Landis+gyr Group Ag · SIX:LAND
Landis+gyr — Investor Day (January 2020)
27 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: CEO Introduction
CEO Introduction Richard Mora, CEO 3 | © Landis+Gyr | January 27, 2020 | Capital Markets Day
Slide 4: Landis+Gyr at a Glance
Landis+Gyr at a Glance Group Net Revenues FY 2018 Asia-Pacific Swiss HQ with Frost & Sullivan More than USD 147m offices in 30+ countries Global AMI Company USD 1 Billion of the Year 2019 - the of self-funded R&D worldwide 8% 5th consecutive year since 2011 36% 56% Americas1 USD 986m 120+ EMEA Large
Slide 5: Landis+Gyr Management Presenting Today
Landis+Gyr Management Presenting Today Richard Mora Prasanna Venkatesan Susanne Seitz Steve Jeston Jonathan Elmer CEO1 EVP Americas1 EVP EMEA1 Head Asia-Pacific CFO1 21 years with Landis+Gyr 13 years with Landis+Gyr 1 year with Landis+Gyr 24 years with Landis+Gyr 23 years with Landis+Gyr Over 30 yea
Slide 6: Industry Dynamics, Strategy & Performance
Industry Dynamics, Strategy & Performance Richard Mora, CEO 6 | © Landis+Gyr | January 27, 2020 | Capital Markets Day
Slide 7: Industry Dynamics
Industry Dynamics 75 billion ∙ >50% ∙ >250% By 2025, 75 billion IoT of total electricity Increase in distributed solar devices are expected to be generation by 2040 coming PV capacity during the connected and sharing from low-carbon sources 2 period 2019-24, reaching data worldwide1 530 GW by 20243
Slide 8: 3D Factors Fueling Energy Grid Transformation
3D Factors Fueling Energy Grid Transformation Smart meters, as grid edge sensors, are EMBRACE NEW the foundation of enabling infrastructure BUSINESS MODELS for future energy distribution systems REDESIGN Decarbonization REGULATORY PARADIGM Decentralization DEPLOY ENABLING NEW CUSTOMER Digitalization
Slide 9: Strong Strategic Positioning
Strong Strategic Positioning The digital energy revolution is underway, enabled by the increasing endorsement of grid edge intelligence – and Landis+Gyr unleashes the true potential of change to transform the world of energy for the better #1 ∙ >100m ∙ 3 in global smart connected intelligent platfor
Slide 10: Capitalizing on Industry Dynamics with 3 Platforms for Growth
Capitalizing on Industry Dynamics with 3 Platforms for Growth Continued Global Leadership in 1 SMART METERING Enabling New Business Models Through 2 GRID EDGE INTELLIGENCE Leveraging IoT Expertise for Growth in 3 SMART INFRASTRUCTURE 10 | © Landis+Gyr | January 27, 2020 | Capital Markets Day
Slide 11: Geographic Diversity of Smart Metering Business Fueling Long-Term Growth
1 Geographic Diversity of Smart Metering Business Fueling Long- Smart Metering Term Growth and Transitioning into Grid Edge Intelligence Early Stage Mass Deployments Replacement With strong local presence poised …with leading role in many of the …well positioned to capture growth and for capturing e
Slide 12: The Digital Energy Revolution is Underway, and Grid Edge Intelligence is a Key Enabler
2 The Digital Energy Revolution is Underway, Grid Edge Intelligence and Grid Edge Intelligence is a Key Enabler Higher expectations of service delivery, more devices connected to the grid, and a higher awareness of and commitment to environmental protection Utility Cloud Cyber Security Services Grid
Slide 13: Grid Edge Intelligence Enabled Digital Energy Revolution
2 Grid Edge Intelligence Enabled Grid Edge Intelligence Digital Energy Revolution 1st Wave Model Grid Edge Intelligence Model • 15 min interval data • Real-time data • Outage detection and restoration Grid Edge • Over-the-air upgrade • Service connect switch • Enhanced functionality SENSORS • Demons
Slide 14: Grid Edge Gridstream Connect Apps
2 ® Grid Edge Gridstream Connect Apps Intelligence Similar to the mobile industry’s approach to applications, Landis+Gyr is creating a platform that allows us to build an open ecosystem of apps and developers — these innovative apps will directly benefit the utility and, in the end, their customers
Slide 15: Smart Infrastructure Offers Additional Avenues for Expansion
3 Smart Infrastructure Offers Additional Smart Infrastructure Avenues for Expansion Continue leveraging connectivity platforms to further integrate sensors and devices for use cases beyond smart metering and grid edge applications, building smart infrastructure ecosystem for sustainable energy futur
Slide 16: Relentless Focus on Operational Execution
Relentless Focus on Operational Execution ∙ 152m 19 ∙ 20m USD spend (adjusted) Current R&D sites, USD run rate savings on R&D in down from 23 in expected from Project FY 2018 FY 2017 Lightfoot in FY 2019 16 | © Landis+Gyr | January 27, 2020 | Capital Markets Day
Slide 17: Innovation Pipeline Benefits from Productivity Gains
Innovation Pipeline Benefits from Productivity Gains ∙ Getting the most out of every dollar spent Adjusted R&D / sales ratio R&D capacity has been growing at a lower 159 158 cost base driven by productivity gains from: 9.6% 152 • Investment in Platforms − Modularization of software and firmware 9.1%
Slide 18: Lightfoot to Deliver Annualized Savings of USD 25m in FY 2020 in EMEA
Lightfoot to Deliver Annualized Savings of USD 25m in FY 2020 in EMEA ∙ Shifting to an asset light supply chain : • Introduction of a dual source/site using existing EMS sites ∙ Project Status • Optimize/ramp-down/close selected manufacturing facilities • Manufacturing activities in Zug (CH) have be
Slide 19: Corporate Social Responsibility Priorities
Corporate Social Responsibility Priorities Nine material topics from the ESG 1 materiality analysis Environmental Social Governance • Energy efficiency & climate • Employee motivation • Data security and privacy protection • Occupational health and safety • Business integrity • Resource efficiency •
Slide 20: Landis+Gyr enabled 7 million tons of direct CO2 emission reduction in 2018
Landis+Gyr enabled 7 million tons of direct CO2 emission reduction in 2018 through the installed Smart Meter base Equal to 7x the CO2 Emissions of the City of Zurich in 2018 20 | © Landis+Gyr | January 27, 2020 | Capital Markets Day
Slide 21: Environmental Impacts of Smart Metering
Environmental Impacts of Smart Metering Number of functions and use cases proven to significantly contribute to overall reduction of CO2 Insights Remote Proactive alarming of Smart Metering in energy consumption reads and supply faults and outages leading supported increase awareness and switch mana
Slide 22: Improving Financial Performance
Improving Financial Performance Results speak to our ongoing efforts – strengthening the company’s market position and ∙ improving profitability – with all key performance metrics growing year on year. 14.5% 1'738 1'765 123.5 13.5% 12.0% 87.5 863 33.1 FY 2017 FY 2018 H1 FY 2019 FY 2017 FY 2018 H1 FY
Slide 23: 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 24: Capital Markets Day – Wrap Up
Capital Markets Day – Wrap Up Richard Mora, CEO 24 | © Landis+Gyr | January 27, 2020 | Capital Markets Day
Slide 25: Underlying Equity Growth Story
Underlying Equity Growth Story Landis+Gyr is a leader in an essential industry driving improved environmental outcomes globally Committed to delivering continuous improvement in our sustainability programs We are in a growing market – however the growth can be lumpy due to the size and timing of som
Slide 26: 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 27: 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 –