Landis+Gyr Delivers Revenue Growth and Continued Cash Generation

- Year-over-year sales growth expected to be 5%

- R&D investments reach USD 160 million

- Approximately USD 100 million in cash flow for the year

- Balance sheet further strengthened, equity ratio at 65%

- USD 550 million of debt reduction by the Group since acquisition, net debt below one year's EBITDA level

ZUG, Switzerland, Feb. 22, 2017 /PRNewswire/ -- Landis+Gyr, the global leader in transforming the way energy is delivered and managed, today announced that fiscal year 2016 (ending March 31, 2017) forecast indicates the company is on track for further revenue and profit growth and consistent cash generation. The company, unaffected by Toshiba's challenges, expects revenue to reach USD 1,640m (compared to USD 1,569m in prior year). This nearly 5% year-on-year growth builds on the previous year's 3.3% top line growth rate. Notwithstanding a challenging margin environment in EMEA, the higher sales will also translate into year on year growth in operating profit.

"Despite a tough international growth environment and currency impacts, Landis+Gyr has been able to demonstrate the effectiveness of our worldwide operations by continuing to expand sales faster than the global economic growth rate. We expect to deliver approximately 5% top line growth when the current fiscal year wraps up.  Coupled with an expected year-end order backlog of USD 2.4 billion, we have great confidence in our future sales performance," Andreas Umbach, Landis+Gyr's President and CEO, observed.

Since the business was acquired in 2011 by Toshiba and the Innovation Network Corporation of Japan (INCJ), Landis+Gyr has reduced net debt by USD 550m resulting in a solid balance sheet with an equity ratio of 65% at the end of calendar 2016. Landis+Gyr's net debt now stands below USD 200m, around one year's EBITDA level.  The company, as it has for the past five years in a row, expects to generate around USD 100 million in cash flow during the current fiscal year.

"Landis+Gyr is unique in our industry. As a profitable, fully independent operation with its own governance body, audit and risk committee, independent auditor and separate financial statements we have been able to grow and invest for the future. With self-funded R&D investments expected to reach USD 160 million this year, we are extremely well positioned to lead global utility technology trends now and far into the future," Andreas Umbach concluded.

About Landis+Gyr
Landis+Gyr is the leading global provider of integrated energy management solutions for the utility sector. Offering the broadest portfolio of products and services to address complex industry challenges, the company delivers comprehensive solutions for the foundation of a smarter grid including; smart metering, distribution network sensing and automation tools, load control, analytics and energy storage. With annualized sales of more than USD 1.6 billion, Landis+Gyr, an independent growth platform of the Toshiba Corporation and 40% owned by the Innovation Network Corporation of Japan (INCJ), operates in 30 countries across five continents, and employs 6,000 people with the sole mission of helping the world manage energy better. More information is available at www.landisgyr.com.

Balance Sheet

The Group prepares its financial statements in accordance with generally accepted accounting principles in the United States of America (USGAAP). The key balance sheet information presented below is derived from the unaudited consolidated financial statements of Landis+Gyr Holding AG. Fiscal year-end is March 31.