Fluidra, S.a. · BME:FDR
Fluidra — Investor Day (April 2021)
40 slides from Fluidra's investor day presentation, Apr 15, 2021
Slide 1: To Create the Perfect Pool & Wellness Experience, Responsibly
TO CREATE THE PERFECT POOL & WELLNESS EXPERIENCE, RESPONSIBLY Global Market Leader - Delivering Growth, Quality & Resilience 5th Capital Markets Day – 15th April 2021
Slide 2: Disclaimer
DISCLAIMER • This document is for information purposes 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 by Fluidra, S.A. ("Fluidra", and with all i
Slide 3: Today's Presenters
TODAY’S PRESENTERS Eloi Planes Bruce Brooks Xavier Tintoré Executive Chairman CEO CFO • +25 years in the company • +10 years as CEO (incl. Zodiac) • +10 years in the company • 10 years as CEO and 5 as • +30 years of experience in • Strong international experience Executive Chairman international man
Slide 4: To Create the Perfect Pool & Wellness Experience, Responsibly
TO CREATE THE PERFECT POOL & WELLNESS EXPERIENCE, RESPONSIBLY Global Market Leader - Delivering Growth, Quality & Resilience 5th Capital Markets Day – 15th April 2021
Slide 5: Accelerating Growth & Improving Value Creation
ACCELERATING GROWTH & IMPROVING VALUE CREATION 1 Global leader – at scale, in a long-term structural growth industry Track record of delivery, expecting to fulfill 2022 Strategic Plan one year ahead of 2 target Winning regional strategies for growth and profitability IoT increasing barriers to entry
Slide 6: Fluidra Continues to Deliver on Financial Objectives – Ahead of Plan
FLUIDRA CONTINUES TO DELIVER ON FINANCIAL OBJECTIVES – AHEAD OF PLAN Targets set – Strategic Plan 2018-2022 €1.2bn €1.7bn • Executed ahead of plans set with transformational 2018 Zodiac Sales €1.5bn Margin guidance merger 2017 at c. 23% vs 22% target in 2022 €199m €351m EBITDA1 €321m • All 2022 Stra
Slide 7: Global Leader in a Growth Industry
GLOBAL LEADER IN A GROWTH INDUSTRY Structurally attractive industry – long-term growth, accelerated by 1 recent lifestyle changes 2 Global leader – based on unique footprint and offering 3 Growth, improving margin and value creation for shareholders 7
Slide 8: Structurally Attractive Industry
1 STRUCTURALLY ATTRACTIVE INDUSTRY FLUIDRA CAPITAL MARKETS DAY
Slide 9: Long-Term Structural Growth Drivers – Currently Boosted Further
LONG-TERM STRUCTURAL GROWTH DRIVERS – CURRENTLY BOOSTED FURTHER Market Dynamics & Drivers Market Step Change Consumer trends Large installed pool base with accelerating growth Flight to suburbs globally and in the USA to the sunbelt Average selling price continues to grow Increasing tendency towards
Slide 10: Attractive Industry Growth Rate Expected to Increase Further
ATTRACTIVE INDUSTRY GROWTH RATE EXPECTED TO INCREASE FURTHER 1 2 3 New Installed Average 3-7% 8% Build Base Ticket on Weather 4-8% Growth Growth Equipment 2015-2019 2020 Medium term growth assumptions 1 Underpinned by lifestyle / housing megatrends MARKET GROWTH 2 Medium-term installed base growth g
Slide 11: Large Global Market – Highly Fragmented & Led by Fluidra
LARGE GLOBAL MARKET – HIGHLY FRAGMENTED & LED BY FLUIDRA NA & Europe make up for the bulk of the large Global market … ... as well as the dispersed residential segment Split by market 2020 Chemicals Rest of the World Increase from €7.1bn 24% 21% addressable market in 2017: Global Pool 1. Market grow
Slide 12: Growing Residential Installed Base Solidifying Revenue Resilience and Visibility
GROWING RESIDENTIAL INSTALLED BASE SOLIDIFYING REVENUE RESILIENCE AND VISIBILITY Resiliency driven by large installed base Acceleration in the evolution of the pool base Residential inground pools in millions Split by market type 2020 New Build @ 20 '19 Volumes 21% 15 New Build above '19 10 Volumes
Slide 13: Total Addressable Market Well-Diversified by Segment
TOTAL ADDRESSABLE MARKET WELL-DIVERSIFIED BY SEGMENT Maintenance New Build Consumables Re-model & Upgrade €2.9bn €2.8bn €4.2bn €1.6bn c.94% Residential / c.74% Residential / c.89% Residential / c.91% Residential / c.6% Commercial c.26% Commercial c.11% Commercial c.9% Commercial Total global address
Slide 14: Very Attractive – and Improving – Industry Dynamics
VERY ATTRACTIVE – AND IMPROVING – INDUSTRY DYNAMICS 1 Megatrends driving acceleration in medium-term structural growth 2 Unit value expanding materially (and Fluidra’s share of it) 3 Addressable market well-diversified by category Accelerating growth of installed base enhances resilience, visibility
Slide 15: Global Industry Leader
2 GLOBAL INDUSTRY LEADER FLUIDRA CAPITAL MARKETS DAY
Slide 16: Global Industry Leader – Strengthened, and Invested, to Win
GLOBAL INDUSTRY LEADER – STRENGTHENED, AND INVESTED, TO WIN WHY FLUIDRA WINS 2015-19 2020 Medium term growth Assumptions Market growth Broadest geographic footprint – access to all markets for 1 growth & diversification New Build growth Optimal business model and adapted “route to market” - 2 Brande
Slide 17: Significant Scope to Gain Further Market Share
SIGNIFICANT SCOPE TO GAIN FURTHER MARKET SHARE, DRIVEN BY SCALE AND MARKET FRAGMENTATION Fluidra is #1 in countries with 40% of global pool base… Global diversified platform and top 3 in 93% Fluidra generates 4x more revenue outside 1 North America than next player… … and now Fluidra has closed the
Slide 18: Blended Model Adapts & Optimizes Route to Market Across Globe
BLENDED MODEL ADAPTS & OPTIMIZES ROUTE TO MARKET ACROSS GLOBE Fluidra operates across the value chain with Significance of Pool Pro an adapted regional model • Critical route to market > 70% of channel share Fluidra presence • Pool Pro is key decision-maker for product North America: selection and s
Slide 19: Global Industry Leader with Winning Regional Strategies
GLOBAL INDUSTRY LEADER WITH WINNING REGIONAL STRATEGIES Accelerate growth in North America Strong product pipeline Expand into new residential Leverage connected Continue aftermarket Develop commercial pool and new channels categories from CMP pools for cross-selling penetration strategy by growing
Slide 20: Global R&D Leader – Strategic Investments in Innovation
GLOBAL R&D LEADER – STRATEGIC INVESTMENTS IN INNOVATION AT OUR CORE Internet of Things (IoT) • R&D capability with >200 engineers and Cleaners >1,400 patents • 3x more patents than the next industry player Hydraulics • Robust product roadmap based on key Heating criteria • Improving quality and user
Slide 21: IoT Starting Momentous Transformation of Customer Demands & Expectations
Fluidra – Global industry leader IOT STARTING MOMENTOUS TRANSFORMATION OF CUSTOMER DEMANDS & EXPECTATIONS FEWER PLAYERS CAN DELIVER - INCREASING BARRIER TO ENTRY / PARTICIPATION Core fundamentals of our IoT strategy IoT benefits the entire pool ecosystem 1 • Ease of use and peace of mind enhances ex
Slide 22: IoT Set to Deliver Meaningful Value for Customers and Investors
IOT SET TO DELIVER MEANINGFUL VALUE FOR CUSTOMERS AND INVESTORS FLUIDRA THE CLEAR LEADER IN CONNECTED EQUIPMENT Connected Non- bundle drives connected ASP of Pool Pad >20% plus additional product sales Connected IoT 2025 Ambition vs. Current Leadership in a growing market FY 2020 2025 Target • Stron
Slide 23: Proven Track Record on Margin Expansion - Set to Continue
PROVEN TRACK RECORD ON MARGIN EXPANSION - SET TO CONTINUE Clear competencies to drive margin Proven Margin Expansion (Adjusted EBITDA % Sales) • Lean and Value Initiatives as a constant process taking cost out of products mainly through: 24% ‒ Product or component redesign ‒ Supplier change or cost
Slide 24: M&A Track Record: Regular, Systematic Process - Creating Value
M&A TRACK RECORD: REGULAR, SYSTEMATIC PROCESS - CREATING VALUE Clear acquisition parameters Disciplined M&A strategy in a largely fragmented market Opportunity for product range & Culturally aligned • Objective to generate additional annual sales growth of customer expansion c. 1-2% per annum • Larg
Slide 25: CMP Acquisition Case Study (Q1 2021) – Meets All Our Criteria
CMP ACQUISITION CASE STUDY (Q1 2021) – MEETS ALL OUR CRITERIA Our Criteria & CMP Opportunity Fast-growing business - attractive adjacent segment (sales by segment) Expands Group North America Footprint: US 1 manufacturer of solutions for recreational water industry • 2016-20 Sales CAGR of Product ra
Slide 26: Strong Culture Reinforced by ESG – Mission, Vision and Values
STRONG CULTURE REINFORCED BY ESG – MISSION, VISION AND VALUES MISSION VISION VALUES TO CREATE THE PERFECT To enhance lives through POOL & WELLNESS innovative and sustainable EXPERIENCE solutions that transform RESPONSIBLY the way people enjoy water for recreation and health 26
Slide 27: ESG Case Study – The Most Efficient Pool System on the Planet
ESG CASE STUDY – THE MOST EFFICIENT POOL SYSTEM ON THE PLANET Automatically optimizes for peak Uses 70% efficiency Variable-Speed less energy iAquaLink Pumps Reduces chlorine use by Uses less than up to 50% Salt + Mineral Sanitization LED Lighting 50W of power Reduces 50% increase in evaporation by
Slide 28: Responsibility Blueprint: Clear Commitments in Each ESG Vertical
RESPONSIBILITY BLUEPRINT: CLEAR COMMITMENTS IN EACH ESG VERTICAL Environment Social Governance Carbon neutral Zero net wage gap Rating Be a carbon neutral company in Equal pay for equal work Reach a score of 80 in 2027 (Scope 1 & 2) and by 2050 between men and women by S&P in 2030 (Scope 3) 2024 − 2
Slide 29: Fluidra Is the Only Global Player with an Integrated Model
FLUIDRA IS THE ONLY GLOBAL PLAYER WITH AN INTEGRATED MODEL 1 Broadest geographic footprint – access all markets for growth & diversification 2 Optimal business model and adapted “route to market” - Branded & Pool-Pro centric 3 Innovation / IoT leader – drives growth and margin Continuous margin expa
Slide 30: Growth, Quality & Value Creation
3 GROWTH, QUALITY & VALUE CREATION FLUIDRA CAPITAL MARKETS DAY
Slide 31: Fluidra's Proposition of Growth & Quality of Returns Is a Rare Combination
FLUIDRA’S PROPOSITION OF GROWTH & QUALITY OF RETURNS IS A RARE COMBINATION - WARRANTS A WIDER PEER SET Very few companies offer similar investment attractions Wider relevant peer set for consideration Global Equity Universe Consistent structural revenue/ Profit growth Strong and improving margins De
Slide 32: Strong Track Record - Growth, Diversification & Resilience
STRONG TRACK RECORD - GROWTH, DIVERSIFICATION & RESILIENCE Growth dynamics Revenues1 CAGR 17-20 Adj. EBITDA2 CAGR 17-20 Cash EPS3 CAGR 17-20 • Strong and consistent top-line growth above market 23% 21% 15% 11% • Resilience founded on megatrends, and 7% 5% growing installed base • Global footprint di
Slide 33: High Quality Cash Returns on Investment – Set to Improve Further
HIGH QUALITY CASH RETURNS ON INVESTMENT – SET TO IMPROVE FURTHER Very strong operating, cash conversion and returns dynamics … • Delivering Growth & Avg. EBITDA1 Mgn. 17-20 Avg. FCF conversion2 17-20 ROCE3 2020 Quality of Returns Significant operating leverage 19% as measured - Fluidra leads a fast-
Slide 34: Disciplined Approach to Capital Allocation, to Optimize Returns
WE TAKE A DISCIPLINED APPROACH TO CAPITAL ALLOCATION, TO OPTIMIZE RETURNS INVESTMENT PRIORITY CONSIDERATIONS Reinvest in the business to • Optimize market entry and expansion drive organic revenue growth • R&D investment at 1.5-2% sales p.a. and margin improvement • Optimize efficiency via digitaliz
Slide 35: Medium-Term Strategic & Financial Objectives Summary
MEDIUM-TERM STRATEGIC & FINANCIAL OBJECTIVES SUMMARY • > Industry, leveraging global footprint Operating and financial performance Growth • Focus on North America expansion Past Step change Future • Drive by innovation, IoT, Commercial Pool Medium 2017-19 20202 2021E Term • Continued execution – Sim
Slide 36: Accelerating Growth & Improving Value Creation
ACCELERATING GROWTH & IMPROVING VALUE CREATION 1 Global leader – at scale, in a long-term structural growth industry Track record of delivery, expecting to fulfill 2022 Strategic Plan one year ahead of 2 target Winning regional strategies for growth and profitability IoT increasing barriers to entry
Slide 37: Appendix
APPENDIX FLUIDRA CAPITAL MARKETS DAY
Slide 38: Ownership Structure and Shareholders' Agreement
OWNERSHIP STRUCTURE AND SHAREHOLDERS’ AGREEMENT Ownership structure Shareholders’ agreement Rhône Capital: Free float • Prohibition to sell to a single acquirer (i) more than 20% or (ii) any 50.2% number of shares if this would legally oblige the acquirer to launch a tender offer - Once funds manage
Slide 39: US GAAP to IFRS - Key Financial Differences for Fluidra
US GAAP TO IFRS - KEY FINANCIAL DIFFERENCES FOR FLUIDRA €M 2020 Adjusted EBITDA 320.8 Lease expense (24.7) Lease expenses not included in P&L under IFRS 16 R&D expense (12.5) Capitalized R&D expenses Adjusted EBITDA (US GAAP comparable) 283.6 Depreciation (58.1) Adjusted EBITA (US GAAP comparable) 2
Slide 40: Thank You for Your Attention!
THANK YOU FOR YOUR ATTENTION! Luis Boada IR, Corporate Communications & Business Development Director lboada@fluidra.com T: +34 93 724 39 00 | M: +34 600 930 505 | www.fluidra.com/shareholders Bloomberg ticker: FDR:SM Reuters ticker: FLUI.MC