Dometic Group Ab · OMXSTO:DOM

Dometic Group Ab — Q1 2016 Earnings Presentation

32 slides from Dometic Group Ab's earnings presentation, 2016

  1. Slide 1: Interim Presentation - First Quarter, 2016

    INTERIM PRESENTATION - FIRST QUARTER, 2016 STRICTLY

  2. Slide 2: Presenters

    PRESENTERS ROGER JOHANSSON - PRESIDENT & CEO PER-ARNE BLOMQUIST - CFO 2 Dometic Group Interim Presentation - Q1 2016

  3. Slide 3: Roger Johansson, President & CEO

    ROGER JOHANSSON, PRESIDENT & CEO

  4. Slide 4: 2016 Q1 highlights

    2016 Q1 highlights  Organic growth 5% and EBIT improvement of 17%. OEM, 64%  Cash flow development according to plan. AM, 36%  Margin improvement in seven out of eight businesses.  RVOEM in Europe outpacing the market.  Americas RVOEM growth below market, but strong RVAM sales. Americas, 48% 

  5. Slide 5: Q1 2016 sales, EBIT and operating cash flow

    Q1 2016 Sales (SEKm) EBIT bef. i.a.c (SEKm) Operating Cash Flow (SEKm) 9% (8% comparable currency) 4% (3% comparable currency) Organic: 5% 2,999 400 37 2,875 366 -102 Q1 15 Q1 16 Q1 15 Q1 16 Q1 15 Q1 16 5 Dometic Group Interim Presentation - Q1 2016 1 Operating Cash Flow before items affecting compa

  6. Slide 6: Key Ratios

    Key Ratios Q1 Q1 LTM FY SEKm 2016 2015 2016 2015 Sales Net sales 2,999 2,875 11,610 11,486 Growth, % 4.3 43.7 19.9 30.4 Organic growth, % 5.1 7.7 Profitability EBIT before i.a.c. % 13.3 12.7 12.5 12.3 EBITDA before i.a.c. % 15.8 15.3 15.0 14.8 Capital efficiency Core working capital, to sales, %* 21

  7. Slide 7: US RV Market - OEM Shipments

    US RV Market - OEM Shipments Rolling Twelve Months (000s units) OEM Shipments: • YTD February +11% 400 • Rolling three months February: 350 95,500 units (87,300) +9% 300 250 • LTM February 2016: 381,200 units (361,000) +6% 200 150 100 50 0 Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Feb 10 10 11 11

  8. Slide 8: Europe RV Market Registrations

    Europe RV Market Registrations Rolling Twelve Months (000s units) • Rolling three months March: 50 26,900 units (22,000) +13%* 45 40 • LTM March 2016: 35 94,200 units (87,200) +8%* 30 25 20 +18% 15 15 10 10 +10% 5 0 5 Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Mar +18% +7% -14% 10 10 11 11 12 12 13

  9. Slide 9: Europe Trucks (above 16 tons) Registrations

    Europe Trucks (above 16 tons) Registrations Rolling Three Months (000s units) 70 60 50 40 30 20 10 0 Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Feb 10 10 11 11 12 12 13 13 14 14 15 16  Rolling three months February: 52,200 units (43,800) +19%  LTM February: 220,700 units (187,400) +18% 9 Dometic

  10. Slide 10: US Powerboat Sales

    US Powerboat Sales Rolling Twelve Months Change (%) Power boat category (%) • Rolling twelve months March 2016: 8.5% March 16 YTD 2016 35 15 10 5 18 19 17 17 12 0 8 7 -5 -10 -3 -8 -15 Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Mar OB (11 IB (14- IB (31- IB (41- IB (63- 10 10 11 11 12 12 13 13 14 14

  11. Slide 11: Americas

    AMERICAS BREAKDOWN OF LOCATIONS Q1 HIGHLIGHTS SALES By sales channel  Continued growth in RV market  Strengthened margins  Successful launch of Blizzard NXT  Atwood distribution structure aligned with Dometic´s. AM, 23% OEM, 77% NET SALES & EBIT % 10.3 13.0 By business area +7%* 1,350 1,523 1,46

  12. Slide 12: EMEA

    EMEA BREAKDOWN OF LOCATIONS Q1 HIGHLIGHTS SALES By sales channel  Strong momentum in RV market.  RVOEM sales double digit growth.  AC service stations driving CPV growth.  Marine OEM business growth in UK, France and Italy.  SG&A efficiency program yielding result. AM, 46% OEM, 54% NET SALES &

  13. Slide 13: APAC

    APAC BREAKDOWN OF LOCATIONS Q1 HIGHLIGHTS SALES  Strong retail sales in Australia, driven by By sales channel new products and accounts.  Slow start of the year in RVOEM, but outpacing Australian market.  Strengthened gross margins.  Positive development in Japan.  New head of Region – Chialing

  14. Slide 14: Dometic Group Trends

    Dometic Group Trends Sales (msek) EBIT bef. i.a.c (msek) 12,000 1,500 1,400 11,000 1,300 10,000 1,200 1,100 0 0 Dec Mar Jun Sept Dec Mar Dec Mar Jun Sept Dec Mar 2014 2015 2016 2014 2015 2016 EBIT bef. i.a.c (%) Operating cash flow (msek) 12.6 1,500 12.4 12.2 1,000 12.0 11.8 500 11.6 0.0 0 Dec Mar J

  15. Slide 15: Business Area Sales Development

    Business Area Sales Development +30% +21% RV (19% CC) CPV (17% CC) 8,000 1,900 1,800 7,000 1,700 6,000 1,600 1,500 5,000 0 0 Mar June Sept Dec Mar Jun Sept Dec Mar Mar June Sept Dec Mar Jun Sept Dec Mar 2014 2015 2016 2014 2015 2016 +15% +8% Marine (5% CC) Other (4% CC) 1,050 1,200 1,000 1,150 950 1

  16. Slide 16: Per-Arne Blomquist, CFO

    PER-ARNE BLOMQUIST, CFO Dometic GROUP

  17. Slide 17: Dometic Group Net Sales Bridge Q1 (SEKm)

    Dometic Group Net Sales Bridge Q1 (SEKm) Translation FX details +4% Net Share of FX Sales impact change 2,999 USD 58 124% 4% EUR 2 4% 0% -2% AUD -10 -21% -4% 2,875 HKD 2 3% 4% +5% GBP -1 -2% -2% +1% CNY 0 0% 0% Other -4 -9% Total 47 1% 1503 Translation Organic Acquisitions/ 1603 FX Growth divestment

  18. Slide 18: Regional result

    Regional result Q1 Q1 Change (%) LTM FY SEK million 2016 2015 Rep. Adj.⁽¹⁾ 2016 2015 Americas 1,440 1,350 7% 3% 5,627 5,538 EMEA 1,222 1,134 8% 8% 4,568 4,479 Asia Pacific 337 322 5% 7% 1,415 1,400 Medical division⁽²⁾ 0 69 - - 0 69 Total net sales 2,999 2,875 4% 3% 11,610 11,486 Americas 187 139 35%

  19. Slide 19: Seasonality a part of our business – differs by Region

    Seasonality a part of our business – differs by Region AMERICAS EMEA 14.3% 13.0% 12.4% 11.4% 13.0% 11.2% 11.7% 10.3% 1,523 1,461 1,337 1,222 1,350 1,440 1,134 1,082 1,204 927 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2016 2015 2015 2015 2015 2016 2015 2015 2015 2015 APAC 23.6% 22.0% EBIT% EBIT% w/o central cost

  20. Slide 20: CAPEX & PMI

    CAPEX & PMI CAPEX (SEKm, % of net sales) 80 2.3% 3.5%  Capex 1.8% of net 3.0% 70 3.0% sales. Q1 2015 2.6% 2.0% 60 1.9% 1.8% included Medical. 2.1% 2.5% 50 1.8% 1.4% 2.0% 40 74 66 1.5% 30 56 58 53 52 52 1.0% 20 34 39 10 0.5% 0 0.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2014 2014 2014 2014 2015 2015 2015 2015 2

  21. Slide 21: Working Capital development

    Working Capital development Average core WC / LTM sales Change in core WC Core working capital build-up (SEKm, %) 24.0% 24.3% 24.6% 24.5% 24.5% 24.3% 24.3% 23.4% 23.2% 22.3% 22.0% 21.5% 21.3% 373 430 244 253 200 74 -24 -149 -117 -183 -299 -293 -426 -524 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2013 20

  22. Slide 22: Core working capital in Balance sheet

    Core working capital in Balance sheet 2 675 2 468 2 585 2 608 2 105 2 191 2 240 2 190 2 337 2 197 2 020 2 199 1 372 1 405 1 246 1 382 924 906 -753 -835 -1 144 -1 010 -1 000 -1 044 Dec 14 Mar 15 June 15 Sept 15 Dec 15 Mar 16 Inventories Trade recivables Trade payables 22 Dometic Group, Q1 2016

  23. Slide 23: Cash Flow (SEKm)

    Cash Flow (SEKm) SEKm % 700 229% 250 600 200 500 145% 147% 136% 150 108% 89% 400 73% 73% 373 61% 100 300 623 50 200 416 388 308 337 342 284 258 287 0 100 8% -101% -18% -22% -50 0 37 -53 -102 -100 -100 -284 -200 -150 -300 -200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2013 2014 2015 2016 23 Dometic Grou

  24. Slide 24: Net debt leverage and Net debt details

    Net debt leverage and Net debt details 6.6 5.6 5.1 2.4 2.4 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q1 Q2 Q3 Q4 Q1 SEKm 2015 2015 2015 2015 2016 RCF 139 87 0 311 131 Capex 434 434 434 0 0 Senior term A 860 826 819 996 988 Senior term B 5,680 5,076 5,055 3,484 3,457 Local facilities 11 14 60 58 49 Tot

  25. Slide 25: Earnings per share – Q1

    Earnings per share – Q1 MSEK, SEK* Q1 2016 EPS Net sales 2,999 Operating profit (before i.a.c) 400 1.35 Finance net -34 -0.11 Tax -71 -0.24 Result for the period 295 1.00 No. of shares, million 296 Earnings per share, SEK 1.00 Total tax charge 19% (25%), paid tax 7% (2%) of EBT 25 Dometic Group Inte

  26. Slide 26: Financial Targets

    Financial Targets Mid/long term FY 2014 FY 2015 Q1 2016 Financial target Net Sales Growth 5% 8% 5% 5% EBIT Margin 11.6 % 12.3 % 13.3 % 15 % Net Debt / EBITDA 7.5x 2.4x 2.4x 2.0x Dividend Policy - No dividend - 40 % 26 Dometic Group Interim Presentation - Q1 2016

  27. Slide 27: Summary & outlook

    Summary & outlook  Profit improvements.  Margin improvement in seven out of eight businesses.  Strong yield from internal initiatives.  Growing main markets.  Cash flow according to plan.  Strengthened balance sheet.  Continue to assess our businesses from a core and profitability perspective

  28. Slide 28: Q&A

    Q&A 28 Dometic Group Interim Presentation - Q1 2016

  29. Slide 29: Appendix

    APPENDIX Dometic GROUP

  30. Slide 30: Appendix A Quarterly Summary Key Financials

    Appendix A Quarterly Summary Key Financials Q1 Q1 LTM FY SEK million 2016 2015 2016 2015 Net sales 2,999 2,875 11,610 11,486 EBITDA 473 495 1,705 1,727 % of net sales 15.8% 17.2% 14.7% 15.0% EBITDA before items affecting comparability 473 438 1,738 1,703 % of net sales 15.8% 15.3% 15.0% 14.8% Operat

  31. Slide 31: Appendix B Group P&L

    Appendix B Group P&L Q1 Q1 FY SEK million 2016 2015 2015 Net sales 2,999 2,875 11,486 Cost of goods sold -2,088 -2,049 -8,127 Gross Profit 911 826 3,359 Sales expenses -371 -346 -1,433 Administrative expenses -138 -119 -510 Other operating income and expenses 15 22 64 Items affecting comparability 0

  32. Slide 32: Disclaimer

    Disclaimer This document contains statements that constitute forward looking statements. These statements appear in a number of places in this document and include statements regarding the intent, belief or current expectations of the customer base, estimates regarding future growth in the different

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