Slide 1: Nilfisk full-year results 2019
Nilfisk full-year results 2019 Webcast presentation, February 25, 2020
Slide 2: Forward looking statements
Forward looking statements This presentation contains forward-looking statements, including statements regarding Nilfisk’s future operating results, financial position, inventory, cash flows, strategic priorities as well as plans for the future. Forward-looking statements include, without limitation
Slide 3: Agenda
Agenda 1 2 3 4 Full-year Financials 2020 outlook Q&A highlights 3 Nilfisk full-year results 2019
Slide 4: 2019 at a glance
2019 at a glance Key highlights • Organic growth of -4.1% • EBITDA margin before special items* of 9.9% • In line with latest guidance but lower than initial expectations for 2019 • Good progress in the Nilfisk transformation *Excl. IFRS 16 uplift 4 Nilfisk full-year results 2019
Slide 5: Second year of transformation: Progress towards a global operating model
Second year of transformation: Progress towards a global operating model Highlights • Structures and organization – Functional organization and leadership team established – Alignment of organizational structures in EMEA and US – Integration of IVS and HPW businesses allowing sales force to sell ful
Slide 6: Market and segment highlights
Market and segment highlights Americas EMEA APAC • Strong performance in Latin America and • Economic slowdown mainly in Central region, • Continued growth in China – albeit at a lower Canada in particular Germany in particular level • Revenue development in US lower than • Rest of Europe mainly aff
Slide 7: 2020 - focus on commercial execution
2020 - focus on commercial execution Key priorities • Deliver superior customer experience o Focus across our value chain • Focus on our major markets including growing US • Focus on growth opportunities, ex: o Autonomous o Cross-selling portfolio o Service o Viper products • Focus the Consumer busi
Slide 8: Agenda
Agenda 1 2 3 4 Full-year Financials 2020 outlook Q&A highlights 8 Nilfisk full-year results 2019
Slide 9: Financial performance for the full year and Q4
Financial performance for the full year and Q4 FY Q4 Key messages • Revenue significantly impacted by negative Revenue 966.5 233.8 (mEUR) organic growth and divestments • All segments contributing to negative organic Organic growth -4.1% -6.3% growth FY. Q4 organic growth to a large extent impacted
Slide 10: Full-year revenue and organic growth development
Full-year revenue and organic growth development Revenue, mEUR Comments -8.3% • Total reported revenue down by 8.3% vs. 2018 +1.3% -59.6 – Divestment impact of -5.5% 13.6 -5.5% -41.8 – Positive impact from FX of 1.3% (mainly due to USD) 1,054.3 -4.1% 966.5 – Underlying organic growth of -4.1% FY 201
Slide 11: Q4 revenue and organic growth development
Q4 revenue and organic growth development Revenue, mEUR Comments -9.6% • Total reported revenue down by 9.6% vs. Q4 2018 +0.7% -11.0 – Divestment impact of -4.0% 1.8 -15.7 -4.0% – Positive impact from FX of 0.7% (mainly due to USD) 258.7 233.8 -6.3% – Underlying organic growth of -6.3% Q4 2018 Dives
Slide 12: EMEA
EMEA Comments Q4 2019 • Q4 organic growth of -3.7% mainly impacted by continued soft market conditions in Central region – Germany in particular • Slightly negative organic growth in North and South regions with variations across markets • Gross margin down by 0.9 percentage point mainly due to unfa
Slide 13: Americas
Americas Comments Q4 2019 • Q4 organic growth of -13.3% due to US. Lower sales to strategic accounts (high comps), weak industrial sales and continued softness in high pressure washers • Gross margin down by 0.3 percentage point negatively impacted by US imposed tariffs • EBITDA margin before specia
Slide 14: APAC
APAC Comments Q4 2019 • Organic growth of -4.3% mainly due to lower sales in Australia • Gross margin down by 3.4 percentage points compared to last year negatively impacted by inventory write-downs in Australia • EBITDA margin before special items (adjusted for IFRS 16 uplift and phantom shares) do
Slide 15: Other business units
Other business units Consumer Private label and other Q4 2019 • Cautious customer behavior in H2 impacting organic growth of • Organic growth of 12% in Q4 due to large one-time sales prior to exit -14.4% for the full year and -10.4% in Q4 from Pacific region • Gross margin positively affected by mix
Slide 16: Income statement
Income statement EUR million FY 2019 FY 2018 Change Q4 2019 Q4 2018 Change Highlights Net sales 966.5 1,054.3 -87.8 233.8 258.7 -24.9 Reported growth -8.3% -2.5% -5.8% -9.6% -7.7% -1.9% • Total reported revenue down by 8.3% vs. 2018 Organic growth -4.1% 2.0% -6.1% -6.3% -1.9% -4.4% • FY gross margin
Slide 17: Development of EBITDA
Development of EBITDA Before special items, IFRS 16 and phantom shares EBITDA* bridge, mEUR Comments -25.8 ~121 • Adjusted EBITDA before special items down by 25.8 mEUR. ~120 ~ -1 – Excluding divestments, approx. 2/3 of impact driven by ~ -2 revenue ~ -10 ~9 – Approx. 1/3 of decline due to tariffs a
Slide 18: Balance sheet and cash flow
Balance sheet and cash flow EUR million FY 2019 FY 2018 Change Comments Inventories 172.7 172.9 -0.2 • NWC reduced by 12.5 mEUR mainly driven by lower Receivables 196.1 218.9 -22.8 receivables due to lower revenue Payables 210.0 223.0 -13.0 • LTM NWC ratio up by 2.1 percentage points Reported NWC 15
Slide 19: Agenda
Agenda 1 2 3 4 Full-year Financials 2020 outlook Q&A highlights 19 Nilfisk full-year results 2019
Slide 20: Outlook 2020
Outlook 2020 • The adverse economic conditions in EMEA, which Outlook affected demand during 2019 are expected to continue • Organic growth for the total business expected in the into 2020. A pick-up in demand in the second half of the range -4% to 1% to a large extent due to Consumer and year is ex
Slide 21: Agenda
Agenda 1 2 3 4 Full-year Financials 2020 outlook Q&A highlights 21 Nilfisk full-year results 2019
Slide 22: Q&A
Q&A 22 Nilfisk full-year results 2019
Slide 23: Page 23
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