Fluidra, S.a. · BME:FDR
Fluidra — Non-Deal Roadshow (March 2014)
40 slides from Fluidra's roadshow presentation, March 2014
Slide 1: Making Water Perform - March 2014
March 2014 MAKING WATER PERFORM FLUIDRA ® @ee-
Slide 2: Disclaimer
Disclaimer This document is for information 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 in accordance with International Financial Reporting S
Slide 3: Table of Contents
Table of Contents 1. Fluidra at a glance 2. Shareholder Structure 3. Business Model 4. Financial Performance 5. Strategy and Investment Highlights 3
Slide 4: 1. Fluidra at a glance
1. Fluidra at a glance 4
Slide 5: Fluidra at a Glance
Fluidra at a Glance Strong 2013 Sales: €592.7M (-5.7%) Financial 2013 EBITDA: €47.7M (-33.9%; normalized Ebitda: €61.3M) Performance 2013 Net Debt: €186.8m (+3.4%) International leader in distribution of solutions for Pool, Fluid Handling, Water Treatment Business and Irrigation Vertically
Slide 6: Summary Financials
Summary Financials Improving efficiency • Centralization of distribution and commercial platforms, as well as manufacturing facilities • Consolidation of manufacturing plants Improvement in top line performance and EBITDA uplift Sales (€m) EBITDA (€m) & EBITDA Margin Net Debt (€m) & Net Debt/EBITDA
Slide 7: 2. Shareholder Structure
2. Shareholder Structure 7
Slide 8: Shareholder Structure
Shareholder Structure The renewal of the shareholders’ agreement by the founding families and Banc Sabadell reflects their confidence in Fluidra’s growth strategy and in its future projects. Boyser 14.1% Free float 32.4% Edrem 13.5% Dispur 12.2% N+1 8.0% Aniol Banc Sabadell 10.1% 9.7% 8
Slide 9: 3. Business Model
3. Business Model 9
Slide 10: Fluidra in the Business Value Chain: an integrated model
Fluidra in the Business Value Chain: an integrated model Manufacturing & Logistics & R+D+i Distributor / B2B Projects Pool, Water Treatment, Irrigation and Fluid Handling Spa / Wellness and Industrial Local Large Distributors / Water Treatment Retailers & Installers (B2C; Mass Market) Builders Retai
Slide 11: Overview of Divisions and Business Units
Overview of Divisions and Business Units Divisions NOTH ASIA & EUROPE AMERICA & AUSTRALIA RoW FY 2013 Revenues €592.7M €410M €114M €69M (69%) (19%) (12%) €411M Design, production and distribution of all components for Pool – Wellness (69%) residential or commercial pools and wellness centers €60M
Slide 12: Distribution Network
Distribution Network Rest of the World 12% Spain 20% Asia & Australia 19% East Europe 5% North Europe South Europe 13% 31% Sales by geographical area 80% international sales Factories 125 branches in 41 countries: Alemania, Australia, Austria, Bélgica, Brasil, Bulgaria, Colombia, Chile, China, Chipr
Slide 13: Internationally recognized leadership on Pools
Internationally recognized leadership on Pools Some examples on Country Market Share (%) on Pool activity Fluidra Other 57% 60% 55% 31% 35% 29% 17% Spain Portugal France UK Italy Middle East Australia Market Position #1 #1 #1 #1 #1 #1 #1 13
Slide 14: Fluidra's Positioning in the Water Business
Fluidra’s Positioning in the Water Business 14
Slide 15: 4. Financial Performance
4. Financial Performance FLUIDRA @eec-
Slide 16: 2013 Results - Summary
2013 Results - Summary Sales: 2013 evolution is clearly impacted by FX (2.1%), Main Magnitudes Projects (1.4%) and economic situation and bad 2012 2013 Evol. weather conditions at the beginning of the season. €M Sales 628,8 592,7 -5,7% EBITDA includes the impact of the points mentioned above, plus t
Slide 17: 2013 Results – Normalization of EBITDA & Net Income
2013 Results – Normalization of EBITDA & Net Income In order to facilitate understanding of our accounts in this atypical year, we present a normalization of EBITDA and Net Profit. EBITDA reflects both the impact of closing-down of Projects, and of the losses generated by this activity during the ye
Slide 18: 2013 Results – Highlights
2013 Results – Highlights • Fluidra acquired VEICO, a company that manufactures pool accessories in the Brazilian state of Santa Caterina. It has sales figures of over Veico - 3 M euros and industrial facilities of 1,500 m2. Brasil • The estimated size of the Brazilian pool market is 200 M euros. •
Slide 19: 2013 Results – Consolidated Profit & Loss Account
2013 Results – Consolidated Profit & Loss Account 2012 2013 €M % sales €M % sales Evol.13/12 Sales 628,8 100,0% 592,7 100,0% -5,7% Gross Margin 313,6 49,9% 291,3 49,1% -7,1% Opex before Dep.& Amort. 235,8 37,5% 232,5 39,2% -1,4% Provisions for bad debt 5,7 0,9% 11,1 1,9% 95,8% EBITDA 72,2 11,5% 47,7
Slide 20: 2013 Results – Sales by Geographical Area
2013 Results – Sales by Geographical Area Fluidra Sales by Geographical Area Evolution 2012 % 2013 % €M 13/12 Spain 130,7 20,8% 122,2 20,6% -6,5% South Europe - Rest 200,5 31,9% 174,1 29,4% -13,2% Central & Northern Europe 85,0 13,5% 82,6 13,9% -2,8% Eastern Europe 30,5 4,8% 30,8 5,2% 1,0% Asia & Au
Slide 21: 2013 Results – Sales by Business Unit
2013 Results – Sales by Business Unit Sales by business units Evolution 2012 % of Total 2013 % of Total €M % Pool 421,0 67,0% 401,0 67,7% -4,7% - Private 344,2 54,7% 332,3 56,1% -3,5% - Commercial 76,8 12,2% 68,7 11,6% -10,5% Water Treatment 94,5 15,0% 89,3 15,1% -5,5% Irrigation 33,3 5,3% 33,1 5,6%
Slide 22: 2013 Results – Net Working Capital
2013 Results – Net Working Capital 245,1 Evol. Net Working Capital (€M) 242,9 2012 2013 13/12 200,8 €M Inventory 141,2 134,4 -4,8% 181,6 Accounts Receivable 149,0 145,7 -2,2% Accounts Payable 89,4 98,6 10,3% Net Working Capital 200,8 181,6 -9,6% 2012 2013 Positive evolution of NWC. Our efforts made
Slide 23: 2013 Results – Net Financial Debt & FCF
2013 Results – Net Financial Debt & FCF 245,1 2012 2013 Evol. 13/12 242,9 Net Financial Debt (€M) €M Net income 14,5 -10,2 -24,7 Depreciation (+) 46,3 39,9 -6,4 Increase (-) / Decrease (+) NWC 1,6 19,2 17,6 Capex (organic) -22,3 -22,1 0,3 Free Cash Flow pre-acquisitions 40,1 26,7 -13,4 Acquisitions
Slide 24: 2013 Results – Balance Sheet
2013 Results – Balance Sheet The group’s Balance Sheet includes all adjustments of the closing-down of Projects. Nevertheless, Fluidra maintains a sound structure which allows us to continue developing our business through of diversification and internationalization. Net Assets (€M) Equity & NFD (€M
Slide 25: 2013 Results – Highlights
2013 Results – Highlights Fluidra has decided to close down the activities of Turn Key Projects division. The Group will continue prescribing solutions and providing products and systems in this channel, although Fluidra leaves the civil works activities linked to it. The Group has implemented a maj
Slide 26: 2013 Results – Conclusions
2013 Results – Conclusions Year 2013 is affected by the closing-down of Projects. All related costs and expenses are included in 2013 accounts. Fluidra continues to develop its strategy deleveraging in Europe and investing internationally, within a framework of stable financial situation: Implement
Slide 27: 5. Strategy and Investments Highlights
5.Strategy and Investments Highlights 27
Slide 28: Strategy
Strategy 2016 Worldwide Water company serving our customers 2013 An international pool company with Europe as a main market 28
Slide 29: Strategy guidelines
Strategy guidelines Focus on emerging markets, both organic and through acquisitions Expand product range for the park driven by sustainability criteria Increase penetration of irrigation, domestic WT and fluid handling Develop channels based on current structure Acquisition strategy focused on Chin
Slide 30: International Leadership – Veico Brazil
International Leadership • Fluidra acquired VEICO (February 2013), company that makes accessories for pools in the Brazilian state of Santa Caterina. • Veico has a turnover of more than Euro 3M and industrial facilities of 1,500 square meters. Veico - • Veico gives us manufacturing capabilities in a
Slide 31: International Leadership – Latam
International Leadership Presence of Fluidra in Latam Mexico • Latam Division, Fluidra has decided to extend his presence in this area, Colombia with the aim to promote Latam activities in the Latin Brazil Division America market. This new market will bring capability of growth and development on th
Slide 32: Product Innovation
Product Innovation • AstralPool MAC is the only compact, modular device in the market that has all the components needed for the physical and chemical control of pool water in the most efficient way possible. • Its smart software enables all settings to be adjusted from a touchscreen and users thus
Slide 33: Product Innovation
Product Innovation • Launch of high range products "Viron" for U.S. and Australian residential markets, consisting of pumps, cartridge filters, control system with touchpad's, air conditioning, etc.. And characterized by a commitment to sustainability, energy efficiency and cutting edge technology,
Slide 34: Leverage Pool Distribution Network
Leverage Pool Distribution Network Distribution: New branch format Old Model: branch with relatively large storage surface and just want point for customer attention New Model: Self service format, with different areas for training, show room and exhibits Promotes cross-selling, becoming a one-stop
Slide 35: Become a player in Industrial FH in Asia
Become a player in Industrial FH in Asia Fluidra • Fluidra closed the signature of a joint venture in China, Fluidra Youli Fluid Systems (Wenzhou), dedicated to fluid handling in the Asian market and Youli an initial focus in the Chinese market •Industrial Fluid Handling - China: fragmented market o
Slide 36: Become a player in Industrial FH in Asia
Become a player in Industrial FH in Asia •Constitution of the Joint Venture (October 2012): Fluidra contributes Euro 4,8M and Youli contributes the manufacturing facility. Fluidra •There are several earn out payments conditional on results up to a maximum limit of Euro 14,9M Youli •2012: Euro 2,1M O
Slide 37: Operational Excellence
Operational Excellence • Asia Division, Fluidra has created this new division to promote Asia activities in the Asian market. This new structure will bring Division together the operations on the continent. Presence of Fluidra in Asia 37
Slide 38: Improve Margins and Cash Flow Generation
Improve Margins and Cash Flow Generation Lean Management Program: Key Principles Commitment Potential to Improve Commitment from senior and middle Aggressive optimization objectives management, as well as employees “Sky is the limit” in terms of potential to Pragmatic approach: focus on “real-life”
Slide 39: Investment Highlights
Investment Highlights International leadership High Quality Recurrent revenues Business Clear road map Financial strength and proven flexibility to increase shareholder’s value Consolidator in a fragmented market Attractive Industry Growth markets 39
Slide 40: Contact
Contact: Avda. Francesc Macià, 60, planta 20 08208 Sabadell (Barcelona) Tel: +34 937 243 900 e-mail: investor_relations@fluidra.com 40