Slide 1: Harvia Q2 2024: Strong profitability, significant sales growth
Harvia Plc Half-year financial review | January−June 2024 Harvia PLC Interim Report | January-June 2024 HARVIA Q2 2024: Strong profitability SIGNIFICANT SALES GROWTH― Good growth outside Europe AND STRONG PROFITABILITY Matias Järnefelt, CEO | Ari Vesterinen, CFO | 8 August 2024 Matias Järnefelt, CEO
Slide 2: Welcome! Agenda for today
Welcome! Agenda for today Matias Järnefelt, CEO • Highlights of Q2/2024 business and financial performance • Strategy implementation and ThermaSol acquisition Ari Vesterinen, CFO • Financial performance details in Q2/2024 2 Copyright © 2024 Harvia Plc
Slide 3: Q2 2024 highlights
Q2 2024 highlights Revenue growth in all sales regions • Revenue increased by 20.7% to EUR 43.2 million • Growth in all sales regions; North America and APAC & MEA strong while market conditions and sales performance gradually improving in Continental Europe and Northern Europe • Revenue growth part
Slide 4: Q2 2024 key figures
Q2 2024 key figures Revenue Adjusted operating profit Operating free cash flow 43.2 (35.8) 9.4 (8.0) 5.5(9.1) EUR million EUR million EUR million +20.7% YoY growth 21.8% (22.3%) 50.0% (96.1%) of net sales cash conversion Organic revenue growth: 20.1% Growth at comparable exchange rates: 20.3% 4 Copy
Slide 5: H1 2024 key figures
H1 2024 key figures Revenue Adjusted operating profit Operating free cash flow 85.5 (77.2) 19.5(17.3) 16.6 (20.8) EUR million EUR million EUR million +10.9% YoY growth 22.8% (22.4%) 73.2% (102.2%) of net sales cash conversion Organic revenue growth: 10.4% Growth at comparable exchange rates: 10.8% 5
Slide 6: Q2 2024: Growth in all regions, especially outside Europe
Q2 2024: Growth in all regions, especially outside Europe Harvia has adjusted its revenue reporting. Starting from the first quarter of 2024, Harvia reports its revenue as presented below. Revenue by sales region 4–6/2023 vs 4–6/2024 • Total revenue in Q2/2024 grew by EUR million 20.7% to EUR 43.2 m
Slide 7: Northern Europe: Growth after two years of decline
Northern Europe: Growth after two years of decline Q2 revenue in Northern Europe, 2021−2024 • Revenue in Q2 grew by 4.2% to EUR 11.6 million • First quarter with revenue growth in the region for two years EUR million • Market conditions in the region have been difficult for a long 18 time, but some
Slide 8: Continental Europe: Gradually improving market conditions and revenue growth
Continental Europe: Gradually improving market conditions and revenue growth Q2 revenue in Continental Europe, 2021−2024 • Revenue in Q2 grew by 5.9% to EUR 12.7 million • Market conditions have been gradually improving since late EUR million 2023, development continued during the quarter 22 • Stron
Slide 9: North America: High market demand driving revenue in Q2 2024
North America: High market demand driving revenue in Q2 2024 Q2 revenue in North America, 2021−2024 • Revenue in Q2 grew by 42.8% to EUR 14.7 million, strong growth in both full solutions and equipment sales EUR • Sales growth was driven by continuing strong market million conditions, some support f
Slide 10: APAC & MEA: Rapid growth during the quarter
APAC & MEA: Rapid growth during the quarter Q2 revenue in APAC & MEA, 2021−2024 • Revenue in Q2 grew by 78.0% to EUR 4.2 million EUR • Revenue growth reflects the good and systematic work done, million but was also supported by the timing of some major deliveries 8 • Region’s share of Harvia’s total
Slide 11: Products and solutions for all sauna types and cultures
Harvia offers products and solutions for all sauna types and cultures, for both private and professional customers Traditional sauna Infrared Steam 11 Copyright © 2024 Harvia Plc
Slide 12: Heating equipment and saunas and Scandinavian hot tubs are largest product groups
Heating equipment and saunas and Scandinavian hot tubs are Harvia’s largest reported product groups Harvia has adjusted its revenue reporting. Starting from the first quarter of 2024, Harvia reports its revenue as presented below. Share of Group’s total revenue in Q2 2024 Heating Saunas and Steam Ac
Slide 13: Q2 2024: Growth in most product groups
Q2 2024: Growth in most product groups Revenue by product group 4–6/2023 vs 4–6/2024 • Majority of reported product groups EUR million growing and contributing to overall 45.0 revenue growth +1.0 -0.3 44.0 (+53.5%) (-10.4%) • Strong growth in heating equipment is +1.7 +0.2 43.2 supported by both imp
Slide 14: Harvia's strategic role: Shaping the global sauna market
Harvia’s strategic role: Shaping the global sauna market so that everyone has a reason to experience sauna Four strategic focus areas Delivering Winning Leading in strategically important the full sauna experience in key channels markets Best-in-class operations & great people 14 Copyright © 2024 Ha
Slide 15: Executing strategic focus areas in Q2 2024
Executing strategic focus areas in Q2 2024 Delivering Winning Leading the full sauna experience in strategically important markets in key channels • Growth across portfolio, in both • Strong growth in key markets in North • Strengthening distribution and solutions and equipment as well as in America
Slide 16: Harvia acquired U.S. steam solutions provider ThermaSol
After the reporting period, Harvia acquired the U.S. high-end steam solutions provider ThermaSol Overview • Harvia signed an agreement to acquire ThermaSol on 22 July 2024. The deal was closed in July. • The acquisition complements Harvia’s offering in the attractive steam segment and supports growt
Slide 17: ThermaSol in brief
ThermaSol in brief Case example of offering • Family-owned manufacturer of steam solutions operating in the U.S. • Established in 1958, head office as well as design and assembly facilities in Round Rock, Texas (Austin area) • Net sales USD 14.4 million in 2023 • Approx. 40 employees • Products incl
Slide 18: Financials
Financials Ari Vesterinen, CFO 18 Copyright © 2024 Harvia Plc
Slide 19: Revenue has grown for three quarters, adjusted operating profit over 20%
Harvia’s revenue has grown for the past three quarters, adjusted operating profit continuously over 20% Revenue and adjusted operating profit EUR million 50 • Improving top line development: 45 42.4 43.2 Year-on-year revenue growth in 41.4 39.4 each of the last three quarters. 40 37.4 38.1 35.8 • Du
Slide 20: Harvia's key figures in the review period
Harvia’s key figures in the review period Million EUR 4-6/2024 4-6/2023 Change 1-6/2024 1-6/2023 Change 1-12/2023 Revenue 43.2 35.8 20.7% 85.5 77.2 10.9% 150.5 Adjusted EBITDA* 11.0 9.5 15.9% 22.7 20.4 11.7% 39.9 % of revenue 25.6% 26.6% 26.6% 26.4% 26.5% Adjusted operating profit* 9.4 8.0 18.2% 19.
Slide 21: Operating free cash flow and cash conversion affected by inventories
Operating free cash flow and cash conversion affected by increasing inventories, exceptionally high for many previous quarters Operating free cash flow and cash conversion* EUR million 16 15.1 15.5 160% • In the review period, the company’s operating free cash flow was EUR 5.5 million 14 140% (9.1)
Slide 22: Net debt on a low level
Net debt on a low level Net debt and leverage EUR million 70 • At the end of June 2024, the company’s net debt amounted to EUR 60.1 60 3 32.6 million (45.8). Loans from credit 54.5 institutions were EUR 75.4 million 50 (75.4), and lease liabilities were EUR 45.8 45.8 2.6 million (2.1). Cash and cash
Slide 23: No significant developments in net financial items
No significant developments in net financial items beyond typical fluctuation Net financial items EUR million 1.2 1.06 • Fluctuation in the net financial items 1.00 is due to changes in the fair value of 0.91 0.87 0.77 0.70 Harvia’s interest rate swap. Changes in 0.64 0.7 the fair value of the swap
Slide 24: Add-on investments during Q2 after large investments in North America
Add-on investments during Q2 after large investments in North America in Q1 Investments in tangible and intangible assets EUR million 2.5 • During the review period, Harvia 2.2 made add-on investments in its production facilities, for example, 2.0 upgrading its wood-burning heater production line in
Slide 25: Harvia's long-term financial targets
Harvia’s long-term financial targets GROW TH P R O F I TA B I L I T Y LEVERAGE 10% >20% <2.5x Average annual Adjusted operating Net debt/adjusted revenue growth profit margin1 EBITDA2 Harvia does not publish a short-term outlook. Harvia’s dividend policy is to pay a regularly increasing dividend wit
Slide 26: Copyright © 2024 Harvia Plc
26 Copyright © 2024 Harvia Plc
Slide 27: Disclaimer
Disclaimer This material contains, or may be deemed to contain, “forward-looking statements”. These statements relate to future events or Harvia Plc’s future financial performance, for example, market growth and developments, Harvia Plc’s strategic plans, potential growth, planned operational develo
Slide 28: Appendix
Appendix 28 Copyright © 2024 Harvia Plc
Slide 29: H1 2024: Strong revenue growth outside Europe
H1 2024: Strong revenue growth outside Europe driving total revenue Harvia has adjusted its revenue reporting. Starting from the first quarter of 2024, Harvia reports its revenue as presented below. Revenue by sales region 1–6/2023 vs 1–6/2024 • Total revenue grew by 10.9% to EUR EUR million 85.5 mi
Slide 30: H1 2024: Revenue growth in majority of product groups
H1 2024: Revenue growth in majority of product groups Harvia has adjusted its revenue reporting. Starting from the first quarter of 2024, Harvia reports its revenue as presented below. Revenue by product group 1–6/2023 vs 1–6/2024 • During H1, revenue grew in all product EUR million groups except sp
Slide 31: Harvia's shareholders (30 June 2024)
Harvia’s shareholders (30 June 2024) Distribution by segment Number of shareholders 9.7% (5.3%) 0.02% (0.05%) 50,000 46,011 43,945 42,883 45,000 41,328 40,000 37,830 33,879 34,808 19.1% 35,000 (20.8%) 30,000 48.0% 25,000 (43.0%) 20,000 15,000 13,551 10,000 5,249 5,000 3,248 0 23.2% 31 Dec 31 Dec 31
Slide 32: Copyright © 2024 Harvia Plc
32 Copyright © 2024 Harvia Plc