Signify Nv · EURONEXT:LIGHT
Signify Nv — Signify Nv Ord — Q3 2023 Earnings Presentation
21 slides from Signify Nv's earnings presentation, Oct 27, 2023
Slide 1: Q3 2023 results
Q3 2023 results October 27, 2023
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 - Javier van Engelen Outlook & closing remarks - Eric Rondolat Q&A 3
Slide 4: Third quarter 2023 highlights
Third quarter 2023 highlights • Brighter Lives, Better World 2025 sustainability program, circular revenues 2025 target already reached • Continued softness in consumer connected, OEM and China putting pressure on topline • Adjusted EBITA margin expansion driven by continued gross margin recovery an
Slide 5: Signify reported Q3 sales of EUR 1.6 billion, CSG of -7.8% and adj. EBITA margin of 10.7%
Signify reported Q3 23 sales of EUR 1.6 billion, CSG of -7.8% and an adj. EBITA margin of 10.7% Sales (in EURm) & comparable sales growth (in %) Key observations for Q3 23 CSG 4.3% -7.8% -8.8% -9.1% -8.6% • 121 million connected light points (Q2 23: 119 million) • LED-based sales were 85% of total s
Slide 6: Digital Solutions reported a CSG of -4.3% and an adj. EBITA margin of 11.7%
Digital Solutions reported a CSG of -4.3% and an adj. EBITA margin of 11.7% Sales (in EURm) & comparable sales growth (in %) Key observations for Q3 23 CSG 12.0% -4.3% -5.8% -8.7% -5.7% • Comparable sales decline of 4.3% • High base of comparison of 12.0% growth • Continued strength in professional
Slide 7: Digital Solutions highlights
Digital Solutions highlights Introducing Interact Space Installing new lighting in Providing Algam EKO with Lighting up community analysis the Meny supermarket in energy-efficient LED volleyball courts in Assam, Rønne, Denmark lighting India • Launched Interact Space • The new solution includes • In
Slide 8: Digital Products reported a CSG of -10.3% and an adj. EBITA margin of 9.9%
Digital Products reported a CSG of -10.3% and an adj. EBITA margin of 9.9% Sales (in EURm) & comparable sales growth (in %) Key observations for Q3 23 CSG -2.5% -10.3% -12.9% -10.1% -12.1% • Comparable sales decline of 10.3% • Continued weakness in consumer connected, LED Electronics and Klite 609 5
Slide 9: Digital Products highlights
Digital Products highlights Integrating smart lighting, Developing branded 3D- Launching Ultra Efficient A- Introducing new WiZ sensors, and cameras to printed pendant lamps class Philips LED SON-T products help secure your home with Werder Bremen lamps • Introduced new Philips Hue • Signify and Wer
Slide 10: Conventional Products reported a CSG of -21.0% and an adj. EBITA margin of 21.2%
Conventional Products reported a CSG of -21.0% and an adj. EBITA margin of 21.2% Sales (in EURm) & comparable sales growth (in %) Key observations for Q3 23 CSG -9.5% -21.0% -11.4% -8.5% -15.0% • Comparable sales decline of 21.0% • Volume decline in line with expectation 195 145 203 186 160 Q3 22 Q3
Slide 11: Brighter Lives, Better World 2025 – Q3 2023 results
Brighter Lives, Better World 2025 – Q3 2023 results Doubling our positive impact on the environment and society 2019 Q3 2023 2025 Baseline Result Target Carbon reduction over value chain Better World Climate action 0 On track 324 MT against Paris Agreement Circular economy Circular revenues 16% 32%
Slide 12: Content
Content Business and operational performance - Eric Rondolat Need to update photo Financial performance - Javier van Engelen Outlook & closing remarks - Eric Rondolat Q&A 12
Slide 13: Adjusted EBITA margin increased to 10.7%, driven by COGS improvements and positive mix
Adjusted EBITA margin increased to 10.7%, driven by COGS improvements and positive mix, partly offset by under-absorption of fixed costs As % of sales 10.4% +30 bps 10.7% +230 bps -0.2% 0.1% 0.0% 1.8% -1.9% 0.1% 0.4% Q3 22 Volume Mix Price COGS Indirect Costs Currency Other Q3 23 13
Slide 14: Working capital decreased to 9.1%, mainly driven by lower inventories and receivables
Working capital decreased to 9.1%, mainly driven by lower inventories and receivables, partly offset by lower payables In EURm / as % of sales 10.7%1 -160 bps 9.1% 820 632 -449 51 382 -172 Q3 22 Inventories Trade & other receivables Trade & other payables Other working Q3 23 capital items 14 1Includ
Slide 15: Content
Content Business and operational performance - Eric Rondolat Need to update photo Financial performance - Javier van Engelen Outlook & closing remarks - Eric Rondolat Q&A 15
Slide 16: Outlook
Outlook • Signify confirms its guidance for the full year 2023 and expects % • • Adjusted EBITA margin of 9.5-10.5% Free cash flow generation at the higher end of the 6-8% range 16
Slide 17: Q&A
Q&A Need to update photo
Slide 18: Currency movements had a negative impact on sales and neutral impact on the Adjusted EBITA margin
Currency movements had a negative impact on sales and neutral impact on the Adjusted EBITA margin Q3 23 Sales FX Footprint (% of total) Key observations • Overall currency impact of -6.2% on sales, mainly from USD depreciation • Neutral currency impact on the Adjusted EBITA margin 18
Slide 19: Net income decreased to EUR 83m, mainly due to lower income from operations
Net income decreased to EUR 83m, mainly due to lower income from operations From Adjusted EBITA to net income (in EURm) Key observations Q3 22 Q3 23 1 Non-recurring by nature and relate to: Adjusted EBITA 199 177 • Impairment and other non-cash charges related to - Restructuring -6 -27 operations in
Slide 20: Free cash flow increased to EUR 152m
Free cash flow increased to EUR 152m, as a lower income from operations was compensated by a cash inflow from working capital Free cash flow (in EURm) Key observations Q3 22 Q3 23 • Free cash flow of EUR 152m Income from operations 161 131 • Cash inflow from working capital Depreciation and amortiza
Slide 21: Sianty
Sianty