Half Year Report 2023
Contents
Letter to Shareholders | 3 |
H1 2023 at a Glance | 5 |
Key Figures | 6 |
Interim Consolidated Financial Statements (unaudited) | 7 |
Supplemental Reconciliations and Definitions | 28 |
Information for Shareholders | 32 |
Letter to Shareholders
Dear Landis+Gyr Shareholders,
As an essential business offering mission-critical infrastructure equipment and services, we continue to be committed to our customers' success and we are pleased to say that the increasing momentum of the energy transition allows us to look into the future optimistically. Paired with steadily decreasing component cost, our strategic transformation positions us well to deliver sustained profitable growth going forward and we are convinced that we have the right strategic focus to continue to deliver shareholder value in the years to come. Positioned in the sweet spot of the energy transition, we were able to deliver a solid performance for the first half of financial year 2023 and continue to develop and deliver leading innovation as the demand for energy efficiency solutions continues to increase.
Empowering Customers & End Consumers
Energy efficiency and grid resiliency have become mainstream topics amongst rising energy prices and concerns about grid stability, especially as we are heading into winter. With an increasing number of renewable energy resources and global efforts to accelerate electrification initiatives to meet climate goals, we see an increased need for intelligence at the grid edge to cope with the changing requirements on the grid infrastructure. It is our mission to manage energy better, and as such, we are proud to enable utilities and end consumers with leading edge solutions to manage energy consumption more efficiently and enable the orchestration of energy demand and supply to achieve a sustainable balance. As a result, we enable grid resilience, empower customers and end consumers to drive energy efficiency, and offer critical solutions to decarbonize the grid.
The benefits of our solutions are recognized by our customers in the strongest possible way through continued high orders, which drives us to continue to innovate leading- edge energy efficiency and flexibility solutions, enabling our customers and end consumers to manage energy better. The current energy crisis further amplifies the need for smarter grids as governments, communities, and utilities across the world, and particularly in Europe, are facing unprecedented challenges to ensure safe, reliable, and sufficient supply and delivery of energy. Now more than ever, the smart management of power grids is crucial to ensure reliable power distribution, and we are proud to provide products, software, and services to alleviate these challenges. Our customers continue installations of critical infrastructure, reflected in our continued high backlog, and demonstrating the recession-resilient nature of Landis+Gyr.
Landis+Gyr - Half Year Report 2023 | 3 |
Our three strategic pillars Smart Infrastructure, Grid Edge Intelligence and Smart Metering are the foundation to drive profitable growth and our comprehensive portfolio of products and services uniquely positions us to empower utilities, end consumers, and whole communities by helping them to manage resources in a more informed and sustainable way and, as a result, reduce their CO2 footprint and conserve water. As we continue to transform our Company, we have further expanded our reach in Smart Infrastructure and Grid Edge Intelligence solutions. Just recently, the addition of Thundergrid, a turnkey service provider in the electric vehicle infrastructure market, further strengthens our position in this important segment. Further, the successful integration of previous acquisitions solidified our position in the EV infrastructure solutions and cybersecurity markets and allowed us to expand our core Smart Metering with a cost-competitive metering platform. In addition, our co-innovation partnership with Google Cloud enables us to expand our portfolio of data analytics software and services to drive energy efficiency and water conservation solutions. As a leader in resource efficiency management, we continue to push new opportunities including demand flexibility management and integrated EV solutions. Combined with data analytics in the Cloud, powered by Google's artificial intelligence (AI) and machine learning (ML) expertise, we enable intelligent grid systems, which play a critical role in the planning, management, and maintenance of power grids around the world. Uniquely positioned through our global leading portfolio and footprint, we offer innovative end-to-end solutions, which enable grid resiliency and energy efficiency benefits for our customers and end consumers alike.
First Half Financial Year 2023 Results
The results of the first half of financial year 2023 reflect both the innovation leadership as well as the easing of the supply chain constraints. Order intake of USD 958.1 million for the first half of FY 2023 increased by 22.5% in constant currency compared with the previous year, due to a sustained strong order intake driven by major contract wins in the Americas and EMEA regions, resulting in a continued high committed backlog of over USD 3.7 billion, and a book-to-bill ratio of 1.0. Net revenue increased by 32.1% in constant currency, to USD 970.5 million during the first half of financial year 2023 compared to the corresponding prior period. Adjusted EBITDA increased by 122.0% year-over-year to USD 108.1 million. The strong increase in Adjusted EBITDA was almost entirely attributable to significantly higher volume combined with slightly lower supply chain costs and partially offset by higher adjusted operating expenses, translating into an Adjusted EBITDA margin of 11.1%, an increase of 440 basis points from 6.7% in the first half of FY 2022.
Free Cash Flow (excl. M&A) was USD 5.1 million, an increase of USD 44.0 million, when compared to USD (38.9) million in the first half of FY 2022. We managed to maintain a solid balance sheet with low net debt to trailing twelve months Adjusted EBITDA ratio of 0.67x.
Net income attributable to shareholders was USD 41.2 million, resulting in a diluted earnings per share amount of USD 1.43.
Landis+Gyr - Half Year Report 2023 | 4 |
Outlook for FY 2023
We reconfirm our outlook for FY 2023, provided at the Capital Markets Day in Janu- ary 2023 and confirmed in May 2023, assuming broadly unchanged global economic conditions. As already communicated, we expect a continuation of the strong net revenue trend in FY 2023, resulting in a low double-digit growth compared to FY 2022. With an anticipated further improvement of the supply chain cost situation, we now expect the Adjusted EBITDA margin to come in around the upper end of the initially guided range of between 9% and 11% of net revenue. Free Cash Flow (excl. M&A) is forecasted to be between USD 60 million to USD 90 million as the elevated inventory situation is expected to partially normalize in the second half of FY 2023 but will remain above historical averages to fulfill customer orders of large contracts won. The progressive dividend policy is confirmed.
Enabling Sustainable Resource Management
We continue to elevate our efforts to decarbonize grids around the world and optimize our own operations to have a meaningful sustainable impact.
In FY 2022, Landis+Gyr's Smart Metering base ensured the avoidance of over 9.5 million tons of CO2, and we strive to further increase our positive impact on the environment through consistently high investments in innovative technologies and solutions. In addition, to drive measurable progress even further in our Environmental, Social and Governance areas, we continue to link 20% of our short-term incentive (STI) for all bonus-eligible employees to ESG targets, driving sustainable progress in support of the UN Sustainable Development Goals.
Furthermore, the Science Based Target initiative (SBTi) has assessed our near and long-term emission reduction targets against their rigorous criteria and has recently granted approval. As a Company committed to decarbonizing the grid, our targets are in line with the most ambitious pathway (1.5°C), the recommendations of the Paris Climate Accord. We have committed to reach net-zero greenhouse gas emissions across the value chain by 2050. Furthermore, we have committed to reduce scope 1 and 2 greenhouse gas (GHG) emissions by 42% until 2030 (versus 2021 base year) and to reduce scope 3 emissions also by 42% until 2030.
Landis+Gyr is now part of a group of over 3,000 globally leading companies with approved targets, who are taking action to combat climate change and move towards a greener, more sustainable future. As a leader in the decarbonization efforts, we are part of the first group of companies to receive approval for net-zero targets.
Passion & Commitment
Our teams around the world are motivated and driven by the ambition to provide leading energy efficiency solutions. We proudly serve our customers in partnership to empower people around the world to manage energy better.
Especially in light of the challenges presented by geopolitical tensions, our employees have demonstrated a high level of dedication and passion towards our customers' success and each other that deserves recognition. Therefore, we would like to thank our over 7,300 employees around the globe for their continued dedication, passion, and entrepreneurial spirit to solidify our leading position and ensure continuous leading-edge innovation, customer satisfaction, and speed to market.
Our customers' ambitious goals to serve communities around the globe with safe and reliable energy and to decarbonize the grid, inspire us every day and we would like to thank our customers and partners for their continued trust and partnership.
We are excited about our transformational journey as we continue to execute on our strategy with a strong focus on offering leading energy efficiency technology to our customers, expanding our strong partnerships, driving profitable growth and, thus, contributing to sustainable global development.
On behalf of all of us at Landis+Gyr, we thank you, our shareholders, for your continued support of and ownership in Landis+Gyr, and that you have joined us in driving our mission to manage energy better - together.
Yours sincerely,
Andreas Umbach | Werner Lieberherr |
Chair | Chief Executive Officer |
Landis+Gyr - Half Year Report 2023 | 5 |
H1 2023 at a Glance
Net Revenue Split
9%
33%
58%
Americas | Americas | ||
EMEA | EMEA | Regional HQ | |
APAC | APAC | R&D Centers / Manufacturing | |
Gold rating (top 5%) | ESG Risk Rating of | Company grade: B+ | AA-rated since 2018 | Prime rating (top decile) |
7.4 (Negligible Risk) |
Key Figures
Committed Backlog | Net Revenue |
3,730.5 | 970.5 |
Landis+Gyr - Half Year Report 2023 | 6 |
KEY FIGURES
Six months ended September 30, | CHANGE | |||||
(in million USD, | Constant | |||||
unless otherwise indicated) | 2023 | 2022 | USD | Currency |
in million USD | in million USD | ||||||||||||||||||
970.5 | |||||||||||||||||||
952.7 | |||||||||||||||||||
3,748.6 | 3,730.5 | ||||||||||||||||||
3,479.7 | |||||||||||||||||||
3,388.6 | |||||||||||||||||||
3,235.6 | |||||||||||||||||||
763.1 | |||||||||||||||||||
728.7 | |||||||||||||||||||
700.9 | |||||||||||||||||||
9-21 | 3-22 | 9-22 | 3-23 | 9-23 | H1-21H2-21H1-22H2-22H1-23 |
Adjusted EBITDA | Free Cashflow |
108.1 | (excluding M&A)1 |
in million USD | 5.1 |
in million USD |
91.2 | 108.1 | 41.6 | 47.4 | |
70.8 | 76.2 | |||
48.7 | 17.0 | |||
5.1 | ||||
H1-21H2-21H1-22H2-22H1-23 | H1-21H2-21H1-22H2-22H1-23 |
Order Intake | 958.1 | |
Committed Backlog | 3,730.5 | |
Net revenue | 970.5 | |
Reported EBITDA | 99.8 | |
Adjusted EBITDA | 108.1 | |
Adjusted EBITDA | ||
as % of net revenue | 11.1% | |
Operating income | 64.2 | |
Net income attributable to | ||
Landis+Gyr Group AG | ||
Shareholders | 41.2 | |
Earnings per share - | ||
basic (USD) | 1.43 | |
Earnings per share - | ||
diluted (USD) | 1.43 | |
Free Cash Flow excluding M&A1 | 5.1 | |
Cash provided by operating | ||
and investing activities | 5.1 | |
Net Debt | 134.2 | |
NET REVENUE TO EXTERNAL CUSTOMERS | ||
Americas | 564.8 | |
EMEA | 321.6 | |
Asia Pacific | 84.1 | |
Total | 970.5 | |
ADJUSTED EBITDA | ||
Americas | 89.9 | |
EMEA | 6.7 | |
Asia Pacific | 8.6 | |
Corporate unallocated | 2.9 | |
Total | 108.1 | |
773.2 | 23.9% | 22.5% | ||
3,479.7 | 7.2% | 5.4% | ||
728.7 | 33.2% | 32.1% |
51.095.7%
48.7122.0%
6.7%-
10.5511.4%
186.5(77.9%)
6.58(78.3%)
6.57(78.2%)
(38.9)-
143.1-
79.369.2%
391.7 | 44.2% | 44.3% | ||
248.0 | 29.7% | 24.9% | ||
89.0 | (5.5%) | (1.7%) | ||
728.7 | 33.2% | 32.1% | ||
47.788.5%
(9.4)-
6.826.5%
3.6(19.4%)
48.7 122.0%
-38.9 |
1 Net cash provided by operating activities, minus net cash used in investing activities, excluding merger & acquisition activities.
Due to rounding, numbers presented may not add to the totals provided.
Interim Consolidated | 7 |
Financial Statements (unaudited) |
Interim Consolidated Statements of Operations | 8 |
Interim Consolidated Statements of Comprehensive Income | 8 |
Interim Consolidated Balance Sheets | 9 |
Interim Consolidated Statements of Changes in | |
Shareholders Equity | 10 |
Interim Consolidated Statements of Cash Flows | 11 |
Notes to Interim Consolidated Financial Statements | 12 |
Interim Consolidated Statements of Operations (unaudited)
SIX MONTHS ENDED SEPTEMBER 30,
Landis+Gyr - Half Year Report 2023 | 8 |
Interim Consolidated
Statements of Comprehensive
Income (unaudited)
SIX MONTHS ENDED SEPTEMBER 30, |
USD in thousands, except per share data
Net revenue
Cost of revenue
Gross profit
Operating expenses
Research and development
Sales and marketing
General and administrative
Amortization of intangible assets
Operating income
Other income (expense), net
Income before income tax expense
Income tax expense
Net income (loss) before noncontrolling interests and equity method investments
Net income from equity investments
Net income before noncontrolling interests
Net loss attributable to noncontrolling interests
Net income attributable to
Landis+Gyr Group AG Shareholders
Earnings per share:
Basic
Diluted
Weighted average number of shares used in computing earnings per share:
Basic
Diluted
2023
970,466
676,617
293,849
94,758
38,985
78,062
17,866
64,178
(12,487)
51,691
(11,171)
40,520
-
40,520
(718)
41,238
1.43
1.43
28,868,796
28,936,263
2022
728,711
510,851
217,860
84,409
35,963
67,099
19,848
10,541
18,348
28,889
(72,375)
(43,486)
229,717
186,231
(248)
186,479
6.58
6.57
28,837,007
28,846,280
USD in thousands | 2023 | 2022 | ||
Net income before noncontrolling interests | 40,520 | 186,231 | ||
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments, | ||||
net of income tax expense | (6,372) | (54,345) | ||
Pension plan benefits liability adjustments, | ||||
net of income tax expense | (6,606) | 4,154 | ||
Comprehensive income | 27,542 | 136,040 | ||
Net loss attributable to noncontrolling interests, net of tax | 718 | 248 | ||
Foreign currency translation adjustments | ||||
attributable to the noncontrolling interests | 84 | 258 | ||
Comprehensive income attributable to | ||||
Landis+Gyr Group AG Shareholders | 28,344 | 136,546 |
The accompanying notes are an integral part of these Interim Consolidated Financial Statements.
The accompanying notes are an integral part of these Interim Consolidated Financial Statements.
Landis+Gyr - Half Year Report 2023 | 9 |
Interim Consolidated
Balance Sheets (unaudited)
USD in thousands, except share data | September 30, 2023 | |
ASSETS | ||
Current assets | ||
Cash and cash equivalents | 106,227 | |
Accounts receivable, net of allowance for doubtful accounts | ||
of USD 4.0 million and USD 7.4 million | 313,106 | |
Inventories, net | 284,848 | |
Prepaid expenses and other current assets | 122,490 | |
Total current assets | 826,671 | |
Property, plant and equipment, net | 122,126 | |
Intangible assets, net | 195,967 | |
Goodwill | 1,047,501 | |
Deferred tax assets | 45,139 | |
Other long-term assets | 160,026 | |
TOTAL ASSETS | 2,397,430 | |
LIABILITIES AND EQUITY | ||
Current liabilities | ||
Trade accounts payable | 204,255 |
March 31, 2023
117,370
351,379
242,340
109,018
820,107
117,215
216,312
1,048,508
43,789
178,291
2,424,222
214,822
USD in thousands, except share data | September 30, 2023 | |
Redeemable noncontrolling interests | 5,092 | |
Commitments and contingencies - Note 15 | ||
Shareholders' equity | ||
Landis+Gyr Group AG shareholders' equity | ||
Registered ordinary shares (28,908,944 and 28,908,944 issued | ||
shares at September 30, 2023, and March 31, 2023, respectively) | 302,756 | |
Additional paid-in capital | 1,028,979 | |
Retained earnings | 217,119 | |
Accumulated other comprehensive loss | (65,312) | |
Treasury shares, at cost | ||
(25,496 and 54,764 shares at September 30, 2023, | ||
and March 31, 2023, respectively) | (2,151) | |
Total Landis+Gyr Group AG shareholders' equity | 1,481,391 | |
Noncontrolling interests | 1,609 | |
Total shareholders' equity | 1,483,000 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 2,397,430 |
March 31, 2023
6,358
302,756
1,100,179
176,105
(52,418)
(5,069)
1,521,553
1,283
1,522,836
2,424,222
Accrued liabilities | 60,159 | |
Warranty provision - current | 28,219 | |
Payroll and benefits payable | 50,034 | |
Loans payable | 235,493 | |
Operating lease liabilities - current | 14,518 | |
Other current liabilities | 84,145 | |
Total current liabilities | 676,823 | |
Warranty provision - noncurrent | 14,038 | |
Pension and other employee liabilities | 22,894 | |
Deferred tax liabilities | 36,348 | |
Tax provision | 25,306 | |
Operating lease liabilities - noncurrent | 77,146 | |
Other long-term liabilities | 56,783 | |
Total liabilities | 909,338 | |
47,638
30,862
66,076
180,661
13,504
102,037
655,600
15,404
24,729
37,465
23,747
82,088
55,995
895,028
The accompanying notes are an integral part of these Interim Consolidated Financial Statements.
Landis+Gyr - Half Year Report 2023 | 10 |
Interim Consolidated Statements of
Changes in Shareholders Equity (unaudited)
Registered ordinary shares | Retained | Total | Total | ||||||||||||||
Additional | earnings | Accumulated | Landis+Gyr | Noncontrolling | |||||||||||||
(Accumulated | other compre | Treasury | Group AG | shareholders' | |||||||||||||
USD in thousands except for shares | Shares | Amount | paid-in capital | deficit) | hensive loss | shares | equity | interests | equity | ||||||||
Balance at March 31, 2022 | 28,908,944 | 302,756 | 1,156,312 | (31,829) | (36,596) | (6,413) | 1,384,230 | 1,357 | 1,385,587 | ||||||||
Net income (loss) | - | - | - | 186,479 | - | - | 186,479 | (248) | 186,231 | ||||||||
Foreign currency translation adjustments, net of income tax expense | - | - | - | - | (54,087) | - | (54,087) | (258) | (54,345) | ||||||||
Pension plan benefits liability adjustments, net of income tax expense | - | - | - | - | 4,154 | - | 4,154 | - | 4,154 | ||||||||
Net loss allocated to redeemable noncontrolling interests | - | - | - | - | - | - | - | 239 | 239 | ||||||||
Current period mark to redemption value of redeemable noncontrolling interest | - | - | 3,178 | - | - | - | 3,178 | - | 3,178 | ||||||||
Dividends paid (CHF 2.15 per share) | - | - | (64,700) | - | - | (64,700) | - | (64,700) | |||||||||
Share based compensation | 1,856 | - | 1,856 | - | 1,856 | ||||||||||||
Delivery of shares | - | - | (241) | - | - | 241 | - | - | - | ||||||||
Balance at September 30, 2022 | 28,908,944 | 302,756 | 1,096,405 | 154,650 | (86,529) | (6,172) | 1,461,110 | 1,090 | 1,462,200 | ||||||||
Balance at March 31, 2023 | 28,908,944 | 302,756 | 1,100,179 | 176,105 | (52,418) | (5,069) | 1,521,553 | 1,283 | 1,522,836 | ||||||||
Net income (loss) | - | - | - | 41,238 | - | - | 41,238 | (718) | 40,520 | ||||||||
Foreign currency translation adjustments, net of income tax expense | - | - | - | - | (6,288) | - | (6,288) | (84) | (6,372) | ||||||||
Pension plan benefits liability adjustments, net of income tax expense | - | - | - | - | (6,606) | - | (6,606) | - | (6,606) | ||||||||
Net loss allocated to redeemable noncontrolling interests | - | - | - | - | - | - | - | 1,128 | 1,128 | ||||||||
Adoption of ASU 2016-13 | - | - | - | (224) | - | - | (224) | - | (224) | ||||||||
Dividends paid (CHF 2.20 per share) | - | - | (70,780) | - | - | (70,780) | (70,780) | ||||||||||
Share based compensation | - | - | 2,498 | - | - | - | 2,498 | - | 2,498 | ||||||||
Delivery of shares | - | - | (2,918) | - | - | 2,918 | - | - | - | ||||||||
Balance at September 30, 2023 | 28,908,944 | 302,756 | 1,028,979 | 217,119 | (65,312) | (2,151) | 1,481,391 | 1,609 | 1,483,000 | ||||||||
The accompanying notes are an integral part of these Interim Consolidated Financial Statements.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Landis&Gyr Group AG published this content on 25 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 October 2023 05:40:38 UTC.