Slide 1: Making Water Perform - May 2014
May 2014 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 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 2013 Sales: €592.7M (-5.7%) Financial 2013 EBITDA: €47.7M (-33.9%; normalized Ebitda: €61.3M) Performance 2013 Net Debt: €186.8m (+3.4%) International leader in distribution of solutions for Pool, Fluid Handling, Water Treatment Business and Irrigation Vertically
Slide 6: 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 Net Debt (€m) & Net Debt/EBITDA
Slide 7: 2. Shareholder Structure
2. Shareholder Structure FLUIDRA °
Slide 8: Shareholder Structure
Shareholder Structure The renewal of 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 32.4% Edrem 13.5% Dispur 12.2% N+1 8.0% Aniol Banc Sabadell 10.1% 9.7% 8
Slide 9: 3. Business Model
3. Business Model 9
Slide 10: 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 Projects Pool, Water Treatment, Irrigation and Fluid Handling Spa / Wellness and Industrial Local Large Distributors / Water Treatment Retailers & Installers (B2C; Mass Market) Builders Retai
Slide 11: Overview of Divisions and Business Units
Overview of Divisions and Business Units Divisions NOTH ASIA & EUROPE AMERICA & AUSTRALIA RoW FY 2013 Revenues €592.7M €410M €114M €69M (69%) (19%) (12%) €411M Design, production and distribution of all components for Pool – Wellness (69%) residential or commercial pools and wellness centers €60M
Slide 12: Distribution Network
Distribution Network 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 125 branches in 41 countries: Alemania, Australia, Austria, Bélgica, Brasil, Bulgaria, Colombia, Chile, China, Chipr
Slide 13: Internationally recognized leadership on Pools
Internationally recognized leadership on Pools Some examples on Country Market Share (%) on Pool activity Fluidra Other 57% 60% 55% 31% 35% 29% 17% Spain Portugal France UK Italy Middle East Australia Market Position #1 #1 #1 #1 #1 #1 #1 13
Slide 14: Fluidra's Positioning in the Water Business
Fluidra’s Positioning in the Water Business 14
Slide 15: 4. Financial Performance
4. Financial Performance FLUIDRA @ee-
Slide 16: 2013 Results - Summary
2013 Results - Summary Main Magnitudes Sales: 2013 evolution is clearly impacted by FX (2.1%), Projects (1.4%) and economic situation and bad 2012 2013 Evol. €M weather conditions at the beginning of the season. Sales 628,8 592,7 -5,7% EBITDA includes the impact of the points mentioned EBITDA 72,2 4
Slide 17: 2013 Results – Normalization of EBITDA & Net Income
2013 Results – Normalization of EBITDA & Net Income In order to facilitate understanding of our accounts in this atypical year, we present a normalization of EBITDA and Net Profit. EBITDA reflects both the impact of closing-down of Projects, and of the losses generated by this activity during the ye
Slide 18: 2013 Results – Conclusions
2013 Results – Conclusions Year 2013 is affected by the closing-down of Projects. All related costs and expenses are included in 2013 accounts. Fluidra continues to develop its strategy deleveraging in Europe and investing internationally, within a framework of stable financial situation: Implement
Slide 19: 1Q2014 Results - Summary
1Q2014 Results - Summary Key magnitudes March 13 March 14 Evol. Sales: aligned with our expectations and affected by €M YTD YTD currencies, projects and mass market platform. Sales 140,1 130,6 -6,8% EBITDA: lost volume cannot be compensated by EBITDA 10,0 9,2 -7,8% good margin & opex performance. Ne
Slide 20: 1Q2014 Results – Sales evolution
1Q2014 Results – Sales evolution -3,0% -2,7% 4,3 -2,3% 3,7 1,2% -6,8% 3,2 1,7 140,1 130,6 2013 Mar Sales FX Platforms Mass Projects Other 2014 Mar Sales Market Currencies have a significant impact on this quarter mainly due to Australian dollar, American dollar, Turkish lire & Indonesian rupee. Sale
Slide 21: 1Q2014 Results - Income Statement
1Q2014 Results - Income Statement March 2013 YTD March 2014 YTD €M % sales €M % sales Evol.14/13 Sales 140,1 100,0% 130,6 100,0% -6,8% Gross Margin 71,4 51,0% 68,8 52,7% -3,8% Opex before Dep.& Amort. 60,1 42,9% 57,9 44,4% -3,7% Provisions for bad debt 1,3 0,9% 1,6 1,2% 25,1% EBITDA 10,0 7,1% 9,2 7,
Slide 22: 1Q2014 Results – Sales by Geographical Area
1Q2014 Results – Sales by Geographical Area Fluidra Sales by Geographical Area Evolution 2013 YTD % 2014 YTD % €M 14/13 Spain 26,8 19,1% 26,4 20,2% -1,3% South Europe - Rest 43,7 31,2% 36,0 27,6% -17,7% Central & Northern Europe 16,6 11,9% 19,2 14,7% 15,8% Eastern Europe 5,3 3,8% 6,0 4,6% 12,6% Asia
Slide 23: 1Q2014 Results - Evolution of Sales by Business Unit
1Q2014 Results - Evolution of Sales by Business Unit Sales by business units Evolution 2013 YTD % of Total 2014 YTD % of Total €M % Pool 95,7 68,3% 90,2 69,1% -5,7% - Private 80,7 57,6% 74,3 56,9% -7,9% - Commercial 15,0 10,7% 15,9 12,2% 6,1% Water Treatment 18,4 13,1% 18,4 14,1% 0,1% Irrigation 7,7
Slide 24: 1Q2014 Results – Net Working Capital
1Q2014 Results – Net Working Capital March YTD Net Working Capital (M€) First Quarter Evol. 2013 2014 €M 14/13 234,2 228,8 Inventory 167,3 161,1 -3,7% Accounts Receivable 192,7 186,0 -3,5% Accounts Payable 125,8 118,3 -6,0% Net Working Capital 234,2 228,8 -2,3% 2013 2014 The evolution of Net Working
Slide 25: 1Q2014 Results – Net Financial Debt and Free Cash Flow
1Q2014 Results – Net Financial Debt and Free Cash Flow March YTD Net Financial Debt (M€) 2013 2014 Evol. 14/13 €M First Quarter Net income -2,2 -3,7 -1,5 Depreciation (+) 8,5 8,7 0,2 Increase (-) / Decrease (+) NWC -33,4 -47,2 -13,8 Capex (organic) -5,8 -4,4 1,4 Free Cash Flow pre-acquisitions -32,9
Slide 26: 1Q2014 Results– Conclusions
1Q2014 Results– Conclusions First quarter aligned with our expectations, affected by currencies, projects and platforms, although under these realities we see signs of recovery in coming quarters, in Southern Europe. The impact of foreign exchange, if rates maintain this level, will be minimal from
Slide 27: 5. Strategy and Investments Highlights
5.Strategy and Investments Highlights 27
Slide 28: Strategy
Strategy 2016 Worldwide Water company serving our customers 2013 An international pool company with Europe as a main market 28
Slide 29: Strategy guidelines
Strategy guidelines Focus on emerging markets, both organic and through acquisitions Expand product range for the park driven by sustainability criteria Increase penetration of irrigation, domestic WT and fluid handling Develop channels based on current structure Acquisition strategy focused on Chin
Slide 30: 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 31: 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 32: 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 33: 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 34: 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 35: 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 36: 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 37: 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 37
Slide 38: 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 39: 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 39
Slide 40: Contact
Contact: Avda. Francesc Macià, 60, planta 20 08208 Sabadell (Barcelona) Tel: +34 937 243 900 e-mail: investor_relations@fluidra.com 40