EQS Group-Ad-hoc: Landis+Gyr Group AG / Key word(s): Half Year Results/Sustainability Landis+Gyr Announces First Half FY 2021 Financial Results 28-Oct-2021 / 06:56 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement.

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Cham, Switzerland - October 28^th, 2021 - Landis+Gyr (SIX: LAND) today announced unaudited financial results for the first half of financial year 2021 (April 1^st - September 30^th, 2021). Key highlights included: . Order intake of USD 1,786.9 million corresponding to a book-to-bill ratio of 2.55, primarily driven bymajor US contract wins . Record committed backlog of USD 3,235.6 million, an increase of 55.5% Year-over-Year (YoY) . H1 FY 2021 net revenues increased 9.1% YoY in constant currency to USD 700.9 million driven by therecovery in the EMEA region and despite supply chain related headwinds . Adjusted EBITDA* grew 41.3% to USD 70.8 million, a margin of 10.1% compared to 8.0% in H1 FY 2020 . Net income was USD 35.0 million or USD 1.21 per share compared to USD (2.0) million or USD (0.07) pershare in H1 FY 2020 . Free Cash Flow (excl. M&A) was USD 41.6 million compared to USD 45.3 million in H1 FY 2020 . Strong balance sheet with low net debt of USD 79.3 million and net debt / Adjusted EBITDA of 0.5x afterseveral acquisitions . Guidance for FY 2021 confirmed with results pointing towards the lower end of the guided ranges due toongoing and increasing supply chain challenges . Transformation with strategic acquisitions and initiatives on track

'Landis+Gyr delivered respectable results in the first half of our financial year 2021 in a very challenging global environment dominated by the COVID-19 pandemic and global supply chain constraints. We are especially proud of the wins of major orders in the United States, which, after regulatory delays, finally came through and are proof of our industry-leading expertise and technology helping our customers manage energy in a more informed and sustainable way. Together with other relevant contract wins, this leads to a record-high backlog, further supporting solid business performance in the mid- and long-term and our teams all over the world remain dedicated and passionate to enable our customers' success', said Werner Lieberherr, Chief Executive Officer of Landis+Gyr.

'We are also excited about the progress of our ongoing transformation in H1, including several strategic acquisitions, which will enable additional growth in new segments and geographies. However, the global supply chain constraints negatively impacted our positive development and we expect the negative financial impact from the supply chain situation to increase in H2 compared to H1 of FY 2021. With various measures in place, we confirm our guidance for FY 2021 and expect results towards the lower end of the guided ranges', Lieberherr concluded.

Constrained global supply chain situation As already highlighted at the occasion of the FY 2020 results publication in May 2021, the global and cross-industry supply chain constraints, in particular shortages and price increases of electronic components, material non-availability as well as increased freight rates, continue to pose challenges to the business. In H1 FY 2021, this resulted in both higher cost and revenue pushouts as customer demand could not be fully satisfied. The company expects the negative financial impact from the supply chain situation to increase in H2 compared to H1 of FY 2021.

Acquisitions and transformation In the six months under review, Landis+Gyr announced the acquisitions of Etrel and True Energy in the electric vehicle (EV) charging space, Telia's meter reading business and, subject to closing, of Luna Elektrik, which is expected to add a cost-competitive metering platform, as well as a strategic investment in the charge point operator Allego, also subject to closing. In combination with investments in strategic initiatives initiated in FY 2020, the company is progressing on its transformation toward grid edge intelligence and smart infrastructure and these investments are expected to support growth in the mid-term.

Orde r Intake, Committed Backlog and Net Revenue Order intake for the first half of FY 2021 almost quadrupled to USD 1,786.9 million, representing a book-to-bill ratio of 2.55. The positive development was driven by major contract wins in the Americas and EMEA regions. Committed backlog was up 55.5% reaching USD 3,235.6 million, the highest level in the Company's history. Committed backlog in the Americas rose by 74.1% to USD 2,320.8 million, in EMEA by 21.2% to USD 803.9 million and in Asia Pacific by 31.4% to USD 110.8 million.

In H1 FY 2021, net revenue increased 12.4%, or 9.1% in constant currency, to USD 700.9 million. Recently acquired businesses contributed USD 3.4 million to net revenue.

Net revenue to external customers per segment was as follows (in USD millions, except where indicated): 


Segment       H1 FY 2021  H1 FY 2020  Percentage change Percentage change in constant currencies 
              Net revenue Net revenue 
Americas      325.4       332.6       (2.2)             (2.4) 
EMEA          300.1       213.9       40.3              31.4 
Asia Pacific  75.4        77.0        (2.1)             (6.7) 
Group         700.9       623.5       12.4              9.1

The Americas region delivered slightly lower net revenue, down 2.4% YoY in constant currency, of USD 325.4 million due to challenging component availability partially offset by a strong performance in Brazil and Japan.

Business in the EMEA region recovered strongly compared to the COVID-19 impacted prior year period with net revenue up 40.3%, or 31.4% in constant currency, to USD 300.1 million with particularly strong development in the UK, Sweden and Austria.

Asia Pacific sales were down 6.7% YoY in constant currency to USD 75.4 million as a result of COVID-19 related lockdowns in various countries and non-availability of certain components.

Adjusted and Reported EBITDA* The Adjusted EBITDA by segment was as follows (in USD millions, except where indicated): 


                      H1 FY 2021 H1 FY 2021 Percentage H1 FY 2020 H1 FY 2020 Percentage 
Segment               Adjusted   of net revenue        Adjusted   of net revenue 
                      EBITDA                           EBITDA 
Americas              50.2       15.4%                 40.7       12.2% 
EMEA                  13.1       4.4%                  (4.3)      (2.0%) 
Asia Pacific          3.3        4.4%                  5.7        7.4% 
Corporate unallocated 4.2                              8.0 
Group                 70.8       10.1%                 50.1       8.0%

H1 FY 2021 Adjusted EBITDA was USD 70.8 million (up 41.3% YoY). The Adjusted EBITDA margin increased 210 basis points to 10.1% from 8.0% in the prior year period. Adjusted EBITDA increased due to operating leverage as a result of higher revenues in EMEA and product mix particularly in the Americas, partially offset by higher adjusted operating expenses.

Adjusted operating expenses increased USD 28.2 million compared to H1 FY 2020. The increase is mainly attributable to higher R&D spend as part of the announced additional investments to support strategic initiatives and due to higher general & administrative expenses (including reversal of 2020 one-off benefits). Adjusted R&D expenses accounted for 11.1% of net revenues in the period under review.

In H1 FY 2021, the operating income was USD 46.3 million compared to an operating loss of USD (9.9) million in H1 FY 2020. Reported EBITDA for the period under review was USD 86.2 million versus USD 31.8 million in H1 FY 2020, an increase of 171.1%.

The adjustments to bridge between reported EBITDA in the Group's financial statements and Adjusted EBITDA are as follows (in USD millions): 


                                         H1 FY 2021 H1 FY 2020 
Reported EBITDA                          86.2       31.8 
Adjustments 
    Restructuring Charges                0.2        15.4 
    Warranty Normalization Adjustments   (7.2)      (6.7) 
    Timing Difference on FX Derivatives  (8.5)      9.7 
Adjusted EBITDA                          70.8       50.1

In the first half of FY 2021, the adjustments were in three categories. Firstly, minor restructuring charges of USD 0.2 million. Secondly, the warranty normalization adjustments of USD (7.2) million representing the amount of warranty provisions made relative to the average actual warranty utilization for the last three years. Thirdly, the timing difference on FX derivatives adjustment of USD (8.5) million relating to mark to market differences on hedges, primarily as a result of GBP exchange rate movements.

Net Income / (Loss) and EPS Net income attributable to Landis+Gyr Group shareholders for H1 FY 2021 was USD 35.0 million translating into earnings per share of USD 1.21, compared to a net loss of USD (2.0) million or USD (0.07) per share for H1 FY 2020.

Cash Flow and Net Debt Net cash provided by operating activities was USD 50.4 million in H1 FY 2021 compared to USD 56.6 million in the prior year period. Free Cash Flow (excl. M&A) was USD 41.6 million, a decrease of USD 3.7 million compared to H1 FY 2020, impacted by operating working capital and higher income taxes. In H1 FY 2021, capital expenditure amounted to USD 8.9 million (down 21.2% YoY), consistent with the Company's asset-light business model.

As of September 30, 2021, the ratio of net debt to Adjusted EBITDA was 0.5 times, with net debt of USD 79.3 million, after the dividend payment of USD 65.9 million in July and the acquisitions of Etrel and True Energy, net of gain on sale of investments, totaling USD 41.4 million in H1 FY 2021.

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October 28, 2021 00:57 ET (04:57 GMT)