Flugger Group A/s Class B · OMXCOP:FLUG_B
Flugger Group A/s Class B — Q2 2022/23 Earnings Presentation
19 slides from Flugger Group A/s Class B's earnings presentation, November 2022
Slide 1: Flügger Group Investor presentation Q2 2022/23
Q4 2021/22 Flügger Group Investor presentation Q2 2022/23
Slide 2: Flügger at a glance
Investor presentation Q2 2022/23 Flügger at a glance Key LTM figures Q2 2022/23 Flügger’s business model Revenue mDKK EBIT* mDKK Production Sales channels Customers Own stores 2,560 96 Franchise stores BtB E-commerce R&D BtC Full-time employees Markets DIY etc. 2,278 17 Brand examples Segment 1 No.
Slide 3: Q2 22/23 highlights
Investor presentation Q2 2022/23 Q2 22/23 highlights Revenue (mDKK) EBIT (mDKK) Own & franchise stores (#) +7% -28% -6% 657 703 67 388 366 48 241 245 Own stores 147 121 Franchise Q2 21/22 Q2 22/23 Q2 21/22 Q2 22/23 Q2 21/22 Q2 22/23 Gross Margin (%) EBIT-margin (%) ROCE* (%) -3.6pp -3.4pp -10.9pp 51
Slide 4: H1 22/23 highlights
Investor presentation Q2 2022/23 H1 22/23 highlights Revenue (mDKK) EBIT (mDKK) Own & franchise stores (#) +3% -38.2% -6% 1,393 1,433 191 388 366 118 241 245 Own stores 147 121 Franchise H1 21/22 H1 22/23 H1 21/22 H1 22/23 H1 21/22 H1 22/23 Gross Margin (%) EBIT-margin (%) ROCE* (%) -4.5pp -5.5pp -1
Slide 5: Heavy increase in cost base market prices over the past two years
Investor presentation Q2 2022/23 Heavy increase in cost base market prices over the past two years Avg. chemical index up c. 80% vs. 2020/21, but expected to decline in 23/24; effects EBIT, but balanced efforts initiated 2022/23 ▪ Approx. 40% of Flügger raw material spend is impacted by the Avg. che
Slide 6: Robust multi-pronged business model catering to different customer groups
Investor presentation Q2 2022/23 Flügger has previously demonstrated to have a robust multi-pronged business model, catering to different customer groups across channels It took approx. 1.5 years to hit financial bottom in the 2008 financial crisis (effect from Q2’08/09), and 1.5 years to get back M
Slide 7: Q2 22/23 highlights – Organic growth of 5% and earnings impacted
Investor presentation Q2 2022/23 Q2 22/23 highlights – Organic growth of 5% and earnings impacted unfavourably by customer mix and higher cost levels Flügger Group Results Sales growth in professionals and lower demand from consumers mDKK Q2 22/23 Q2 21/22 Change ▪ Sales impacted by the slowdown and
Slide 8: H1 22/23 highlights – Sales in line with last year, earnings impacted
Investor presentation Q2 2022/23 H1 22/23 highlights – Sales performance in line with last year and earnings impacted unfavourably by customer mix and higher cost levels Flügger Group Results Sales overall in line with last year mDKK H1 22/23 H1 21/22 Change ▪ The uncertainty in the market weakened
Slide 9: Net sales increased 7% driven by organic growth in professional segment
Investor presentation Q2 2022/23 Net sales increased 7% compared to last year driven by organic growth in the professional segment Group sales development Net Sales Net Sales H1 revenue effects (mDKK) Revenue Revenue, LTM mDKK LTM mDKK 750 2,700 1.433 700 14 0 2,400 1.393 26 650 600 2,100 550 1,800
Slide 10: Segment 1 Own Stores & Resellers: Q2 & H1 22/23
Investor presentation Q2 2022/23 Segment 1 Own Stores & Resellers: Q2 & H1 22/23 Sales development by geography in Segment 1 ▪ Q2 realized positive organic growth, whilst flat organic growth for H1 Organic Reported Revenue (mDKK) Q2 21/22 Currency M&A Q2 22/23 Growth Growth ▪ Denmark realised negati
Slide 11: Segment 2 DIY: Q2 & H1 22/23
Investor presentation Q2 2022/23 Segment 2 DIY: Q2 & H1 22/23 Sales development by geography in Segment 2 ▪ The segment realised flat organic growth in Q2, and negative organic growth YTD of -7%, driven by a normalisation compared to a very high Organic Reported Revenue (mDKK) Q2 21/22 Currency M&A
Slide 12: Segment 3 Eskaro Group AB: Q2 & H1 22/23
Investor presentation Q2 2022/23 Segment 3 Eskaro Group AB: Q2 & H1 22/23 Sales development by geography in Segment 3 ▪ Revenue in segment 3 is generated solely by Eskaro Group Organic Reported Revenue (mDKK) Q2 21/22 Currency M&A Q2 22/23 Growth Growth ▪ Growth in Russia and Belarus impacted Russia
Slide 13: EBIT impacted by unfavorable customer mix and higher cost levels
Investor presentation Q2 2022/23 EBIT impacted by unfavorable customer mix and higher cost levels Group EBIT development EBIT* EBIT, quarterly EBIT, LTM EBIT LTM H1 EBIT effects (mDKK) mDKK mDKK 150 250 191 200 100 86 150 118 50 100 5 40 19 50 4 0 0 -50 -50 -100 -100 H1 GP PROD S&D Adm. Eskaro H1 Q1
Slide 14: NIBD impacted by working capital timing, lower earnings and CAPEX
Investor presentation Q2 2022/23 NIBD impacted by timing effects of working capital, lower earnings and CAPEX investments Financial solidity NIBD mDKK NIBD Equity ratio Equity ratio % 1 NIBD development compared to last quarter is driven by 400 100% timing in working capital, hence inventory build-u
Slide 15: Price/earnings ratio driven mainly by write-downs related to Eskaro
Investor presentation Q2 2022/23 Price/earnings ratio driven mainly by write-downs related to Eskaro and the lower earnings Development in price/earnings Stock price incl. reinvested dividends (DKK) P/E 900 Accumulated dividend Dividend/share proposed 191x Stock price, ultimo 800 700 15 15 15 15 15
Slide 16: Share price development
Investor presentation Q2 2022/23 Share price development Flügger’s share price development Flügger’s relative share price development (indexed) Share price Price indexed 800 260 Share price (DKK) Flügger 240 Volume (# of shares) Akzo Nobel 700 220 PPG 200 Sherwin Williams 180 600 160 140 500 120 100
Slide 17: ROCE development driven by lower earnings and higher investments
Investor presentation Q2 2022/23 ROCE development driven by the lower earnings and higher investments Financial solidity ROCE* % RoCE* EBIT-Margin* (%) EBIT Margin* % 1 ROCE is negatively impacted by the lower EBIT level for the last 12 months 30% 12% 2 ROCE diluted by the acquisition of Eskaro, Lit
Slide 18: 2022/23 Guidance: Revenue guidance maintained, EBIT guidance updated
Investor presentation Q2 2022/23 2022/23 Guidance: Revenue guidance of 2,500m-2,700m maintained EBIT guidance updated from 100-150m to 50-80m Selected financial metrics (DKK) for 2022/23 Key drivers for guidance ▪ EBIT guidance was updated 11 November from 100-150m to 50-80m; Updated guidance as of
Slide 19: Thank you for listening
Thank you for listening Please contact IR@flugger.com for any further questions or visit flugger.com/investor 19