Dometic Group Ab · OMXSTO:DOM
Dometic Group Ab — Q1 2020 Earnings Presentation
26 slides from Dometic Group Ab's earnings presentation, Apr 24, 2020
Slide 1: Interim Presentation Q1 2020
INTERIM PRESENTATION Q1 2020 April 24, 2020
Slide 2: Juan Vargues, President & CEO
JUAN VARGUES, PRESIDENT & CEO
Slide 3: Q1 2020 Highlights
Q1 2020 HIGHLIGHTS Market development ▪ January and February in line with Dometic expectations, but March was negatively impacted by market close down. ▪ Challenging trading environment in all main markets due to the spread of the coronavirus (Covid-19). ▪ Covid-19 impact on net sales of SEK -400 m
Slide 4: Q1 2020 Financial Summary
Q1 2020 FINANCIAL SUMMARY Net sales of SEK 4,199 m, -10% total growth NET SALES AND EBIT BEFORE I.A.C. ▪ -14% organic SEKm SEKm ▪ +4% FX Net sales ▪ 0% M&A 5,000 -10% 1,250 ▪ Total impact relating to Covid-19 of around SEK 400 m 4,500 4,000 1,000 EBIT before i.a.c. of SEK 421 m, -32% 3,500 ▪ EBIT ma
Slide 5: Application Areas
APPLICATION AREAS FOOD & BEVERAGE -11% CLIMATE 0% SALES SPLIT, (-15% CC) (-6% CC) APPLICATION AREA* 6,000 8,200 8,000 5,500 7,800 5,000 7,600 7,400 4,500 7,200 4,000 7,000 Mar Jun Sep Dec Mar Jun Sep Dec Mar Mar Jun Sep Dec Mar Jun Sep Dec Mar 2018 2019 2018 2019 POWER & CONTROL +0% OTHER APPLICATIO
Slide 6: Sales Growth
SALES GROWTH • Average quarterly organic growth Total growth SEKm of -2.8% Q1 18 – Q1 20 40% 20,000 36% 19,000 32% 18,000 28% 17,000 24% 16,000 20% 16% 15,000 12% 14,000 8% 13,000 4% 12,000 0% 11,000 -4% 10,000 -8% -12% 9,000 -16% 8,000 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019
Slide 7: EBIT and EBIT Margin before i.a.c
EBIT AND EBIT MARGIN BEFORE I.A.C • 2% point EBIT margin decline EBIT RUN RATE 12.4% (14.4%) rolling 12 months SEKm EBIT-margin 1,200 18% 1,050 17% 900 16% 750 15% 600 14% 450 13% 300 12% 150 11% 0 10% Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 EBIT EBIT margin, rolling
Slide 8: Product Leadership
PRODUCT LEADERSHIP Dometic PERFECTVIEW CAM1000 ▪ Intelligent blind spot camera system for trucks with object detection only detecting moving objects. ▪ Installation limited to a minimum ▪ System works from 0 to 30 km/h with GPS based accuracy ▪ Night mode with LED illumination
Slide 9: Americas
AMERICAS Net sales of SEK 2,018 m, -16% organic NET SALES AND EBIT MARGIN BEFORE I.A.C. ▪ Food & Beverage, Climate and Power & 2,800 21.0% Control reported negative growth, mainly due 2,400 18.0% to weak performance in March as a result of the spread of the Covid-19. OEM, 67% 2,000 15.0% ▪ Strong gr
Slide 10: EMEA
EMEA Net sales of SEK 1,812 m, -11% organic NET SALES AND EBIT MARGIN BEFORE I.A.C. ▪ Food & Beverage and Climate reported negative 2,400 24.0% growth, mainly due to weak performance in 2,100 21.0% March as a result of the spread of the Covid-19. 1,800 18.0% ▪ Power & Control reported good growth. O
Slide 11: APAC
APAC Net sales of SEK 369 m, -14% organic NET SALES AND EBIT MARGIN BEFORE I.A.C. ▪ Improving sales trend in Pacific in January and 600 36.0% February but deterioration in March 500 30.0% ▪ Weak sales trend in Asia during first two months but improving in March OEM, 49% 400 24.0% AM, 51% ▪ Food & Be
Slide 12: Restructuring Program
RESTRUCTURING PROGRAM Locations ▪ 4 locations affected in the quarter ▪ 14 locations affected in total so far Employees ▪ Approximately 300 employees affected in the quarter ▪ Approximately 500 employees affected in total so far Costs ▪ SEK 23 m in the quarter ▪ SEK 139 m so far
Slide 13: Q1 Strategy Execution
Q1 STRATEGY EXECUTION Profitable expansion 1 ▪ Increased focus on Aftermarket growth. ▪ Ongoing development in new new vertical end-markets. ▪ Launched new e-commerce webshops in Americas and EMEA. 2 Product leadership ▪ Improvement of Innovation Index. ▪ Strong pipeline for product launches in 2020
Slide 14: Strategy Effects from Execution: Corona (Covid-19)
Q4 STRATEGY EFFECTS FROMEXECUTION CORONA (COVID-19) Bild: Johan Text: Juan What we know NOT UPDATED ▪ Severe effects on global trading environment. ‒ Net sales effects of SEK -400 m ‒ EBIT effects of -120 m ▪ Dometic estimates that sales and profitability in the second quarter will be materially aff
Slide 15: Stefan Fristedt, CFO
STEFAN FRISTEDT, CFO Mobile living made easy. “> DOMETIC
Slide 16: Net Sales Bridge Q1
DOMETIC GROUP NET SALES BRIDGE Q1 SEKm TRANSLATION FX DETAILS Share of Net Sales impact -10% USD 135 62% 4,650 EUR 52 24% AUD -7 -3% 4,199 HKD 4 2% GBP 11 5% 4% -14% 0% CNY 1 1% Other 21 10% TOTAL 217 Q1 2019 Translation FX Organic growth M&A Q1 2020
Slide 17: Capex & Product Development
CAPEX & PRODUCT DEVELOPMENT (SEKm, % OF NET SALES) CAPEX 140 7% 120 6% 100 1.8% 1.8% 5% 80 1,8% 4% ▪ Q1 2020 CAPEX: 60 127 117 114 3% 1.8% (1.8%) of net sales. 100 90 40 78 86 74 2% 71 20 1% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2018 2018 2018 2019 2019 2019 2019 2020 PD 120 6% 2,1% 100 2.3% 5% 1,8%
Slide 18: Working Capital Development
WORKING CAPITAL DEVELOPMENT SEKm 1,000 23.3% 23.9% 25% 21.6 % 800 ▪ Average CWC/LTM net sales: 600 20% 21.6 % 400 716 491 587 200 355 15% 253 0 -149 -200 -443 10% -556 -400 -825 -600 5% -800 -1,000 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2018 2018 2018 2019 2019 2019 2019 2020 Average core WC / LTM sales
Slide 19: Working Capital
WORKING CAPITAL DAYS, CONSTANT CURRENCY DPO DSO 51 48 60 45 60 43 43 47 50 50 40 40 30 30 20 20 10 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2019 2020 2018 2019 2020 DPO month DPO LTM DSO month DSO LTM DIO 160 139 140 120 120 109 100 80 60 40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2
Slide 20: Cash Flow
CASH FLOW SEKm 1,600 250% 1,400 200% 1,200 150% 373 1,000 100% 29% 10% 800 50% -4% 1 417 1 301 600 0% 943 859 918 400 844 -50% 200 -100% 181 84 0 -27 -150% -200 -200% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2018 2018 2018 2019 2019 2019 2019 2020 Operating cash flow Cash conversion
Slide 21: Net Debt Leverage and Net Debt Details
NET DEBT LEVERAGE AND NET DEBT DETAILS Amended financing agreement NET DEBT 4 Amended financing agreement 3.34 3.34 creates necessary flexibility and 3.00 2.95 2.85 2.82 3 2.83 2.68 2.40 covenant headroom for the coming 2 four quarters 1 0 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2
Slide 22: Debt Maturity Profile March 2020
DEBT MATURITY PROFILE MARCH 2020 3,500 3,322 3,363* 3,322 USD Loans 3,000 EUR Loans 2,500 2,120 EUR Bonds 2,000 SEK Bond 1,500 1 000 1,000 500 0 0 0 Maturity 2020 Maturity 2021 Maturity 2022 Maturity 2023 Maturity 2024 Maturity 2025 Maturity 2026 Maturity Maturity Maturity Maturity Maturity Maturity
Slide 23: Q1 2020 Summary
Q1 2020 SUMMARY Business highlights ▪ Challenging situation in main markets due to the spread of the Corona virus. ▪ Trade tariffs creating additional costs. ▪ Rapid capacity adaptation to market demand. ▪ Strong operational cash flow generation. Strategy highlights ▪ We are confident about the long
Slide 24: Q&A
Q&A Mobile living made easy. “> DOMETIC
Slide 25: Disclaimer
DISCLAIMER SOME STATEMENTS HEREIN ARE FORWARD-LOOKING AND THE ACTUAL OUTCOME COULD BE MATERIALLY DIFFERENT. IN ADDITION TO THE FACTORS EXPLICITLY COMMENTED UPON, THE ACTUAL OUTCOME COULD BE MATERIALLY AFFECTED BY OTHER FACTORS, (A) CHANGES IN ECONOMIC, MARKET AND COMPETITIVE CONDITIONS, (B) SUCCESS
Slide 26: Restatement of Application Areas
RESTATEMENT OF APPLICATION AREAS Q1 Q2 Q3 Q4 FY SEK m 2019 2019 2019 2019 2019 Net sales, external Americas⁽¹⁾ Food & Beverage 449 477 410 346 1,681 Climate 839 1,012 1,006 774 3,632 Power & Control 656 653 596 558 2,464 Other applications 297 460 459 331 1,548 Americas net sales, external 2,241 2,6