Investor presentation. // October 2018

Transcription

1 Investor presentation // October 2018

2 By reading this presentation (the Presentation ) you accept that you have been fully informed of the observations set out below: Disclaimer This Presentation has been prepared for information purposes only, in addition to information published elsewhere by Cogelec which readers are invited to consult. It does not constitute, and should not be considered as a solicitation or offer to purchase or sell shares or financial instruments. In addition, it in no way takes into account the financial position, objectives and specific needs of investors, which are key factors in any investment decision, and therefore does not constitute under any circumstances an investment recommendation or advice. The Presentation should not be considered by investors as a substitute for the exercise of their own judgement. The Presentation may contain forward-looking information which does not constitute estimates or earnings forecasts. This information, which expresses expectations and targets set based on Cogelec s current assessments and estimates, remains subject to several factors and uncertainties which may lead to actual figures differing significantly to those provided on a provisional basis. There can therefore be no assurance that the forward-looking data included in the Presentation is achieved. Risks and uncertainties which may affect the achievement of this forward-looking data notably include elements described in the documents filed by Cogelec with the AMF, and in particular the risk factors described in the Risk factors chapter of the Base Document filed on 14 May 2018 under number I Cogelec makes no commitment to publish modifications or updates to forward-looking data which may be included in the Presentation, even when modifications are made to certain assumptions on which this forward-looking data is based. Information contained in the Presentation relating to parties other than Cogelec or taken from external sources has not been subject to independent verification. No guarantee is offered as to the accuracy, fairness or completeness of the information or opinions included in this Presentation. Neither Cogelec or its executive officers accept any liability on any grounds for any damage suffered due to the information contained in this Presentation.

3 Roger Leclerc Chairman and Founder Stéphane Vapillon Chief Financial Officer Lise Gaschet International Development Manager

4 #1 Group profile

5 #1 A global offering for building managers A LEADER IN ACCESS CONTROL... Access control Door entry system Service providers Residents 5

6 #1 A global offering for building managers... ON THE MULTI-UNIT DWELLINGS MARKET Social landlords 1.5 million buildings in France Managed by: 292 (1) of 515 (2) in France Management companies Representing 15.4 million dwellings (5% of the building base renewed each year) 6 (1) Source: Company - (2) Source: (3) Source: Company - (4) Source: Company estimate 4,230 (3) of 10,000 (4) in France 6

7 #1 A global offering for building managers BENEFITS FOR BUILDING MANAGERS: SIMPLIFYING MANAGERS WORK WITH A SIMPLE, SCALABLE, REMOTELY-OPERATED AND REAL TIME MANAGEMENT SYSTEM Free and secure remote management portal CREATE, MODIFY, DELETE A name A code Free access time frames A proximity key fob A pass MANAGE KEYS FOR TECHNICAL FACILITIES Identification of existing keys One-off loan Call security guard to pick up a key TECHNICAL ALERT FOR MONITORING A lift pump A CMV An open door alert 7

8 #1 A global offering for building managers A DISRUPTIVE BUSINESS MODEL BASED ON SERVICE AND SUBSCRIPTIONS EQUIPMENT: GSM: SERVICES: Terminals and proximity key fobs for residents, CCTV cameras, numeric keypads, key cabinets, fob/transmitters, etc. Reduced investment for customers Intercom system solution based on the telephone network through operator agreements Unlimited communication without additional costs Online management tool for building managers Remote management Invoicing at installation Monthly subscription per dwelling 8

9 #1 A global offering for building managers A VALUE PROPOSAL BUOYED BY INNOVATION FOR OVER 15 YEARS FROM CABLE INTERCOM TO THE GSM REVOLUTION MASTER KEY Supplier of VIGIK solutions for manufacturers (OEM) Over 40% VIGIK market share in France since 2003 Creation of the 1 st global offering for wireless intercom (GSM) by subscription Creation of the 1 st master key with a European shaft currently in the production phase 9

10 #1 A global offering for building managers KIBOLT 10

11 # First Half Highlights

12 # First Half Highlights A SUCCESSFUL INITIAL PUBLIC OFFERING Capital raised: 41.7m 34.6m raised through institutional investors 4.1m raised through private investors 3.0m following the overallotment option with the disposal of additional shares by majority shareholder SRC 12

13 # First Half Highlights A SUCCESSFUL INITIAL PUBLIC OFFERING SA COGELEC share ownership at 13/07/2018 SA COGELEC share ownership at 13/07/2018 Free float 39.91% SAS HRC % Group mainly composed of managers 75.54% Banque Populaire de Développement 12.23% Nexicap Rendement 12.23% SAS SRC 60.09% 13

14 # First Half Highlights RECRUITMENT OF INTERNATIONAL TEAMS Recruitment target: UK - 23 sales representatives at end sales representatives at end sales representatives at 30 September versus 7 at 1 January 2018 With another 5 set to arrive in early October. BENELUX Germany Germany: showroom opening with the presentation of the product range UK: ongoing recruitment with a country manager, back office manager and 2 technical support technicians Benelux: recruitment of a travelling sales representative, creation of a subsidiary in the Netherlands underway 14

15 # First Half Highlights STRENGTHENING R&D CAPACITY 01 Opening of an R&D department in Nantes to welcome an R&D team 02 Recruitment of 6 engineers to work on growth projects 15

16 # First Half Highlights LAUNCH IN FRANCE ON 2 OCTOBER OF A NEW RANGE FOR SMALL COLLECTIVE HOUSING: BUTTON-BASED INTERCOM An innovative product which is in line with expectations and should target 100% of the market Small collective housing market potential (70% of the global market) Target: double our penetration rate to target half of the market 16

17 # First Half Highlights LAUNCH ON 2 OCTOBER OF A NEW RANGE FOR SMALL COLLECTIVE HOUSING: BUTTON-BASED INTERCOM 17

18 # First Half Highlights LAUNCH ON 2 OCTOBER OF A NEW RANGE FOR SMALL COLLECTIVE HOUSING: BUTTON-BASED INTERCOM Immediate marketing launch: a tour of France to market the product 18

19 #2 INTENSE MARKETING ACTIVITY 2018 First Half Highlights Forthcoming trade shows H Expo 9 to 11 October 2018 Marseille, Palais des Congrès et des Expositions Parc Chanot ARTIBAT 24 to 26 October 2018 Rennes, Parc des Expositions INNOBAT 8 and 9 November 2018 Biarritz, Parc des Expositions, Halle d Iraty Salon de la Copropriété 21 and 22 November 2018 Paris Porte de Versailles, Hall 7.1 SOLUCOP 27 and 28 November 2018 Nice, Palais Nikaïa VdW Verbandstag 18 and 19 September 2018, Bochum Asset Management and Maintenance Exhibition and 18 October 2018, Birmingham

20 #3 H Results

21 21 #3 H results MORE GROWTH ON THE HORIZON IN FRANCE 01 Sales growth for Intratone Deferral of sales to H2 and H following changes in regulations for social landlords 02 Change in installed equipment base CHANGE IN INSTALLED EQUIPMENT BASE (total number of dwellings subscribed) 580, ,7% 700, ,4% 850, ,0% 925, Good resilience of the Hexact business Business down, but a performance in line with expectations S

22 H results CHANGE IN CURRENT OPERATING INCOME IN M CURRENT OPERATING MARGIN RATE AS A % CHANGE IN NET INCOME IN M * H H H H ** H H * Of which more than 880 thousand related to investments for European growth. ** Of which 390 thousand related to IPO costs. 22

23 Simplified income statement #3 H results IFRS ( m) H H Change Revenue % Consumed purchases % Change in inventories, work in progress and finished goods % Gross margin in value % Gross margin as a % of revenue 66.8% 63.8% Staff costs (1) % External expenses (1) % Taxes and duties % Other current operating income and expenses % EBITDA % Depreciation, amortisation & provisions % Current operating income % Other operating income and expenses (2) Operating income % As a % of revenue 4.5% 10.5% Cost of net financial debt % Tax expenses (3) % Net income N/A As a % of revenue 0.2% 5.7% (1) Of which more than 880 thousand related to European growth. (2) Of which 390 thousand related to IPO costs. (3) Tax expenses in France alone. No deferred tax assets recognised for the subsidiaries for the moment. 23

24 #3 H results IFRS ( m) Simplified balance sheet H H Intangible assets Property, plant & equipment Other non-current and financial assets Total non-current assets Inventories and works in progress Trade receivables Other current assets Current tax assets Cash and cash equivalents Total current assets TOTAL ASSETS IFRS ( k) Total shareholders equity Borrowings and financial debt H H Provisions Other non-current liabilities Total non-current liabilities Borrowings and financial debt Trade payables Other current liabilities Current tax liabilities Total current liabilities TOTAL LIABILITIES

25 #3 H results Simplified cash flow statement IFRS ( m) H H Net income from continuing operations Cash flow before cost of net financial debt and tax expenses Change in WCR related to operations Cash flow from operating activities Cash flow from investment activities Cash flow from financing activities Change in cash and cash equivalents Opening cash position Closing cash position

26 #3 COGELEC stock market performance Share information ISIN Reuters Bloomberg Compartment FR COGEC.PA COGEC:FP C Number of securities 8,898,048 Average daily trading volume 3,570 Share price at 28/09/ Market cap. at 28/09/ m Free float 39.91% SA COGELEC share ownership at 13/07/2018 SAS HRC % Group mainly composed of Managers 75.54% SA COGELEC share ownership at 13/07/2018 Banque Populaire de Développement 12.23% Nexicap Rendement 12.23% SAS SRC 60.09% 26

27 #4 An ambitious strategy

28 #4 An ambitious strategy THREE COMPLEMENTARY AREAS FOR GROWTH More growth on the horizon in France Roll out of the Intratone solution in 5 targeted European countries Launch of Kibolt sales in France then in Europe 28

29 #4 An ambitious strategy STRONG GROWTH PROSPECTS IN FRANCE MARKET DRIVERS 1 Intratone, leader on the GSM market 95% of the market to be captured 2 Renovation of the real estate base 3 Cumulative subscriptions 4 A growing demand for protection: 15,500,000 searches for access control on Google 1 1 Source: Company, Google 5 6 Innovation as a driver for the replacement of older equipment Launch of the button-based intercom 29

30 #4 An ambitious strategy COGELEC S COMPETITIVE ADVANTAGE A strong market position A product range which now covers 100% of the market An unrivalled performance in terms of price and services Breakthrough innovations ahead 30

31 #4 An ambitious strategy NEW MARKET SHARE GAINS IN CERTAIN TARGETED EUROPEAN COUNTRIES Germany Benelux United Kingdom 5 low-income housing complexes, including 3 with the largest German social landlords Bistum Essen Hilfswerk-Siedlung Berlin Vonovia 10 low-income housing complexes with 5 using access control systems 1 using seeseebox 4 using intercoms 4 low-income housing complexes and 4 Management companies 31

32 #4 An ambitious strategy MARKETING OF KIBOLT IN FRANCE AND EUROPE Customer testing underway Sales launch at the beginning of Q Step-up in marketing in Q

33 #4 An ambitious strategy CONFIRMED TARGET OF TRIPLING REVENUE BY 2021: 90M 01 Gain Gain of new market share in GSM intercom systems market in multi-unit dwellings in France (Target of 45m in 2021) 02 Deployment Deployment of the multi-unit dwellings offering in certain target countries in Europe (Target of 30m in 2021 in Germany, UK and Benelux) 03 Sales Marketing of Kibolt, the new universal key in France and Europe (Target of 15m in 2021) 2018 in line with our expectations 33

34 Appendices

35 The creation of a proprietary ecosystem A GLOBAL SERVICE OFFERING THE BENEFITS OF GSM INTERCOM SYSTEMS Remote and real time management for building managers Fast installation, without major work and with immediate entry into service Comfort of use for residents 35

36 A success story THE SWITCH FROM INTERCOM TO WIRELESS CABLE INTERCOMS 135m in 2017 Stable since 2012 Wired intercoms still represent 95% of the installed equipment base (1) GSM INTERCOM SYSTEMS 10m in m in % CAGR (1) Source: MSI Reports - Electronic access control market in France - May

37 A success story Our innovations, our brands st comprehensive key management offering: - key safe, - key cabinet, - internet management tool st CCTV camera for building foyers Launch of the Vigik system st VISIO 3G intercom st management offering operating in real time for intercom systems st electronic notice board for building foyers st 100% video 4G-IP transmission module 1.8m in Investments Research & development 41 patent families, 18 engineers Hands-free proximity key fob 37

38 The keys to our success TELECOM OPERATOR AGREEMENTS TO PRE-EMPT THE WIRELESS MARKET Our operator agreements Operator agreement signed in 2006 Operator agreement signed in 2011 Operator agreement signed in 2016 Almost 20,000 SIM CARDS ACTIVATED IN H OUT OF AN INSTALLED BASE OF MORE THAN 140,000 CARDS 38

39 The keys to our success A MARKETING METHOD BASED ON PRESCRIPTION WITH DIRECT RELATIONSHIPS WITH SOCIAL LANDLORDS AND MANAGEMENT COMPANIES Our positioning: Services and customer proximity 881 Distributors Guidance Installers 117 Installation partners Provision of management tool & Training + Subscription Social landlords Management companies 39

40 The keys to our success Our Network A network of distributors and installers located throughout France PARIS AREA/NORTH WEST Installation partners: 33 Retail sales outlets: 95 NORTH Installation partners: 7 Retail sales outlets: 35 WEST Installation partners: 8 Retail sales outlets: 45 CENTER EAST Installation partners: 5 Retail sales outlets: Installation partners (1) Sales outlets (2) CENTER Installation partners: 9 Retail sales outlets: 83 SOUTH WEST Installation partners: 7 Retail sales outlets: 76 EAST Installation partners: 6 Retail sales outlets: 39 RHÔNES-ALPES/ AUVERGNE Installation partners: 12 Retail sales outlets: 247 MIDI PYRENEES/ ROUSSILLON Installation partners: 16 Retail sales outlets: 77 SOUTH EAST Installation partners: 14 Retail sales outlets: 144 (1) Source: Company - (2) Source: Company 40

41 A proven Business Model GROWTH AND PROFITABILITY MOMENTUM SINCE ITS CREATION +53% in two years 19.9M 26.2M 14.4% 30.6M 16.3% 850,000 dwellings + 150,000 new dwellings in revenue 26.1M 10.0% Revenue and current operating margin 2017 revenue 4.5M 2017 Revenue 30.6M Current EBIT 5.0M Net income 2.9M Employees

42 A success story Strong growth in business and profitability CHANGE IN CURRENT OPERATING INCOME IN M CURRENT OPERATING MARGIN RATE CHANGE IN NET INCOME IN M 2,0 +90% 3,8 +32% 5,0 10,0 % +44 % 14,4 % +13 % 16,3 % 1,5 +47% 2,2 +32% 2,

43 Simplified income statement A success story Our business model IFRS ( thousand) Revenue 19,982 26,212 30,628 of which subscriptions 4,051 5,450 7,365 Other operating income Cost of goods sold -6,240-9,334-10,958 Changes in inventories, work in progress and finished goods ,154 Gross margin in value 13,709 17,193 20,827 Gross margin as a % of revenue 68.6% 65.6% 68.0% Staff costs -6,360-7,540-8,821 External expenses -4,073-4,370-4,870 Depreciation, amortisation & provisions -1,170-1,466-2,016 Other current expenses Recurring operating income 2,006 3,777 5,007 Operating income 1,784 3,568 4,857 As a % of revenue 8.9% 13.6% 15.8% Cost of net financial debt Tax expenses ,169-1,630 Net income 1,500 2,199 2,905 As a % of revenue 7.5% 8.4% 9.5% 43

44 Simplified balance sheet A success story Our business Model IFRS ( thousand) Intangible assets 4,868 5,717 6,598 Property, plant & equipment Other non-current and financial assets Total non-current assets Inventories and work in progress 4,887 5,331 5,262 1,800 2,663 3,228 11,555 13,711 15,088 3,886 4,746 6,964 Trade receivables 6,050 7,238 8,342 Other current assets 1,295 1,633 1,639 Current tax assets 596 Cash and cash equivalents 2,297 5,901 5,671 Total current assets 14,124 19,518 22,616 TOTAL ASSETS 25,679 33,229 37,704 IFRS ( thousand) Total shareholders' equity Borrowings and financial debt 3,776 3,468 3,529 7,084 8,613 7,950 Provisions Other non-current liabilities Total non current liabilities Borrowings and financial debt 6,887 9,660 13,216 14,388 18,831 21,931 1,855 2,365 3,367 Trade payables 2,113 3,764 3,494 Other current liabilities 3,369 4,248 5,064 Current tax liabilities Total current liabilities 7,515 10,930 12,244 TOTAL LIABILITIES 25,679 33,229 37,704 44

45 Simplified cash flow table A success story Our business model IFRS ( thousand) Net income from continuing operations 1,048 2,199 2,905 Cash Flow (before cost of net financial debt & tax expenses) 1,901 3,972 5,008 Change in WCR related to operations 2,087 2,313 2,236 Cash flows linked to business activities 2,884 6,191 5,835 Cash flows linked to investment activities -1,011-2,621-3,209 Cash flows linked to financing activities -2, ,535 Opening cash 3,188 2,134 5,575 Change in cash and cash equivalents -1,054 3, Closing cash 2,134 5,575 5,666 45