Somero Enterprises, Inc. · LSE:SOM
Somero Enterprises — FY2021 Earnings Presentation
25 slides from Somero Enterprises's earnings presentation, March 2022
Slide 1: 2021 Results Presentation
SomeroNN ENTERPRISES, INC LEADERS IN LEVELING 2021 RESULTS PRESENTATION
Slide 2: 2021 in Review
2021 IN REVIEW 2021 HIGHLIGHTS Revenue • Extraordinary growth in • Focused execution of new 2021 US$ 133.3m revenue, EBITDA, and product growth strategy, operating cash flow, all introduced 1 new product in reaching record highs 2021 and completed design 2020 88.6 of 2 products expected to be 2019 8
Slide 3: 2021 Results
2021 RESULTS
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS US$ MILLIONS (EXCEPT PER SHARE DATA) 2021 2020 CHANGE $ CHANGE % Revenue 133.3 88.6 44.7 51% Adjusted EBITDA (1,2) 47.8 26.1 21.7 83% Adjusted EBITDA margin (1,2) 36% 29% +700bps Profit before tax 44.6 24.6 20.0 81% Adjusted net income (1,3) 34.8 18.9 15.9 84% Diluted adjusted n
Slide 5: Sales by Territory
SALES BY TERRITORY US$ MILLIONS 2021 2020 CHANGE $ CHANGE % North America(1) $ 106.6 $ 70.7 $ 35.9 51% Europe 12.1 8.6 3.5 41% Australia 6.1 1.1 5.0 455% China 2.7 3.9 (1.2) (31%) Rest of World(2) 5.8 4.3 1.5 35% TOTAL(3) $ 133.3 $ 88.6 $ 44.7 51% Notes: (1) H1 2021 revenues in North America were US
Slide 6: Sales by Product
SALES BY PRODUCT US$ MILLIONS 2021 2020 CHANGE $ CHANGE % Boomed screeds(1) $ 65.4 $ 31.7 $ 33.7 106% Ride-on screeds(2) 21.3 17.6 3.7 21% Remanufactured machines 4.8 5.8 (1.0) (17%) 3-D Profiler System® 10.0 7.5 2.5 33% Somero Line Dragon® 4.2 4.7 (0.5) (11%) SkyScreed® 0.9 1.0 (0.1) (10%) Other(3)
Slide 7: Operating Results
OPERATING RESULTS US$ MILLIONS 2021 2020 Commentary: Revenue $ 133.3 $ 88.6 • Gross margin improved to 58% from 55% in ‘20 due to higher volume efficiencies Gross profit 76.9 48.8 and favorable product and geographic Operating expenses: mix Selling, marketing & customer • Operating expenses increase
Slide 8: Financial Position
FINANCIAL POSITION DECEMBER 31, DECEMBER 31, US$ MILLIONS 2021 2020 Commentary: Cash $ 42.1 $ 35.4 • Cash increased by US$ 6.7m from ‘20 due to strong operating cash flow, offset Accounts receivable, net 7.7 6.4 by higher capex and dividends paid Inventory 14.3 11.1 • Accounts receivable increased U
Slide 9: Cash Flows
CASH FLOWS US$ MILLIONS 2021 2020 Commentary: Net income $ 34.8 $ 18.8 • Operating cash flow increased by US$ 6.3m Adjustments to reconcile to cash 3.1 2.8 from ‘20 due to increase in operating profits provided by operating activities and higher customer deposits, offset by an Working capital change
Slide 10: Dividend
DIVIDEND Interim dividend: $0.09 per share Final dividend: $0.2202 per share Ordinary Dividend: $m 34.8 The dividend payout ratio is 50% of adjusted net income. Less 50% interim dividend 17.4 5.0 12.4 Adjusted Annual net income dividend Supplemental dividend: $0.1970 per share Supplemental Dividend:
Slide 11: Strategy Update & Outlook
INDUSTRY- LEADING CONCRETE. STRATEGY UPDATE & OUTLOOK |
Slide 12: Long-Term Growth
LONG-TERM GROWTH OUR VISION OUR STRATEGY For our innovative technology to be deployed whenever To bring innovative solutions and training, support and industry horizontal concrete slabs are placed. We remain focused on expertise to concrete flooring contractors to support them in producing developin
Slide 13: New Products – S-28EZ
NEW PRODUCTS – S-28EZ S-28EZ LASER SCREED® MACHINE Somero completed the design of the S-28EZ in 2021 with commercial availability expected in early 2022. The S-28EZ will replace the S-22EZ in the product line-up. Development of the S-28EZ started with the customer. A significant number of new featur
Slide 14: New Products – S-PS50
NEW PRODUCTS – S-PS50 S-PS50 LASER SCREED® MACHINE Design of the S-PS50 was completed in 2021 with a scheduled release in early 2022. The S-PS50 is by far the largest boomed-screed machine we have ever developed with a 50-foot extension. This machine is targeted for use to level concrete in tilt-up
Slide 15: Products & Applications
PRODUCTS & APPLICATIONS RELEASE PRODUCTS APPLICATIONS MARKETS BOOMED SCREEDS: 2022 S-PS50 S-PS50 25,000-50,000+ ft2 placements SLAB ON 2022 S-28EZ warehouses, GRADE 2014 S-22EZ manufacturing assembly plants, tilt-panel and CAST-IN- 2012 S-15R agricultural buildings PLACE S-28EZ 2015 S-10A 2020 SRS-4
Slide 16: International Growth
INTERNATIONAL GROWTH Our international growth strategy is to focus on markets where our value proposition is strongest, such as Europe and Australia driven by adding or reallocating resources to these markets. 2021 was a strong year as these markets combined to contribute US$ 18.2m to 2021 sales, an
Slide 17: Training and Expertise
TRAINING AND EXPERTISE Somero does more than sell equipment. The Company helps customers grow profitable businesses by providing access to world class training and concrete placement & finishing expertise. In 2021, because of restrictions brought on by the pandemic, Somero leveraged its on-demand an
Slide 18: 2022 Outlook
2022 OUTLOOK Positive momentum of a highly-active US Positive momentum in Europe and We anticipate significant long-term growth non-residential construction market Australia also carrying forward supported opportunities from new products and new carrying forward supported by customer by healthy and
Slide 19: Appendices
APPENDICES
Slide 20: Our Purpose
OUR PURPOSE PURPOSE Driven by a passion for our customers’ success, we strive to ensure our customers achieve their business and profitability goals through our hard work to deliver world-class products and services VISION VALUES CULTURE We believe in a set of core values for how we do business, how
Slide 21: Our Proven Model
OUR PROVEN MODEL WHAT WE DO WHAT MAKES US DIFFERENT Somero’s laser-guided technology and wide-placement methods INNOVATIVE PRODUCT INDUSTRY EXPERTISE, TRAINING have been specified for use in a wide range of construction projects. LEADERSHIP AND SUPPORT • Pioneered Laser Screed® machine • Proven comm
Slide 22: Global Reach
GLOBAL REACH CUSTOMERS IN LEADERS IN LEVELLING 90+ At Somero we provide industry-leading concrete leveling COUNTRIES equipment, training, education and support to customers in over 90+ countries. Our innovative technology allows contractors to complete every concrete floor installation faster, flatt
Slide 23: ESG
ESG OUR GOAL OUR APPROACH Striking the right balance between shareholder expectations Developing a comprehensive ESG strategy that includes regular and the needs and concerns of our employees and customers, engagement with stakeholders on material topics the communities we live in, and the environme
Slide 24: Historical Results
HISTORICAL RESULTS YEARS ENDED DECEMBER 31, US$ Millions (except per share data) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Revenue 51.9 24.2 21.0 21.9 32.2 45.1 59.3 70.2 79.4 85.6 94.0 89.3 88.6 133.3 Revenue growth -22% -53% -13% 4% 47% 40% 32% 18% 13% 8% 10% -5% -1% 51
Slide 25: Thank You
THANK YOU