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Signify's Annual Report:  11 Eye-Opening Facts

2021 03 signify annual report.jpg

Global lighting behemoth Signify recently published its 2020 Annual Report.

We combed through 188 pages of small print to bring you our favorite takeaways:

 

1.  The size of the Cooper Lighting Solutions business

Signify disclosed numbers that reveal Cooper Lighting revenues and profit:

  • 2020 Revenue under Signify (Partial Year Mar 2 - Dec 31): $1.255 Billion*
  • 2020 Net Income under Signify (Partial Year Mar 2 - Dec 31): $34.5 Million*
  • 2020 Full Year Revenue: $1.527 Billion*

Based on previous reports, Cooper Lighting had revenues of $1.7B in 2018.

*The numbers above were calculated using published financial results and a conversion rate of 1 EUR = $1.19 USD.

 

2.  Executive level gender diversity

In 2019, 83% of Leadership roles were held by men.

In 2020, a course correction occurred with New Leadership Hires being 86% female. This brings the current male/female leadership ratio to 77%/23%.

 

3.  How many people work at Signify and Cooper Lighting?

Signify Company Total: 37,926

Cooper Lighting had "about 4,900 employees" at the end of 2020. That number is included in the Signify total above.

 

4. Total Shareholder Return:  Benchmarks

Signify benchmarks itself with the following companies on Total Shareholder Return and fell middle-of-the-pack performance wise, but the 19.5% TSR is still excellent.

One notable omission: OSRAM

Total Shareholder Return

Cree   133.0%
Schneider Electric   71.4%
Eaton Corporation   61.0%
Honeywell   44.6%
Hubbell   33.2%
Johnson Controls   23.7%
Signify   19.5%
Legrand   19.4%
ABB   7.7%
Hitachi   (2.8)%
Toshiba   (6.2)%
Panasonic   (31.8)%
Acuity Brands   (34.7)%
Fagerhult   (49.6)%
Zumtobel Group   (54.5)%

 

5.  Average total employee compensation:

2019: $72,000

2020: $61,500

The significant decrease was due, in part, to a 20% COVID pay reduction that affected a vast majority of employees for part of the year.  In early 2021, Signify announced that the company would be returning contributions to those affected employees, in effect making them whole. 


6.  The LED Pie Chart holds pretty steady at 80% LED

"LED-based sales represented 80% of total sales compared with 78% in 2019. Including Cooper Lighting pro-forma, 2019 LED-based sales would be 79%."

 

7.  Stock ownership

Signify is based in the Netherlands, but the Geographical distribution of shares shows that half of the company's shares are owned by U.S. (33%) and U.K.(17%) entities.  This is partly due to holdings of large institutional investors like BlackRock and JP Morgan.

 

8.  Signify provided a long list of business risks. This one caught our eye:

"With the shift to connected lighting, the risk is that non-lighting players with broad technology platforms may enter and disrupt the lighting market."

 

9.  New Technology emphasis:

The company made multiple mentions of the development and deployment of new technologies. These areas were cited the most:

  • Agricultural (10 mentions)
  • 3D printing (13 mentions)
  • Solar (27 mentions)
  • UV-C lighting (46 mentions)

 

10.  Business unit realignment

The company is changing how it measures business performance as it evolves

  • "Division Digital Solutions (formerly BG Professional, including Cooper Lighting) offers luminaires, lighting systems and services for the Internet of Things to customers in the professional segment;
  • Division Digital Products (combines BG LED and BG Home). This division offers LED lamps, LED luminaires and connected products, including Hue and WiZ, and LED electronics to professional customers, OEM partners and consumers. By bringing together its entire consumer LED portfolio, Signify can better manage this lighting category for its channel partners; and
  • Division Conventional Products (formerly BG Lamps) continues to focus on conventional lamps and electronics for professional customers, OEM partners and consumers. It is organized separately to bring a clear distinction between conventional and digital offerings"

 

11.  Direct Online Sales

Direct online sales (MyLighting and MeetHue) were 15% of revenues.

Despite being called "Direct online sales" MyLighting is a portal that, in part, enables traditional electrical distributors to streamline and automate parts of the ordering process.

MeetHue is a website that sells its consumer-focused Philips Hue products.

 

Read the enitre 2020 Annual Report here >>

 

 

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March 9, 2021

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