Flugger Group A/s Class B · OMXCOP:FLUG_B
Flugger Group A/s Class B — H1 2021/22 Earnings Presentation
22 slides from Flugger Group A/s Class B's earnings presentation, Dec 16, 2021
Slide 1: IR presentation Q2
IR presentation Q2 December 2021
Slide 2: Flügger Management team
Flügger Management team The management team of Flügger Sune Schnack, CEO Poul Erik Stockfleth, CFO Ulf Schnack, CDO Previous experience Previous experience Previous experience 2
Slide 3: Flügger at a glance
Flügger at a glance Key LTM figures H1 20/21 Flügger’s Business model Revenue mDKK EBIT mDKK Production Sales channels Customers Own stores 2,377 219 Franchise stores BtB E-commerce R&D BtC Full-time employees Markets DIY etc. 2,526 17 Brand examples End of Q2 21/22 Segment 1 No. factories No. store
Slide 4: Flügger is an international player within decorative coatings
Flügger is an international player within decorative coatings Largest west markets (revenue DKKm) Largest east markets (revenue DKKm) Denmark = share of Russia Flügger revenue 795 171 #1 #2 #3 #1 #2 #3 Sweden Estonia 604 50 #1 #2 #3 #1 #2 #3 Norway Ukraine 239 117 #1 #2 #3 #1 #2 #4-5 Poland Belarus
Slide 5: Intensifying strategic initiatives will drive profitable growth & efficiency
Intensifying strategic initiatives will drive profitable growth & efficiency Key strategic initiatives towards an EBIT of 350 mDKK in 2023/24 Key strategic targets towards 2023/24 1 VALUE BASED PRICING Optimization of pricing across product and segments as well as focusing on margin enhancing initia
Slide 6: Q2 21/22 Highlights
Q2 21/22 Highlights Revenue (mDKK) EBIT (mDKK) Own & franchise stores (#) 20% +2% -12% 657 76 380 388 549 67 232 241 Own stores 148 147 Franchise Q2 20/21 Q2 21/22 Q2 20/21 Q2 21/22 Q2 20/21 Q2 21/22 Gross Margin (%) EBIT-margin (%) ROCE (%) -4.9pp +1.0pp -3.6pp 56.5 51.6 13.8 16.3 17.3 10.2 Q2 20/2
Slide 7: H1 21/22 Highlights
H1 21/22 Highlights Revenue (mDKK) EBIT (mDKK) Own & franchise stores (#) 18% -5% +2% 1,393 200 191 380 388 1,178 232 241 Own stores 148 147 Franchise H1 20/21 H1 21/22 H1 20/21 H1 21/22 H1 20/21 H1 21/22 Gross Margin (%) EBIT-margin (%) ROCE (%) -3.6pp +1.0pp -3.3pp 57.0 53.4 17.0 16.3 17.3 13.7 H1
Slide 8: Q2 21/22 highlights – Overall satisfactory sales performance
Q2 21/22 highlights – Overall satisfactory sales performance. Results remained impacted by Covid-19 related challenges across the Group Flügger Group Results Sales up 108mDKK driven by Eskaro mDKK Q2 21/22 Q2 20/21 Change ▪ Overall satisfactory sales performance driven by the Net sales 657 549 20% a
Slide 9: H1 21/22 highlights – Sales growth driven by acquired activities
H1 21/22 highlights – Sales growth driven by acquired activities. Earnings reflecting the accelerated cost increases & supply challenges Flügger Group Results Sales growth driven by acquired activities mDKK H1 21/22 H1 20/21 Change ▪ Overall sales performance as expected, driven by the Net sales 1.3
Slide 10: Net sales increased 18% in H1 compared to last year
Net sales increased 18% in H1 compared to last year, driven by the acquisition of Eskaro and Malgodt.dk Group sales development Net Sales Net Sales Net sales mDKK LTM mDKK mDKK 750 2.400 700 35 1.393 650 2.100 600 238 1.800 550 500 1.178 1.500 12 450 400 1.200 350 300 900 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 11: Segment Own Stores & Resellers: Q2 organic growth
Segment 1 Own Stores & Resellers: Q2 organic growth is mainly impacted by the normalization of sales following the Covid-19 effect in 21/22 Sales development per geographical segment ▪ Positive currency effect of 2%, as Organic Reported Revenue (mDKK) Q2 20/21 Currency M&A Q2 21/22 negative developm
Slide 12: Segment DIY: Q2 21/22 mainly impacted by normalization in sales
Segment 2 DIY: Q2 21/22 mainly impacted by normalization in sales to consumers Sales development per geographical segment ▪ Sales to private label in DIY stores were Organic Reported Revenue (mDKK) Q2 20/21 Currency M&A Q2 21/22 back at normalized level compared to Growth Growth very high demand in
Slide 13: Segment Eskaro Group AB: Q2 revenue of 108mDKK
Segment 3 Eskaro Group AB: Q2 The acquisition of Eskaro generated 108mDKK in revenue in Q2 21/22 Sales development per geographical segment ▪ Revenue in segment 3 is solely Organic Reported Revenue (mDKK) Q2 20/21 Currency M&A Q2 21/22 generated by the acquisition of Eskaro Growth Growth and include
Slide 14: Segment Own Stores & Resellers: H1 organic growth
Segment 1 Own Stores & Resellers: H1 organic growth is mainly impacted normalization of Consumer and Growth in the professional segment Sales development per geographical segment ▪ Overall positive currency impact, as Organic Reported Revenue (mDKK) H1 20/21 Currency M&A H1 21/22 currency headwind i
Slide 15: Segment DIY: H1 21/22 mainly impacted by normalization
Segment 2 DIY: H1 21/22 mainly impacted by normalization in sales to consumers Sales development per geographical segment ▪ Sales to private label in DIY stores were Organic Reported Revenue (mDKK) H1 20/21 Currency M&A H1 21/22 back at normalized level compared to Growth Growth very high demand in
Slide 16: Segment Eskaro Group AB: Revenue of 229mDKK in H1 21/22
Segment 3 Eskaro Group AB: The acquisition of Eskaro generated Revenue of 229mDKK in H1 21/22 Sales development per geographical segment ▪ Revenue in segment 3 is solely Organic Reported Revenue (mDKK) H1 20/21 Currency M&A H1 21/22 generated by the acquisition of Eskaro Growth Growth and includes 2
Slide 17: NIBD impacted by the acquisition of Eskaro
NIBD impacted by the aquisition of Eskaro. Balance sheet remain as a solid foundation for further possible acquisitions. Financial solidity NIBD* mDKK Equity ratio % 100 100% 50 50% 1 Balance sheet remain very solid with an equity ratio above 45% since 19/20 despite large acquisition 0 0% 2 2019/20
Slide 18: Earnings increase with stock price keeping the price/earnings stable around 13x
Earnings increase with stock price keeping the price/earnings stable around 13x Development in price/earnings and stock price (DKK) Stock price incl. reinvested dividends (DKK) 100 900 800 80 78x 700 600 60 500 400 40 37x 30x 300 27x 19x 21x 200 20 14x 13x 13x 13x 13x 100 0 0 12/13 13/14 14/15 15/16
Slide 19: Share price development
Share price development Flügger’s share price development Benchmarking to other industry players (indexed) Share price Price indexed 800 Share price (DKK) 160 Flügger Volume (# of shares) 140 Akzo Nobel 700 684 Avg. daily trading volume 1,852 PPG 120 % of total B-shares 0.08% Sherwin Williams Carlsb
Slide 20: Return on Capital Employed diluted by the acquisition of Eskaro
As expected Return on Capital Employed diluted by the acquisition of Eskaro. However, strong profitability and capital efficiency remains Financial solidity ROCE, % EBIT Margin,% 25% 20% 15% 20% 1 Q2 21/22 EBIT Margin (%) remain solid as expected after normalization of sales and increase in raw mate
Slide 21: Guidance for 2021/22 - EBIT guidance narrowed to 220m-250m
Guidance for 2021/22 - EBIT guidance narrowed to 220m-250m of the initial range of 220m-270m Selected financial metrics (DKK) for 2021/22 Key drivers and success factors • Earnings impacted by higher price on raw materials and transport, which are pushed to sales prices with a delayed Revenue 2,500m
Slide 22: Thank you for listening
Thank you for listening Please contact IR@flugger.com for any further questions or visit flugger.com/investor Q&A 22 22