Ariston Holding Nv · MIL:ARIS
Ariston Holding Nv — Q1 2024 Earnings Presentation
23 slides from Ariston Holding Nv's earnings presentation, May 7, 2024
Slide 1: 2024 First Quarter Results
2024 FIRST QUARTER RESULTS 7TH MAY 2024
Slide 2: Agenda
AGENDA Highlights Financials 2024 outlook Appendix 2
Slide 3: As expected, market normalization post exceptional 2023 peak
AS EXPECTED, MARKET NORMALIZATION POST EXCEPTIONAL 2023 PEAK Strongly negative heating market across Europe after 2023 Net 653 €M exceptional peak coupled with uncertainty and/or regulation delay revenues -14.0% YoY in our key markets Operating leverage, negative country mix (Central EU slow down),
Slide 4: Products and solutions: new launches in Q1 2024
PRODUCTS AND SOLUTIONS: NEW LAUNCHES IN Q1 2024 Connectivity NET PRO FOR PROFESSIONALS: NEW FUNCTIONS POWERED BY ARTIFICIAL INTELLIGENCE • Remote assistance platform enriched with new predictive maintenance functionalities for HHP to extend products lifetime, improve customers’ comfort and optimize
Slide 5: Agenda
AGENDA Highlights Financials 2024 outlook Appendix 5
Slide 6: Market normalization post exceptional 2023 peak
MARKET NORMALIZATION POST EXCEPTIONAL 2023 PEAK NET REVENUES, €M -14.0% 760 Comments • Organic growth affected by significant 653 weakness of heating markets after -13.6% -0.4% exceptional 2023, especially renewables; water heating more 552 resilient 446 • Solid Service & Parts growth • Americas gro
Slide 7: European markets strongly down
EUROPEAN MARKETS STRONGLY DOWN NET REVENUES, €M Share of net revenues, % Europe Asia Pacific & MEA Americas 71% 18% 11% -18.2% 570 466 -4.5% +4.1% 122 116 68 71 2023 2024 2023 2024 2022 2023 Q1 Q1 Q1 Comments: Market strongly down, especially in top 3 Positive Indonesia and Vietnam Hot Water and Hea
Slide 8: EBIT Adj. back to historical seasonality
EBIT ADJ. BACK TO HISTORICAL SEASONALITY €M, % OF NET REVENUES Comments • Operating leverage enhanced by destocking, country mix, labour inflation • Pricing overall resilient despite difficult volumes EBIT Adjusted • Main adjustments on EBIT: +6 €M PPA impact from M&A -5.0 p.p. • Insurance reimburse
Slide 9: FCF positively impacted by inventories reduction
FCF POSITIVELY IMPACTED BY INVENTORIES REDUCTION €M Free Cash Flow Comments • Positive NWC performance (lower absorption vs. 2023) almost offsetting EBITDA decline (-40 €M) • Inventories reduced despite top-line slow-down, lowered payables given ongoing destocking Net Working Capital, % of net reven
Slide 10: Net debt: FCF seasonality and Egypt plant acquisition
NET DEBT: FCF SEASONALITY AND EGYPT PLANT ACQUISITION €M Non-cash items include: MtM, IFRS16 variation and exchange rate effect on the Net Financial Indebtedness -575 -51 -21 -12 13 -646 Net Cash/(Debt) Adjusted FCF Cash outflow Financial, FX Non-cash items Net Cash/(Debt) Adjusted 31 Dec 2023 for a
Slide 11: Sound balance sheet
SOUND BALANCE SHEET €M 4 Liquidity and Debt Comments end of year balance Liquidity 461 • Liquidity decreased due to FCF seasonality 358 and Egypt plant acquisition • +0.9 €bn committed unused credit lines to fuel organic & inorganic growth • Non-current bank debt duration at 4.2 years, thanks to mid
Slide 12: Agenda
AGENDA Highlights Financials 2024 outlook Appendix 12
Slide 13: 2024 Outlook
2024 OUTLOOK 2024: confirmed as transition year Mid-term: fundamentals remain strong, as reiterated by the EU Energy Performance of Buildings Directive Top-line • Weak market trends pointing FY organic growth toward the lower part of the -1% to -5% range • Russia discontinuity might count for additi
Slide 14: Agenda
AGENDA Highlights Financials 2024 outlook Appendix 14
Slide 15: Ariston Group product portfolio
ARISTON GROUP PRODUCT PORTFOLIO FY 2023 4 THERMAL COMFORT DIVISION HEATING (and AIR TREATMENT) HOT WATER 94% HEAT PUMPS HYBRID SYSTEMS BOILERS 3.1€BN REVENUES FY 2023 ELECTRIC HEAT PUMPS GAS SOLAR STORAGE & INSTANT STORAGE & INSTANT DIRECT SERVICES & PARTS 3% COMPONENTS DIVISION 3% BURNERS DIVISION
Slide 16: Net revenues by division
NET REVENUES BY DIVISION €M Share of net revenues, % Thermal Comfort Burners Components 94% 3% 3% -14.3% 714 611 -3.6% -14.1% 22 22 24 20 2023 2024 2023 2024 2023 2024 Q1 Q1 Q1 Comments: Strongly weak heating markets in Europe Market slowdown in Germany and Spain Weak demand of professional segment,
Slide 17: Historical seasonality
HISTORICAL SEASONALITY Net revenues EBIT Adjusted Cumulated FCF Quarterly weight on FY Quarterly weight on FY Quarterly trend Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1H 9M FY Average 2017-23 Average 2017-23 Average 2017-23 Demand for heating-related products Operating leverage gives margins an The last quarter o
Slide 18: Partial reclassified Q1 2024 income statement
PARTIAL RECLASSIFIED Q1 2024 INCOME STATEMENT €M 4 Income statement Q1 2024 Q1 2023 % change Comments Net revenue 653.2 759.7 -14.0% • Operating leverage enhanced by EBITDA 56.8 97.3 -41.5% destocking, country mix, labour inflation % margin 8.7% 12.8% • Pricing overall resilient despite difficult EB
Slide 19: Reclassified Q1 2024 cash flow statement
RECLASSIFIED Q1 2024 CASH FLOW STATEMENT €M Q1 2024 Q1 2023 Change Comments EBITDA 56.8 97.3 (40.4) • Positive NWC performance (lower absorption vs. 2023) almost offsetting Tax paid (13.5) (10.9) (2.6) EBITDA decline (-40 €M) • Inventories reduced despite top-line slow- Provisions and other changes
Slide 20: Net financial indebtedness
NET FINANCIAL INDEBTEDNESS €M 4 31/03/2024 31/12/2023 31/03/2023 Comments Liquidity 357.8 461.3 363.2 • Liquidity decreased due to FCF seasonality and Egypt plant acquisition • +0.9 €bn committed unused credit lines minus: Current financial indebtedness (103.3) (122.5) (88.6) to fuel organic & inorg
Slide 21: Historical quarterly growth by region
HISTORICAL QUARTERLY GROWTH BY REGION NET REVENUES, YOY, % OF €M 2021 2022 2023 2024 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Europe +6.6% +18.1% +17.5% +18.2% +15.3% +14.1% +16.2% +59.6% +50.8% +46.7% +38.5% +48.5% -18.2% Asia Pacific & +5.6% +20.3% +54.0% +52.3% +48.5% +18.0% +40.6% -1.4% +3.6% -1.7
Slide 22: Disclaimer
DISCLAIMER This document contains forward-looking statements that relate to future events and future operating, economic and financial results of Ariston Group. By their nature, forward-looking statements involve risk and uncertainty because they depend on the occurrence of future events and circums
Slide 23: Thank you
THANK YOU Investor Relations contacts Albert William Pozzi, Martino Bartolucci +39 02 8567 2317 investor.relations@ariston.com We kindly ask you to refrain from printing in order to minimize our impact on the environment. Thank you for your understanding and dedication to our sustainable future.