Slides
Page 1
27 February 2025 GLX Holding AS Interim presentation 4th quarter and preliminary full-year 2024
Page 2
Largest shareholders Triton (~76%) and Must (~24%) / Creating light for a better life Total revenue MNOK (FY 2024) 4,487 670 Adjusted EBITA MNOK (FY 2024) ~2,100 Full time employees Main production sites 4 Global customer footprint Values / Competent, Committed, Connected, Responsible / We provide sustainable lighting solutions that improve the performance and well-being of people 4,476 >98% of luminaries delivered with LED This presentation contains alternative performance measures (APMs). APMs are described in the GLX Holding AS Interim report 4th quarter 2024. Order intake MNOK (FY 2024) Light Management Systems as % of total revenues FY 2024 Connected lighting 42%19% Countries worldwide 17 Located in
Page 3
Strong growth in sales and profitability / Q4 and FY 2024 highlights Q4 2024: Strong growth in sales and profitability • Adjusted EBITA increased by 54 per cent with an improved adjusted EBITA margin from 10.1 to 14.9 per cent • Good progress on executing our Green Light strategy – focusing on growth opportunities and operational improvement initiatives • Major contracts in the Offshore Wind and Navy verticals awarded to MOW • The RoHS directive remains a key driver of retrofit activity in PBS FY 2024 (preliminary): Strong profitability and sustained operational progress • Market development driven by energy savings, refurbishment activity, connected lighting, and increased activity in all main verticals in MOW • Growth in Light Management Systems • Solid growth in adjusted EBITA • Strong cash flow from operating activities, and leverage ratio at 2.6x 1 Change Q4 2024 vs Q4 2023. See note 7 in the GLX Holding AS Q4 2024 report for impact of MARL International 2 Change FY 2024 vs FY 2023. See note 7 in the GLX Holding AS Q4 2024 report for impact of MARL International 1,167 4.3%1 174 54.1%1 14.9% 4.8 pp1 Total revenue and other operating income (NOK million) Adjusted EBITA (NOK million) Adjusted EBITA margin Q4 2024 Adjusted EBITA (NOK million) 37%2 3 4,487 5.2%2 670 36.6%2 14.9% 3.4 pp2 Preliminary FY 2024 490 465 522 609 670 FY 23 LTM Q1 24 LTM Q2 24 LTM Q3 24 FY 24
Page 4
The Glamox Journey From Nordic focused LED luminaire provider to international leader in smart lighting systems A history of growth • From products to tech enabled smart lighting solutions and services • Smart lighting with secular tailwind from energy efficiency • Strong organic growth, supported by accretive acquisitions • Investment in One Glamox IT platform • Introduction of the Green Light Strategic Aspirations and Fit for Growth 4,487 1,607 3,377
Page 5
Overview of Glamox 5 Professional Building Solutions (PBS) Marine, Offshore & Wind (MOW) Key customer verticals Key customer verticals Sourcing, Production and Logistics (SPL) One common, integrated ‘back-end’ serving both functions with procurement, manufacturing, warehousing and distribution *Note: Adjusted total revenues and other operating incomesplit per FY 2024 Cruise & Ferry Navy Offshore Wind Onshore Energy Offshore Energy Commercial marine 69%* 31%* Office IndustryHealthcare Education Glamox has two complementary business areas with a common, scalable back-end
Page 6
Lighting industry transition Lighting industry is transitioning from LED luminaires to tech enabled smart lighting systems and services 1900 2005 2015 2025 2035 2050 % Penetration in installed base Conventional Lighting LED Lighting Smart Lighting Systems & Services Emerging Services Wave Traditional luminaires LED luminaires with improved energy efficiency & extended lifespan Smart solutions enabling further energy savings, integrated building monitoring & analytics, and enhanced well-being Conventional Lighting LED Lighting Smart Lighting Systems & Services Glamox with very limited sale of conventional lighting (<2%) Illustrative
Page 7
Glamox Green Light Plan 2026 Glow & Grow – together / Creating Light for a Better Life Environmental excellence, simplification & digitalization across the value chain Innovate market driven, human centric, sustainable lighting solutions Win the market for Light Management Systems Accelerate growth in existing markets Grow people, culture & leadership 1 2 3 4 5 We provide sustainable lighting solutions that improve the performance and well-being of people Glamox shall be the preferred project partner by offering a superior customer experience / /
Page 8
Creating Light for a Better life with our Green Light Strategic Plan 2026 Glamox is a leading player with global reach … … at the forefront of LED lighting solutions innovation … … through customer centric approach with strong relationships … … and a solid financial track record in challenging market conditions … … with a scalable & flexible, integrated, operating model ready to grow … … leveraging a solid M&A platform
Page 9
Financial Performance
Page 10
xx% xx.x% xx.x%xx% Q4 2024 Financial highlights - Group Order growth supported by major contract awards in MOW – strong profitability Group adjusted EBITA (NOK million)Group adjusted total revenue and other operating income (NOK million) Adj. EBITA margin (%) 4% 10.1% 14.9% 54% • Q4 2024 Group adjusted total revenues of NOK 1,167 million, corresponding to 4.3% y-o-y growth and FY 2024 of NOK 4,487 million, corresponding to 5.3% increase, driven by a strong development in MOW • Currency adjusted revenue growth increased 3.3% y-o-y in Q4 2024 and 3.7% y-o-y FY 2024 • Q4 2024 order intake of NOK 1,318 million, 12.3% increase y-o-y and FY 2024 of NOK 4,476 million, corresponding to 3.7% increase y-o-y • Driven by growth in MOW, supported by major contract awards in the Navy- and Wind verticals • PBS saw a decrease, but a soft market for professional buildings new construction was partly offset by retrofit projects • Q4 2024 Group adjusted EBITA of NOK 174 million, an increase of 54.1 % y-o-y and 36.6% increase FY 2024 • The quarterly adjusted EBITA margin came in at 14.9% (10.1%), an increase of 4.8 percentage points • The margin increase was driven by revenue growth in MOW, operational enhancements, favourable product- and segment mix and positive effects from cost improvement measures • Limited currency impact on adjusted EBITA due to balanced production footprint 10 5% 11.5% 14.9% 37% * See note 7 in the GLX Holding AS Q4 2024 report for impact of MARL International * * * ** 1 119 1 167 4 261 4 487 Q4 23 Q4 24 FY 23 FY 24 113 174 490 670 Q4 23 Q4 24 FY 23 FY 24
Page 11
x% xx.x%xx.x%xx% Q4 2024 Financial highlights - Professional Building Solutions (PBS) Steady demand for retrofits and renovation, new construction investment decisions advancing at a more gradual pace PBS Order intake (NOK million) PBS adjusted total revenue and other operating income (NOK million) (3%) (6%) • Q4 2024 adjusted revenues decreased by 3.1% y-o-y to NOK 805 million and FY 2024 y-o-y decrease was 1.7% • Retrofit and renovation projects in the Nordics main growth contributor • The market for professional building new construction remains soft • Major market drivers: • Heightened focus on energy prices increasing the attractiveness to invest in modern lighting solutions, in particular LMS solutions • New building standards and environmental regulations driving demand for LED retrofit solutions (RoHS2 directive banning fluorescent tubes in EU) • Quarterly order intake y-o-y decreased 6.1% to NOK 825 million and FY 2024 y-o-y saw a decrease of 3.0% • The impact of the RoHS directive is somewhat lesser compared to the same quarter last year, which saw heightened activity due to the ban on all T5 and T8 fluorescent lamps • Order activity related to the RoHS directive has shown good progress, with sustained demand for retrofit and renovation projects. • External1 forecast indicates a newbuild construction recover in the medium term 11 No exposure to residential newbuild (2%) (3%) 1 Euroconstruct 2 Restriction of Hazardous Substances in Electrical and Electronic Equipment (RoHS). EU rules restricting the use of hazardous substances in electrical and electronic equipment to protect the environment and public health. 830 805 3 171 3 116 Q4 23 Q4 24 FY 23 FY 24 879 825 3 148 3 055 Q4 23 Q4 24 FY 23 FY 24
Page 12
xx% xx.x%x.x%xx% Q4 2024 Financial highlights - Marine, Offshore & Wind (MOW) • Quarterly order intake of NOK 493 million, an increase of 67.1% y-o-y and FY 2024 y-o-y growth of 21.7% • Sales across all main verticals were strong, with the Navy- and Wind verticals receiving a significant boost from major contract awards • Deliveries for the Navy orders will commence in 2026 and beyond • The Wind contract deliveries are scheduled to begin in the second half of 2025 26% y-o-y revenue growth - driven by increased activity across several vessel-segments MOW Order intake (NOK million) MOW adjusted total revenue and other operating income (NOK million) 26% 67% • Q4 2024 adjusted revenues increased by 25.5% to NOK 362 million y-o-y and FY 2024 y-o-y growth was 25.8% • The Commercial Marine, Offshore Energy and Navy verticals were the main quarterly revenue growth contributors • The offshore energy and commercial marine verticals are currently experiencing strong demand • Major market drivers: • Sustained demand in vessel newbuilding activity • Maintenance, repair, and operations (MRO) market remains solid with ship owners having to comply with accelerating energy efficiency schemes 12 26% 22% * * * See note 7 in the GLX Holding AS Q4 2024 report for impact of MARL International 288 362 1 090 1 371 0 500 1000 Q4 23 Q4 24 FY 23 FY 24 295 493 1 167 1 421 Q4 23 Q4 24 FY 23 FY 24 **
Page 13
Cash flow FY 2024 Cash generation driven by increased operating profit, partly offset by interest payments Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities NOK 691 million1 NOK -118 million NOK -386 million NOK million Cash at 31.12.2023 Depreciation, amortization and impairment Changes in working capital Other operating changes Purchase of assets Acquisitions Other investing activities Debt and interests paid Proceeds from issuance of debt Dividend paid Effect of change in exchange rates Cash at 31.12.2024 Operating profit 1 The estimated total currency impact on the core working capital elements (inventory, trade receivables, and trade payables) in the Net cash flow from operating activities was negative NOK 49 million. 13
Page 14
Financial position Leverage ratio at 2.6x end of Q4 2024, decrease on back of strong operational cash flow Net debt NOK million Leverage ratio1 / Key comments • Net debt of NOK 2,032 million • Leverage ratio at 2.6x end of Q4 2024 • Decreased level of interest-bearing debt due to increased cash balance and increased adjusted EBITDA LTM • The Group’s borrowings consist of long-term senior secured notes of NOK 1,350 million and a revolving credit facility (RCF) of NOK 1,400 million • As of 31 December 2024, the total liquidity reserve is NOK 852 million (727) 1 Net interest-bearing debt divided by adjusted EBITDA last twelve months Net debt NOK million Leverage ratio1 14 2 214 2 303 2 221 2 194 2 032 3,6 3,9 3,4 3,0 2,6 0 2 4 6 500 1 000 1 500 2 000 2 500 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Net debt Leverage ratio
Page 15
Summary Order growth supported by major contract awards in MOW – strong profitability Significant increase in adjusted EBITA and margin expansion Market fundamentals and industry dynamics driven by energy savings, refurbishment activity, regulation, and connected lighting / human centric lighting Major contracts in the Wind and Navy verticals awarded to MOW 2 1 3 15 Continued progress in implementing Green Light Strategic Priorities 4 Robust business model offering diverse revenue streams with different cycles 5
Page 16
Appendix
Page 17
Reduce energy bill Short payback time Reduce operating cost Reduce maintenance costs Reduce energy consumption Lighting controls Energy savings+ = Sustainable Energy efficient luminaires
Page 18
“This presentation (the “Presentation”) has been prepared and delivered by GLX Holding AS (“GLX” or the “Company”). Copyright of all published material including photographs, drawings and images in this document remains vested in GLX and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without express prior permission and applicable acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction. The Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or industry and markets in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words “believes”, “expects”, “predicts”, “intends”, “projects”, “plans”, “estimates”, “aims”, “foresees”, “anticipates”, “targets”, and similar expressions. Any forward-looking statements and other information contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts based on the current expectations, estimates and projections of the Company or assumptions based on information currently available to the Company, which are subject to risks, uncertainties and other factors that maycause actual events to differ materially from any anticipated development. Although the Company believes that its expectations and the Presentation are based upon reasonable assumptions, neither the Company, nor any of its subsidiary undertakings or any such person’s officers or employees provides any assurance that the assumptions underlying such forward-looking information and statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to our actual results. Any investment involves risks, and several factors could cause the actual results, performance or achievements of the Company as described herein to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in this Presentation, including, among others, risks or uncertainties associated with the Company’s business, segments, development, growth management, financing, market acceptance and relations with customers. More generally an investment will involve risks related to generaleconomic and business conditions, changes in domestic and foreign laws and regulations, taxes, changes in competition and pricing environments, fluctuations in currency exchange rates and interest rates and other factors. Should one or more of such risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this Presentation. GLX is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither GLX nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use. The Presentation speaks and reflects prevailing conditions and views as of the date of this release. It may be subject to corrections and change at any time without notice except as required by law. The delivery of this Presentation - or any further discussions of the Company with any recipient - shall not, under any circumstances, create any implication that the Company assumes any obligation to update or correct the information herein, nor any implication that there has been no change in the affairs of the Company since such date.” Disclaimer 18
Page 19
glamox.comglamox.com Thank you!