Anregungen

    Signify Geschäftsergebnisse für das vierte Quartal und Gesamtjahr 2020

    January 29, 2021

    Signify reports full year 2020 sales of EUR 6.5 billion, an Adj. EBITA margin of 10.7% and a free cash flow of EUR 817 million

     

    Fourth quarter 20201

    • Sales of EUR 1,878 million; 7.4% nominal sales growth and CSG of -5.9%
    • Adj. indirect costs down EUR 18 million, or -3.9% excl. FX effects, changes in scope2 and provisions for the reimbursement of employee contributions
    • Adj. EBITA margin improved by 20 bps to 13.4%
    • Net income increased by 39.4% to EUR 137 million
    • Free cash flow of EUR 332 million (Q4 19: EUR 308 million)

     

    Full year 2020

    • Signify’s installed base of connected light points increased from 56 million at YE 193 to 77 million at YE 20
    • Sales of EUR 6,502 million, nominal sales growth of 4.1% and CSG of -12.7%
    • LED-based sales represented 80% of total sales (FY 19: 79%4)
    • Adj. indirect costs down EUR 166 million, or -9.1% excl. FX effects and changes in scope2
    • Adj. EBITA grew by 7.2% to EUR 695 million
    • Adj. EBITA margin improved by 30 bps to 10.7%
    • Net income increased by 25.4% to EUR 335 million (FY 19: EUR 267 million)
    • Free cash flow amounted to EUR 817 million (FY 19: EUR 529 million), representing 12.6% of sales
    • Net debt position of 1,275 million at year-end 2020 with a net debt/EBITDA ratio of 1.7x
    • Cooper Lighting and Klite integration and synergies ahead of plan
    • Successful completion of Brighter Lives, Better World 2020 sustainability program and achievement of carbon neutrality for all operations across the world

     

    Dividend

    • Proposal to pay extraordinary cash dividend of 1.35 per share, announced on January 13, 2021
    • Proposal to pay regular cash dividend of EUR 1.40 per share over 2020

     

    Eindhoven, the Netherlands – Signify (Euronext: LIGHT), the world leader in lighting, today announced the

    company’s 2020 full year results.

     

    “While our industry was severely impacted by the pandemic, we managed to strengthen our financial performance. Our gross margin increased due to rigorous price and cost management, resulting in our seventh consecutive year of Adjusted EBITA margin improvement. From the start of the crisis, we were disciplined in working capital management, allowing us to generate a record-high free cash flow of EUR 817 million. As per our strategy, the contribution from our digital divisions increased substantially in 2020. In line with our governance principles, we decided to pay back both our employees and our shareholders, who have supported us since the beginning of the crisis. At the same time, we confirmed a continued deleveraging commitment. It was also a year in which we increased the installed base of connected light points to 77 million, illustrating the growing interest for connected lighting. Lastly, we overachieved on our 2020 sustainability goals, including carbon neutrality,” said CEO Eric Rondolat.

     

    “The ongoing nature of the pandemic means we remain cautious about market developments in 2021 but we are confident in our ability to further adapt, as demonstrated throughout 2020. As outlined during our Capital Markets Day in December, we are optimizing our costs in several ways to enhance our competitiveness in a rapidly transforming Lighting industry. We are making our central organization leaner in order to reduce our indirect costs as a percentage of sales, which have increased due to the COVID-19 pandemic. Regrettably, these changes will result in a number of positions being lost and we will support impacted employees. At the same time, we will continue to innovate and develop our growth platforms to capture new business opportunities in line with our strategy. I see the further integrations of Cooper and Klite positively impacting our performance. 2021 is also the first year of our new sustainability program and marks a great opportunity to embark on the exciting journey to double our positive impact on the environment and society in the next five years.”

    Environment, Society & Governance

     

    Sustainability is central to Signify's strategy. It is the company's purpose to unlock the extraordinary potential of light for brighter lives and a better world. In 2020, Signify successfully completed its Brighter Lives, Better World 2020 sustainability program, even outperforming on many of its ambitious commitments.

     

    Sustainable revenues:

    • 84.1% of revenues from a portfolio of sustainable products, systems and services, exceeding the 2020 target of 80%
    • 2.9 billion LED lamps and luminaires delivered since 2015 compared to a target of more than 2 billion

     

    Sustainable operations:

    • Carbon neutrality for all operations across the world
    • Usage of 100% renewable electricity
    • Zero waste to landfill across all manufacturing sites
    • Best-ever safety performance (Total Recordable Case rate of 0.22, target <0.35)
    • 99% performance rate in supplier sustainability (target 90%)
    • Lit the lives of 5 million people through expansion of solar lighting

     

    In September 2020, Signify embarked on a course to have doubled its positive impact on the environment and

    society in 2025 with the following ambitions:

    • Double the pace at which we achieve the 1.5 C scenario of the Paris Agreement
    • Double our Circular revenues to 32%
    • Double our Brighter Lives revenues to 32%
    • Double our % of women in leadership to 34%

     

    Signify’s commitment is recognized in the Dow Jones Sustainability World Index and the CDP A-List for Climate.

    Outlook

     

    Signify is committed to the following medium-term guidance for the period 2021-2023:

    • Yearly comparable sales growth of 0% to 5%
    • Adj. EBITA margin of 11% to 13% in 2023
    • Free cash flow above 8% of sales for the period 2021-2023
    • ROCE of at least 11% for the period 2021-2023

     

    For 2021, Signify expects positive comparable sales growth, the level of which will depend on the recovery pattern in its markets. In addition, the company expects to continue its steady progress towards its mediumterm Adj. EBITA margin objective. Cash flow, following two years of significant structural working capital improvements, is expected to exceed 8% of sales. As guided for the mid-term, this includes a higher initial cash outflow for cost restructuring and continued post-merger integration activities.

    Capital allocation

     

    Signify remains focused on maintaining a robust capital structure and is committed to an investment grade rating. The company plans to pay an increasing annual dividend per share in cash year-on-year and will continue to prioritize deleveraging to strengthen its balance sheet and return to a leverage ratio of reported net debt/EBITDA of less than 1x by the end of 2022. Signify will also continue to invest in R&D and other growth opportunities, while pursuing selective M&A opportunities in line with its strategic priorities.

     

    In line with its commitment to its shareholders, Signify proposes to declare a cash dividend of EUR 1.40 per share for 2020. This is in addition to the previously proposed extraordinary cash dividend of EUR 1.35 per share, announced on January 13, 2021. The amount of extraordinary dividend is in line with the dividend proposal of EUR 1.35 for 2019, which was withdrawn to ensure the company's resilience and to strengthen its financial position during the COVID-19 crisis. Both dividend proposals will be subject to approval at the Annual General Meeting of Shareholders (AGM) to be held on May 18, 2021. Further details will be provided in the agenda for the AGM.

     

    In addition to this, the company announced on January 13, 2021, that it intends to repay a minimum of EUR 350 million of debt in 2021, thereby confirming its commitment to further deleverage.

    Conference call and audio webcast

    Eric Rondolat (CEO) and Javier van Engelen (CFO) will host a conference call for analysts and institutional investors at 9:00 a.m. CET to discuss fourth quarter and full year results 2020. A live audio webcast of the conference call will be available via the Investor Relations website.

    Financial calendar 2021

    February 23, 2021: Annual Report publication

    April 30, 2021: First quarter results 2021

    May 18, 2021: Annual General Meeting

    May 20, 2021: Ex-dividend date

    May 21, 2021: Dividend record date

    June 1, 2021: Dividend payment date

    July 23, 2021: Second quarter results 2021

    October 29, 2021: Third quarter results 2021

    1This press release contains certain non-IFRS financial measures and ratios, such as comparable sales growth, EBITA, adjusted EBITA and free cash flow, and related ratios, which are not recognized measures of financial performance or liquidity under IFRS. For a reconciliation of these non-IFRS financial measures to the most directly comparable IFRS financial measures, see appendix B, Reconciliation of non-IFRS financial measures, of this press release.

    2Changes in scope relate to the consolidation of Cooper Lighting and Klite.

    32019 includes pro-forma Cooper Lighting and WiZ.

    42019 includes pro-forma Cooper Lighting.

    Important information

     

    Forward-Looking Statements and Risks & Uncertainties

    This document and the related oral presentation contain, and responses to questions following the presentation may contain, forward-looking statements that reflect the intentions, beliefs or current expectations and projections of Signify N.V. (the “Company”, and together with its subsidiaries, the “Group”), including statements regarding strategy, estimates of sales growth and future operational results.

     

    By their nature, these statements involve risks and uncertainties facing the Company and its Group companies, and a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement as a result of risks and uncertainties. Such risks, uncertainties and other important factors include but are not limited to: adverse economic and political developments, the impacts of COVID-19, rapid technological change, competition in the general lighting market, development of lighting systems and services, successful implementation of business transformation programs, impact of acquisitions and other transactions, reputational and adverse effects on business due to activities in Environment, Health & Safety, compliance risks, ability to attract and retain talented personnel, adverse currency effects, pension liabilities, and exposure to international tax laws. Please see “Risk Factors and Risk Management” in Chapter 12 of the Annual Report 2019 for discussion of material risks, uncertainties and other important factors which may have a material adverse effect on the business, results of operations, financial condition and prospects of the Group. Such risks, uncertainties and other important factors should be read in conjunction with the information included in the Company’s Annual Report 2019.

     

    Additional risks currently not known to the Group or that the Group has not considered material as of the date of this document could also prove to be important and may have a material adverse effect on the business, results of operations, financial condition and prospects of the Group or could cause the forward-looking events discussed in this document not to occur. The Group undertakes no duty to and will not necessarily update any of the forward-looking statements in light of new information or future events, except to the extent required by applicable law.

     

    Market and Industry Information

    All references to market share, market data, industry statistics and industry forecasts in this document consist of estimates compiled by industry professionals, competitors, organizations or analysts, of publicly available information or of the Group’s own assessment of its sales and markets. Rankings are based on sales unless otherwise stated.

     

    Non-IFRS Financial Measures

    Certain parts of this document contain non-IFRS financial measures and ratios, such as comparable sales growth, adjusted gross margin, EBITA, Adjusted EBITA, and free cash flow, and other related ratios, which are not recognized measures of financial performance or liquidity under IFRS. The non-IFRS financial measures presented are measures used by management to monitor the underlying performance of the Group’s business and operations and, accordingly, they have not been audited or reviewed. Not all companies calculate non-IFRS financial measures in the same manner or on a consistent basis and these measures and ratios may not be comparable to measures used by other companies under the same or similar names. A reconciliation of these non-IFRS financial measures to the most directly comparable IFRS financial measures is contained in this document. For further information on non-IFRS financial measures, see “Chapter 18 Reconciliation of non-IFRS measures” in the Annual Report 2019.

     

    Presentation

    All amounts are in millions of euros unless otherwise stated. Due to rounding, amounts may not add up to totals provided. All reported data are unaudited. Unless otherwise indicated, financial information has been prepared in accordance with the accounting policies as stated in the Annual Report 2019 and semi-annual report 2020.

     

    Change in reporting segments

    Effective Q2 2020, to further adapt to the industry transition and strengthen customer centricity, Signify changed the organizational structure, which included changing the previously four business groups (BG’s) to three divisions.

     

    • Division Digital Solutions (formerly BG Professional, including Cooper Lighting Solutions) offers luminaires, lighting systems and services for the Internet of Things to the customers in the professional segment;
    • Division Digital Products (combines BG LED and BG Home). This division offers LED lamps, LED luminaires and connected products, including Hue and Wiz, and LED electronics to professional customers, OEM partners and consumers. By bringing together its entire consumer LED portfolio, Signify can better manage this lighting category for its channel partners; and
    • Division Conventional Products (formerly BG Lamps) continues to focus on conventional lamps and electronics for professional customers, OEM partners and consumers. It is organized separately to bring a clear distinction between conventional and digital offerings.

     

    In line with this change, effective Q2 2020, Signify's operating segments are Digital Solutions, Digital Products, and Conventional Products. The segments are organized based on the nature of the products and services. ‘Other’ represents amounts not allocated to the operating segments and includes certain costs related to central R&D activities to drive innovation as well as group enabling functions.

     

    Market Abuse Regulation

    This press release contains information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

    For further information, please contact:

    Signify Investor Relations

    Thelke Gerdes

    Tel: + 31 6 1801 7131

    E-mail: thelke.gerdes@signify.com

     

    Signify Corporate Communications

    Elco van Groningen

    Tel: +31 6 1086 5519

    E-mail: elco.van.groningen@signify.com

    Media Assets

    Q4 Business Highlights
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    Über Signify

     

    Signify (Euronext: LIGHT) ist der weltweit führende Anbieter für Licht- und Beleuchtungslösungen für professionelle Anwender, Endkonsumenten und Beleuchtung im Internet der Dinge. Mit unseren Philips Produkten, den vernetzten Interact Lichtsystemen und datengestützten Services, bieten wir einen Mehrwert für Unternehmen und verändern das Leben zu Hause, in Gebäuden sowie in urbanen Räumen. Mit einem Umsatz von 6,5 Milliarden Euro im Jahr 2020, rund 38.000 Mitarbeitern und einer Präsenz in über 70 Ländern erschließen wir das außergewöhnliche Potenzial von Licht für ein angenehmeres Leben und eine bessere Welt. Wir haben Klimaneutralität erreicht, sind seit unserem Börsengang vier Jahre in Folge im Dow Jones Sustainability World Index vertreten und wurden 2017, 2018 und 2019 als Branchenführer im Bereich Nachhaltigkeit ausgezeichnet. Neuigkeiten von Signify finden Sie im Newsroom, bei Twitter und LinkedIn sowie auf Instagram. Informationen für Investoren finden Sie auf der Seite Investor Relations.

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