Landis+Gyr - a PE driven business transformation and successful buyout Andreas Umbach, CEO Landis+Gyr 11. Private Equity & Corporate Finance Conference, Zürich, 4th July, 2012 1 Landis+Gyr Umbrella Presentation 05.07.2012
Metering a solid utility business model Supply energy and collect cash 2 A PE driven business transformation l Andreas Umbach, CEO Landis+Gyr l 11. Private Equity & Corporate Finance Conference l Zürich, July 4 th, 2012
Global market leader in Smart Metering Energy utility ecometer In-Home-Display Smart electricity Meter with 2-way-communication 3 A PE driven business transformation l Andreas Umbach, CEO Landis+Gyr l 11. Private Equity & Corporate Finance Conference l Zürich, July 4 th, 2012
Facts & Figures BY 2011 Sales by Region (in musd) Key Figures BY 2011 (in musd) Asia Pacific 278 musd (17%) Total sales BY 2011: 1,598mUSD North America 651mUSD (41%) BY 2011 Sales 1,598 R&D in % of sales 6.9% Manufacturing sites 16 Operating entities 45 Sales offices 73 EMEA 565mUSD (35%) South America 105mUSD (7%) Employees 5,210 4 A PE driven business transformation l Andreas Umbach, CEO Landis+Gyr l 11. Private Equity & Corporate Finance Conference l Zürich, July 4 th, 2012
An attractive growth story Sustainable growth in a challenging economical environment USD 1,227 bn USD 1,364 bn USD 1,359 bn Asia Pacific USD 1,533 bn USD 1,598 bn Europe, Middle East & Africa South America North America 2007 2008 2009 2010 2011 5 A PE driven business transformation l Andreas Umbach, CEO Landis+Gyr l 11. Private Equity & Corporate Finance Conference l Zürich, July 4 th, 2012
N nn n bn bvnhgvbv v ghgfrt,m,.lm A transforming business 6 A PE driven business transformation l Andreas Umbach, CEO Landis+Gyr l 11. Private Equity & Corporate Finance Conference l Zürich, July 4 th, 2012
A transforming business in a changing environment Landis & Gyr Utilities Merger with Siemens meter business From electromechanical to digital meters From digital devices to Smart Metering From Smart Metering to Smart Grid 1896- -1998-2002 -2004-2011 2011 - Landis & Gyr Utilities Siemens Metering Landis+Gyr (60%) (40%) 7 A PE driven business transformation l Andreas Umbach, CEO Landis+Gyr l 11. Private Equity & Corporate Finance Conference l Zürich, July 4 th, 2012
A transforming business in a changing environment Landis & Gyr Utilities Merger with Siemens meter business 1896- -1998-2002 -2004-2011 2011 - Landis & Gyr Utilities Siemens Metering From electromechanical to digital meters Landis+Gyr 8 A PE driven business transformation l Andreas Umbach, CEO Landis+Gyr l 11. Private Equity & Corporate Finance Conference l Zürich, July 4 th, 2012
Transformation from Electromechanical Meters to Digital Technology From electromechanical to digital technology 9 A PE driven business transformation l Andreas Umbach, CEO Landis+Gyr l 11. Private Equity & Corporate Finance Conference l Zürich, July 4 th, 2012
KKR s value creation was primarily based on a business improvement program A fitness program to align management system and structure with business requirements optimize the cost structure explore further mid-term savings through business and process re-engineering prepare for growth 10 A PE driven business transformation l Andreas Umbach, CEO Landis+Gyr l 11. Private Equity & Corporate Finance Conference l Zürich, July 4 th, 2012
A transforming business in a changing environment Landis & Gyr Utilities Merger with Siemens meter business 1896- -1998-2002 -2004-2011 2011 - Landis & Gyr Utilities Siemens Metering From electromechanical to digital meters Landis+Gyr From digital devices to Smart Metering 11 A PE driven business transformation l Andreas Umbach, CEO Landis+Gyr l 11. Private Equity & Corporate Finance Conference l Zürich, July 4 th, 2012
Transformation from Digital Products to Smart Metering Solutions From digital devices to Smart Metering Solutions 12 A PE driven business transformation l Andreas Umbach, CEO Landis+Gyr l 11. Private Equity & Corporate Finance Conference l Zürich, July 4 th, 2012
Global Leader in Smart Metering built organically and via acquisitions Meter Data Mmgmt, CIS & Analytics Software Industry leading software solutions Strategic minority investments Metering Communication Systems & Software Services Broad range of market leading metering devices State-of-the-art multiple communications options Innovative service offerings Invested over $1.2 billion in capital to acquire/invest in 14 metering, advanced communications, energy management & automation technologies Significant organic R&D investments to enhance portfolio & capabilities into systems & solutions 13 A PE driven business transformation l Andreas Umbach, CEO Landis+Gyr l 11. Private Equity & Corporate Finance Conference l Zürich, July 4 th, 2012
A transforming business in a changing environment Landis & Gyr Utilities Merger with Siemens meter business From electromechanical to digital meters From digital devices to Smart Metering From Smart Metering to Smart Grid 1896- -1998-2002 -2004-2011 2011 - Landis & Gyr Utilities Siemens Metering Landis+Gyr (60%) (40%) 14 A PE driven business transformation l Andreas Umbach, CEO Landis+Gyr l 11. Private Equity & Corporate Finance Conference l Zürich, July 4 th, 2012
Welcher Weg ist der Bessere 15 A PE driven business transformation l Andreas Umbach, CEO Landis+Gyr l 11. Private Equity & Corporate Finance Conference l Zürich, July 4 th, 2012
Sold for USD 2.3 bn to & Innovation Network Corporation of Japan 16 A PE driven business transformation l Andreas Umbach, CEO Landis+Gyr l 11. Private Equity & Corporate Finance Conference l Zürich, July 4 th, 2012
The energy sector is undergoing a paradigm shift Yesterday : A top-down hierarchy Tomorrow : New needs & business models The transformation of the energy system requires massive investments 17 A PE driven business transformation l Andreas Umbach, CEO Landis+Gyr l 11. Private Equity & Corporate Finance Conference l Zürich, July 4 th, 2012
From Smart Metering to Smart Grid From Smart Metering to Smart Grid Distribution Automation / Substation Automation Building Energy Management Solutions(BEMS): Smart Gas Smart Water Decentralized Generation from Renewables and Storage Smart Public Lightning Electro Mobility Home Energy Management Solutions (HEMS) together with 18 A PE driven business transformation l Andreas Umbach, CEO Landis+Gyr l 11. Private Equity & Corporate Finance Conference l Zürich, July 4 th, 2012
N nn n bn bvnhgvbv v ghgfrt,m,.lm Learning from the Private Equity experience 19 A PE driven business transformation l Andreas Umbach, CEO Landis+Gyr l 11. Private Equity & Corporate Finance Conference l Zürich, July 4 th, 2012
Benefits of Private Equity Ownership Ability to define an industry specific strategy Focus on transformation and execution Support management in decision making and risk taking Speed of decision making versus quality of decision Alignment of shareholders and management 20 A PE driven business transformation l Andreas Umbach, CEO Landis+Gyr l 11. Private Equity & Corporate Finance Conference l Zürich, July 4 th, 2012
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