Flugger Group A/s Class B · OMXCOP:FLUG_B
Flugger Group A/s Class B — Q3 2020/21 Earnings Presentation
19 slides from Flugger Group A/s Class B's earnings presentation, Mar 29, 2021
Slide 1: IR presentation Q3
Financials IR presentation Q3 March 2021 Page 1 I IR presentation
Slide 2: Vice chairman becomes CEO
Vice chairman becomes CEO switch roles Sune Schnack New vice chairman April 2021 New CEO April 2021 CFO CDO Jimmi Mortensen Sune Schnack Poul Erik Stockfleth Ulf Schnack CEO Vice chairman Finance, IT, Legal and HR DNA, Flügger House Page 2 I IR presentation
Slide 3: Flügger is a leading Nordic player within decorative paint products
Flügger is a leading Nordic player within decorative paint products for both professionals and consumers. In-house knowledge controlling entire value chain Leading position supported by strong fundamentals and diversified revenue stream Product development Production and logistics Segment 1 Own stor
Slide 4: Leading position in markets supported by strong fundamentals
Leading position in markets supported by strong fundamentals Overview of market dynamics Flügger Paint Market Key stats Real GDP development (%)* position (#) consumption*** 6.5% 59.8 6.0% 0.9% 1.6% 2.3% 3.2% 2.0% 2.4% 2.4% [1] 14 -6.5% 10.1% 51.6 4.4% 2.4% 2.4% 2.2% 5.2% 1.1% 2.7% 1.2% [2] 13 -6.8%
Slide 5: The update of the strategy towards 2023/24 aims at +200 mDKK EBIT
The update of the strategy towards 2023/24 aims at +200 mDKK EBIT by intensifying current strategic initiatives Overview of strategic focus towards 2023/24 Targets • Optimization of pricing across product and segments as 1 Value based pricing well as focusing on margin enhancing initiatives. Revenue
Slide 6: Flügger raises guidance and expects historic top result
Flügger raises guidance and expects historic top result. Business acquisitions as catalyst for future growth Guidance Annual Adjusted Guidance Ambition – 23/24 Report – 20/21 August 2020 October 2020 November 2020 February 2021 2.050- 2.100- ~2 +2 +2 ~2.5 Revenue 2.080 2.150 bnDKK bnDKK bnDKK bnDKK
Slide 7: Acquisition: investing in Eskaro Group gaining 70% of the shares
Acquisition: Flügger group A/S entered into an agreement to invest in Eskaro group gaining 70% of the shares in Eskaro Group AB Acquisition in Eskaro Group Consolidated view after acquisition of Eskaro ▪ Shares: 70% of shares/votes in Eskaro Group AB Forecast 20/21 incl. P&L (mDKK) 20/21 Eskaro Eska
Slide 8: Q3 20/21 Highlights
Q3 20/21 Highlights Revenue (mDKK) EBIT (mDKK) Own stores (#) -100.9% 13% -11% 384 434 0 259 230 Q3 19/20 Q3 20/21 -47 Q3 19/20 Q3 20/21 Q3 19/20 Q3 20/21 Gross Margin (%) EBIT-margin (%) Franchise stores (#) +6.8pp +12.3pp -2% 55.0 0.1 146 143 48.2 Q3 19/20 Q3 20/21 -12.2 Q3 19/20 Q3 20/21 Q3 19/20
Slide 9: YTD 20/21 Highlights
YTD 20/21 Highlights Revenue (mDKK) EBIT (mDKK) Own stores (#) 17% 245% -11% 1,612 200 259 230 1,373 57 YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 19/20 20/21 19/20 20/21 19/20 20/21 Gross Margin (%) EBIT-margin (%) Franchise stores (#) +2.8pp +8.2pp -2% 53.6 56.4 12.4 146 143 4.2 YTD Q3 YTD Q3 YTD Q
Slide 10: Q3 20/21 Highlights
Q3 20/21 Highlights Flügger Group Results Momentum continued with strong sales in Q3 mDKK Q3 20/21 Q3 19/20 Change • COVID-19 driving up organic sales growth primarily from consumers Net sales 434 384 13% in Denmark and Sweden Organic growth 11% 1% 10pp • Currency headwind in Poland and Norway M&A 3
Slide 11: YTD Jan 20/21 Highlights
YTD Jan 20/21 Highlights Flügger Group Results YTD Q3 YTD Q3 Strong sales performance in Q1-Q3 mDKK 20/21 19/20 Change • COVID-19 driving up organic sales growth primarily from consumers Net sales 1.612 1.373 17% in Denmark and Sweden Organic growth 11% -1% 12pp M&A 8% 2% 7pp • Especially the DIY se
Slide 12: Net sales increase driven by acquisition of Unicell
Net sales increase driven by acquisition of Unicell. Positive impact from COVID-19. Currency headwind in Poland and Norway Group sales development Net Sales Net Sales LTM Net sales mDKK mDKK mDKK 1.612 700 2.400 146 2.100 1.373 111 600 18 1.800 500 1.500 400 1.200 300 900 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 13: EBIT tripled compared to LY, driven by Unicell and sales
EBIT tripled compared to LY, driven by Unicell, increased sales and full impact from the efficiency program TITAN Group EBIT development EBIT EBIT mDKK mDKK 150 250 23 200 2 4 200 100 120 150 50 100 105 50 0 0 -50 -50 -100 -100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 YTD
Slide 14: Segment 1 Own Stores & Resellers: Q3 sales growth of +11%
Segment 1 Own Stores & Resellers: Q3 sales growth of +11% driven by increased activities in the consumer segment Sales development per geographical segment • Strong sales in Denmark driven Organic Reported by consumers in particular, due Revenue (mDKK) Q3 19/20 Currency M&A Q3 20/21 to the extraordi
Slide 15: Segment 2 DIY: Q3 sales driven by acquisition of Unicell International
Segment 2 DIY: Q3 sales driven by acquisition of Unicell International Sales development per geographical segment • The negative growth in the Nordic was driven by the Organic Reported Revenue (mDKK) Q3 19/20 Currency M&A Q3 20/21 temporary closure of retail Growth Growth stores in Denmark related U
Slide 16: Segment 1 Own Stores & Resellers: YTD sales growth of +9%
Segment 1 Own Stores & Resellers: YTD sales growth of +9% primarily driven by positive impact from COVID-19 in Denmark and Sweden Sales development per geographical segment • Solid sales in both Denmark and Sweden driven by COVID-19 YTD Q3 Organic YTD Q3 Reported Revenue (mDKK) Currency M&A 19/20 Gr
Slide 17: Segment 2 DIY: YTD primarily driven by acquisition of Unicell
Segment 2 DIY: YTD primarily driven by acquisition of Unicell Sales development per geographical segment • Solid sales in Unicell Nordic YTD Q3 Organic YTD Q3 Reported driven by increased Revenue (mDKK) Currency M&A 19/20 Growth 20/21 Growth consumer focus on DIY due to COVID-19 Unicell Nordic 150 1
Slide 18: Earnings increase with stock price keeping the P/E stable around 10
Earnings increase with stock price keeping the P/E stable around 10 Development in P/E and stock price P/E Stock price incl. reinvested dividends DKK DKK 100 900 800 80 700 600 60 500 400 40 300 20 200 100 0 0 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 Q1 Q2 Q3 11/12 12/13 13/14 14/
Slide 19: Stock prices
Stock prices Facts about Flügger Group A/S (FLUG B) Development - Flügger & Competitors Tikkurila Flügger PPG Akzo Nobel Source:Mar 25 2021 - https://www.morningstar.com/stocks/xcse/flug%20b/quote Page 19 I IR presentation