Hayward Holdings, Inc. · NYSE:HAYW
Hayward — Q2 2022 Earnings Presentation
21 slides from Hayward's earnings presentation, Jul 28, 2022
Slide 1: Second Quarter 2022 Earnings
SECOND QUARTER 2022 EARNINGS July 28, 2022 © 2022 Hay ward Holdings, Inc.
Slide 2: Second Quarter 2022 Earnings Call
SECOND QUARTER 2022 EARNINGS CALL KEVIN HOLLERAN President and Chief Executive officer EIFION JONES Senior Vice President and Chief Financial Officer KEVIN MACZKA Vice President of Investor Relations NYSE: HAYW © 2022 Hay ward Holdings, Inc.
Slide 3: Disclaimer
Disclaimer SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This presentation contains certain statements that are “forw ard-looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995 (the “Act”) and releases issued by the Securities and Exchange Commissi
Slide 4: Q2 2022 Financial Overview
OVERVIEW Q2 2022 Financial Overview NET SALES ($MM) ADJUSTED EBITDA ($MM)1 Margin (% of net sales) SOLID SALES GROWTH +9.6% Ongoing demand for products in core YoY markets remains healthy. Pricing and +15.6% $399 acquisitions drive higher sales growth. $128 YoY $364 32.0% $110 INCREASED PRODUCT ADOP
Slide 5: Hayward Drivers of Growth
STRATEGIC GROWTH DRIVERS Hayward Drivers of Growth ✓ Launch of new Omni Control derivatives IoT Digital ✓ YoY Omni user base increased >64% Leadership ✓ >94% connected via Smart App Dealer ✓ Business Development roles 100% focus new dealer acquisition Conversions ✓ Totally Hayward Partners growth >1
Slide 6: Omni Controls: Winning Technology at Heart of SmartPad
OMNI CONTROLS Winning Technology at Heart of SmartPad Controls Pumps #1 XE VS Pumps OMNI #2 Omni PL creates the pull UV/O3 Filters Salt Cl Robots #4 AV 600 Series #7 AquaRite S3 Heaters Suction #5 Small Footprint #6 AquaNaut Universal Gas Heat OMNI In-floor #3 ColorLogic Lights LED Lights at the cen
Slide 7: SmartPad Aftermarket Conversion Upgrades
US POOL MARKET SmartPad™ Aftermarket Conversion Upgrades Key Sustainable Aftermarket Conversion Opportunities Increase TAM AFTERMARKET NEW CONSTRUCTION 38% ■ Controls ~67% Digital of 5.4mm Pools @ ~29% ■ No Controls Conversion $1,550 OEM Price = $3.2bn 25% ■ Salt Chemical of 5.4mm Pools @ ~37% ■ Non
Slide 8: SmartPad New Construction & Remodel Annuity
US POOL MARKET SmartPad™ New Construction & Remodel Annuity New Construction/Aftermarket Remodel Lifetime Annuity Value Technology, feature-rich pools increase TAM in Year 1 at Construction then create an aftermarket annuity over ~30 year life of the Pool NON-SMARTPAD POOL LIFETIME ANNUITY OEM equip
Slide 9: Installed Base of US In-Ground Pools
INSTALLED BASE Resilience of Aftermarket Large and Growing Installed Base of US In-Ground Pools 6.0 5.4 5.1 5.1 5.1 5.1 5.2 5.2 5.2 5.2 5.3 Installed Base of US In-Ground Pools (millions) 4.8 4.9 5.0 5.0 5.0 5.0 4.6 4.5 4.7 1 4.4 4.2 4.1 3.9 4.0 3.7 3.6 3.2 3.3 3.5 3.0 3.1 3.0 2.7 2.8 2.9 2.4 2.5 2.
Slide 10: M&A Adding Value to Omni and the Hayward SmartPad
M&A UPDATE M&A Adding Value to Omni and the Hayward SmartPad Strong Balance Sheet Unlocking New Opportunities ▪ Closed Specialty Lighting business from Halco extending core residential/commercial Pool lighting as well as extending to landscape for effortless backyard control ▪ Omni ready: Pool/Spa a
Slide 11: Second Quarter 2022 Highlights
OVERVIEW Second Quarter 2022 Highlights NET SALES OF $399 MILLION ▪ Additional price actions to combat continued cost inflation +10% YoY NET SALES GROWTH ▪ Acquisitions contributing positively to overall grow th ▪ Volume adversely impacted by global uncertainty and initial channel inventory reductio
Slide 12: North America Q2 2022 Segment Overview
OVERVIEW North America Q2 2022 Segment Overview NET GROSS PROFIT SEGMENT ADJUSTED SALES MARGIN INCOME SEGMENT INCOME1 $342 million 48.8% $111 million $123 million +16.5% YoY +93 bps YoY +23.8% YoY +23.5% YoY ▪ Favorable pricing and ▪ Pricing actions and ▪ Segment income margin ▪ Adjusted segment inc
Slide 13: Europe and ROW Q2 2022 Segment Overview
OVERVIEW Europe and ROW Q2 2022 Segment Overview NET GROSS PROFIT SEGMENT ADJUSTED SALES MARGIN INCOME SEGMENT INCOME1 $57 million 39.3% $13 million $13 million -19.0% YoY +39 bps YoY +6.8% YoY -26.6% YoY ▪ Decline in volumes as a result ▪ Favorable product mix and ▪ Segment income margin ▪ Adjusted
Slide 14: TEXT
TEXT © 2022 Hay ward Holdings, Inc. 14
Slide 15: 2022 Financial Outlook
LOOKING AHEAD 2022 Financial Outlook OUTLOOK REFLECTS: FULL YEAR ▪ Headwinds from geopolitical events in Europe and FX ▪ Channel inventory reduction Adjusted through 2H 2022 Net sales down 2% to 6% YoY EBITDA1 of ▪ Weather impact in seasonal markets $385 to $400 million ▪ Stable demand for products
Slide 16: Hayward's Value Proposition
Hayward’s Value Proposition PURE PLAY MARKET COMPETITIVE LEADERS STRATEGIC ROBUST FINANCIAL LEADING BRAND MOAT IN THE SMARTPAD™ VISION PERFORMANCE in growing outdoor CONVERSION to grow the addressable Full product line, omni with Recurring Sales market living sector channel presence, IoT-connected a
Slide 17: Appendix: Non-GAAP Reconciliations
APPENDIX APPENDIX Non-GAAP Reconciliations Non-GAAP Reconciliations © 2022 Hay ward Holdings, Inc.
Slide 18: Adjusted EBITDA & Adjusted EBITDA Margin Reconciliation
Adjusted EBITDA & Adjusted EBITDA Margin Reconciliation APPENDIX © 2022 Hay ward Holdings, Inc. 18
Slide 19: Adjusted Segment Income Reconciliations
Adjusted Segment Income Reconciliations APPENDIX © 2022 Hay ward Holdings, Inc. 19
Slide 20: Last Twelve Months Adjusted EBITDA Reconciliation
Last Twelve Months Adjusted EBITDA Reconciliation APPENDIX © 2022 Hay ward Holdings, Inc. 20
Slide 21: Thank You
THANK YOU © 2022 Hay ward Holdings, Inc.