Fluidra, S.a. · BME:FDR
Fluidra — Investor Day (March 2022)
39 slides from Fluidra's investor day presentation, March 2022
Slide 1: To Create the Perfect Pool & Wellness Experience, Responsibly
TO CREATE THE PERFECT POOL & WELLNESS EXPERIENCE, RESPONSIBLY Investor Relations Materials March 2022
Slide 2: Disclaimer
DISCLAIMER This document is for information purposes 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 by Fluidra, S.A. ("Fluidra", and with all i
Slide 3: Global Leaders in a Growth Industry
GLOBAL LEADERS IN A GROWTH INDUSTRY Structurally attractive industry – long term 1 growth accelerated by new macro trends Global leader based on unique footprint and 2 offering Track record of growth, margin expansion 3 and value creation for shareholders 3
Slide 4: Step Change in Consumer Trends Accelerating Growth Drivers
STEP CHANGE IN CONSUMER TRENDS ACCELERATING GROWTH DRIVERS Market Dynamics & Drivers Market Step Change Consumer trends Large installed pool base with accelerating growth Flight to suburbs globally and in the USA to the sunbelt Average selling price continues to grow Increasing tendency towards outd
Slide 5: Sustainable Long Term Growth Supported by Increasing Installed Base
SUSTAINABLE LONG TERM GROWTH SUPPORTED BY INCREASING INSTALLED BASE Resiliency driven by large installed base Acceleration in the evolution of the pool base Residential inground pools in millions Split by market type 2020 New Build @ 20 '19 Volumes 21% 15 New Build above '19 10 Volumes 4% 5 Aftermar
Slide 6: Large Global Market – Highly Fragmented & Led by Fluidra
LARGE GLOBAL MARKET – HIGHLY FRAGMENTED & LED BY FLUIDRA NA & Europe make up for the bulk of the large Global market Fluidra is #1 in countries with 40% of global pool base and top 3 in 93% Split by market 2020 Rest of the World 21% Global Pool Europe Market NA 30% 49% €11.5bn Fluidra is the global
Slide 7: Global Industry Leader – Strengthened, and Invested, to Win
GLOBAL INDUSTRY LEADER – STRENGTHENED, AND INVESTED, TO WIN WHY FLUIDRA WINS 2015-19 2020 2021 Medium term growth Assumptions Market growth Broadest geographic footprint – access to all markets for 1 growth & diversification New Build growth Optimal business model and adapted “route to market” - 2 B
Slide 8: Blended Model Adapts & Optimizes Route to Market Across Globe
BLENDED MODEL ADAPTS & OPTIMIZES ROUTE TO MARKET ACROSS GLOBE Fluidra operates across the value chain with Significance of Pool Pro an adapted regional model • Critical route to market > 70% of channel share Fluidra presence • Pool Pro is key decision-maker for product North America: selection and s
Slide 9: Global R&D Leader with Focus on Value Enhancing IoT Ecosystem
GLOBAL R&D LEADER WITH FOCUS ON VALUE ENHANCING IOT ECOSYSTEM IoT benefits the entire pool ecosystem R&D capability with >200 engineers and 1 • Peace of mind >1,400 patents End User • Quality of service • Cost efficiency • 3x more patents than the next industry player 2 • Efficiency Pool Pro’s • P
Slide 10: M&A Track Record: Regular, Systematic Process - Creating Value
M&A TRACK RECORD: REGULAR, SYSTEMATIC PROCESS - CREATING VALUE Clear acquisition parameters Disciplined M&A strategy in a largely fragmented market Opportunity for product range & Culturally aligned • Objective to generate additional annual sales growth of customer expansion c. 1-2% per annum • Larg
Slide 11: Efficient Pool Systems Drive Replacement Cycle
EFFICIENT POOL SYSTEMS DRIVE REPLACEMENT CYCLE Automatically optimizes for peak Uses 70% efficiency Variable-Speed less energy iAquaLink Pumps Reduces chlorine use by Uses less than up to 50% Salt + Mineral Sanitization LED Lighting 50W of power Reduces 50% increase in evaporation by Jandy hydraulic
Slide 12: Proven Track Record of Growth and Margin Expansion
PROVEN TRACK RECORD OF GROWTH AND MARGIN EXPANSION - SET TO CONTINUE A Story of Growth, Accelerated in 2021 Proven Margin Expansion (€bn Sales) (Adjusted EBITDA % Sales) 2.5 27% €2.2bn 25.1% 25% >650 2.0 bps 23% 1.5 €1.3bn 21% 1.0 18.6% 19% 0.5 17% 0.0 15% (1) 2018 2019 2020 2021 2018 2019 2020 2021
Slide 13: High Quality Cash Returns on Investment – Set to Improve Further
HIGH QUALITY CASH RETURNS ON INVESTMENT – SET TO IMPROVE FURTHER Very strong operating, cash conversion and returns dynamics … • Delivering Growth & Avg. FCF conversion1 ROCE2 Quality of Returns 83% FCF conversion at - Fluidra leads a fast-growing normalized 6% sales growth industry 22% >90% 66% - A
Slide 14: Medium-Term Strategic & Financial Objectives Summary
MEDIUM-TERM STRATEGIC & FINANCIAL OBJECTIVES SUMMARY > Industry, leveraging global footprint Operating and financial performance Growth Focus on North America expansion Past Step change Future Drive by innovation, IoT, Commercial Pool Medium 2017-19 20202 20212 2022E Term Continued execution
Slide 15: Appendix
APPENDIX FLUIDRA CAPITAL MARKETS DAY
Slide 16: Responsibility Blueprint: Clear Commitments in Each ESG Vertical
RESPONSIBILITY BLUEPRINT: CLEAR COMMITMENTS IN EACH ESG VERTICAL Environment Social Governance Carbon neutral Zero net wage gap Rating Be a carbon neutral company in Equal pay for equal work Reach a score of 80 in 2027 (Scope 1 & 2) and by 2050 between men and women by S&P in 2030 (Scope 3) 2024 − 2
Slide 17: CMP Acquisition Case Study (Q1 2021)
CMP ACQUISITION CASE STUDY (Q1 2021) – MEETS ALL OUR CRITERIA Our Criteria & CMP Opportunity Fast-growing business - attractive adjacent segment (sales by segment) Expands Group North America Footprint: US 1 manufacturer of solutions for recreational water industry • 2016-20 Sales CAGR of Product ra
Slide 18: S.R. Smith Acquisition (Q3 2021)
S.R. SMITH ACQUISITION (Q3 2021) S.R. Smith Acquisition Rationale Sales by segment Complementary pool deck business accelerates 1 growth in the US Accelerate commercial pool business in North $103m 2 America and provides a start in Australia Significant revenue synergies (>$10M) as well as 3 cost sy
Slide 19: Ownership Structure and Board Composition
OWNERSHIP STRUCTURE AND BOARD COMPOSITION Ownership structure(1) Board Composition(1) 12 members Bárbara Borra Free float 60.4% Eloi Planes Esther Berrozpe (Executive Chairman) Bernardo Corbera Bruce Brooks Jorge Constans (CEO) Bernat Garrigós Steven M. Langman Gabriel López Founding Óscar Serra Jos
Slide 20: US GAAP to IFRS - Key Financial Differences for Fluidra
US GAAP TO IFRS - KEY FINANCIAL DIFFERENCES FOR FLUIDRA €M 2021 Adjusted EBITDA 548.8 Lease expense (29.3) Lease expenses not included in P&L under IFRS 16 R&D expense (12.8) Capitalized R&D expenses Adjusted EBITDA (US GAAP comparable) 506.7 20
Slide 21: FY 2021 Results
FY 2021 RESULTS February 28th 2022
Slide 22: Key Messages
FY RESULTS 2021 Key Messages 1. Excellent 2021 results with all our 2022 targets more than exceeded one year in advance. 2. Supply chain management and flexibility to adapt and increase capacity enabled Fluidra to service extraordinary demand from customers and achieve record growth. 3. Price increa
Slide 23: 2018-2022 Strategic Plan Outdone One Year Ahead of Time
FY RESULTS 2021 2018-2022 Strategic Plan Outdone One Year Ahead of Time Sales Adj. EBITDA Margin Cash Net Profit 2022 Target €1.7Bn 22% (1) €160M 2021 Actual €2.2Bn 25.1% €337M FCF Net Debt ROCE 2022 Target €247M 2.0x >20% 2021 Actual €363M 1.9x 22.3% Strong Outlook for 2022: Global Leader in Attrac
Slide 24: FY Financial Highlights
FY RESULTS 2021 FY Financial Highlights Outstanding Operating Leverage & Cash Generation in 2021 • Strong Sales growth in Q4, boosted by continued demand momentum in Evol. Const. FX & Residential Pool. €M 2020 2021 21/20 Perimeter • EBITDA and EBITA showed excellent operating leverage despite inflat
Slide 25: Highlights of the Quarter
FY RESULTS 2021 Highlights of the Quarter Robust Business Performance Accretive Capital Allocation ESG “Responsibility Blueprint” Plan for 2020-2026 • Confirmation of step change with continuation • Second dividend paid in November, taking DPS of strong growth across all geographies in the for 2021
Slide 26: Sales by Geography
FY RESULTS 2021 Sales by Geography Solid Quarterly Growth in All Geographies to Complete an Excellent Year % % Evol. Const. FX & • Southern Europe, excellent Q4 €M 2020 2021 Sales Sales 21/20 Perimeter performance in the quarter across all regions led by France. Southern Europe 64 19% 81 17% 26.8% 2
Slide 27: Sales by Business Unit
FY RESULTS 2021 Sales by Business Unit Residential Drives Growth % % Q4 €M 2020 2021 Evol. 21/20 • Residential Pool grew strongly in the Sales Sales quarter backed by continuous robust Pool & Wellness 337 98% 473 98% 40.6% demand and inorganic activity. Solid Residential 250 72% 364 75% 46.0% growth
Slide 28: FY Results
FY RESULTS 2021 FY Results Increasing Operating Leverage Leads to Higher Profitability • Great Sales growth in 2021 led by % % Evol. Northern Hemisphere. €M 2020 2021 Sales Sales 21/20 Sales 1,488.1 100% 2,186.9 100% 47.0% • Gross Margin expansion, with early price increases and value improvement Gr
Slide 29: Net Working Capital
FY RESULTS 2021 Net Working Capital Good NWC Management Throughout the Year in an Inflationary and Supply Challenged Environment • Operating Net Working Capital ratio to Sales increased by c.50 bps due to M&A Evol. dynamics. Acquisitions represent €69M December €M 2020 2021 21/20 with Pro Forma NWC/
Slide 30: Cash Flow and Net Debt FY
FY RESULTS 2021 Cash Flow and Net Debt FY Strong Cash Flow Generation Enables M&A and Dividend Uplift €M 2020 2021 € Evol. 21/20 • Excellent Operating Cash Flow Reported EBITDA 302.1 506.4 204.3 performance, mainly driven by operating Net Interest Expense Paid (34.2) (33.2) 1.0 performance. Corporat
Slide 31: Outlook and 2022 Guidance
FY RESULTS 2021 Outlook and 2022 Guidance 1. Early data from January and February suggests demand remains strong. 2022 2. Positive momentum continues for New Builds Comments with solid builders' backlog, Aftermarket Guidance driven by average ticket increase, and + Mid single digit run-rate 2021 M&A
Slide 32: Conclusions
FY RESULTS 2021 Conclusions 1. Excellent 2021 results. Extraordinary efforts to service our customers rewarded. 2. 2022 sales off to a strong start. Builders’ backlog, price initiatives and run rate of M&A provide solid foundation for 2022. 3. Continued efforts and investments to navigate supply-cha
Slide 33: Appendix
FY RESULTS 2021 Appendix FY 2021 RESULTS 28/02/2022 33
Slide 34: (I) Sales by Geography
FY RESULTS 2021 (I) Sales by Geography Constant Const. FX & Q4 Evol. 21/20 Const. FX Perimeter Perimeter Southern Europe 26.8% 26.8% 25.9% 25.9% Rest of Europe 20.0% 17.2% 25.9% 22.7% North America 66.4% 62.1% 25.7% 22.5% Rest of the World 15.6% 12.2% 9.8% 6.4% Total 40.0% 36.9% 21.7% 19.0% Constant
Slide 35: (II) Reported Profit & Loss Account FY
FY RESULTS 2021 (II) Reported Profit & Loss Account FY €M 2020 % Sales 2021 % Sales Evol. 21/20 Sales 1,488.1 100% 2,186.9 100% 47.0% Gross Margin 786.1 52.8% 1,155.5 52.8% 47.0% Opex before Dep. & Amort. 480.3 32.3% 648.8 29.7% 35.1% Provisions for Bad Debt 3.7 0.2% 0.4 0.0% (90.3%) Reported EBITDA
Slide 36: (III) Reconciliation to Reported EBITDA FY
FY RESULTS 2021 (III) Reconciliation to Reported EBITDA FY €M 2020 2021 Evol. 21/20 EBITDA 320.8 548.8 71.1% Integration Related Non-Recurring Expense (5.1) (15.5) 203.1% Other & FX impact on Non-Recurring Expense (0.5) 0.0 (108.7%) Profit/Loss from Sales of Subsidiaries (0.7) - (100.0%) Stock Based
Slide 37: (IV) Reconciliation of Reported to Cash Net Profit and Cash EPS FY
FY RESULTS 2021 (IV) Reconciliation of Reported to Cash Net Profit and Cash EPS FY €M 2020 2021 Evol. 21/20 Reported Net Profit from Continued Operations 96.4 252.4 161.8% Integration Related & Other Non-Recurring Expense 5.6 15.5 176.0% Stock Based Compensation 9.1 26.5 191.5% Run Rate Synergies 3.
Slide 38: (V) Reported Balance Sheet
FY RESULTS 2021 (V) Reported Balance Sheet Assets 12/2020 12/2021 Liabilities 12/2020 12/2021 PPE & Rights of Use 222.6 314.4 Share Capital 195.6 195.6 Goodwill 1,075.5 1,316.5 Share Premium 1,148.6 1,148.6 Other Intangible Assets 641.7 899.7 Retained Earnings 227.6 436.0 Other Non-Current Assets 98
Slide 39: Thanks For Your Attention
Thanks For Your Attention +34 93 724 39 00 Investor_relations@fluidra.com Avda. Alcalde Barnils 69 - 08174 Sant Cugat (Barcelona) www.fluidra.com