Somero Enterprises, Inc. · LSE:SOM
Somero Enterprises — FY2022 Earnings Presentation
28 slides from Somero Enterprises's earnings presentation, May 25, 2023
Slide 1: Laser Focused Growth: 2022 Results Presentation
LASER FOCUSED GROWTH 2022 RESULTS PRESENTATION
Slide 2: 2022 in Review: 2022 Highlights
2022 IN REVIEW 2022 HIGHLIGHTS Revenue • Record setting revenue surpassing extraordinary US$ 133.6m 2021 result driven by a healthy, active North American market 2021 2021 133.3 2020 2020 88.6 • Record contribution from Europe and Australia reflects added selling & customer support staff, Adjusted E
Slide 3: 2022 Results
2022 RESULTS 2022 RESULTS PRESENTATION 3
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS US$ MILLIONS (EXCEPT PER SHARE DATA) 2022 2021 CHANGE $ CHANGE % Revenue 133.6 133.3 0.3 23bps Adjusted EBITDA (1,2) 46.0 47.8 (1.8) -3.8% Adjusted EBITDA margin (1,2) 34% 36% -200bps Profit before tax 40.8 44.6 (3.8) -8.5% Adjusted net income (1,3) 31.0 34.8 (3.8) -11% Diluted
Slide 5: Sales by Territory
SALES BY TERRITORY US$ MILLIONS 2022 2021 CHANGE $ CHANGE % North America(1) $ 101.8 $ 106.6 $ (4.8) -5% Europe 14.9 12.1 2.8 23% Australia 8.4 6.1 2.3 38% Rest of World(2) 8.5 8.5 - - TOTAL(3) $ 133.6 $ 133.3 $ 0.3 23bps Notes: (1) H1 2022 revenues in North America were US$ 55.6m (H1 2021: US$ 50.9
Slide 6: Sales by Product
SALES BY PRODUCT US$ MILLIONS 2022 2021 CHANGE $ CHANGE % Boomed screeds(1) $ 67.2 $ 65.4 $ 1.8 3% Ride-on screeds(2) 19.5 21.3 (1.8) -8% Remanufactured machines 6.9 4.8 2.1 44% 3-D Profiler System® 8.7 10.0 (1.3) -13% Somero Line Dragon® 1.7 4.2 (2.5) -60% SkyScreed® 1.1 0.9 0.2 22% Other(3) 28.5 2
Slide 7: Operating Results
OPERATING RESULTS US$ MILLIONS 2022 2021 Commentary: Revenue $ 133.6 $ 133.3 • Healthy gross margin reflects price Gross profit 76.2 76.9 increases that offsets inflationary cost Operating expenses: increases and higher mix of remanufactured equipment sales Selling, marketing & customer support 14.3
Slide 8: Financial Position
FINANCIAL POSITION DECEMBER DECEMBER US$ MILLIONS 31, 2022 31, 2021 Commentary: Cash $ 33.7 $ 42.1 • Cash decreased due to record 2022 dividend Accounts receivable, net 10.3 7.7 payments and increased working capital requirements Inventory 18.8 14.3 Prepaid & other 2.1 1.6 • Accounts receivable incr
Slide 9: Cash Flows
CASH FLOWS US$ MILLIONS 2022 2021 Commentary: Net income $ 31.1 $ 34.8 • Cash from operations declined due to Adjustments to reconcile to cash increased working capital requirements tied 2.0 3.1 primarily to inventory and modestly reduced provided by operating activities net income Working capital c
Slide 10: Dividend
DIVIDEND Interim dividend: $0.10 per share Final dividend: $0.1780 per share Ordinary Dividend: The dividend payout ratio is 50% of adjusted net income. $m 31.0 Less interim dividend 50% 15.5 5.6 9.9 Adjusted Annual dividend net income Supplemental Dividend: Supplemental dividend: $0.0770 per share
Slide 11: Strategy Update & Outlook
STRATEGY UPDATE & OUTLOOK 2022 RESULTS PRESENTATION 11
Slide 12: Long-Term Growth
LONG-TERM GROWTH • S-28EZ significantly contributed to 2022 boomed screed growth PRODUCT INNOVATION • Growing contribution from new products • Active period of jobsite visits, customer innovation councils – sets stage for next round of new products Pushing the industry forward with innovative soluti
Slide 13: Product Development
PRODUCT DEVELOPMENT The S-28EZ introduced an innovative New products in the portfolio ‘22 was an active year setting the active counter-weighting system to targeting new markets (SkyScreed® stage for future development. support a 25 foot boom design, an 36, SkyStripTM, Broom+CureTM & S- Customers co
Slide 14: Products & Applications
PRODUCTS & APPLICATIONS RELEASE PRODUCT APPLICATION MARKET BOOMED SCREEDS: 2022 S-PS50 SLAB ON 2022 S-28EZ S-PS50 25,000-50,000+ ft2 placements GRADE warehouses, manufacturing 2014 S-22EZ (re-launch in ‘23) assembly plants, tilt-panel and CAST-IN- agricultural buildings 2012 S-15R PLACE 2015 S-10A S
Slide 15: International Growth: Europe
INTERNATIONAL GROWTH EUROPE Europe ❖ US$ 14.9m in revenue in 2022, growing 23% from US$ 12.1m in 2021, and over 270% from the US$ 8.6m in 2020 ❖ 14-person European team grew 40% in H2 ’21 and ’22 ❖ 75% of ‘22 growth came from target countries within region ❖ Sold 10 different types of equipment in ‘
Slide 16: International Growth: Australia
INTERNATIONAL GROWTH AUSTRALIA Australia ❖ US$ 8.4m in revenue in 2022, growing 38% from US$ 6.1m in 2021, and over 800% from the US$ 1.1m in 2020 ❖ 7-person Australian team grew 75% in H2 ’21 and ’22 ❖ SkyScreed® 36 introduced to market in late 2022, first demos expected in Q1 ’23 ❖ Sold 7 differen
Slide 17: 2023 Outlook
2023 OUTLOOK Healthy, active US non-residential Momentum in Europe & Australia Significant long-term growth construction market - customers reporting capitalizing on positive market conditions opportunities from new products and extended project backlogs well into 2023 with added selling and support
Slide 18: Questions
QUESTIONS 2022 Results Presentation 18
Slide 19: Appendices
APPENDICES 2022 RESULTS PRESENTATION 19
Slide 20: Our Purpose
OUR 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 For our innovative technology to be We believe in a set of core values
Slide 21: Our Proven Model
OUR PROVEN MODEL WHAT WE DO Somero’s laser-guided technology and wide-placement methods have been specified for use in a wide range of construction projects. Warehousing Assembly Parking WHO WE WORK WITH plants structures Somero operates in markets across the globe and has sold products in 90+ count
Slide 22: 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 23: Global Reach
GLOBAL REACH LEADERS IN LEVELLING OUR LOCATIONS At Somero we provide industry-leading concrete levelling equipment, North America training, education and support to customers in over 90+ countries. Fort Myers, Florida: Global headquarters and Somero Our innovative technology allows contractors to co
Slide 24: Our ESG Framework
OUR ESG FRAMEWORK Our goal is to strike the right balance between shareholder expectations and the needs and concerns of our employees and customers, the communities we live in, and the environment. In 2022, we made meaningful progress in the early stages of our long-term ESG journey SOCIAL Somero i
Slide 25: ESG in Action
ESG IN ACTION Concrete Industry Management S-485 Donation Harry Chapin Food Bank Industry Support Charitable Donations Employee Volunteering PTO Employee Training Keweenaw Trail Clearing Somero Concrete Institute 31 Backpacks Customer Training 2022 RESULTS PRESENTATION 25
Slide 26: ESG in Action
ESG IN ACTION Environmental Study Phase I: 2021 Middle Tennessee State University research study identified environmental benefits from the use of Somero laser screed equipment over traditional manual methods. Environmental Study Phase II: Colorado State University study to be completed in 2023 will
Slide 27: Historical Results
HISTORICAL RESULTS YEARS ENDED DECEMBER 31, US$ Millions (except per share data) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Revenue 24.2 21.0 21.9 32.2 45.1 59.3 70.2 79.4 85.6 94.0 89.3 88.6 133.3 133.6 Revenue growth -53% -13% 4% 47% 40% 32% 18% 13% 8% 10% -5% -1% 51% 23
Slide 28: Thank You
THANK YOU 2022 RESULTS PRESENTATION 28