ANALYST CONFERENCE. André Harari, Chairman of the Board of Directors Daniel Harari, Chief Executive Officer Jérôme Viala, Chief Financial Officer

Transcription

1 ANALYST CONFERENCE André Harari, Chairman of the Board of Directors Daniel Harari, Chief Executive Officer Jérôme Viala, Chief Financial Officer October 30, 2014

2 Financial Results for Q Financial Results for 9M Outlook Detailed comparisons between 2014 and 2013 are based on 2013 exchange rates ( like-for-like ) unless stated otherwise. 2

3 Q3 2014: 4% Growth in Orders Orders for new systems: 23.7 million A rise of 0.9 million (+4%) compared with Q3 2013, the highest quarter of FY 2013 New software licenses: +26% CAD/CAM equipment: 4% Training and consulting: +13% Orders amounted to 19 million in Q and 24.8 million in Q

4 Q3 2014: Increase in Revenues, Income from Operations and Net Income In millions of euros Q Actual Q At 2013 exchange rates Q Actual Change M Like-for-like Change % Like-for-like Revenues % New systems % Recurring revenues % Gross profit in % of revenues % % % % +1.1 points Income from operations in % of revenues % % % % +1.3 points Net income 5.1 na 4.2 na na Free cash flow 2.7 na 1.9 na na $/ exchange rate Growth in revenues from new systems sales exceeded, both in absolute value and percentage terms, that of recurring revenues Income from operations rose 17% despite the 1.4 million increase in fixed overhead costs related primarily to the transformation plan Q3 income from operations is boosted each year by the natural drop in overhead costs over the summer vacation months 4

5 Financial Results for Q Financial Results for 9M Outlook Detailed comparisons between 2014 and 2013 are based on 2013 exchange rates ( like-for-like ) unless stated otherwise. 5

6 9M 2014: 9% Growth in Orders Orders (in millions of euros) 9M 2014 Actual 9M 2013 Actual 9M 2012 Actual Change 9M 2014 / 9M 2013 Like-for-like Total % Of which New software licenses % CAD/CAM equipment % Training and consulting % Q1 Q2 Q3 Q In millions of euros Figures at actual exchange rates. 6

7 Strong Rebound in Europe, Continuing Development in Asia-Pacific Highly contrasted situation Europe (41% of total orders): +31% Asia-Pacific (31%): +17% Americas (21%): 21% Other countries (7%): 9% 51% 49% 54% 46% An increase in orders, driven by fashion and apparel Fashion and apparel (52% of total vs. 49%): +16% Europe: +42% North America: 1%; South America: 24% Asia-Pacific: +23% Automotive (37% vs. 40%): stable Europe: +32% North America: 42%; South America: 8% Asia-Pacific: +19% Furniture (4%): 26% Other industries (7%): +53% 9M 2014 Emerging countries 9M 2013 Developed countries The share of developed countries in global activity increased Emerging countries: +4% Developed countries: +14% Orders for new software licenses, CAD/CAM equipment, and training and consulting. Like-for-like comparisons 9M 2014 vs. 9M

8 Growth in Revenues from New Systems Sales and in Recurring Revenues Increase in total revenues million (+4%) M M 2014 Recurring revenues +5% +4% New systems sales In millions of euros Figures at actual exchange rates Change like-for-like. Order backlog: 17.2 million at September 30, million vs. December 31, 2013 Of which 11.6 million of orders for new software licenses and CAD/CAM equipment for shipment in Q and 5.2 million for training and consulting to be delivered as projects are carried out Revenues from new systems sales: +5% New software licenses: 15.9 million (+7%) CAD/CAM equipment: 38.8 million (stable) Training and consulting: 7.7 million (+28%) Revenues from recurring contracts: +4% Software maintenance and online service contracts ( 30.8 million): +4% Hardware maintenance and online service contracts for CAD/CAM equipment ( 21.9 million): +3% Revenues from spare parts & consumables: +4% 37.2 million (24% of total revenues) At actual exchange rates, recurring revenues exceeded their 2007 level by 14.7 million (+19%) Revenues from new systems sales remained below 17.2 million ( 21%) 8

9 9M 2014: Financial Results Overall in Line with the Company s Minimum Objective In millions of euros 9M 2014 Actual 9M 2014 At 2013 exchange rates 9M 2013 Actual Change M Like-for-like Change % Like-for-like Revenues % New systems % Gross profit Recurring revenues in % of revenues Income from operations before non-recurring items in % of revenues Income from operations in % of revenues The roadmap corresponding to the company s minimum objective communicated on February 11, 2014 anticipated revenues of 157 million and income from operations of 12.4 million for the first nine months Revenues are behind by 2% due to a weak level of orders for new systems sales in Q % % % Income from operations is ahead by 1 million, thanks to a more favorable sales mix, improved margins and lower-thanexpected overhead costs The growth in the gross profit is higher than that of revenues and fixed overhead costs (+ 5.9 million) % % % % % % % % +1.6 points % +0.4 points % ns Net income 9.7 na 18.8 na na Free cash flow 9.3 na 16.0 na na $/ exchange rate

10 Revenues and Gross Profit Margins Growth are Financing the Transformation Plan and the Natural Increase in Costs In millions of euros, at actual exchange rates Increase in recurring revenues Increase in revenues from new systems sales Improvement in gross profit margins (3.4) Increase in fixed overhead costs related to the transformation plan Income from operations 9M 2014 Income from operations 9M 2013* (0.8) (1.1) Natural increase in fixed overhead costs Effects of currency fluctuations Expenditures corresponding to investments for the future in connection with the transformation plan accounted for 2.1 percentage points in the reduction of the operating margin vs. 9M 2013 and for 6.3 percentage points vs. 9M 2011, before the plan s inception The natural increase in fixed overhead costs of 1.5 million has been reduced by a 0.7 million reversal of provisions related to the research tax credit *Before non-recurring items. 10

11 Steadfast Investments in R&D, up 12% In millions of euros R&D investments M 2014 R&D investments amounted to 15.7 million (10.2% of revenues) vs. 14 million (9.4%) in 9M 2013 Net R&D investments, after deducting the French research tax credit and the portion of the new competitiveness and employment tax credit relating to R&D personnel: 9.4 million ( 9.3 million in 9M 2013) More than 260 engineers (18% of workforce) dedicated to R&D More than 90 million invested over the last 5 years M 2014 R&D is not reported on the balance sheet: R&D spending is fully expensed and included in the fixed overhead costs for the fiscal year 11

12 Acceleration in Marketing Investments is Strengthening Lectra s Image Click to see online content White papers, Brochures, School spotlights and Young talents Customer stories Videos 12

13 Free Cash Flow Continues to Reflect the Pertinence of Lectra s 30,0 Business Model 30,0 In millions of euros, before non-recurring items 12M (except 2014, 9M) 9M 2014 free cash flow: 9.3 million 20,7 Cash flow provided by operating activities: 13.4 million 20,7 19,5 (including a decrease in working capital requirement of 19,5 1.3 million),317,3 17,3 17, ,3 19,5 15,6 5,5 17,3 15,6 5,5 15,215.2 Decrease in working capital requirement: 1.3 million 15,2 15,2 17,3 If the 9M 2014 research tax credit and competitiveness and,8 5,8 5,8 13,6 5,8 13,6 13,6 13,3 13,4 13,6 13,4 13,4 13,4 12,5 12,5 12,5 12,5 employment 5,8 tax 5,813,6 13, credit had been received, the decrease in 5, ,9 5,9 5,9 working capital requirement would have been equal to 9,7 9,7 5,8 13, ,7 9,7 7.2 million 6,9 6, ,9 6,9 Capital expenditures: 4.1 million 15,2 15,2 Free cash flow would have come to 15.2 million if the tax,511,5 11,5 11, ,3 9, ,3 9,3 credits 11,5for the 11,5 year had been received, exceeding net income 6,5 6, ,5 6,5 by 5.5 million 11,5 Cumulated free cash flow since January 1, 2012: CFL CFLCIR CIRCF million Résultat Net Résultat Net million before non-recurring items Résu ltat Net M 2014 CFL Free cash flow CFLCIR Annual CIRCF2 French research Résultat tax Net Résultat Net2 credit and competitiveness Net Résu income ltat and employment Net tax credit which have not been received 13

14 A Zero-Debt Company, Shareholders Equity and Net Cash Position Bolstered Once More At September 30, 2014 Shareholders equity: 89 million 83.8 million at December 31, 2013 Cash and cash equivalents: 32.5 million 29.5 million at December 31, 2013 Net cash: 32.1 million Financial borrowings have been reduced to 0.4 million (interest-free government advances to help finance R&D programs) In millions of euros, at December 31 (except in 2014, at September 30) Shareholders' equity Cash & Cash equivalents Net cash 14

15 A Structurally Negative Working Capital Requirement, a Key Feature of Lectra s Business Model In millions of euros, at December 31 (except 2014, at September 30) Working capital requirement at September 30 amounted to 7.6 million It comprised a receivable of 28.1 million in respect of the research tax credits since 2010 and competitiveness and employment tax credits since 2013, which have not been received and have not been offset against a tax charge The FY 2010 research tax credit amounting to 5.7 million was repaid to the company at the beginning of October Restated for this receivable, the working capital requirement was negative at 20.5 million Working Capital Requirement Working Capital Requirement after restatement of the research tax credit and competitiveness and employment tax credit receivable 15

16 Share Price Performance and Trading Volumes 9, , , , , , Evolution from January 1, 2013 to October 28, 2014 (in euros, daily closing price and index) Lectra: + 70% CAC Mid & Small: + 26% Share price October 28, 2014: High (June 19): 8.73 Low (October 16): 7.01 Volume traded 1 in 9M 2014 Shares: 4.8 million ( 11%) Capital: 37.9 million (+34%) Market Capitalization 2 : 243 million Enterprise Value: 211 million 1.0x LTM Revenues 3 Breakdown of capital * André Harari and Daniel Harari: 36.9% Free float: 63.1% Delta Lloyd (Netherlands) : > 10% and <15% Schroder Investment Management (United Kingdom): > 10% and <15% 12.0x LTM EBIT 3 PE: 19.3x LTM net income 3 1 According to Euronext figures 2 At October 28, LTM: last 4 quarters, before nonrecurring items * At September 30,

17 Financial Results for Q Financial Results for 9M Outlook 17

18 2014 Outlook On February 11, 2014, the company indicated that its minimum objective* in 2014 was to reach Total revenues of around 214 million (+7%) Income from operations before non-recurring items of around 18 million (+10%) Operating margin before non-recurring items of approx. 8.3% (a slight increase) Net income of around 12.5 million (unchanged at actual exchange rates, before 2013 non-recurring items) Taking into account the September 30 results Revenues should be slightly short of the above figure Income from operations and net income should be slightly above these figures The company will present its outlook for 2015 and a second progress report on its strategic roadmap on February 11, 2015 *Exchange rates at February 1, 2014, in particular $1.35/ 1. Change like-for-like. 18

19 Upcoming Financial Calendar FY 2014 Financial Results February 11, 2015 Analyst Conference February 12, 2015 You are invited to visit Lectra's technology campus lectra.com 19