Landis+Gyr Announces FY 2020 Financial Results

Cham, Switzerland –  May 5th, 2021 – Landis+Gyr (LAND.SW) today announced unaudited financial results for financial year 2020 (April 1st, 2020 – March 31st, 2021). Key highlights included:

  • Landis+Gyr’s business in FY 2020 impacted by COVID-19 and weakness in demand in North America and EMEA resulting in revenues of USD 1,357.4 million, a decrease of 20.8% in constant currency Year-over-Year (YoY)
  • In H2 FY 2020, the revenues were USD 733.9 million, a 12.2% decrease YoY and up 17.7% from H1 FY 2020
  • Order intake was USD 1,298.7 million, a book-to-bill ratio of 0.96, with continued order delays in the US; committed backlog of USD 2,165.9 million, down 2.6% YoY
  • Adjusted EBITDA* of USD 139.6 million, a margin of 10.3% compared to USD 237.2 million with a margin of 14.0% in the prior year
  • Global restructuring and streamlining initiative “Hermes” successfully concluded
  • A non-cash impairment of the legacy Toshiba goodwill was recognized for USD 396.0 million as previously announced during the Capital Markets Day in January 2021
  • Net income, excluding goodwill impairment, was USD 3.6 million or USD 0.13 per share, compared to USD 113.7 million or USD 3.90 per share in the prior year; net loss was USD 392.4 million or USD 13.61 per share
  • Free Cash Flow (excl. M&A) was USD 97.6 million compared to USD 120.4 million in the prior year
  • Strong balance sheet with net debt reduced to USD 6.9 million and net debt / Adjusted EBITDA of 0.05x
  • FY 2021 guidance shows 7% to 11% organic growth due to expected COVID-19-recovery in EMEA and material investments in strategic initiatives / business transformation
  • A distribution of CHF 2.10 per share for FY 2020 will be proposed to the Annual General Meeting on June 24th, 2021
  • Acquisition of Etrel and True Energy in Q1 FY 2021 to expand the Companys position in the EV infrastructure technology market

“This past year was truly transformational for Landis+Gyr. In light of the many challenges, which we faced in financial year 2020, I am proud of our teams across the globe. Our employees have demonstrated a high level of resilience and dedication towards our customers and each other, driving leading edge technology, customer intimacy and speed to market. We are a global leader in an essential industry, providing critical infrastructure to utilities around the world, and thus helping our customers, energy consumers and entire communities to manage energy in a more informed and sustainable way.

As the end of this financial year also marks the end of my first year as Landis+Gyr’s Chief Executive Officer, I am excited to say that the transformation of our Company is well underway. We have completed our restructuring and streamlining initiative to drive efficiencies and continue to deliver leading innovative technology to our customers through notable investments in R&D, expanding our reach in Smart Water and Smart Gas and solidifying our competitive position in Smart Metering and Grid Edge Intelligence. Additionally, last December, we joined forces with Google Cloud in a multi-year strategic partnership to leverage efficiencies and co-innovate Smart Infrastructure technology to advance our software and services offering to best support our customers in a rapidly changing world of energy. Furthermore, the acquisition of Rhebo elevated our cybersecurity offering and the recent acquisitions of True Energy and Etrel will enable us to drive further growth through EV infrastructure technology,” said Werner Lieberherr, Chief Executive Officer of Landis+Gyr.

“Despite these unprecedented and challenging times, the Company has proven resilient with robust margins and cash generation, and its balance sheet remains very solid. In addition, we are proud of the progress we have made through targeted sustainability and ESG initiatives and we have set ourselves the target to be carbon neutral by 2030. Paired with a clear strategic vision and significant investments in continued technology leadership, we have all the fundamentals in place to successfully drive our company’s transformation in FY 2021,” Lieberherr concluded.

COVID-19 and Hermes Update
Landis+Gyr remains focused on meeting its customer requirements as well as ensuring the health and wellbeing of the Group’s employees during these extraordinary times. Some of the Company’s and its vendors’ factories have been subject to lockdowns and with the exception of Joka, India, which was temporarily closed as a precautionary measure, all are currently operational again. Social distancing and all necessary hygiene measures have been implemented in all facilities according to local regulations.

Landis+Gyr has not experienced any major project cancellations and software and service contracts continue unchanged. The Company is working closely with all customers and partners to ensure continued operational excellence, and while some customers had suspended or slowed down meter installations, deployment rates continue to increase as countries impacted recover. Regulators have granted project approval to several utilities in the US, confirming the recognized value of Smart Metering and Grid Edge Intelligence technology. However, as a result of previous delays as well as the general impact of COVID-19, the Company’s revenue fell significantly in FY 2020 and thus elevated the urgency of rightsizing the organization, improving the Company’s cost structure with a continued focus on lowering operating and capital expenditure while maintaining technological leadership.

Project Hermes, the global initiative which aimed at restructuring and streamlining the organization to increase efficiencies and optimize its cost structure, was announced on August 5th, 2020 and has concluded according to plan at the end of FY 2020. As a result, the number of employees was reduced by 12.1%, representing 697 employees across all levels and regions of the Company.

Acquisitions in EV infrastructure technology
As previously announced, Landis+Gyr has signed agreements to acquire 75% of the share capital of Etrel d.o.o. from Slovenia for a mid-double-digit million purchase price and 100% of the share capital of True Energy A/S from Denmark for a single-digit million purchase price. Etrel provides interactive smart residential charging stations for home and public applications, complemented by an advanced software suite, that enables utilities to manage load and demand response for optimized grid stability. The current management will continue to hold 25% in Etrel. The transaction is expected to close in June 2021 with closing being subject to receiving the required customary governmental approvals and other customary closing conditions. Pursuant to the respective agreement, Landis+Gyr has the option to acquire the remaining 25% of the shares in Etrel in May 2024. True Energy offers scalable solutions for smart charging and demand response, covering a large part of the value chain, including a smart phone app for smart charging, demand response to help utilities balance the grid as well as load aggregation and participation in flexibility programs with grid operators to sell flexibility enabling frequency stabilization. The two acquisitions enable Landis+Gyr to enter the electric vehicle (EV) charging and infrastructure market and to build new business and revenue streams, leveraging its leading expertise in Smart Metering and Grid Edge Intelligence technology and building on pilot and proof of concept projects in the UK and France.

Order Intake, Committed Backlog and Net Revenue
Order intake for FY 2020 was USD 1,298.7 million, representing a book-to-bill ratio of 0.96 and a decrease of 6.2% in constant currency compared to prior year. This was driven by COVID-19 and continued order delays in the US. Committed backlog was down 2.6% at USD 2,165.9 million from USD 2,223.9 million in the prior year. The Americas and EMEA reported decreases in committed backlog compared to the prior year, while Asia Pacific rose 8.4%.

In H2 FY 2020, the revenues were USD 733.9 million, a 12.2% decrease YoY and up 17.7% from H1 FY 2020. In FY 2020, net revenue fell 20.8% in constant currency to USD 1,357.4 million from USD 1,699.0 million in FY 2019.

Net revenue per segment was as follows (in USD million, except where indicated):

Segment FY 2020
Net revenue
FY 2019
Net revenue
Percentage change Percentage change in constant currencies
Americas 700.0 906.3 (22.8%) (21.9%)
EMEA 494.4 633.5 (22.0%) (24.6%)
Asia Pacific 163.0 159.2 2.4% 0.5%
Group 1,357.4 1,699.0 (20.1%) (20.8%)

The Americas region delivered net revenue down 21.9% in constant currency YoY. The reduction is primarily driven by US customers’ slowed deployments due to COVID-19 effects and delayed regulatory decisions. Committed backlog in the Americas region was USD 1,427.0 million, 3.6% lower YoY.

Temporary installation suspensions due to COVID-19, particularly in the important UK market, drove net revenue in the EMEA region down 24.6% in constant currency. EMEA’s committed order backlog was 2.0% lower at USD 636.7 million at the end of FY 2020.

Asia Pacific revenues were up 0.5% in constant currency as growth in Southeast Asia (incl. Hong Kong) offset declines in India and Australia / New Zealand. Committed backlog was USD 102.2 million, up 8.4% YoY.

Adjusted and Reported EBITDA*
The Adjusted EBITDA by segment was as follows (in USD million, except where indicated):

Segment FY 2020
Adjusted EBITDA
FY 2020 Percentage of net revenue FY 2019
Adjusted EBITDA
FY 2019 Percentage of net revenue
Americas 105.7 15.1% 163.1 18.0%
EMEA 2.2 0.4% 40.1 6.3%
Asia Pacific 11.3 6.9% 9.9 6.2%
Corporate unallocated 20.4 24.1
Group 139.6 10.3% 237.2 14.0%

* For a reconciliation of non-GAAP measures, see chapter “Supplemental Reconciliations and Definitions (unaudited)” in this media release.

FY 2020 Adjusted EBITDA was USD 139.6 million (down 41.1% YoY) and the Adjusted EBITDA margin decreased to 10.3% from 14.0% in FY 2019. Adjusted EBITDA declined due to lower gross profit given the reduced volumes in the Americas and EMEA with a partial offset from lower operating expenses.

Adjusted Operating Expenses reduced in FY 2020 by USD 37.7 million to USD 309.5 million, including temporary COVID-19 related benefits from furlough, government schemes and decreased travel & entertainment, down 10.9% YoY. R&D investments of USD 141.8 million remained high, representing 10.4% of revenues.

In FY 2020, Operating Income (loss) was USD (365.1) million, including goodwill impairment of USD 396 million, a decrease compared to the USD 139.0 million achieved in FY 2019. Reported EBITDA was USD 113.7 million versus USD 225.3 million in FY 2019.

The adjustments to bridge between reported EBITDA in the Group’s financial statements and Adjusted EBITDA are as follows (in USD million):

FY 2020 FY 2019
Reported EBITDA 113.7 225.3
    Restructuring Charges 15.3 6.7
    Warranty Normalization Adjustments (13.2) 13.1
    Timing Difference on FX Derivatives 23.8 (7.9)
Adjusted EBITDA 139.6 237.2

In FY 2020, the adjustments were in three categories. First, with respect to Restructuring Charges, the USD 15.3 million related to initiatives taken across the organization, mainly in respect of project Hermes, the Company’s global restructuring and streamlining initiative. Secondly, the Warranty Normalization Adjustments of USD (13.2) million represents the amount of warranty provisions made relative to the average actual warranty utilization for the last three years. Thirdly, the Timing Difference on FX Derivatives adjustment was USD 23.8 million in FY 2020 and relates to mark to market differences on hedges, primarily as a result of GBP exchange rate movements.

Net Income / (Loss) and EPS
As announced on January 27th, 2021, the company booked a non-cash impairment of the legacy Toshiba goodwill attributed to its Americas business in the amount of USD 396 million in FY 2020. Therefore, the reported net loss for FY 2020 was USD 392.4 million or USD (13.61) per share. When excluding the goodwill impairment, the company recorded a net income of USD 3.6 million or USD 0.13 per share, a decrease of 96.6% compared to the previous period.

Cash Flow and Net Debt
Cash provided by operating activities was USD 123.9 million in FY 2020 compared to USD 148.9 million in the prior year. Free Cash Flow (excl. M&A) was USD 97.6 million, a decrease of USD 22.8 million compared to prior year. Main drivers within Free Cash Flow were a USD 20 million payment related to the WADOR (Washington Department of Revenue) tax case, project Hermes related cash outs of USD 15.3 million, improvements in operating working capital management of USD 51.7 million and significantly lower warranty cash-outs of USD 17.3 million compared to prior year. In FY 2020, capital expenditure amounted to USD 26.6 million, a decline of 7.0% versus FY 2019 and consistent with the Company’s asset-light business model.

As of March 31, 2021, the ratio of net debt to Adjusted EBITDA was 0.05 times, with net debt of USD 6.9 million, after the payment of USD 63.3 million in dividends in November 2020.

Distributions to Shareholders
In line with the updated dividend policy, the Board of Directors will propose a distribution of CHF 2.10 per share to the Annual General Meeting on June 24th, 2021. The proposal equals a payout of approximately USD 64 million and equivalent to a payout of Free Cash Flow (excl. M&A) of approx. 66%. If approved, the distribution will be paid out entirely from capital contribution reserves and is exempt from Swiss withholding tax.

The share buyback program 2019 – 2022 remains suspended.

Outlook for FY 2021
Landis+Gyr expects organic net revenue growth in FY 2021 of between 7% and 11% predominantly driven by EMEA with inorganic growth coming on top.

As announced at the Capital Markets Day 2021, Landis+Gyr will make significant investments to foster future growth of the Company. These expenses of approximately 2% of net revenues will result in temporary higher expenses (incl. R&D) to support strategic initiatives, such as the partnership with Google, Smart Water and Smart Gas, and the digital transformation of the Company. Further operating expenses are expected to increase due to the reversal of COVID-19 related benefits, such as furlough, government schemes and travel & entertainment.

Adjusted EBITDA margin is expected to be between 9.0% and 10.5% of net revenues. Free Cash Flow (excluding M&A) is expected to be between USD 80 million and USD 100 million.

Industry-wide supply chain constraints, in particular global shortages of electronic components and plastic resins as well as increased freight rates, pose challenges for cost and on-time delivery performance, especially in H1 FY 2021. Landis+Gyr teams are committed to support customers and mitigate part of potential impacts through effective supply chain management.

Mid-term targets through FY 2023 are confirmed.

The FY 2020 earnings presentation, which forms part of this press release, is available on the Company’s website at

Investor Webcast and Telephone Conference
The management of Landis+Gyr will host an investor/analyst call to discuss the Company's results.

Date and time: May 5th, 2021, at 10:00 am CET
Speakers: Werner Lieberherr (Chief Executive Officer), Elodie Cingari (Chief Financial Officer)
Audio webcast:
Telephone: Europe: +41 (0)58 310 5000
UK: +44 (0)207 107 0613
US: +1 (1)631 570 5613

Please dial in 10–15 minutes before the start of the presentation and ask for “Landis+Gyrʼs financial year results 2020”.

Press Release

Media Contact

Eva Borowski
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Phone +41 41 935 6396

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Investor Contact

Christian Waelti
Head of Investor Relations
Phone +41 41 935 6331

Key Dates

Publication of Annual Report 2020 and
Invitation to AGM 2021
May 28th, 2021
Annual General Meeting 2021 (virtual) June 24th, 2021
Ex-Dividend Date June 28th, 2021
Dividend Record Date June 29th, 2021
Dividend Payment Date June 30th, 2021
Publication of Half Year Report 2021 and Sustainability Report 2020/21 October 28th, 2021
Release of Results for Financial Year 2021 May 11th, 2022

About Landis+Gyr

Landis+Gyr is a leading global provider of integrated energy management solutions for the utility sector. Offering one of the broadest portfolios, we deliver innovative and flexible solutions to help utilities solve their complex challenges in Smart Metering, Grid Edge Intelligence and Smart Infrastructure. With sales of USD 1.4 billion in FY 2020, Landis+Gyr employs more than 5,000 people in over 30 countries across five continents, with the sole mission of helping the world manage energy better.


This release and information referred to herein contains (a) preliminary, unaudited numbers that may be subject to change and (b) information regarding alternative performance measures or non USGAAP 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 this release may be found on pages 34 to 37 of the Landis+Gyr Half Year Financial Report Fiscal Year 2020 on our website at

Forward-looking Information

This press release includes forward-looking information and statements, including statements concerning the outlook for Landis+Gyr Group AGʼs businesses. These statements are based on current expectations, estimates and projections about the factors that may affect the Companyʼs 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 the Companyʼs actual results to differ materially from the forward-looking information and statements made in this presentation and which could affect the Companyʼs 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; 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.