Fluidra, S.a. · BME:FDR
Fluidra — Investor Day (November 2015)
49 slides from Fluidra's investor day presentation, Nov 17, 2015
Slide 1: Strategic Plan 2018 Road Map to 2020
STRATEGIC PLAN 2018 ROAD MAP TO 2020 Executive Summary 17 November 2015 STRATEGIC PLAN 2018 ROAD MAP TO 2020
Slide 2: Disclaimer
Disclaimer This document is for information only and does not constitute an offer to sell, exchange or buy, or an invitation to make offers to buy, securities issued by any of the companies mentioned. This financial information has been prepared in accordance with International Financial Reporting S
Slide 3: Index
Index 1. Introduction 2. Pool Sector 3. Best practices for profitable growth 4. Gain penetration: geographical markets 5. Financial outlook & Closing STRATEGIC PLAN 2018 ROAD MAP TO 2020 3
Slide 4: Introduction
Introduction STRATEGIC PLAN 2018 ROAD MAP TO 2020
Slide 5: Fluidra at a Glance
Fluidra at a Glance Strong 2014 Sales: €593.8M (0.2%) Financial 2014 EBITDA: €65.7M (37.7%) Performance 2014 Net Debt: €151.6M (-18.8%) International leader in distribution of solutions for Pool and Wellness, including Fluid Handling and Business Water Treatment Vertically integrated for P
Slide 6: Fluidra evolution
Fluidra evolution +1.7% +2.3% +7% G.D.P. 1m€ Profitable growth 1969… 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 … 2018 2020 Source: IMF-WEO STRATEGIC PLAN 2018 ROAD MAP TO 2020 6
Slide 7: Evolution of the Global Pool Market
Evolution of the Global Pool Market Global Evolution of Total Pool Base Global Evolution of New Pools 18.000.000 600.000 15.000.000 500.000 12.000.000 400.000 9.000.000 300.000 6.000.000 200.000 3.000.000 100.000 - - 2007 2009 2011 2013 2015E 2007 2009 2011 2013 2015E Europe Australia N. America Asi
Slide 8: The Pool market is now healthier
The Pool market is now healthier European Pool Market Model (2008) European Pool Market Model (2014) New Construction New 31% Existing Construction Base Existing 48% 52% Base 69% Fluidra benefits from recurring revenues coming from the pool base as well as from a recovery of new construction Source:
Slide 9: Fluidra has a strong geographical footprint
Fluidra has a strong geographical footprint 5.3M 5.2M 76K Full strategy 87K Robots 80% 0.3M Category strategy 17K 0.9M 73% 2.5M Total pools 115K 18K 86% 90% New pools 1.3M 17K 100% Branch coverage International expansion in last years has developed a network that covers 89% of the park (Ex-US) STRAT
Slide 10: Experienced & passionate team
Experienced & passionate team Board of directors Mr. Joan Planes, Chairman Mr. Juan Ignacio Acha-Orbea, Independent Director: Finance Mr. Gabriel López, Independent Director: Audit Mr. Eloi Planes, Chief Executive officer Mr. Richard J. Cathcart, Independent Director: US Mr. Jordi Constans, Independ
Slide 11: Shareholder Structure
Shareholder Structure The shareholders’ agreement by the founding families and Banc Sabadell reflects their confidence in Fluidra’s growth strategy and in its future projects. Boyser 14.1% Free float 45.1% Edrem 13.5% Dispur 12.2% Banc Sabadell Aniol 5.0% 10.1% STRATEGIC PLAN 2018 ROAD MAP TO 2020 1
Slide 12: Focus on profitable growth
Focus on profitable growth STRATEGIC PLAN 2018 ROAD MAP TO 2020 12
Slide 13: Pool Sector
Pool Sector STRATEGIC PLAN 2018 ROAD MAP TO 2020
Slide 14: Market offers a significant opportunity…
Market offers a significant opportunity… In terms of product and geographies 18% Basic-Filter, Pump… 41% Maintenance 16% Added Value - Robots, 22% Chlorinators 2014 Commercial equipment Pool Market 19% (ex US) 3.2B€ 8% Europe 84% 17% Africa Australia 56% Fluidra 14% LatAm Others 5% Asia & ME Source:
Slide 15: …to continue building our international leadership
…to continue building our international leadership Clear #1 in most relevant markets… % of No. of Global Countries Pool Base Market Leader 31 40% Export Leader 12 1% Key Player 13 21% Export Player 4 5% Source: Company elaboration based on country pool associations data and other public company data
Slide 16: Competing with different players in every geography
Competing with different players in every geography Global leader Others Fluidra 16% 46% Pool Market (ex US) Local/Regional 3.2B€ Players Chemoform, 23% Other Global Waterco,FIJA Players Group, Neptune, Nextpool, Procopi, 15% Zodiac, Pool Corp, Myrtha, QP, Hayward, Pentair, Maytronics,… Lonza Source
Slide 17: A clear leader in innovation
A clear leader in innovation Multi-center & open R&D model Innovation Committee Partners’ Network Customers R&D+i 13 R&D Invested: 1,4% of sales Centers of New Product Sales: 10% - 2015 Excellence 15% - 2018 STRATEGIC PLAN 2018 ROAD MAP TO 2020 17
Slide 18: Delivering incremental value
Delivering incremental value From product to service and solutions Value Basic Automated Sustainable System & Service Product Product Product Solution Time STRATEGIC PLAN 2018 ROAD MAP TO 2020 18
Slide 19: Fluidra Connect: the Internet of Pools
Fluidra Connect: the Internet of Pools Potential for new revenue streams The smart solution offering to the pool professional a complete online pool control, diagnosis and management. Pool Professional 1. Expand Business 2. Gain efficiency 3. Increase customer loyalty Pool owner 1. Peace of mind 2.
Slide 20: Residential Pool
Residential Pool 17% 2.6B€ ex US 83% STRATEGIC PLAN 2018 ROAD MAP TO 2020 20
Slide 21: A model that meets our customer needs
A model that meets our customer needs Excellent match of our model with industry success factors PUSH STRATEGY • One stop shop: pool, irrigation, fluid handling, water treatment. KEY SUCCESS • Technical support & training FACTORS • Availability in branch/on time delivery • After sales service STRATE
Slide 22: Commercial Pool
Commercial Pool 11% 0.6B€ ex US 89% STRATEGIC PLAN 2018 ROAD MAP TO 2020 22
Slide 23: Understanding decision making for commercial
Understanding decision making for commercial …owners play a key role on choosing the solution DEVELOPERS DESIGN & IDEA PRE DESIGN EXECUTION OWNERS ENGINEERING Preliminary design Design to build Project management Initial engineering Final engineering Cost management Initial cost estimates Project co
Slide 24: A model that delivers to our customer needs
A model that delivers to our customer needs Complete match of industry success factor and our model Owners PUSH PULL KEY Technical support & training Design & Engineering SUCCESS On time delivery Integrated solutions FACTORS After sales service Project management STRATEGIC PLAN 2018 ROAD MAP TO 2020
Slide 25: Best practices for profitable growth
Best practices for profitable growth STRATEGIC PLAN 2018 ROAD MAP TO 2020
Slide 26: Proven & Efficient Best Practices
Proven & Efficient Best Practices STRATEGIC PLAN 2018 ROAD MAP TO 2020 26
Slide 27: Sales & Customer Management
Sales & Customer Management Set of practices to maximize sales impact: 35% • Professional pricing management by product and client segment • Sales Activity Management (SAM): Understand in every client where we have opportunities to grow and how to attack them. Sales Reps or Inside Sales for smaller
Slide 28: Cash & Carry Branch
Cash & Carry Branch From old distribution warehouse branch to cash and carry concept: Warehouse Cash & Carry 35% Concept Order & Wait Self -service Size 1.200-1.500m2 600-800m2 # SKU 9.000 1.500 Headcount 6-7 3-4 Brand awareness Long waiting time Cross – selling Promotion Expand concept from 37 bran
Slide 29: Fluidra Engineering Solutions
Fluidra Engineering Solutions …a model to serve commercial pool customers 35% A team of people focused on: • Developing pre-design and final design & engineering proposals. • Developing integrated solutions. • Project Management. • Project Installation (if needed). From 35% of markets to 100% of mar
Slide 30: Logistic Model
Logistic Model Our model 2015-2018 Expand Fluidra Direct where possible opening Regional Distribution Center Direct shipment from Regional Distribution Center to customer EU LOCAL SUPPLY SUPPLY Maintains Country Traditional Branch Cash& Carry where possible Next Distribution Centers: • Australia 201
Slide 31: Manufacturing Model
Manufacturing Model 3 practices to maximize Efficiency expanding them worldwide: Footprint consolidation Product Category rationalization Lean Manufacturing: Continuous improvement and total quality. (Productivity from 2010: 2% annual in Europe) (Quality: Claimed order lines from 1,5% to 1,1% in 4 y
Slide 32: Consolidator in a fragmented industry
Consolidator in a fragmented industry Fluidra has been the consolidator of the Acquisition plan 2018 industry outside of the US since year 2000 with: Sales size 1-35M€ Technology: Salt chlorinators, Robots. Type Distribution, [Technology] Distribution: Australia, Austria, Brazil, Indonesia, China, U
Slide 33: Roadmap for 2018: best practices
Roadmap for 2018: best practices 2015 2018 Sales & Customer Mng (Number of countries implemented 5 countries 25 countries Cash & Carry (C&C over total branches) 37 88 Engineering Solutions (% regions implementing) 35% 100% Logistic Model (% perfect delivery) 84% 95% Manufacturing Model (Level of exc
Slide 34: Gain penetration: Geographical markets
Gain penetration: Geographical markets STRATEGIC PLAN 2018 ROAD MAP TO 2020
Slide 35: Geographical Markets
Geographical Markets Core for pool: Mainly business of residential pool and a huge base of • Market size 2.5B€ • 77% of our sales professional customers Emerging for pool: Mainly commercial pool • Market size 684 M€ business through projects • 19% of our sales USA: Robotic cleaner niche strategy • M
Slide 36: Core Pool Markets: Penetration
Core Pool Markets: Penetration 8.5M 2.5B€ 16% Total pools € Market trends: Market size • Capillarity • Focus on installed base pools: Added value • Perfect service level Market share • Commercial market already developed by actual customers • Few global players & major competitors are locals Our opp
Slide 37: Core Pool Markets: Best practices at full speed
Core Pool Markets: Best practices at full speed • Gain capillarity by opening new cash & carry branches. • Perfect delivery to our customers. • Customer management to optimize share. • Introduce new product in added value categories. • Engineering solutions to improve penetration. Expand success sto
Slide 38: Emerging Pool Markets: Focus on Commercial Pool
Emerging Pool Markets: Focus on Commercial Pool • Market based on Commercial Pool • Residential market is not relevant • Highly fragmented markets • Market size: 684 M€ • Fluidra share: 15% • Fluidra Coverage from 73% to 90% Market trends: • Tourism is the major driver • Prescription in Developers/E
Slide 39: Emerging Pool Markets: Our strategy
Emerging Pool Markets: Our strategy Develop Engineering solutions concept: From product prescription to project management. Further development of regional centres of engineering (existing in Dubai and Singapore). Global leader in Commercial Pool STRATEGIC PLAN 2018 ROAD MAP TO 2020 39
Slide 40: USA: Niche strategy - Robotic cleaners market
USA: Niche strategy - Robotic cleaners market • Market size 2014 estimated in 65 M€ • Only 10% penetration of robots per installed pool. Expected to grow in coming years. Competitors Situation in US Robot’s Market in volume US Robot’s Market in units Fluidra 30% 28% 2014 Market Fluidra market 14% Se
Slide 41: USA: Robotic cleaner strategy
USA: Robotic cleaner strategy Continue introducing new products from Israel to the mid-high segment. Implement Fluidra´s best practices to reinforce our sales activity in the country. Be the leader in all segments STRATEGIC PLAN 2018 ROAD MAP TO 2020 41
Slide 42: Organic growth expected in all continents
Organic growth expected in all continents 384M€ +3% 71M€ 38M€ +5% +6% 19M€ 15M€ +6% +9% 52M€ +8% Global organic growth will be around 4-7% annually Note: Net sales for 2014 adjusted for divestitures. Expected organic CAGR from 2014 to 2018. STRATEGIC PLAN 2018 ROAD MAP TO 2020 42
Slide 43: Financial outlook & Closing
Financial outlook & Closing STRATEGIC PLAN 2018 ROAD MAP TO 2020
Slide 44: Accelerated growth & operating leverage
Accelerated growth & operating leverage ANNUAL IMPACT Market Growth 2-4% Market share gains 2-3% Operating leverage will drive EBITDA growth x 2 Organic Growth 4-7% Acquisitions 2-4% Financial leverage & tax will drive Net Income growth even further Total Growth 6-11% STRATEGIC PLAN 2018 ROAD MAP TO
Slide 45: Outlook of increasing returns for shareholders
Outlook of increasing returns for shareholders 2014(*) TARGET 2018 CAGR’14- 18 Profitable Sales 579 750 7% Growth EBITDA 56 100 15% Net Income 0 30 100% ROCE 3% 10% More value Generating NWC/Sales 31% 28% Capex/Sales 4% 4% NFD/EBITDA 2.7X ≤2.2X (*) Adjusted for divestitures and extraordinary expense
Slide 46: Self funded strategic plan
Self funded strategic plan Financial debt finances Clear uses of Cash liquid assets POLICY TARGET TARGET 2018 2014 2018 Net Dividends 50% payout 15M€ Working 176M€ 210M€ Capital Target ≤4X Net Acquisitions EBITDA in 10-20M€/year Financial 151M€ 220M€ 3 years Debt STRATEGIC PLAN 2018 ROAD MAP TO 2020
Slide 47: Are we on the right track for 2018?
Are we on the right track for 2018? CAGR’14 CAGR’14 15% 7% 100 6% 10% 750 15% 680 29% 83 642 37% 72 579 56 2014 Guidance Guidance 2017 Target 2018 2014 Guidance Guidance 2017 Target 2018 2015 2016 2015 2016 SALES EBITDA The evolution of 2015 and preliminary guidance for 2016 show that we are on the
Slide 48: In summary: Why Fluidra?
In summary: Why Fluidra? …with an attractive valuation STRATEGIC PLAN 2018 ROAD MAP TO 2020 48
Slide 49: Thank you
STRATEGIC PLAN 2018 ROAD MAP TO 2020 THANK YOU STRATEGIC PLAN 2018 ROAD MAP TO 2020