Landis+Gyr : Full Year FY 2022 Earnings Presentation

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: the duration, severity and geographic spread of the COVID-19 pandemic, government actions to address or mitigate the impact of the COVID-19 pandemic, and the potential negative impacts of COVID-19 on the global economy, the company's operations and those of its customers and suppliers; global shortage of 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; costs associated with compliance activities; 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 2022 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 | FY 2022

Business Performance FY 2022

Order intake

Book-to-bill 1.15

Net revenue

+20.8% YoY in cc

Order backlog

+11.6% YoY in cc

Adjusted EBITDA

8.3% margin

• Sustained solid order intake driven by Americas and EMEA resulting in a new record high order backlog
• Strong net revenue growth driven by backlog execution supported by improved component availability - record second half year
• Adjusted EBITDA and margin negatively impacted by supply chain related cost as guided
• Significant temporary inventory build-up to convert record backlog results in negative free cash flow (excl. M&A) for FY 2022 as guided

Net debt

EPS (diluted)

+182.6%

Free Cash Flow

(excl. M&A)

Distribution (DPS)

+2.3%

• Net income of USD 207.9 million boosted by gain from divestment of minority stake in Intellihub
• Strong balance sheet position with low net debt / adjusted EBITDA ratio of 0.47x
• Proposed distribution to shareholders in line with progressive dividend policy

Net Revenue Split

	EMEA
	USD 602m
	36%
53%
Americas	11%
USD 888m	Asia-Pacific
	USD 191m

Landis+Gyr is positioned in the sweet spot of the energy transition with a strong focus on decarbonizing the grid

3 | © Landis+Gyr 2023 | FY 2022

Committed to the

Signed up to SBTi

in 2022

Reporting according to

GRI since 2020

ESG risk rating of 10.7

(low risk)

Company grade

of "B+"

4 | © Landis+Gyr 2023 | FY 2022

Joined in

November 2019

Direct CO2 emissions avoided through

ESG corporate ratinginstalled Smart Metering base in FY 2022

Prime status (top decile)

Top 5% of

sustainable companies

	9.5 m tons	9 m tons	8.5 m tons	8 m tons	7 m tons
AA-rated	FY 22	FY 21	FY 20	FY 19	FY 18
(top 15% in peer universe)

Americas - Key Developments in FY 2022

• Continue to build the future with a stellar year of Order Entry (USD ~1.2b) and Book to Bill ratio of 1.31
• Signed 129 agreements, including APS and AEP meter extensions, JEA Managed Service Extension, and EPCOR water, while pipeline remains strong
• Major wins in South America as economic indicators move favorably with Equatorial, ENEL, and EDP for cabinet meters + ENEL, and Iberdrola for C&I meters
• Grid edge intelligence sensor Revelo E360 Generally Available - first shipments made to customers
• Large AMI rollouts PSE&G NJ, National Grid, LKE, AES Ohio are scaling with several new deployments kicked off including PGE, and EPCOR Water
• 34 New Product Introductions completed including Revelo E360, App Manager, Wi-SUN FAN 1.1, Command Center/Tech Studio releases, FOCUS AXei, FOCUS AXe Reverse Actuator, Enhanced Mesh Router, Enhanced Streetlight Controller, Magno Cabinet Meter
• Continued technological advancements and developments, including Revelo portfolio, Magno Cabinet Meter enhancements, G480 NB-IoTultrasonic gas meter, edge intelligence ecosystem, water module portfolio
• Higher computing power, intelligence at the edge for localized decision making is becoming more critical as the penetration of Distributed Energy Resources increase
• Inflation Reduction Act, CHIPS Act, Infrastructure Investment & Jobs Act allocate funding for resiliency and smart grid R&D and grants, renewable energy tax credits, EV rebates, and energy efficiency programs

Revelo™

G480 Smart Gas

IMAGES

Head-end Systems

Meter Data Management

Magno

Cabinet Meter

Well positioned for the future due to strong grid edge offering and record backlog of USD 2.86 billion

5 | © Landis+Gyr 2023 | FY 2022