Hayward Holdings, Inc. · NYSE:HAYW
Hayward — Q3 2021 Earnings Presentation
17 slides from Hayward's earnings presentation, Oct 27, 2021
Slide 1: Third Quarter 2021 Earnings
Third Quarter 2021 Earnings October 27, 2021 © 2021 Hayward Holdings, Inc. 1
Slide 2: Third Quarter 2021 Earnings Call
Third Quarter 2021 Earnings Call Kevin Holleran President and Chief Executive Officer Eifion Jones Senior Vice President and Chief Financial Officer Stuart Baker Vice President of Business Development NYSE: HAYW © 2021 Hayward Holdings, Inc. 2
Slide 3: Cautionary Statement
Cautionary Statement SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements and information relating to Hayward that are based on the beliefs of management as well as assumptions made by, and information currently available to management. These statem
Slide 4: Third Quarter 2021 Highlights
Third Quarter 2021 Highlights Net Sales of $351 million +56% YoY ✓ Higher volumes driven by new construction, pool remodels & upgrades ✓ Increased production YoY despite global supply and logistics constraints Net Sales growth ✓ Strong adoption of new products especially VS Pumps & Automation Gross
Slide 5: Updated 2021 Financial Outlook
Updated 2021 Financial Outlook ✓ Net Sales growth increased to 59% to 62% YoY Full Year ✓ Compared to prior range of 54% to 58% ✓ Adjusted EBITDA1 of $405 to $425 million; up 75% to 84% YoY ✓ Unchanged compared to prior range Outlook Reflects: ✓ Strong year-to-date results and increased visibility i
Slide 6: Hayward is at the Center of Outdoor Living
Hayward is at the Center of Outdoor Living Strong Secular Home Building Trends Lighting HVAC Growing Focus on Smart Homes 5 ✓~$23bn U.S. smart home market ✓~77 million smart homes by 2025 ✓~66% of homeowners use an app to control smart home devices ✓~60% penetration of smart home systems in 2025, gr
Slide 7: US Pool Market SmartPad™ Conversion
US Pool Market SmartPad™ Conversion Key Conversion Opportunities Technology Rich Pool - Legacy Pool SmartPad™ Aftermarket New Construction Digital ~28% ~65% Conversion Controls No Controls Variable Speed Pumps, Cartridge Filters, Gas Heater & Heat Pump, Salt Chlorinator, Single Speed Pump, Filter, W
Slide 8: Sustainability of Growth
Sustainability of Growth Macroeconomics New Pool Construction • Strong long-term secular trends continue • Deurbanization • Migration to sunbelt • Millennial buying • Key economic indicators remain positive • Employment (ages 25 to 54) • US Real Average Earnings • Private Fixed Residential Investmen
Slide 9: Q3 Financial Overview
Q3 Financial Overview Net Sales ($mm) Adjusted EBITDA ($mm) Margin (% of net sales) Strong Sales Growth Sustained demand across all end markets, increasing output to drive higher sales growth 98 351 +56% 28.0% YoY +61% Ongoing Margin Expansion YoY 224 87 bps in AEBITDA margin driven by higher net sa
Slide 10: North America Q3 Segment Overview
North America Q3 Segment Overview $298 million ✓ Higher demand and volume for ESG and automated products Net Sales +62.1% YoY ✓ Increased production levels to meet sustained demand 47.5% ✓ Inflationary environment and supply chain disruptions lead to higher costs Gross Profit Margin -183 bps YoY ✓ M
Slide 11: Europe & ROW Q3 Segment Overview
Europe & ROW Q3 Segment Overview ✓ Sustained market demand in Europe recovery in Export markets $52 million Net Sales +29.4% YoY ✓ Significant volume growth on top of strong prior year growth ✓ Favorable product mix and continued price realization and production 39.7% Gross Profit Margin leverage +1
Slide 12: Core Values Drive Commitment to ESG
Core Values Drive Commitment to ESG Recent Developments ✓ October Launch of AquaRite S3 – Low Salt Chlorine Generator ✓ Completed Global Employee Engagement Review ✓ Platinum Sponsorship of “Step Into Swim” ▪ Charity providing swimming lessons to underprivileged Core Values © 2021 Hayward Holdings,
Slide 13: Hayward’s Value Proposition
Hayward’s Value Proposition Pure Play Market Leader in Growing Outdoor Living Sector Competitive Moat – Full Product Line, Channel Presence, Brand and Large Installed Base Leaders in the SmartPad™ Conversion – IoT-Connected and Environmentally Conscious Products Strategic Vision to Grow the Addressa
Slide 14: Appendix
Appendix Non-GAAP Reconciliations © 2021 Hayward Holdings, Inc. 14
Slide 15: Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation © 2021 Hayward Holdings, Inc. 15
Slide 16: Adjusted Segment Income Reconciliation
Adjusted Segment Income Reconciliation © 2021 Hayward Holdings, Inc. 16
Slide 17: Last Twelve Months Adjusted EBITDA Reconciliation
Last Twelve Months Adjusted EBITDA Reconciliation © 2021 Hayward Holdings, Inc. 17