Arbonia Ag · SIX:ARBN
Arbonia — H1 2024 Earnings Presentation
31 slides from Arbonia's earnings presentation, Aug 27, 2024
Slide 1: H1 results 2024
H1 results 2024 Alexander von Witzleben (Executive Chairman), Daniel Wüest (Group CFO), Claudius Moor (CEO Doors)
Slide 2: Overview HY 2024
Overview HY 2024 Continuing operations Key metrics (in CHF M) Net revenues Group EBITDA1 Group EBITDA1 Doors segment Net Debt EBITDA margin EBITDA margin Leverage Ratio 6.3% 7.6% 8.0% 9.7% 2.3x 2.8x 2.8x -0.5% 350 336 280 278 +20.2% +20.3% 300 241 250 209 21.2 25.5 200 17.6 21.2 150 100 50 H1 2023 H
Slide 3: Agenda
Agenda 1. Sale of Climate Division 2. Group results 3. Business Segment Doors Q&A H1 results 2024 | 27 August 2024 3
Slide 4: Timing and subsequent use of funds
Timing and subsequent use of funds Extraordinary general meeting after closing to decide on the repayment of funds closing AGM Arbonia EGM Arbonia start share buyback H1 24 results Resolutions: ordinary dividend FY23 of CHF 0.30 nominal value repayment of CHF 4.00 share buyback of 10% 27.02.20
Slide 5: Intended use of proceeds
Intended use of proceeds Return of up to CHF 400 M to shareholders over various stages EUR 760 EUR 100 EUR 200 CHF ≈ 400 21 277 Purchase price/ Balance deductions 1 Partial repayment Allocation to Interim Ord. dividend of Nominal value Buyback of Buffer Non-operating real cash / debt enterprise of d
Slide 6: Agenda
Agenda 1. Sale of Climate Division 2. Group results 3. Business Segment Doors Q&A H1 results 2024 | 27 August 2024 6
Slide 7: Income Statement
Income Statement As reported, continuing operations (excl. Climate) In CHF M H1 2024 in % H1 2023 in % One-time effects •I Other operating income: Net Revenues 278.2 I 100.0 279.7 100.0 CHF 28.8 M sale of real estate • Personnel expenses: II Cost of material and goods -113.1 -40.7 -118.6 -42.4 CHF 1
Slide 8: Income Statement
Income Statement Without one-time effects, continuing operations (excl. Climate) In CHF M H1 2024 in % H1 2023 in % I Revenues Net revenues almost flat due to 1.5 months revenue Net Revenues 278.2 I 100.0 279.7 100.0 contribution of Dimoldura. Adjusted for FX and M&A down -5.4% Cost of material and
Slide 9: Overview H1 2024 Performance by Segment
Overview H1 2024 Performance by Segment, continuing operations In CHF M1,2 -0.8% -6.2% 295 276 266 264 Net Revenues +3.9% 14 15 0 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 +2.6% +20.3% 27.6 28.3 25.5 21.2 EBITDA 8.0% 9.7% 9.4% 10.3% (incl. margin) -19.7% -3.6 -4.4 H1 2023 H1 2024 H1 2023 H1 20
Slide 10: EBITDA Bridge H1 2023 – H1 2024
EBITDA Bridge H1 2023 – H1 2024 Arbonia Group in CHF M1, continuing operations +20.2% 2.3 -0.3 21.2 +3.6 M 1.1 -1.4 2.2 17.6 -3.8 -1.6 1.5 8.9 -5.5 EBITDA SPI SVI MCC SI PI ECC Residual FX-Effect Dimoldura Others EBITDA M06 2023 M06 2024 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) Explanations: 1) SPI - Sales-Pr
Slide 11: Net debt as of June 2024
Net debt as of June 2024 In CHF M1, including discontinued operations (Climate) 336 9.9x 34 9.0x I Net debt 8.1x 7.2x • Increase of CHF 127 M mainly due to acquisition of 241 6.3x Dimoldura (CHF 115 M), sale of real estate (CHF -34 M), 25 5.4x slightly negative cash flow from operations (CHF 7 M) 20
Slide 12: Net debt development
Net debt development In CHF M, including discontinued operations (Climate) Net Debt (12 2023) 209 Capex 31 Acquisition Dimoldura 87 Net Debt acquired from Dimoldura 19 IFRS 16 acquired from Dimoldura 9 New lease liabilities 4 Sale Zelgstrasse, Arbon 34 CF from operating activities 7 FX-Impact 4 Net
Slide 13: Cash flow statement
Cash flow statement In CHF M, including discontinued operations (Climate) I Cash flow from operating activities • YoY cash flow from operating activities decreased by 150 -18.5 M CHF 19 M to CHF -7 M due to higher NWC… 100 • …mainly caused by heat pumps stock building… 50 101.0 • …and higher interes
Slide 14: Agenda
Agenda 1. Sale of Climate Division 2. Group results 3. Business Segment Doors Q&A H1 results 2024 | 27 August 2024 14
Slide 15: Forming the European Leader for Doors
Forming the European Leader for Doors Development of Arbonia Doors Business Segment Acquisition Integration of Capacity Beginning Integration of SAP Go Live Interwand Dimoldura & Mile- of Looser Prüm, Garant expansion of ERP Glass Solutions Invado; Joro acquisition Lignis (Closing and Invado started
Slide 16: Business Segment Doors pro-forma H1 2024 incl. Dimoldura & Lignis
Business Segment Doors pro-forma H1 2024 incl. Dimoldura & Lignis Illustrative Income Statement, without one-time effects In CHF M Doors H1 20241 Pro-forma H1 20242 Net Revenues 263.6 315.2 EBITDA 25.5 9.7% 33.1 10.5% EBITA 10.9 4.1% 17.1 5.4% EBIT 4.5 1.7% 8.4 2.7% With closing on January 1st Dimol
Slide 17: Market leadership in Continental Europe
Market leadership in Continental Europe Production footprint of Arbonia1 Market presence of Arbonia Standard doors Special doors Glass doors Core markets Weinsheim (DE) Roggwil (CH) Plattling (DE) Export markets 1.3 M doors/year 100k doors/year 600k pcs/year Production sites Ichtershausen (DE) Koryc
Slide 18: M&A: Dimoldura and Lignis
M&A: Dimoldura and Lignis Addressing the dependency on Germany, while capturing growth opportunities Core markets Arbonia Doors Core markets Dimoldura/Lignis Combined core markets Revenues Arbonia Doors 2023 Revenues Dimoldura/Lignis 2023 Combined revenues 2023 (pro-forma) Rest Rest NL/BE Rest CZ CE
Slide 19: Markets in H1 2024 in review
Markets in H1 2024 in review Overview core markets1 D-A-CH2 Central-Eastern Europe3 Iberian Peninsula4 486 494 427 133 454 127 384 415 371 399 55.4 55.6 349 119 55.1 342 397 376 319 323 310 306 111 109 107 318 319 103 344 284 281 306 298 302 307 297 53.7 54.1 54.5 54.8 256 240 32.5 32.6 32.7 32.8 32
Slide 20: Strategy execution
Strategy execution Drivers for further value generation Sales initiatives Reduction FTEs2 Blue Collar Temps • Equipping >100 DIY stores in Germany with Invado products with • Significant reduction of workforce in White Collar sales starting in March; start of sale through 2nd DIY chain in H2 '24 the
Slide 21: Guidance for 2024
Guidance for 20241 Confirmation of existing Guidance D-A-CH Iberian Peninsula CEE Doors Revenues EBITDA & margin Financial targets for continuing operations will be announced at the Capital Markets Day in autumn 1 Assumes stable exchange rates (CHF/EUR) H1 results 2024 | 27 August 2024 21
Slide 22: Agenda
Agenda 1. Sale of Climate Division 2. Group results 3. Business Segment Doors Q&A H1 results 2024 | 27 August 2024 22
Slide 23: Thank you
ARBONIA @ Thank you
Slide 24: Appendix
ARBONIA @ Appendix
Slide 25: Overview organic revenue growth HY 2022-2024
Overview organic revenue1 growth HY 2022-2024 In CHF M -6.9% -5.4% • Slowing decline in negative organic growth by 5.4% on Group Arbonia level predominantly driven by volume effects and some Group negative mix effect Continuing operations • Expected reversal in H2 2024 should lead to a slightly nega
Slide 26: Net revenues by Region
Net revenues by Region Continuing operations Net revenues by Region Germany 2% 6% (2%) Switzerland (6%) 7% Eastern Europe1 (3%) Southern Europe2 8% (8%) Others Benelux 57% (59%) 20% (22%) • Development of relative share of Group revenues basically unchanged • Slight shift from Germany and Switzerlan
Slide 27: Balance sheet
Balance sheet In CHF M, including discontinued operations (Climate) 2′000 1′771 1′571 I Assets 1′500 50.2% 29.3% • Shift from non-current to current assets due to 1′000 classification of Climate Division as "discontinued operations" and treated as 500 70.7% "assets held for sale" in current assets 4
Slide 28: M&A: Dimoldura & Lignis Synergies and cross-selling
M&A: Dimoldura & Lignis Synergies and cross-selling Dimoldura and Rozière Lignis • Market entry in Southwest Europe with the market leader in • Market entry in Eastern European project business, combining Spain (Dimoldura) and a strong position in France (Rozière) Lignis market access and their cust
Slide 29: Structural drivers for construction: Excess demand for living space in Germany
Structural drivers for construction Excess demand for living space in Germany German housing demand and completions (in thousands) German price index for homes and flats (2005 = 100) 400 250 225 Underlying demand -18% 300 200 175 Completed flats 200 150 125 War in Syria War in Ukraine 100 100 2012 2
Slide 30: Structural drivers for construction: Renovation in Germany
Structural drivers for construction Renovation in Germany Completions in residential renovation 300.000 +5% 275.000 263.323 251.214 250.000 240.439 232.983 235.394 233.620 234.052 230.351 +24% 226.464 226.172 224.330 223.938 225.000 220.901 211.567 200.000 CAGR +2% 49.757 49.127 49.511 51.836 51.333
Slide 31: Thank you
ARBONIA @ Thank you