Flugger Group A/s Class B · OMXCOP:FLUG_B
Flugger Group A/s Class B — FY 2020/21 Earnings Presentation
21 slides from Flugger Group A/s Class B's earnings presentation, June 2021
Slide 1: Financials FY 20/21 IR presentation Q4
Financials FY 20/21 IR presentation Q4 June 2021
Slide 2: Flügger Management team
Flügger Management team CEO CFO CDO Sune Schnack Poul Erik Stockfleth Ulf Schnack 2
Slide 3: Flügger is a leading Nordic player within decorative paint products
Flügger is a leading Nordic player within decorative paint products for both professionals and consumers. In-house knowledge controlling entire value chain Leading position supported by strong fundamentals and diversified revenue stream 3
Slide 4: With acquisition of Unicell and Eskaro Flügger has become international
With acquisition of Unicell and Eskaro Flügger has become international East Other, revenue (DKKm) To International player 112 2% 2020/21 From Scandinavian 14% 17% # 239 3 604 2 2020/21 2020/21 17% To three business units 3 7% 3 30% 795 1 2020/21 12% 13% From Flügger 412 4-5 2 2020/21 To keeping mom
Slide 5: Intensifying strategic initiatives will drive profitable growth & efficiency
Intensifying strategic initiatives will drive profitable growth & efficiency Key strategic initiatives towards an EBIT of 350 mDKK Key strategic targets 1 VALUE BASED PRICING Optimization of pricing across product and segments as well as focusing on margin enhancing initiatives. Revenue 3.5 bDKK EBI
Slide 6: Q4 20/21 Highlights
Q4 20/21 Highlights Revenue (mDKK) EBIT (mDKK) Own stores (#) 5% +8% -2% 522 550 26 28 237 232 Q4 19/20 Q4 20/21 Q4 19/20 Q4 20/21 Q4 19/20 Q4 20/21 Gross Margin (%) EBIT-margin (%) Franchise stores (#) +5.1pp +0.1pp -8% 50.0 55.1 5.0 5.1 153 140 Q4 19/20 Q4 20/21 Q4 19/20 Q4 20/21 Q4 19/20 Q4 20/21
Slide 7: FY 20/21 Highlights
FY 20/21 Highlights Revenue (mDKK) EBIT (mDKK) Own stores (#) +174% 14% -2% 2.162 228 237 232 1.895 83 FY 19/20 FY 20/21 FY 19/20 FY 20/21 FY 19/20 FY 20/21 Gross Margin (%) EBIT-margin (%) Franchise stores (#) +3.5pp +6.2pp -8% 52,7 56,2 10,6 153 140 4,4 FY 19/20 FY 20/21 FY 19/20 FY 20/21 FY 19/20
Slide 8: Q4 20/21 Highlights
Q4 20/21 Highlights Flügger Group Results Demand in Nordics returned to normalized level mDKK Q4 20/21 Q4 19/20 Change • Sales to consumers and private label to DIY stores in the Net sales 550 522 5% Nordics was back at normalized level compared to very high Organic growth 4% 10% -6pp demand in Q4 1
Slide 9: FY 20/21 Highlights
FY 20/21 Highlights Flügger Group Results Extraordinary sales to consumers mDKK FY 20/21 FY 19/20 Change • COVID-19 driving up organic sales growth primarily from Net sales 2,162 1,895 14% consumers in Denmark and Sweden Organic growth 9% 1% 8pp • Strong organic growth in Poland supplemented with sa
Slide 10: Tailwind from COVID-19 on sales to consumers mainly in Denmark and Sweden
Tailwind from COVID-19 on sales to consumers mainly in Denmark and Sweden and to lesser extent in Norway and Poland Estimated Covid-19 impact COVID-19 is estimated to have contributed • Sales to consumers, particular in Denmark and Sweden, approximately 4-5% revenue growth and 1-2 and to a lesser ex
Slide 11: Net sales increase driven by acquisition of Unicell
Net sales increase driven by acquisition of Unicell. Positive impact from COVID-19. Currency headwind in Poland and Norway Group sales development Net Sales Net Sales LTM Net sales mDKK mDKK mDKK 2.162 700 2.400 2.100 1.895 600 1.800 500 1.500 400 1.200 300 900 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 12: EBIT at historical level including first ever positive Q3 EBIT
EBIT at historical level including first ever positive Q3 EBIT, driven by Unicell, increased sales and full impact from the efficiency program TITAN Group EBIT development EBIT EBIT mDKK mDKK 150 250 76 200 100 228 7 11 150 217 50 100 50 0 83 0 -50 -50 -100 -100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 13: 2020/21 impacted by non-recurring costs of MDKK 32
2020/21 impacted by non-recurring costs of MDKK 32 - on par with the previous year • Factory Footprint related to closure of • existing paint production The largest players in thewhile industry One-off (mDKK) 2020/21 simultaneously are transforming expanding new filler themselves factory, (organicbo
Slide 14: Segment Own Stores & Resellers: Q4 sales growth of +8%
Segment 1 Own Stores & Resellers: Q4 sales growth of +8% driven by emerging markets, who was impacted last year by COVID-19 restrictions Sales development per geographical segment • Sales to consumers in the Nordics was Organic Reported Revenue (mDKK) Q4 19/20 Currency M&A Q4 20/21 • back The at nor
Slide 15: Segment DIY: Q4 sales affected by cold weather
Segment 2 DIY: Q4 sales affected by cold weather impacting exterior sales Sales development per geographical segment • Sales to private label in DIY stores in Organic Reported Revenue (mDKK) Q4 19/20 Currency M&A Q4 20/21 • the The largest Nordics players was in normalized back at the industry Growt
Slide 16: Segment Own Stores & Resellers: FY sales growth of +9%
Segment 1 Own Stores & Resellers: FY sales growth of +9% primarily driven by positive impact from COVID-19 in Denmark and Sweden Sales development per geographical segment • COVID-19 driving up organic sales growth Organic Reported Revenue (mDKK) FY 19/20 Currency M&A FY 20/21 • primarily from playe
Slide 17: Segment DIY: FY primarily driven by acquisition of Unicell
Segment 2 DIY: FY primarily driven by acquisition of Unicell Sales development per geographical segment • Solid sales in Unicell Nordic driven by Organic Reported Revenue (mDKK) FY 19/20 Currency M&A FY 20/21 • increased consumer The largest players focus onindustry in the DIY due Growth Growth toar
Slide 18: Earnings increase with stock price keeping the P/E stable around 13
Earnings increase with stock price keeping the P/E stable around 13 Development in P/E and stock price P/E Stock price incl. reinvested dividends DKK DKK 100 900 800 80 700 600 60 500 400 40 300 200 20 100 0 0 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 11/12 12/13 13/14 14/15
Slide 19: Stock price development
Stock price developement Facts about Flügger Group A/S (FLUG B) Development - Flügger & Competitors Flügger Tikkurila PPG Akzo Nobel Source: June 18 2021 - https://www.morningstar.com/stocks/xcse/flug%20b/quote 19 19
Slide 20: Solid balance sheet as the foundation for further possible acquisitions
Solid balance sheet as the foundation for further possible acquisitions Financial solidity NIBD* Equity ratio mDKK % 100 100% Very solid balance sheet with equity ratio above 1 60% except from 2019/20, which is due to implementation of IFRS16 50 80% 60% 40% 20% 0 0% 2019/20 and 2020/21 NIBD impacted
Slide 21: Financial Outlook
Financial Outlook Revenue 2.500-2.700 mDKK • Positive impact from COVID-19 expected to normalize EBIT 220-270 mDKK during second half of the year • Continued positive effect from increased sales to Result after tax and consumers with high margins minority interests 155-190 mDKK • Acquisition of Eska