Dometic Group Ab · OMXSTO:DOM
Dometic Group Ab — Q1 2022 Earnings Presentation
37 slides from Dometic Group Ab's earnings presentation, Apr 28, 2022
Slide 1: Interim Presentation Q1 2022
INTERIM PRESENTATION Q1 2022 April 28, 2022
Slide 2: Juan Vargues, President & CEO
JUAN VARGUES PRESIDENT & CEO
Slide 3: Q1 2022 Highlights
Q1 2022 HIGHLIGHTS Market development ▪ Strong backlog and retail inventory levels lower than historical levels ▪ Continued supply chain constraints and increased raw material prices ▪ Uncertain macroeconomic situation Performance ▪ Strategy execution is yielding results – strongest Q1 ever ▪ 55% sa
Slide 4: Q1 2022 Financial Summary
Q1 2022 FINANCIAL SUMMARY Net sales SEK 7,518 m, +55% total growth ▪ 7% organic SEKm 9,000 ▪ 5% FX 8,500 ▪ 43% M&A 8,000 EBITA dev. +39% 1,114 7,500 7,000 EBITA before i.a.c. SEK 1,114 m, +39% 6,500 6,000 • EBITA margin of 14.8% (16.5%) 5,500 801 NS dev. 5,000 +55% 4,500 Adjusted EPS SEK 2.27 (1.85)
Slide 5: Sales Growth Q1 2022
SALES GROWTH Q1 2022 Total growth SEKm Net sales SEK 7,518 m 80% 24,500 24,000 ▪ Total Growth SEK 2,660 m (+55%) 23,500 23,000 ▪ Americas +49% 60% 22,500 22,000 ▪ EMEA +30% 40% 21,500 ▪ APAC +24% 21,000 20,500 ▪ Marine +12% 20,000 20% ▪ Global +1021% 19,000 0% 18,000 ▪ Organic Growth 7% 17,000 ▪ Gro
Slide 6: Application Areas Q1 2022
APPLICATION AREAS Q1 2022 Climate Food & Beverage SALES SPLIT YTD, +23% +97% APPLICATION AREA 8,500 2,370 2,500 8,000 2,856 3,000 7,500 2,500 10% 8,000 2,000 Rolling 12 months 7,000 Quarter 2,000 7,500 1,500 6,500 32% 6,000 1,500 20% 7,000 1,000 5,500 1,000 5,000 6,500 500 500 4,500 6,000 0 4,000 0
Slide 7: Sales Channels Q1 2022
SALES CHANNELS Q1 2022 SERVICE AND AFTERMARKET SALES SPLIT YTD, SALES CHANNEL 8,500 +30% 2,500 Rolling 12 months 8,000 2,000 7,500 Quarter 7,000 1,500 28% 6,500 6,000 1,000 44% 5,500 500 5,000 4,500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 28% OEM DISTRIBUTION (Prev Year) +23% +290% OEM (55%) 11,
Slide 8: Sales Channel Development
SALES CHANNEL DEVELOPMENT DISTRIBUTION + SERVICE & AFTERMARKET FROM 45% TO 56% IN ONE YEAR 8,000 7,518 7,000 ▪ Organic growth in all sales 28% channels 6,000 Net sales, SEK m 5,000 4,858 11% Distribution ▪ In line with strategy of having 28% 4,000 Service and Aftermarket >50% of sales outside OEM 34
Slide 9: EBITA and EBITA Margin before i.a.c.
EBITA AND EBITA MARGIN BEFORE I.A.C EBITA Run rate +15.1% (+15.0%) EBITA EBITA SEKm Margin Q1 2022 1,200 17% EBITA margin 14.8% (16.5%) 1,050 + Sales growth and pricing 16% + Cost saving activities 900 15% + Currency effects 750 14% ‒ Igloo margins lower than Group average 600 ‒ Segment mix and chan
Slide 10: Americas Q1 2022
AMERICAS Q1 2022 NET SALES AND EBITA MARGIN BEFORE I.A.C. Net sales SEK 1,927 m, +49% (organic +9%) ▪ Growth in all application areas ▪ Strong organic growth in OEM business ▪ Backlog higher than last year EBITA before i.a.c. SEK 130 m (107) ▪ EBITA Margin of 6.8% (8.3%) + Sales growth and pricing +
Slide 11: EMEA Q1 2022
EMEA Q1 2022 NET SALES AND EBITA MARGIN BEFORE I.A.C. Net sales SEK 2,179 m, +30% (organic +9%) ▪ Growth driven by application areas Climate, Food & Beverage and Power & Control ▪ Organic sales growth driven by Service & Aftermarket ▪ Lack of chassis impacts RV OEM sales ▪ Acquisitions of Cadac Inte
Slide 12: APAC Q1 2022
APAC Q1 2022 NET SALES AND EBITA MARGIN BEFORE I.A.C. Net sales SEK 535 m, +24% (organic -2%) ▪ Growth driven by application area Power & Control supported by the Enerdrive acquisition ▪ Organic sales growth somewhat negative compared to a strong Q1 2021 ▪ Backlog higher than last year EBITA before
Slide 13: Marine Q1 2022
MARINE Q1 2022 NET SALES AND EBITA MARGIN BEFORE I.A.C. Net sales SEK 1,486 m, +12% (organic +3%) ▪ Growth driven by application area Power & Control ▪ Backlog higher than last year ▪ Treeline Capital LLC acquired in the quarter EBITA before i.a.c. SEK 371 m (331) ▪ EBITA Margin of 25.0% (24.9%) + S
Slide 14: The Dometic Marine Business
THE DOMETIC MARINE BUSINESS A HIGHLY PROFITABLE AND GROWING BUSINESS Net sales, SEK m CAGR 7% 6,000 ▪ Successful acquisition of Seastar in December 2017 5,000 4,000 ▪ Current offering includes Steering and Control, Power solutions, 3,000 Climate Control and Fuel systems 2,000 ▪ More content per boat
Slide 15: Global Q1 2022
GLOBAL Q1 2022 NET SALES AND EBITA MARGIN BEFORE I.A.C. Net sales SEK 1,390 m, organic growth +12% Includes the Igloo business acquired in October 2021, and Other global verticals (Residential, Hospitality and Mobile Deliveries) ▪ Organic sales growth in Other Global Verticals, driven by Residential
Slide 16: Igloo Q1 2022
IGLOO Q1 2022 STRONG SALES GROWTH AND IMPROVED EBITA MARGINS US Retail sales of Igloo coolers ▪ Strong sales growth and increased market share Last 12 months ▪ Volume growth Product +30% innovation drives ASP ▪ Increased average sales price driven by price management increase and product innovation
Slide 17: Increased Price Through Product Innovation
INCREASED PRICE THROUGH PRODUCT INNOVATION FROM ”GOOD” TO ”BETTER” ”BETTER” Overland 25 Overland 50 Overland 70 Overland 52 Roller Overland 72 Roller $59.00 $79.00 $99.00 $99.00 $129.00 ”GOOD” Laguna 9 Laguna 12 Laguna 16R Laguna 28 Laguna 28R Laguna 48 Laguna 60R $10.88 $15.88 $21.88 $17.97 $24.88
Slide 18: Acquisition of Treeline Capital LLC
ACQUISITION OF TREELINE CAPITAL LLC SERVICE & AFTERMARKET PRODUCTS AND MOBILE POWER SOLUTIONS FOR THE MARINE MARKET IN NORTH AMERICA ▪ Strengthens offering and market presence in Service & Aftermarket ▪ Two leading brands to be integrated ▪ CDI Electronics ▪ Balmar ▪ 2021 net sales USD 16 m with str
Slide 19: Mobile Power Solutions
MOBILE POWER SOLUTIONS ESTABLISHED A SEK 2 BILLION BUSINESS ON A FAST-GROWING MARKET ▪ Established a global platform of Mobile Power Solutions, including solar power products ▪ Meeting the rapidly increased end-user demand for sustainable and effective off-grid products ▪ Six acquisitions completed
Slide 20: E-Commerce – DTC
E-COMMERCE – DTC DTC SALES MORE THAN DOUBLED IN ONE YEAR SUPPORTED BY ORGANIC GROWTH AND ACQUISITIONS Activities Net sales, SEK m ▪ Global platform implemented in US and Distribution and Service & Aftermarket Of which Australia driving organic growth DTC 4% 4,500 ▪ Ongoing implementation in Europe a
Slide 21: Restructuring Program
RESTRUCTURING PROGRAM ▪ Locations ▪ Announced closure of manufacturing in Elkhart, US ▪ 23 locations impacted since program start ▪ Employees ▪ 154 employees affected in the quarter, 958 since program start ▪ Costs ▪ SEK 136 m in the quarter, SEK 455 m since program start ▪ Further activities planne
Slide 22: 2022 Strategy Execution
2022 STRATEGY EXECUTION 1▪ Profitable expansion ▪ Distribution and Service & Aftermarket share of sales 56% (45%) ▪ Organic growth in all sales channels ▪ Three acquisitions completed in the quarter ▪ DTC sales more than doubled in one year 2▪ Product leadership ▪ Innnovation index 21% (23%) - compo
Slide 23: Sustainability
SUSTAINABILITY LTIFR1 reduced 32% compared to the same period last year KPI Focus area Baseline Actual 2024 Target Implementation of Health & Safety guidelines LTIFR1) People 2.4 2.0 <2.0 continues Share of female managers People 24% 24% 27% CO2 tonne / Net sales SEK m Planet -29% -30% Share of fema
Slide 24: Stefan Fristedt, CFO
STEFAN FRISTEDT CFO
Slide 25: Q1 Income Statement
Q1 2021 INCOME STATEMENT ▪ Net sales SEK m 7,518 (+55%) ▪ Organic growth 7%, with growth in all sales channels and in four segments SEK m Q1 2022 Q1 2021 Change% ▪ EBITA before i.a.c. SEK m 1,114 (+39%) Net sales 7,518 4,858 55% ▪ Increased income in all segments EBITA before i.a.c. 1,114 801 39% in
Slide 26: EBITA Development
EBITA DEVELOPMENT ▪ Organic + FX + Currency translation and transaction effects + Sales growth and pricing EBITA bef i.a.c. SEK m (% of sales) SEK 1,114 m + Cost saving activities 1,200 (14.8%) ‒ Inefficiencies due to supply constraints ‒ Freight costs and raw material prices 1,000 SEK 801 m ‒ Chann
Slide 27: Cash Flow for the Period
CASH FLOW FOR THE PERIOD SEK m Q1 2022 Q1 2021 ▪ Operating cash flow SEK -398 m (-20) EBIT 812 725 ▪ Strong sales and demand Adjustments for non-cash items 374 228 ▪ Seasonal build-up in acquired companies Changes in Working Capital -1,470 -892 ▪ Secure availability of critical components Investment
Slide 28: Operating Cash Flow
OPERATING CASH FLOW Q1 HISTORICALLY THE WEAKEST QUARTER
Slide 29: Working Capital Days
WORKING CAPITAL DAYS WORKING CAPITAL AMBITION 20% OF NET SALES DPO (ACCOUNTS PAYABLES) DSO (ACCOUNTS RECEIVABLES) 90 70 80 60 70 60 50 58 63 50 47 46 40 40 45 44 30 30 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 20202 2021 2022 2020 2021 2022 DPO LTM DSO LTM SEKm DIO (INVENTORIES) Days 14,
Slide 30: 2021 - 2022 Acquisitions
2021 - 2022 ACQUISITIONS SEASONAL BUILD UP OF INVENTORY Acquisitions, 2021 proforma sales by Q 31% 23% 25% 21% ▪ Ten acquisitions in total, mainly in markets with its high-season in Q2 and Q3 Q1 Q2 Q3 Q4 ▪ Nine acquisitions with its main markets in Acquisitions completed in 2021 Americas and EMEA An
Slide 31: Capex and Research & Development
CAPEX AND RESEARCH & DEVELOPMENT (SEK m, % OF NET SALES) CAPEX 200 8% 150 6% 100 1.5% 4% ▪ Q1 2022 CAPEX: 1.8% 1.6% 152 111 1.5% of net sales 50 77 77 95 2% 68 38 48 72 (1.6% same period 2021) 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 Q1 2020 2020 2020 2020 2021 2021 2021 2022 R&D 150 2.2% 6 1.7% 125 2.3% 5
Slide 32: Debt Maturity Profile and Leverage
DEBT MATURITY PROFILE AND LEVERAGE Debt maturity profile, SEK m USD loans EUR bonds EKN loan ▪ Well diversified profile 2.000 ▪ Average maturity 3,5 years 3,104 3,103 3,103 3,103 ▪ Undrawn revolving credit facility of EUR 200 m 1,956 2022 2023 2024 2025 2026 2027 2028 Net debt leverage ▪ Q1 Net debt
Slide 33: Dometic 4 Year Perspective
DOMETIC 4 YEAR PERSPECTIVE A SIGNIFICANTLY STRONGER AND MORE DIVERSIFIED COMPANY Reduced leverage in line with Net sales up 80%, with a more target of around 2.5x diversified mix 3.4 Net sales SEK b 7.5 Distribution 2.8 4.4 4.2 28% Service & Aftermarket 2.7 9% 10% 28% OEM 26% 31% 65% 59% 44% 2018 Q1
Slide 34: Q1 Summary
Q1 SUMMARY Business highlights ▪ Strongest Q1 ever ▪ Strong order backlog and lower than normal retail inventory levels ▪ Important to protect margins through price increases ▪ Component supply issues continue to impact deliveries and cost ▪ Positive development of acquired companies ▪ Igloo showing
Slide 35: Dometic
“> DOMETIC
Slide 36: 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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