Annual Report 2020 125 Years

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Annual Report 2020 125 Years MANAGE 125 Years ENERGY BETTER Annual Report 2020 Our Mission At Landis+Gyr, we create a greener tomorrow through leading smart metering, grid edge intelligence and smart infrastructure technology. As partners, we help utilities to solve their complex challenges and empower 2 customers and consumers to utilize resources in a more informed and sustainable way. Together, we manage energy better. Our Values Customer Intimacy We are a trusted partner and deliver on our commitments. Innovative Technology We passionately innovate true differentiators for our customers. Entrepreneurial Spirit We empower teams to drive results with a can-do attitude. Uncompromising Performance We strive to deliver high quality on time, every time. Sustainable Impact We manage energy better for a more sustainable world. MANAGE 125 Years ENERGY BETTER Performance Report 2020 Contents Introduction Foundation Purpose Entrepreneurial Spirit 5 Uncompromising Performance 17 Sustainable Impact 34 Global Reach – Local Presence 6 Performance Review – Manage Energy Better – FY 2020 at a Glance 6 Group 18 Together 35 FY 2020 Key Figures 7 Performance Review – Manage Energy Better – Americas 20 In a Changing World 38 FY 2020 + Review 8 Performance Review – Manage Energy Better – Consolidated Statements Europe, Middle East and Africa 22 For a Greener Tomorrow 40 of Operations 9 Performance Review – Consolidated Balance Sheets 10 Asia Pacific 24 Letter to Shareholders 11 125 Years of Excellence 13 Value Drivers Further Information Innovative Technology 26 Customer Intimacy 43 Market Environment 27 Share Information 44 Strategy & Business Model 28 Contacts 45 R&D, Innovation & Portfolio 29 People 31 Risk Management 33 Introduction 5 Entrepreneurial Spirit Global Reach – Local Presence 6 FY 2020 at a Glance 6 FY 2020 Key Figures 7 FY 2020 + Review 8 Consolidated Statements of Operations 9 Consolidated Balance Sheets 10 Letter to Shareholders 11 125 Years of Excellence 13 Performance Report Corporate Governance Report Remuneration Report Financial Report Landis+Gyr – Annual Report 2020 6 Global Reach – Local Presence Net Revenue Split USD 700 million 52% 36% USD 494 million 12% USD 163 million Americas EMEA Asia Pacific FY 2020 at a Glance Global reach & local precence – Worldwide largest Smart Infrastructure EcoVadis Swiss HQ with locations in IoT utility network Multi-year strategic Gold Medal 2020 over 30 countries worldwide 1.3 billion reads per day partnership with Google ranked top 5% of with 99.99 % accuracy sustainable companies Largest installed base Over 125 million More than 15 million 125 years of services to 300+ million connected intelligent meter points under 3,500+ customers devices globally devices deployed managed services as a trusted partner Net Revenue in million USD Adjusted EBITDA in million USD Free Cashflow (excluding M&A)* 237.9 237.2 1,765 1,738 1,699 210.6 208.2 1,659 123.5 120.4 97.6 Performance Report 1,357 Corporate Governance Report Remuneration Report Financial Report Landis+Gyr – Annual Report 2020 7 87.5 139.6 53.1 FY 2020 Key Figures Carbon Neutral 16 17 18 19 20 16 17 18 19 20 16 17 18 19 20 by 2030 NetNet Revenue Revenue in in million million USD USD AdjustedAdjusted EBITDA EBITDA in in million million USD USD FreeFree Cashflow Cashflow (excluding (excluding M&A)* M&A)* Committed Backlog Net Revenue Adjusted EBITDA Direct CO2 emissions reduced by Committed2,165.9 Backlog Net1,357NetEarnings Revenue Revenue per in in millionShare million USD USD Dividend139.6AdjustedAdjusted per EBITDA EBITDA Share in in million million USD USD 8.5FreeFreeDirect Cashflow Cashflow CO2million Emissions (excluding (excluding M&A)* M&A)* tons Operations in million USD in million USD in million USD CO2 emission reduction through Landis+Gyr’s installed Smart Metering 237.9 237.2 237.9 237.2 base in 2020 1,765 1,765 1,738 1,738 1,699 1,699 210.6 208.2 1,659 210.6 208.2 1,659 123.5 123.5 120.4 120.4 237.9 237.2 237.9 237.2 3.15 1,765 1,765 2,603 1,738 1,738 1,699 97.6 97.6 1,699 1,357 210.6 208.2 1,357 1,659 2,491 16 1.5 kg 210.6 208.2 1,659 16 6.3 123.5 m tons 123.5 120.4 120.4 2,389 87.5 87.5 2,224 139.6 139.6 2,166 97.6 1,357 97.6 17 2.30 1.3 kg 1,357 17 7.1 m tons 2.10 87.5 87.5 2.00 53.1 139.6 53.1 139.6 18 7.3 m tons 18 1.3 kg 53.1 19 53.1 8.0 m tons 19 1.3 kg 1616 17 17 18 18 19 19 2020 1616 17 17 18 18 19 19 2020 1616 17 17 18 18 19 19 2020 4.15 3.90 1.57 0 20 8.5 m tons 20 0.97 kg 16 17 18 19 20 161616 17 17 17 18 18 18 19 19 19 202020 161616 17 17 17 18 18 18 19 19 19 202020 1616 17 17 18 18 19 19 2020 * –2.12 Net Revenue in million USD Adjusted EBITDA in million USD CommittedCommittedFreeFree Cashflow Cashflow Backlog Backlog (excluding M&A)* EarningsEarningsEarnings per per per Share Share Share DirectDividendDividendDividend CO2 per per Emissions Share perShare Share DirectOperations CO2 emissions (excluding M&A)* * -13.61 from Landis+Gyr operations Committed(13.61)Committed Backlog Backlog 2.10EarningsEarnings per per Share Share DividendDividend per per Share Share 97.6 in USD in CHF 0.97 in million USD kg CO2 per USD 100 turnover * incl. Toshiba legacy goodwill impairment of USD 396 million or USD (13.74) per share. 237.9 237.2 3.15 3.15 1,765 2,603 2,603 1,738 1,699 2,491 2,491 210.6 208.2 1,659 16 1.5 kg 123.5 16 6.3 m tons 120.4 2,389 2,389 3.15 3.15 2,224 2,224 2,166 2,166 2,603 2,603 97.6 2.30 2,491 2.30 1,357 2,491 17 7.1 m tons 17 1.3 kg 2,389 2,389 2.10 2.10 87.5 2.00 2.00 2,224 2,224 2,166 139.6 2,166 2.30 18 7.3 m tons 18 2.30 1.3 kg 2.10 2.10 2.00 2.00 53.1 19 8.0 m tons 19 1.3 kg 4.15 4.15 3.90 3.90 1.57 1.57 0 20 0 8.5 m tons 20 0.97 kg 16 17 18 19 20 16 17 18 19 20 161616 17 17 17 18 18 18 19 19 19 202020 1616 17 17 18 18 19 19 2020 1616 17 17 18 18 19 19 2020 4.15 4.15 3.90 3.90 1.57 1.57 0 * Net cash provided by operating activities 0 * minus net cash used in investing activities, * –2.12 1616–2.12 17 17 18 18 19 19 2020 1616 17 17 18 18 19 19 2020 1616 17 17 18 18 19 19 2020 excluding merger&acquisition activities. -13.61 -13.61 * * –2.12 Committed Backlog Earnings per Share Dividend per Share –2.12 -13.61 -13.61 3.15 2,603 2,491 2,389 2,224 2,166 2.30 2.10 2.00 4.15 3.90 1.57 0 16 17 18 19 20 16 17 18 19 20 16 17 18 19 20 * –2.12 -13.61 Performance Report Corporate Governance Report Remuneration Report Financial Report Landis+Gyr – Annual Report 2020 8 Undisclosed FY 2020 + Review Customer Contract (US) SmartSTEP EV Charging Contract (UK) Evergy Contract Extension (US) Regulatory Approvals (US) Vodafone Cellular Amazonas Energia IoT Partnership Contract (Brazil) Announcement Google Partnership Smart Metering Choice Announcement SMETS2 Contract (UK) ­­True Energy Strategic Initiatives Acquisition Smart Water & Smart Gas EcoVadis Gold Top 5% Restructuring EDF SMETS2 Agreement Contract (UK) to Acquire Initiative ”Hermes” Polk-Burnett SMUD Calvin Capital Etrel Announcement Contract (US) Contract SMETS2 ­­Rhebo (US) Contract (UK) Acquisition Puget Sound Contract (US) Q1 Q2 Q3 Q4 Q1 FY 2021 EGM 2021 Renewed H1 FY 2020 Leadership Team Earnings Call FY 2020 New CFO Earnings Call Elodie Cingari Restructuring Initiative Publication of Capital Markets ”Hermes” New CEO Sustainability Day 2021 Completed Werner Lieberherr Report FY 2019 Earnings Call Performance Report Corporate Governance Report Remuneration Report Financial Report Landis+Gyr – Annual Report 2020 9 Consolidated Statements of Operations FINANCIAL YEAR ENDED MARCH 31, USD in thousands, except per share data 2021 2020 Net revenue 1,357,448 1,698,999 Cost of revenue 966,780 1,166,174 Gross profit 390,668 532,825 Operating expenses Research and development 148,717 157,705 Sales and marketing 69,603 88,158 General and administrative 107,230 113,468 Amortization of intangible assets 34,247 34,503 Impairment of intangible assets 396,000 – Operating income (loss) (365,129) 138,991 Other income (expense) Interest income 504 5,217 Interest expense (7,515) (6,784) Non-operational pension (cost) credit 2,781 3,624 Gain on sale of investments 2,260 – Income (loss) on foreign exchange, net (1,502) (2,626) Income (loss) before income tax expense (368,601) 138,422 Income tax expense (19,422) (19,469) Net income (loss) before noncontrolling interests and equity method investments (388,023) 118,953 Net loss from equity investments (4,636) (5,788) Net income (loss) before noncontrolling interests (392,659) 113,165 Net loss attributable to noncontrolling interests, net of tax (267) (583) Net income (loss) attributable to Landis+Gyr Group AG Shareholders (392,392) 113,748 Earnings per share: Basic (13.61) 3.90 Diluted (13.61) 3.90 Weighted-average number of shares used in computing earnings per share: Basic 28,824,039 29,169,434 Diluted 28,824,039 29,201,789 The accompanying notes are an integral part of these consolidated financial statements.
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