Fluidra, S.a. · BME:FDR
Fluidra — Non-Deal Roadshow (November 2015)
43 slides from Fluidra's roadshow presentation, November 2015
Slide 1: Making Water Perform
September 2015 MAKING WATER PERFORM FLUIDRA ® @ee-
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: Table of Contents
Table of Contents 1. Fluidra at a glance 2. Shareholder Structure 3. Business Model 4. Financial Performance 5. Strategy and Investment Highlights 6. Annex 3
Slide 4: 1. Fluidra at a glance
1. Fluidra at a glance 4
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, Fluid Handling, Water Treatment Business and Irrigation Vertically integrated for Pool, Water
Slide 6: Fluidra at a Glance
FLUIDRA ° Fluidra at a Glance Parti [ Ce Cai etiin Se ASTRAL POOL A @ idrania | TCEPEX
Slide 7: Summary Financials
Summary Financials Improving efficiency • Centralization of distribution and commercial platforms, as well as manufacturing facilities • Consolidation of manufacturing plants Improvement in top line performance and EBITDA uplift Sales (€m) EBITDA (€m) & EBITDA Margin 82 70 72 653 624 629 65 66 581 5
Slide 8: Fluidra's evolution – Geographical overview
Fluidra’s evolution – Geographical overview 350 300 250 200 150 2008 2014 100 50 0 Spain Rest of Asia & North Africa, ME & Europe Australia America RoW 8
Slide 9: Fluidra's evolution – Product overview
Fluidra’s evolution – Product overview 60% 50% 40% 30% 2008 20% 2014 10% 0% Minor Repair & Retail Replacement & Pool Service Refurbishment Construction 9
Slide 10: 2. Shareholder Structure
2. Shareholder Structure FLUIDRA °
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% 11
Slide 12: 3. Business Model
3. Business Model 12
Slide 13: Fluidra in the Business Value Chain: an integrated model
Fluidra in the Business Value Chain: an integrated model Manufacturing & Logistics & R+D+i Distributor / B2B Pool, Water Treatment, Irrigation and Fluid Handling Local Large Distributors / Retailers & Installers (B2C; Mass Market) Builders Retailers Installers Residential / Private End-User Commerci
Slide 14: Overview of Divisions and Business Units
Overview of Divisions and Business Units Divisions NORTH ASIA & EUROPE AMERICA & AUSTRALIA RoW FY 2014 Revenues €593.8M €400M €122M €72M (67%) (21%) (12%) €410M Design, production and distribution of all components for Pool – Wellness (69%) residential or commercial pools and wellness centers €61M
Slide 15: Distribution Network & Manufacturing Hubs
Distribution Network & Manufacturing Hubs Rest of the World 12% Spain 20% Asia & Australia 19% East Europe 5% North Europe South Europe 13% 31% Sales by geographical area 80% international sales Factories 128 branches in 44 countries: Alemania, Australia, Austria, Bélgica, Brasil, Bulgaria, Colombia
Slide 16: Fluidra's Positioning in the Water Business
Fluidra’s Positioning in the Water Business 16
Slide 17: 4. Financial Performance
4. Financial Performance FLUIDRA @ee-
Slide 18: 3Q2015 Results – Summary
3Q2015 Results – Summary Main Magnitudes Like-for-like Sales grew by 8.7%, helped by a 3Q2014 3Q2015 Evol. successful season in Europe. €M Sales 477,9 509,0 6,5% Good Ebitda and Net Profit performance, thanks sales volume. Adjusted for divestitures, Ebitda EBITDA 63,3 65,8 3,9% grew by 13.5%. Adjust
Slide 19: 3Q2015 Results – Consolidated Profit and Loss Account
3Q2015 Results – Consolidated Profit and Loss Account 3Q2014 3Q2015 €M % sales €M % sales Evol.15/14 Sales 477,9 100,0% 509,0 100,0% 6,5% Gross Margin 242,8 50,8% 258,9 50,9% 6,6% Opex before Dep.& Amort. 172,1 36,0% 188,3 37,0% 9,5% Provisions for bad debt 7,4 1,5% 4,8 0,9% -35,7% EBITDA 63,3 13,3%
Slide 20: 3Q2015 Results – Sales Performance by Geographical Area
3Q2015 Results – Sales Performance by Geographical Area Fluidra Sales by Geographical Area Evolution 3Q2014 % 3Q2015 % €M 15/14 Spain 107,5 22,5% 121,1 23,8% 12,6% South Europe - Rest 134,6 28,2% 125,8 24,7% -6,6% Central & Northern Europe 76,2 15,9% 80,7 15,8% 5,9% Eastern Europe 25,3 5,3% 25,5 5,0
Slide 21: 3Q2015 Results – Sales Performance by Business Unit
3Q2015 Results – Sales Performance by Business Unit Sales by business units 3Q2014 % of Total 3Q2015 % of Total Evolution % €M Pool 325,9 68,2% 346,3 68,0% 6,3% - Private 276,5 57,9% 287,1 56,4% 3,8% - Commercial 49,4 10,3% 59,1 11,6% 19,8% Water Treatment 76,4 16,0% 95,1 18,7% 24,5% Irrigation 24,3
Slide 22: 3Q2015 Results – Net Working Capital
3Q2015 Results – Net Working Capital ir a la pestaña en inglés!!! 233,6(€m) Net Working Capital January - September 228,8 216,5 Evol. 2014 2015 15/14 €M 203,4 Inventory 143,6 153,4 6,9% Accounts Receivable 176,3 172,2 -2,4% Accounts Payable 103,4 122,2 18,1% Net Working Capital 216,5 203,4 -6,0% 201
Slide 23: 3Q2015 Results – Net Financial Debt and FCF
3Q2015 Results – Net Financial Debt and FCF ir a la pestaña en inglés!!! January - September 2014 2015 Evol. 15/14 €M 233,6 Net income 14,4 16,2 1,9 228,8 Net Financial Debt (€m) Depreciation (+) 27,5 27,4 -0,1 181,0 181,9 Increase (-) / Decrease (+) NWC -34,8 -26,6 8,2 Capex (organic) -12,2 -18,3 -
Slide 24: 3Q2015 Results – Conclusions
3Q2015 Results – Conclusions Performance over 3Q2015 was in line with our forecast: Growth in sales in practically all markets. Excellent growth in Spain. Good evolution of margins. Recap of our forecast for 2015: Sales between €625M and €645M; Ebitda between €72M and €76M and NFD/Ebitda ratio aroun
Slide 25: 5. Strategy and Investments Highlights
5.Strategy and Investments Highlights 25
Slide 26: Strategy
Strategy TOMORROW Worldwide Water company serving our customers TODAY An international pool company with Europe as a main market 26
Slide 27: Strategy guidelines
Strategy guidelines Internationalization • USA, CSA & Africa • Channels and focus on internet channel Residential evolution Pool • Strategic product categories & bundling Market Penetration offers (beyond crosselling) • Product & Service Innovation • Pricing Strategy • Technical Support & Service St
Slide 28: Strategy guidelines
Strategy guidelines Leverage distribution network and improve competitive position in cost Other BU and branding Build Fluidra of the XXI century: 1. Lean manufacturing strategy: value, cost, quality 2. Global logistics & warehousing strategy 3. Knowledge strategy: training, technical support & afte
Slide 29: Contact
Contact: Avda. Francesc Macià, 60, planta 20 08208 Sabadell (Barcelona) Tel: +34 937 243 900 e-mail: investor_relations@fluidra.com 29
Slide 30: 6. Annex
FLUIDRA @ee-
Slide 31: International Leadership
International Leadership Fluidra signs (July 2015) an agreement to acquire a 72% stake in WaterLinx, a company that manufactures pool and water treatment components. WaterLinx is South Africa's market leader, with a 32% market share and has a wide range of products and operates across all sales chan
Slide 32: International Leadership
International Leadership WaterLinx proforma sales for 2015 are €32M and its EBITDA is €4.3M. Fluidra has valued the company at €13M, plus a debt of €11M, so the EV is €24M. Fluidra currently has bought a stake of 72% in the company. The remaining 28% is still in the hands of its founding partners an
Slide 33: International Leadership
International Leadership TURNOVER INDUSTRIAL COMERCIAL +32 2 INJECTION MOULDING PLANTS ASSEMBLY PLANT 10 CHEMICAL MIXING PLANT MILLIONS BRANCHES 33
Slide 34: International Leadership
International Leadership • Fluidra acquired VEICO (February 2013), company that makes accessories for pools in the Brazilian state of Santa Caterina. • Veico has a turnover of more than Euro 3M and industrial facilities of 1,500 square meters. Veico - • Veico gives us manufacturing capabilities in a
Slide 35: International Leadership
International Leadership Presence of Fluidra in Latam Mexico • Latam Division, Fluidra has decided to extend his presence in this area, Colombia with the aim to promote Latam activities in the Latin Brazil Division America market. This new market will bring capability of growth and development on th
Slide 36: Product Innovation
Product Innovation • AstralPool MAC is the only compact, modular device in the market that has all the components needed for the physical and chemical control of pool water in the most efficient way possible. • Its smart software enables all settings to be adjusted from a touchscreen and users thus
Slide 37: Product Innovation
Product Innovation • Launch of high range products "Viron" for U.S. and Australian residential markets, consisting of pumps, cartridge filters, control system with touchpad's, air conditioning, etc.. And characterized by a commitment to sustainability, energy efficiency and cutting edge technology,
Slide 38: Leverage Pool Distribution Network
Leverage Pool Distribution Network Distribution: New branch format Old Model: branch with relatively large storage surface and just want point for customer attention New Model: Self service format, with different areas for training, show room and exhibits Promotes cross-selling, becoming a one-stop
Slide 39: Become a player in Industrial FH in Asia
Become a player in Industrial FH in Asia Fluidra • Fluidra closed the signature of a joint venture in China, Fluidra Youli Fluid Systems (Wenzhou), dedicated to fluid handling in the Asian market and Youli an initial focus in the Chinese market •Industrial Fluid Handling - China: fragmented market o
Slide 40: Become a player in Industrial FH in Asia
Become a player in Industrial FH in Asia •Constitution of the Joint Venture (October 2012): Fluidra contributes Euro 4,8M and Youli contributes the manufacturing facility. Fluidra •There are several earn out payments conditional on results up to a maximum limit of Euro 14,9M Youli •2012: Euro 2,1M O
Slide 41: Operational Excellence
Operational Excellence • Asia Division, Fluidra has created this new division to promote Asia activities in the Asian market. This new structure will bring Division together the operations on the continent. Presence of Fluidra in Asia 41
Slide 42: Improve Margins and Cash Flow Generation
Improve Margins and Cash Flow Generation Lean Management Program: Key Principles Commitment Potential to Improve Commitment from senior and middle Aggressive optimization objectives management, as well as employees “Sky is the limit” in terms of potential to Pragmatic approach: focus on “real-life”
Slide 43: Investment Highlights
Investment Highlights International leadership High Quality Recurrent revenues Business Clear road map Financial strength and proven flexibility to increase shareholder’s value Consolidator in a fragmented market Attractive Industry Growth markets 43