Landis+Gyr : Half Year FY 2023 Investor Presentation

Half Year 2023

Earnings Presentation

Werner Lieberherr | Chief Executive Officer

Elodie Carr Cingari | Chief Financial Officer

October 25, 2023

Disclaimer

Forward-looking Information

This presentation includes forward-looking information and statements, including statements concerning the outlook for Landis+Gyr Group AG and Landis+Gyr group ("Landis+Gyr"). These statements are based on current expectations, estimates and projections about the factors that may affect Landis+Gyrʼs future performance, including global economic conditions, and the economic conditions of the regions and industries that are major markets for Landis+Gyr. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates", "targets", "plans", "outlook" "guidance" or similar expressions.

There are numerous risks, uncertainties and other factors, many of which are beyond Landis+Gyrʼs control, that could cause Landis+Gyrʼs actual results to differ materially from the forward-looking information and statements made in this presentation and which could affect Landis+Gyrʼs ability to achieve its stated targets. The important factors that could cause such differences include, among others: continued or future effects of the COVID-19 pandemic, global shortage of energy or supplied components as well as increased freight rates, business risks associated with the volatile global economic environment and political conditions, including wars or military actions; market acceptance of new products and services; changes in governmental regulations and currency exchange rates; estimates of future warranty claims and expenses and sufficiency of accruals; and other such factors as may be discussed from time to time in Landis+Gyr Group AG filings with the SIX Swiss Exchange. Although Landis+Gyr Group AG believes that its expectations reflected in any such forward-looking statement are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved.

Alternative Performance Measures

This presentation may contain information regarding (a) preliminary, unaudited numbers that may be subject to change and (b) alternative performance measures such as reported EBITDA, Adjusted EBITDA, Adjusted Gross Profit, Adjusted Research and Development, Adjusted Sales, General and Administrative, and Adjusted Operating Expenses. Definitions of these measures and reconciliations between such measures and their USGAAP counterparts if not defined in the presentation may be found in the 'Supplemental Reconciliations and Definitions' section on pages 28 to 30 of the Landis+Gyr Half Year Report 2023 on the website at www.landisgyr.com/investors/results-center. Due to rounding, numbers presented may not add up to the totals provided.

2 | © Landis+Gyr 2023 | H1 FY 2023

Business Performance H1 FY 2023

Order intake

USD 958.1m

+22.5% YoY in cc

Book-to-bill 1.0

Net revenue

USD 970.5m

+32.1% YoY in cc

Order backlog

USD 3'730.5m

+5.4% YoY in cc

Adjusted EBITDA

USD 108.1m

11.1% margin

• Sustained solid order intake / book-to-bill in Americas and EMEA resulting in USD 3.7b backlog while maintaining strong revenue growth
• Strong net revenue growth driven by backlog execution and improved component availability
• Adjusted EBITDA and margin increase due to operating leverage and slow recovery of supply chain cost
• Free Cash Flow (excl. M&A) affected by continued strategic inventory investments to support backlog conversion

Net debt

USD 134.2m

EPS (diluted)

USD 1.43

Free Cash Flow

(excl. M&A)

USD 5.1m

Devices shipped

10m

▪

▪

Strong balance sheet position with low net debt / adjusted EBITDA ratio of 0.67x

Shipped 10 million devices in H1 (up 38%), also strengthening installed base for software revenues

Net Revenue Split

EMEA

USD 322m

33%

58%

(78.2)%

+38% YoY

▪ Decarbonization targets approved by Science		9%
Americas
Based Targets initiative (SBTi)	USD 565m	Asia-Pacific
		USD 84m

As a recession-resilient company, Landis+Gyr is positioned in the sweet spot of the energy transition

3 | © Landis+Gyr 2023 | H1 FY 2023

Committed to the

Science Based

Target Initiative

2030

Carbon Neutral

2050

Net Zero

Targets approved in

2023

Reporting according to

GRI since 2020

ESG risk rating of 7.4

(Negligible Risk)

Company grade

of "B+"

Joined in

November 2019

ESG corporate rating

Prime status (top decile)

Top 5% of

sustainable companies

AA-rated

(top 15% in peer universe)

9.5

million tons CO2

Direct CO2 emissions avoided through installed Smart Metering base in FY 2022

9.5 m tons	9 m tons	8.5 m tons	8 m tons	7 m tons
FY 22	FY 21	FY 20	FY 19	FY 18

4 | © Landis+Gyr 2023 | H1 FY 2023

Americas - Key Developments in H1 FY 2023

Smart Metering

• Achieved significant deployment milestones, hitting 1.3m metering endpoints with PSE&G NJ and over 1m with Ameren
• G480 ultrasonic gas meter certification paving way to serve WEC Energy Group's expansive network of over 200k endpoints

Grid Edge Intelligence

▪	Revelo E360 and interoperability success highlighted by kicking off large-scale Revelo deployment via the Wi-SUN network at	Revelo™
	National Grid NY, and by the regulatory approval for AMI for PPL RI
▪	Continuing to proritize 'SaaS-first' strategy across all products, and growing services penetration	G480

Smart Infrastructure	Smart Gas

• Secured first Americas EV deal with Enerpro Systems for 1,000 INCH PRO Level 2 chargers
• Increasing federal focus on cybersecurity, with the SEC's latest mandate for public firms (IOUs) to disclose cyber events andIMAGESHead-endSystems board discussions, strengthens the business rationale for Landis+Gyr's security offerings

Selected Wins

• Salt River Project meter extension (400k endpoints)
• CLECO AMI refresh
• Tucson Electric Power Revelo transition

Technology

• Key product launches in H1 include the Series 5 M125 residential gas retrofit modules, which offer enhanced meter reading capabilities and tamper sensors
• Rollout of Revelo Application Developer Kit to developer community enables increased software offering

Meter Data Management

Magno

Cabinet Meter

Strong momentum in the Americas, driven by high grid infrastructure investments

5 | © Landis+Gyr 2023 | H1 FY 2023

EMEA - Key Developments in H1 FY 2023

Smart Metering

• In Germany, revenues increased with robust market share growth in a dynamic environment
• Solid project wins by Luna and in South Africa

Grid Edge Intelligence

• In the UK, SMETS2 program expected to continue past '25, and successful market share gains in ICG segment
• In the Nordics, continued success in the national 2nd wave smart meter roll out
• Israel Electric Corporation rollout project successfully launched to deliver 566k residential smart electricity meters (extendable to 4.2m units), head-end system and maintenance of the existing MDM system and related applications

Smart Infrastructure

• Solid wins in EV Charging business, particularly in the UK, despite industry headwinds

Selected Wins

• In Switzerland, key regional wins of >150k metering points with Oiken and St.Gallen
• Major sales at Fluvius, E.ON Sweden, and in the Nordic markets with successful market expansion of E660

Technology

• Next Generation Grid meter family introduced with launch of E860
• Introduced analytics platform with first Power Quality Cloud customers live, providing critical insights for grid operations
• Launch of a new residential EV charging station platform to capture new market segment

E360

Power Quality Cloud

IMAGES

EV Solutions

EMEA well positioned to capture opportunities, driven by the accelerated energy transition in the region

6 | © Landis+Gyr 2023 | H1 FY 2023

APAC - Key Developments in H1 FY 2023

Smart Metering

• CLP Hong Kong, deployed 2m+ AMI meters milestone
• In Australia and New Zealand, leading smart water sustainable water management in residential metering

Grid Edge Intelligence

• In Australia, delivered 500k+ next generation Grid Edge meters since its release in FY21
• In Queensland, Australia, Gridstream SaaS initiated with 10k+ Grid Edge meters installed in FY23 H1

Smart Infrastructure

• In New Zealand, Smart Water SaaS with 40k+ end points currently under operation

Selected Wins

• In Hong Kong, signed three years maintenance support contract for Gridstream HES
• In the Philippines, supported and upgraded contract for Gridstream HES
• In Queensland, Australia, won 10k R1100 Grid Edge devices enabling DER and flexibility management services
• In China, continued leadership position in high end Grid segment and won first order of NB-IoT smart residential Heat meters

Technology

• Acquisition of Thundergrid, a turnkey EV infrastructure services company, strengthens EV offering in the region

E360™

Smart Water

EV Solutions

Increased profitability through product diversification through software, services and EV infrastructure offering

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Comprehensive EV Solutions Portfolio

Hardware

Software

Smart Charging

EV Load Management

AC L2 CHARGERS			EV CHARGE POINT &	SMART	EV LOAD MANAGEMENT
7,4KW AND 22KW			ENERGY MANAGEMENT SYSTEM	CHARGING APP		PLATFORM
To support home, semi-public,	Scalable charger-agnostic software	For consumers to prioritize	Aggregating EV to help balancing
public and fleet charging		supporting EV charging monitoring	charging when electricity is the	the electricity grid by pausing and
			& control and load management for	cheapest and/or most climate		restarting charging
			demand response	friendly
THUNDERGRID		Program Management, Software & Services		Support Services
Customer Funnel		EV Transition	Engineering &	Infrastructure	Hardware &	O&M
Customer Technical	Program	Development (EPC	Software
Generation	Services
		Advisory	Development	sub-contract)	Provider

Portfolio expansion offers end-to-end solution to meet evolving customer needs

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Key Contract Wins

Smart Metering

Landis+Gyr will provide advanced metering technology for EPCOR water meters in city of Edmonton

Neenah Water Utility deploys Landis+Gyrs Gridstream AMI Solution under a shared network agreement with WE Energies

Grid Edge Intelligence

Israel Electric Corporation (IEC) and Landis+Gyr sign agreement for smart metering solutions
Tipmont signs agreement with Landis+Gyr to deploy smart grid technology	IMAGES

Smart Infrastructure

AEP Texas untertakes extensive smart lighting and asset management project as part of AMI contract extension Landis+Gyr completes contract with Enerpro for Level 2 EV Chargers

Repower Italia migrates to Ocean EV Charge Point Management Software to accelerate growth

Atlante chooses Landis+Gyr charging solution to support the expansion of e-mobility services in southern Europe

Strong win rate in all three strategic pillars and regions, reflected in continuously high backlog

9 | © Landis+Gyr 2023 | H1 FY 2023

Consolidated Results - H1 FY 2023

USD in millions (except per share amounts)	H1 2023	H1 2022	Change
Order intake	958.1	773.2	23.9%
Change in constant currency			22.5%
Committed backlog	3'730.5	3'479.7	7.2%
Net revenue to external customers	970.5	728.7	33.2%
Change in constant currency			32.1%
Adjusted Gross Profit	304.9	226.9	34.4%
Adjusted Gross Profit %	31.4%	31.1%	30 bps
Adjusted Operating Expenses	(196.8)	(178.2)	10.4%
Adjusted EBITDA	108.1	48.7	122.0%
Adjusted EBITDA %	11.1%	6.7%	440 bps
Operating Income	64.2	10.5	511.4%
Net Income attributable to shareholders	41.2	186.5	(77.9)%
Earnings per share - diluted (in USD)	1.43	6.57	(78.2)%
Cash provided by (used in) operating activities	24.0	(82.9)	n/a
Free Cash Flow (excluding M&A)	5.1	(38.9)	n/a
Net Debt	134.2	79.3	69.2%

• Sustained solid backlog supported by order intake in Americas and EMEA
• Strong revenue growth led by Americas
• Adjusted EBITDA expansion driven by operating leverage, operational efficiencies and slow recovery of supply chain cost
• Free Cash Flow impacted by OWC requirements, primarily due to strategic inventory investments to support growth
• EPS H1 FY 2022 excl. Intellihub divestment of USD 1.01 (+41.6%)

10 | © Landis+Gyr 2023 | H1 FY 2023