Ariston Holding Nv · MIL:ARIS
Ariston Holding Nv — H1 2024 Earnings Presentation
28 slides from Ariston Holding Nv's earnings presentation, Aug 1, 2024
Slide 1: Second Quarter and First Half 2024 Results
SECOND QUARTER AND FIRST HALF 2024 RESULTS 1ST AUGUST 2024
Slide 2: Agenda
AGENDA Highlights Financials Management Actions and Outlook Appendix 2
Slide 3: Prolonged weak markets in Q2; 2024 guidance updated, mid-term outlook intact
PROLONGED WEAK MARKETS IN Q2; 2024 GUIDANCE UPDATED, MID-TERM OUTLOOK INTACT Prolonged strongly negative market, mainly in heating across Europe: Net 621 €M in Q2 remarkable normalization after last years’ exceptional peak, coupled revenues -17% YoY LfL1 with destocking and regulatory changes in our
Slide 4: Agenda
AGENDA Highlights Financials Management Actions and Outlook Appendix 4
Slide 5: Balanced exposure to both heating and water heating markets
BALANCED EXPOSURE TO BOTH HEATING AND WATER HEATING MARKETS FY 2023 THERMAL COMFORT DIVISION Heating (and Air Treatment) Water Heating 94% Heat Pumps Hybrid systems Boilers ~3€BN REVENUES FY 2023 Electric Heat Pumps Gas Solar storage & instant storage & instant 3% 3% Services & Parts COMPONENTS DIVI
Slide 6: 2024 European heating markets normalizing after exceptional peak
2024 EUROPEAN HEATING MARKETS NORMALIZING AFTER EXCEPTIONAL PEAK ‘000 PCS Germany1 example: Heating generators markets (volume) Gas & Oil, solid fuel Heat Pump +34% Comments 1,400 • Historically (2013-22): +4% volume growth, replacement 1,200 market towards higher efficiency and renewables +4% solut
Slide 7: Market normalization continuing in Q2
MARKET NORMALIZATION CONTINUING IN Q2 NET REVENUES, €M1 -17.0% 748 621 Q2 -16.9% -0.1% Q2 comments • Heating: prolonged weak markets, even beyond initial expectations, particularly acute Organic FX in Heat Pumps in Europe Q2 2023 Q2 2024 • Water heating: more resilient -15.5% • Services: upward tren
Slide 8: European markets still negative, mainly in heating
EUROPEAN MARKETS STILL NEGATIVE, MAINLY IN HEATING Share of net revenues, NET REVENUES, €M1 %, H1 2024 Europe Asia Pacific & MEA Americas 72% 18% 10% -19.2% 1,131 914 -20.3% 561 447 -8.3% -11.8% +4.5% 254 233 +5.0% 132 116 123 128 55 58 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 Q2
Slide 9: Q2 Adj. EBIT affected by market context
Q2 ADJ. EBIT AFFECTED BY MARKET CONTEXT €M1, % OF NET REVENUES Adj. EBIT Q2 comments -62.3% • Weak markets leading to negative operating leverage effect, 151 enhanced by destocking, country mix, labour inflation 10.0% 1.0 • Historical H1-H2 seasonality, profitability generation concentrated 0.9 in H
Slide 10: FCF positively impacted by inventories reduction and CapEx optimization
FCF POSITIVELY IMPACTED BY INVENTORIES REDUCTION AND CAPEX OPTIMIZATION €M1 Free Cash Flow Q2 comments • Main levers for FCF improvement: – Inventories reduction – CapEx optimization 27 • High focus on NWC reduction despite decreasing volumes, reversed 30 typical Q2 upward seasonality 20 6 10 Net Wo
Slide 11: Net debt: FCF seasonality and dividends payment
NET DEBT: FCF SEASONALITY AND DIVIDENDS PAYMENT €M Non-cash items include: MtM, IFRS16 variation and exchange rate effect on the Net Financial Indebtedness -575 -24 -26 -63 -14 14 -688 Adj. net cash/(Debt) FCF Cash outflow Dividends Financial, FX Non-cash items Adj. net cash/(Debt) 31 Dec 2023 2 30
Slide 12: Sound balance sheet
SOUND BALANCE SHEET €M 4 Q2 comments • Liquidity ‒ Optimized with early repayment of mid / 461 254 long-term debt Liquidity 234 ‒ Decreased mainly due to dividends payment • +0.9 €BN committed unused credit lines to fuel organic & inorganic growth Debt -937 -975 • Non-current bank debt duration at 4
Slide 13: Agenda
AGENDA Highlights Financials Management Actions and Outlook Appendix 13
Slide 14: Enhanced focus on efficiency initiatives, while continuing to work for future
ENHANCED FOCUS ON EFFICIENCY INITIATIVES, WHILE CONTINUING TO WORK FOR FUTURE Updates on efficiency initiatives + Working for the future Wolf & Brink integration synergies 70-80 €M impact in 2024 • Launched ELCO brand natural refrigerant Heat Pump (R290), OpEx Immediate impact: developed from Wolf d
Slide 15: Market trends: recovery postponed, fundamentals confirmed for mid-term
MARKET TRENDS: RECOVERY POSTPONED, FUNDAMENTALS CONFIRMED FOR MID-TERM Geografical exposure % H1 2024 Product exposure H2 2024 market Mid-term market net revenues • Heating: continued rebound Heating: • Market back to historical growth rates • Water Heating: more resilient Europe 1 72% relative majo
Slide 16: 2024 guidance update, mid-term confirmed
2024 GUIDANCE UPDATE, MID-TERM CONFIRMED 2024: transition year, negative market momentum with long “U” shape Mid-term: fundamentals remain strong, as confirmed by the Energy Performance of Building Directive 2024 guidance Top line • H2: in the worst case scenario in line with H1, potential recovery
Slide 17: Agenda
AGENDA Highlights Financials Management Actions and Outlook Appendix 17
Slide 18: Net revenues by division
NET REVENUES BY DIVISION Share of net revenues, NET REVENUES, €M1 %, H1 2024 Thermal Comfort Burners Components 94% 3% 3% -15.9% 1,416 1,190 -17.6% 702 579 -13.6% -2.0% -0.3% -13.1% 43 42 48 42 21 21 25 21 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 Q2 H1 Q2 H1 Q2 H1 Q2 comments: Pro
Slide 19: Historical seasonality
HISTORICAL SEASONALITY Net revenues Adj. EBIT Cumulated FCF Quarterly weight on FY Quarterly weight on FY Quarterly trend Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1H 9M FY Average 2017-23 Average 2017-23 Average 2017-23 Demand for heating-related products Operating leverage gives margins an The last quarter of th
Slide 20: Q2 reclassified income statement
Q2 RECLASSIFIED INCOME STATEMENT NET REVENUES, €M1 4 Q2 2024 Q2 2023 % change Net revenue 621.2 748.0 (17.0%) EBITDA 7.6 102.7 (92.7%) % margin 1.2% 13.7% Adjusted EBITDA 54.9 105.9 (48.2%) % margin 8.8% 14.2% EBIT (26.2) 73.6 n.s. % margin (4.2%) 9.8% Adjusted EBIT 27.0 78.1 (65.6%) % margin 4.3% 1
Slide 21: H1 income statement
H1 INCOME STATEMENT €M1 4 Income statement H1 20241 H1 2023 % change Net revenue 1,274.4 1,525.6 (16.5%) Comments EBITDA 64.4 202.2 (68.2%) % margin 5.1% 13.3% • Reported figures: Ariston Thermo Rus LLC Adjusted EBITDA 113.2 206.7 (45.2%) deconsolidated from end-April in 2024; % margin 8.9% 13.5% st
Slide 22: Reclassified H1 cash flow statement
RECLASSIFIED H1 CASH FLOW STATEMENT €M1 H1 20241 H1 2023 Change EBITDA 64.4 202.2 (137.8) Comments • High focus on NWC reduction Tax paid (19.2) (31.5) 12.3 despite decreasing volumes • Positive NWC performance (lower absorption vs. 2023) Provisions and other changes from operating activities 34.32
Slide 23: Net financial indebtedness
NET FINANCIAL INDEBTEDNESS €M1 4 30/06/20241 31/12/2023 30/06/2023 Comments Liquidity 254.4 461.3 234.0 • Liquidity decreased mainly due to dividends minus: Current financial indebtedness (69.1) (122.5) (97.3) payment, early repayment of mid-long term debt • +0.9 €BN committed unused credit lines to
Slide 24: Historical quarterly growth by region
HISTORICAL QUARTERLY GROWTH BY REGION NET REVENUES, YOY, % OF €M 2021 2022 2023 2024 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q21 Europe +6.6% +18.1% +17.5% +18.2% +15.3% +14.1% +16.2% +59.6% +50.8% +46.7% +38.5% +48.5% -18.2% -20.3% Asia Pacific & +5.6% +20.3% +54.0% +52.3% +48.5% +18.0% +40.6% -1.4%
Slide 25: Shareholders and voting rights
SHAREHOLDERS AND VOTING RIGHTS AS OF 30 JUNE 2024 – AFTER MERLONI HOLDING JUNE 2024 SHARE ACQUISITION1 % stake mln shares Merloni Holding Spa Ordinary listed shares 16.1% 125.5 Amaranta Srl 2.1% Share capital: 225.0 15.5% Centrotec SE 372.6mln shares 22.1 65.1% 1.2% Ordinary non-listed shares Market
Slide 26: Our global presence
OUR GLOBAL PRESENCE FY2023 AT HOME AROUND THE WORLD FY2023 NET REVENUES 17% ASIA/PACIFIC & MEA 74%* EUROPE 40 COUNTRIES 160+ MARKETS 9% AMERICAS 29 PRODUCTION SITES 29 R&D CENTERS HEADQUARTERS LEGAL SEAT COMMERCIAL OPERATIONS PRODUCTION SITE PRODUCTION SITE + R&D Note: 29 production sites include Eg
Slide 27: Disclaimer
DISCLAIMER This document contains forward-looking statements that relate to future events and future operating, economic and financial results of Ariston Group. By their nature, forward-looking statements involve risk and uncertainty because they depend on the occurrence of future events and circums
Slide 28: Thank you
THANK YOU Investor Relations contacts Claudia Introvigne, Martino Bartolucci +39 02 8567 2317 investor.relations@ariston.com We kindly ask you to refrain from printing in order to minimize our impact on the environment. Thank you for your understanding and dedication to our sustainable future.