Fluidra, S.a. · BME:FDR
Fluidra — Debt Investor Presentation (January 2022)
34 slides from Fluidra's debt investor presentation, Jan 12, 2022
Slide 1: Presentation to Lenders
Presentation to Lenders 12th January 2022 1
Slide 2: Disclaimer
DISCLAIMER This document is for information purposes 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 Re
Slide 3: Today's Presenters
TODAY’S PRESENTERS Bruce Brooks Xavier Tintoré CEO CFO • Over 30 years of experience in global • Over 25 years experience in corporate consumer and industrial products finance in multinationals and public industries companies • Joined Zodiac as CEO in 2011 and became CEO of Fluidra at time of • Join
Slide 4: Agenda
AGENDA 1 Overview of Proposed Transaction 2 Company Overview 3 Key Credit Highlights 4 Strategic & Financial Objectives 5 Appendix – Current Trading 4
Slide 5: 1. Overview of Proposed Transaction
1. Overview of Proposed Transaction 5
Slide 6: Executive Summary
EXECUTIVE SUMMARY • With global headquarters in Barcelona, Spain, Fluidra is the global leader in pool equipment and wellness solutions • After a solid 2020 with 9% sales growth and 190bps EBITDA margin expansion, Fluidra has continued its strong performance in 2021 As of 3Q’21, sales up 49.1% and
Slide 7: Transaction Overview
TRANSACTION OVERVIEW Sources & Uses Sources in €m Uses in €m New USD TLB 650 Repayment existing TLB debt 705 New EUR TLB 450 Repayment existing ABL & RCF 167 Repayment other debt 79 Currency mix in line with EBITDA breakdown PF OID & Other fees 11 for new acquisitions, providing natural FX hedge Cas
Slide 8: Indicative Term Sheet
INDICATIVE TERM SHEET Instrument: Term Loan B Borrower: Zodiac Pool Solutions LLC Fluidra Finco SLU Amount: $750m €450m Purpose: Refinance existing indebtedness and pay transaction fees & expenses Currency: USD EUR Tenor: 7 years Amortisation: 0.25% per quarter Indicative Pricing: [●] [●] Floor (%):
Slide 9: Transaction Timetable
TRANSACTION TIMETABLE January 2022 M T W T F S S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Process Date UK / US / Spain public holidays Date Key Event Monday, 10th January Launch of Term Loan B Refinancing Wednesday, 12th January Lender Presentation Frid
Slide 10: 2. Company Overview
2. Company Overview FLUIDRA
Slide 11: Fluidra at a Glance
FLUIDRA AT A GLANCE Overview Highly Profitable and Cash Generating Business • Global leader in pool equipment and wellness solutions with strong position in all (in €m) relevant markets • Global headquarters in Barcelona (Spain), and North American headquarters in 17% SALES CAGR San Diego (Californi
Slide 12: 3. Key Credit Highlights
3. Key Credit Highlights FLUIDRA
Slide 13: Global Leaders in a Resilient Growth Industry
GLOBAL LEADERS IN A RESILIENT GROWTH INDUSTRY 1 Attractive industry with sustainable growth driven by aftermarket, and low price elasticity • Large installed base drives annuity-like after market • Positive industry dynamics: new pool construction feeds ever growing installed base • Step change in c
Slide 14: Sustainable Long Term Growth Supported by Increasing Installed Base
1 SUSTAINABLE LONG TERM GROWTH SUPPORTED BY INCREASING INSTALLED BASE Resiliency driven by large installed base Acceleration in the evolution of the pool base Residential inground pools in millions Split by market type 2020 New Build @ 20 '19 Volumes 21% 15 New Build above '19 10 Volumes 4% 5 Afterm
Slide 15: Total Addressable Market Well-Diversified by Segment
1 TOTAL ADDRESSABLE MARKET WELL-DIVERSIFIED BY SEGMENT Maintenance New Build Consumables Re-model & Upgrade €2.9bn €2.8bn €4.2bn €1.6bn c.94% Residential / c.74% Residential / c.89% Residential / c.91% Residential / c.6% Commercial c.26% Commercial c.11% Commercial c.9% Commercial Increasing Fluidra
Slide 16: Step Change in Consumer Trends Accelerating Growth Drivers
1 STEP CHANGE IN CONSUMER TRENDS ACCELERATING GROWTH DRIVERS Market Dynamics & Drivers Market Step Change Consumer trends Large installed pool base with accelerating growth Flight to suburbs globally and in the USA to the sunbelt Average selling price continues to grow Increasing tendency towards ou
Slide 17: Large Global Market – Highly Fragmented & Led by Fluidra
2 LARGE GLOBAL MARKET – HIGHLY FRAGMENTED & LED BY FLUIDRA NA & Europe make up for the bulk of the large Global market Fluidra is the largest and more diversified player globally Split by market 2020 Rest of the World 21% Global Pool Market NA 49% €11.5bn Europe 30% Fluidra is the global leader in a
Slide 18: B2B Model with Adapted Go to Market Across Globe
2 B2B MODEL WITH ADAPTED GO TO MARKET ACROSS GLOBE Fluidra operates across the value chain with Significance of Pool Pro an adapted regional model • Critical route to market > 70% of channel share Fluidra presence • Pool Pro is key decision-maker for product North America: selection and service deli
Slide 19: Leadership in Innovation and Connectivity
2 LEADERSHIP IN INNOVATION AND CONNECTIVITY • R&D capability with >200 engineers and >1,400 IoT benefits the entire pool ecosystem patents 1 • Peace of mind • 3x more patents than the next industry player End-User • Quality of service • Cost efficiency 2 • Efficiency • Robust product roadmap based o
Slide 20: Sustainable Pool Systems Drive Replacement Cycle
2 SUSTAINABLE POOL SYSTEMS DRIVE REPLACEMENT CYCLE Automatically optimizes for peak Uses 70% efficiency Variable-Speed less energy iAquaLink Pumps Reduces chlorine use by Uses less than up to 50% Salt + Mineral LED Lighting 50W of power Sanitization Reduces 50% increase in evaporation by Jandy hydra
Slide 21: Leading ESG Credentials
2 LEADING ESG CREDENTIALS 2020 score: 69/100 2021 score: 24.6/100 (medium risk) 2021 score: 72/100 (vs. 62/100 in 2020) E-Profile (30%) (69/100) 2020 score: 31.7/100 (high risk) Environmental 2021 (77/100) vs. (58/100) in 2020 S-Profile (30%) (67/100) 2019 score: 40.3/100 (severe risk) Socia
Slide 22: A Robust Sustainability Strategy with Clear Commitments
2 A ROBUST SUSTAINABILITY STRATEGY WITH CLEAR COMMITMENTS Mission: TO CREATE THE PERFECT POOL & WELLNESS EXPERIENCE RESPONSIBLY Vision: To enhance lives through innovative and sustainable solutions that transform the way people enjoy water for recreation and health Environment Social Governance Carb
Slide 23: M&A Track Record: Disciplined and Value Accretive Process
2 M&A TRACK RECORD: DISCIPLINED AND VALUE ACCRETIVE PROCESS Clear acquisition parameters Systematic M&A strategy in a largely fragmented market Opportunity for product range & Culturally aligned • Objective to generate additional annual sales growth of customer expansion c. 1-2% per annum • Large op
Slide 24: World Class and Cohesive Team of Industry and Functional Experts
2 WORLD CLASS AND COHESIVE TEAM OF INDUSTRY AND FUNCTIONAL EXPERTS Over 30 years of experience in global consumer and industrial Over 25 years of experience in the sector products industries Fluidra’s CEO since 2006 and Executive Chairman since 2016 Previously spent over 20 years at Stanley Black &
Slide 25: Proven Track Record of Growth and Margin Expansion
3 PROVEN TRACK RECORD OF GROWTH AND MARGIN EXPANSION - SET TO CONTINUE A Story of Growth, Accelerated in 2021 Proven Margin Expansion (€bn Sales) (Adjusted EBITDA % Sales) 2.5 27% 25.0% - >€2 bn 25.5% 2.0 25% >600 1.5 23% 1.5 1.3 1.4 bps 21% 1.0 19% 0.5 17% 0.0 15% (1) 2018 2019 2020 2021 E 2018 201
Slide 26: High Quality Cash Returns on Investment – Set to Improve Further
3 HIGH QUALITY CASH RETURNS ON INVESTMENT – SET TO IMPROVE FURTHER Very strong operating, cash conversion and returns dynamics … • Delivering Growth & Quality of Avg. FCF conversion1 ROCE2 Returns - Fluidra leads a fast-growing industry 23% >90% 77% - And generates high-quality, 18% repeatable retur
Slide 27: 4. Strategic & Financial Objectives
4. Strategic & Financial Objectives 27
Slide 28: Medium-Term Strategic & Financial Objectives Summary
MEDIUM-TERM STRATEGIC & FINANCIAL OBJECTIVES SUMMARY 1: As reported growth of 3.1% increases to 5.1% on constant currency and perimeter, including Aquatron's remedy implementation 2: At constant FX 28
Slide 29: 5. Appendix - Current Trading
5. Appendix - Current Trading 29
Slide 30: Current Trading Update & 2021 Outlook
CURRENT TRADING UPDATE & 2021 OUTLOOK Evol. Const. FX & €M YTD 3Q21 21/20 Perimeter Key Commentary Sales 1,703.8 49.1% 41.4% EBITDA 450.5 81.6% 86.2% • Strong growth across all regions YTD, confirming step change in the industry after EBITDA margin (%) 26.4% 470 bps - 2020 growth EBITA 399.9 97.9% 1
Slide 31: Current Trading Update
CURRENT TRADING UPDATE Key Commentary • YTD sales growth largely driven by excellent sell-through rate of c.90% in North America • Acquisitions represent c.€98m of North American sales growth • YTD results in Europe benefit from a low base of comparison because of the full lock down in Q2 2020; howe
Slide 32: Current Trading Update (cont'd)
CURRENT TRADING UPDATE (cont’d) Key Commentary • Excellent Operating Cash Flow performance in Q3, mainly driven by operating performance. • Investment Cash Flow is €419M higher than last year due to the acquisitions of S.R. Smith, CMP and BuiltRight. • Purchase of Treasury Stock to fund our Long Ter
Slide 33: LTM EBITDA Reconciliation
LTM EBITDA RECONCILIATION €M Sept 2021 LTM Net Profit attributed to equity holders of the parent company 240.8 Income tax expense 75.2 Finance income (4.2) Finance costs 42.2 Exchange gains / (losses) 3.7 Depreciation & Amortization expense & impairment 120.7 Minority interest 3.8 Reported EBITDA 48
Slide 34: Thank You for Your Attention!
THANK YOU FOR YOUR ATTENTION! 34