landis+gyr –a portrait analyst presentation
TRANSCRIPT
Analyst Presentation
November 2008Confidential Company Overview & Update DRAFT
November 2008
Landis+Gyr – a Portrait
Today, Landis+Gyr…
+…is leading the transformation towards “Smart Metering” offering intelligent energy meters and total solutions mainly to energy utilities.
+…creates customer value through innovation in energy management that produces better economic and environmental outcomes for utilities, consumers and society.
+…develops, manufactures and sells meters, devices and system solutions for electricity, gas, water and heat for residential, commercial, industrial and grid applications.
Meters &Endpoints
Communication Networks
Data ManagementApplication
Demand Management
Distribution Automation
Deployment & Operations
services
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A global Powerhouse for Advanced Metering
Key Figures BY 2008
+Sales 1,364mUSD
+EBITDA 169mUSD
+Employees 5,061North America
+ Sales 383mUSD
+ Employees 1,331
+ Operations 4
South America
+ Sales 93mUSD
+ Employees 410
+ Operations 1
EMEA
+ Sales 715mUSD
+ Employees 1,983
+ Operations 9Asia Pacific
+ Sales 174mUSD
+ Employees 1,293
+ Operations 66
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Facts & Figures BY 2008
Key Figures BY 2007 BY 2008
Sales 1,227 mUSD 1,364 mUSD
R&D 5.3% 5.6%
Manufacturing Sites 16 15
Operating Entities 45 45
Employees 5‘061 5’073
Sales by regionsSales by regions Sales by segmentsSales by segments
Nordamerika28%
Südamerika 7%EMEA52%
Asien-Pazifik13%
Residential AMM57%
ICG17%
Others13%
Gas6%
Residential electro-mechanical 7%
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North America: Front-Runner with Advanced Metering Infrastructure
Facts & Figures BY 2007 BY 2008
Order entry 197 mUSD 614 mUSD
Sales 375 mUSD 383 mUSD
Employees 1,280 1,331Centre of competenceVolume ManufacturingRegional Headquarters
Partner for innovative Technology andTotal Solutions
Alpharetta
Pequot LakesPositionioning
+ #2 for AMI in North America
+ Largest fixed-network customer base, 20 million endpoints deployed or under contract
+ Preferred supplier for AMI meters in the US
Reynosa
Lafayette
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South America: Preferred Partner for Electricity Metering
Preferred Partner –innovative & reliable
Facts & Figures BY 2007 BY 2008
Order entry 130 mUSD 81 mUSD
Sales 91 mUSD 93 mUSD
Employees 408 410
Positioning
+ Market leader for Electricity Meters
+ Pioneer in AMM solutions to fight energy theft
+ Successful entry into services
Centre of CompetenceVolume assemblyRegional HeadquartersSales entity
Curitiba
Buenos Aires
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One-stop-shop multi energy solutions
EMEA: Leading with Advanced Meter Management for Multi Energy Solutions
Facts & Figures BY 2007 BY 2008
Order entry 738 mUSD 605 mUSD
Sales 607 mUSD 715 mUSD
Employees 1,942 1,983
Positioning
+ #1 in AMM
+ #1 in Prepayment for gas and electricity
+ Leader in load and tariff management
Centre of competenceVolume manufacturing siteRegional headquarters
Jyskä, FIN
Manchester, UK
Northfields, UK
Montluçon, FRA
Isando, RSA
Corinth, GRE
Nurenberg, GER
Fehraltorf, SWZZug, SWZ
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Intelligent Solutions for changing Needs
Asia Pacific: From Meters to Advanced Metering
Facts & Figures BY2007 BY 2008
Order entry 164mUSD 171 mUSD
Sales 155 mUSD 174 mUSD
Employees 1,431 1,293
Positioning
+ Leader in electricity metering in Australia & New Zealand
+ Leader in China and India with high-quality “long life meters”
+ #1 to #3 position with Load Management, Prepayment and Gas in local niche markets
Volume assemblyRegional HeadquartersSales entities
Centre of Competence
Sydney, AUS
Melbourne, AUS
Zhuhai, CHN
New Delhi, INDKolkatta, IND
Baddhi, IND
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A global network of experienced specialists and proven technologies
Our Value Proposition
Combining the skills and expertise of leading specialists:
+ A unique offer of qualified specialists
+ Reliable technology, tailoredto the specific needs of energy utilities
+ Experienced partners, proven track-record and in-depth knowledge of our customers’processes
+ “All from one” – enviable market offering: from process analysis to turn-keyinstallations includingdeployment and operations
COMPETENCE
PRODUCTS + SERVICES
1.Customer needanalysis
2.Solution design with proven technology
3.Reliabledeployment
4.Dependableoperation
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Our market offering:Total solutions to Manage Energy Better
UtilityProcesses
IntegrationTools
DataMgmt.
MeteringPoint
In-House-Display2-Way
Com-muni-cation
2-WayCom-muni-cation
Meters, IHD’s, load & tariff
shedding devices
Communi-cations
modulesNetwork
AMI backend& host system
MDMApplications
Installation & deployment servicesSystems integration
Managed services – AMI, MDM, Applications
Other services – Turnkey solutions
+ In-Home-Display
+ Load Shedding Devices
+ Electricity+ Gas+ Heat+ Water
+ Meter dataAcquisition& Processing
+ Meter ParkMgmt.
+ CustomerServices
+ NetworkOperations
+ Meter Data Mgmt
+ Meter Park Op.
+ Balance settlement
+ Billing+ Customer
Services
2-WayCom-muni-cation
2-WayCom-muni-cation
2-WayCom-muni-cation
2-WayCom-muni-cation
2-WayCom-muni-cation
2-WayCom-muni-cation
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AMI and Smart Grid Momentum is Driven by Fundamental Changes in the Electric Utility Industry
External demand drivers are
pullingutilities to offer new services
• These forces are fundamentally driving momentum for AMI
• Relative ranking of forces differs within jurisdictions and across countries
• New forms of generation – Distributed generation and
storage– Intermittent and renewable
generation
• Evolving customer experience– Demand-side management– Value-added services– Customer service quality
• Environmental pressure– EE and RPS mandates– Carbon abatement
• Aging– Infrastructure– Workforce
• Grid performance– Reliability (SAIFI, CAIDI)– System efficiency– Safety– Security
Internal factors
are pushingutilities to change the way they operate in order to improve current services
• Supply and demand gap– Pending rate increases
“Push”
“Pull”11 - Landis+Gyr - a company portrait
R&D employees: 620
+ Industry’s largest R&Dand knowledge pool
+ Proven track record
+ Own core technologies
Global Footprint & local Presence
+ Network of “centres of competence” and dedicated assembly lines
+ Global supply chain
Centre of competence Volume manufacturing site Regional Headquarters
Curitiba, BRAIsando, RSA
Reynosa, MEX
Pequot Lakes, US
Atlanta, USLafayette, US
Sydney, AUS
Melbourne, AUS
Baddhi, IND
New Delhi Kolkatta, INDZhuhai, CHN
Jyskä, FIN
Manchester, UK
Northfields, UK
Zug, CH
Corinth, GREMontluçon, F
Nurenberg, DFehraltorf, CH
USA30%
SWZ12%
GBR12%
CHN7%
FIN10%
FRA4% AUS
5% BRA6%
IND6%
RSA3%
GER3%ESP
1%
NOR1%
R&D employees: 755R&D employees: 755
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Large contracts in North America
+ US$275 million product sale contract for ~3.4 million AMM endpoints with 2-way RF communications
+ Joint development of the Oncor Smart Texas Mobile Experience Center for regulatory and consumer education & supportUSA
+ Turnkey project for ~500,000 electric, gas and water AMI endpoints with 2-way RF communications
+ Deployment is completed; Colorado Springs now rated 3rd overall in customer satisfaction by JD Powers
+ 1.6 million AM endpoints under long-term contract+ L+G delivers daily reads for the installed base of electric and gas
metersUSA
+ US$230-300 million contract as the primary meter supplier for 5 million endpoint deployment
USA
USA
CustomerCustomer HightlightsHightlights
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+ €40 million multi energy turnkey contract for 200,000 AMI endpoints including electricity, heat and water meters
+ Piloting ecoMeter in-home-display providing consumers with real-time information about electricity, heat and water consumption and CO2 footprint
Large contracts in Europe
+ €100 million turnkey contract for 390,000 AMI endpoints+ Includes a six year operations contract for the delivery of meter
readingsSchweden
Dänemark
+ Installation of 1.5 million AMM meter points in Rome
Italien
KundeKunde HightlightsHightlights
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Established Partner of Blue-chip Utilities
North AmericaNorth America Europe, Middle East and AfricaEurope, Middle East and Africa
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Our Portfolio: Energy Measurement Products and Energy Management Solutions
Electricity Meters
Gas Meters
Heat Meters
Communication Technology+ Communciation solution in PLC, PSTN, GSM /
GPRS, Zig-Bee or radio-mesh to ensure reliable integration of metering point into Advanced Metering systems
Smart Grid+ Making the smart grid vision real by linking
demand response options, time-of-use and critical peak pricing with load control, discon-nect and customer notification technology
IT Systems and MDM solutions+ IT systems for the acquisition, evaluation
and processing of metering data+ Hardware, Software, turnkey projects,
end-to-end solutions and ASP services
Personal Energy Management+ Real time transparency regards consumption,
cost and environmental impact+ Load shedding devices and load management
solutions to manage demand response
Advanced Metering Infrastructure+ One-stop-shop range of hardware, software
and proven communication technologies all linked into a seamless Advanced Metering Infrastructure for multi energy solutions
+ World class range of meters for all segmentswith and without communciation
+ High precision meters for grid metering+ Extended functionality including prepayment
+ Conventional and electronic gas meters+ prepayment modules and functionality,
offering a variety of communication and billing methods
+ Heat and cold meters with ultrasonic technology for superior measurement accuracy and longer life
+ Easy integration into multi-energy AMI
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Providing real-time informationto energy consumers
Transparency as basisfor behavioral change
“ecoMeter” in-house display features:
+ ecoMeter Home Screen– Electricity information
(current and recent history of electricity consumption)
– Greenhouse gas emissions information(current and historical in kg Co2/hr)
– Water use information(current & historical consumption in liters)
– Historical home energy & greenhouse gas emissions information for last day, week and month
+ Tariff lights
+ Menu Options– View and scroll through details about e.g. electricity
tariffs, system information, contact / supplier information and dynamic Peak Alerts
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Management structure
Chief Operating OfficerChief Financial Officer
Landis+Gyr
NorthAmerica
SouthAmerica
EMEA AsiaPacific
GlobalProcurement
Technology Corp Com /IR
GeneralCounsel
R. MoraExec. VP
A. DiasExec. VP
A. Van der MeysExec. VP
J. StretchExec. VP
D. HechtExec. VP & CPO
B. BjelajacExec. VP & CTO
S. MarchSenior VP
M. ReapSenior VP
A. UmbachPresident & COO
A. SpreiterExec VP & CFO
C. O’ReillyChief Executive Officer
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Executive ManagementCameron O‘Reilly, CEO
+ Founder and MD of Landis+Gyr Holdings, formerly Bayard Group; Australian and Irish
+ Previously CEO of APN media group in Australia
+ Honors degree in economics, politics and philosophy, Oxford University
Andreas Umbach, President & COO+ Appointed in October 2000;
German+ Various executive positions
within Siemens+ Degree in Mechanical
Engineering TU Berlin, MBA University of Texas, Austin
Andreas Spreiter, Exec VP & CFO+ Appointed in June 2002; Swiss
& British+ Formerly Head of Controlling
and Head of Center of Competence I&C of Landis+Gyr
+ Degree in Industrial Engineering & Business Administration ETH Zurich
Richard Mora, Exec VP North America + Appointed in October 2000;
American+ Formerly Director of Quality at
Siemens PTD; Manager M&A atGE Capital
+ BA Economics Stanford University
Àlvaro Dias Jùnior, Exec VP S America+ Appointed in July 2005; Brazilian+ CEO of Landis+Gyr Brazil+ Degree in Electrical Engineering
Universidade de Campinas São Paulo
Ad van der Meys, Exec VP EMEA+ Appointed in May 2008; Dutch+ Various executive positions,
including with BT, Deutsche Telekom and Level 3 Communications
+ Qualified in Business, Business School of Amsterdam
Jon Stretch, Exec VP Asia Pacific+ Appointed in January 2008;
Australian+ Various executive positions in
the IT and telecommunications industry, e.g. AT&T, IBM and more recently CEO of AAPT
+ Degree in Computer Science, University of Melbourne
Dieter Hecht, Exec VP & CPO+ Appointed in July 2003; German+ Former Executive Board Member
Eon (Sales, power trade) and GE ITS Europe
+ Degree in Marketing & HR, University of Appl. Sc. Munich; Exec. Program GE University
Branko Bjelajac, Exec VP & CTO
+ Appointed in November 2007; German & Serbian
+ Various executive positions at Mannesmann/Vodafone, Grundig, SITA and Orange
+ Degree in EE, University of Belgrade; Ph.D. in EE, TU Aachen; Executive Program at INSEAD
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Highest quality and environmental compatibility
Quality, health, safety and environmental policy+ We are committed to providing our customers with quality services and products
+ Our policy is to integrate quality, health, safety and environmental aspects into the scope of our business considering them as opportunities for improvement, by…
– …developing a culture of continuous improvement
– …using six sigma principles in the management of our Operations, Health and Safety and the Environment.
– …creating substantial added value for customers through the continual ecological improvement of our products and services, also avoiding the use of harmful materials and keeping waste to a minimum.
– …complying with relevant health safety and environmental legislation, regulations, standards (ISO9001, ISO14001, BS18001) and codes.
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