Performance: Turnaround Under Way as Revenues and Margins Grow USD in millions ∙ FY 2019 H1: Net Revenues Development 627 633 • +10.5% growth year-on-year in constant 588 7.6% currency • H1 revenue growth driven by UK; expected Brexit destocking did not materialize 3.1% 306 FY 2019 H1: Adjusted
Slide 7: Brexit Uncertainties
Brexit Uncertainties UK remains the largest market in EMEA and 2 nd largest market globally for Landis+Gyr ∙ Potential Implications of Brexit ∙ Mitigation measures • WTO terms would result in import duties of • Landis+Gyr UK has registered for transitional 1.1% on electricity and 2.1% on gas meters
Slide 8: Asia-Pacific Performance: Strong Margin Improvement as Top-line Grows
Asia-Pacific Performance: Strong Margin Improvement as Top-line Grows on Lower Cost Base USD in millions ∙ FY 2019 H1: Net Revenues Development 140 138 147 6.1% • +32% growth year-on-year in constant currency • H1 revenue growth driven by higher revenue in Australia, in SEA (CLP Power contract) and
Slide 9: Asset Light Business Model Increases Operational Flexibility
Asset Light Business Model Increases Operational Flexibility Capex / sales ratio 43 Transition to outsourced providers continues 40 2.6% 38 to progress: 2.2% 2.3% • Manufacturing restructuring largely completed in EMEA (Project Lightfoot) 1.5% • Outsourcing improves operational flexibility • Benefit
Slide 10: Cash Flow Seasonality – Free Cash Flows Excluding M&A
Cash Flow Seasonality – Free Cash Flows Excluding M&A Historical Free Cash Flow (excl. M&A) • H2 has historically been much USD in millions stronger in terms of Free Cash Flow (excl. M&A) generation FY 2017: FY 2018: FY 2019 guidance: 87.5 123.5 120 – 135 • Warranty settlement cash outs in FY 2017 a
Slide 11: Low Net Debt Contributes to a Solid Balance Sheet Position
Low Net Debt Contributes to a Solid Balance Sheet Position USD in millions • Net debt down 10.0% to 0.5x 0.4x USD 99.4 million • Slightly lower net debt / trailing twelve month Adjusted EBITDA ratio of 0.4x • Dividend payment of USD 94.0 million made in July 2019 • Repurchased 277,166 shares for USD
Slide 12: Capital Allocation Continues to Focus on Shareholder Value
Capital Allocation Continues to Focus on Shareholder Value Invest in organic growth A sustainable dividend of Potentially invest Return capital to support and develop approximately 75% of Free in M&A targets that to shareholders core business Cash Flow (excl. M&A) align to strategy In FY 2018 In Jul
Slide 13: Guidance for FY 2019
Guidance for FY 2019 USD USD ~1- 4% 240 - 255 120 - 135 million million Net revenues growth ∙ ∙ Group Adjusted EBITDA ∙Free Cash Flow of approximately 1- 4% in to be between (excl. M&A) to be constant currency USD 240 million between USD 120 million and USD 255 million and USD 135 million ∙ unchange
Slide 14: Mid-term (FY 2022) Guidance
Mid-term (FY 2022) Guidance Net Revenues Mid-single digit CAGR in constant currency with growth backend (Relative to FY 2018) loaded towards FY 2022 due to regulatory delays in the US Adjusted EBITDA margin between 13.5% and 14.5% Adjusted EBITDA of net revenues Free Cash Flow Above USD 150 million
Slide 15: Positive Mid-term Outlook Projections…but with Near Term Challenges in the Americas
Positive Mid-term Outlook Projections…but with Near Term Challenges in the Americas ∙ Group Mid single digit compounded annual • Net Revenues: Mid-single digit CAGR in constant currency with growth Net Revenues growth backend loaded towards FY 2022 due to regulatory delays in the US USD in millions
Slide 16: Glossary
Glossary AMI Advanced metering infrastructure IPv6/v4 Internet protocol version 6/4 CAGR Compound Annual Growth Rate JV Joint venture CMD Capital Markets Day KPI Key performance indicator CO2 Carbon dioxide MDMS Meter data management system CPP Critical peak pricing NB-IoT Narrowband IoT CSR Corpora
Slide 17: Dates and Contacts
Dates and Contacts Contact Investor Important Dates CMD Documents Relations Release of FY 2019 Results: Stan March – New York May 6, 2020 SVP Group Communications and Investor Relations Publication of Phone +1 678 258 1321 Annual Report 2019: Stan.March@landisgyr.com May 28, 2020 Christian Waelti –