Dometic Group Ab · OMXSTO:DOM
Dometic Group Ab — Merger or Acquisition (November 2017)
19 slides from Dometic Group Ab's merger presentation, Nov 22, 2017
Slide 1: Dometic Acquires SeaStar Solutions
DOMETIC ACQUIRES SEASTAR SOLUTIONS NOVEMBER 22, 2017
Slide 2: Agenda
AGENDA 1 ACQUISITION OVERVIEW 2 SEASTAR SOLUTIONS OVERVIEW 3 STRATEGIC FIT 4 SUMMARY 5 Q&A
Slide 3: Acquisition Overview
ACQUISITION OVERVIEW ▪ North American market leader in vessel control systems and aftermarket products SEASTAR ▪ Focused on the attractive sports and leisure boats industry SOLUTIONS ▪ Expected 2017 sales of USD 320m* and EBITDA of USD 85m* ▪ Creates a powerful platform for future growth in the mari
Slide 4: SeaStar Solutions Overview
SEASTAR SOLUTIONS OVERVIEW Mobile living made easy. “@> DOMETIC
Slide 5: SeaStar Solutions Overview
SEASTAR SOLUTIONS OVERVIEW ▪ North American market leader in vessel control systems and aftermarket products ▪ Nr 1 position in all key product categories ▪ Expected 2017 sales of USD 320m* ▪ Expected 2017 EBITDA of USD 85m* ▪ Expected 2017 Capex 2% of sales* ▪ 1,250 employees, 8 facilities . * Pro
Slide 6: SeaStar Solutions – Sales Overview
SEASTAR SOLUTIONS – SALES OVERVIEW SALES SPLIT 2016 GEOGRAPHY CHANNEL BUSINESS AREA 13% 10% 48% International Industrial Aftermarket Americas Marine OEM 52% 87% 90% ELECTRONIC & MECHANICAL MECHANICAL SHIFT & THROTTLE REPLACEMENT ENGINE FUEL SYSTEMS HYDRAULIC STEERING STEERING CONTROLS CABLES PARTS S
Slide 7: SeaStar Solutions – Key Products
SEASTAR SOLUTIONS – KEY PRODUCTS Digital Integration Systems Electronic Joystick Power Steering Controls Electronic Steering Throttle Gateways Controls Fuel Actuator Throttles/ Systems Harnesses Steering Power Assist Shift & Throttles Harnesses Engine Parts Fuel Lines Jackplates Control Smart Hydrau
Slide 8: SeaStar Solutions – Operational Footprint
SEASTAR SOLUTIONS – OPERATIONAL FOOTPRINT International sales presence in Europe Limerick, PA Vancouver, BC (3 facilities) Litchfield, IL (2 facilities) Nashville, TN Sparta, TN Stuart, FL Vancouver, BC Limerick, PA Litchfield, IL Sparta, TN Nashville, TN Stuart FL Division Hydraulic Mechanical
Slide 9: Market Overview
MARKET OVERVIEW Mali Olsson" <mo@translator-scandinavia.se ▪ U.S Outboard market primary exposure ▪ 161,000 units sold 2016 (8% growth CAGR 2010-2017) ▪ Total fleet of about 7,9m vessels as potential aftermarket customers ▪ Favourable market dynamics ▪ 36% of U.S household boating participation ▪ In
Slide 10: Strategic Fit
Mobile living made easy. “@> DOMETIC
Slide 11: Our Strategy for Profitable Growth
OUR STRATEGY FOR PROFITABLE GROWTH Growth + Growth Grow Aftermarket Accelerate New Growth Strengthen OEM Margins Business Geographies ▪ Product leadership • Mobile cooling and outdoor • China Growth ▪ Selective product expansion • Develop and broaden on- and offline retail sales • Growth in Southeas
Slide 12: Compelling Strategic Fit
COMPELLING STRATEGIC FIT MISSION PRODUCT PROMISE “Smart, reliable products with Mobile Living Made Easy. outstanding design” SEGMENT FOCUS PRODUCT NICHE “DNA” SEGMENT D S D+S NICHE “DNA” D S RV 65% - 55% Consolidated market No 1 or 2 position Marine 10% 90% 22% Technology content CPV 14% - 12% Diffe
Slide 13: Profile of Combination
PROFILE OF COMBINATION GROUP SALES BY DISTRIBUTION CHANNEL AMERICAS SALES BY DISTRIBUTION CHANNEL DOMETIC DOMETIC & SEASTAR COMBINED DOMETIC DOMETIC & SEASTAR COMBINED 41% 42% 30% 35% 58% 65% 59% 70% OEM AM GROUP SALES BY BUSINESS AREA AMERICAS SALES BY BUSINESS AREA DOMETIC DOMETIC & SEASTAR COMBIN
Slide 14: Synergies
SYNERGIES TOTAL SYNERGIES OF USD 20m PER ANNUM FULLY REALIZED WITHIN 3 YEARS COMMERCIAL SYNERGIES COST SYNERGIES ▪ Cross-selling across marine OEM and aftermarket ▪ Sourcing channels ▪ Distribution and logistics ▪ Utilize Dometic’s network for further penetration outside North America ▪ Manufacturin
Slide 15: Summary
SUMMARY Mobile living made easy. “@> DOMETIC
Slide 16: Operational Summary
OPERATIONAL SUMMARY Creates a powerful platform for future growth in the marine segment Nr 1 in key product areas through strong brands and product leadership New opportunities in the attractive market for outboard vessels Good operating and cultural fit Proven record of profitable growth Strong man
Slide 17: Financial Summary
FINANCIAL SUMMARY Immediately accretive to EBIT and EPS Return on investment to be above cost of capital within 3 years Fully financed via cash and committed bank facilities Net debt / EBITDA of 3.3x at closing. Expected to within target level in 24 months Maintained dividend policy of at least 40%
Slide 18: Summary
SUMMARY MARKET ✓ ✓ ✓ ✓ LEADING STRENGTHEN GROW ACCRETIVE PRODUCTS IN OEM AFTERMARKET M&A ATTRACTIVE NICHE MARKET 18
Slide 19: Q&A
O&A Mobile living made easy. “@> DOMETIC
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