Flugger Group A/s Class B · OMXCOP:FLUG_B
Flugger Group A/s Class B — Q1 2020/21 Earnings Presentation
15 slides from Flugger Group A/s Class B's earnings presentation, Nov 17, 2020
Slide 1: Investor Relation presentation 2020/21
Financials Investor Relation presentation 2020/21 November 2020 Page 1 I IR presentation
Slide 2: Vice chairman becomes CEO
Vice chairman becomes CEO switch roles Sune Schnack New vice chairman April 2020 New CEO April 2020 CFO CDO Jimmi Mortensen Sune Schnack Poul Erik Stockfleth Ulf Schnack CEO Vice chairman Finance, IT and legal DNA, Products, Wallpaper Page 2 I IR presentation
Slide 3: Flügger is a leading Nordic player within decorative paint products
Flügger is a leading Nordic player within decorative paint products for both professionals and consumers. In-house knowledge controlling entire value chain Leading position supported by strong fundamentals and diversified revenue stream Product development Production and logistics Segment 1 Own stor
Slide 4: Leading position in markets supported by strong fundamentals
Leading position in markets supported by strong fundamentals Overview of market dynamics Flügger Paint Market Key stats Real GDP development (%)* position (#) consumption*** 6.5% 59.8 6.0% 0.9% 1.6% 2.3% 3.2% 2.0% 2.4% 2.4% [1] 14 -6.5% 10.1% 51.6 4.4% 2.4% 2.4% 2.2% 5.2% 1.1% 2.7% 1.2% [2] 13 -6.8%
Slide 5: Strategy update towards 2023/24 aims at +150 mDKK EBIT
The update of the strategy towards 2023/24 aims at +150 mDKK EBIT by intensifying current strategic initiatives Overview of strategic focus towards 2023/24 Targets • Optimization of pricing across product and segments as 1 Value based pricing well as focusing on margin enhancing initiatives. Revenue
Slide 6: Flügger raises guidance and expects historic top result
Flügger raises guidance and expects historic top result. Business acquisitions as catalyst for future growth Guidance Annual Adjusted Guidance Ambition – 23/24 Report – 20/21 August 6th 2020 October 7th 2020 November 12th 2020 ~2 +2 +2 2.050-2.080 ~2.5 Revenue bnDKK bnDKK bnDKK mDKK bnDKK ~ 120 130-
Slide 7: Q1 20/21 Highlights
Q1 20/21 Highlights Revenue (mDKK) EBIT (mDKK) Own stores (#) 22% 87% -14% 629 124 274 514 236 66 Q1 19/20 Q1 20/21 Q1 19/20 Q1 20/21 Q1 19/20 Q1 20/21 Gross Margin (%) EBIT-margin (%) Franchise stores (#) +0.1 pp +6.9pp 3% 57.2 57.3 19.8 150 154 12.9 Q1 19/20 Q1 20/21 Q1 19/20 Q1 20/21 Q1 19/20 Q1
Slide 8: Q1 20/21 Highlights
Q1 20/21 Highlights Flügger Group Results Strong sales opening of the fiscal year mDKK Q1 20/21 Q1 19/20 Change Net sales 629 514 22% • COVID-19 driving up organic sales growth primarily from Organic growth 14% 4% 9pp consumers in Denmark and Sweden M&A 11% 0% 11pp Currency -3% 0% -2pp • Especially
Slide 9: Net sales increase driven by acquisition of Unicell
Net sales increase driven by acquisition of Unicell. Positive impact from COVID-19, but currency headwind in Norway and Poland Group sales development Net Sales Net Sales LTM Net sales mDKK mDKK mDKK 629 700 2.100 70 514 59 600 1.800 14 500 1.500 400 1.200 300 900 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 10: Increase in EBIT driven by strong sales performances
Increase in EBIT driven by strong sales performances, partly offset by increased sales and distribution costs due to high volume Group EBIT development EBIT, LTM EBIT %, EBIT mDKK LTM mDKK 150 150 9 124 4 4 100 100 67 50 50 66 0 0 -50 -50 -100 -100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 11: Segment 1 Own Stores & Resellers: Q1 sales growth of +9%
Segment 1 Own Stores & Resellers: Q1 sales growth of +9% primarily driven by positive impact from COVID-19 in Denmark and Sweden Sales development per geographical segment • Solid sales in both Denmark Organic Reported Revenue (mDKK) Q1 19/20 Currency M&A Q1 20/21 and Sweden driven by Growth Growth
Slide 12: Segment 2 DIY: Q1 sales more than doubled
Segment 2 DIY: Q1 sales more than doubled primarily driven by acquisition of Unicell Sales development per geographical segment • Solid sales in Unicell Nordic Organic Reported driven by increased Revenue (mDKK) Q1 19/20 Currency M&A Q1 20/21 Growth Growth consumer focus on DIY due Unicell Nordic 53
Slide 13: Increased earnings and stable stock price driving P/E-ratio down
Increased earnings and stable stock price driving P/E-ratio down Development in P/E and stock price P/E Stock price incl. reinvested dividends DKK DKK 100 500 80 400 60 300 40 200 20 100 0 0 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 Q1 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/1
Slide 14: Solid balance sheet as the foundation for possible acquisitions
Solid balance sheet as the foundation for possible acquisitions Financial solidity • Very solid balance sheet with equity ratio above 60% until NIBD** Equity ratio implementation of IFRS16 from Q1 2019/20, bringing the ratio mDKK % around 50% 100 100% • Since Q1 2019/20 NIBD impacted by leasing obli
Slide 15: Stock prices
Stock prices Facts about Flügger Group A/S (FLUG B) Development - Flügger & Competitors Flügger PPG Akzo Nobel Tikkurila Source:Nov 18 2020 - https://tools.morningstar.dk/dk/stockreport/default.aspx?tab=7&SecurityToken=0P0000A5R1%5D3%5D0%5DE0WWE%24%24ALL&Id=0P0000A5R1&ClientFund=0&CurrencyId=DKK Pag