Arbonia Ag · SIX:ARBN
Arbonia — FY2021 Earnings Presentation
47 slides from Arbonia's earnings presentation, Mar 1, 2022
Slide 1: Annual results 2021
Annual results 2021 Alexander von Witzleben, CEO & Daniel Wüest, CFO 1 March 2022
Slide 2: Strong profitable growth in 2021
Strong profitable growth in 2021 Overview key metrics (CHF M) Net revenues EBITDA1 Net debt/cash Capex2 Free cash flow 11.0% 11.3% 0.9x -0.7x +14% EBITDA Margin Leverage Ratio 1′186 +381% 1′038 +31% +17% 253 134 141 143 114 86 53 113 -93 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 Strong growt
Slide 3: Agenda
Agenda 1. Group results 2021 2. Division highlights 3. Outlook & Guidance Questions Annual results 2021 | 1 March 2022 3
Slide 4: Income Statement without one-time effects
Income Statement Without one-time effects (CHF M) 2021 in % 2020 in % I Revenues Net revenues I 1’186.2 100.0 1’038.4 100.0 • Net revenues up 14.2% - II almost no FX effects Cost of material and goods -548.6 -46.3 -454.0 -43.7 II II Cost base Personnel expenses -378.8 -31.9 -345.3 -33.2 II • Higher
Slide 5: Income Statement as reported
Income Statement As reported (CHF M) 2021 in % 2020 in % I One-time Effects Net revenues 1’186.2 100.0 1’038.4 100.0 • One-time costs with CHF I Cost of material and goods -548.9 -46.3 -454.0 -43.7 9.6 M negative EBITDA I effect mainly related to Personnel expenses -386.7 -32.6 -345.6 -33.3 relocati
Slide 6: 2021 summary: Performance by Group and Division
2021 summary Performance by Group and Division (CHF M1,2) +12.1% +14.2% +13.7% +9.7% 1'186 1'058 1'038 +19.2% +8.3% Net Revenues 1,000 631 555 529 503 509 552 500 0 2019 2020 2021 2019 2020 2021 2019 2020 2021 +24.7% +17.3% +19.7% +29.1% 134.3 +15.4% EBITDA2 107.7 114.5 +18.5% (incl. margin) 100 70.
Slide 7: Net revenues by Division and Region
Net revenues by Division and Region German market contributing half and DACH 2/3 of revenues Net revenues by Division Net revenues by Region 11% (12%) 8% (7%) 47% 53% 8% 50% (49%) (51%) (7%) (52%) 9% (7%) 10% 14% (10%) (15%) HVAC Doors Germany Benelux Switzerland Eastern Europe2 Southern Europe1 RoW
Slide 8: Overview organic revenue growth FY 2019-2021
Overview organic revenue1 growth FY 2019-2021 In CHF M1 +13.4% +11.6% • Strong growth compared to 2020 but more remarkable also to 2019 Arbonia (pre-Covid) Group 16.5% • H1 2020 exceptionally strong due to 7.2% base effect (lock-down H1 2020) 2019 2020 2021 H1 2021 H2 2021 • Remarkable strong H2 202
Slide 9: Organic growth
Organic growth Marginally higher volume than price effects on Group level Net revenues Δ as reported FX Acq. Organic 2021 2020 Year effect effect growth1 in CHF M Total Arbonia 1'186.2 1′038.4 +14.2% +0.6% +2.0% +11.6% HVAC 630.5 529.1 +19.2% +0.7% +2.4% +16.1% Doors 551.8 509.3 +8.3% +0.6% +0.8% +6
Slide 10: Balance sheet
Balance sheet In CHF M 2′000 1′515 1′623 I Assets 1′500 36.5% • Increase of asset base by c. CHF 108 M 39.4% mainly due to cash inflow from sale of 1′000 Windows Division, inventories, capex and 500 63.5% acquisitions 60.6% • Overall negative FX translation effects (EUR, 0 RUB, PLN, CZK) on asset ba
Slide 11: Net cash as of December 2021
Net cash as of December 2021 In CHF M 200 184 2.0x I Net cash (debt) 150 141 59 1.5x • Cash proceeds and reduction of debt due to sale of Windows Division led to a substantial 59 0.97 net cash position by the end of 2021 100 1.0x • Despite accelerated capex program and 0.89 125 balance sheet optimis
Slide 12: Net cash development
Net cash development In CHF M Net Debt (12 2020) 141 Cash proceeds sale Windows -334 Elimination IFRS 16 Windows -17 Capex1 113 Purchase Garant factory 30 Elimination IFRS Garant factory -12 Sale real estate -3 Acquisitions 28 Dividends 32 Purchase treasury shares 6 Cancellation factoring 16 CF from
Slide 13: Cash flow
Cash flow In CHF M I Cash flow from operating activities -48.5 M • Cash flow from operating activities negatively 150 impacted by missing contribution of Windows 100 Division (c. CHF 40 M net), increase of NWC 141.3 (over-stocking, revaluation/inflation of stock, 50 111.8 92.8 abolishment of factori
Slide 14: ESG-reporting Highlights 2021
ESG-reporting Highlights 2021 Innovative products and solutions CO2 and Energy • Share of new products in -11.2% • Emissions per CHF net +20% relation to all products sold revenue decreased by 122 held at roughly 15%1 0.063 11.2% from 0.063 to 0.056 0.056 102 • The new heat pump • Total emissions (S
Slide 15: Accomplishments 2021
Sustainability Highlights of our commitments and activities Commitments Accomplishments 2021 • Defined overarching sustainability goals and ambitions on group, divisional and company level • Calculated a concrete CO2 reduction path (for Scope 1 & 2) based Commitment to reducing operational on the Sc
Slide 16: Agenda
Agenda 1. Group results 2021 2. Division highlights 3. Outlook & Guidance Questions Annual results 2021 | 1 March 2022 16
Slide 17: Both Divisions contributing to a strong 2021
Both Divisions contributing to a strong 2021 2021 full-year, without one-time effects Heating, Ventilation and Doors: Wood & Group Air Conditioning (HVAC) Glass solutions (after Corp. Serv.) Net revenues CHF 630.5M CHF 551.8M CHF 1'186.2M EBITDA CHF 70.6M (11.2%) CHF 76.3M (13.8%) CHF 134.3M (11.3%)
Slide 18: Increasing Opočno (CZ) heat pump production
Increasing Opočno (CZ) heat pump production in a first step to ~10'000 and ultimately ~20'000 units p.a. Annual results 2021 | 1 March 2022 18
Slide 19: HVAC: Continuing growth in revenues and profitability
HVAC: Continuing growth in revenues and profitability Ambition 2026 - Vasco Group (BE) - Cicsa (ES) Mile- - Tecna (ES) - Termovent (RS) stones Net revenues: CAGR ~7% > CHF 800 M 631 506 555 529 408 EBITDA: Net > CHF 100 M revenues (in CHF M) Growth: 23.8% 9.7% -4.6% 19.2% EBITDA margin: > 12.5% Org.
Slide 20: HVAC: Growth projects on track
HVAC: Growth projects on track Project pipeline Status Revenues EBITDA CHF M CHF M 2021 631 70 1 Grow to 20'000 produced heat pumps On track … 2 Launch redox flow battery On track … 3 Expand with AHU Sabiana On track … 4 Footprint optimisation radiators On track … Overall market growth & additional
Slide 21: Grow to 10k and ultimately 20k produced heat pumps
1 Grow to 10k and ultimately 20k produced heat pumps Example Construction (2021) • Addressing the growing demand across Europe for energy-efficient heat generation • Construction of Hall 1 in Opočno (CZ) in 2021, ready for start of production in mid 2022 • In 2021, strengthened R&D team and enhanced
Slide 22: Launch redox flow battery
2 Launch redox flow battery Example • Enabling a high degree of energy self-supply for home owners - a rapidly growing market • High-performing, environmental friendly redox flow technology • Field tests installed and running, currently ramping up test capacities to around 30 batteries by end of Mar
Slide 23: Footprint optimisation radiators
4 Footprint optimisation radiators Example Radiator relocation from Tubbergen into Plattling and Legnica • Further consolidation of radiators production by relocating the volume from Tubbergen (NL) plant (c. 100 people affected) • Improving productivity in Plattling (D) and Legnica (PL), leading to
Slide 24: Increasing the Prüm (D) frame production by +40%
Increasing the Prüm (D) frame production by +40% Annual results 2021 | 1 March 2022 24
Slide 25: Doors: Operational excellence improving margin and growth
Doors: Operational excellence improving margin and growth Prüm, Capacity Beginning - Integration Ambition 2026 Garant, expansion ERP of Glass Mile- Invado fully started harmoni- Solutions stones integrated sation - Acquisition of GVG CAGR ~5% Net revenues: > CHF 725 M 502 503 509 552 487 EBITDA: Net
Slide 26: Doors: Efficiency projects on track
Doors: Efficiency projects on track Project pipeline Status Revenues EBITDA CHF M CHF M 2021 552 76 1 Werk der Zukunft: Prüm On track … 2 Werk der Zukunft: Garant On track … 3 Leverage glass competence On track … 4 Extend the wood product range On track … 5 Enhance market access On track … Overall m
Slide 27: Werke der Zukunft
1 Werke der Zukunft New frame production Prüm • On track to build "factories of the future" to scale up production output Automation Invado • Ambition to become Europe's cost leader based on highly automated processes (cost leverage) • Significantly increased capacity, Modern paint robot Garant e.g.
Slide 28: Leverage glass competence
3 Leverage glass competence Glass processing factory Deggendorf • Strengthened glass competence through the acquisition of GVG with its 15'000 m2 production plant • By the end of 2021, fully integrated in the Arbonia Doors Division • Vertical integration and strengthening of a key production and val
Slide 29: Enhancing our market access
5 Enhancing our market access New office in Western Switzerland • Improved our presence in Switzerland by opening a new office in Jongny (CH) and laying ground for a new logistics hub in Roggwil (CH) • Further strengthened our project business competence, building up skills in Germany • Increasing m
Slide 30: Agenda
Agenda 1. Group results 2021 2. Division highlights 3. Outlook & Guidance Questions Annual results 2021 | 1 March 2022 30
Slide 31: Underlying markets remain overall supportive
Underlying markets remain overall supportive Healthy construction "EU Green Deal" – Short-term environment Climate neutrality by 2050 challenges Mega Low interest rates & excess capital trends Improving the energy- Geopolitical efficiency through uncertainty components and systems Energy efficiency
Slide 32: Guidance
Guidance Organic growth 20221: > 5.0% EBITDA 20222: CHF 145 – 150 M Capex 2022: ~ 10% Mid-term guidance: Unchanged 1 Adjusted for currency and acquisition effects 2 EBITDA (excluding one-time effects) assuming stable exchange rates Annual results 2021 | 1 March 2022 32
Slide 33: Why Arbonia? Investment Highlights
Why Arbonia? Investment Highlights Market leadership in Central Europe for doors (wood and glass) and radiators as well as a strong challenger position in fast-growing, sustainable heating & ventilation systems as an integrated systems provider Strong balance sheet offers ample financial flexibility
Slide 34: Agenda
Agenda 1. Group results 2021 2. Division highlights 3. Outlook & Guidance Questions Annual results 2021 | 1 March 2022 34
Slide 35: Thank you
ARBONIA @ Thank you
Slide 36: Appendix
ARBONIA @ Appendix
Slide 37: Use case: translating Capex into profitability and cash
Use case: translating Capex into profitability and cash Capex programme Wood Solutions in CHF M (illustrative) > 16% 18 16 13.5% 12.2% 14 10.7% 10.9% 12 10 44 49 8 36 39 6 -1 -3 2 -1 4 -23 -34 -39 2 -48 0 -2 -4 -6 -8 -10 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 EBITDA 1 EBITDA Margin Capex
Slide 38: Mid-term guidance 2026
Mid-term guidance 2026 Group key performance indicators Financial Annual organic growth (CAGR 2021 – 2026) > 5% p.a. Group EBITDA (excluding M&A) > CHF 200 M Capex in % of revenues (maintenance and growth) 4-5% Cash Conversion Ratio (FCF in % of net profit) > 100% (as of 2024) Pay-out Annual dividen
Slide 39: We remain on track towards long-term goals
We remain on track towards long-term goals Summary of our pathway towards 2026 Lean corporate centre, allocating and managing capital, steering ESG and serving as centre of excellence for key functions, such as finance, accounting, IT, tax, legal, M&A HVAC Doors - Integrated system supplier for indo
Slide 40: Residential continues to see growth
Residential continues to see growth - and post-Covid stabilisation in non-residential expected Arbonia's approximate revenue split by segments New construction Health and Education 35% Single-family house Industrial Retail and Renovation Office 65% Multi-family house Hotels Residential Non-residenti
Slide 41: EU "Green Deal" Overview of subsidies
EU "Green Deal" Overview of subsidies (exemplary) Southern Europe, BeNeLux, Eastern Europe, e.g. e.g. e.g. Product Heat pumps Thermal storage Energy storage Residential ventilation Source: Bundesamt für Wirtschaft und Ausfuhrkontrolle (BAFA); energieheld.ch; P
Slide 42: EU "Green Deal" Overview of subsidy rates
EU "Green Deal" Overview of subsidy rates (exemplary) Germany 1 Switzerland 2 • Air to water heat pump: up to 45% • Air to water heat pump: CHF 1'600 – 9'000 • Residential ventilation: up to 25% in • Residential ventilation: max. 40% (national) renovation or min. CHF 2'400 (cantonal) • Thermal stora
Slide 43: Market environment Construction market 2022
Market environment Construction market 2022 Residential Non-residential Central Europe Central Europe Germany 2.5 % Germany 1.0% 1.0 % 0.5% Switzerland 0.0 % Switzerland 1.6% 0.5 % 1.7% Eastern Europe Eastern Europe Poland 4.5 % Poland 2.9% 3.6 % 4.8% Czech Republic 0.6 % Czech Republic 1.1% 2.1 % 1
Slide 44: Market environment Construction market 2023
Market environment Construction market 2023 Residential Non-residential Central Europe Central Europe -0.5% 1.5% Germany -0.5% Germany 0.5% -1.1% 2.1% Switzerland Switzerland 2.3% -0.6% Eastern Europe Eastern Europe 2.2% 4.0% Poland Poland 5.7% 4.0% 1.5% 4.7% Czech Republic 5.1% Czech Republic 2.6%
Slide 45: Arbonia shareholder structure
Arbonia shareholder structure As of 31 December 2021 Free float market capitalisation: CHF 995 M4 22% 3% 3% 70% 2% Free float1 Artemis Beteiligungen I AG Leo Looser UBS Fund Management2 Arbonia management3 Tradeable free float of ~70% 1 Every other shareholder with <3% of shares outstanding 2 UBS Fu
Slide 46: Arbonias transformation 2015-2022
Arbonias transformation 2015-2022 Development Key figures AFG in 2015 Arbonia in 20221 Acquisitions 2021 2018 2016 in CHF M 2015 2016 2017 2 2018 2 2019 2 2020 2 2021 2 Net revenue 941.4 995.3 1'245.6 1'374.0 1'057.8 1'038.4 1'186.2 EBITDA 3 56.7 66.0 101.3 115.1 108.0 114.5 134.3 EBIT 3 16.5 28.6 4
Slide 47: Thank you
ARBONIA @ Thank you