Dometic Group Ab · OMXSTO:DOM
Dometic Group Ab — Q1 2023 Earnings Presentation
30 slides from Dometic Group Ab's earnings presentation, Apr 26, 2023
Slide 1: Interim Presentation Q1 2023
INTERIM PRESENTATION Q1 2023 April 26, 2023
Slide 2: Juan Vargues, President & CEO
JUAN VARGUES PRESIDENT & CEO
Slide 3: Q1 2023 Highlights
Q1 2023 HIGHLIGHTS Market development ▪ Macro environment and market conditions remain tough ▪ US RV production down -54% in Q1 ▪ High inventory levels in Service & Aftermarket, but on the way down Performance ▪ Q1 shows clear results of strategic initiatives ▪ -13% organic sales growth ▪ Segment Ma
Slide 4: Q1 2023 Financial Summary
Q1 2023 FINANCIAL SUMMARY Net sales of SEK 7,289 m, -3% total growth ▪ -13% Organic -3% ▪ +9% FX 7,518 Net Sales ▪ 0% M&A -24% EBITA before I.A.C 7,289 EBITA before i.a.c. of SEK 847 m, -24% 1 114 ▪ EBITA margin of 11.6% (14.8%) 847 Operating cash flow of SEK 294 m (-398) Leverage 3.2x (2.7x) EPS of
Slide 5: Sales Growth Q1 2023
SALES GROWTH Q1 2023 30 000 Q1 2023 Net Sales SEK 7,289 m 25 000 ▪ Total Growth -3% 20 000 ▪ Americas -36% ▪ APAC -8% 15 000 ▪ EMEA 0% ▪ Global +17% 10 000 0% ▪ Marine +19% 9% 5 000 -13% 0 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Organic Growth M&A Growth FX effect Net
Slide 6: Net Sales by Application Area, SEK B
NET SALES BY APPLICATION AREA, SEK B LONG TERM GROWTH DRIVEN BY POWER & CONTROL AND FOOD & BEVERAGE ▪ Power & Control 30,0 ▪ Strong performance in Marine Steering Systems 22% 25,0 ▪ Structural growth in Mobile Power Solutions ▪ Driven by RV, Marine and Outdoor Standalone 20,0 ▪ Food & Beverage 39% ▪
Slide 7: Net Sales by Sales Channel, SEK B
NET SALES BY SALES CHANNEL, SEK B INCREASING SHARE OF DISTRIBUTION + SERVICE & AFTERMARKET 30,0 25,0 ▪ RV OEM 23% of Q1 LTM Group sales ▪ of which Americas 10% 20,0 OEM sales 15,0 by vertical 5% 10,0 15% 61% 61% 57% CPV OEM 5,0 54% 50% 44% 44% 23% Marine OEM RV OEM 0,0 2017 2018 2019 2020 2021 2022
Slide 8: Service & Aftermarket Sales
SERVICE & AFTERMARKET SALES RETAILER DESTOCKING AFTER 2021 – Q1 2022 RALLY 2021 ▪ Retailers are destocking after large purchases in 2021 and Q1 2022 2022 ▪ Q1 2023 organic decline -19% compared to -22% in Q4 2022 ▪ Q1 2022, a tough comparison 2023 ▪ 16% growth compared to 2019 2019 ▪ Gradual recover
Slide 9: EBITA and EBITA Margin before i.a.c.
EBITA AND EBITA MARGIN BEFORE I.A.C EBITA before i.a.c. Rolling 12 months 12.4% (15.1%) SEKm EBITA- margin Q1 2023 EBITA before i.a.c. margin 11.6% (14.8%) 1.350 18% ‒ Decline related to segments Americas and EMEA 1.200 16% ‒ Sales mix, decline in Service & Aftermarket 1.050 14% ‒ Extra logistic cos
Slide 10: Americas Q1 2023
AMERICAS Q1 2023 Net sales SEK 1,234 m, -36% ▪ Organic growth -48% ▪ Impacted by the significantly reduced RV production ▪ Service & Aftermarket sales remain low Net sales and EBITA margin before i.a.c. EBITA before i.a.c. SEK -61m (130) 2,000 10% ▪ EBITA Margin -5.0% (6.8%) 8% 1,500 6% ▪ Impact fro
Slide 11: EMEA Q1 2023
EMEA Q1 2023 Net sales SEK 2,170 m, 0% ▪ Organic growth -7% ▪ Double-digit growth in OEM driven by CPV. Growth in RV OEM ▪ Service & Aftermarket sales remain low EBITA before i.a.c. SEK 185 m (385) Net sales and EBITA margin before i.a.c. ▪ EBITA Margin 8.5% (17.7%) 2,500 20% ▪ Extraordinary logisti
Slide 12: APAC Q1 2023
APAC Q1 2023 Net sales SEK 501 m, -8% ▪ Organic growth -13% ▪ Growth in OEM ▪ Service & Aftermarket and Distribution sales negatively impacted by high retailer inventory levels Net sales and EBITA margin before i.a.c. 600 35% EBITA before i.a.c. SEK 130 m (136) 30% ▪ EBITA Margin 25.9% (25.3%) 500 2
Slide 13: Marine Q1 2023
MARINE Q1 2023 Net sales SEK 1,756 m, +19% ▪ Organic growth +8% ▪ Double-digit growth in OEM ▪ Single-digit decline in Service & Aftermarket Net sales and EBITA margin before i.a.c. EBITA before i.a.c. SEK 462 m (371) 2,000 30% ▪ EBITA Margin 26.3% (25.0%) 25% ▪ Sales growth and innovation drives hi
Slide 14: Global Q1 2023
GLOBAL Q1 2023 Net sales SEK 1,628 m, +17% ▪ Organic growth +5% ▪ Organic growth driven by Igloo ▪ Continuous growth in Hospitality Net sales and EBITA margin before i.a.c. EBITA before i.a.c. SEK 130 m (91) 2,000 20% ▪ EBITA Margin 8.0% (6.6%) ▪ Igloo margin above Q1 last year 1,500 15% ▪ Other Glo
Slide 15: Innovation - Mobile Cooling
INNOVATION - MOBILE COOLING CFF12 – OUR SMALLEST PORTABLE ELECTRIC COOLER ▪ New version with modern design and 18% increase in inner volume ▪ Lightweight compressor technology ▪ Super-slim design make it easily portable from the car to camping site or to picnic at the beach ▪ Small enough to fit ins
Slide 16: Innovation - Mobile Rest and Storage
INNOVATION - MOBILE REST AND STORAGE COMPACT SERIES OF INFLATABLE CAMPING TENTS ▪ A new compact and inflatable camping tent range for the European market ▪ Using the Dometic AIR frame technology - easy to set up and pack down ▪ Light in weight, small in size and compact enough to fit into the back o
Slide 17: Cost Reductions
COST REDUCTIONS ▪ Two ongoing programs ▪ Initial program announced 2019 ▪ Target saving of SEK 400 m by mid 2023 ▪ Cost of SEK 750 m ▪ Next phase announced Q2 2022 ▪ Target saving of SEK 200 m by the end of 2023 ▪ Cost of SEK 200 m ▪ Cost in the quarter SEK 19 m ▪ Ongoing closure of the manufacturin
Slide 18: Sustainability
SUSTAINABILITY ▪ LTIFR1) better than target and reduced 18% compared to last year KPI Focus area Actual Actual 2024 Target ▪ Implementation of Health & Safety guidelines last year continues LTIFR1) People 1.6 2.0 <2.0 Share of female managers People 26% 24% 27% ▪ Share of female managers improved to
Slide 19: Stefan Fristedt, CFO
STEFAN FRISTEDT CFO
Slide 20: Q1 EBITA Development
Q1 EBITA DEVELOPMENT ▪ Organic + FX EBITA before i.a.c. SEK m (% of sales) ▪ Lower sales with negative mix, -19% organic sales decline in Service & Aftermarket ▪ Logistic costs and manufacturing SEK 1,114 m inefficiencies in EMEA 1 200 (14.8%) ▪ SG&A expenses flat excluding FX and 1 000 SEK 847 m (1
Slide 21: Cash Flow for the Period
CASH FLOW FOR THE PERIOD SEK m Q1 2023 Q1 2022 EBIT 667 812 ▪ Operating cash flow SEK 294 m (-398) Adjustments for non-cash items 397 374 ▪ Reduced Inventories Changes in Working Capital -661 -1 470 Investments in fixed assets -110 -115 ▪ Accounts Receivables increased due to normal seasonality Oper
Slide 22: Operating Cash Flow
OPERATING CASH FLOW SIGNIFICANTLY IMPROVED OPERATING CASH FLOW IN A SEASONALLY WEAK QUARTER SEK m 1 417 1 301 1 117 1 043 917 875 812 724 738 546 311 346 294 181 84 -20 -398 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 2022 2023
Slide 23: Working Capital Days
WORKING CAPITAL DAYS WORKING CAPITAL AMBITION: 20% OF NET SALES ACCOUNTS PAYABLES DAYS ACCOUNTS RECEIVABLES DAYS 55 ▪ Working capital 34% (26%) of 70 50 net sales, increase driven by 46 60 55 inventories 45 50 40 40 35 ▪ Inventory balance SEK 9.0 b 30 30 (8.2), drivers behind increase: Q4 Q1 Q2 Q3 Q
Slide 24: Capex and Research & Development
CAPEX AND RESEARCH & DEVELOPMENT (SEK m, % OF NET SALES) CAPEX 250 8 Q1 2023 CAPEX 200 6 1.4% (1.5%) of net sales 150 1,6% 1,5% 1,4% 4 ▪ Full year 2022: 1.9% of sales 100 201 152 135 50 95 111 111 99 2 77 77 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2023 2021 2021 2021 2021 2022 2022 2022 2022 Q1 2023 R&D R&D
Slide 25: Net Debt / EBITDA Leverage
NET DEBT / EBITDA LEVERAGE ▪ Net debt leverage ratio 3.2x (3.0x end 2022) ‒ Seasonality 3,3 3,3 3,2 3,1 ‒ Lower EBITDA 3,0 3,0 2,8 2,8 2,9 3,0 3,0 2,8 2,7 2,8 2,7 2,6 2,4 2,3 2,0 1,4 1,5 ▪ Committed on achieving our target of around 2.5x Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 26: Debt Maturity Profile
DEBT MATURITY PROFILE ▪ Average maturity extended to 2.8 years (3.0 SEK b 1,0 years if including 1+1 extension options) ▪ New loan from Svensk Exportkredit of USD 2,7 2,0 44m, due 2026 ▪ Bank facility USD increased by USD 10 m to USD 220 m and extended from 2024 to 2026 3,4 3,5 3,4 3,4 ▪ Revolving c
Slide 27: Q1 2023 Summary
Q1 2023 SUMMARY Business highlights ▪ First quarter performance shows results of our diversification strategy ▪ Two segments report organic growth. ▪ Three segments report improved margins ▪ Difficult to predict how current macroeconomic situation will impact business short term ▪ Gradual recovery i
Slide 28: Dometic
“> DOMETIC
Slide 29: Disclaimer
DISCLAIMER SOME STATEMENTS HEREIN ARE FORWARD-LOOKING AND THE ACTUAL OUTCOME COULD BE MATERIALLY DIFFERENT. IN ADDITION TO THE FACTORS EXPLICITLY COMMENTED UPON, THE ACTUAL OUTCOME COULD BE MATERIALLY AFFECTED BY OTHER FACTORS, (A) CHANGES IN ECONOMIC, MARKET AND COMPETITIVE CONDITIONS, (B) SUCCESS
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