Fluidra, S.a. · BME:FDR
Fluidra — Q3 2023 Earnings Presentation
22 slides from Fluidra's earnings presentation, Oct 26, 2023
Slide 1: Q3 2023 Results
Q3 2023 RESULTS October 26th 2023
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 in accordance with international financial re
Slide 3: Today's speakers
Today’s speakers Eloi Planes Bruce Brooks Xavier Tintoré Executive Chairman CEO CFTO 3
Slide 4: Key messages
Key messages 1. Good performance in Q3, within expectations in a challenging trading environment Correction of inventory in the channel during the quarter as expected and broadly behind us Resilient aftermarket demand Higher underlying gross margin YTD, with Q3 geographic and mix effects Con
Slide 5: Quarter performance within expectations
Quarter performance within expectations Const. FX & • Sales within expectations, with lower YTD financial highlights €M 2022 2023 Evol. 23/22 volumes and unfavorable FX more than Perimeter offsetting higher prices Sales 1,967 1,623 (17.5%) (16.2%) • EBITDA and EBITA reflect lower sales, but also 120
Slide 6: Simplification Program to enhance margins on track
Simplification Program to enhance margins on track Simplification tracker Initiatives implemented / >350 being implemented Annual run rate by the end of 2025 of initiatives being c.65 implemented (€M) % of full program’s target 65% Gross margin improvement Fixed cost savings 2023 impact of initiativ
Slide 7: Innovation leader, ongoing enhancing our offering
Innovation leader, ongoing enhancing our offering Jandy’s Infinite WaterColors Fluidra Pool new app IQBridges and smart plugs Nicheless LED lights • First-in-industry features: infinite • Launch of new app in EMEA, Fluidra • Innovative IoT devices that help color options with custom palette Pool: be
Slide 8: Higher prices partly offsetting lower volumes and FX
Higher prices partly offsetting lower volumes and FX YoY growth (%) Const. FX & Perimeter Sales by geography Q3 2023 YTD 2023 Southern Europe (5.9%) (12.4%) Rest of Europe (10.7%) (28.2%) North America (18.4%) (19.6%) Rest of the World (0.4%) (0.4%) Total (11.2%) (16.2%) (2%) 1% 5% (20%) (18%) Volum
Slide 9: EBITDA margin resilience despite top line decline
EBITDA margin resilience despite top line decline YTD results €M 2022 % Sales 2023 % Sales Evol. • Sales driven by lower volumes, with 23/22 channel inventory correction and softer new build demand coupled with Sales 1,967 100% 1,623 100% (17.5%) unfavorable FX in Q3 Gross margin 1,007 51.2% 851 52.
Slide 10: Good cash flow generation
Good cash flow generation Cash flow (abridged) and net debt YTD €M 2022 2023 € Evol. 23/22 • Operating cash flow improved year- Reported EBITDA 437 328 (109) on-year due to reduction of operating Net interest expense paid (38) (52) (15) working capital levels, which more Corporate income tax paid (7
Slide 11: Summary
Summary 1. Results within expectations for the year, in a normalizing and challenging market. Channel de- stocking broadly behind us 2. Focused on cash generation. Good progress in the reduction of both net working capital and net debt levels. Solid balance sheet providing flexibility in the current
Slide 12: Appendix
Appendix 12
Slide 13: Sales by geography
Sales by geography Evol. Constant Const. FX & Q3 €M 2022 % Sales 2023 % Sales Const. FX 23/22 perimeter Perimeter Southern Europe 119 23% 112 26% (5.9%) (5.9%) (5.9%) (5.9%) Rest of Europe 66 13% 62 14% (6.9%) (4.9%) (12.6%) (10.7%) North America 240 46% 179 41% (25.7%) (18.4%) (25.7%) (18.4%) Rest
Slide 14: Sales by business unit
Sales by business unit 2022 % Evol. Const. FX & Q3 €M % Sales 2023 (restated) Sales 23/22 Perimeter Pool & Wellness 510 98% 428 98% (16.1%) (11.1%) Residential 366 70% 299 68% (18.4%) (13.0%) Commercial 42 8% 43 10% 1.9% 8.1% Residential Pool Water Treatment 76 14% 70 16% (7.8%) (4.4%) Fluid Handlin
Slide 15: Interim income statement as of 30 September (abridged)
Interim income statement as of 30 September (abridged) YTD €M 2022 % Sales 2023 % Sales Evol. 23/22 Sales 1,967 100% 1,623 100% (17.5%) Reported gross margin 1,005 51.1% 850 52.4% (15.4%) Opex 568 28.9% 523 32.2% (7.9%) Reported EBITDA 437 22.2% 328 20.2% (25.0%) Depreciation and Amortization 115 5.
Slide 16: Reconciliation of PBT to EBITDA
Reconciliation of PBT to EBITDA YTD €M 2022 2023 Evol. 23/22 Profit Before Tax (PBT) 251 151 (39.8%) Net financial result 71 60 (15.9%) Depreciation and Amortization 115 117 1.4% Reported EBITDA 437 328 (25.0%) Restructuring, M&A and integration expenses 8 31 285.6% Stock based compensation 11 8 (28
Slide 17: Reconciliation of net profit to cash net profit and cash EPS
Reconciliation of net profit to cash net profit and cash EPS YTD €M 2022 2023 Evol. 23/22 Net profit from continuing operations 179 108 (40.0%) Restructuring, M&A and integration expenses 8 31 285.6% Stock based compensation 11 8 (28.8%) Net financial result 71 60 (15.9%) Cash interest paid (38) (52
Slide 18: Net working capital
Net working capital % LTM % LTM September €M 2022 2023 Evol. 23/22 sales sales Inventory 701 28.6% 498 24.3% (29.0%) Accounts receivable 306 12.5% 309 15.1% 1.0% Accounts payable 358 14.6% 316 15.5% (11.7%) Operating net working capital 649 26.5% 490 24.0% (24.5%) Dividends, earn-outs & others 85 3.
Slide 19: Interim financial position (abridged)
Interim financial position (abridged) Assets 09/2022 09/2023 Liabilities 09/2022 09/2023 PPE & rights of use 361 366 Share capital 196 192 Goodwill 1,384 1,339 Share premium 1,149 1,149 Other intangible assets 1,037 906 Retained earnings 441 207 Non-current financial assets 63 60 Interim dividends -
Slide 20: Alternative Performance Measures (1/2)
Alternative Performance Measures (1/2) Fluidra’s financial statements are prepared according to IFRS and other applicable regulation. The financial information presented in this document also includes Alternative Performance Measures (‘APMs’) prepared according to the group’s reporting model. For fu
Slide 21: Alternative Performance Measures (2/2)
Alternative Performance Measures (2/2) ● 'EBITA': is a metric that reflects the performance of the business and is defined as 'EBITDA' less the portion of depreciation and amortization unrelated to acquisitions or PPA allocation ● ‘NCI’: means ‘Profit/loss attributable to non-controlling interests’
Slide 22: Thanks for your attention
Thanks for your attention +34 93 724 39 00 Investor_relations@fluidra.com Avda. Alcalde Barnils 69 - 08174 Sant Cugat (Barcelona) www.fluidra.com